Opinion
on the Financial Statements
We
have audited the accompanying statement of assets and liabilities, including the schedule of investments, of GAMCO Global Gold,
Natural Resources & Income Trust (the “Fund”) as of December 31, 2020, the related statement of operations for
the year ended December 31, 2020, the statement of changes in net assets attributable to common shareholders for each of the two
years in the period ended December 31, 2020, including the related notes, and the financial highlights for each of the five years
in the period ended December 31, 2020 (collectively referred to as the “financial statements”). In our opinion, the
financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2020, the
results of its operations for the year then ended, the changes in its net assets attributable to common shareholders for each
of the two years in the period ended December 31, 2020 and the financial highlights for each of the five years in the period ended
December 31, 2020 in conformity with accounting principles generally accepted in the United States of America.
Basis
for Opinion
These
financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the
Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We
conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement,
whether due to error or fraud.
Our
audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
Our procedures included confirmation of securities owned as of December 31, 2020 by correspondence with the custodian and brokers;
when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable
basis for our opinion.
/s/PricewaterhouseCoopers
LLP
New York, New York
February 26, 2021
We
have served as the auditor of one or more investment companies in the Gabelli/GAMCO Fund Complex since 1986.
GAMCO
Global Gold, Natural Resources & Income Trust
Additional Fund Information (Unaudited)
Summary
of Updated Information Regarding the Fund.
The
following information in this annual report is a summary of certain information about the Fund and changes since the Fund’s
last annual report to shareholders as of December 31, 2019, for the fiscal year ended December 31, 2020. This information may
not reflect all of the changes that have occurred since you invested in the Fund.
INVESTMENT
OBJECTIVE AND POLICIES.
The
Fund’s primary investment objective is to provide a high level of current income. The Fund’s secondary investment
objective is to seek capital appreciation consistent with the Fund’s strategy and its primary objective. Under normal market
conditions, the Fund will attempt to achieve its objectives by investing at least 80% of its assets in equity securities of companies
principally engaged in the gold industry and the natural resources industries. The Fund will invest at least 25% of its assets
in the equity securities of companies principally engaged in the gold industry, which includes companies principally engaged in
the exploration, mining, fabrication, processing, distribution or trading of gold or the financing, managing, controlling or operating
of companies engaged in “gold-related” activities. In addition, the Fund will invest at least 25% of its assets in
the equity securities of companies principally engaged in the group of industries that constitute the natural resources industries,
which include companies principally engaged in the exploration, production or distribution of natural resources, such as gas,
oil, paper, food and agriculture, forestry products, metals (other than gold) and minerals as well as related transportation companies
and equipment manufacturers. The Fund may invest in the securities of companies located anywhere in the world. Under normal market
conditions, the Fund will invest at least 40% of its assets in the securities of issuers located in at least three countries other
than the United States. For this purpose an issuer will be treated as located outside the United States if it is either organized
or headquartered outside the United States and has a substantial portion of its operations or sales outside the United States.
Equity securities may include common stocks, preferred stocks, convertible securities, warrants, depository receipts and equity
interests in trusts and other entities. Other Fund investments may include investment companies, securities of issuers subject
to reorganization or other risk arbitrage investments, certain derivative instruments, debt (including obligations of the United
States government) and money market instruments. The Fund may invest up to 10% of its total assets in securities rated below investment
grade by recognized statistical rating agencies or unrated securities of comparable quality, including securities of issuers in
default, which are likely to have the lowest rating. These securities, which may be preferred shares or debt, are predominantly
speculative and involve major risk exposure to adverse conditions. Securities that are rated lower than “BBB” by S&P,
or lower than “Baa” by Moody’s or unrated securities considered by the Investment Adviser to be of comparable
quality, are commonly referred to as “junk bonds” or “high yield” securities.
As
part of its investment strategy, the Fund intends to generate gains through an option strategy of writing (selling) covered call
options on equity securities in its portfolio. When the Fund sells a covered call option, it generates gains in the form of the
premium paid by the buyer of the call option, but the Fund forgoes the opportunity to participate in any increase in the value
of the underlying equity security above the exercise price of the option.
Investment
Methodology of the Fund
In
selecting securities for the Fund, the Investment Adviser normally considers the following factors, among others:.
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the
industry of the issuer of a security;
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the
potential of the Fund to earn gains from writing covered call options on such securities;
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the
interest or dividend income generated by the securities;
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the
potential for capital appreciation of the securities;
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the
prices of the securities relative to comparable securities;
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whether
the securities are entitled to the benefits of call protection or other protective covenants;
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the
existence of any anti-dilution protections or guarantees of the security; and
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the
number and size of investments of the portfolio as to issuers.
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The
Investment Adviser’s investment philosophy with respect to selecting investments in the gold industry and the natural resources
industries is to emphasize quality and value, as determined by such factors as asset quality, balance sheet leverage, management
ability, reserve life, cash flow, and commodity hedging exposure. In addition, in making stock selections, the Investment Adviser
looks for securities that it believes may have a superior yield as well as capital gains potential.
Certain
Investment Practices.
Gold
Industry Concentration. Under normal market conditions the Fund will invest at least 25% of its assets in the equity securities
of Gold Companies. “Gold Companies” are those Companies that are principally engaged in the gold industry, which includes
companies
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Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
principally
engaged in the exploration, mining, fabrication, processing, distribution or trading of gold, or the financing, managing, controlling
or operating of companies engaged in “gold-related” activities. The Fund’s investments in Gold Companies will
generally be in the common equity of Gold Companies, but the Fund may also invest in other securities of Gold Companies, such
as preferred stocks, securities convertible into common stocks, and securities such as rights and warrants that have common stock
characteristics.
In
selecting investments in Gold Companies for the Fund, the Investment Adviser will focus on stocks that are undervalued, but which
appear to have favorable prospects for growth. Factors considered in this determination will include capitalization per ounce
of gold production, capitalization per ounce of recoverable reserves, quality of management and ability to create shareholder
wealth. Because most of the world’s gold production is outside of the United States, the Fund may have a significant portion
of its investments in Gold Companies in securities of foreign issuers, including those located in developed as well as emerging
markets. The percentage of Fund assets invested in particular countries or regions will change from time to time based on the
Investment Adviser’s judgment. Among other things, the Investment Adviser will consider the economic stability and economic
outlook of these countries and regions. See “Risk Factors and Special Considerations — Industry Risks.”.
Natural
Resources Industries Concentration. Under normal market conditions, the Fund will invest at least 25% of its assets in equity
securities of Natural Resources Companies. “Natural Resources Companies” are those that are principally engaged in
the group of industries that constitute the natural resources industries, which include companies principally engaged in the exploration,
production or distribution of energy or natural resources, such as gas, oil, paper, food and agriculture, forestry products, metals
(other than gold) and minerals as well as related transportation companies and equipment manufacturers.
Principally
engaged means a company that derives at least 50% of its revenues or earnings or devotes at least 50% of its assets to gold or
natural resources related activities, as the case may be.
Covered
Calls and Other Option Transactions. The Fund intends to generate gains through an option strategy which will normally consist
of writing (selling) call options on equity securities in its portfolio (“covered calls”), but may, in amounts up
to 15% of the Fund’s assets, consist of writing uncovered call options on additional amounts of such securities beyond the
amounts held in its portfolio, on other securities not held in its portfolio, on indices comprised of Gold Companies or Natural
Resources Companies or on exchange traded funds comprised of such issuers and also may consist of writing put options on securities
in its portfolio. Writing a covered call is the selling of an option contract entitling the buyer to purchase an underlying security
that the Fund owns, while writing an uncovered call is the selling of such a contract entitling the buyer to purchase a security
the Fund does not own or in an amount in excess of the amount the Fund owns. When the Fund sells a call option, it generates gains
in the form of the premium paid by the buyer of the call option, but the Fund forgoes the opportunity to participate in any increase
in the value of the underlying equity security above the exercise price of the option. The writer of the call option has the obligation,
upon exercise of the option, to deliver the underlying security or currency upon payment of the exercise price during the option
period.
A
put option is the reverse of a call option, giving the buyer the right, in return for a premium, to sell the underlying security
to the writer, at a specified price, and obligating the writer to purchase the underlying security from the holder at that price.
When the Fund sells a put option, it generates gains in the form of the premium paid by the buyer of the put option, but the Fund
will have the obligation to buy the underlying security at the exercise price if the price of the security decreases below the
exercise price of the option.
If
the Fund has written a call option, it may terminate its obligation by effecting a closing purchase transaction. This is accomplished
by purchasing a call option with the same terms as the option previously written. However, once the Fund has been assigned an
exercise notice, the Fund will be unable to effect a closing purchase transaction. Similarly, if the Fund is the holder of an
option, it may liquidate its position by effecting a closing sale transaction. This is accomplished by selling an option with
the same terms as the option previously purchased. There can be no assurance that either a closing purchase or sale transaction
can be effected when the Fund so desires.
The
Fund will realize a profit from a closing transaction if the price of the transaction is less than the premium it received from
writing the option or is more than the premium it paid to purchase the option; the Fund will realize a loss from a closing transaction
if the price of the transaction is more than the premium it received from writing the option or is less than the premium it paid
to purchase the option. Since call option prices generally reflect increases in the price of the underlying security, any loss
resulting from the repurchase of a call option may also be wholly or partially offset by unrealized appreciation of the underlying
security. Other principal factors affecting the market value of a put or a call option include supply and demand, interest rates,
the current market price and price volatility of the underlying security and the time remaining until the expiration date of the
option. Gains and losses on investments in options depend, in part, on the ability of the Investment Adviser to predict correctly
the effect of these factors. The use of options cannot serve as a complete hedge since the price movement of securities underlying
the options will not necessarily follow the price movements of the portfolio securities subject to the hedge.
An
option position may be closed out only on an exchange that provides a secondary market for an option with the same terms or in
a private transaction. Although the Fund will generally purchase or write options for which there appears to be an active secondary
market, there is no assurance that a liquid secondary market on an exchange will exist for any particular option. In such event,
it might not be
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Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
possible
to effect closing transactions in particular options, in which case the Fund would have to exercise its options in order to realize
any profit and would incur brokerage commissions upon the exercise of call options and upon the subsequent disposition of underlying
securities for the exercise of put options.
When
the Fund writes an uncovered call option or put option, it will segregate liquid assets with its custodian in an amount equal
to the amount, adjusted daily, by which such option is in the money or will treat the unsegregated amount as borrowings.
Although
the Investment Adviser will attempt to take appropriate measures to minimize the risks relating to the Fund’s writing and
purchasing of put and call options, there can be no assurance that the Fund will succeed in any option-writing program it undertakes.
See “Risk Factors and Special Considerations — Risks Associated with Covered Calls and Other Options.”.
Foreign
Securities. Because many of the world’s Gold Companies and Natural Resources Companies are located outside of the United
States, the Fund may have a significant portion of its investments in securities of foreign issuers, which are generally denominated
in foreign currencies. See “Risk Factors and Special Considerations — Foreign Securities Risk.”
The
Fund may also purchase sponsored American Depository Receipts (“ADRs”) or U.S. dollar denominated securities of foreign
issuers. ADRs are receipts issued by U.S. banks or trust companies in respect of securities of foreign issuers held on deposit
for use in the U.S. securities markets.
Emerging
Markets. The Fund may invest without limit in securities of emerging market issuers. These securities may be U.S. dollar denominated
or non-U.S. dollar denominated, including emerging market country currency denominated. An “emerging market” country
is any country that is considered to be an emerging or developing country by the International Bank for Reconstruction and Development
(the “World Bank”). Emerging market countries generally include every nation in the world except the United States,
Canada, Japan, Australia, New Zealand and most countries located in Western Europe.
Registered
Investment Companies. The Fund may invest in registered investment companies in accordance with the 1940 Act, to the extent
consistent with the Fund’s investment objectives, including exchange traded funds that concentrate in investments in the
gold or natural resources industries. The 1940 Act generally prohibits the Fund from investing more than 5% of its assets in any
one other investment company or more than 10% of its assets in all other investment companies. However, many exchange-traded funds
are exempt from these limitations.
Illiquid
Investments. The Fund may invest up to 15% of its net assets in securities for which there is no readily available trading
market or that are otherwise illiquid. Illiquid securities include, among other things, securities legally restricted as to resale
such as commercial paper issued pursuant to Section 4(2) of the Securities Act, securities traded pursuant to Rule 144A of the
Securities Act, written OTC options, repurchase agreements with maturities in excess of seven days, certain loan participation
interests, fixed time deposits which are not subject to prepayment or provide for withdrawal penalties upon prepayment (other
than overnight deposits), and other securities whose disposition is restricted under the federal securities laws. Section 4(2)
and Rule 144A securities may, however, be treated as liquid by the Investment Adviser pursuant to procedures adopted by the Board
of Trustees, which require consideration of factors such as trading activity, availability of market quotations and number of
dealers willing to purchase the security. If the Fund invests in Rule 144A securities, the level of portfolio illiquidity may
be increased to the extent that eligible buyers exhibit weak demand for such securities.
It
may be more difficult to sell unregistered securities at an attractive price should their resale remain restricted than if such
securities were in the future to become publicly traded. Where registration is desired, a considerable period may elapse between
a decision to sell the securities and the time when registration is complete. Thus, the Fund may not be able to obtain as favorable
a price at the time of the decision to sell as it might achieve in the future. The Fund may also acquire securities with contractual
restrictions on the resale of such securities. Such restrictions might prevent their sale at a time when such sale would otherwise
be desirable.
Income
Securities. The Fund may invest in other equity securities that are expected to periodically accrue or generate income for
their holders such as common and preferred stocks of issuers that have historically paid periodic dividends or otherwise made
distributions to stockholders. Unlike fixed income securities, dividend payments generally are not guaranteed and so may be discontinued
by the issuer at its discretion or because of the issuer’s inability to satisfy its liabilities. Further, an issuer’s
history of paying dividends does not guarantee that it will continue to pay dividends in the future. In addition to dividends,
under certain circumstances the holders of common stock may benefit from the capital appreciation of the issuer.
In
addition, the Fund also may invest in fixed income securities such as convertible securities, bonds, debentures, notes, stock,
short term discounted Treasury Bills or certain securities of the U.S. government sponsored instrumentalities, as well as money
market mutual funds that invest in those securities, which, in the absence of an applicable exemptive order, will not be affiliated
with the Investment Adviser. Fixed income securities obligate the issuer to pay to the holder of the security a specified return,
which may be either fixed or reset periodically in accordance with the terms of the security. Fixed income securities generally
are senior to an issuer’s common stock and their holders generally are entitled to receive amounts due before any distributions
are made to common stockholders. Common stocks, on the other hand, generally do not obligate an issuer to make periodic distributions
to holders.
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Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
The
Fund may also invest in obligations of government sponsored instrumentalities. Unlike non-U.S. government securities, obligations
of certain agencies and instrumentalities of the United States government, such as the Government National Mortgage Association,
are supported by the “full faith and credit” of the United States government; others, such as those of the Export-Import
Bank of the United States, are supported by the right of the issuer to borrow from the United States Treasury; others, such as
those of the Federal National Mortgage Association, are supported by the discretionary authority of the United States government
to purchase the agency’s obligations; and still others, such as those of the Student Loan Marketing Association, are supported
only by the credit of the instrumentality. No assurance can be given that the United States government would provide financial
support to United States government sponsored instrumentalities if it is not obligated to do so by law. Although the Fund may
invest in all types of obligations of agencies and instrumentalities of the United States government, the Fund currently intends
to invest only in obligations of government sponsored instrumentalities that are supported by the “full faith and credit”
of the U.S. government.
When
Issued, Delayed Delivery Securities and Forward Commitments. The Fund may enter into forward commitments for the purchase
or sale of securities, including on a “when issued” or “delayed delivery” basis, in excess of customary
settlement periods for the type of security involved. In some cases, a forward commitment may be conditioned upon the occurrence
of a subsequent event, such as approval and consummation of a merger, corporate reorganization or debt restructuring (i.e., a
when, as and if issued security). When such transactions are negotiated, the price is fixed at the time of the commitment, with
payment and delivery taking place in the future, generally a month or more after the date of the commitment. While it will only
enter into a forward commitment with the intention of actually acquiring the security, the Fund may sell the security before the
settlement date if it is deemed advisable.
Securities
purchased under a forward commitment are subject to market fluctuation, and no interest (or dividends) accrues to the Fund prior
to the settlement date. The Fund will segregate with its custodian cash or liquid securities in an aggregate amount at least equal
to the amount of its outstanding forward commitments.
Short
Sales. The Fund may make short sales as a form of hedging to offset potential declines in long positions in the same or similar
securities, including short sales against the box. The short sale of a security is considered a speculative investment technique.
At the time of the sale, the Fund will own, or have the immediate and unconditional right to acquire at no additional cost, identical
or similar securities or establish a hedge against a security of the same issuer which may involve additional cost, such as an
“in the money” warrant.
Short
sales “against the box” are subject to special tax rules, one of the effects of which may be to accelerate the recognition
of income by the Fund. Other than with respect to short sales against the box, the Fund will limit short sales of securities to
not more than 5% of the Fund’s assets. When the Fund makes a short sale, it must deliver the security to the broker-dealer
through which it made the short sale in order to satisfy its obligation to deliver the security upon conclusion of the sale.
Repurchase
Agreements. Repurchase agreements may be seen as loans by the Fund collateralized by underlying debt securities. Under the
terms of a typical repurchase agreement, the Fund would acquire an underlying debt obligation for a relatively short period (usually
not more than one week) subject to an obligation of the seller to repurchase, and the Fund to resell, the obligation at an agreed
price and time. This arrangement results in a fixed rate of return to the Fund that is not subject to market fluctuations during
the holding period. The Fund bears a risk of loss in the event that the other party to a repurchase agreement defaults on its
obligations and the Fund is delayed in or prevented from exercising its rights to dispose of the collateral securities, including
the risk of a possible decline in the value of the underlying securities during the period in which it seeks to assert these rights.
The Investment Adviser, acting under the supervision of the Board of Trustees, reviews the creditworthiness of those banks and
dealers with which the Fund enters into repurchase agreements to evaluate these risks, and monitors on an ongoing basis the value
of the securities subject to repurchase agreements to ensure that the value is maintained at the required level. The Fund will
not enter into repurchase agreements with the Investment Adviser or any of its affiliates.
Convertible
Securities. A convertible security is a bond, debenture, note, stock or other similar security that may be converted into
or exchanged for a prescribed amount of common stock or other equity security of the same or a different issuer within a particular
period of time at a specified price or formula. Before conversion, convertible securities have characteristics similar to non-convertible
debt securities in that they ordinarily provide a stream of income with generally higher yields than those of common stock of
the same or similar issuers. Convertible securities are senior in rank to common stock in a corporation’s capital structure
and, therefore, generally entail less risk than the corporation’s common stock, although the extent to which such risk is
reduced depends in large measure upon the degree to which the convertible security sells above its value as a fixed income security.
See “Risk Factors and Special Considerations — Convertible Securities Risk.”.
Non-Investment
Grade Securities. The Fund may invest up to 10% of its assets in securities rated below investment grade by recognized statistical
rating agencies or unrated securities of comparable quality. The prices of these lower grade securities are more sensitive to
negative developments, such as a decline in the issuer’s revenues or a general economic downturn, than are the prices of
higher grade securities. Securities of below investment grade quality — those securities rated below “Baa” by
Moody’s or below “BBB” by S&P (or unrated securities of comparable quality) — are predominantly speculative
with respect to the issuer’s capacity to pay interest and repay
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Additional Fund Information (Continued) (Unaudited)
principal
when due and therefore involve a greater risk of default. Securities rated below investment grade commonly are referred to as
“junk bonds” or “high yield” securities.
Generally,
such lower grade securities and unrated securities of comparable quality offer a higher current yield than is offered by higher
rated securities, but also (i) will likely have some quality and protective characteristics that, in the judgment of the rating
organizations, are outweighed by large uncertainties or major risk exposures to adverse conditions and (ii) are predominantly
speculative with respect to the issuer’s capacity to pay interest and repay principal in accordance with the terms of the
obligation. The market values of certain of these securities also tend to be more sensitive to individual corporate developments
and changes in economic conditions than higher quality securities. In addition, such lower grade securities and comparable unrated
securities generally present a higher degree of credit risk. The risk of loss due to default by these issuers is significantly
greater because such lower grade securities and unrated securities of comparable quality generally are unsecured and frequently
are subordinated to the prior payment of senior indebtedness. In light of these risks, the Investment Adviser, in evaluating the
creditworthiness of an issue, whether rated or unrated, will take various factors into consideration, which may include, as applicable,
the issuer’s operating history, financial resources and its sensitivity to economic conditions and trends, the market support
for the facility financed by the issue, the perceived ability and integrity of the issuer’s management and regulatory matters.
In
addition, the market value of securities in lower grade categories is more volatile than that of higher quality securities, and
the markets in which such lower grade or unrated securities are traded are more limited than those in which higher rated securities
are traded. The existence of limited markets may make it more difficult for the Fund to obtain accurate market quotations for
purposes of valuing its portfolio and calculating its net asset value. Moreover, the lack of a liquid trading market may restrict
the availability of securities for the Fund to purchase and may also have the effect of limiting the ability of the Fund to sell
securities at their fair value to respond to changes in the economy or the financial markets.
Non-investment
grade and unrated securities of comparable quality also present risks based on payment expectations. If an issuer calls the obligation
for redemption (often a feature of fixed income securities), the Fund may have to replace the security with a lower yielding security,
resulting in a decreased return for investors. Also, as the principal value of bonds moves inversely with movements in interest
rates, in the event of rising interest rates the value of the securities held by the Fund may decline proportionately more than
a portfolio consisting of higher rated securities. Investments in zero coupon bonds may be more speculative and subject to greater
fluctuations in value due to changes in interest rates than bonds that pay interest currently. Interest rates are at historical
lows and, therefore, it is likely that they will rise in the future.
The
Fund may purchase securities of companies that are experiencing significant financial or business difficulties, including companies
involved in bankruptcy or other reorganization and liquidation proceedings. Although such investments may result in significant
financial returns to the Fund, they involve a substantial degree of risk. The level of analytical sophistication, both financial
and legal, necessary for successful investments in issuers experiencing significant business and financial difficulties is unusually
high. There can be no assurance that the Fund will correctly evaluate the value of the assets collateralizing its investments
or the prospects for a successful reorganization or similar action. In any reorganization or liquidation proceeding relating to
a portfolio investment, the Fund may lose all or part of its investment or may be required to accept collateral with a value less
than the amount of the Fund’s initial investment..
As
part of its investments in lower grade securities, the Fund may invest without limit in securities of issuers in default. The
Fund will make an investment in securities of issuers in default only when the Investment Adviser believes that such issuers will
honor their obligations or emerge from bankruptcy protection and the value of these securities will appreciate. By investing in
securities of issuers in default, the Fund bears the risk that these issuers will not continue to honor their obligations or emerge
from bankruptcy protection or that the value of the securities will not appreciate.
In
addition to using statistical rating agencies and other sources, the Investment Adviser also performs its own analysis of issues
in seeking investments that it believes to be underrated (and thus higher-yielding) in light of the financial condition of the
issuer. Its analysis of issuers may include, among other things, current and anticipated cash flow and borrowing requirements,
value of assets in relation to historical cost, strength of management, responsiveness to business conditions, credit standing
and current anticipated results of operations. In selecting investments for the Fund, the Investment Adviser may also consider
general business conditions, anticipated changes in interest rates and the outlook for specific industries.
Subsequent
to its purchase by the Fund, an issue of securities may cease to be rated or its rating may be reduced. In addition, it is possible
that statistical rating agencies might change their ratings of a particular issue to reflect subsequent events on a timely basis.
Moreover, such ratings do not assess the risk of a decline in market value. None of these events will require the sale of the
securities by the Fund, although the Investment Adviser will consider these events in determining whether the Fund should continue
to hold the securities.
Fixed
income securities, including lower grade securities and comparable unrated securities, frequently have call or buy-back features
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that
permit their issuers to call or repurchase the securities from their holders, such as the Fund. If an issuer exercises these rights
during periods of declining interest rates, the Fund may have to replace the security with a lower yielding security, thus resulting
in a decreased return for the Fund.
The
market for lower grade and comparable unrated securities has at various times, particularly during times of economic recession,
experienced substantial reductions in market value and liquidity. Past recessions have adversely affected the value of such securities
as well as ability of certain issuers of such securities to repay principal and pay interest thereon or to refinance such securities.
The market for those securities could react in a similar fashion in the event of any future economic recession.
Other
Derivative Instruments. The Fund may also utilize other types of derivative instruments, primarily for hedging or risk management
purposes. These instruments include futures, forward contracts, options on such contracts and interest rate, total return and
other kinds of swaps. These investment management techniques generally will not be considered senior securities if the Fund establishes
in a segregated account cash or other liquid securities or sets aside assets on the accounting records equal to the Fund’s
obligations in respect of such techniques. For a further description of such derivative instruments, see “Investment Objectives
and Policies — Derivative Instruments” in the SAI.
Leveraging.
As provided in the 1940 Act and subject to certain exceptions, the Fund may issue senior securities (which may be additional classes
of stock, such as preferred shares, or securities representing debt) so long as its total assets, less certain ordinary course
liabilities, exceed 300% of the amount of the debt outstanding and exceed 200% of the amount of preferred shares and debt outstanding.
The use of leverage magnifies the impact of changes in net asset value. For example, a fund that uses 33% leverage will show a
1.5% increase or decline in net asset value for each 1% increase or decline in the value of its total assets. In addition, if
the cost of leverage exceeds the return on the securities acquired with the proceeds of leverage, the use of leverage will diminish
rather than enhance the return to the Fund. The use of leverage generally increases the volatility of returns to the Fund. See
“Risk Factors and Special Considerations — Leverage Risk.”
In
the event the Fund had both outstanding preferred shares and senior securities representing debt at the same time, the Fund’s
obligations to pay dividends or distributions and, upon liquidation of the Fund, liquidation payments in respect of its preferred
shares would be subordinate to the Fund’s obligations to make any principal and/or interest payments due and owing with
respect to its outstanding senior debt securities. Accordingly, the Fund’s issuance of senior securities representing debt
would have the effect of creating special risks for the Fund’s preferred shareholders that would not be present in a capital
structure that did not include such securities. See “Risk Factors and Special Considerations — Special Risks Related
to Preferred Securities.”
Additionally,
the Fund may enter into derivative transactions that have economic leverage embedded in them. Derivative transactions that the
Fund may enter into and the risks associated with them are described in the Prospectus and in the SAI. The Fund cannot assure
you that investments in derivative transactions that have economic leverage embedded in them will result in a higher return on
its common shares.
To
the extent the terms of such transactions obligate the Fund to make payments, the Fund may earmark or segregate cash or liquid
assets in an amount at least equal to the current value of the amount then payable by the Fund under the terms of such transactions
or otherwise cover such transactions in accordance with applicable interpretations of the staff of the SEC. If the current value
of the amount then payable by the Fund under the terms of such transactions is represented by the notional amounts of such investments,
the Fund would segregate or earmark cash or liquid assets having a market value at least equal to such notional amounts, and if
the current value of the amount then payable by the Fund under the terms of such transactions is represented by the market value
of the Fund’s current obligations, the Fund would segregate or earmark cash or liquid assets having a market value at least
equal to such current obligations. To the extent the terms of such transactions obligate the Fund to deliver particular securities
to extinguish the Fund’s obligations under such transactions the Fund may “cover” its obligations under such
transactions by either (i) owning the securities or collateral underlying such transactions or (ii) having an absolute and immediate
right to acquire such securities or collateral without additional cash consideration (or, if additional cash consideration is
required, having earmarked or segregated an appropriate amount of cash or liquid assets). Such earmarking, segregation or cover
is intended to provide the Fund with available assets to satisfy its obligations under such transactions. As a result of such
earmarking, segregation or cover, the Fund’s obligations under such transactions will not be considered senior securities
representing indebtedness for purposes of the 1940 Act, or considered borrowings, but may create leverage for the Fund. To the
extent that the Fund’s obligations under such transactions are not so earmarked, segregated or covered, such obligations
may be considered “senior securities representing indebtedness” under the 1940 Act and therefore subject to the 300%
asset coverage requirement.
These
earmarking, segregation or cover requirements can result in the Fund maintaining securities positions it would otherwise liquidate,
segregating or earmarking assets at a time when it might be disadvantageous to do so or otherwise restrict portfolio management.
Temporary
Defensive Investments. Although under normal market conditions the Fund intends to invest at least 80% of its assets in equity
securities of companies principally engaged in the gold industry and the natural resources industries, when a temporary defensive
posture is believed by the Investment Adviser to be warranted (“temporary defensive periods”), the Fund may without
limitation hold cash or invest
GAMCO
Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
its
assets in money market instruments and repurchase agreements in respect of those instruments. The money market instruments in
which the Fund may invest are obligations of the U.S. government, its agencies or instrumentalities; commercial paper rated A-1
or higher by S&P or Prime-1 by Moodys; and certificates of deposit and bankers acceptances issued by domestic branches of
U.S. banks that are members of the Federal Deposit Insurance Corporation. During temporary defensive periods, the Fund may also
invest to the extent permitted by applicable law in shares of money market mutual funds. Money market mutual funds are investment
companies and the investments in those companies by the Fund are in some cases subject to applicable law. See “Investment
Restrictions” in the SAI. The Fund may find it more difficult to achieve the long term growth of capital component of its
investment objectives during temporary defensive periods.
Portfolio
Turnover. The Fund will buy and sell securities to accomplish its investment objectives. The investment policies of the Fund,
including its strategy of writing covered call options on securities in its portfolio, are expected to result in portfolio turnover
that is higher than that of many investment companies, and may be higher than 100%. For the years ending December 31, 2017 and
December 31, 2016, the portfolio turnover rates were 214.6% and 198.4%, respectively.
Portfolio
turnover generally involves expense to the Fund, including brokerage commissions or dealer mark-ups and other transaction costs
on the sale of securities and reinvestment in other securities. The portfolio turnover rate is computed by dividing the lesser
of the amount of the securities purchased or securities sold by the average monthly value of securities owned during the year
(excluding securities whose maturities at acquisition were one year or less). Higher portfolio turnover may decrease the after-tax
return to individual investors in the Fund to the extent it results in a decrease in the portion of the Fund’s distributions
that is attributable to long term capital gains.
Interest
Rate Transactions.
The
Fund may enter into interest rate swap or cap transactions to manage its borrowing costs, as well as to increase income. The use
of interest rate swaps and caps is a highly specialized activity that involves investment techniques and risks different from
those associated with ordinary portfolio security transactions. In an interest rate swap, the Fund would agree to pay to the other
party to the interest rate swap (which is known as the “counterparty”) periodically a fixed rate payment in exchange
for the counterparty agreeing to pay to the fund periodically a variable rate payment that is intended to approximate the Fund’s
variable rate payment obligation on its borrowings (or the Fund’s potential variable payment obligations on fixed rate preferred
shares that may have certain variable rate features). In an interest rate cap, the Fund would pay a premium to the counterparty
to the interest rate cap and, to the extent that a specified variable rate index exceeds a predetermined fixed rate, would receive
from the counterparty payments of the difference based on the notional amount of such cap. Interest rate swap and cap transactions
introduce additional risk because the Fund would remain obligated to pay interest or preferred shares dividends when due even
if the counterparty defaulted. Depending on the general state of short term interest rates and the returns on the Fund’s
portfolio securities at that point in time, such a default could negatively affect the Fund’s ability to make interest payments
or dividend payments on the preferred shares. In addition, at the time an interest rate swap or cap transaction reaches its scheduled
termination date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the
replacement will not be as favorable as on the expiring transaction. If this occurs, it could have a negative impact on the Fund’s
ability to make interest payments or dividend payments on the preferred shares. To the extent there is a decline in interest rates,
the value of the interest rate swap or cap could decline, resulting in a decline in the asset coverage for the borrowings or preferred
shares. A sudden and dramatic decline in interest rates may result in a significant decline in the asset coverage. If the Fund
fails to maintain the required asset coverage on any outstanding preferred shares or fails to comply with other covenants, the
Fund may be required to prepay some or all of such borrowings or redeem some or all of these shares. Any such prepayment or redemption
would likely result in the Fund seeking to terminate early all or a portion of any swap or cap transactions. Early termination
of a swap could result in a termination payment by the Fund to the counterparty, while early termination of a cap could result
in a termination payment to the Fund.
The
Fund may enter into equity contract for difference swap transactions, for the purpose of increasing the income of the Fund. In
an equity contract for difference swap, a set of future cash flows is exchanged between two counterparties. One of these cash
flow streams will typically be based on a reference interest rate combined with the performance of a notional value of shares
of a stock. The other will be based on the performance of the shares of a stock. Depending on the general state of short term
interest rates and the returns on the Fund’s portfolio securities at the time a swap transaction reaches its scheduled termination
date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the replacement
will not be as favorable as on the expiring transaction.
The
Fund will usually enter into swaps or caps on a net basis; that is, the two payment streams will be netted out in a cash settlement
on the payment date or dates specified in the instrument, with the Fund receiving or paying, as the case may be, only the net
amount of the two payments. The Fund intends to segregate or earmark cash or liquid assets a value at least equal to the value
of the Fund’s net payment obligations under any swap transaction, marked to market daily. The Fund will monitor any such
swap with a view to ensuring that the Fund remains in compliance with all applicable regulatory, investment policy and tax requirements.
If
the Fund writes (sells) a credit default swap or credit default index swap, then the Fund will, during the term of the swap agreement,
designate on its books and records in connection with such transaction liquid assets or cash with a value at least equal to the
full notional amount of the contract.
GAMCO
Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
RISK
FACTORS AND SPECIAL CONSIDERATIONS.
Investors
should consider the following risk factors and special considerations associated with investing in the Fund:
Total
Return Risk.
The
Fund utilizes several investment management techniques in an effort to generate positive total return. The risks of these techniques,
such as option writing, leverage, concentration in certain industries, and investing in emerging markets, are described in the
following paragraphs. Taken together these and other techniques represent a risk that the Fund will experience a negative total
return even in market environments that are generally positive and that the Fund’s returns, both positive and negative,
may be more volatile than if the Fund did not utilize these investment techniques.
Industry
Risks.
Industry
Risks. The Fund’s investments will be concentrated in the gold and natural resources industries. Because the Fund is
concentrated in these industries, it may present more risks than if it were broadly diversified over numerous industries and sectors
of the economy. A downturn in the gold or natural resources industries would have a larger impact on the Fund than on an investment
company that does not concentrate in such industries.
The
Fund invests in equity securities of Gold Companies. Equity securities of Gold Companies may experience greater volatility than
companies not involved in the gold industry. Investments related to gold are considered speculative and are affected by a variety
of worldwide economic, financial and political factors. The price of gold, which has experienced substantial increases in recent
periods, may fluctuate sharply, including substantial decreases, over short periods of time due to changes in inflation or expectations
regarding inflation in various countries, the availability of supplies of gold, changes in industrial and commercial demand, gold
sales by governments, central banks or international agencies, investment speculation, monetary and other economic policies of
various governments and government restrictions on private ownership of gold. In times of significant inflation or great economic
uncertainty, Gold Companies have historically outperformed securities markets generally. However, in times of stable economic
growth, traditional equity and debt investments could offer greater appreciation potential and the value of gold and the prices
of equity securities of Gold Companies may be adversely affected, which could in turn affect the Fund’s returns. Some Gold
Companies hedge, to varying degrees, their exposure to declines in the price of gold. Such hedging limits a Gold Company’s
ability to benefit from future rises in the price of gold. The Investment Adviser’s judgments about trends in the prices
of securities of Gold Companies may prove to be incorrect. It is possible that the performance of securities of Gold Companies
may lag the performance of other industries or the broader market as a whole.
The
Fund invests in equity securities of Natural Resources Companies. A downturn in the indicated natural resources industries would
have a larger impact on the Fund than on an investment company that does not invest significantly in such industries. Such industries
can be significantly affected by the supply of and demand for the indicated commodities and related services, exploration and
production spending, government regulations, world events and economic conditions. The oil, gas, paper, food and agriculture,
forestry products, metals (other than gold) and minerals industries can be significantly affected by events relating to international
political developments, the success of exploration projects, commodity prices, and tax and government regulations. The stock prices
of Natural Resources Companies, some of which have experienced substantial price increases in recent periods, may also experience
greater price volatility than other types of common stocks. Securities issued by Natural Resources Companies are sensitive to
changes in the prices of, and in supply and demand for, the indicated commodities. The value of securities issued by Natural Resources
Companies may be affected by changes in overall market movements, changes in interest rates, or factors affecting a particular
industry or commodity, such as weather, embargoes, tariffs, policies of commodity cartels and international economic, political
and regulatory developments. The Investment Adviser’s judgments about trends in the prices of these securities and commodities
may prove to be incorrect. It is possible that the performance of securities of Natural Resources Companies may lag the performance
of other industries or the broader market as a whole.
Supply
and Demand Risk. A decrease in the production of or exploitation of gold, gas, oil, paper, food and agriculture, forestry
products, metals (other than gold) or minerals or a decrease in the volume of such commodities available for transportation, mining,
processing, storage or distribution may adversely impact the financial performance of the Fund’s investments. Production
declines and volume decreases could be caused by various factors, including catastrophic events affecting production, depletion
of resources, labor difficulties, environmental proceedings, increased regulations, equipment failures and unexpected maintenance
problems, import supply disruption, increased competition from alternative energy sources or commodity prices.
Sustained
declines in demand for the indicated commodities could also adversely affect the financial performance of Gold Companies and Natural
Resources Companies over the long term. Factors which could lead to a decline in demand include economic recession or other adverse
economic conditions, higher fuel taxes or governmental regulations, increases in fuel economy, consumer shifts to the use of alternative
fuel sources, changes in commodity prices, or weather.
Depletion
and Exploration Risk. Many Gold Companies and Natural Resources Companies are either engaged in the production or exploitation
GAMCO
Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
of
the particular commodities or are engaged in transporting, storing, distributing and processing such commodities. To maintain
or increase their revenue level, these companies or their customers need to maintain or expand their reserves through exploration
of new sources of supply, through the development of existing sources, acquisitions, or long term contracts to acquire reserves.
The financial performance of Gold Companies and Natural Resources Companies may be adversely affected if they, or the companies
to whom they provide products or services, are unable to cost effectively acquire additional products or reserves sufficient to
replace the natural decline.
Regulatory
Risk. Gold Companies and Natural Resources Companies may be subject to extensive government regulation in virtually every
aspect of their operations, including how facilities are constructed, maintained and operated, environmental and safety controls,
and in some cases the prices they may charge for the products and services they provide. Various governmental authorities have
the power to enforce compliance with these regulations and the permits issued under them, and violators are subject to administrative,
civil and criminal penalties, including civil fines, injunctions or both. Stricter laws, regulations or enforcement policies could
be enacted in the future, which would likely increase compliance costs and may adversely affect the financial performance of Gold
Companies and Natural Resources Companies.
Commodity
Pricing Risk. The operations and financial performance of Gold Companies and Natural Resources Companies may be directly affected
by the prices of the indicated commodities, especially those Gold Companies and Natural Resources Companies for whom the commodities
they own are significant assets. Commodity prices fluctuate for many reasons, including changes in market and economic conditions,
levels of domestic production, impact of governmental regulation and taxation, the availability of transportation systems and,
in the case of oil and gas companies in particular, conservation measures and the impact of weather. Volatility of commodity prices,
which may lead to a reduction in production or supply, may also negatively affect the performance of Gold Companies and Natural
Resources Companies which are solely involved in the transportation, processing, storing, distribution or marketing of commodities.
Volatility of commodity prices may also make it more difficult for Gold Companies and Natural Resources Companies to raise capital
to the extent the market perceives that their performance may be directly or indirectly tied to commodity prices.
Oil
and Natural Gas Price Volatility Risk.
Crude
oil and natural gas prices historically have been volatile and likely will continue to be volatile given current geopolitical
conditions. The prices for crude oil and natural gas are subject to a variety of factors beyond our control, such as the domestic
and foreign supply of crude oil and natural gas, consumer demand for crude oil and natural gas, and market expectations regarding
supply and demand. These factors and the volatility of the energy markets make it extremely difficult to predict price movements.
In the second quarter of 2015, stock prices in China experienced a significant drop, resulting primarily from continued sell-off
of shares trading in Chinese markets. In August 2015, Chinese authorities sharply devalued China’s currency. The volatility
has been followed by volatility in stock markets around the world, including in the United States, as well as increased turbulence
in commodity markets, resulting in reductions in prices of crude oil. Continued sell-off and price drops in the Chinese stock
markets may have a contagion effect across the financial markets.
Climate
Change Risk. Climate change and regulations intended to control its impact may affect the value of the Fund’s investments.
The Fund’s current evaluation is that the near term effects of climate change and climate change regulation on the Fund’s
investments are not material, but the Fund cannot predict the long term impacts on the Fund or its investments from climate change
or related regulations. The ongoing political focus on climate change has resulted in various treaties, laws and regulations which
are intended to limit carbon emissions. The Fund believes these laws being enacted or proposed may cause energy costs at properties
owned by the real estate investment trusts (“REITs”) or other real estate companies in which the Fund invests to increase.
The Fund does not expect the direct impact of such increases to be material to the value of its investments, because the increased
costs either would be the responsibility of tenants or operators of properties owned by the REITs or other real estate companies
in which the Fund invests, or, in the longer term, passed through and paid by the customers of such properties. There can be no
assurance that climate change will not have a material adverse effect on the properties, operations or business of the Fund’s
investments in REITs and other real estate companies.
The
Fund cannot predict with certainty whether global warming or cooling is occurring and, if so, at what rate. However, the physical
effects of climate change could have a material adverse effect on the properties, operations and business of the Fund’s
investments in REITs and other real estate companies in certain geographical locations. To the extent climate change causes changes
in weather patterns, properties in these markets could experience increases in storm intensity, flooding and rising sea levels.
Over time, these conditions could result in declining demand for the buildings owned by certain REITs and other real estate companies
in which the Fund invests, or the inability of such REITs or other real estate companies to operate such buildings at all.
Risks
Associated with Covered Calls and Other Option Transactions.
There
are several risks associated with transactions in options on securities. For example, there are significant differences between
the securities and options markets that could result in an imperfect correlation between these markets, causing a given covered
call option transaction not to achieve its objectives. A decision as to whether, when and how to use covered calls (or other options)
involves the exercise of skill and judgment, and even a well conceived transaction may be unsuccessful because of market behavior
or unexpected events. The use of options may require the Fund to sell portfolio securities at inopportune times or for prices
other than current market
GAMCO
Global Gold, Natural Resources & Income Trust
Additional
Fund Information (Continued) (Unaudited)
values,
may limit the amount of appreciation the Fund can realize on an investment, or may cause the Fund to hold a security it might
otherwise sell. As the writer of a covered call option, the Fund forgoes, during the option’s life, the opportunity to profit
from increases in the market value of the security covering the call option above the exercise price of the call option, but has
retained the risk of loss should the price of the underlying security decline. Although such loss would be offset in part by the
option premium received, in a situation in which the price of a particular stock on which the Fund has written a covered call
option declines rapidly and materially or in which prices in general on all or a substantial portion of the stocks on which the
Fund has written covered call options decline rapidly and materially, the Fund could sustain material depreciation or loss in
its net assets to the extent it does not sell the underlying securities (which may require it to terminate, offset or otherwise
cover its option position as well). The writer of an option has no control over the time when it may be required to fulfill its
obligation as a writer of the option. Once an option writer has received an exercise notice, it cannot effect a closing purchase
transaction in order to terminate its obligation under the option and must deliver the underlying security at the exercise price.
There
can be no assurance that a liquid market will exist when the Fund seeks to close out an option position. Reasons for the absence
of a liquid secondary market for exchange-traded options include the following: (i) there may be insufficient trading interest;
(ii) restrictions may be imposed by an exchange on opening transactions or closing transactions or both; (iii) trading halts,
suspensions or other restrictions may be imposed with respect to particular classes or series of options; (iv) unusual or unforeseen
circumstances may interrupt normal operations on an exchange; (v) the trading facilities of an exchange or the Options Clearing
Corporation (the “OCC”) may not be adequate to handle current trading volume; or (vi) the relevant exchange could,
for economic or other reasons, decide or be compelled at some future date to discontinue the trading of options (or a particular
class or series of options). If trading were discontinued, the secondary market on that exchange (or in that class or series of
options) would cease to exist. However, outstanding options on that exchange that had been issued by the OCC as a result of trades
on that exchange would continue to be exercisable in accordance with their terms. The Fund’s ability to terminate OTC options
may be more limited than with exchange-traded options and may involve the risk that counterparties participating in such transactions
will not fulfill their obligations. If the Fund were unable to close out a covered call option that it had written on a security,
it would not be able to sell the underlying security unless the option expired without exercise.
The
hours of trading for options may not conform to the hours during which the underlying securities are traded. To the extent that
the options markets close before the markets for the underlying securities, significant price and rate movements can take place
in the underlying markets that cannot be reflected in the options markets. Call options are marked to market daily and their value
will be affected by changes in the value of and dividend rates of the underlying common stocks, an increase in interest rates,
changes in the actual or perceived volatility of the stock market and the underlying common stocks and the remaining time to the
options’ expiration. Additionally, the exercise price of an option may be adjusted downward before the option’s expiration
as a result of the occurrence of certain corporate events affecting the underlying equity security, such as extraordinary dividends,
stock splits, merger or other extraordinary distributions or events. A reduction in the exercise price of an option would reduce
the Fund’s capital appreciation potential on the underlying security.
Limitation
on Covered Call Writing Risk. The number of covered call options the Fund can write is limited by the number of shares of
common stock the Fund holds. Furthermore, the Fund’s covered call options and other options transactions will be subject
to limitations established by each of the exchanges, boards of trade or other trading facilities on which such options are traded.
These limitations govern the maximum number of options in each class which may be written or purchased by a single investor or
group of investors acting in concert, regardless of whether the options are written or purchased on the same or different exchanges,
boards of trade or other trading facilities or are held or written in one or more accounts or through one or more brokers. As
a result, the number of covered call options that the Fund may write or purchase may be affected by options written or purchased
by it and other investment advisory clients of the Investment Adviser. An exchange, board of trade or other trading facility may
order the liquidation of positions found to be in excess of these limits, and it may impose certain other sanctions.
Risks
Associated with Uncovered Calls
There
are special risks associated with uncovered option writing which expose the Fund to potentially significant loss. As the writer
of an uncovered call option, the Fund has no risk of loss should the price of the underlying security decline, but bears unlimited
risk of loss should the price of the underlying security increase above the exercise price until the Fund covers its exposure.
As with writing uncovered calls, the risk of writing uncovered put options is substantial. The writer of an uncovered put option
bears a risk of loss if the value of the underlying instrument declines below the exercise price. Such loss could be substantial
if there is a significant decline in the value of the underlying instrument.
For
combination writing, where the Fund writes both a put and a call on the same underlying instrument, the potential risk is unlimited.
If a secondary market in options were to become unavailable, the Fund could not engage in losing transactions and would remain
obligated until expiration or assignment.
Equity
Risk.
Investing
in the Fund involves equity risk, which is the risk that the securities held by the Fund will fall in market value due to adverse
GAMCO
Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
market
and economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate
and the particular circumstances and performance of particular companies whose securities the Fund holds. An investment in the
Fund represents an indirect economic stake in the securities owned by the Fund, which are for the most part traded on securities
exchanges or in the OTC markets. The market value of these securities, like other market investments, may move up or down, sometimes
rapidly and unpredictably. The net asset value of the Fund may at any point in time be less than the net asset value of the Fund
at the time the shareholder invested in the Fund, even after taking into account any reinvestment of distributions.
Coronavirus
(“COVID-19”) and Global Health Event Risk. There is an outbreak of a highly contagious form of a novel coronavirus
known as “COVID-19,” which the World Health Organization has declared a global pandemic. The United States has declared
a national emergency, and for the first time in its history, every state in the United States is under a federal disaster declaration.
Many states, including those in which we and our portfolio companies operate, have issued orders requiring the closure of non-essential
businesses and/or requiring residents to stay at home. The COVID-19 pandemic and preventative measures taken to contain or mitigate
its spread have caused, and are continuing to cause, business shutdowns, cancellations of events and travel, significant reductions
in demand for certain goods and services, reductions in business activity and financial transactions, supply chain interruptions
and overall economic and financial market instability both globally and in the United States. Such effects will likely continue
for the duration of the pandemic, which is uncertain, and for some period thereafter. While several countries, as well as certain
states, counties and cities in the United States, began to relax the early public health restrictions with a view to partially
or fully reopening their economies, many cities, both globally and in the United States, have since experienced a surge in the
reported number of cases and hospitalizations related to the COVID-19 pandemic. This increase in cases has led to the re-introduction
of restrictions and business shutdowns in certain states, counties and cities in the United States and globally and could continue
to lead to the re-introduction of such restrictions elsewhere. Additionally, in December 2020, the U.S. Food and Drug Administration
authorized vaccines produced by Pfizer-BioNTech and Moderna for emergency use. However, it remains unclear how quickly the vaccines
will be distributed nationwide and globally or when “herd immunity” will be achieved and the restrictions that were
imposed to slow the spread of the virus will be lifted entirely. The delay in distributing the vaccines could lead people to continue
to self-isolate and not participate in the economy at pre-pandemic levels for a prolonged period of time. Even after the COVID-19
pandemic subsides, the U.S. economy and most other major global economies may continue to experience a recession, and our business
and operations, as well as the business and operations of our portfolio companies, could be materially adversely affected by a
prolonged recession in the United States and other major markets. Potential consequences of the current unprecedented measures
taken in response to the spread of COVID-19, and current market disruptions and volatility that may impact our business include,
but are not limited to:
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sudden,
unexpected and/or severe declines in the market price of our securities or net asset
value;
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inability
of the Fund to accurately or reliably value its portfolio;
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inability
of the Fund to comply with certain asset coverage ratios that would prevent the Fund
from paying dividends to our common stockholders;
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inability
of the Fund to pay any dividends and distributions to any class of equity holders;
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inability
of the Fund to service debt to the extent it has any notes or credit facilities outstanding;
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inability
of the Fund to maintain its status as a RIC under the Code;
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potentially
severe, sudden and unexpected declines in the value of our investments;
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increased
risk of default or bankruptcy by the companies in which we invest;
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increased
risk of companies in which we invest being unable to weather an extended cessation of
normal economic activity and thereby impairing their ability to continue functioning
as a going concern;
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inability
of the companies in which we invest to complete announced transactions;
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reduced
economic demand resulting from mass employee layoffs or furloughs in response to governmental action taken to slow the spread
of COVID-19, which could impact the continued viability of the companies in which we invest;
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companies
in which we invest being disproportionally impacted by governmental action aimed at slowing the spread of COVID-19;
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limited
availability of new investment opportunities; and
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general
threats to the Fund’s ability to continue investment operations and to operate
successfully as a diversified, closed-end investment company.
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Despite
actions of the U.S. federal government and foreign governments, the uncertainty surrounding the COVID-19 pandemic and other factors
has contributed to significant volatility and declines in the global public equity markets and global debt capital markets, including
the market price of our common and preferred shares.
GAMCO
Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
It
is virtually impossible to determine the ultimate impact of COVID-19 at this time. Accordingly, an investment in the Fund is subject
to an elevated degree of risk as compared to other market environments.
Leverage
Risk.
The
Fund currently uses financial leverage for investment purposes by issuing preferred shares. As of December 31, 2017, the amount
of leverage represented approximately 11% of the Fund’s net assets. The Fund’s leveraged capital structure creates
special risks not associated with unleveraged funds that have a similar investment objective and policies. These include the possibility
of greater loss and the likelihood of higher volatility of the net asset value of the Fund and the asset coverage for the preferred
shares. Such volatility may increase the likelihood of the Fund having to sell investments in order to meet its obligations to
make distributions on the preferred shares or principal or interest payments on debt securities, or to redeem preferred shares
or repay debt, when it may be disadvantageous to do so. The use of leverage magnifies both the favorable and unfavorable effects
of price movements in the investments made by the Fund. To the extent the Fund is leveraged in its investment operations, the
Fund will be subject to substantial risk of loss. The Fund cannot assure that borrowings or the issuance of preferred shares will
result in a higher yield or return to the holders of the common shares. Also, since the Fund is utilizing leverage, a decline
in net asset value could affect the ability of the Fund to make common share distributions and such a failure to make distributions
could result in the Fund ceasing to qualify as a RIC under the Internal Revenue Code of 1986, as amended (the “Code”).
Any
decline in the net asset value of the Fund’s investments would be borne entirely by the holders of common shares. Therefore,
if the market value of the Fund’s portfolio declines, the leverage will result in a greater decrease in net asset value
to the holders of common shares than if the Fund were not leveraged. This greater net asset value decrease will also tend to cause
a greater decline in the market price for the common shares. In such a case, the Fund might be in danger of failing to maintain
the required asset coverage of its borrowings or preferred shares or of losing its ratings on its borrowings or preferred shares
or, in an extreme case, the Fund’s current investment income might not be sufficient to meet the interest or dividend requirements
on its borrowings or preferred shares. In order to counteract such an event, the Fund might need to liquidate investments in order
to fund a redemption of some or all of the preferred shares.
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Preferred
Share Risk. The issuance of preferred shares causes the net asset value and market
value of the common shares to become more volatile. If the dividend rate on the preferred
shares approaches the net rate of return on the Fund’s investment portfolio, the
benefit of leverage to the holders of the common shares would be reduced. If the dividend
rate on the preferred shares plus the management fee annual rate of 1.00% exceeds the
net rate of return on the Fund’s portfolio, the leverage will result in a lower
rate of return to the holders of common shares than if the Fund had not issued preferred
shares. If the Fund has insufficient investment income and gains, all or a portion of
the distributions to preferred shareholders would come from the common shareholders’
capital. Such distributions reduce the net assets attributable to common shareholders
since the liquidation value of the preferred shareholders is constant.
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In
addition, the Fund would pay (and the holders of common shares will bear) all costs and expenses relating to the issuance and
ongoing maintenance of the preferred shares, including the advisory fees on the incremental assets attributable to such shares.
Holders
of preferred shares may have different interests than holders of common shares and may at times have disproportionate influence
over the Fund’s affairs. Holders of preferred shares, voting separately as a single class, would have the right to elect
two members of the Board of Trustees at all times and in the event dividends become two full years in arrears would have the right
to elect a majority of the Trustees until such arrearage is completely eliminated. In addition, preferred shareholders have class
voting rights on certain matters, including changes in fundamental investment restrictions and conversion of the fund to open-end
status, and accordingly can veto any such changes.
Restrictions
imposed on the declarations and payment of dividends or other distributions to the holders of the Fund’s common shares and
preferred shares, both by the 1940 Act and by requirements imposed by rating agencies, might impair the Fund’s ability to
maintain its qualification as a RIC for federal income tax purposes. While the Fund intends to redeem its preferred shares to
the extent necessary to enable the Fund to distribute its income as required to maintain its qualification as a regulated investment
company under the Code, there can be no assurance that such actions can be effected in time to meet the Code requirements.
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Portfolio
Guidelines of Rating Agencies for Preferred Shares and/or Credit Facility. In order
to obtain and maintain attractive credit quality ratings for preferred shares or borrowings,
the Fund must comply with investment quality, diversification and other guidelines established
by the relevant rating agencies. These guidelines could affect portfolio decisions and
may be more stringent than those imposed by the 1940 Act. In the event that a rating
on the Fund’s preferred shares is lowered or withdrawn by the relevant rating agency,
the Fund may also be required to redeem all or part of its outstanding preferred shares,
and the common shares of the Fund will lose the potential benefits associated with a
leveraged capital structure.
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HCommon
share total return is composed of two elements — the common share distributions paid by the Fund (the amount of which is
largely determined by the taxable income of the Fund (including realized gains or losses) after paying interest on any debt and/or
dividends
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Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
on
any preferred shares) and unrealized gains or losses on the value of the securities the Fund owns. As required by SEC rules, the
table assumes that the Fund is more likely to suffer capital losses than to enjoy total return. For example, to assume a total
return of 0% the Fund must assume that the income it receives on its investments is entirely offset by expenses and losses in
the value of those investments..
Market
Discount Risk. As described below in “Market Discount Risk,” common shares of closed-end funds often trade at
a discount to their net asset values and the Fund’s common shares may trade at such a discount. This risk may be greater
for investors expecting to sell their common shares of the Fund soon after completion of a public offering. The common shares
of the Fund are designed primarily for long term investors and investors in the shares should not view the Fund as a vehicle for
trading purposes.
Foreign
Securities Risk
Because
many of the world’s Gold Companies and Natural Resources Companies are located outside of the United States, the Fund may
have a significant portion of its investments in securities that are traded in foreign markets and that are not subject to the
requirements of the U.S. securities laws, markets and accounting requirements (“Foreign Securities”). Investments
in the securities of foreign issuers involve certain considerations and risks not ordinarily associated with investments in securities
of domestic issuers and such securities may be more volatile than those of issuers located in the United States. Foreign companies
are not generally subject to uniform accounting, auditing and financial standards and requirements comparable to those applicable
to U.S. companies. The governments of certain countries may prohibit or impose substantial restrictions on foreign investments
in their capital markets or in certain industries, and there may be greater levels of price volatility in foreign markets. Foreign
securities exchanges, brokers and listed companies may be subject to less government supervision and regulation than exists in
the United States. Dividend and interest income may be subject to withholding and other foreign taxes, which may adversely affect
the net return on such investments. There may be difficulty in obtaining or enforcing a court judgment abroad, and it may be difficult
to effect repatriation of capital invested in certain countries. With respect to certain countries, there are risks of expropriation,
confiscatory taxation, political or social instability or diplomatic developments that could affect assets of the Fund held in
foreign countries. The dividend income the Fund receives from foreign securities may not be eligible for the special tax treatment
applicable to qualified dividend income. Moreover, certain equity investments in foreign issuers classified as passive foreign
investment companies may be subject to additional taxation risk.
There
may be less publicly available information about a foreign company than a U.S. company. Foreign Securities markets may have substantially
less volume than U.S. securities markets and some foreign company securities are less liquid than securities of otherwise comparable
U.S. companies. A portfolio of Foreign Securities may also be adversely affected by fluctuations in the rates of exchange between
the currencies of different nations and by exchange control regulations. Foreign markets also have different clearance and settlement
procedures that could cause the Fund to encounter difficulties in purchasing and selling securities on such markets and may result
in the Fund missing attractive investment opportunities or experiencing loss. In addition, a portfolio that includes Foreign Securities
can expect to have a higher expense ratio because of the increased transaction costs on non-U.S. securities markets and the increased
costs of maintaining the custody of Foreign Securities.
Investments
in Foreign Securities will expose the Fund to the direct or indirect consequences of political, social or economic changes in
the countries that issue the securities or in which the issuers are located. Certain countries in which the Fund may invest have
historically experienced, and may continue to experience, high rates of inflation, high interest rates, exchange rate fluctuations,
large amounts of external debt, balance of payments and trade difficulties and extreme poverty and unemployment. Many of these
countries are also characterized by political uncertainty and instability. The cost of servicing external debt will generally
be adversely affected by rising international interest rates because many external debt obligations bear interest at rates which
are adjusted based upon international interest rates.
The
Fund also may purchase sponsored ADRs or U.S. dollar-denominated securities of foreign issuers. ADRs are receipts issued by U.S.
banks or trust companies in respect of securities of foreign issuers held on deposit for use in the U.S. securities markets. While
ADRs may not necessarily be denominated in the same currency as the securities into which they may be converted, many of the risks
associated with Foreign Securities may also apply to ADRs. In addition, the underlying issuers of certain depositary receipts,
particularly unsponsored or unregistered depositary receipts, are under no obligation to distribute shareholder communications
to the holders of such receipts, or to pass through to them any voting rights with respect to the deposited securities.
EMU
and Redenomination Risk
As
the European debt crisis progressed, the possibility of one or more Eurozone countries exiting the European Monetary Union (“EMU”),
or even the collapse of the Euro as a common currency arose, creating significant volatility at times in currency and financial
markets. The effects of the collapse of the Euro or the exit of one or more countries from the EMU, on the U.S. and global economies
and securities markets are impossible to predict and any such events could have a significant adverse impact on the value and
risk profile of the Fund’s portfolio. Any partial or complete dissolution of the EMU could have significant adverse effects
on currency and financial markets, and on the values of the Fund’s portfolio investments. If one or more EMU countries were
to stop using the Euro as its primary currency, the Fund’s investments in such countries may be redenominated into a different
or newly adopted currency. As a result, the value of those
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Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
investments
could decline significantly and unpredictably. In addition, securities or other investments that are redenominated may be subject
to foreign currency risk, liquidity risk and valuation risk to a greater extent than similar investments currently denominated
in Euros. To the extent a currency used for redenomination purposes is not specified in respect of certain EMU-related investments,
or should the Euro cease to be used entirely, the currency in which such investments are denominated may be unclear, making such
investments particularly difficult to value or dispose of. The Fund may incur additional expenses to the extent it is required
to seek judicial or other clarification of the denomination or value of such securities.
Eurozone
Risk
A
number of countries in the EU have experienced, and may continue to experience, severe economic and financial difficulties. In
particular, many EU nations are susceptible to economic risks associated with high levels of debt, notably due to investments
in sovereign debt of countries such as Greece, Italy, Spain, Portugal, and Ireland. As a result, financial markets in the EU have
been subject to increased volatility and declines in asset values and liquidity. Responses to these financial problems by European
governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and
may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments
and others of their debt could have additional adverse effects on economies, financial markets, and asset valuations around the
world. Greece, Ireland, and Portugal have already received one or more “bailouts” from other Eurozone member states,
and it is unclear how much additional funding they will require or if additional Eurozone member states will require bailouts
in the future. One or more other countries may also abandon the euro and/or withdraw from the EU, placing its currency and banking
system in jeopardy. The impact of these actions, especially if they occur in a disorderly fashion, is not clear, but could be
significant and far-reaching.
On
March 29, 2017, the United Kingdom (the “UK”) notified the European Council, in accordance with Article 50(2) of the
Treaty on European Union (“Article 50”), of the UK’s intention to withdraw from the European Union (the “EU”).
In issuing the notice, the UK has begun the two year process set out in Article 50 for the UK and the EU to negotiate the terms
of the UK’s withdrawal from the EU, taking into account the framework for the UK’s future relationship with the EU.
In accordance with Article 50 the UK will cease to be a member of the EU from March 30, 2019, absent any agreement between the
UK and the EU which results in a change to this date. This historic event is widely expected to have consequences that are both
profound and uncertain for the economic and political future of the United Kingdom and the EU, and those consequences include
significant legal and business uncertainties pertaining to an investment in the Fund. Due to the very recent occurrence of these
events, the full scope and nature of the consequences are not at this time known and are unlikely to be known for a significant
period of time. At the same time, it is reasonable to assume that the significant uncertainty in the business, legal and political
environment engendered by these events has resulted in immediate and longer term risks that would not have been applicable had
the UK not sought to withdraw from the EU (“BREXIT Risks”).
BREXIT
Risks include short and long term market volatility and currency volatility, macroeconomic risk to the UK and European economies,
impetus for further disintegration of the EU and related political stresses (including those related to sentiment against cross
border capital movements and activities of investors like the Fund), prejudice to financial services businesses that are conducting
business in the EU and which are based in the UK, disruption to regulatory regimes related to the operations of the Fund and the
Investment Adviser, legal uncertainty regarding achievement of compliance with applicable financial and commercial laws and regulations
in view of the expected steps to be taken pursuant to or in contemplation of Article 50 and negotiations undertaken under Article
218 of the Treaty on the Functioning of the European Union, and the unavailability of timely information as to expected legal,
tax and other regimes.
In
view of these risks and their application to the Investment Adviser and the Fund’s portfolio, prospective investors should
take into account the significance of the BREXIT Risks, including the wide ranging and serious nature of these risks, and retain
advice as needed, for purposes of evaluating an investment in the Fund. There can be no assurance that the BREXIT Risks will not
alter, and alter significantly, the attractiveness of an investment in the Fund by, among other things, giving rise to impediments
to the intended implementation of the business strategy of the Fund that would have material effects on performance, including
the potential for capital losses, delays, legal and regulatory risk and general uncertainty.
Emerging
Markets Risk
The
Fund may invest without limit in securities of issuers whose primary operations or principal trading market are located in an
“emerging market.” An “emerging market” country is any country that is considered to be an emerging or
developing country by the World Bank. Investing in securities of companies in emerging markets may entail special risks relating
to potential political and economic instability and the risks of expropriation, nationalization, confiscation or the imposition
of restrictions on foreign investment, the lack of hedging instruments and restrictions on repatriation of capital invested. Emerging
securities markets are substantially smaller, less developed, less liquid and more volatile than the major securities markets.
The limited size of emerging securities markets and limited trading value compared to the volume of trading in U.S. securities
could cause prices to be erratic for reasons apart from factors that affect the quality of the securities. For example, limited
market size may cause prices to be unduly influenced by traders who control large positions. Adverse publicity and investors’
perceptions, whether or not based on fundamental analysis, may decrease the value and liquidity of portfolio securities, especially
in these markets. Other risks include high concentration of market capitalization and trading volume in a small number
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Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
of
issuers representing a limited number of industries, as well as a high concentration of investors and financial intermediaries;
overdependence on exports, including gold and natural resources exports, making these economies vulnerable to changes in commodity
prices; overburdened infrastructure and obsolete or unseasoned financial systems; environmental problems; less developed legal
systems; and less reliable securities custodial services and settlement practices.
Foreign
Currency Risk
The
Fund expects to invest in companies whose securities are denominated or quoted in currencies other than U.S. dollars or have significant
operations or markets outside of the United States. In such instances, the Fund will be exposed to currency risk, including the
risk of fluctuations in the exchange rate between U.S. dollars (in which the Fund’s shares are denominated) and such foreign
currencies, the risk of currency devaluations and the risks of non-exchangeability and blockage. As non-U.S. securities may be
purchased with and payable in currencies of countries other than the U.S. dollar, the value of these assets measured in U.S. dollars
may be affected favorably or unfavorably by changes in currency rates and exchange control regulations. Fluctuations in currency
rates may adversely affect the ability of the Investment Adviser to acquire such securities at advantageous prices and may also
adversely affect the performance of such assets.
Certain
non-U.S. currencies, primarily in developing countries, have been devalued in the past and might face devaluation in the future.
Currency devaluations generally have a significant and adverse impact on the devaluing country’s economy in the short and
intermediate term and on the financial condition and results of companies’ operations in that country. Currency devaluations
may also be accompanied by significant declines in the values and liquidity of equity and debt securities of affected governmental
and private sector entities generally. To the extent that affected companies have obligations denominated in currencies other
than the devalued currency, those companies may also have difficulty in meeting those obligations under such circumstances, which
in turn could have an adverse effect upon the value of the Fund’s investments in such companies. There can be no assurance
that current or future developments with respect to foreign currency devaluations will not impair the Fund’s investment
flexibility, its ability to achieve its investment objectives or the value of certain of its foreign currency denominated investments.
Tax
Consequences of Foreign Investing
The
Fund’s transactions in foreign currencies, foreign currency-denominated debt obligations and certain foreign currency options,
futures contracts and forward contracts (and similar instruments) may give rise to ordinary income or loss to the extent such
income or loss results from fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease
the Fund’s ordinary income distributions to you, and may cause some or all of the Fund’s previously distributed income
to be classified as a return of capital. In certain cases, the Fund may make an election to treat gain or loss attributable to
certain investments as capital gain or loss.
Market
Discount Risk
Whether
investors will realize gains or losses upon the sale of common shares of the Fund will depend upon the market price of the shares
at the time of sale, which may be less or more than the Fund’s net asset value per share. Since the market price of the
common shares will be affected by such factors as the Fund’s dividend and distribution levels (which are in turn affected
by expenses), dividend and distribution stability, net asset value, market liquidity, the relative demand for and supply of the
shares in the market, general market and economic conditions and other factors beyond the control of the Fund, we cannot predict
whether the common shares will trade at, below or above net asset value or at, below or above the public offering price. Common
shares of closed-end funds often trade at a discount to their net asset values and the Fund’s common shares may trade at
such a discount. This risk may be greater for investors expecting to sell their common shares of the Fund soon after completion
of the public offering. The common shares of the Fund are designed primarily for long term investors, and investors in the shares
should not view the Fund as a vehicle for trading purposes.
Common
Stock Risk
Common
stock of an issuer in the Fund’s portfolio may decline in price for a variety of reasons, including if the issuer fails
to make anticipated dividend payments because the issuer of the security experiences a decline in its financial condition. Common
stock in which the Fund invests is structurally subordinated as to income and residual value to preferred stock, bonds and other
debt instruments in a company’s capital structure, in terms of priority to corporate income, and therefore will be subject
to greater dividend risk than preferred stock or debt instruments of such issuers. In addition, while common stock has historically
generated higher average returns than fixed income securities, common stock has also experienced significantly more volatility
in generating those returns.
Convertible
Securities Risk
Convertible
securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. The market values
of convertible securities tend to decline as interest rates increase and, conversely, to increase as interest rates decline. In
the absence of adequate anti-dilution provisions in a convertible security, dilution in the value of the Fund’s holding
may occur in the event the underlying stock is subdivided, additional equity securities are issued for below market value, a stock
dividend is declared or the issuer enters into another type of corporate transaction that has a similar effect.
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Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
Income
Risk
The
income shareholders receive from the Fund is expected to be based primarily on income the Fund earns from its investment strategy
of writing covered calls and dividends and other distributions received from its investments. If the Fund’s covered call
strategy fails to generate sufficient income or the distribution rates or yields of the Fund’s holdings decrease, shareholders’
income from the Fund could decline.
Distribution
Risk for Equity Income Portfolio Securities
In
selecting equity income securities in which the Fund will invest, the Investment Adviser will consider the issuer’s history
of making regular periodic distributions (i.e., dividends) to its equity holders. An issuer’s history of paying dividends
or other distributions, however, does not guarantee that the issuer will continue to pay dividends or other distributions in the
future. The dividend income stream associated with equity income securities generally is not guaranteed and will be subordinate
to payment obligations of the issuer on its debt and other liabilities. Accordingly, an issuer may forgo paying dividends on its
equity securities. In addition, because in most instances issuers are not obligated to make periodic distributions to the holders
of their equity securities, such distributions or dividends generally may be discontinued at the issuer’s discretion.
Special
Risks Related to Preferred Securities
There
are special risks associated with investing in preferred securities, including:
Deferral.
Preferred securities may include provisions that permit the issuer, at its discretion, to defer distributions for a stated
period without any adverse consequences to the issuer. If the Fund owns a preferred security on which distributions are being
deferred by the issuer, the Fund may be required to report income for tax purposes although it has not yet received such deferred
distributions.
Non-Cumulative
Dividends. Some preferred stocks are non-cumulative, meaning that the dividends do not accumulate and need not ever be paid.
A portion of the portfolio may include investments in non-cumulative preferred securities, whereby the issuer does not have an
obligation to make up any arrearages to its shareholders. Should an issuer of a non-cumulative preferred stock held by the Fund
determine not to pay dividends on such stock, the Fund’s return from that security may be adversely affected. There is no
assurance that dividends or distributions on non-cumulative preferred stocks in which the Fund invests will be declared or otherwise
made payable.
Subordination.
Preferred securities are subordinated to bonds and other debt instruments in a company’s capital structure in terms
of priority to corporate income and liquidation payments, and therefore will be subject to greater credit risk than more senior
debt security instruments.
Liquidity.
Preferred securities may be substantially less liquid than many other securities, such as common stocks or U.S. Government securities.
Limited
Voting Rights. Generally, preferred security holders (such as the Fund) have no voting rights with respect to the issuing
company unless preferred dividends have been in arrears for a specified number of periods, at which time the preferred security
holders may be entitled to elect a number of Trustees to the issuer’s board. Generally, once all the arrearages have been
paid, the preferred security holders no longer have voting rights.
Special
Redemption Rights. In certain varying circumstances, an issuer of preferred securities may redeem the securities prior to
a specified date. For instance, for certain types of preferred securities, a redemption may be triggered by a change in federal
income tax or securities laws. As with call provisions, a redemption by the issuer may negatively impact the return of the security
held by the Fund.
Interest
Rate Risk
Rising
interest rates may adversely affect the financial performance of Gold Companies and Natural Resources Companies by increasing
their costs of capital. This may reduce their ability to execute acquisitions or expansion projects in a cost-effective manner.
The risks associated with rising interest rates are heightened given the historically low interest rate environment as of the
date of this report. The Federal Reserve has begun to raise the Federal Funds rate, and each increase results in more pronounced
interest rate risk in the current market environment. During periods of declining interest rates, the issuer of a preferred stock
or fixed income security may be able to exercise an option to prepay principal earlier than scheduled, forcing the Fund to reinvest
in lower yielding securities. This is known as call or prepayment risk. Preferred stock and debt securities frequently have call
features that allow the issuer to redeem the securities prior to their stated maturities. An issuer may redeem such a security
if the issuer can refinance it at a lower cost due to declining interest rates or an improvement in the credit standing of the
issuer. During periods of rising interest rates, the average life of certain types of securities may be extended because of slower
than expected principal payments. This may prolong the length of time the security pays a below market interest rate, increase
the security’s duration and reduce the value of the security. This is known as extension risk.
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Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
Inflation
Risk
Inflation
risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the
value of money. As inflation increases, the real value of the Fund’s shares and distributions therefore may decline. In
addition, during any periods of rising inflation, dividend rates of any debt securities issued by the Fund would likely increase,
which would tend to further reduce returns to common shareholders.
Deflation
Risk
Deflation
risk is the risk that prices throughout the economy decline over time, which may have an adverse effect on the market valuation
of companies, their assets and their revenues. In addition, deflation may have an adverse effect on the creditworthiness of issuers
and may make issuer default more likely, which may result in a decline in the value of the Fund’s portfolio.
Illiquid
Investments Risk
Although
the Fund expects that its portfolio will primarily be comprised of liquid securities, the Fund may invest up to 15% of its assets
in unregistered securities and otherwise illiquid investments. Unregistered securities are securities that cannot be sold publicly
in the United States without registration under the Securities Act of 1933. An illiquid investment is a security or other investment
that cannot be disposed of within seven days in the ordinary course of business at approximately the value at which the Fund has
valued the investment. Unregistered securities often can be resold only in privately negotiated transactions with a limited number
of purchasers or in a public offering registered under the Securities Act of 1933. Considerable delay could be encountered in
either event and, unless otherwise contractually provided for, the Fund’s proceeds upon sale may be reduced by the costs
of registration or underwriting discounts. The difficulties and delays associated with such transactions could result in the Fund’s
inability to realize a favorable price upon disposition of unregistered securities, and at times might make disposition of such
securities impossible. In addition, the Fund may be unable to sell other illiquid investments when it desires to do so, resulting
in the Fund obtaining a lower price or being required to retain the investment. Illiquid investments generally must be valued
at fair value, which is inherently less precise than utilizing market values for it desires to do so, resulting in the Fund obtaining
a lower price or being required to retain the investment. liquid investments, and may lead to differences between the price at
which a security is valued for determining the Fund’s net asset value and the price the Fund actually receives upon sale.
Investment
Companies
The
Fund may invest in the securities of other investment companies, including exchange traded funds, to the extent permitted by law.
To the extent the Fund invests in the common equity of investment companies, the Fund will bear its ratable share of any such
investment company’s expenses, including management fees. The Fund will also remain obligated to pay management fees to
the Investment Adviser with respect to the assets invested in the securities of other investment companies. In these circumstances
holders of the Fund’s common shares will be in effect subject to duplicative investment expenses.
Special
Risks of Derivative Transactions
The
Fund may participate in derivative transactions. Such transactions entail certain execution, market, liquidity, hedging and tax
risks. Participation in the options or futures markets, in currency exchange transactions and in other derivatives transactions
involves investment risks and transaction costs to which the Fund would not be subject absent the use of these strategies. If
the Investment Adviser’s prediction of movements in the direction of the securities, foreign currency, interest rate or
other referenced instruments or markets is inaccurate, the consequences to the Fund may leave the Fund in a worse position than
if it had not used such strategies. Risks inherent in the use of options, foreign currency, futures contracts and options on futures
contracts, securities indices and foreign currencies include:
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dependence
on the Investment Adviser’s ability to predict correctly movements in the direction
of the relevant measure;
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imperfect
correlation between the price of the derivative instrument and movements in the prices
of the referenced assets;
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the
fact that skills needed to use these strategies are different from those needed to select
portfolio securities;
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the
possible absence of a liquid secondary market for any particular instrument at any time;
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the
possible need to defer closing out certain hedged positions to avoid adverse tax consequences;
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the
possible inability of the Fund to purchase or sell a security or instrument at a time
that otherwise would be favorable for it to do so, or the possible need for the Fund
to sell a security or instrument at a disadvantageous time due to a need for the Fund
to maintain “cover” or to segregate securities in connection with the hedging
techniques; and
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the
creditworthiness of counterparties.
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Options,
futures contracts, swaps contracts, and options thereon and forward contracts on securities and currencies may be traded on foreign
exchanges. Such transactions may not be regulated as effectively as similar transactions in the United States, may not involve
a
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Additional Fund Information (Continued) (Unaudited)
clearing
mechanism and related guarantees, and are subject to the risk of governmental actions affecting trading in, or the prices of,
foreign securities. The value of such positions also could be adversely affected by (i) other complex foreign political, legal
and economic factors, (ii) lesser availability than in the United States of data on which to make trading decisions, (iii) delays
in the ability of the Fund to act upon economic events occurring in the foreign markets during non-business hours in the United
States, (iv) the imposition of different exercise and settlement terms and procedures and margin requirements than in the United
States, and (v) less trading volume. Exchanges on which options, futures, swaps and options on futures or swaps are traded may
impose limits on the positions that the Fund may take in certain circumstances.
Many
OTC derivatives are valued on the basis of dealers’ pricing of these instruments. However, the price at which dealers value
a particular derivative and the price which the same dealers would actually be willing to pay for such derivative should the Fund
wish or be forced to sell such position may be materially different. Such differences can result in an overstatement of the Fund’s
net asset value and may materially adversely affect the Fund in situations in which the Fund is required to sell derivative instruments.
Exchange traded derivatives and OTC derivative transactions submitted for clearing through a central counterparty have become
subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as possible margin requirements
mandated by the SEC or the Commodity Futures Trading Commission (the “CFTC”). These regulators also have broad discretion
to impose margin requirements on non-cleared OTC derivatives. These margin requirements will increase the overall costs for the
Fund.
While
hedging can reduce or eliminate losses, it can also reduce or eliminate gains. Hedges are sometimes subject to imperfect matching
between the derivative and the underlying security, and there can be no assurance that the Fund’s hedging transactions will
be effective.
Derivatives
may give rise to a form of leverage and may expose the Fund to greater risk and increase its costs. Recent legislation calls for
new regulation of the derivatives markets. The extent and impact of the regulation is not yet known and may not be known for some
time. New regulation may make derivatives more costly, may limit the availability of derivatives, or may otherwise adversely affect
the value or performance of derivatives.
Forward
Foreign Currency Exchange Contracts. There is no independent limit on the Fund’s ability to invest in foreign currency
exchange contracts. The use of forward currency contracts may involve certain risks, including the failure of the counterparty
to perform its obligations under the contract and that the use of forward contracts may not serve as a complete hedge because
of an imperfect correlation between movements in the prices of the contracts and the prices of the currencies hedged or used for
cover.
Counterparty
Risk. The Fund will be subject to credit risk with respect to the counterparties to the derivative contracts purchased by
the Fund. If a counterparty becomes bankrupt or otherwise fails to perform its obligations under a derivative contract due to
financial difficulties, the Fund may experience significant delays in obtaining any recovery under the derivative contract in
bankruptcy or other reorganization proceeding. The Fund may obtain only a limited recovery or may obtain no recovery in such circumstances.
For
a further description of the risks associated with the Fund’s derivative transactions, see “Investment Objectives
and Policies—Additional Risks Relating to Derivative Instruments” in the SAI.
Non-Investment
Grade Securities
The
Fund may invest in securities rated below investment grade by recognized statistical rating agencies or unrated securities of
comparable quality. The prices of these lower grade securities are more sensitive to negative developments, such as a decline
in the issuer’s revenues or a general economic downturn, than are the prices of higher grade securities. Securities of below
investment grade quality—those securities rated below “Baa” by Moody’s or below “BBB” by
S&P (or unrated securities of comparable quality) — are predominantly speculative with respect to the issuer’s
capacity to pay interest and repay principal when due and therefore involve a greater risk of default. Securities rated below
investment grade commonly are referred to as “junk bonds” or “high yield” securities and generally pay
a premium above the yields of U.S. government securities or securities of investment grade issuers because they are subject to
greater risks than these securities. These risks, which reflect their speculative character, include the following:
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greater
credit risk and risk of default;
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potentially
greater sensitivity to general economic or industry conditions;
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potential
lack of attractive resale opportunities (illiquidity); and
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additional
expenses to seek recovery from issuers who default.
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In
addition, the prices of these lower grade securities are more sensitive to negative developments, such as a decline in the issuer’s
revenues or a general economic downturn, than are the prices of higher grade securities. Lower grade securities tend to be less
liquid than investment grade securities. The market value of lower grade securities may be more volatile than the market value
of investment
GAMCO
Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
grade
securities and generally tends to reflect the market’s perception of the creditworthiness of the issuer and short term market
developments to a greater extent than investment grade securities, which primarily reflect fluctuations in general levels of interest
rates.
Ratings
are relative, subjective, and not absolute standards of quality. Securities ratings are based largely on the issuer’s historical
financial condition and the rating agencies’ analysis at the time of rating. Consequently, the rating assigned to any particular
security is not necessarily a reflection of the issuer’s current financial condition.
The
Fund may purchase securities of companies that are experiencing significant financial or business difficulties, including companies
involved in bankruptcy or other reorganization and liquidation proceedings. Although such investments may result in significant
financial returns to the Fund, they involve a substantial degree of risk. The level of analytical sophistication, both financial
and legal, necessary for successful investments in issuers experiencing significant business and financial difficulties is unusually
high. There can be no assurance that the Fund will correctly evaluate the value of the assets collateralizing its investments
or the prospects for a successful reorganization or similar action. In any reorganization or liquidation proceeding relating to
a portfolio investment, the Fund may lose all or part of its investment or may be required to accept collateral with a value less
than the amount of the Fund’s initial investment.
As
a part of its investments in lower grade securities, the Fund may invest in securities of issuers in default. The Fund will invest
in securities of issuers in default only when the Investment Adviser believes that such issuers will honor their obligations,
emerge from bankruptcy protection and the value of these securities will appreciate. By investing in the securities of issuers
in default, the Fund bears the risk that these issuers will not continue to honor their obligations or emerge from bankruptcy
protection or that the value of these securities will not otherwise appreciate.
In
addition to using statistical rating agencies and other sources, the Investment Adviser will also perform its own analysis of
issuers in seeking investments that it believes to be underrated (and thus higher yielding) in light of the financial condition
of the issuer. Its analysis of issuers may include, among other things, current and anticipated cash flow and borrowing requirements,
value of assets in relation to historical cost, strength of management, responsiveness to business conditions, credit standing
and current anticipated results of operations. In selecting investments for the Fund, the Investment Adviser may also consider
general business conditions, anticipated changes in interest rates and the outlook for specific industries.
Subsequent
to its purchase by the Fund, an issue of securities may cease to be rated or its rating may be reduced. In addition, it is possible
that statistical rating agencies might change their ratings of a particular issue to reflect subsequent events on a timely basis.
Moreover, such ratings do not assess the risk of a decline in market value. None of these events will require the sale of the
securities by the Fund, although the Investment Adviser will consider these events in determining whether the Fund should continue
to hold the securities.
Fixed
income securities, including non-investment grade securities and comparable unrated securities, frequently have call or buy-back
features that permit their issuers to call or repurchase the securities from their holders, such as the Fund. If an issuer exercises
these rights during periods of declining interest rates, the Fund may have to replace the security with a lower yielding security,
thus resulting in a decreased return for the Fund.
The
market for non-investment grade and comparable unrated securities has at various times, particularly during times of economic
recession, experienced substantial reductions in market value and liquidity. Past recessions have adversely affected the value
of such securities as well as the ability of certain issuers of such securities to repay principal and pay interest thereon or
to refinance such securities. The market for those securities could react in a similar fashion in the event of any future economic
recession.
Dependence
on Key Personnel
The
Investment Adviser is dependent upon the expertise of Mr. Mario J. Gabelli. If the Investment Adviser were to lose the services
of Mr. Gabelli, it could be adversely affected. There can be no assurance that a suitable replacement could be found for Mr. Gabelli
in the event of his death, resignation, retirement or inability to act on behalf of the Investment Adviser.
The
Fund is dependent upon the expertise of Vincent Hugonnard-Roche as the sole option strategist on the Fund’s portfolio management
team. If the Fund were to lose the services of Mr. Roche, it could be temporarily adversely affected until a suitable replacement
could be found.
Long
Term Objective; Not a Complete Investment Program
The
Fund is intended for investors seeking a high level of current income. The Fund is not meant to provide a vehicle for those who
wish to exploit short term swings in the stock market. An investment in shares of the Fund should not be considered a complete
investment program. Each shareholder should take into account the Fund’s investment objectives as well as the shareholder’s
other investments when considering an investment in the Fund.
GAMCO
Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
Management
Risk
The
Fund is subject to management risk because its portfolio will be actively managed. The Investment Adviser will apply investment
techniques and risk analyses in making investment decisions for the Fund, but there can be no guarantee that these will produce
the desired results.
Non-Diversified
Status
The
Fund is classified as a “non-diversified” investment company under the 1940 Act, which means the Fund is not limited
by the 1940 Act in the proportion of its assets that may be invested in the securities of a single issuer. As a non-diversified
investment company, the Fund may invest in the securities of individual issuers to a greater degree than a diversified investment
company. As a result, the Fund may be more vulnerable to events affecting a single issuer and therefore, subject to greater volatility
than a fund that is more broadly diversified. Accordingly, an investment in the Fund may present greater risk to an investor than
an investment in a diversified company.
Market
Disruption and Geopolitical Risk
Events
of recent years, such as the aftermath of the war in Iraq, instability in Afghanistan, Pakistan, Egypt, Libya, Syria, Russia,
Ukraine and the Middle East, ongoing epidemics of infectious diseases in certain parts of the world, terrorist attacks in the
U.S. and around the world, social and political discord, debt crises (such as the Greek crisis), sovereign debt downgrades, continued
tensions between North Korea and the United States and the international community generally, new and continued political unrest
in various countries, such as Venezuela, the exit or potential exit of one or more countries from the European Union (“EU”)
or the European Monetary Union (“EMU”), the change in the U.S. president and the new administration, among others,
may result in market volatility, may have long term effects on the United States and worldwide financial markets, and may cause
further economic uncertainties in the United States and worldwide.
As
a consequence of the United Kingdom’s vote to withdraw from the EU, the government of the United Kingdom gave notice of
its withdrawal from the EU (“BREXIT”). As a result of this decision, the financial markets experienced high levels
of volatility and it is likely that, in the near term, BREXIT will continue to bring about higher levels of uncertainty and volatility.
During this period of uncertainty, the negative impact on not only the United Kingdom and European economies, but the broader
global economy, could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth
for companies that rely significantly on Europe for their business activities and revenues. It is possible that certain economic
activity will be curtailed until some signs of clarity begin to emerge, including negotiations around the terms for United Kingdom’s
exit out of the EU. Any further exits from the EU, or the possibility of such exits, would likely cause additional market disruption
globally and introduce new legal and regulatory uncertainties.
The
value and risk profile of the Fund’s portfolio could be adversely impacted by the events above. The Fund does not know how
long the securities markets may be affected by similar events and cannot predict the effects of similar events in the future on
the U.S. economy and securities markets. There can be no assurance that similar events and other market disruptions will not have
other material and adverse implications.
Economic
Events and Market Risk
Periods
of market volatility remain, and may continue to occur in the future, in response to various political, social and economic events
both within and outside of the United States. These conditions have resulted in, and in many cases continue to result in, greater
price volatility, less liquidity, widening credit spreads and a lack of price transparency, with many securities remaining illiquid
and of uncertain value. Such market conditions may adversely affect the Fund, including by making valuation of some of the Fund’s
securities uncertain and/or result in sudden and significant valuation increases or declines in the Fund’s holdings. If
there is a significant decline in the value of the Fund’s portfolio, this may impact the asset coverage levels for the Fund’s
outstanding leverage.
Risks
resulting from any future debt or other economic crisis could also have a detrimental impact on the global economic recovery,
the financial condition of financial institutions and our business, financial condition and results of operation. Market and economic
disruptions have affected, and may in the future affect, consumer confidence levels and spending, personal bankruptcy rates, levels
of incurrence and default on consumer debt and home prices, among other factors. To the extent uncertainty regarding the U.S.
or global economy negatively impacts consumer confidence and consumer credit factors, our business, financial condition and results
of operations could be significantly and adversely affected. Downgrades to the credit ratings of major banks could result in increased
borrowing costs for such banks and negatively affect the broader economy. Moreover, Federal Reserve policy, including with respect
to certain interest rates, may also adversely affect the value, volatility and liquidity of dividend- and interest-paying securities.
Market volatility, rising interest rates and/or a return to unfavorable economic conditions could impair the Fund’s ability
to achieve its investment objective.
Government
Intervention in Financial Markets Risk
Past
instability in the financial markets has led the U.S. government and certain foreign governments to take a number of unprecedented
actions designed to support certain financial institutions and segments of the financial markets that have experienced extreme
volatility,
GAMCO
Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
and
in some cases a lack of liquidity, including through direct purchases of equity and debt securities. The U.S. government and certain
foreign governments and their regulatory agencies or self-regulatory organizations have in the past taken, and may in the future
take, legislative and regulatory actions that may affect the Fund, its securities and/or the Fund’s investments in ways
that are unforeseeable. Such legislation or regulation may change the way in which the Fund is regulated and could limit or preclude
the Fund’s ability to achieve its investment objective.
The
Dodd-Frank Act, signed into law by President Obama on July 21, 2010, contains sweeping financial legislation regarding the operation
of banks, private fund managers and other financial institutions. The Dodd-Frank Act includes provisions regarding, among other
things, the regulation of derivatives (see the SAI for more information), the identification, monitoring and prophylactic regulation
of systemic risks to financial markets, and the regulation of proprietary trading and investment activity of banking institutions.
The continuing implementation of the Dodd-Frank Act and any other regulations could adversely affect the Investment Adviser and
the Fund. The Investment Adviser may attempt to take certain actions to lessen the impact of the Dodd-Frank Act and any other
legislation or regulation affecting the Fund, although no assurance can be given that such actions would be successful and no
assurance can be given that such actions would not have a significant negative impact on the Fund. The ultimate impact of the
Dodd-Frank Act, and any additional future legislation or regulation, is not yet certain and the Investment Adviser and the Fund
may be affected by governmental action in ways that are unforeseeable.
Additionally,
the SEC and its staff are also reportedly engaged in various initiatives and reviews that seek to improve and modernize the regulatory
structure governing investment companies. These efforts appear to be focused on risk identification and controls in various areas,
including imbedded leverage through the use of derivatives and other trading practices, cybersecurity, liquidity, enhanced regulatory
and public reporting requirements and the evaluation of systemic risks. Any new rules, guidance or regulatory initiatives resulting
from these efforts could increase the Fund’s expenses and impact its returns to shareholders or, in the extreme case, impact
or limit the Fund’s use of various portfolio management strategies or techniques and adversely impact the Fund.
The
Trump administration has called for substantial changes to U.S. fiscal and tax policies. In addition, the Trump administration
has called for, and in certain instances has begun to implement, significant changes to U.S. trade, healthcare, immigration, foreign,
and government regulatory policy. In this regard, there is significant, uncertainty with respect to legislation, regulation and
government policy at the federal level, as well as the state and local levels. Recent events have created a climate of heightened
uncertainty and introduced new and difficult-to-quantify macroeconomic and political risks with potentially far reaching implications.
There has been a corresponding meaningful increase in the uncertainty surrounding interest rates, inflation, foreign exchange
rates, trade volumes and fiscal and monetary policy. To the extent the U.S. Congress or Trump administration implements changes
to U.S. policy, those changes may impact, among other things, the U.S. and global economy, international trade and relations,
unemployment, immigration, corporate taxes, healthcare, the U.S. regulatory environment, inflation and other areas. Some particular
areas identified as subject to potential change, amendment or repeal include the Dodd-Frank Act, including the Volcker Rule and
various swaps and derivatives regulations, credit risk retention requirements and the authorities of the Federal Reserve, the
Financial Stability Oversight Council and the SEC. Although we cannot predict the impact, if any, of these changes to our business,
they could adversely affect our business, financial condition, operating results and cash flows. Until we know what policy changes
are made and how those changes impact our business and the business of our competitors over the long term, we will not know if,
overall, we will benefit from them or be negatively affected by them.
In
addition, the recently enacted Tax Cuts and Jobs Act (the ‘‘Act’’) makes substantial changes to the Code.
Among those changes are a significant permanent reduction in the generally applicable corporate tax rate, changes in the taxation
of individuals and other non-corporate taxpayers that generally but not universally reduce their taxes on a temporary basis subject
to ‘‘sunset’’ provisions, the elimination or modification of various previously allowed deductions (including
substantial limitations on the deductibility of interest and, in the case of individuals, the deduction for personal state and
local taxes), certain additional limitations on the deduction of net operating losses, certain preferential rates of taxation
on certain dividends and certain business income derived by non-corporate taxpayers in comparison to other ordinary income recognized
by such taxpayers, and significant changes to the international tax rules. The effect of these, and the many other, changes made
in the Act is highly uncertain, both in terms of their direct effect on the taxation of an investment in our common or preferred
shares and their indirect effect on the value of our assets, our common or preferred shares or market conditions generally. Furthermore,
many of the provisions of the Act will require guidance through the issuance of Treasury regulations in order to assess their
effect. There may be a substantial delay before such regulations are promulgated, increasing the uncertainty as to the ultimate
effect of the statutory amendments on us. It is also likely that there will be technical corrections legislation proposed with
respect to the Act, the effect of which cannot be predicted and may be adverse to us or our shareholders.
1940
Act Regulation
The
Fund is a registered closed-end investment company and as such is subject to regulations under the 1940 Act. Generally speaking,
any contract or provision thereof that is made in violation of the 1940 Act or any rule or regulation thereunder, or the performance
of which involves violation of the 1940 Act or any rule or regulation thereunder, is unenforceable by either party unless a court
finds otherwise.
Legislation
Risk
GAMCO
Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
At
any time after the date of this report, legislation may be enacted that could negatively affect the assets of the Fund. Legislation
or regulation may change the way in which the Fund itself is regulated. The Investment Adviser cannot predict the effects of any
new governmental regulation that may be implemented and there can be no assurance that any new governmental regulation will not
adversely affect the Fund’s ability to achieve its investment objective.
Reliance
on Service Providers Risk
The
Fund must rely upon the performance of service providers to perform certain functions, which may include functions that are integral
to the Fund’s operations and financial performance. Failure by any service provider to carry out its obligations to the
Fund in accordance with the terms of its appointment, to exercise due care and skill or to perform its obligations to the Fund
at all as a result of insolvency, bankruptcy or other causes could have a material adverse effect on the Fund’s performance
and returns to shareholders. The termination of the Fund’s relationship with any service provider, or any delay in appointing
a replacement for such service provider, could materially disrupt the business of the Fund and could have a material adverse effect
on the Fund’s performance and returns to shareholders.
Cyber
Security Risk
The
Fund and its service providers are susceptible to cyber security risks that include, among other things, theft, unauthorized monitoring,
release, misuse, loss, destruction or corruption of confidential and highly restricted data; denial of service attacks; unauthorized
access to relevant systems, compromises to networks or devices that the Fund and its service providers use to service the Fund’s
operations; or operational disruption or failures in the physical infrastructure or operating systems that support the Fund and
its service providers. Cyber attacks against or security breakdowns of the Fund or its service providers may adversely impact
the Fund and its stockholders, potentially resulting in, among other things, financial losses; the inability of Fund stockholders
to transact business and the Fund to process transactions; inability to calculate the Fund’s NAV; violations of applicable
privacy and other laws; regulatory fines, penalties, reputational damage, reimbursement or other compensation costs; and/or additional
compliance costs. The Fund may incur additional costs for cyber security risk management and remediation purposes. In addition,
cyber security risks may also impact issuers of securities in which the Fund invests, which may cause the Fund’s investment
in such issuers to lose value. There can be no assurance that the Fund or its service providers will not suffer losses relating
to cyber attacks or other information security breaches in the future.
Misconduct
of Employees and of Service Providers Risk
Misconduct or misrepresentations by employees of the Investment Adviser or the Fund’s service providers could cause significant
losses to the Fund. Employee misconduct may include binding the Fund to transactions that exceed authorized limits or present
unacceptable risks and unauthorized trading activities, concealing unsuccessful trading activities (which, in any case, may result
in unknown and unmanaged risks or losses) or making misrepresentations regarding any of the foregoing. Losses could also result
from actions by the Fund’s service providers, including, without limitation, failing to recognize trades and misappropriating
assets. In addition, employees and service providers may improperly use or disclose confidential information, which could result
in litigation or serious financial harm, including limiting the Fund’s business prospects or future marketing activities.
Despite the Investment Adviser’s due diligence efforts, misconduct and intentional misrepresentations may be undetected
or not fully comprehended, thereby potentially undermining the Investment Adviser’s due diligence efforts. As a result,
no assurances can be given that the due diligence performed by the Investment Adviser will identify or prevent any such misconduct.
Portfolio
Turnover Risk
The
Fund’s annual portfolio turnover rate may vary greatly from year to year, as well as within a given year. Portfolio turnover
rate is not considered a limiting factor in the execution of investment decisions for the Fund. A higher portfolio turnover rate
results in correspondingly greater brokerage commissions and other transactional expenses that are borne by the Fund. High portfolio
turnover may result in an increased realization of net short term capital gains by the Fund which, when distributed to common
shareholders, will be taxable as ordinary income. Additionally, in a declining market, portfolio turnover may create realized
capital losses.
Tax
Risk
We
cannot assure you what percentage of the distributions paid on the Fund’s shares, if any, will consist of tax-advantaged
qualified dividend income or long term capital gains or what the tax rates on various types of income will be in future years.
Status
as a Regulated Investment Company
The
Fund has elected to qualify as a RIC under Subchapter M of the Code. Qualification requires, among other things, compliance by
the Fund with certain distribution requirements. Statutory limitations on distributions on the common shares if the Fund fails
to satisfy the 1940 Act’s asset coverage requirements could jeopardize the Fund’s ability to meet such distribution
requirements. To qualify and maintain its status as a RIC, the Fund must, among other things, derive in each taxable year at least
90% of its gross income from certain prescribed sources and distribute for each taxable year at least 90% of its “investment
company taxable income” (generally, ordinary income plus
GAMCO
Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
excess,
if any, of net short term capital gain over net long term capital loss). While the Fund presently intends to purchase or redeem
notes or preferred shares, if any, to the extent necessary in order to maintain compliance with such asset coverage requirements,
there can be no assurance that such actions can be effected in time to meet the Code requirements. If the Fund fails to qualify
as a RIC for any reason, it will be subject to U.S. federal income tax at regular corporate rates on all of its taxable income
and gains. The resulting corporate taxes would materially reduce the Fund’s net assets and the amount of cash available
for distribution to holders of the Units. For a more complete discussion of these and other U.S. federal income tax considerations,
see “Taxation” below.
Anti-Takeover
Provisions
The
Fund’s governing documents include provisions that could limit the ability of other entities or persons to acquire control
of the Fund or convert the Fund to an open-end fund. See “Anti-Takeover Provisions of the Fund’s Governing Documents.”
Investment
Restrictions
The
Fund has adopted certain investment limitations designed to limit investment risk and maintain portfolio diversification. These
limitations are fundamental and may not be changed without the approval of the holders of a majority, as defined in the 1940 Act,
of the outstanding shares and preferred shares, if any, voting together as a single class. See “Investment Restrictions”
in the SAI for a complete list of the fundamental investment policies of the Fund. Should the Fund decide to issue additional
series of preferred shares in the future, it may become subject to rating agency guidelines that are more limiting than its fundamental
investment restrictions in order to obtain and maintain a desired rating on its preferred shares.
Special
Risks to Holders of Preferred Shares
Illiquidity
Prior to Exchange Listing. In the event any additional series of preferred shares are issued and such shares are intended to be
listed on an exchange, prior application will have been made to list such shares on an exchange. However, during an initial period,
which is not expected to exceed 30 days after the date of its initial issuance of any preferred shares to be listed on an exchange,
such shares may not be listed. During such period, the underwriters in the offering may make a market in such shares, though they
will have no obligation to do so. Consequently, an investment in such shares may be illiquid during such period. Preferred shares
not intended to be listed on an exchange may be illiquid as long as they are outstanding.
Market
Price Fluctuation. Preferred shares may trade at a premium to or discount from liquidation preference for a variety of reasons,
including changes in interest rates and credit quality of the Fund.
Common
Share Repurchases. Repurchases of common shares by the Fund may reduce the net asset coverage of the preferred shares, which could
adversely affect their liquidity or market prices.
Common
Share Distribution Policy. In the event the Fund does not generate a total return from dividends and interest received and net
realized capital gains in an amount at least equal to its distributions for a given year, the Fund may return capital as part
of its distribution. This would decrease the asset coverage per share with respect to the Fund’s preferred shares, which
could adversely affect their liquidity or market prices.
For
the fiscal year ended December 31, 2017, the Fund made distributions of $0.60 per common share, approximately $0.5496 of which
constituted a return of capital. The composition of each distribution is estimated based on earnings as of the record date for
the distribution. The actual composition of each distribution may change based on the Fund’s investment activity through
the end of the calendar year.
Credit
Quality Ratings. The Fund may obtain credit quality ratings for its preferred shares; however, it is not required to do so and
may issue preferred shares without any rating. If rated, the Fund does not impose any minimum rating necessary to issue such preferred
shares. The Fund’s portfolio must satisfy overcollateralization tests established by the relevant rating agencies in order
to obtain and maintain attractive credit quality ratings for preferred shares, if desired. These tests are more difficult to satisfy
to the extent the Fund’s portfolio securities are of lower credit quality, longer maturity or not diversified by issuer
and industry.
These
guidelines could affect portfolio decisions and may be more stringent than those imposed by the 1940 Act. With respect to ratings
(if any) of the preferred shares, a rating by a ratings agency does not eliminate or necessarily mitigate the risks of investing
in our preferred shares, and a rating may not fully or accurately reflect all of the securities’ credit risks. A rating
does not address the liquidity or any other market risks of the securities being rated. A rating agency could downgrade the rating
of our preferred shares, which may make such securities less liquid in the secondary market. If a rating agency downgrades the
rating assigned to our preferred shares, we may alter our portfolio or redeem all or a portion of the preferred shares that are
then redeemable under certain circumstances.
Regulated
Investment Company Status Risk
Securities
issued by certain issuers in which the Fund invests which are or become pass-through entities (such as Canadian Royalty Trusts,
which may be grantor trusts for U.S. federal income tax purposes) may not produce “qualified” income for purposes
of determining the Fund’s compliance with the tax rules applicable to regulated investment companies. To the extent that
the Fund holds such securities
GAMCO
Global Gold, Natural Resources & Income Trust
Additional Fund Information (Continued) (Unaudited)
indirectly
through investments in a taxable subsidiary formed by the Fund, those securities may produce “qualified” income. However,
the net return to the Fund on such investments would be reduced to the extent that the subsidiary is subject to corporate income
taxes. The Fund shall monitor its investments with the objective of maintaining its continued qualification as a regulated investment
company. If for any taxable year the Fund does not qualify as a regulated investment company, all of its taxable income will be
subject to tax at regular corporate rates without any deduction for distributions to shareholders, and such distributions will
be taxable to the shareholders as ordinary dividends to the extent of the Fund’s current or accumulated earnings and profits.
AUTOMATIC
DIVIDEND REINVESTMENT AND VOLUNTARY CASH PURCHASE PLANS
Enrollment
in the Plan
It
is the policy of GAMCO Global Gold, Natural Resources & Income Trust to automatically reinvest dividends payable to common
shareholders. As a “registered” shareholder, you automatically become a participant in the Fund’s Automatic
Dividend Reinvestment Plan (the Plan). The Plan authorizes the Fund to credit shares of common stock to participants upon an income
dividend or a capital gains distribution regardless of whether the shares are trading at a discount or a premium to net asset
value. All distributions to shareholders whose shares are registered in their own names will be automatically reinvested pursuant
to the Plan in additional shares of the Fund. Plan participants may send their stock certificates to American Stock Transfer (AST)
to be held in their dividend reinvestment account. Registered shareholders wishing to receive their distribution in cash must
submit this request in writing to:
GAMCO
Global Gold, Natural Resources & Income Trust
c/o American Stock Transfer
6201 15th Avenue
Brooklyn, NY 11219
Shareholders
requesting this cash election must include the shareholder’s name and address as they appear on the share certificate. Shareholders
with additional questions regarding the Plan or requesting a copy of the terms of the Plan may contact AST at (888) 422-3262.
If
your shares are held in the name of a broker, bank, or nominee, you should contact such institution. If such institution is not
participating in the Plan, your account will be credited with a cash dividend. In order to participate in the Plan through such
institution, it may be necessary for you to have your shares taken out of “street name” and re-registered in your
own name. Once registered in your own name, your dividends will be automatically reinvested. Certain brokers participate in the
Plan. Shareholders holding shares in “street name” at participating institutions will have dividends automatically
reinvested. Shareholders wishing a cash dividend at such institution must contact their broker to make this change.
The
number of shares of common shares distributed to participants in the Plan in lieu of cash dividends is determined in the following
manner. Under the Plan, whenever the market price of the Fund’s common shares is equal to or exceeds net asset value at
the time shares are valued for purposes of determining the number of shares equivalent to the cash dividends or capital gains
distribution, participants are issued shares of common shares valued at the greater of (i) the net asset value as most recently
determined or (ii) 95% of the then current market price of the Fund’s common stock. The valuation date is the dividend or
distribution payment date or, if that date is not a New York Stock Exchange (NYSE) trading day, the next trading day. If the net
asset value of the common shares at the time of valuation exceeds the market price of the common shares, participants will receive
shares from the Fund valued at market price. If the Fund should declare a dividend or capital gains distribution payable only
in cash, AST will buy common stock in the open market, or on the NYSE or elsewhere, for the participants’ accounts, except
that AST will endeavor to terminate purchases in the open market and cause the Fund to issue shares at net asset value if, following
the commencement of such purchases, the market value of the common shares exceeds the then current net asset value. The automatic
reinvestment of dividends and capital gains distributions will not relieve participants of any income tax which may be payable
on such distributions. A participant in the Plan will be treated for federal income tax purposes as having received, on a dividend
payment date, a dividend or distribution in an amount equal to the cash the participant could have received instead of shares.
Voluntary
Cash Purchase Plan
The
Voluntary Cash Purchase Plan is yet another vehicle for our shareholders to increase their investment in the Fund. In order to
participate in the Voluntary Cash Purchase Plan, shareholders must have their shares registered in their own name.
Participants
in the Voluntary Cash Purchase Plan have the option of making additional cash payments to AST for investments in the Fund’s
shares at the then current market price. Shareholders may send an amount from $250 to $10,000. AST will use these funds to purchase
shares in the open market on or about the 1st and 15th of each month. AST will charge each shareholder who participates a pro
rata share of the brokerage commissions. Brokerage charges for such purchases are expected to be less than the usual brokerage
charge for such transactions. It is suggested that any voluntary cash payments be sent to American Stock Transfer, 6201 15th Avenue,
Brooklyn, NY 11219 such that AST receives such payments approximately 10 days before the 1st and 15th of the month. Funds not
GAMCO
Global Gold, Natural Resources & Income Trust
Additional
Fund Information (Continued) (Unaudited)
received
at least five days before the investment date shall be held for investment until the next purchase date. A payment may be withdrawn
without charge if notice is received by AST at least 48 hours before such payment is to be invested.
Shareholders
wishing to liquidate shares held at AST must do so in writing or by telephone. Please submit your request to the above mentioned
address or telephone number. Include in your request your name, address, and account number. The cost to liquidate shares is $1.00
per transaction as well as the brokerage commission incurred. Brokerage charges are expected to be less than the usual brokerage
charge for such transactions.
For
more information regarding the Dividend Reinvestment Plan and Voluntary Cash Purchase Plan, brochures are available by calling
(914) 921-5070 or by writing directly to the Fund.
The
Fund reserves the right to amend or terminate the Plan as applied to any voluntary cash payments made and any dividend or distribution
paid subsequent to written notice of the change sent to the members of the Plan at least 90 days before the record date for such
dividend or distribution. The Plan also may be amended or terminated by AST on at least 90 days written notice to participants
in the Plan.
Unresolved
Staff Comments
The
Fund does not believe that there are any material unresolved written comments, received 180 days or more before September 30,
2020 from the Staff of the SEC regarding any of the Fund’s periodic or current reports under the Securities Exchange Act
or the Investment Company Act, or its registration statement.
Financial
Highlights 2011-2015
|
|
|
Year
Ended December 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
Operating
Performance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset
value, beginning of year
|
|
$
|
7.35
|
|
|
$
|
9.94
|
|
|
$
|
13.26
|
|
|
$
|
14.70
|
|
|
$
|
18.25
|
|
|
Net investment income
|
|
|
0.02
|
|
|
|
0.03
|
|
|
|
0.07
|
|
|
|
0.11
|
|
|
|
0.11
|
|
|
Net realized and unrealized
loss on investments, securities sold short, swap contracts, written options, and foreign currency transactions
|
|
|
(1.15
|
)
|
|
|
(1.51
|
)
|
|
|
(1.89
|
)
|
|
|
(0.01
|
)
|
|
|
(2.00
|
)
|
|
Total from investment
operations
|
|
|
(1.13
|
)
|
|
|
(1.48
|
)
|
|
|
(1.82
|
)
|
|
|
0.10
|
|
|
|
(1.89
|
)
|
|
Distributions
to Preferred Shareholders: (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.00
|
)(b)
|
|
|
(0.02
|
)
|
|
|
(0.00
|
)(b)
|
|
|
(0.00
|
)(b)
|
|
|
(0.00
|
)(b)
|
|
Net realized gain
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.05
|
)
|
|
|
(0.07
|
)
|
|
|
(0.10
|
)
|
|
Return of capital
|
|
|
(0.04
|
)
|
|
|
(0.02
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total distributions to
preferred shareholders
|
|
|
(0.04
|
)
|
|
|
(0.04
|
)
|
|
|
(0.05
|
)
|
|
|
(0.07
|
)
|
|
|
(0.10
|
)
|
|
Net
increase/(decrease) in net assets attributable to common shareholders resulting from operations
|
|
|
(1.17
|
)
|
|
|
(1.52
|
)
|
|
|
(1.87
|
)
|
|
|
0.03
|
|
|
|
(1.99
|
)
|
|
Distributions
to Common Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
(0.06
|
)
|
|
|
(0.02
|
)
|
|
|
(0.09
|
)
|
|
Net realized gain
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.75
|
)
|
|
|
(1.36
|
)
|
|
|
(1.54
|
)
|
|
Return of capital
|
|
|
(0.82
|
)
|
|
|
(1.08
|
)
|
|
|
(0.63
|
)
|
|
|
(0.24
|
)
|
|
|
(0.05
|
)
|
|
Total distributions to
common shareholders
|
|
|
(0.84
|
)
|
|
|
(1.08
|
)
|
|
|
(1.44
|
)
|
|
|
(1.62
|
)
|
|
|
(1.68
|
)
|
|
Fund Share Transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in net asset
value from issuance of common shares
|
|
|
—
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.15
|
|
|
|
0.12
|
|
|
Increase in net asset
value from repurchase of common shares
|
|
|
0.00
|
(b)
|
|
|
—
|
|
|
|
0.00
|
(b)
|
|
|
—
|
|
|
|
—
|
|
|
Increase in net asset
value from repurchase of preferred shares and transaction fees
|
|
|
0.00
|
(b)
|
|
|
0.00
|
(b)
|
|
|
0.01
|
|
|
|
—
|
|
|
|
—
|
|
|
Offering costs for preferred
shares charged to paid-in capital
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.03
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Adjustments to offering costs for preferred shares
credited to paid-in capital
|
|
|
—
|
|
|
|
0.00
|
(b)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total Fund share transactions
|
|
|
0.00
|
(b)
|
|
|
0.01
|
|
|
|
(0.01
|
)
|
|
|
0.15
|
|
|
|
0.12
|
|
|
Net
Asset Value, End of Year
|
|
$
|
5.34
|
|
|
$
|
7.35
|
|
|
$
|
9.94
|
|
|
$
|
13.26
|
|
|
$
|
14.70
|
|
|
NAV total return †
|
|
|
(17.59
|
)%
|
|
|
(17.23
|
)%
|
|
|
(14.62
|
)%
|
|
|
1.36
|
%
|
|
|
(11.00
|
)%
|
|
Market value, end of year
|
|
$
|
4.75
|
|
|
$
|
7.00
|
|
|
$
|
9.02
|
|
|
$
|
12.80
|
|
|
$
|
14.11
|
|
|
Investment total return
††
|
|
|
(22.14
|
)%
|
|
|
(13.01
|
)%
|
|
|
(19.51
|
)%
|
|
|
1.82
|
%
|
|
|
(18.98
|
)%
|
GAMCO
Global Gold, Natural Resources & Income Trust
Additional
Fund Information (Continued) (Unaudited)
|
|
|
Year
Ended December 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
Ratios
to Average Net Assets and Supplemental Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets including liquidation value of preferred shares, end of year (in 000’s)
|
|
$
|
691,468
|
|
|
$
|
920,538
|
|
|
$
|
1,152,361
|
|
|
$
|
1,428,491
|
|
|
$
|
1,206,020
|
|
|
Net
assets attributable to common shares, end of year (in 000’s)
|
|
$
|
601,745
|
|
|
$
|
828,027
|
|
|
$
|
1,057,668
|
|
|
$
|
1,329,599
|
|
|
$
|
1,107,127
|
|
|
Ratio
of net investment income to average net assets attributable to common shares
|
|
|
0.30
|
%
|
|
|
0.21
|
%
|
|
|
0.59
|
%
|
|
|
0.33
|
%
|
|
|
0.16
|
%
|
|
Ratio
of operating expenses to average net assets attributable to common shares
|
|
|
1.29
|
%(c)
|
|
|
1.24
|
%
|
|
|
1.20
|
%
|
|
|
1.22
|
%
|
|
|
1.27
|
%
|
|
Ratio
of operating expenses to average net assets including liquidation value of preferred shares
|
|
|
1.15
|
%(c)
|
|
|
1.14
|
%
|
|
|
1.11
|
%
|
|
|
1.12
|
%
|
|
|
1.16
|
%
|
|
Portfolio
turnover rate
|
|
|
36.0
|
%
|
|
|
87.4
|
%
|
|
|
83.7
|
%
|
|
|
47.4
|
%
|
|
|
66.4
|
%
|
|
Preferred
Shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.000%
Series B Cumulative Preferred Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation
value, end of year (in 000’s)
|
|
$
|
89,724
|
|
|
$
|
92,512
|
|
|
$
|
94,693
|
|
|
|
—
|
|
|
|
—
|
|
|
Total
shares outstanding (in 000’s)
|
|
|
3,589
|
|
|
|
3,700
|
|
|
|
3,788
|
|
|
|
—
|
|
|
|
—
|
|
|
Liquidation
preference per share
|
|
$
|
25.00
|
|
|
$
|
25.00
|
|
|
$
|
25.00
|
|
|
|
—
|
|
|
|
—
|
|
|
Average
market value (d)
|
|
$
|
22.03
|
|
|
$
|
21.28
|
|
|
$
|
21.00
|
|
|
|
—
|
|
|
|
—
|
|
|
Asset
coverage per share
|
|
$
|
193
|
|
|
$
|
249
|
|
|
$
|
304
|
|
|
|
—
|
|
|
|
—
|
|
|
Asset
coverage
|
|
|
771
|
%
|
|
|
995
|
%
|
|
|
1,217
|
%
|
|
|
—
|
|
|
|
—
|
|
|
|
†
|
Based
on net asset value per share, adjusted for reinvestment of distributions at the net asset
value per share on the ex-dividend dates.
|
|
|
††
|
Based
on market value per share, adjusted for reinvestment of distributions at prices obtained
under the Fund’s dividend reinvestment plan.
|
|
|
(a)
|
Calculated
based on average common shares outstanding on the record dates throughout the years.
|
|
|
(b)
|
Amount
represents less than $0.005 per share.
|
|
|
(c)
|
The
Fund received credits from a designated broker who agreed to pay certain Fund operating
expenses. For the year ended December 31, 2015, there was no impact on the expense ratios.
|
|
|
(d)
|
Based
on weekly prices.
|
The
business and affairs of the Fund are managed under the direction of the Fund’s Board of Trustees. Information pertaining
to the Trustees and officers of the Fund is set forth below. The Fund’s Statement of Additional Information includes additional
information about the Fund’s Trustees and is available without charge, upon request, by calling 800-GABELLI (800-422-3554)
or by writing to GAMCO Global Gold, Natural Resources & Income Trust at One Corporate Center, Rye, NY 10580-1422.