|
|
|
|
|
|
Notes to Financial Statements (concluded)
|
IQ Advisors has entered into an Administration Agreement with Princeton Administrators, LLC (the “Administrator”). The Administration Agreement provides that IQ Advisors pays the Administrator a fee from its investment advisory fee at an annual rate equal to .12% of the average daily value of the Fund’s net assets plus borrowings for leverage and other investment purposes for the performance of administrative and other services necessary for the
operation of the Fund. There is no increase in the aggregate fees paid by the Fund for these services. The Administrator is an indirect, wholly owned subsidiary of BlackRock, Inc. (“BlackRock”). ML & Co. has a substantial financial interest in BlackRock.
Certain officers of the Fund are officers and/or directors of IQ Advisors and/or ML & Co. or their affiliates.
3. Investments:
There were no purchases or sales of long-term investments for the six months ended June 30, 2009.
Transactions in options written for the six months ended June 30, 2009 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call Options Written
|
|
Number of
Contracts
|
|
Premiums
Received
|
|
|
|
|
|
|
|
|
Outstanding call options written, beginning of period
|
|
|
5,500
|
|
$
|
116,325
|
|
|
Options expired
|
|
|
(5,500
|
)
|
|
(116,325
|
)
|
|
|
|
|
|
|
|
|
|
|
Outstanding call options written, end of period
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Put Options Written
|
|
Number of
Contracts
|
|
Premiums
Received
|
|
|
|
|
|
|
|
|
Outstanding put options written, beginning of period
|
|
|
—
|
|
|
—
|
|
|
Options written
|
|
|
5,500
|
|
$
|
11,688
|
|
|
Options expired
|
|
|
(5,500
|
)
|
|
(11,688
|
)
|
|
|
|
|
|
|
|
|
|
|
Outstanding put options written, end of period
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
4. Common Stock Transactions:
The Fund is authorized to issue 100,000,000 shares of capital stock, par value $.001 per share, all of which were initially classified as Common Stock. The Board of Directors is authorized, however, to classify and reclassify any unissued shares of Common Stock without approval of the holders of Common Stock.
Shares issued and outstanding during the six months June 30, 2009 and the year ended December 31, 2008 decreased by 329,977 and 347,344, respectively, as a result of a repurchase offer.
Subject to the approval of the Board of Directors, the Fund will make offers to repurchase its shares at annual (approximately 12-month) intervals. The shares tendered in the repurchase offer will be subject to a repurchase fee retained by the Fund to compensate the Fund for expenses directly related to the repurchase offer.
With regard to repurchase fees, IQ will reimburse the Fund for the cost of expenses paid in excess of 2% of the value of the shares that are repurchased.
5. Capital Loss Carryforward:
On December 31, 2008, the Fund had a net capital loss car-ryforward of $6,491,201, of which $3,235,195 expires in 2015 and $3,256,006 expires in 2016. This amount will be available to offset like amounts of any future taxable gains.
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|
|
|
|
|
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
JUNE 30, 2009
|
13
|
|
|
|
|
|
|
Fundamental Periodic Repurchase Policy
|
The Board of Directors approved a fundamental policy whereby the Fund would adopt an “interval fund” structure pursuant to Rule 23c-3 under the Investment Company Act of 1940, as amended, (“the 1940 Act”). As an interval fund, the Fund will make annual repurchase offers at net asset value (less repurchase fee not to exceed 2%) to all Fund stockholders. The percentage of outstanding shares that the Fund can repurchase in each offer will be
established by the Fund’s Board of Directors shortly before the commencement of each offer, and will be between 5% and 25% of the Fund’s then outstanding shares.
The Fund has adopted the following fundamental policy regarding periodic repurchases:
a) The Fund will make offers to repurchase its shares at annual (approximately 12-month) intervals pursuant to Rule 23c-3 under the 1940 Act (“Offers”). The Board of Directors may place such conditions and limitations on an Offer, as may be permitted under Rule 23c-3.
b) The repurchase request deadline for each Offer, by which the Fund must receive repurchase requests submitted by stockholders in response to the most recent Offer, will be determined by reference to the fourth quarterly rebalancing date of the current annual period for the currency investments (as described in the Fund’s prospectus); and will be the fourteenth day prior to such exercise date; provided, that in the event that such day is not a business day, the
repurchase request deadline will be the business day subsequent to the fourteenth day prior to the exercise date of the call spreads and written call options (the “Repurchase Request Deadline”).
c) The maximum number of days between a Repurchase Request Deadline and the next repurchase pricing date will be fourteen days; provided that if the fourteenth day after a Repurchase Request Deadline is not a business day, the repurchase pricing date shall be the next business day (the “Repurchase Pricing Date”).
d) Offers may be suspended or postponed under certain circumstances, as provided for in Rule 23c-3.
Under the terms of the Offer for the most recent annual period, the Fund offered to purchase up to 329,977 shares from stockholders at an amount per share equal to the Fund’s net asset value per share calculated as of the close of business of the New York Stock Exchange on Wednesday, April 29, 2009, ten business days after Wednesday, April 15, 2009, the Repurchase Request Deadline. As of April 29, 2009, 329,977 shares, or 5% of the Fund’s outstanding
shares, were repurchased by the Fund at $16.43 per share (subject to a repurchase fee of up to 0.55% of the net asset value per share); the Fund’s net asset value per share was determined as of 4:00 p.m. EST, Wednesday, April 29, 2009.
|
|
|
|
|
|
|
|
14
|
GLOBAL INCOME & CURRENCY FUND INC.
|
JUNE 30, 2009
|
|
|
|
|
|
|
Availability of Quarterly Schedule of Investments
|
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained
by calling 1-800-SEC-0330.
The Fund offers electronic delivery of communications to its stockholders. In order to receive this service, you must register your account and provide us with e-mail information. To sign up for this service, simply access this website at http://www.icsdelivery.com/live and follow the instructions.
When you visit this site, you will obtain a personal identification number (PIN). You will need this PIN should you wish to update your e-mail address, choose to discontinue this service and/or make any other changes to the service. This service is not available for certain retirement accounts at this time.
For more information regarding the Fund, please visit www.IQIAFunds.com or contact us at 1-877-449-4742.
|
|
|
|
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
JUNE 30, 2009
|
15
|
|
|
|
|
|
www.IQIAFunds.com
|
Global Income & Currency Fund Inc. seeks to achieve its investment objective by constructing and actively managing a portfolio of investments that provides long and short exposure to selected foreign currencies.
This report, including the financial information herein, is transmitted to stockholders of Global Income & Currency Fund Inc. for their information. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. Statements and other information herein are as dated and are subject to change.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge at www.IQIAFunds.com/proxyvoting.asp or upon request by calling toll-free 1-877-449-4742 or through the Securities and Exchange Commission’s website at http://www.sec.gov. Information about how the Fund voted proxies relating to securities held in the Fund’s portfolio during the most recent 12-month
period ended June 30 is available (1) at www.IQIAFunds.com/proxyvoting.asp; and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.
Global Income & Currency Fund Inc.
2 World Financial Center, 7th Floor
New York, NY 10281
|
Item 2 –
|
Code of Ethics – Not Applicable to this semi-annual report
|
|
|
|
|
Item 3 –
|
Audit Committee Financial Expert – Not Applicable to this semi-annual report
|
|
|
|
|
Item 4 –
|
Principal Accountant Fees and Services – Not Applicable to this semi-annual report
|
|
|
|
|
Item 5 –
|
Audit Committee of Listed Registrants – Not Applicable to this semi-annual report
|
|
|
|
|
Item 6 –
|
Investments
|
|
|
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
|
|
|
(b) Not Applicable since no such divestments occurred during the semi-annual period covered since the last report on Form N-CSR.
|
|
|
|
|
Item 7 –
|
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report
|
|
|
|
|
Item 8 –
|
Portfolio Managers of Closed-End Management Investment Companies – Not Applicable to this semi-annual report
|
|
|
|
|
Item 9 –
|
Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
|
|
Period
|
|
(a) Total Number of Shares Purchased
|
|
(b) Average Price Paid per Share
|
|
(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
(d) Maximum Number (or Approx. Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
|
|
January 1-31, 2009
|
|
|
|
|
|
|
|
|
|
February 1-28, 2009
|
|
|
|
|
|
|
|
|
|
March 1-31, 2009
|
|
|
|
|
|
|
|
|
|
Apri1 1-30, 2009
|
|
329,977
|
|
$16.43 per Share
1
|
|
329,977
2
|
|
0
|
|
May 1-31, 2009
|
|
|
|
|
|
|
|
|
|
June 1-30, 2009
|
|
|
|
|
|
|
|
|
|
Total:
|
|
329,977
|
|
$16.43 per Share
1
|
|
329,977
2
|
|
0
|
1
Subject to a repurchase fee of up to 0.55% of the net asset value per share.
2
On March 4, 2009, the repurchase offer was announced to repurchase up to 5% of outstanding shares. The expiration date of the offer was April 15, 2009. The registrant may conduct annual repurchases for between 5% and 25% of its outstanding shares pursuant to Rule 23c-3 under the Investment Company Act of 1940, as amended.
|
Item 10 –
|
Submission of Matters to a Vote of Security Holders – The registrant’s Nominating Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations that include biographical information and set forth
the qualifications of the proposed nominee to the registrant’s Secretary. There have been no material changes to these procedures.
|
|
|
|
|
Item 11 –
|
Controls and Procedures
|
|
|
|
|
11(a) –
|
The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date
within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
|
|
11(b) –
|
There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal
control over financial reporting.
|
|
|
|
|
Item 12 –
|
Exhibits attached hereto
|
|
|
|
|
12(a)(1) –
|
Code of Ethics – Not Applicable to this semi-annual report
|
|
|
|
|
12(a)(2) –
|
Certifications – Attached hereto
|
|
|
|
|
12(a)(3) –
|
Not Applicable
|
|
|
|
|
12(b) –
|
Certifications – Attached hereto
|
|
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
|
|
|
|
Global Income & Currency Fund Inc.
|
|
|
|
|
|
By:
|
/s/ Justin C. Ferri
|
|
|
|
|
Justin C. Ferri
|
|
|
|
Chief Executive Officer of
|
|
|
|
Global Income & Currency Fund Inc.
|
|
|
|
|
|
Date: August 20, 2009
|
|
|
|
|
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
|
|
|
|
|
By:
|
/s/ Justin C. Ferri
|
|
|
|
|
Justin C. Ferri
|
|
|
|
Chief Executive Officer (principal executive officer) of
|
|
|
|
Global Income & Currency Fund Inc.
|
|
|
|
|
|
Date: August 20, 2009
|
|
|
|
|
|
By:
|
/s/ James E. Hillman
|
|
|
|
|
James E. Hillman
|
|
|
|
Chief Financial Officer (principal financial officer) of
|
|
|
|
Global Income & Currency Fund Inc.
|
|
|
|
|
|
Date: August 20, 2009
|
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