-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, R/RMIEIq2Iguo5Arq2QU0Op9Ib3R7bLFpkJRMuM1EpKP00OmznFKmqOV/gI6QchM 9FJjfo/WUSqxa6KzTtkCJg== 0001193805-08-000810.txt : 20080307 0001193805-08-000810.hdr.sgml : 20080307 20080307123223 ACCESSION NUMBER: 0001193805-08-000810 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20071231 FILED AS OF DATE: 20080307 DATE AS OF CHANGE: 20080307 EFFECTIVENESS DATE: 20080307 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Global Income & Currency Fund Inc. CENTRAL INDEX KEY: 0001334510 IRS NUMBER: 000000000 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21791 FILM NUMBER: 08673327 BUSINESS ADDRESS: STREET 1: 800 SCUDDERS MILL ROAD CITY: PLAINSBORO STATE: NJ ZIP: 08536 BUSINESS PHONE: 609-282-5904 MAIL ADDRESS: STREET 1: 800 SCUDDERS MILL ROAD CITY: PLAINSBORO STATE: NJ ZIP: 08536 FORMER COMPANY: FORMER CONFORMED NAME: Global Currency & Income Fund Inc. DATE OF NAME CHANGE: 20060117 FORMER COMPANY: FORMER CONFORMED NAME: Global Currency Strategy Income Fund Inc. DATE OF NAME CHANGE: 20050805 FORMER COMPANY: FORMER CONFORMED NAME: IQIA Global Currency Income Fund Inc. DATE OF NAME CHANGE: 20050802 N-CSR 1 e603441_ncsr-global.txt 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: P.O. Box 9011 Princeton, NJ 08543-9011 Name and address of agent for service: Mitchell M. Cox, Chief Executive Officer, Global Income & Currency Fund Inc., 4 World Financial Center, 6th Floor, New York, New York 10080. Registrant's telephone number, including area code: (877) 449-4742 Date of fiscal year end: 12/31/2007 Date of reporting period: 01/01/2007 - 12/31/2007 Item 1 - Report to Stockholders Global Income & Currency Fund Inc. Annual Report December 31, 2007 [LOGO] IQ INVESTMENT [LOGO] NUVEEN ADVISORS INVESTMENTS Global Income & Currency Fund Inc. Portfolio Information as of December 31, 2007+ Percent of Notional Exposure by Country/Region++ Net Assets - -------------------------------------------------------------------------------- United States ....................................................... 58.4% Mexico .............................................................. 20.8 Hungary ............................................................. 10.8 Turkey .............................................................. 10.7 Colombia ............................................................ 10.6 Brazil .............................................................. 10.5 South Africa ........................................................ 10.2 Iceland ............................................................. 10.1 Philippines ......................................................... 1.3 Indonesia ........................................................... 1.3 Canada .............................................................. 0.2 Switzerland ......................................................... (0.1) Japan ............................................................... (10.4) South Korea ......................................................... (10.5) Singapore ........................................................... (10.5) Taiwan .............................................................. (11.1) Europe .............................................................. (11.2) Denmark ............................................................. (11.5) Czech Republic ...................................................... (12.2) - -------------------------------------------------------------------------------- + At the end of the period, the Fund was invested primarily in U.S. dollars pursuant to its investment process awaiting an opportunity to re-enter the global market. ++ This table denotes the notional exposure of Fund investments by country (or geographic region through the use of European Currency contracts) as a percentage of net assets of the Fund. For additional detail on the Fund's holdings, please refer to the "Schedule of Investments" section included in this report. 2 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 A Summary From Your Fund's Portfolio Manager We are pleased to provide you with this shareholder report for Global Income & Currency Fund Inc. While the Fund is advised by IQ Investment Advisors LLC, the following is provided by Nuveen Asset Management, the Fund's subadviser. 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 annual period ended December 31, 2007, 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 $19.09 to $18.58. 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, 2007 8.60%* - -------------------------------------------------------------------------------- Since inception (from 4/28/06) 14.55%* - -------------------------------------------------------------------------------- * Fund performance information is net of expenses. For more detail with regard to the Fund's total investment return based on a change in the per share market value of the Fund's Common Stock (as measured by the trading price of the Fund's shares on the New York Stock Exchange), please refer to the Financial Highlights section of this report. As a closed-end fund, the Fund's shares may trade in the secondary market at a premium or discount to the Fund's net asset value. As a result, total investment returns based on changes in the market value of the Fund's Common Stock can vary significantly from total investment returns based on changes in the Fund's net asset value. Andrew Stenwall Portfolio Manager January 17, 2008 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 3 Schedule of Investments as of December 31, 2007 (in U.S. dollars)
Face Short-Term Securities Amount Value ===================================================================================================== Hungary -- 10.8% Foreign Commercial Paper** -- 10.8% Hungarian Treasury Bill, 6.973% due 1/16/2008 (a) HUF 2,419,320,000 $ 13,951,377 - ----------------------------------------------------------------------------------------------------- Total Short-Term Securities in Hungary 13,951,377 ===================================================================================================== Mexico -- 20.8% Foreign Commercial Paper** -- 20.8% Mexican Cetes Treasury Bill: 7.589% due 1/03/2008 (a) MXN 146,503,200 13,406,352 7.259% due 4/24/2008 149,991,200 13,406,036 - ----------------------------------------------------------------------------------------------------- Total Short-Term Securities in Mexico 26,812,388 ===================================================================================================== South Africa -- 10.2% Foreign Commercial Paper** -- 10.2% South Africa Government Bond Series R195, 8.855% due 2/28/2008 (a) ZAR 90,000,000 13,152,970 - ----------------------------------------------------------------------------------------------------- Total Short-Term Securities in South Africa 13,152,970 ===================================================================================================== Turkey -- 10.7% Foreign Commercial Paper** -- 10.7% Turkey Government Bond, 15.371% due 4/09/2008 TRY 17,000,000 13,903,962 - ----------------------------------------------------------------------------------------------------- Total Short-Term Securities in Turkey 13,903,962 ===================================================================================================== United States -- 58.4% U.S. Government Agency Obligations** -- 58.4% Fannie Mae, 4.90% due 1/04/2008 (a) USD 24,375,000 24,369,686 Federal Home Loan Bank: 4.75% due 1/09/2008 (a) 10,100,000 10,092,304 4.41% due 2/06/2008 1,900,000 1,892,389 4.37% due 2/08/2008 3,750,000 3,734,122 4.74% due 2/19/2008 (a) 25,400,000 25,260,478 4.33% due 3/07/2008 (a) 10,000,000 9,925,790 - ----------------------------------------------------------------------------------------------------- Total U.S. Government Agency Obligations 75,274,769 ===================================================================================================== Shares Held ===================================================================================================== Mutual Funds -- 0.0% AIM Short-Term Investment Trust-Liquid Assets Portfolio -- Institutional Class, 4.94% (b) 52,969 52,969 - ----------------------------------------------------------------------------------------------------- Total Short-Term Securities in the United States 75,327,738 ===================================================================================================== Total Investments (Cost -- $142,534,768*) --110.9% 143,148,435 Liabilities in Excess of Other Assets -- (10.9%) (14,103,051) ------------ Net Assets -- 100.0% $129,045,384 ============
* The cost and unrealized appreciation (depreciation) of investments as of December 31, 2007, as computed for federal income tax purposes, were as follows: Aggregate cost ......................................... $ 142,534,768 ============= Gross unrealized appreciation .......................... $ 812,389 Gross unrealized depreciation .......................... (198,722) ------------- Net unrealized appreciation ............................ $ 613,667 ============= ** 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, 2007. (a) All or a portion of security held as collateral in connection with open forward foreign exchange contracts. (b) Represents the current yield as of December 31, 2007. o Currency Abbreviations: BRL Brazilian Real CAD Canadian Dollar CHF Swiss Franc COP Colombian Peso CZK Czech Republic Koruna DKK Danish Krone EUR Euro HUF Hungary Forint IDR Indonesian Rupiah ISK Icelandic Krona JPY Japanese Yen KRW South Korean Won MXN Mexican New Peso PHP Philippines Peso SGD Singapore Dollar TRY Turkish Lira TWD New Taiwan Dollar USD U.S. Dollar ZAR South African Rand o Forward foreign exchange contracts as of December 31, 2007 were as follows:
------------------------------------------------------------------------------------- Unrealized Foreign Foreign Settlement Appreciation Currency Purchased Currency Sold Date (Depreciation) ------------------------------------------------------------------------------------- JPY 628,100,000 USD 5,508,953 1/04/2008 $ 116,290 PHP 76,755,000 USD 1,700,000 1/04/2008 159,356 USD 5,500,000 JPY 628,100,000 1/04/2008 (125,243) USD 1,855,330 PHP 76,755,000 1/04/2008 (4,026) COP 7,584,500,000 USD 3,703,369 1/15/2008 46,632 USD 14,328,567 TWD 460,950,000 1/15/2008 76,824 USD 7,352,650 EUR 5,000,000 1/15/2008 40,310 USD 13,500,000 KRW 12,675,150,000 1/22/2008 (65,615) PHP 76,755,000 USD 1,857,125 2/04/2008 (41) BRL 24,219,000 USD 13,500,000 2/06/2008 27,837 CHF 16,510,000 USD 14,653,543 2/13/2008 (30,543) USD 14,747,655 CHF 16,510,000 2/13/2008 124,652 USD 15,707,008 CZK 277,480,000 2/14/2008 433,252 USD 14,784,443 DKK 75,000,000 2/14/2008 70,150 USD 13,583,644 SGD 19,500,000 2/14/2008 (6,627) CAD 13,014,338 USD 13,106,081 2/19/2008 87,425 COP 10,120,000,000 USD 5,021,087 2/19/2008 (41,793) COP 10,075,000,000 USD 5,000,000 2/19/2008 (42,847) USD 12,837,311 CAD 13,014,338 2/19/2008 (356,194) USD 13,500,000 JPY 1,506,060,000 2/19/2008 (56,058) IDR 15,529,500,000 USD 1,700,000 4/04/2008 (57,849) ISK 479,900,000 EUR 5,000,000 9/24/2008 (175,969) ISK 403,020,000 USD 6,000,000 10/02/2008 (28,689) ------------------------------------------------------------------------------------- Total Unrealized Appreciation on Forward Foreign Exchange Contracts -- Net $ 191,234 ==========
See Notes to Financial Statements. 4 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 Statement of Assets, Liabilities and Capital As of December 31, 2007 =================================================================================================================================== Assets - ----------------------------------------------------------------------------------------------------------------------------------- Investments in unaffiliated securities, at value (identified cost -- $142,534,768) ................................................ $ 143,148,435 Cash ............................................................................... 7,640 Unrealized appreciation on forward foreign exchange contracts ...................... 1,182,728 Foreign cash (cost -- $6,395) ...................................................... 6,470 Interest receivable ................................................................ 461,978 ------------- Total assets ....................................................................... 144,807,251 ------------- =================================================================================================================================== Liabilities - ----------------------------------------------------------------------------------------------------------------------------------- Unrealized depreciation on forward foreign exchange contracts ...................... 991,494 Payables: Securities purchased ........................................................... $ 13,422,752 Dividends to Common Stock shareholders ......................................... 1,141,250 Investment adviser ............................................................. 97,972 14,661,974 ------------- Accrued expenses ................................................................... 108,399 ------------- Total liabilities .................................................................. 15,761,867 ------------- =================================================================================================================================== Net Assets - ----------------------------------------------------------------------------------------------------------------------------------- Net assets ......................................................................... $ 129,045,384 ============= =================================================================================================================================== Capital - ----------------------------------------------------------------------------------------------------------------------------------- Common Stock, par value $.001 per share, 100,000,000 shares authorized ............. $ 6,947 Paid-in capital in excess of par ................................................... 132,048,730 Undistributed investment income -- net ............................................. $ 594,525 Accumulated realized capital losses -- net ......................................... (4,473,591 Unrealized appreciation -- net ..................................................... 868,773 ------------- Total accumulated losses -- net .................................................... (3,010,293) ------------- Total capital -- Equivalent to $18.58 per share based on 6,946,895 shares of Common Stock outstanding (market price -- $17.55) ...................... $ 129,045,384 =============
See Notes to Financial Statements. GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 5 Statement of Operations For the Year Ended December 31, 2007 =================================================================================================================================== Investment Income - ----------------------------------------------------------------------------------------------------------------------------------- Interest -- net .................................................................... $ 9,808,616 =================================================================================================================================== Expenses - ----------------------------------------------------------------------------------------------------------------------------------- Investment advisory fees ........................................................... $ 1,234,512 Custodian fees ..................................................................... 104,627 Directors' fees and expenses ....................................................... 59,391 Transfer agent fees ................................................................ 36,050 Accounting services ................................................................ 34,725 Professional fees .................................................................. 33,912 Printing and shareholder reports ................................................... 25,510 Listing fees ....................................................................... 23,750 Repurchase offer ................................................................... 20,674 Other .............................................................................. 23,813 ------------- Total expenses before reimbursement ................................................ 1,596,964 Reimbursement of expenses .......................................................... (10,464) ------------- Total expenses after reimbursement ................................................. 1,586,500 ------------- Investment income -- net ........................................................... 8,222,116 ------------- =================================================================================================================================== Realized & Unrealized Gain (Loss) -- Net - ----------------------------------------------------------------------------------------------------------------------------------- Realized gain (loss) on: Investments -- net ............................................................. 7,003,385 Options written -- net ......................................................... (60,452) Foreign currency transactions -- net ........................................... (2,829,753) 4,113,180 ------------- Change in unrealized appreciation/depreciation on: Investments -- net ............................................................. (2,095,627) Foreign currency transactions -- net ........................................... 478,579 (1,617,048) ------------------------------- Total realized and unrealized gain -- net .......................................... 2,496,132 ------------- Net Increase in Net Assets Resulting from Operations ............................... $ 10,718,248 =============
See Notes to Financial Statements. 6 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 Statements of Changes in Net Assets
For the Period For the April 28, Year Ended 2006+ to December 31, December 31, Increase (Decrease) in Net Assets: 2007 2006 =================================================================================================================================== Operations - ----------------------------------------------------------------------------------------------------------------------------------- Investment income -- net ........................................................... $ 8,222,116 $ 5,195,899 Realized gain (loss) -- net ........................................................ 4,113,180 (284,747) Change in unrealized appreciation/depreciation -- net .............................. (1,617,048) 2,485,821 ------------------------------- Net increase in net assets resulting from operations ............................... 10,718,248 7,396,973 ------------------------------- =================================================================================================================================== Dividends & Distributions to Shareholders - ----------------------------------------------------------------------------------------------------------------------------------- Investment income -- net ........................................................... (14,209,304) (5,412,680) Realized gain -- net ............................................................... -- (1,524,204) Tax return of capital .............................................................. -- (236,486) ------------------------------- Net decrease in net assets resulting from dividends and distributions to shareholders .................................................... (14,209,304) (7,173,370) ------------------------------- =================================================================================================================================== Common Stock Transactions - ----------------------------------------------------------------------------------------------------------------------------------- Net proceeds from issuance of Common Stock ......................................... -- 140,385,000 Value of shares issued to Common Stock shareholders in reinvestment of dividends and distributions ................................................... 654,837 -- Offering costs resulting from the issuance of Common Stock ......................... -- (294,000) Net redemption of Common Stock resulting from a repurchase offer (including $8,861 of repurchase fees) ............................................ (8,533,008) -- ------------------------------- Net increase (decrease) in net assets resulting from Common Stock transactions ............................................................... (7,878,171) 140,091,000 ------------------------------- =================================================================================================================================== Net Assets - ----------------------------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets ............................................ (11,369,227) 140,314,603 Beginning of period ................................................................ 140,414,611 100,008 ------------------------------- End of period* ..................................................................... $ 129,045,384 $ 140,414,611 =============================== * Undistributed (accumulated distributions in excess of) investment income -- net .............................................................. $ 594,525 $ (336,943) ===============================
+ Commencement of operations. See Notes to Financial Statements. GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 7 Financial Highlights
For the Period For the April 28, Year Ended 2006+ to The following per share data and ratios have been derived December 31, December 31, from information provided in the financial statements. 2007 2006 =================================================================================================================================== Per Share Operating Performance - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period ................................................ $ 19.09 $ 19.10 ------------------------------ Investment income -- net*** ......................................................... 1.16 .71 Realized and unrealized gain -- net ................................................. .35 .30 ------------------------------ Total from investment operations .................................................... 1.51 1.01 ------------------------------ Less dividends and distributions: Investment income -- net ........................................................ (2.02) (.74) Realized gain -- net ............................................................ -- (.21) Tax return of capital ........................................................... -- (.03) ------------------------------ Total dividends and distributions ................................................... (2.02) (.98) ------------------------------ Offering costs resulting from the issuance of Common Stock .......................... -- (.04) ------------------------------ Net asset value, end of period ...................................................... $ 18.58 $ 19.09 ============================== Market price per share, end of period ............................................... $ 17.55 $ 18.05 ============================== =================================================================================================================================== Total Investment Return** - ----------------------------------------------------------------------------------------------------------------------------------- Based on net asset value per share .................................................. 8.60% 5.48%@ ============================== Based on market price per share ..................................................... 8.49% (4.76%)@ ============================== =================================================================================================================================== Ratios to Average Net Assets - ----------------------------------------------------------------------------------------------------------------------------------- Expenses, net of reimbursement ...................................................... 1.16% 1.19%* ============================== Expenses ............................................................................ 1.16% 1.19%* ============================== Investment income -- net ............................................................ 5.99% 5.45%* ============================== =================================================================================================================================== Supplemental Data - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) ............................................ $ 129,045 $ 140,415 ============================== Portfolio turnover .................................................................. 0%++ 0%++ ==============================
* Annualized. ** Total investment returns based on market value, 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. *** Based on average shares outstanding. + Commencement of operations. ++ 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. @ Aggregate total investment return. Notes to Financial Statements. 8 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 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 Fund's financial statements are prepared in conformity with U.S. generally accepted accounting principles, 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 Fund's Common Stock Shares are listed on the New York Stock Exchange ("NYSE") under the symbol GCF. 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. Effective September 4, 2007, exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade and previously were valued at the last sales price. In the case of options traded in the OTC market, valuation is the last asked price (options written) or the last bid price (options purchased). Swap agreements are valued based upon quoted fair valuations received daily by the Fund from a pricing service or the counterparty. 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 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 Fund's 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 Fund's 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 Fund's Board of Directors or by the investment adviser using a pricing service and/or procedures approved by the Fund's 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 both to increase the return of the Fund and to hedge, or protect, its exposure to interest rate movements and movements in the securities markets. 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. o 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 Fund's currency contracts. o Options -- The Fund may write and purchase call and put 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, GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 9 Notes to Financial Statements (continued) 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). Written and purchased options are non-income producing investments. o Swaps -- The Fund may enter into swap agreements, which are OTC contracts in which the Fund and a counterparty agree to make periodic net payments on a specified notional amount. The net payments can be made for a set period of time or may be triggered by a predetermined credit event. The net periodic payments may be based on a fixed or variable interest rate; the change in market value of a specified security, basket of securities, or index; or the return generated by a security. These periodic payments received or made by the Fund are recorded in the accompanying Statement of Operations as realized gains or losses, respectively. Gains or losses are realized upon termination of the swap agreements. Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). Risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms and the possible lack of liquidity with respect to the swap agreements. (d) Income taxes -- It is the Fund's 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 shareholders. Therefore, no federal income tax provision is required. Under the applicable foreign tax law, withholding taxes may be imposed on interest, dividends and capital gains at various rates. (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. A portion of the distributions paid by the Fund during the period April 29, 2006 to December 31, 2006 was characterized as a tax return of capital. (g) Offering expenses -- Direct expenses relating to the public offering of the Fund's Common Stock were charged to capital at the time of issuance of the shares. (h) Recent accounting pronouncements -- Effective June 29, 2007, the Fund implemented Financial Accounting Standards Board ("FASB") Interpretation No. 48, "Accounting for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109" ("FIN 48"). FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including investment companies, before being measured and recognized in the financial statements. Management has evaluated the application of FIN 48 to the Fund, and has determined that the adoption of FIN 48 does not have a material impact on the Fund's financial statements. The Fund files U.S. and various state tax returns. No income tax returns are currently under examination. All tax years of the Fund are open at this time. In September 2006, Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The impact on the Fund's financial statement disclosures, if any, is currently being assessed. In addition, in February 2007, Statement of Financial Accounting Standards No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities" ("FAS 159") was issued and is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of FAS 157. FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. The impact on the Fund's financial statement disclosures, if any, is currently being assessed. 10 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 Notes to Financial Statements (continued) (i) Reclassifications -- U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. Accordingly, during the current year, $6,897,982 has been reclassified between undistributed net realized capital gains and accumulated distributions in excess of net investment income and $20,674 has been reclassified between paid-in capital in excess of par and accumulated distributions in excess of net investment income as a result of permanent differences attributable to foreign currency transactions and non-deductible expenses. These reclassifications have no effect on net assets or net asset values per share. 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"), an indirect subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."). IQ is responsible for the investment advisory, management and administrative services to the Fund. In addition, IQ 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 Fund's net assets plus borrowings for leverage and other investment purposes. IQ entered into a Subadvisory Agreement with Nuveen Asset Management ("NAM"), pursuant to which Nuveen was responsible for providing certain investment advisory services to IQ with respect to the Fund. For such services, IQ agreed to pay NAM a monthly fee at an annual rate equal to .40% of the average daily value of the Fund's net assets plus borrowings for leverage and other investment purposes. The Fund does not make any direct payment to NAM for subadvisory services. On June 20, 2007, Nuveen Investments Inc. ("Nuveen Investments"), the parent company of NAM announced that it had entered into a definitive Agreement and Plan of Merger (the "Merger Agreement") to be acquired by an investor group majority-led by Madison Dearborn Partners, LLC. The investor group's financial advisors and investors include ML & Co. and Merrill Lynch Global Private Equity (both affiliates of IQ). The merger, which was consummated in November 2007, resulted in an "assignment" (as defined in the Investment Company Act of 1940) of the current Subadvisory Agreement between IQ and NAM, causing its automatic termination. At a meeting held on July 24, 2007, the Board of Directors of the Fund approved a new investment subadvisory agreement for the Fund to be presented to shareholders for approval. The new subadvisory agreement contains substantially the same terms as the existing Subadvisory Agreement for the Fund, including the same subadvisory fee. In order to ensure continuity of services to the Fund, in the event that the merger was consummated prior to the shareholder vote (as was the case), the Fund's Board, in reliance on Rule 15a-4 under the Investment Company Act, also approved an interim subadvisory agreement for the Fund with a term of up to 150 days pending approval of the new subadvisory agreement by shareholders. The Board determined that the scope and quality of services to be provided under the interim subadvisory agreement were equivalent to the existing subadvisory agreement and that other than the dates, parties and provisions required by Rule 15a-4, there were no material differences between the interim subadvisory agreement and the existing Subadvisory Agreement. At a shareholder meeting held on January 10, 2008, the new subadvisory agreement was approved. IQ has entered into an Administration Agreement with Princeton Administrators, LLC (the "Administrator"). The Administration Agreement provides that IQ pays the Administrator a fee from its investment advisory fee at an annual rate equal to .12% of the average daily value of the Fund's net assets plus borrowings for leverage and other investment purposes, for the performance of administrative and other services necessary for the operation of the Fund. There is no increase in the aggregate fees paid by the Fund for these services. The Administrator is an indirect subsidiary of BlackRock, Inc. ML & Co. is a principal owner of BlackRock, Inc. Certain officers of the Fund are officers and/or directors of IQ, ML & Co., BlackRock, Inc. or its affiliates. GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 11 Notes to Financial Statements (concluded) 3. Investments: There were no purchases or sales of long-term investments for the year ended December 31, 2007. Transactions in options written for the year ended December 31, 2007 were as follows: - ------------------------------------------------------------------------------- Number of Premiums Call Options Written Contracts Received - ------------------------------------------------------------------------------- Outstanding call options written, beginning of year ................................ -- -- Options written .................................... 14,000 $ 210,700 Options closed ..................................... (14,000) (210,700) --------------------- Outstanding call options written, end of year ...................................... -- -- ===================== 4. Common Stock Transactions: The Fund is authorized to issue 100,000,000 shares of 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 year ended December 31, 2007 decreased by 443,043 as a result of a repurchase offer and increased by 34,702 as a result of dividend reinvestment. For the period April 28, 2006 to December 31, 2006, shares issued and outstanding increased by 7,350,000 from shares sold. 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 Shareholders: The tax character of distributions paid during the year ended December 31, 2007 and the period April 28, 2006 to December 31, 2006 was as follows: - -------------------------------------------------------------------------------- 4/28/2006+ to 12/31/2007 12/31/2006 - -------------------------------------------------------------------------------- Distributions paid from: Ordinary income ............................ $14,209,304 $6,936,884 Tax return of capital ...................... -- 236,486 --------------------------- Total distributions .......................... $14,209,304 $7,173,370 =========================== + Commencement of operations. As of December 31, 2007, the components of accumulated losses on a tax basis were as follows: - ----------------------------------------------------------------------------- Undistributed ordinary income -- net ......................... $ 594,525 Undistributed long-term capital gains -- net ................. -- ----------- Total undistributed earnings -- net .......................... 594,525 Capital loss carryforward .................................... (3,235,195)* Unrealized losses -- net ..................................... (369,623)** ----------- Total accumulated losses -- net .............................. $(3,010,293) =========== * On December 31, 2007, the Fund had a net capital loss carryforward of $3,235,195, all of which expires in 2015. This amount will be 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 deferral of post-October capital losses for tax purposes and the realization for tax purposes of unrealized gains (losses) on certain foreign currency contracts. 12 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors of Global Income & Currency Fund Inc.: We have audited the accompanying statement of assets, liabilities and capital, including the schedule of investments, of Global Income & Currency Fund Inc. as of December 31, 2007, and the related statement of operations for the year ended, and the statements of changes in net assets and the financial highlights for the year then ended and for the period April 28, 2006 (commencement of operations) through December 31, 2006. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits 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 and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also 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, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2007, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Global Income & Currency Fund Inc. as of December 31, 2007, the results of its operations for the year ended, and the changes in its net assets and its financial highlights for the year then ended, and for the period April 28, 2006 through December 31, 2006, in conformity with accounting principles generally accepted in the United States of America. Deloitte & Touche LLP Princeton, NJ February 29, 2008 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 13 Fundamental Periodic Repurchase Policy The Board of Directors approved a fundamental policy whereby the Fund would adopt an "interval fund" structure pursuant to Rule 23c-3 under the Investment Company Act of 1940 (the "1940 Act"), as amended. 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 Fund's Board of Directors shortly before the commencement of each offer, and will be between 5% and 25% of the Fund's then outstanding shares. The Fund has adopted the following fundamental policy regarding periodic repurchases: a) The Fund will make offers to repurchase its shares at annual (approximately 12-month) intervals pursuant to Rule 23c-3 under the 1940 Act ("Offers"). The Board of Directors may place such conditions and limitations on an Offer, as may be permitted under Rule 23c-3. b) The repurchase request deadline for each Offer, by which the Fund must receive repurchase requests submitted by 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 Fund's prospectus); and will be the fourteenth day prior to such exercise date; provided, that in the event that such day is not a business day, the repurchase request deadline will be the business day subsequent to the fourteenth day prior to the exercise date of the call spreads and written call options (the "Repurchase Request Deadline"). c) The maximum number of days between a Repurchase Request Deadline and the next repurchase pricing date will be fourteen days; provided that if the fourteenth day after a Repurchase Request Deadline is not a business day, the repurchase pricing date shall be the next business day (the "Repurchase Pricing Date"). d) Offers may be suspended or postponed under certain circumstances, as provided for in Rule 23c-3. 14 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 Fund Certification In May 2007, 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 Fund's Chief Executive Officer and Chief Financial Officer Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 were filed with the Fund's Form N-CSR and are available on the Securities and Exchange Commission's website at http://www.sec.gov. Important Tax Information The following information is provided with respect to the ordinary income distributions paid by Global Income & Currency Fund Inc. during the fiscal year ended December 31, 2007: - -------------------------------------------------------------------------------- Federal Obligation Interest ....................................... 9.55%* Interest-Related Dividends for Non-U.S. Residents ................. 23.16%** - -------------------------------------------------------------------------------- * The law varies in each state as to whether and what percentage of dividend income attributable to federal obligations is exempt from state income tax. We recommend that you consult your tax adviser to determine if any portion of the dividends you received is exempt from state income tax. ** Represents the portion of the dividends paid that are eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations. GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 15 Approval of New Subadvisory Agreement The Board of Directors (the "Board" or the "Directors") of Global Income & Currency Fund Inc. (the "Fund"), currently consisting solely of Directors that are not "interested persons" of the Fund (the "non-interested Directors"), as such term is defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the "Investment Company Act"), previously approved a subadvisory agreement (the "Subadvisory Agreement") between IQ Investment Advisors LLC, the Fund's investment adviser ("IQ Advisors" or the "Adviser"), and Nuveen Asset Management, the Fund's subadviser ("NAM" or the "Subadviser"). On June 20, 2007, Nuveen Investments, Inc. ("Nuveen Investments"), the parent company of NAM, announced that it had entered into a definitive Agreement and Plan of Merger (the "Merger") to be acquired by an investor group majority-led by Madison Dearborn Partners, LLC. The Merger, when consummated, has the effect of causing the Fund's Subadvisory Agreement to be terminated pursuant to the terms of the Subadvisory Agreement. In anticipation of the consummation of the Merger, the Board of the Fund met in person on July 24, 2007 for purposes of, among other things, considering whether it would be in the best interests of the Fund and its stockholders to approve a new subadvisory agreement (the "New Subadvisory Agreement") that would take effect upon the termination of the existing Subadvisory Agreement. The Board also approved an interim subadvisory agreement between NAM and IQ Advisors that would take effect (and continue for no more than 150 days) if the Merger was consummated prior to shareholder approval of the New Subadvisory Agreement. The Board considered substantially the same factors in approving the interim subadvisory agreement as were considered in approving the New Subadvisory Agreement. The Merger was approved by the stockholders of Nuveen Investments in November 2007. At that time, Nuveen Investments ceased to be a publicly traded company and is now privately held by an investor group that includes Merrill Lynch, an affiliate of the Adviser. The shareholders of the Fund approved the New Subadvisory Agreement on January 10, 2008. The following discussion summarizes the information considered and the conclusions made by the Board in approving the New Subadvisory Agreement. In considering approval of the New Subadvisory Agreement between IQ Advisors and the Subadviser, the Board received and discussed various materials provided to it in advance of the July 24, 2007 meeting which included, among other things, a copy of the form of New Subadvisory Agreement, the materials the Board had received in connection with its consideration and approval of the then existing Subadvisory Agreement, due diligence materials from the Subadviser and a report on the Merger. In addition, the Board considered materials received at previous meetings of the Board regarding the Fund. At the July 24, 2007 Board meeting, representatives of NAM made a presentation regarding the Merger and responded to questions from the Board. The non-interested Directors discussed the presentation given at the meeting by representatives of the Subadviser and the materials distributed in connection therewith, which provided information about the transaction that would cause the change in control of the Subadviser and the termination of the then existing Subadvisory Agreement. The non-interested Directors met privately with their legal counsel to review the Board's duties in reviewing a subadvisory agreement and approving the New Subadvisory Agreement. The Board considered all factors it believed relevant with respect to the Fund, including the following: (a) the nature, extent and quality of the services to be provided by the Subadviser; (b) the investment performance of the Fund and the Subadviser; (c) the costs of the services to be provided and profits to be realized by the Subadviser from its relationship with the Fund; and (d) the extent to which economies of scale could be realized as the Fund grows and whether fee levels reflect these economies of scale for the benefit of Fund investors. 16 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 (a) Nature, Extent and Quality of Services -- In connection with their consideration of the New Subadvisory Agreement, the Directors considered representations by the Adviser and the Subadviser that there would be no diminution in the services to be rendered to the Fund by the Adviser and the Subadviser, respectively, as a result of the change in control of the Subadviser and the effectiveness of the New Subadvisory Agreement. The Board noted that representatives of the Subadviser stated that they did not anticipate any change in their personnel responsible for providing services to the Fund, and in particular that the investment and compliance personnel of the Subadviser were not expected to change as a result of the change in control of the Subadviser. In reviewing the New Subadvisory Agreement, the Directors focused on the experience of the Subadviser in managing registered funds. The Board considered the reputation and investment experience of the Subadviser and its investment professionals who would continue to serve as portfolio managers after the change in control. The Board noted the representations of the Subadviser that the change in control would have no adverse effect on the experience, resources and strengths of the Subadviser in managing investment companies. The Board then discussed the Subadviser's anticipated financial condition after the change in control. The Board noted statements from the Subadviser's representatives that the financial position of the Subadviser would not be negatively affected by the Merger. The Board also considered representations from the Subadviser that the change in control would not have an effect on the Subadviser's compliance personnel or compliance procedures. The Board then discussed the due diligence performed by personnel of the Adviser regarding the Subadviser. Based on the discussions held and the materials presented at these meetings and prior meetings, the Board determined that the proposed change in control of the Subadviser would not likely cause an adverse change in the nature, extent and quality of the services to be provided by the Subadviser under the New Subadvisory Agreement. In addition, the Board was of the view that the Subadviser had evidenced a commitment to maintaining a culture of compliance that would continue after the Merger. (b) The Investment Performance of the Fund and the Subadviser -- The Directors reviewed the investment performance of the Fund, and primarily based their evaluation of the Subadviser on the Fund's performance for the limited period that the Fund had been in operation. The Directors considered the history, experience, resources and strengths of the Subadviser in developing and implementing the investment strategies used by the Fund. The Directors noted that the Fund uses an innovative investment strategy and that comparisons of the Fund's investment performance to the performance of other investment companies was generally not meaningful. The Directors reviewed the Fund's investment performance and compared such performance to the performance of a relevant reference index. The Directors discussed the degree to which the Fund was achieving its investment objective, noting that the Fund had been in operation for a relatively short period of time. In particular, the Directors noted that the Fund generally performed as expected relative to its reference index. As a result of their discussions and review, the Directors concluded that the Fund's performance was satisfactory. The Board did not specifically consider the Subadviser's performance with respect to most other accounts it manages, because these accounts might have investment objectives, policies or restrictions different from those of the Fund. The Board considered the reputation and investment experience of the Subadviser and its investment professionals. The Board discussed the experience, resources and strengths of the Subadviser in managing or sponsoring investment companies. The Board also considered the experience of the Fund's portfolio managers and discussions held with the managers regarding implementation of the Fund's investment programs. Following their deliberations, the Board concluded that, while past performance is not an indicator of future performance, the Subadviser should likely be able to continue to effectively implement the Fund's investment strategy in attempting to meet the Fund's investment objective. GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 17 Approval of New Subadvisory Agreement (concluded) (c) Fees and Profitability of the Subadviser -- The Board considered representations by the Adviser and the Subadviser that there would be no change in the allocation of the management fees between the Adviser and Subadviser in relation to the services provided by the Subadviser, as a result of the change in control of Nuveen Investments and the effectiveness of the New Subadvisory Agreement. In considering the compensation to be paid to the Subadviser, noting that no changes to such compensation from that payable under the then existing Subadvisory Agreement was proposed, the Board referred to the materials presented and discussions held in connection with their consideration of the then existing Subadvisory Agreement for the Fund. The Board noted that in connection with such considerations they had received and reviewed fee comparison data from Lipper Inc. (which included information regarding the fees paid by certain investment advisers to subadvisers of peer funds), and concluded that such information continued to be relevant to their current deliberations. In reviewing that data, the Board noted that the subadvisory fee with respect to the Fund was at a level that continued to be reasonable and similar to that of comparable funds. Taking into account the totality of the information and materials provided to them at these meetings and at prior meetings, including, among other things, the fact that the subadvisory fees were negotiated by the Adviser on an arm's-length basis, the Board concluded that the subadvisory fees proposed under the New Subadvisory Agreement continued to be reasonable for the services to be rendered. (d) Economies of Scale and Whether Fee Levels Reflect these Economies of Scale - -- The Board also considered whether the Fund would be able to participate in any economies of scale that the Subadviser may experience given present asset levels of the Fund. On this point, the Board noted the uncertainty of the asset levels of the Fund going forward. The Board discussed the renewal requirements for investment advisory agreements in general, and determined to revisit this issue from time to time. The Board's Conclusions About the New Subadvisory Agreement The Board examined the totality of the information they were provided and did not identify any single factor discussed previously as controlling. The Board, including all of the non-interested Directors, concluded that the terms of the New Subadvisory Agreement were fair and reasonable, that the Subadviser's fees are reasonable in light of the services to be provided to the Fund, and that the New Subadvisory Agreement should be approved and recommended to the Fund's stockholders. 18 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 Automatic Dividend Reinvestment Plan How the Plan Works -- The Fund offers a Dividend Reinvestment Plan (the "Plan") under which income and capital gains dividends 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 The Bank of New York Mellon (the "Plan Agent"). Under the Plan, whenever the Fund declares a dividend, 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 participant's 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 dividend payment date, the Fund's 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 dividend amount in newly issued shares. If the Fund's 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 dividend amount by purchasing on the open market additional shares. If the Plan Agent is unable to invest the full dividend 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 shareholder's account. The amount credited is determined by dividing the dollar amount of the dividend 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 dividend 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 Fund's 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 Agent's 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 dividends and distributions will not relieve participants of any federal, state or local income tax that may be payable (or required to be withheld) on such dividends. Therefore, income and capital gains may still be realized even though shareholders do not receive cash. Participation in the Plan generally will not affect the tax-exempt status of exempt interest dividends paid by the Fund. If, when the Fund's 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 Fund's 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. GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 19 Directors and Officers
Number of IQ Advisors- Affiliate Advised Funds Other Public Position(s) Length of and Portfolios Directorships Held with Time Overseen By Held by Name Address & Age Fund Served** Principal Occupation(s) During Past 5 Years Director Director ==================================================================================================================================== Non-Interested Directors* - ------------------------------------------------------------------------------------------------------------------------------------ Paul P.O. Box 9095 Director & 2006 to Professor, Columbia University Business School 11 None Glasserman Princeton, NJ Chairman of present since 1991; Senior Vice Dean since July 2004. 08543-9095 the Audit Age: 45 Committee - ------------------------------------------------------------------------------------------------------------------------------------ Steven W. P.O. Box 9095 Director & 2006 to Retired since August 2002; Managing Director, 11 Ametek, Inc. Kohlhagen Princeton, NJ Chairman of present Wachovia National Bank and its predecessors 08543-9095 Nominating (1992 - 2002). Age: 60 & Corporate Governance Committee - ------------------------------------------------------------------------------------------------------------------------------------ William J. P.O. Box 9095 Director & 2006 to Retired since November 2004; Chairman and 11 None Rainer Princeton, NJ Chairman of present Chief Executive Officer, OneChicago, LLC, a 08543-9095 the Board designated contract market (2001 - 2004); Age: 61 Chairman, U.S. Commodity Futures Trading Commission (1999 - 2001). - ------------------------------------------------------------------------------------------------------------------------------------ Laura S. P.O. Box 9095 Director 2007 to Independent Consultant; Commissioner of the 11 CA, Inc. Unger Princeton, NJ present Securities and Exchange Commission (1997 - (software) and 08543-9095 2002), including Acting Chairperson of the SEC Ambac Financial Age: 46 from February to August 2001; Regulatory Expert Group, Inc. for CNBC (2002 - 2003). ------------------------------------------------------------------------------------------------------------------------ * 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 Fund's Bylaws, charter or by statute.
20 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 Directors and Officers (concluded)
Position(s) Length of Held with Time Name Address & Age Fund Served Principal Occupation(s) During Past 5 Years ==================================================================================================================================== Fund Officers* - ------------------------------------------------------------------------------------------------------------------------------------ Mitchell P.O. Box 9011 President 2006 to IQ Investment Advisors LLC, President since April 2004; MLPF&S, Managing M. Cox Princeton, NJ present Director, Head of Global Investments & Insurance Solutions and Head of Global 08543-9011 Alternative Investments since 2008; MLPF&S, Managing Director, Head of Financial Age: 42 Products Group since 2007; Head of Global Wealth Management Market Investments & Origination (2003 - 2007); MLPF&S, FAM Distributors ("FAMD"), Director since 2006; IQ Financial Products LLC, Director since 2006. - ------------------------------------------------------------------------------------------------------------------------------------ Justin C. P.O. Box 9011 Vice 2006 to IQ Investment Advisors LLC, Vice President since 2005; MLPF&S, Managing Ferri Princeton, NJ President present Director, Structured and Alternative Solutions since 2008; MLPF&S, Director, 08543-9011 Structured and Alternative Solutions in 2007; Director, Global Wealth Management Age: 32 Market Investments & Origination (2005 - 2007); MLPF&S, Vice President, Global Private Client Market Investments & Origination (2005); MLPF&S, Vice President, Head of Global Private Client Rampart Equity Derivatives (2004 - 2005); MLPF&S, Vice President, Co-Head Global Private Client Domestic Analytic Development (2002 - 2004); mPower Advisors LLC, Vice President, Quantitative Development (1999 - 2002). - ------------------------------------------------------------------------------------------------------------------------------------ Donald C. P.O. Box 9011 Vice 2006 to IQ Investment Advisors LLC, Secretary and Treasurer (2004 - March 2007); Burke Princeton, NJ President present BlackRock, Inc., Managing Director since 2006; Merrill Lynch Investment 08543-9011 and Managers, L.P. ("MLIM") and Fund Asset Management ("FAM") Managing Director Age: 47 Secretary (2006); MLIM and FAM, First Vice President (1997 - 2005) and Treasurer (1999 - 2006); Princeton Services, Inc., Senior Vice President and Treasurer (1999 - 2006). - ------------------------------------------------------------------------------------------------------------------------------------ James E. P.O. Box 9011 Vice 2007 to IQ Investment Advisors LLC, Treasurer since March 2007; MLPF&S, Director, Hillman Princeton, NJ President present Structured and Alternative Solutions since 2007; Director, Global Wealth 08543-9011 and Management Market Investments & Origination (September 2006 - 2007); Managed Age: 50 Treasurer Account Advisors LLC, Vice President and Treasurer since November 2006; Director, Citigroup Alternative Investments Tax Advantaged Short Term Fund in 2006; Director, Korea Equity Inc. Fund in 2006; Independent Consultant, January to September 2006; Managing Director, The Bank of New York, Inc. (1999 - 2006). - ------------------------------------------------------------------------------------------------------------------------------------ Catherine P.O. Box 9011 Chief 2007 to IQ Investment Advisors LLC, Chief Compliance Officer since April 2007; Merrill A. Princeton, NJ Compliance present Lynch & Co., Inc., Director, Corporate Compliance since September 2007; Johnston 08543-9011 Officer BlackRock, Inc., Director (2006 - 2007); MLIM, Director (2003 - 2006), Vice Age: 53 President (1998 - 2003). - ------------------------------------------------------------------------------------------------------------------------------------ Martin G. P.O. Box 9011 Chief 2006 to IQ Investment Advisors LLC, Chief Legal Officer since June 2006; Merrill Lynch & Byrne Princeton, NJ Legal present Co., Inc., Office of General Counsel, Managing Director since 2006, First Vice 08543-9011 Officer President (2002 - 2006), Director (2000 - 2002); Managed Account Advisors LLC, Age: 45 Chief Legal Officer since November 2006; FAMD, Director since 2006. - ------------------------------------------------------------------------------------------------------------------------------------ Jay M. P.O. Box 9011 Vice 2006 to IQ Investment Advisors LLC, Vice President (2005 - March 2007); BlackRock, Inc., Fife Princeton, NJ President present Managing Director since 2007; BlackRock, Inc., Director in 2006; MLIM, Director 08543-9011 (2000 - 2006); MLPF&S, Director (2000) and Vice President (1997 - 2000). Age: 37 - ------------------------------------------------------------------------------------------------------------------------------------ Colleen R. P.O. Box 9011 Vice 2006 to IQ Investment Advisors LLC, Chief Administrative Officer and Secretary since Rusch Princeton, NJ President present 2007, Vice President since 2005; MLPF&S, Director, Structured and Alternative 08543-9011 and Solutions since 2007; MLPF&S, Director, Global Wealth Management Market Age: 40 Assistant Investments & Origination (2005 - 2007); MLIM, Director from January 2005 to Secretary July 2005; Vice President of MLIM (1998 - 2004). ------------------------------------------------------------------------------------------------------------------------ * Officers of the Fund serve at the pleasure of the Board of Directors. - ------------------------------------------------------------------------------------------------------------------------------------
Custodian State Street Bank and Trust Company P.O. Box 351 Boston, MA 02101 Transfer Agent BNY Mellon Shareowner Services 480 Washington Boulevard Jersey City, NJ 07310 NYSE Symbol GCF GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 21 Proxy Results During the six-month period ended December 31, 2007, Global Income & Currency Fund Inc.'s shareholders voted on the following proposal. On November 13, 2007 and December 21, 2007, special meetings of shareholders were adjourned with respect to the proposal until January 10, 2008, at which time it was approved. A description of the proposal and number of shares voted are as follows:
- ----------------------------------------------------------------------------------------------------- Shares Voted Shares Voted Shares Voted For Against Abstain - ----------------------------------------------------------------------------------------------------- To approve a new investment subadvisory agreement with Nuveen Asset Management 3,250,207 121,078 117,769 - -----------------------------------------------------------------------------------------------------
22 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 Availability of Quarterly Schedule of Investments The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q are available on the SEC's website at http://www.sec.gov. The Fund's Forms N-Q may also be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Electronic Delivery The Fund offers electronic delivery of communications to its shareholders. 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. Contact Information For more information regarding the Fund, please visit www.IQIAFunds.com or contact us at 1-877-449-4742. GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 23 [LOGO] IQ INVESTMENT ADVISORS 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 shareholders of Global Income & Currency Fund Inc. for their information. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. Statements and other information herein are as dated and are subject to change. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge at www.IQIAFunds.com/proxyvoting.asp or upon request by calling toll-free 1-877-449-4742 or through the Securities and Exchange Commission's website at http://www.sec.gov. Information about how the Fund voted proxies relating to securities held in the Fund's portfolio during the most recent 12-month period ended June 30 is available (1) at www.IQIAFunds.com/proxyvoting.asp; and (2) on the Securities and Exchange Commission's website at http://www.sec.gov. Global Income & Currency Fund Inc. P.O. Box 9011 Princeton, NJ 08543-9011 #IQGCF -- 12/07 Item 2 - 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 registrant's 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. Item 3 - Audit Committee Financial Expert - The registrant's board of directors has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent: (1) Alan R. Batkin (resigned as of February 22, 2007) and (2) Steven W. Kohlhagen. 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. Item 4 - Principal Accountant Fees and Services
- ---------------------------------------------------------------------------------------------------------------------------------- (a) Audit Fees (b) Audit-Related Fees(1) (c) Tax Fees(2) (d) All Other Fees - ---------------------------------------------------------------------------------------------------------------------------------- Current Previous Current Previous Current Previous Current Previous Fiscal Year Fiscal Fiscal Year Fiscal Fiscal Year Fiscal Fiscal Year Fiscal Entity Name End Year End End Year End End Year End End Year End - ---------------------------------------------------------------------------------------------------------------------------------- Global Income & Currency Fund Inc. $28,000 $33,200 $0 $7,200 $8,500 $7,500 $0 $0 - ----------------------------------------------------------------------------------------------------------------------------------
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 registrant's 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 registrant's 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 SEC's 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: -------------------------------------------------------------------- Current Fiscal Previous Fiscal Entity Name Year End Year End -------------------------------------------------------------------- Global Income & Currency Fund Inc. $2,102,500 $1,975,700 -------------------------------------------------------------------- (h) The registrant's audit committee has considered and determined that the provision of non-audit services that were rendered to the registrant's investment adviser (not including any non-affiliated sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by the registrant's 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 accountant's independence. Regulation S-X Rule 2-01(c)(7)(ii) - $0, 0% Item 5 - Audit Committee of Listed Registrants - The following individuals are members of the registrant's separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)): Alan R. Batkin (resigned as of February 22, 2007) Steven W. Kohlhagen Paul Glasserman William J. Rainer Laura S. Unger (effective September 12, 2007) Item 6 - Schedule of Investments - The registrant's Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form. Item 7 - 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-advisor, 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. Item 8 - Portfolio Managers of Closed-End Management Investment Companies - as of December 31, 2007. (a)(1) Mr. Andrew J. Stenwall is responsible for the the day-to-day management of the registrant's portfolio since 2006. Mr. Stenwall leads the Sub-adviser's 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 BACAP's taxable fixed income management and the leader of its structured products. (a)(2) As of December 31, 2007:
----------------------------------------------------------------------------------------------------------------------- (iii) Number of Other Accounts and (ii) Number of Other Accounts Managed Assets for Which Advisory Fee is and Assets by Account Type Performance-Based ----------------------------------------------------------------------------------------------------------------------- Other Other Other Other (i) Name of Registered Pooled Registered Pooled Portfolio Investment Investment Other Investment Investment Other Manager Companies Vehicles Accounts Companies Vehicles Accounts ----------------------------------------------------------------------------------------------------------------------- Andrew J. Stenwall 7 0 4079 0 0 0 ----------------------------------------------------------------------------------------------------------------------- $1,163,950,000 $0 $661,252,564 $0 $0 $0 -----------------------------------------------------------------------------------------------------------------------
(iv) Potential Material Conflicts of Interest The Sub-adviser's Taxable Fixed Income Team's 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, 2007: 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-adviser's parent company, Nuveen Investments, Inc. These reviews and evaluations take into account a number of factors, including the effectiveness of the team's 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 Fund's ability to meet the Fund's investment objective), the team's and the individual's effectiveness in communicating investment performance to shareholders and their representatives, the team's and the individual's contribution to the Sub-adviser's investment process and execution of investment strategies, and the team's 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 individual's long-term potential with the firm. (a)(4) Beneficial Ownership of Securities. As of December 31, 2007, Mr. Stenwall did not beneficially own any stock issued by the Fund. Item 9 - 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. Item 10 - Submission of Matters to a Vote of Security Holders - The registrant's Nominating and Corporate Governance Committee will consider nominees to the Board recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations which include biographical information and set forth the qualifications of the proposed nominee to the registrant's Secretary. There have been no material changes to these procedures. Item 11 - Controls and Procedures 11(a) - The registrant's principal executive and principal financial officers or persons performing similar functions have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities and Exchange Act of 1934, as amended. 11(b) - There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 12 - Exhibits attached hereto 12(a)(1) - Code of Ethics - 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. Global Income & Currency Fund Inc. By: /s/ Mitchell M. Cox -------------------- Mitchell M. Cox Chief Executive Officer (principal executive officer) of Global Income & Currency Fund Inc. Date: February 20, 2008 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Mitchell M. Cox -------------------- Mitchell M. Cox Chief Executive Officer (principal executive officer) of Global Income & Currency Fund Inc. Date: February 20, 2008 By: /s/ James E. Hillman -------------------- James E. Hillman Chief Financial Officer (principal financial officer) of Global Income & Currency Fund Inc. Date: February 20, 2008 EX-99.PROXYPOL 2 e603441_ex99-proxypol.txt DRAFT 2/5/07 PROXY VOTING POLICIES AND PROCEDURES FOR NUVEEN ASSET MANAGEMENT- DIRECT MANAGEMENT OF EQUITY ACCOUNTS Introduction Nuveen Asset Management ("NAM") provides direct (i.e., not through a delegation to a sub-adviser) investment management services in equity strategies to certain registered investment companies ("Equity Accounts"). NAM maintains separate procedures with respect to providing direct services in fixed income strategies or to registered funds in which a subadviser exercises investment and voting discretion. With respect to the Equity Accounts, NAM has engaged Institutional Shareholder Services, Inc. ("ISS") to vote proxies for securities held in client accounts, whether or not the proxy presented NAM with a material conflict of interest. A member of NAM's legal and compliance department will monitor the administration of the voting, ensure that records were maintained in accordance with Rule 206(4)-6, and ensure that records of proxy voting information were made available to the Equity Accounts. Based on the information provided, each Equity Account would be responsible for preparing and making any required filings (e.g., Form N-PX). Exceptions to Voting Securities NAM may instruct ISS not to vote proxies in respect of securities of any issuer if it determines it would be in its clients' overall best interests not to vote. Such determination may apply in respect of all client holdings of the securities or only certain specified clients, as NAM deems appropriate under the circumstances. Generally, NAM would instruct ISS not to vote proxies associated with the securities of any issuer if as a result of voting, subsequent purchases or sales of such securities would be blocked. However, NAM may decide, on an individual security basis, that it is in the best interests of its clients for ISS to vote the proxy associated with such a security, taking into account the loss of liquidity. In addition, NAM may instruct ISS not to vote proxies where the voting would in NAM's judgment result in some other financial, legal, regulatory disability or burden to NAM or the client (such as imputing control with respect to the issuer). To the extent that NAM receives proxies for securities that are transferred into a client's portfolio that were not recommended or selected by NAM and are sold or expected to be sold promptly in an orderly manner ("legacy securities"), NAM will generally instruct ISS to refrain from voting such proxies. In such circumstances, since legacy securities are expected to be sold promptly, voting proxies on such securities would not further NAM's interest in maximizing the value of client investments. NAM may agree to an institutional client's special request to vote a legacy security proxy, and would instruct ISS to vote such proxy in accordance with its guidelines. In addition, NAM may determine: (a) not to recall securities on loan if, in its judgment, the negative consequences to clients of disrupting the securities lending program would outweigh the benefits of voting in the particular instance or, (b) not to vote a proxy if, in its judgment, the expense and administrative inconvenience outweighs the benefits to clients of voting the securities. Exceptions to ISS voting of proxies If NAM determines that it wishes to override ISS's recommendations and vote the proxy, it must first determine whether voting the proxy would present it with a material conflict of interest. Voting the securities of an issuer where the following relationships or circumstances exist is deemed to give rise to a material conflict of interest for purposes of these Policies and Procedures: o The issuer is an investment advisory client of NAM that pays (or is expected to pay) fees to NAM in excess of 1% of NAM's annual revenue in the year in which the proxy is to be voted. o The issuer is an entity in which an executive officer of NAM or a relative(1) of any such person is or was (within the past three years of the proxy vote) an executive officer or director or employee. o Any other circumstance that NAM is aware of where NAM's duty to serve its clients' interests, typically referred to as its "duty of loyalty," could be materially compromised. A conflict of interest shall not be considered material for the purposes of these Policies and Procedures in respect of a specific vote or circumstance if the matter to be voted on relates to a restructuring of the terms of existing securities or the issuance of new securities or a similar matter arising out of the holding of securities, other than common equity, in the context of a bankruptcy or threatened bankruptcy of the issuer, even if a conflict described in the three bullets above is present. In its process of determining whether there are material conflicts of interest, NAM does not consider nonpublic information about the business arrangements of its affiliates or their officers and directors. Business arrangements that NAM is not actively involved in shall not be deemed to raise a material conflict of interest for NAM. NAM must document its reason(s) for voting the proxy in a manner contrary to ISS's recommendations. Recordkeeping and Retention NAM shall retain records relating to the voting of proxies, including: Copies of these Policies and Procedures and any amendments thereto. - ---------- (1) For the purposes of these Guidelines, "relative" includes the following family members: spouse, non-minor children or stepchildren living in the same household. A copy of each proxy ballot and proxy statement filed by the issuer with the Securities and Exchange Commission ("Proxy Statement") that NAM receives regarding client securities. Records of each vote cast on behalf of clients; these records may be maintained on an aggregate basis. A copy of any documents created by NAM that were material to making a decision on how to vote or that memorializes the basis for that decision. A copy of each written request for information on how NAM voted proxies on behalf of the client, and a copy of any written response by NAM to any (oral or written) request for information on how NAM voted. These records shall be maintained and preserved in an easily accessible place for a period of not less than five years from the end of NAM's fiscal year during which the last entry was made in the records, the first two years in an appropriate office of NAM. NAM may rely on proxy statements filed on the SEC's EDGAR system or on proxy statements and records of votes maintained by ISS or another third party service provider. Adopted: February 28, 2007 DRAFT 2/5/07 EXHIBIT A ISS Proxy Voting Guidelines Summary EX-99.CERT 3 e603441_ex99-cert.txt EX-99. CERT CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 - -------------------------------------------------------------------------------- I, Mitchell M. Cox, Chief Executive Officer (principal executive officer) of Global Income & Currency Fund Inc., certify that: 1. I have reviewed this report on Form N-CSR of Global Income & Currency Fund Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committees of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 20, 2008 /s/ Mitchell M. Cox - -------------------- Mitchell M. Cox Chief Executive Officer (principal executive officer) of Global Income & Currency Fund Inc. EX-99. CERT CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 - -------------------------------------------------------------------------------- I, James E. Hillman, Chief Financial Officer (principal financial officer) of Global Income & Currency Fund Inc., certify that: 1. I have reviewed this report on Form N-CSR of Global Income & Currency Fund Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committees of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 20, 2008 /s/ James E. Hillman - -------------------- James E. Hillman Chief Financial Officer (principal financial officer) of Global Income & Currency Fund Inc. EX-99.1350CERT 4 e603441_ex99-1350cert.txt Exhibit 99.1350CERT Certification Pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes Oxley Act Pursuant to 18 U.S.C. ss. 1350, the undersigned officer of Global Income & Currency Fund Inc. (the "Registrant"), hereby certifies, to the best of his knowledge, that the Registrant's Report on Form N-CSR for the period ended December 31, 2007, (the "Report") fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: February 20, 2008 /s/ Mitchell M. Cox - -------------------- Mitchell M. Cox Chief Executive Officer (principal executive officer) of Global Income & Currency Fund Inc. Pursuant to 18 U.S.C. ss. 1350, the undersigned officer of Global Income & Currency Fund Inc. (the "Registrant"), hereby certifies, to the best of his knowledge, that the Registrant's Report on Form N-CSR for the period ended December 31, 2007, (the "Report") fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: February 20, 2008 /s/ James E. Hillman - -------------------- James E. Hillman Chief Financial Officer (principal financial officer) of Global Income & Currency Fund Inc. This certification is being furnished pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR with the Securities and Exchange Commission. -----END PRIVACY-ENHANCED MESSAGE-----