UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21791
Name of Fund: Global Income & Currency Fund Inc. (GCF)
Fund Address: 4 World Financial Center,
6
th
Floor, New York, New York 10080.
Name and address of agent for service: Justin C. Ferri, Chief Executive Officer, Global
Income & Currency Fund Inc., 4 World Financial Center, 6
th
Floor, New York, New York 10080.
Registrants telephone number, including area code: (877) 449-4742
Date of fiscal year end: 12/31/2009
Date of
reporting period: 12/31/2009
Item 1 Report to Stockholders
Global Income
& Currency Fund Inc.
Annual Report
December 31, 2009
Investment Advisors
Fund Profile
as of December 31,
2009
|
|
|
Symbol on New York Stock Exchange (NYSE)
|
|
GCF
|
Initial Offering Date
|
|
April 28, 2006
|
Yield on Closing Market Price as of December 31, 2009 ($14.04)*
|
|
5.77%
|
Current Quarterly Distribution per share of Common Stock**
|
|
$0.2025
|
Current Annualized Distribution per share of Common Stock**
|
|
$0.81
|
|
*
|
|
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price as of December 31, 2009. Past performance does
not guarantee future results.
|
|
**
|
|
The distribution is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital at fiscal year end.
|
The table below summarizes the changes in the Funds market price and net asset value for the twelve-month period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/09
(a)
|
|
12/31/08
|
|
Change
(b)
|
|
|
High
|
|
Low
|
Market Price (c)
|
|
$
|
14.04
|
|
$
|
13.97
|
|
0.50
|
%
|
|
$
|
14.84
|
|
$
|
13.07
|
Net Asset Value
|
|
$
|
15.77
|
|
$
|
16.39
|
|
(3.78
|
%)
|
|
$
|
16.97
|
|
$
|
15.51
|
|
(a)
|
|
For the twelve-month period, the Common Stock of the Fund had a total investment return of 1.90% based on net asset value per share and 6.44% based on market price per
share, assuming reinvestment of distributions.
|
|
(b)
|
|
Does not include reinvestment of dividends.
|
|
(c)
|
|
Primary Exchange Price, NYSE.
|
|
|
|
|
Notional Exposure by Country
|
|
Percent of
Net Assets
|
|
United States
|
|
78.4
|
%
|
Turkey
|
|
13.4
|
|
Mexico
|
|
12.9
|
|
Poland
|
|
12.6
|
|
Brazil
|
|
12.5
|
|
South Africa
|
|
12.5
|
|
Australia
|
|
12.4
|
|
Colombia
|
|
(1.1
|
)
|
Chile
|
|
(11.7
|
)
|
Japan
|
|
(12.6
|
)
|
Taiwan
|
|
(12.6
|
)
|
|
|
This table denotes the notional exposure of Fund investments by country as a percentage of net assets of the Fund. For additional detail on the Funds holdings, please refer
to the Schedule of Investments section included in this report.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
|
DECEMBER 31, 2009
|
|
|
A Summary From Your Funds Portfolio Manager (unaudited)
We are pleased to provide you with this stockholder report for Global Income & Currency Fund Inc.
The Fund is advised by IQ Investment Advisors LLC and sub-advised by Nuveen Asset Management.
The investment objective of Global Income & Currency Fund Inc. (the Fund) is to provide current income while also seeking total returns. The Fund 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. There can be no assurance that the Fund will achieve its investment objective.
For the year ended December 31, 2009, the Fund had a total investment return as set forth in the table below, based on the change per share in net asset value of
$16.39 to $15.77. All of the Fund information presented includes the reinvestment of any dividends or distributions. Distribution information may be found in the Notes to Financial Statements, Note 5.
|
|
|
Period
|
|
|
Fiscal year ended December 31, 2009*
|
|
1.90%
|
Since inception (from 4/28/06) through December 31, 2009*
|
|
13.15%
|
*
|
|
Fund performance information is net of expenses.
|
For more detail with regard to the Funds total
investment return based on a change in the per share market value of the Funds Common Stock (as measured by the trading price of the Funds shares on the New York Stock Exchange), please refer to the Financial Highlights section of this
report.
As a closed-end fund, the Funds shares may trade in the secondary market at a premium or discount to the Funds net asset value. As
a result, total investment returns based on changes in the market value of the Funds Common Stock can vary significantly from total investment returns based on changes in the Funds net asset value.
Andrew Stenwall
Portfolio Manager
February 17, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
|
DECEMBER 31, 2009
|
|
3
|
Schedule of Investments
as of December 31, 2009
|
(Percentages shown are based on Net Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Securities
|
|
|
|
Face
Amount
|
|
Value
|
Colombia 7.5%
|
|
|
|
|
|
|
|
|
|
Foreign Commercial Paper**
|
|
|
|
|
|
|
|
Colombia Government International Bond,
11.75%, 3/01/10
|
|
COP
|
|
15,075,000,000
|
|
$
|
7,452,020
|
|
|
Total Short-Term Securities in Colombia
|
|
|
7,452,020
|
Turkey 15.1%
|
|
|
|
|
|
|
|
|
|
Foreign Commercial Paper**
|
|
|
|
|
|
|
|
Turkey Government Bond,
10.884%, 4/14/10
|
|
TRY
|
|
22,676,000
|
|
|
14,878,695
|
|
|
Total Short-Term Securities in Turkey
|
|
|
14,878,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Securities
|
|
Maturity
Date
|
|
Discount
Rate
|
|
|
|
|
Face
Amount
|
|
|
United States 78.3%
|
|
|
|
|
|
|
|
|
|
U.S. Government & Agency Obligations** 75.2%
|
|
|
|
|
|
|
|
|
|
Fannie Mae
|
|
12/01/10
|
|
0.39
|
%
|
|
USD
|
|
4,000,000
|
|
3,986,392
|
Federal Home Loan Banks
|
|
1/13/10
|
|
0.06
|
%
|
|
|
|
3,000,000
|
|
2,999,985
|
Federal Home Loan Banks
|
|
1/27/10
|
|
0.07
|
%
|
|
|
|
2,000,000
|
|
1,999,974
|
Federal Home Loan Banks
|
|
2/12/10
|
|
0.09
|
%
|
|
|
|
4,600,000
|
|
4,599,853
|
Federal Home Loan Banks
|
|
2/18/10
|
|
0.20
|
%
|
|
|
|
8,000,000
|
|
7,999,696
|
Federal Home Loan Banks
|
|
2/19/10
|
|
0.13
|
%
|
|
|
|
4,000,000
|
|
3,999,848
|
Federal Home Loan Banks
|
|
3/03/10
|
|
0.08
|
%
|
|
|
|
1,500,000
|
|
1,499,878
|
Federal Home Loan Banks
|
|
3/12/10
|
|
0.21
|
%
|
|
|
|
3,500,000
|
|
3,499,674
|
Federal Home Loan Banks
|
|
3/16/10
|
|
0.21
|
%
|
|
|
|
2,000,000
|
|
1,999,802
|
Federal Home Loan Banks
|
|
3/30/10
|
|
0.14
|
%
|
|
|
|
3,000,000
|
|
2,999,646
|
Federal Home Loan Banks
|
|
4/19/10
|
|
0.37
|
%
|
|
|
|
2,500,000
|
|
2,499,270
|
Federal Home Loan Banks
|
|
4/23/10
|
|
0.16
|
%
|
|
|
|
3,000,000
|
|
2,999,091
|
Federal Home Loan Banks
|
|
4/30/10
|
|
0.17
|
%
|
|
|
|
7,000,000
|
|
6,997,746
|
Federal Home Loan Banks
|
|
5/12/10
|
|
0.17
|
%
|
|
|
|
4,500,000
|
|
4,498,079
|
Federal Home Loan Banks
|
|
6/02/10
|
|
0.17
|
%
|
|
|
|
2,000,000
|
|
1,998,758
|
Federal Home Loan Banks
|
|
6/11/10
|
|
5.25
|
%
|
|
|
|
3,000,000
|
|
3,066,162
|
Federal Home Loan Banks
|
|
9/17/10
|
|
0.37
|
%
|
|
|
|
7,000,000
|
|
6,987,554
|
Federal Home Loan Banks
|
|
12/01/10
|
|
0.32
|
%
|
|
|
|
3,270,000
|
|
3,258,875
|
Freddie Mac
|
|
4/12/10
|
|
0.15
|
%
|
|
|
|
3,500,000
|
|
3,499,048
|
U.S. Treasury Bills
|
|
2/11/10
|
|
0.27
|
%
|
|
|
|
3,000,000
|
|
2,999,889
|
|
|
Total U.S. Government & Agency Obligations
|
|
74,389,220
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Securities
|
|
Shares
Held
|
|
Value
|
|
Mutual Funds 3.1%
|
|
|
|
|
|
|
AIM Short-Term Investment Trust Liquid Assets Portfolio Institutional Class, 0.12%
(a)
|
|
3,071,779
|
|
$
|
3,071,779
|
|
|
|
Total Short-Term Securities in the United States
|
|
|
|
|
77,460,999
|
|
|
|
Total Investments
(Net Cost $97,644,827*) 100.9%
|
|
|
99,791,714
|
|
|
|
Liabilities in Excess of Other Assets (0.9%)
|
|
|
(934,006
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets 100.0%
|
|
|
|
$
|
98,857,708
|
|
|
|
|
|
|
|
|
|
|
*
|
|
The cost and unrealized appreciation (depreciation) of investments as of December 31, 2009, as computed for federal income tax purposes, were as follows:
|
|
|
|
|
|
Aggregate cost
|
|
$
|
97,644,827
|
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
2,148,390
|
|
Gross unrealized depreciation
|
|
|
(1,503
|
)
|
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
2,146,887
|
|
|
|
|
|
|
**
|
|
Foreign Commercial Paper and certain U.S. Government & Agency Obligations are traded on a discount basis; the interest rates shown reflect the discount rates paid at the
time of purchase. Other securities bear interest at the rates shown payable at fixed dates or upon maturity. The interest rates shown are rates in effect at December 31, 2009.
|
(a)
|
|
Represents the current yield as of December 31, 2009.
|
See
Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
|
DECEMBER 31, 2009
|
|
|
Schedule of Investments (concluded)
Forward foreign exchange contracts as of December 31, 2009 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
Currency Purchased
|
|
Foreign
Currency Sold
|
|
Settlement
Date
|
|
Appreciation
(Depreciation)
|
|
CLP
|
|
7,174,440,000
|
|
USD
|
|
13,957,240
|
|
1/08/10
|
|
$
|
186,179
|
|
USD
|
|
13,000,000
|
|
CLP
|
|
7,174,440,000
|
|
1/08/10
|
|
|
(1,143,419
|
)
|
TRY
|
|
18,111,600
|
|
USD
|
|
12,000,000
|
|
1/25/10
|
|
|
82,420
|
|
USD
|
|
13,672,458
|
|
TRY
|
|
20,658,080
|
|
1/25/10
|
|
|
(108,743
|
)
|
USD
|
|
8,506,198
|
|
COP
|
|
16,812,500,000
|
|
1/29/10
|
|
|
294,965
|
|
BRL
|
|
21,605,976
|
|
USD
|
|
12,357,570
|
|
2/02/10
|
|
|
(36,539
|
)
|
PLN
|
|
34,180,725
|
|
USD
|
|
12,500,000
|
|
2/03/10
|
|
|
(590,367
|
)
|
USD
|
|
12,500,000
|
|
TWD
|
|
399,625,000
|
|
2/03/10
|
|
|
(155,572
|
)
|
MXN
|
|
164,093,580
|
|
USD
|
|
12,713,238
|
|
2/04/10
|
|
|
(221,538
|
)
|
USD
|
|
12,500,000
|
|
CLP
|
|
6,216,875,000
|
|
2/04/10
|
|
|
232,676
|
|
USD
|
|
12,500,000
|
|
JPY
|
|
1,155,962,500
|
|
2/05/10
|
|
|
85,988
|
|
AUD
|
|
13,500,000
|
|
USD
|
|
12,234,983
|
|
2/18/10
|
|
|
(168,725
|
)
|
ZAR
|
|
93,237,480
|
|
USD
|
|
12,315,732
|
|
2/18/10
|
|
|
201,192
|
|
Total Unrealized Depreciation on Forward Foreign Exchange Contracts Net
|
|
$
|
(1,341,483
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Various inputs are used in determining the fair value of investments, which are as follows:
|
|
Level 1 price quotations in active markets/exchanges for identical securities
|
|
|
Level 2 other observable inputs (including, but not limited to: quoted prices for identical or similar assets or liabilities in markets that are not
active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
|
|
|
Level 3 unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the
Funds own assumptions used in determining the fair value of investments)
|
The inputs or methodology used for valuing securities
are not necessarily an indication of the risk associated with investing in those securities. For information about the Funds policy regarding valuation of investments and other significant accounting policies, please refer to Note 1(a) of the
Notes to Financial Statements.
The following table summarizes the inputs used as of December 31, 2009 in determining the fair valuation of the
Funds investments:
|
|
|
|
|
|
|
|
|
|
|
|
Valuation
Inputs
|
|
Investments
in Securities
|
|
|
Other Financial
Instruments
1
|
|
|
|
Assets
|
|
|
Assets
|
|
Liabilities
|
|
Level 1
|
|
$
|
3,071,779
|
|
|
|
|
|
|
|
|
Level 2
|
|
|
96,719,935
|
2
|
|
$
|
1,083,420
|
|
$
|
(2,424,903
|
)
|
Level 3
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
99,791,714
|
|
|
$
|
1,083,420
|
|
$
|
(2,424,903
|
)
|
|
|
|
|
|
1
|
|
Other financial instruments are forward foreign exchange contracts.
|
2
|
|
See above Schedule of Investments for values in each country.
|
See Notes to Financial Statements.
Currency Abbreviations:
|
|
|
|
|
|
|
AUD
|
|
Australian Dollar
|
|
MXN
|
|
Mexican New Peso
|
BRL
|
|
Brazilian Real
|
|
PLN
|
|
Polish Zloty
|
CLP
|
|
Chilean Peso
|
|
TRY
|
|
Turkish Lira
|
COP
|
|
Colombian Peso
|
|
TWD
|
|
New Taiwan Dollar
|
JPY
|
|
Japanese Yen
|
|
USD
|
|
U.S. Dollar
|
|
|
|
|
ZAR
|
|
South African Rand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
|
DECEMBER 31, 2009
|
|
5
|
Statement of Assets, Liabilities and Capital
As of December 31, 2009
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
Investments in unaffiliated securities, at value (identified cost $97,644,827)
|
|
|
|
|
|
$
|
99,791,714
|
|
Unrealized appreciation on forward foreign exchange contracts
|
|
|
|
|
|
|
1,083,420
|
|
Foreign cash (cost $494)
|
|
|
|
|
|
|
504
|
|
Interest receivable
|
|
|
|
|
|
|
742,765
|
|
Prepaid expenses
|
|
|
|
|
|
|
12,169
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
|
101,630,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
Unrealized depreciation on forward foreign exchange contracts
|
|
|
|
|
|
|
2,424,903
|
|
Payables:
|
|
|
|
|
|
|
|
|
Dividends to stockholders
|
|
$
|
193,147
|
|
|
|
|
|
Investment advisory fees
|
|
|
83,185
|
|
|
|
276,332
|
|
|
|
|
|
|
|
|
|
|
Accrued expenses
|
|
|
|
|
|
|
71,629
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
2,772,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets:
|
|
|
|
|
|
|
Net assets
|
|
|
|
|
|
$
|
98,857,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital:
|
|
|
|
|
|
|
Common Stock, par value $.001 per share, 100,000,000 shares authorized
|
|
|
|
|
|
$
|
6,270
|
|
Paid-in capital in excess of par
|
|
|
|
|
|
|
105,799,718
|
|
Accumulated distributions in excess of investment income net
|
|
$
|
(2,090,119
|
)
|
|
|
|
|
Accumulated realized capital losses net
|
|
|
(5,677,996
|
)
|
|
|
|
|
Unrealized appreciation net
|
|
|
819,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total accumulated losses net
|
|
|
|
|
|
|
(6,948,280
|
)
|
|
|
|
|
|
|
|
|
|
Total capital
Equivalent to $15.77 per share based on 6,269,574 shares
of Common Stock outstanding (market price
$14.04)
|
|
|
|
|
|
$
|
98,857,708
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
|
DECEMBER 31, 2009
|
|
|
Statement of Operations
For the Year Ended December 31, 2009
|
|
|
|
|
|
|
|
|
Investment Income:
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
$
|
3,088,955
|
|
Dividends
|
|
|
|
|
|
|
7,849
|
|
|
|
|
|
|
|
|
|
|
Total income
|
|
|
|
|
|
|
3,096,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
Investment advisory fees
|
|
$
|
939,705
|
|
|
|
|
|
Professional fees
|
|
|
84,466
|
|
|
|
|
|
Directors fees and expenses
|
|
|
61,827
|
|
|
|
|
|
Custodian fees
|
|
|
41,713
|
|
|
|
|
|
Transfer agent fees
|
|
|
32,049
|
|
|
|
|
|
Repurchase offer
|
|
|
29,072
|
|
|
|
|
|
Accounting services
|
|
|
27,472
|
|
|
|
|
|
Printing and stockholder reports
|
|
|
25,199
|
|
|
|
|
|
Listing fees
|
|
|
23,750
|
|
|
|
|
|
Insurance
|
|
|
15,204
|
|
|
|
|
|
Other
|
|
|
11,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses
|
|
|
|
|
|
|
1,291,908
|
|
|
|
|
|
|
|
|
|
|
Investment income net
|
|
|
|
|
|
|
1,804,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized & Unrealized Gain (Loss) Net:
|
|
|
|
|
|
|
|
|
|
Realized gain (loss) on:
|
|
|
|
|
|
|
|
|
Investments net
|
|
|
(8,637,045
|
)
|
|
|
|
|
Options written net
|
|
|
128,013
|
|
|
|
|
|
Foreign currency transactions net
|
|
|
3,213,692
|
|
|
|
(5,295,340
|
)
|
|
|
|
|
|
|
|
|
|
Change in unrealized appreciation/depreciation on:
|
|
|
|
|
|
|
|
|
Investments net
|
|
|
6,113,634
|
|
|
|
|
|
Options written net
|
|
|
26,873
|
|
|
|
|
|
Foreign currency transactions net
|
|
|
(1,413,165
|
)
|
|
|
4,727,342
|
|
|
|
|
|
|
|
|
|
|
Total realized and unrealized loss net
|
|
|
|
|
|
|
(567,998
|
)
|
|
|
|
|
|
|
|
|
|
Net Increase in Net Assets Resulting from Operations
|
|
|
|
|
|
$
|
1,236,898
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
|
DECEMBER 31, 2009
|
|
7
|
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended
December 31,
|
|
|
|
2009
|
|
|
2008
|
|
Operations:
|
|
|
|
|
|
|
|
|
|
Investment income net
|
|
$
|
1,804,896
|
|
|
$
|
5,200,827
|
|
Realized loss net
|
|
|
(5,295,340
|
)
|
|
|
(5,406,358
|
)
|
Change in unrealized appreciation/depreciation net
|
|
|
4,727,342
|
|
|
|
(4,776,280
|
)
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations
|
|
|
1,236,898
|
|
|
|
(4,981,811
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends & Distributions to Stockholders:
|
|
|
|
|
|
|
|
|
|
Investment income net
|
|
|
|
|
|
|
(6,880,887
|
)
|
Tax return of capital
|
|
|
(5,145,167
|
)
|
|
|
(2,814,374
|
)
|
|
|
|
|
|
|
|
|
|
Net decrease in net assets resulting from dividends and distributions to stockholders
|
|
|
(5,145,167
|
)
|
|
|
(9,695,261
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Transactions:
|
|
|
|
|
|
|
|
|
|
Net redemption of Common Stock resulting from a repurchase offer (including $29,698 and $24,314 of repurchase fees,
respectively)
|
|
|
(5,391,824
|
)
|
|
|
(6,210,511
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets:
|
|
|
|
|
|
|
|
|
|
Total decrease in net assets
|
|
|
(9,300,093
|
)
|
|
|
(20,887,583
|
)
|
Beginning of year
|
|
|
108,157,801
|
|
|
|
129,045,384
|
|
|
|
|
|
|
|
|
|
|
End of year*
|
|
$
|
98,857,708
|
|
|
$
|
108,157,801
|
|
|
|
|
|
|
|
|
|
|
* Accumulated distributions in excess of investment income net
|
|
$
|
(2,090,119
|
)
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
|
DECEMBER 31, 2009
|
|
|
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following per share data and ratios have been derived
from information provided in the financial statements.
|
|
For the Year Ended
December 31,
|
|
|
For the Period
April 28,
2006
(a)
to
December 31,
2006
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Operating Performance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
|
$
|
16.39
|
|
|
$
|
18.58
|
|
|
$
|
19.09
|
|
|
$
|
19.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income net
(b)
|
|
|
.28
|
|
|
|
.78
|
|
|
|
1.16
|
|
|
|
.71
|
|
Realized and unrealized gain (loss) net
|
|
|
(.09
|
)
(c)
|
|
|
(1.52
|
)
(c)
|
|
|
.35
|
(c)
|
|
|
.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total from investment operations
|
|
|
.19
|
|
|
|
(.74
|
)
|
|
|
1.51
|
|
|
|
1.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less dividends and distributions from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income net
|
|
|
|
|
|
|
(1.03
|
)
|
|
|
(2.02
|
)
|
|
|
(.74
|
)
|
Realized gain net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(.21
|
)
|
Tax return of capital
|
|
|
(.81
|
)
|
|
|
(.42
|
)
|
|
|
|
|
|
|
(.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total dividends and distributions
|
|
|
(.81
|
)
|
|
|
(1.45
|
)
|
|
|
(2.02
|
)
|
|
|
(.98
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Offering costs resulting from the issuance of Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(.04
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period
|
|
$
|
15.77
|
|
|
$
|
16.39
|
|
|
$
|
18.58
|
|
|
$
|
19.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market price per share, end of period
|
|
$
|
14.04
|
|
|
$
|
13.97
|
|
|
$
|
17.55
|
|
|
$
|
18.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return:
(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on net asset value per share
|
|
|
1.90%
|
|
|
|
(3.06%
|
)
|
|
|
8.60%
|
|
|
|
5.48%
|
(e)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on market price per share
|
|
|
6.44%
|
|
|
|
(12.52%
|
)
|
|
|
8.49%
|
|
|
|
(4.76%
|
)
(e)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
1.22%
|
|
|
|
1.20%
|
|
|
|
1.16%
|
(f)
|
|
|
1.19%
|
(g)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income net
|
|
|
1.71%
|
|
|
|
4.35%
|
|
|
|
5.99%
|
|
|
|
5.45%
|
(g)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in thousands)
|
|
$
|
98,858
|
|
|
$
|
108,158
|
|
|
$
|
129,045
|
|
|
$
|
140,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover
(h)
|
|
|
0%
|
|
|
|
0%
|
|
|
|
0%
|
|
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Commencement of operations.
|
|
(b)
|
|
Based on average shares outstanding.
|
|
(c)
|
|
Includes repurchase offer fees, which are less than $.01 per share.
|
|
(d)
|
|
Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different
returns. Total investment returns exclude the effects of sales charges.
|
|
(e)
|
|
Aggregate total investment return.
|
|
(f)
|
|
In 2007, a reimbursement of expenses in the amount of $10,464 had no impact on expense ratios.
|
|
(h)
|
|
Portfolio turnover is calculated based upon long-term investments. All of the securities held in the portfolio have been classified as short-term investments
because the maturity dates at the time of acquisition were one year or less, and therefore, the portfolio turnover is zero.
|
See Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
|
DECEMBER 31, 2009
|
|
9
|
Notes to Financial Statements
1. Significant Accounting Policies:
Global Income
& Currency Fund Inc. (the Fund) is registered under the Investment Company Act of 1940, as amended, as a non-diversified, closed-end management investment company. The Funds financial statements are prepared in conformity with
U.S. generally accepted accounting principles (GAAP), which may require the use of management accruals and estimates. Actual results may differ from these estimates. The Fund determines and makes available for publication the net asset
value of its Common Stock on a daily basis. The Funds Common Stock Shares are listed on the New York Stock Exchange (NYSE) under the symbol GCF. The Fund determines and makes available for publication the net asset value of its
Common Stock on a daily basis.
Investing in the Fund involves certain risks and the Fund may not be able to achieve its intended results for a variety
of reasons, including, among others, the possibility that the Fund may not be able to structure derivative investments as defined below as anticipated. Because the value of your investment in the Fund will fluctuate, there is a risk that you will
lose money.
In July 2009, the Financial Accounting Standards Board (FASB) Accounting Standards Codification (Codification)
became the single official source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. Rules and interpretive releases of the
Securities & Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. These changes and the Codification itself do not change GAAP. Other than the manner in
which new accounting guidance is referenced, the adoption of these changes had no impact on the Fund´s financial statements.
The following is a
summary of significant accounting policies followed by the Fund.
(a) Valuation of investments Debt securities are traded primarily in the
over-the-counter (OTC) markets and are valued at the last available bid price in the OTC market or on the basis of values obtained by a pricing service. Pricing services use valuation matrixes that incorporate both dealer-supplied
valuations and valuation models. The procedures of the pricing service and its valuations are reviewed by the officers of the Fund under the general direction of the Board of Directors. Such valuations and procedures will be reviewed periodically by
the Board of Directors of the Fund. Short-term investments with a remaining maturity of 60 days or less are valued at amortized
cost which approximates market value, under which method the investment is valued at cost and any premium or discount is amortized on a straight line basis to maturity.
Generally, trading in foreign securities, as well as U.S. government securities, money market instruments and certain fixed income securities, is substantially
completed each day at various times prior to the close of business on the NYSE. The values of such securities used in computing the net asset value of the Funds shares are determined as of such times. Foreign currency exchange rates will
generally be determined as of the close of business on the NYSE. Occasionally, events affecting the values of such securities and such exchange rates may occur between the times at which they are determined and the close of business on the NYSE that
may not be reflected in the computation of the Funds net asset value. If events (for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to materially affect the value of such
securities, those securities may be valued at their fair value as determined in good faith by the Funds Board of Directors or by the investment adviser using a pricing service and/or procedures approved by the Funds Board of Directors.
(b) Foreign currency transactions Transactions denominated in foreign currencies are recorded at the exchange rate prevailing when recognized.
Assets and liabilities denominated in foreign currencies are valued at the exchange rate at the end of the period. Foreign currency transactions are the result of settling (realized) or valuing (unrealized) assets or liabilities expressed in foreign
currencies into U.S. dollars. Realized and unrealized gains or losses from investments include the effects of foreign exchange rates on investments. The Fund may invest in foreign securities, which may involve a number of risk factors and special
considerations not present with investments in securities of U.S. entities.
(c) Derivative financial instruments The Fund may engage in various
portfolio investment strategies to increase the return of the Fund. Losses may arise due to changes in the value of the contract resulting from an unfavorable price change in the underlying security or index, or if the counterparty does not perform
under the contract. The counterparty for certain instruments may pledge cash or securities as collateral.
The Fund utilizes derivatives to enhance
return and management has determined the use of derivative instruments is not designed to hedge security positions. The Funds use of derivatives involves risks different from, and possibly greater than, the risks associated with investing
directly in the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
|
DECEMBER 31, 2009
|
|
|
Notes to Financial Statements (continued)
investments underlying these derivatives. Derivatives may be volatile and involve significant risk, such as, among other things, credit risk, currency risk, leverage risk and liquidity risk. They
also involve the risk of mispricing or improper valuation and correlation risk (i.e., the risk that changes in the value of the derivative may not correlate perfectly, or to any degree, with the underlying asset, interest rate or index). Using
derivatives can disproportionately increase losses and reduce opportunities for gains when security prices, indices, currency rates or interest rates are changing in unexpected ways. The
Fund may suffer disproportionately heavy losses relative to the amount of its investments in derivative contracts.
Derivative instruments utilized by the Fund are defined below and delineated in the Statement of Assets, Liabilities and Capital and the Statement of Operations of the Fund. As the Fund utilized more than one type
of derivative in the period covered by this report, the following table summarizes the use of derivative investments in the current period:
Statement of Assets,
Liabilities and Capital as of December 31, 2009
|
|
|
|
|
|
|
|
|
|
|
Derivatives not accounted for as hedging
instruments
|
|
Assets
|
|
Amount
|
|
Liabilities
|
|
Amount
|
Currency Forward Exchange Contracts
|
|
Unrealized appreciation on forward foreign exchange contracts
|
|
$
|
1,083,420
|
|
Unrealized depreciation on forward foreign exchange contracts
|
|
$
|
2,424,903
|
Statement of Operations for the year ended December 31, 2009
|
|
|
|
|
|
|
|
|
Derivatives not accounted for as hedging instruments
|
|
Realized gain (loss)
|
|
|
Change in unrealized
appreciation (depreciation)
|
|
Purchased Currency Options
|
|
$
|
(232,375
|
)
|
|
$
|
48,400
|
|
Written Currency Options
|
|
$
|
128,013
|
|
|
$
|
26,873
|
|
Currency Forward Exchange Contracts
|
|
$
|
3,461,478
|
|
|
$
|
(1,424,904
|
)
|
|
|
Forward foreign exchange contracts The Fund will enter into forward foreign exchange contracts which include, but are not limited to, cash settled
currency forward contracts including non-deliverable currency forward contracts. The contracts are marked-to-market daily and any change in market value is recorded by the Fund as an unrealized gain or loss. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. To the extent necessary, certain debt securities will serve as collateral for the Funds currency
contracts.
|
|
|
Options The Fund will purchase and write call options. When the Fund writes an option, an amount equal to the premium received by the Fund is reflected as
an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. When a security is purchased or sold through an exercise of an option, the related premium
paid (or received) is added to (or deducted from) the basis of the security acquired or deducted from (or added to) the proceeds of the security sold. When an option expires (or the Fund enters into a closing transaction), the Fund realizes a gain
or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premium paid or received). When cash is
|
|
received as collateral for purchased options, the Fund may
|
|
pay interest to the option writer. Alternatively, the counterparty may pledge securities as collateral. Written and purchased options are non-income producing investments.
|
Writing (selling) covered call options subjects the Fund to certain additional risks. The Fund, by writing covered
call options, will forgo the opportunity to benefit from potential increases in the value of the equity investments above the exercise prices of the options, but will continue to bear the risk of declines in the value of the equity investments. The
premiums received from the options may not be sufficient to offset any losses sustained from the volatility of the equity securities over time.
The premium received from writing options and amounts available for distribution from the Funds options may decrease in declining interest rate environments. The value of the equity investments also may be influenced by changes in
interest rates. Higher yielding equity investments and those issuers whose businesses are substantially affected by changes in interest rates may be particularly sensitive to interest rate risk. A summary of option transactions is found in Note 3,
Investments.
(d) Income taxation It is the Funds policy to comply with the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute substantially all of its taxable income to its stockholders. Therefore, no federal income tax provision is required. Under the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
|
DECEMBER 31, 2009
|
|
11
|
Notes to Financial Statements (continued)
applicable foreign tax law, withholding taxes may be imposed on interest, dividends and capital gains at various rates.
Management has evaluated the tax status of the Fund, and has determined that taxes do not have a material impact on the Funds financial statements. The Fund files U.S. and various state tax returns. To the
best of the Funds knowledge, no income tax returns are currently under examination. All tax years of the Fund are open at this time.
(e) Security
transactions and investment income Security transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Dividend
income is recorded on the ex-dividend dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Fund has determined the ex-dividend date. Interest income is recognized on the accrual
basis. The Fund amortizes all premiums and discounts on debt securities.
(f) Dividends and distributions Dividends and distributions paid by the
Fund are recorded on the ex-dividend dates. Portions of the distributions paid by the Fund during the years ended December 31, 2009 and December 31, 2008 were characterized as a tax return of capital.
The distribution declared December 28, 2009, payable March 31, 2010 will be a 2010 taxable event to shareholders.
(g) Reclassifications Accounting principles generally accepted in the United States of America require that certain components of net assets be adjusted to
reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent difference as of December 31, 2009 attributable to foreign currency
transactions, net operating losses, and non-deductible expenses were reclassified to the following accounts:
|
|
|
|
|
Accumulated distributions in excess of net investment income
|
|
$
|
(3,895,015
|
)
|
Accumulated net realized capital losses
|
|
$
|
10,559,204
|
|
Paid-in capital in excess of par
|
|
$
|
(6,664,189
|
)
|
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory and Management Agreement with IQ Investment Advisors LLC (IQ Advisors), an indirect, wholly owned
subsidiary of Merrill Lynch & Co., Inc. (ML & Co.), which is a wholly owned subsidiary of Bank of America Corporation (Bank of America). IQ Advisors is responsible for the investment advisory, management and
administrative services
to the Fund. In addition, IQ Advisors provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Fund. For such services, the Fund pays
a monthly fee at an annual rate equal to .90% of the average daily value of the Funds net assets plus borrowings for leverage and other investment purposes.
IQ Advisors has entered into a Subadvisory Agreement with Nuveen Asset Management (NAM). Pursuant to the agreement, NAM provides certain investment advisory services to IQ Advisors with respect to the
Fund. For such services, IQ Advisors pays NAM a monthly fee at an annual rate equal to .40% of the average daily value of the Funds net assets plus borrowings for leverage and other investment purposes. There is no increase in aggregate fees
paid by the Fund for these services.
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 Funds 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, Bank of America and/or ML & Co. or their affiliates.
3. Investments:
There were no purchases or sales of long-term investments for the year ended December 31, 2009. Transactions in options for the year ended December 31,
2009 were as follows:
|
|
|
|
|
|
|
|
Put Options Purchased
|
|
Number of
Contracts
|
|
|
Premiums
Paid
|
|
Outstanding put options purchased, beginning of year
|
|
5,500
|
|
|
$
|
202,813
|
|
Options written
|
|
5,500
|
|
|
|
41,250
|
|
Options expired
|
|
(5,500
|
)
|
|
|
(202,813
|
)
|
Options closed
|
|
(5,500
|
)
|
|
|
(41,250
|
)
|
|
|
|
|
|
|
|
|
Outstanding put options purchased, end of year
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call Options Written
|
|
Number of
Contracts
|
|
|
Premiums
Received
|
|
Outstanding call options written, beginning of year
|
|
5,500
|
|
|
$
|
116,325
|
|
Options expired
|
|
(5,500
|
)
|
|
|
(116,325
|
)
|
|
|
|
|
|
|
|
|
Outstanding call options written, end of year
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
|
DECEMBER 31, 2009
|
|
|
Notes to Financial Statements (concluded)
|
|
|
|
|
|
|
|
Put Options Written
|
|
Number of
Contracts
|
|
|
Premiums
Received
|
|
Outstanding put options written, beginning of year
|
|
|
|
|
|
|
|
Options written
|
|
5,500
|
|
|
$
|
11,688
|
|
Options expired
|
|
(5,500
|
)
|
|
|
(11,688
|
)
|
|
|
|
|
|
|
|
|
Outstanding put options written, end of year
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
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 years ended December 31, 2009 and
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. Distributions to Stockholders:
The tax character of distributions paid during the fiscal years ended December 31, 2009 and December 31, 2008 was as follows:
|
|
|
|
|
|
|
|
|
12/31/2009
|
|
12/31/2008
|
Distributions paid from:
|
|
|
|
|
|
|
Ordinary income
|
|
|
|
|
$
|
6,880,887
|
Tax return of capital
|
|
$
|
5,145,167
|
|
|
2,814,374
|
|
|
|
|
|
|
|
Total distributions
|
|
$
|
5,145,167
|
|
$
|
9,695,261
|
|
|
|
|
|
|
|
As of December 31, 2009, the tax components of accumulated losses were as
follows:
|
|
|
|
|
Capital loss carryforward
|
|
$
|
(6,493,973
|
)*
|
Unrealized lossesnet
|
|
|
(454,307
|
)**
|
|
|
|
|
|
Total
|
|
$
|
(6,948,280
|
)
|
|
|
|
|
|
*
|
|
As of December 31, 2009, the Fund had a capital loss carryforward of $6,493,973, of which $3,235,195 expires in 2015, $3,256,006 expires in 2016 and $2,772 expires in 2017. This
amount is available to offset like amounts of any future taxable gains.
|
**
|
|
The difference between book-basis and tax-basis net unrealized losses is attributable primarily to the realization for tax purposes of unrealized gains (losses) on certain
foreign currency contracts and the deferral of post-October currency losses for tax purposes.
|
6. Subsequent Event:
Management has evaluated all subsequent transactions and events after the balance sheet date through February 26, 2010, the date on which these financial statements
were issued, and except as already included in the notes to these financial statements, has determined that no additional items require disclosure.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
|
DECEMBER 31, 2009
|
|
13
|
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders of Global Income & Currency Fund Inc.:
In our opinion, the accompanying statement of assets, liabilities and capital, including the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Global Income & Currency Fund Inc. (the Fund) at December 31, 2009, and the results of its operations,
the changes in its net assets and the financial highlights for the year ended December 31, 2009, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights
(hereafter referred to as financial statements) are the responsibility of the Funds management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial
statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at December 31, 2009 by
correspondence with the custodian and brokers, provides a reasonable basis for our opinion. The statement of changes in net assets for the year ended December 31, 2008 and the financial highlights for the two years ended December 31, 2008
and the period ended December 31, 2006 were audited by other independent auditors whose report, dated March 13, 2009, expressed an unqualified opinion on those statements.
PricewaterhouseCoopers LLP
New York, New York
February 26, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
|
DECEMBER 31, 2009
|
|
|
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 Investment Company 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 shareholders. The percentage of outstanding shares that the Fund can repurchase in each offer will be established by the Funds
Board of Directors shortly before the commencement of each offer, and will be between 5% and 25% of the Funds 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 Investment Company 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 shareholders 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 Funds 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
|
DECEMBER 31, 2009
|
|
15
|
Automatic Dividend Reinvestment Plan
How the Plan Works The Fund offers a Dividend Reinvestment Plan (the Plan) under which distributions paid by the Fund are automatically
reinvested in additional shares of Common Stock of the Fund. The Plan is administered on behalf of the shareholders by BNY Mellon Shareowner Services (the Plan Agent). Under the Plan, whenever the Fund declares a distribution,
participants in the Plan will receive the equivalent in shares of Common Stock of the Fund. The Plan Agent will acquire the shares for the participants account either (i) through receipt of additional unissued but authorized shares of the
Fund (newly issued shares) or (ii) by purchase of outstanding shares of Common Stock on the open market on the New York Stock Exchange or elsewhere. If, on the distribution payment date, the Funds net asset value per share is
equal to or less than the market price per share plus estimated brokerage commissions (a condition often referred to as a market premium), the Plan Agent will invest the distribution amount in newly issued shares. If the Funds net
asset value per share is greater than the market price per share (a condition often referred to as a market discount), the Plan Agent will invest the distribution amount by purchasing on the open market additional shares. If the Plan
Agent is unable to invest the full distribution amount in open market purchases, or if the market discount shifts to a market premium during the purchase period, the Plan Agent will invest any uninvested portion in newly issued shares. The shares
acquired are credited to each shareholders account. The amount credited is determined by dividing the dollar amount of the distribution by either (i) when the shares are newly issued, the net asset value per share on the date the shares
are issued or (ii) when shares are purchased in the open market, the average purchase price per share.
Participation in the Plan
Participation in the Plan is automatic, that is, a shareholder is automatically enrolled in the Plan when he or she purchases shares of Common Stock of the Fund unless the shareholder specifically elects not to participate in the Plan. Shareholders
who elect not to participate will receive all distributions in cash. Shareholders who do not wish to participate in the Plan must advise the Plan Agent in writing (at the address set forth below) that they elect not to participate in the Plan.
Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by writing to the Plan Agent.
Benefits of
the Plan The Plan provides an easy, convenient way for shareholders to make additional, regular investments in the Fund. The Plan promotes a long-term strategy of investing at a lower cost. All shares acquired pursuant to the Plan receive
voting rights. In addition, if the market price plus
commissions of the Funds shares is above the net asset value, participants in the Plan will receive shares of the Fund for less than they could otherwise purchase them and with a cash value
greater than the value of any cash distribution they would have received. However, there may not be enough shares available in the market to make distributions in shares at prices below the net asset value. Also, since the Fund does not redeem
shares, the price on resale may be more or less than the net asset value.
Plan Fees There are no enrollment fees or brokerage fees for
participating in the Plan. The Plan Agents service fees for handling the reinvestment of distributions are paid for by the Fund. However, brokerage commissions may be incurred when the Fund purchases shares on the open market and shareholders
will pay a pro rata share of any such commissions.
Tax Implications The automatic reinvestment of distributions will not relieve participants of
any federal, state or local income tax that may be payable (or required to be withheld) on such distributions. Therefore, income and capital gains may still be realized even though shareholders do not receive cash. If, when the Funds shares
are trading at a market premium, the Fund issues shares pursuant to the Plan that have a greater fair market value than the amount of cash reinvested, it is possible that all or a portion of the discount from the market value (which may not exceed
5% of the fair market value of the Funds shares) could be viewed as a taxable distribution. If the discount is viewed as a taxable distribution, it is also possible that the taxable character of this discount would be allocable to all the
shareholders, including shareholders who do not participate in the Plan. Thus, shareholders who do not participate in the Plan might be required to report as ordinary income a portion of their distributions equal to their allocable share of the
discount.
Contact Information All correspondence concerning the Plan, including any questions about the Plan, should be directed to the Plan
Agent at BNY Mellon Shareowner Services, P.O. Box 358035, Pittsburgh, PA 15252-8035, Telephone: 877-296-3711.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
|
DECEMBER 31, 2009
|
|
|
Directors and Officers
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Address &
Year of Birth
|
|
Position(s)
Held With
Fund****
|
|
Length of
Time
Served**
|
|
Principal Occupation(s) During Past 5 Years
|
|
Number of
IQ Advisors-
Affiliate
Advised Funds
and Portfolios
Overseen By
Director
|
|
Other Public
Directorships
Held By Director
|
Non-Interested Directors*
|
|
|
|
|
|
|
|
|
|
|
Paul Glasserman
|
|
4 World Financial Center,
6th Floor,
New York, NY 10080
1962
|
|
Director & Chairman of the Board
|
|
2006 to
present
|
|
Professor, Columbia University Business School since 1991; Senior Vice Dean (July 2004 June 2008); Consultant and Visiting Scholar, Federal
Reserve Bank of New York since June 2008.
|
|
8
|
|
None
|
Steven W. Kohlhagen
|
|
4 World Financial Center,
6th Floor,
New York, NY 10080
1947
|
|
Director & Chairman of the Audit Committee
|
|
2006 to
present
|
|
Retired financial industry executive since August 2002.
|
|
8
|
|
Ametek, Inc.
|
William J. Rainer
|
|
4 World Financial Center,
6th Floor,
New York, NY 10080
1946
|
|
Director
|
|
2006 to
present
|
|
Retired securities and futures industry executive; Chairman and Chief Executive Officer, OneChicago, LLC, a designated contract market (2001
November 2004); Former Chairman, Commodity Futures Trading Commission.
|
|
8
|
|
None
|
Laura S. Unger
|
|
4 World Financial Center,
6th Floor,
New York, NY 10080
1961
|
|
Director & Chairperson of the Nominating & Corporate Governance Committee
|
|
2007 to
present
|
|
JPMorgan Independent Consultant for the Global Analyst Conflict Settlement (2003 2009); Commentator, Nightly Business Report since 2005; Senior
Advisor, Marwood Group (2005 2007); Consultant, Nomura (2008); Regulatory Expert for CNBC (2002 2003).
|
|
8
|
|
CA, Inc. (software), Ambac Financial Group, Inc. and CIT Group Inc. (financial services)***
|
|
*
|
|
Each of the Non-Interested Directors is a member of the Audit Committee and the Nominating and Corporate Governance Committee.
|
|
**
|
|
Each Director will serve for a term of one year and until his successor is elected and qualifies, or his earlier death, resignation or removal as provided in the Funds
Bylaws, charter or by statute.
|
|
***
|
|
Ms. Unger became a Director of CIT Group Inc. effective as of January 12, 2010.
|
|
****
|
|
Chairperson titles are effective January 1, 2009. Prior to this date, the chairpersons were as follows: Mr. William J. Rainer, Chairman of the Board, Mr. Steven W. Kohlhagen,
Chairman of the Nominating & Corporate Governance Committee; and Mr. Paul Glasserman, Chairman of the Audit Committee.
|
|
|
|
|
|
|
|
|
|
Name
|
|
Address &
Year of Birth
|
|
Position(s)
Held with
Fund
|
|
Length of
Time
Served
|
|
Principal Occupation(s) During Past 5 Years
|
Fund Officers
|
|
|
|
|
|
|
|
|
Justin C. Ferri
|
|
4 World Financial Center,
6th Floor,
New York, NY 10080
1975
|
|
President
|
|
2009 to present
|
|
Justin C. Ferri has been President of IQ Investment Advisors LLC (IQ) since 2009 and serves as President of each of IQs publicly
traded closed-end mutual fund companies. Prior to this role, Mr. Ferri was a Vice President of IQ from 2005 to 2009. In addition, Mr. Ferri has been the President of Merrill Lynch Alternative Investments (MLAI) since August 2009 and a
Manager of MLAI since June 2008. Mr. Ferri has been registered with the National Futures Association as a principal of MLAI since July 2008. He also serves as Managing Director within the Merrill Lynch Pierce Fenner & Smith Incorporated Global
Investment Solutions Group (MLPF&S & GIS respectively), responsible for heading Alternative Investments. Prior to his role in GIS, Mr. Ferri was a Director in the MLPF&S Global Private Client Market Investments
& Origination (MI&O) Group, from 2005 to 2007, and before that, he served as a Vice President and Head of the MLPF&S Global Private Client Rampart Equity Derivatives team, from 2004 to 2005. He holds a B.A. degree from Loyola
College in Maryland.
|
James E. Hillman
|
|
4 World Financial Center,
6th Floor,
New York, NY 10080
1957
|
|
Vice President and Treasurer
|
|
2007 to present
|
|
James E. Hillman has been the Treasurer of IQ since March 2007, where he is also a Vice President. He also serves as the Vice President and Treasurer
of each of IQs publicly traded closed-end mutual fund companies. He also serves as a Director within MLPF&S & GIS. In addition, Mr. Hillman has served as the Treasurer of Managed Account Advisors LLC since 2006 and as a Vice President
of MLAI since 2008. Prior to his role in GIS, Mr. Hillman was a Director in the MLPF&S MI&O Group from September 2006 to 2007. Prior to joining Merrill Lynch, Mr. Hillman served as a Director of Citigroup Alternative Investments Tax
Advantaged Short Term Fund, as well as the Korea Equity Fund Inc., in 2006. Prior to that, he was an Independent Consultant from January to September 2006 and prior to that, he was a Managing Director at The Bank of New York, Inc., from 1999 to
2006. He holds a B.S. degree from Fordham University in New York.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOBAL INCOME & CURRENCY FUND INC.
|
|
DECEMBER 31, 2009
|
|
17
|
Directors and Officers (concluded)
|
|
|
|
|
|
|
|
|
Name
|
|
Address &
Year of Birth
|
|
Position(s)
Held with
Fund
|
|
Length of
Time
Served
|
|
Principal Occupation(s) During Past 5 Years
|
Fund Officers
|
|
|
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Colleen R. Rusch
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4 World Financial Center,
6th Floor,
New York, NY 10080
1967
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Vice President and Secretary
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2007 to present
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Colleen R. Rusch has been the Chief Administrative Officer and Vice President of IQ since 2007, and serves as Vice President and Secretary of each of
IQs publicly traded closed-end mutual fund companies. In addition, Mrs. Rusch is a Vice President of MLAI. She also serves as a Director within the Merrill Lynch Pierce Fenner & Smith Incorporated Global Investment Solutions Group,
responsible for overseeing the Alternative Investments product and trading platform. Prior to her role in GIS, Mrs. Rusch was a Director in the MLPF&S MI&O Group from 2005 to 2007. Prior to this, Mrs. Rusch was a Director of Merrill Lynch
Investment Managers, L.P. from January 2005 to July 2005 and a Vice President from 1998 to 2004. Mrs. Rusch holds a B.S. degree in Business Administration from Saint Peters College in New Jersey.
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Michelle H. Rhee
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4 World Financial Center,
6th Floor,
New York, NY 10080
1966
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Chief Legal Officer
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2009 to present
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Michelle H. Rhee has been the Chief Legal Officer of IQ since June 2009. She also serves as the Chief Legal Officer of each of IQs publicly
traded closed-end mutual fund companies. She has also served as an Associate General Counsel for the Bank of America Corporation since 2004. She holds a B.A. from Smith College and a J.D. from Boston University in Massachusetts.
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Robert M. Zakem
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2 World Financial Center,
37th Floor,
New York, NY 10080
1958
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Chief Compliance Officer and Anti-Money Laundering Officer
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2009 to present
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Robert M. Zakem has been the Chief Compliance Officer (CCO) of IQ since June 2009 and CCO of MLAI since April 2009. He also serves as the
CCO of each of IQs publicly traded closed-end mutual fund companies. He is also a Managing Director within Compliance since March 2009. Prior to his role in Compliance, he was the Head of Products and Platform Supervision and Global Wealth
Management - Business Risk Management from 2006 to 2009. Prior to joining Merrill Lynch, Mr. Zakem was an Executive Director at UBS Financial Services, Inc., where he was the Head of Funds Services-US Investment Solutions (2006), an Executive
Director, Provider Management - Fund and Annuity Solutions from 2005 to 2006, and Senior Vice President and Chief Administrative Officer, Investment Product Solutions, from 2004 to 2005. He holds a B.S. from the University of Detroit in Michigan,
and a J.D. from the University of Wisconsin Law School in Wisconsin.
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Jeff E. McGoey
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4 World Financial Center,
6th Floor,
New York, NY 10080
1976
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Vice President
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2009 to present
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Jeff E. McGoey serves as a Vice President of each of IQs publicly traded closed-end mutual fund companies. He also serves as Vice President
within MLPF&S & GIS since 2008. Prior to his role in GIS, Mr. McGoey served as a Vice President in Merrill Lynch & Co.s Corporate Audit Group responsible for coverage of the MLPF&S MI&O Group from 2004 to 2008. He holds a
B.A. degree from Rutgers College in New Jersey.
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Officers of the Fund serve at the pleasure of the Board of Directors.
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Custodian
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Transfer Agent
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State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
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BNY Mellon Shareowner Services
480 Washington Boulevard
Jersey City, NJ 07310
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18
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GLOBAL INCOME & CURRENCY FUND INC.
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DECEMBER 31, 2009
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Privacy Policy
IQ Investment Advisors is a subsidiary of Bank of America and implements the Privacy Policy of Bank of America for the IQ Funds. A copy of the policy is available at www.iqiafunds.com or upon
request by calling 1-877-449-4742.
Bank of America Privacy Policy for U.S. Consumers 2010
Our privacy commitment to you.
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Protect Customer Information
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Inform on use of Customer Information
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Offer choices on the use of Customer Information and honor your choices
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Collect, use and process Customer Information respectfully and lawfully
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This document includes the following information about how Bank of America manages Customer Information and what actions you can take:
1.
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Making the security of information a priority
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2.
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Collecting information about you
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3.
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Managing information about you
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6.
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Steps to protect information about you
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7.
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Other privacy commitments
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8.
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Bank of America companies
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This policy covers Customer Information,
which means personally identifiable information about a consumer or a consumers current or former customer relationship with Bank of America. The
Bank of America Privacy Policy for U.S. Consumers 2010
is provided to you as required by
law and applies to our companies identified in Section 8,
Bank of America companies
. This policy applies to consumer customer relationships established in the United States and is effective January 1, 2010.
1. Making the security of information a priority
Keeping
financial information secure is one of our most important responsibilities. We maintain physical, electronic and procedural safeguards to protect Customer Information. Appropriate employees are authorized to access Customer Information for business
purposes only. Our employees are bound by a code of ethics that requires confidential treatment of Customer Information and are subject to disciplinary action if they fail to follow this code.
2. Collecting information about you
We collect and use
various types of information about you and your accounts to service your accounts, save you time and money, better respond to your needs, assist us in keeping information up to date, and manage our business and risks. Customer Information is
categorized in the following six ways:
A.
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Identification Information information that identifies you, such as name, address, e-mail address, telephone number and Social Security number.
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B.
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Application Information information you provide to us on applications and through other means that will help us determine if you are eligible for products you request.
Examples include assets, income and debt.
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C.
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Transaction and Experience Information information about transactions and account experience, as well as information about our communications with you. Examples include
account balances, payment history, account usage and your inquiries and our responses.
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D.
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Consumer Report Information information from a consumer report and from insurance support organizations not affiliated with us. Examples include credit score, credit
history, and loss and health information.
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E.
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Information from Outside Sources information from outside sources other than consumer report information, regarding employment, credit and other relationships that will
help us determine if you are eligible for products you request. Examples include employment history, loan balances, credit card balances, property insurance coverage and other verifications.
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F.
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Other General Information information from outside sources, such as data from public records, that is not assembled or used for the purpose of determining eligibility for
a product or service.
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As required by the USA PATRIOT Act, we also collect information and take actions necessary to verify your
identification.
3. Managing information about you
Managing information within Bank of America
Bank of America is made up of a number of companies, including our bank, brokerage,
mortgage, credit card companies, insurance companies and agencies, and nonfinancial companies, such as our operations and servicing subsidiaries.
Bank of America may share any of the categories of Customer Information among our companies, as permitted by law. For example, sharing information allows us to use information about your ATM, credit card and check card transactions to
identify any unusual activity, and then contact you to determine if your card has been lost or stolen.
We occasionally receive medical or health
information from a customer if, for example, a customer applies for insurance from us. We do not share medical or health information, including information received from third parties, among our companies, except to maintain or collect on accounts,
process transactions, service customer requests or perform insurance functions to the extent permitted by law.
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GLOBAL INCOME & CURRENCY FUND INC.
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DECEMBER 31, 2009
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19
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Privacy Policy (continued)
Managing information with companies that work for us
We may share any of the categories of Customer Information with companies that work for us, including companies located outside the United States. All nonaffiliated
companies that act on our behalf and receive Customer Information from us are contractually obligated to keep the information we provide to them confidential, and to use the Customer Information we share only to provide the services we ask them to
perform. These companies may include financial service providers, such as payment processing companies, and nonfinancial companies, such as check printing and data processing companies.
In addition, we may share any of the categories of Customer Information with companies that work for us in order to provide marketing support and other services, such as a service provider that distributes
marketing materials. These companies may help us to market our own products and services or other products and services that we believe may be of interest to you. Please note that some of our own companies may provide marketing support and other
services for us as well.
Sharing information with third parties
(for customers with credit cards and Sponsored Accounts)
We may share Identification Information, Transaction and Experience Information, as well as Other General Information we collect about each of your (1) Bank of America
credit card account(s) and (2) Sponsored Accounts at Bank of America, with selected third parties.
1.
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Credit card account information, whether co-branded or not, may be shared with third parties.
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2.
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Sponsored Account information may be shared with third parties. Sponsored Accounts are non-credit card accounts or services provided by Bank of America that are also endorsed,
co-branded or sponsored by other organizations. Examples of these organizations include colleges, sporting teams, retailers and other affinity organizations, such as charities. Sponsored Accounts may include deposit accounts or other banking
services provided by Bank of America, such as a savings account co-branded with a baseball team. You will know whether an account is a Sponsored Account by the appearance of the name or logo of the sponsoring organization on account materials, such
as statements and marketing materials.
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If you are unsure whether any of your accounts are Sponsored Accounts, please
contact 1.888.341.5000.
We may share information about credit cards and Sponsored Accounts with selected third parties, including:
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Financial services companies (such as insurance agencies or companies and mortgage brokers and organizations with whom we have agreements to jointly market
financial products);
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Nonfinancial companies (such as retailers, travel companies and membership organizations); and
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Other companies (such as nonprofit organizations).
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The sharing of information, as described in this section, is limited to credit card and Sponsored Account information. Please see Section 4,
Honoring your choices
, to learn more about your opt-out choices.
Disclosing information in other situations
We also may
disclose any of the categories of Customer Information to the following third parties, including third parties located outside the United States:
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To government agencies, self-regulatory organizations and regulatory law enforcement authorities as necessary or required; and
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As part of the sale, merger or similar change of a Bank of America business; and
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To other nonaffiliated third parties as requested by you or your authorized representative, or when required or permitted by law.
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For example, we may disclose information in the context of an investigation of terrorism, money laundering, fraud prevention or investigation, risk management and
security, determining your eligibility for an insurance benefit or payment, and recording mortgages in public records.
Where you have a contractual
relationship with a third party in connection with a product or service (such as through an outside investment manager or insurance provider), we may share information in accordance with such arrangement and the handling of information by that party
will be subject to your agreement(s) with it. If you have a relationship with us through your employer, such as through your stock option or retirement plan, then we will share plan information with your employer and handle such information in
accordance with plan agreements.
In addition, Merrill Lynch, a Bank of America affiliated broker-dealer, has entered into a Protocol with certain other
brokerage firms under which your Financial Advisor may use your contact information (for example, your name and address) in the event your Financial Advisor joins one of these firms.
4. Honoring your choices
You have choices when it comes to how Bank of America shares and
uses information.
Please note, if you choose to limit sharing or restrict marketing, you may not learn about beneficial offers.
Sharing among Bank of America companies
You may request that
Application Information, Consumer Report Information and Information from Outside Sources not be shared among Bank of America companies.
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20
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GLOBAL INCOME & CURRENCY FUND INC.
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DECEMBER 31, 2009
|
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Privacy Policy (continued)
For sharing among Bank of America companies, each customer may tell us his or her choice individually, or you may
tell us the choice for any other customers who are joint account holders with you.
Direct marketing
You may choose not to receive direct marketing offers sent by postal mail, telephone and/or e-mail from Bank of America. Direct marketing offers from us
may include information about products and services we believe may be of interest to you. Your choices apply to all marketing offers from us and from companies working for us. To minimize the amount of telephone solicitation our customers receive,
Bank of America does not offer nonfinancial products and services through telephone solicitations.
If you elect not to receive direct
marketing offers by postal mail, telephone and/or e-mail, please note that we may continue to contact you as necessary to service your account and for other nonmarketing purposes. You may also be contacted by your assigned account representative
(for example, Financial Advisor or relationship manager), if applicable. Bank of America may also continue to provide marketing information in your regular account mailings and statements, including online and ATM communications.
Each customer may opt out of each direct marketing option individually. Since marketing programs may already be in progress, it may take up to 12 weeks for your postal
mail opt-out to be fully effective. When you opt out of direct marketing by postal mail or telephone, your opt-out will last for five (5) years. After that, you may choose to renew your opt-out for another five-year period.
Sharing information with third parties
If you have a Bank of
America credit card or Sponsored Account, you may request that we not share information about these accounts with third parties. If you request that we not share information with third parties, we may still share information:
|
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Where permitted or required by law as discussed in Section 3 under
Disclosing information in other situations
;
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With our service providers as discussed in Section 3 under
Managing information with companies that work for us
; and
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With other financial companies with whom we have joint marketing agreements.
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If you have multiple credit cards or Sponsored Accounts, you will need to express your choice for each account separately. When any customer on a joint account requests that we not share with third parties, that
choice is applied to the entire account.
5. Actions you can take
You can tell us your choice by:
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Notifying us at bankofamerica.com/privacy and entering your information on our secure Web site
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Calling us toll free at 1.888.341.5000
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Talking to a customer representative at a banking center or to your assigned account representative
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You can make sure information is accurate by:
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Accessing your account information (for example, on a statement or in response to specific requests)
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Telling us if it is incorrect by calling or writing to us at the telephone number or appropriate address for such changes on your statement or other account
materials
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6. Steps to protect information about you
Bank of America recommends that you take the following precautions to guard against the disclosure and unauthorized use of your account and personal information:
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Review your monthly account statements and report any suspicious activity to us immediately.
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Do not respond to e-mails requesting account numbers, passwords or PINs. Call the institution to verify the legitimacy of the e-mail.
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Memorize PINs and refrain from writing PINs, Social Security numbers, debit or credit card numbers where they could be found.
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Shred documents containing any sensitive information before discarding, such as bank statements.
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Confirm that an Internet site is secure by checking that the URL (Web address) begins with https.
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Review your credit report at least once every year to make sure all information is up to date. For a free copy of your credit bureau report, contact
annualcreditreport.com or call 1.877.322.8228.
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If you think you have been a victim of identity theft or fraud, you may contact the Federal Trade Commission (FTC) to report any incidents and to receive
additional guidance on steps you can take to protect yourself. Contact the FTC at ftc.gov/idtheft or 1.877.438.4338.
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For additional information on protecting your information, please visit bankofamerica.com/privacy.
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GLOBAL INCOME & CURRENCY FUND INC.
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DECEMBER 31, 2009
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21
|
Privacy Policy (continued)
Keeping up to date with our Privacy Policy
We may make changes to this policy at any time and will inform you of changes, as required by law. To receive the most up-to-date Privacy Policy, you can visit our Web site at: bankofamerica.com/privacy.
7. Other privacy commitments
This notice
constitutes the Bank of America Do Not Call Policy under the Telephone Consumer Protection Act for all consumers and is pursuant to state law. When you talk with Bank of America by telephone your conversation may be monitored or recorded by us.
For information on our online privacy practices, including the use of cookies, please see the online policy located on our Web sites.
You may have other privacy protections under state laws, such as Vermont and California. To the extent these state laws apply, we will comply with them
with regard to our information practices.
For Nevada residents only.
We are providing you this notice pursuant to state law. You may
be placed on our internal Do Not Call List by following the directions in Section 5,
Actions you can take
. Nevada law requires that we also provide you with the following contact information: Bureau of Consumer Protection, Office of the
Nevada Attorney General, 555 E. Washington St., Suite 3900, Las Vegas, NV 89101; Phone number- 702.486.3132; e-mail: BCPINFO@ag.state.nv.us. Bank of America, PO Box 25118, FL1-300-02-07, Tampa, Florida 33633-0900; Phone number- 1.888.341.5000;
e-mail: Click on Contact Us at bankofamerica.com/privacy.
For Vermont and California residents only.
The information
sharing practices described above are in accordance with federal law. Vermont and California law place additional limits on sharing information about Vermont and California residents so long as they remain residents of those states.
Vermont:
In accordance with Vermont law, Bank of America will not share information we collect about Vermont residents with companies outside of Bank
of America, except as permitted by law, such as with the consent of the customer, to service the customers accounts or to other financial institutions with which we have joint marketing agreements. Bank of America will not share Application
Information, Consumer Report Information and Information from Outside Sources about Vermont residents among the Bank of America companies, except with the authorization or consent of the Vermont resident.
California:
In accordance with California law, Bank of America will not share information we collect about California residents with companies
outside of Bank of America, except as permitted by law, such as with the consent of the customer to service the customers accounts, or to fulfill on rewards or benefits. We will limit sharing among our companies to the extent required by
applicable California law.
For Insurance Customers in AZ, CA, CT, GA, IL, ME, MA, MN, MT, NV, NJ, NC, OH, OR and VA only.
We
may give Insurance Information, which means Customer Information related to insurance transactions, to insurance support companies and other like businesses. Such companies may keep the Insurance Information or give it to others. We may also give
Insurance Information to state insurance officials, to law enforcement agencies, to group policyholders about claims experience or to auditors as permitted or required by law. We may disclose health information to decide if you are eligible for
coverage, to process claims, to prevent fraud, as authorized by you or as permitted by law.
You may ask for access to the Insurance Information we have
about you by writing to Insurance Services, P.O. Box 19702, Irvine, CA 92623-9702, Attn: Data Request. You must describe the type of Insurance Information you want to access and give your full name, address, the insurance company and policy number
(if applicable). We will tell you what Insurance Information we have about you. If you want to see the Insurance Information, you may review and copy the Insurance Information in person at our offices or request a copy be mailed to you. You may not
see Insurance Information that we deem privileged, such as Insurance Information about claims or litigation. We may charge a fee for mailing the Insurance Information to you.
To correct Insurance Information that we have about you, mail your request as described above. Say why you dispute the Insurance Information. We will tell you of our action with respect to this dispute. You may
file a statement with us if you disagree with our decision.
For MA Insurance Customers only.
You may ask in writing the specific
reasons for an adverse underwriting decision. An adverse underwriting decision is where we decline your application for insurance; offer to insure you at a higher than standard rate; or terminate your coverage.
8. Bank of America companies
This Privacy Policy applies
to all Bank of America entities that utilize the names:
Bank of America
Banc of America
U.S. Trust
Merrill Lynch
Balboa
These entities include
Banks and Trust Companies; Credit Card Companies; Brokerage and Investment Companies; Insurance and Annuity Companies; and Real Estate Companies.
In
addition, this policy applies to the following Bank of America companies:
Credit Card
Fleet Credit Card Services, L.P.
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22
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GLOBAL INCOME & CURRENCY FUND INC.
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DECEMBER 31, 2009
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Privacy Policy (concluded)
Brokerage
and Investments
BACAP Alternative Advisors, Inc.
Columbia Management Advisors, LLC
Columbia Management Distributors, Inc.
Columbia Wanger Asset Management, L.P.
UST Securities Corp.
White Ridge Investment Advisors LLC
Equity Margins Limited
FAM Distributors, Inc.
Financial Data Services Inc.
IQ Investment Advisors Family of Funds
IQ Investment Advisors LLC
Managed Account Advisors LLC
The Princeton Retirement
Group, Inc.
Roszel Advisors, LLC.
Insurance and
Annuities
General Fidelity Insurance Company
General Fidelity Life Insurance Company
Meritplan Insurance Company
Newport Insurance Company
Real Estate
BAC Home Loans Servicing, LP
Countrywide Home Loans, Inc.
CWB Mortgage Ventures, LLC
HomeFocus Services, LLC
HomeFocus Tax Services, LLC
KB Home Mortgage, LLC
NationsCredit Financial Services Corporation
Please note, you may
receive company specific privacy policies from another affiliate within the Bank of America family of companies.
These entities listed include any
successor Bank of America entities. For a detailed list of current Bank of America companies that have consumer customer relationships and to which this policy applies, please visit our Web site at bankofamerica.com/privacy.
©
2009 Bank of
America Corporation.
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GLOBAL INCOME & CURRENCY FUND INC.
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DECEMBER 31, 2009
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23
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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 Funds Forms N-Q are available on the SECs website at http://www.sec.gov. The Funds Forms N-Q may also be
reviewed and copied at the SECs Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Electronic Delivery
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.
Fund Certification
In May 2009, the Fund filed its Chief Executive Officer Certification for the prior year with the New York Stock Exchange pursuant to
Section 303A.12(a) of the New York Stock Exchange Corporate Governance Listing Standards.
The Funds Chief Executive Officer
and Chief Financial Officer Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 were filed with the Funds Form N-CSR and are available on the Securities and Exchange Commissions website at http://www.sec.gov.
Contact Information
For more information regarding the Fund, please visit
www.IQIAFunds.com or contact us at 1-877-449-4742.
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24
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GLOBAL INCOME & CURRENCY FUND INC.
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DECEMBER 31, 2009
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[Go Paperless
Graphic Appears Here]
[IQ Graphic Appears Here]
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
Commissions website at http://www.sec.gov. Information about how the Fund voted proxies relating to securities held in the Funds 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 Commissions website at http://www.sec.gov.
Global Income & Currency Fund Inc.
4 World Financial Center, 6th Fl.
New York, NY 10080
#IQGCF 12/09
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Item 2
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Code of Ethics The registrant (or the Fund) has adopted a code of ethics, as of the end of the period covered by this report, that applies to the
registrants principal executive officer, principal financial officer and principal accounting officer, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under
the code of ethics. A copy of the code of ethics is available without charge upon request by calling toll-free 1-877-449-4742.
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Item 3
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Audit Committee Financial Expert The registrants board of directors has determined that (i) the registrant has the following audit committee financial expert
serving on its audit committee and (ii) the audit committee financial expert is independent: (1) Steven W. Kohlhagen.
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Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an expert for any purpose, including without
limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not
impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or
identification.
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Item 4 Principal Accountant Fees and Services
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(a) Audit Fees
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(b) Audit-Related Fees
1
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(c) Tax Fees
2
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(d) All Other Fees
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Entity Name
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Current
Fiscal Year
End
|
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Previous
Fiscal Year
End
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Current
Fiscal Year
End
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Previous
Fiscal Year
End
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Current
Fiscal Year
End
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Previous
Fiscal Year
End
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Current
Fiscal Year
End
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Previous
Fiscal Year
End
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Global Income &
Currency Fund Inc.
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$30,000
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$30,000
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$0
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$0
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$8,500
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$8,500
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$0
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$0
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1 The nature of the services include assurance and related services reasonably related to the performance of the audit of financial statements not included
in Audit Fees.
2 The nature of the services include tax compliance, tax advice and tax planning.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrants audit committee (the Committee) has adopted policies and procedures with regard to the
pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the
registrant and those non-audit services provided to the registrants affiliated service providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee
believes are a) consistent with the SECs auditor independence rules and b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific
case-by-case basis (general pre-approval). However, such services will only be deemed pre-approved provided that any individual project does not exceed $5,000 attributable to the registrant or $50,000 for all of the registrants the
Committee oversees. Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The
Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting.
(e)(2) None of the services described in each of Items 4(b) through (d) were approved
by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g)
Affiliates Aggregate Non-Audit Fees:
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Entity Name
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Current Fiscal Year
End
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Previous Fiscal Year
End
|
|
|
|
|
|
|
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Global Income & Currency Fund Inc.
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$8,500
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$8,500
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(h) The registrants audit committee has considered and
determined that the provision of non-audit services that were rendered to the registrants investment adviser (not including any non-affiliated sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by
the registrants investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountants independence.
Regulation S-X Rule
2-01(c)(7)(ii) 0%, 0%
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Item 5
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Audit Committee of Listed Registrants The following individuals are members of the registrants separately-designated standing audit committee established in accordance
with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):
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Paul Glasserman
Steven W.
Kohlhagen
William J. Rainer
Laura S.
Unger
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Item 6
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Investments
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(a) The registrants Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
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(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
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Item 7
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Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies The registrant has delegated the voting of proxies relating to its voting
securities to its investment sub-adviser, Nuveen Asset Management (the Sub-adviser). The Proxy Voting Policies and Procedures of the Sub-adviser (the Proxy Voting Policies) are attached as an Exhibit
hereto.
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EX.99 ProxyPol
NUVEEN ASSET MANAGEMENT
INVESTMENT ADVISORY ACCOUNTS
PROXY VOTING GUIDELINES
Nuveen Asset Management (NAM) serves as investment adviser for client accounts (Accounts) investing in municipal bonds and other fixed income securities whose issuers generally do
not solicit proxies. In the rare event that such an issuer were to solicit a proxy, NAM would engage an independent third party or proxy voting service to vote such proxy or to determine how the proxy should be voted, whether or not the proxy
presented NAM with a material conflict of interest. A member of the NAMs legal department would oversee the administration of the voting, ensure that records were maintained in accordance with Rule 206(4)-6, and ensure that proxy voting
records with respect to an Account were made available to such client as requested.
Amended May 16, 2008
Item 8 Portfolio Managers of Closed-End Management Investment Companies
(a)(1) Mr. Andrew J. Stenwall is responsible for the the day-to-day management of the registrants portfolio since 2006.
Mr. Stenwall leads the Sub-advisers Taxable Fixed Income Team and is responsible for developing and administering the portfolio
strategy of the team. Mr. Stenwall has been a Managing Director of the Sub-adviser since August 2004. Prior to joining the Sub-adviser, Mr. Stenwall served as the Fixed Income Chief Investment Officer for Banc of America Capital Management
(BACAP) from 2002 through 2004, prior to which he was a Managing Director in charge of BACAPs taxable fixed income management and the leader of its structured products.
The information provided in the paragraph above pursuant to this Item 8(a)(1) is as of March 8, 2010.
(a)(2) As of December 31, 2009:
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(i) Name of Portfolio Manager
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(ii) Number of Other Accounts Managed
and Assets by Account Type
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(iii) Number of Other Accounts and
Assets for Which Advisory Fee is
Performance-Based
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Other
Registered
Investment
Companies
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Other Pooled
Investment
Vehicles
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Other
Accounts
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Other
Registered
Investment
Companies
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Other Pooled
Investment
Vehicles
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Other
Accounts
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Andrew J. Stenwall
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7
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0
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2574
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0
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0
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0
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$
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1,294,236,004
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$
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0
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$
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663,247,380
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$
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0
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$
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0
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$
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0
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(iv) Potential Material Conflicts of Interest
The Sub-advisers Taxable
Fixed Income Teams simultaneous management of the Fund and the other registered investment companies and other accounts noted above may present actual or apparent conflicts of interest with respect to the allocation and aggregation of
securities and Currency Investments (as defined in the Prospectus) orders placed on behalf of the Fund. The Sub-adviser has adopted several policies that address such potential conflicts of interest, including best execution and trade allocation
policies that are designed to ensure (1) that portfolio management is seeking the best price for portfolio trades under the circumstances, (2) fair and equitable allocation of investment opportunities among accounts over time, and
(3) compliance with applicable regulatory requirements. All accounts are to be treated in a non-preferential manner, such that allocations are not based upon account performance, fee structure or preference of the portfolio manager. In
addition, the Sub-adviser has adopted a Code of Conduct that sets forth policies regarding conflicts of interest.
(a)(3) As of
December 31, 2009:
Compensation
.
Salary and Cash Bonus
. In addition to a salary and other guaranteed compensation, each member of the investment team is eligible to receive an annual cash bonus. The level of these bonuses and year to year changes to base
compensation are based upon evaluations and determinations made by Mr. Stenwall for all team members reporting to him, and for all team members, including Mr. Stenwall, upon evaluations and determinations made by the CEO and President of
the Sub-advisers parent company, Nuveen Investments, Inc. These reviews and evaluations take into account a number of factors, including the effectiveness of the teams
investment strategies, the performance of the accounts for which the team serves as portfolio management relative to any benchmarks established for the accounts (which for the Fund will be
Funds ability to meet the Funds investment objective), the teams and the individuals effectiveness in communicating investment performance to shareholders and their representatives, the teams and the individuals
contribution to the Sub-advisers investment process and execution of investment strategies, and the teams overall assets under management. The cash bonus component is also impacted by the overall performance of the parent company in
achieving its business objectives.
Long-term incentive compensation
. Each member of the investment team is eligible to receive bonus
compensation in the form of equity-based awards comprised of securities issued by Nuveen Investments, Inc. or options thereon, and/or other forms of long-term deferred compensation. The amount of such compensation is dependent upon the same factors
articulated for cash bonus awards but also takes into account the individuals long-term potential with the firm.
(a)(4)
Beneficial
Ownership of Securities.
As of December 31, 2009, Mr. Stenwall did not beneficially own any stock issued by the Fund.
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Item 9
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Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers Not Applicable due to no such purchases during the period covered by this
report.
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Item 10
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Submission of Matters to a Vote of Security Holders The registrants Nominating and Corporate Governance 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
registrants Secretary. There have been no material changes to these procedures.
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Item 11
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Controls and Procedures
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11(a)
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The registrants principal executive and principal financial officers or persons performing similar functions have concluded that the registrants 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.
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11(b)
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There were no changes in the registrants 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 registrants internal control over financial reporting.
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Item 12 Exhibits attached hereto
12(a)(1) Code of Ethics See Item 2
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.
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Global Income & Currency Fund Inc.
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By:
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/s/ Justin C. Ferri
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Justin C. Ferri
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Chief Executive Officer of
Global Income & Currency Fund Inc.
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Date: February 24, 2010
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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.
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By:
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/s/ Justin C. Ferri
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Justin C. Ferri
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Chief Executive Officer (principal executive officer) of
Global Income & Currency Fund Inc.
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Date: February 24, 2010
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By:
|
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/s/ James E. Hillman
|
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James E. Hillman
|
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Chief Financial Officer (principal financial officer) of
Global Income & Currency Fund Inc.
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Date: February 24, 2010
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