Gamco Global Gold Natural Resources Income Trust, Ticker GGN
Reward vs risk. When considering stock market activities, isn't that pretty much what its all about? As Real Life Traders we are very fortunate to have a defined system in which a win achieves two or more units of risk while the result of a loss is to be down only one unit of risk. Outstanding!!! With this fund (symbol GGN) the reward is, by some standards, quite high. However, each of us as traders, must consider our own trading plan and then determine if the reward is worth the risk.
Here we have a Gabelli fund which operates as a non-diversified, closed-end management company whose main objective is to provide a high level of current income to investors. The investment objective is achieved by 1) investing in gold miners and companies related to gold/ precious metals/ natural resources and 2) then conducting option strategies on the securities owned by the fund. Fund size is about $740 million in net assets. For more information and a complete statement of objectives please refer to the GGN website.
Gabelli Asset Management Co., which was started in 1976 by Mario Gabelli, has grown into a diversified financial services company with about 15 closed-end funds, various mutual funds, and other financial activities. Assets under management is now about 39 billion dollars and the firm has offices in London, Shanghai, Tokyo as well as several locations in the United States.
As of Oct 14th, 2016, other information items are as follows:
1) the 52-week hi/lo range is 7.13/3.62
2) closing market price $6.09
3) the dividend rate is 7 cents per share/month
4) annualized yield of about 13.7%
5) NAV (net asset value) about $5.92
6) leverage ratio ($borrowed for operations) is about 11.16%
7) total holdings about 108
8) total expense ratio (includes interest on borrowed dollars) 1.97%
9) beta .73 (based on market price up to Sept 30th, 2016)
10) annual turnover about 36%
11) DRIP (dividend re-investment plan) available to investors
12) the manager is Mr. Caesar Bryan, tenure about 11.5 years
13) the current distribution rate has been in effect since January 2015
14) dividends for October, November, December have already been declared by GGN
1) The fund manager and immediate assistants have been at Gabelli for about a decade.
2) If/when interest rates rise, a moderate effect on this fund can be expected.
3) Net asset value is a bit below market value.
4) This fund makes money by combining intelligent traders with advanced computer
programs to do option strategies in a skillful and effective manner on underlying assets.
Information presented here is believed to be accurate, but is not, and cannot be, guaranteed by the writer or RLT because the information is taken from readily available sources such as GGN website, Yahoo.finance, and/or stockbroker website. Please know that the writer owns a lil bit of GGN and has owned it since 2009. The writer does not have plans to sell or buy more GGN in the near future. This presentation is intended for reader interest/entertainment only and does not encourage or discourage investment in GGN. EACH READER MUST CONDUCT THEIR OWN RESEARCH BEFORE MAKING ANY INVESTMENT.