GGZ-A Gabelli Global Small and Mid Cap Value Trust

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                  811-22884                  

The Gabelli Global Small and Mid Cap Value Trust

(Exact name of registrant as specified in charter)

One Corporate Center
Rye, New York 10580-1422

(Address of principal executive offices) (Zip code)

Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422

(Name and address of agent for service)

Registrant’s telephone number, including area code:  1-800-422-3554

Date of fiscal year end:   December 31

Date of reporting period:   June 30, 2021

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

 

(a)

The Report to Shareholders is attached herewith.

 

 

 

The Gabelli Global Small and Mid Cap Value Trust

Semiannual Report — June 30, 2021

 

(Y)our Portfolio Management Team

 

Mario J. Gabelli, CFA	Christopher J. Marangi	Kevin V. Dreyer	Jeffrey J. Jonas, CFA
Chief Investment Officer	Co-Chief Investment Officer	Co-Chief Investment Officer	Portfolio Manager
	BA, Williams College	BSE, University of	BS, Boston College
	MBA, Columbia	Pennsylvania
	Business School	MBA, Columbia
		Business School

 

To Our Shareholders,

 

For the six months ended June 30, 2021, the net asset value (NAV) total return of The Gabelli Global Small and Mid Cap Value Trust (the Fund) was 20.1%, compared with a total return of 13.6% for the Morgan Stanley Capital International (MSCI) World SMID Cap Index. The total return for the Fund’s publicly traded shares was 25.2%. The Fund’s NAV per share was $17.90, while the price of the publicly traded shares closed at $16.00 on the New York Stock Exchange (NYSE). See page 2 for additional performance information.

 

Enclosed are the financial statements, including the schedule of investments, as of June 30, 2021.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.gabelli.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. To elect to receive all future reports on paper free of charge, please contact your financial intermediary, or, if you invest directly with the Fund, you may call 800-422-3554 or send an email request to info@gabelli.com.

 

 

 

 

Comparative Results

 

 

Average Annual Returns through June 30, 2021 (a) (Unaudited)

 

		Year to  Date				1 Year				3 year				5 year				Since Inception (6/23/14)
The Gabelli Global Small and Mid Cap Value Trust (GGZ)
NAV Total Return (b)			20.13	%			69.47	%			11.80	%			11.99	%			8.82	%
Investment Total Return (c)			25.20				89.37				14.83				13.03				6.95
MSCI World SMID Cap Index			13.55				47.85				12.38				13.89				9.46	(d)

 

(a)

Performance returns for periods of less than one year are not annualized. The MSCI World SMID Cap Index captures mid and small cap representation across 23 developed markets. Dividends are considered reinvested. You cannot invest directly in an index.

(b)

Total returns and average annual returns reflect changes in the NAV per share, reinvestment of distributions at NAV on the ex-dividend date, adjustments for rights offerings, and are net of expenses. Since inception return is based on an initial NAV of $12.00.

(c)

Total returns and average annual returns reflect changes in closing market values on the NYSE, reinvestment of distributions, and adjustments for rights offerings. Since inception return is based on an initial offering price of $12.00.

(d)

From June 30, 2014, the date closest to the Fund’s inception for which data are available.

 

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing.

 

Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. The Fund’s use of leverage may magnify the volatility of net asset value changes versus funds that do not employ leverage. When shares are sold, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end.

 

 

2 

 

 

Summary of Portfolio Holdings (Unaudited)

 

The following tables present portfolio holdings as a percent of total investments as of June 30, 2021:

 

The Gabelli Global Small and Mid Cap Value Trust 

Food and Beverage			13.3	%
Health Care			7.3	%
Diversified Industrial			6.0	%
U.S. Government Obligations			6.0	%
Consumer Products			5.9	%
Business Services			5.7	%
Entertainment			5.5	%
Machinery			5.1	%
Financial Services			4.7	%
Broadcasting			4.3	%
Equipment and Supplies			3.4	%
Hotels and Gaming			2.9	%
Automotive			2.5	%
Cable and Satellite			2.3	%
Electronics			2.3	%
Specialty Chemicals			2.2	%
Automotive: Parts and Accessories			2.1	%
Energy and Utilities: Water			2.0	%
Retail			1.7	%
Aerospace			1.3	%

Wireless Communications			1.2	%
Building and Construction			1.1	%
Telecommunications			1.1	%
Environmental Services			1.0	%
Energy and Utilities: Integrated			1.0	%
Transportation			1.0	%
Computer Software and Services			1.0	%
Consumer Services			1.0	%
Energy and Utilities: Electric			0.9	%
Metals and Mining			0.8	%
Energy and Utilities: Natural Gas			0.8	%
Publishing			0.7	%
Real Estate			0.5	%
Aviation: Parts and Services			0.5	%
Energy and Utilities: Services			0.4	%
Manufactured Housing and Recreational Vehicles			0.3	%
Energy and Utilities: Alternative Energy			0.1	%
Educational Services			0.1	%
			100.0	%

The Fund files a complete schedule of portfolio holdings with the Securities and Exchange Commission (the SEC) for the first and third quarters of each fiscal year on Form N-PORT. Shareholders may obtain this information at www.gabelli.com or by calling the Fund at 800-GABELLI (800-422-3554). The Fund’s Form N-PORT is available on the SEC’s website at www.sec.gov and 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 800-SEC-0330.

 

Proxy Voting

 

The Fund files Form N-PX with its complete proxy voting record for the twelve months ended June 30, no later than August 31 of each year. A description of the Fund’s proxy voting policies, procedures, and how each Fund voted proxies relating to portfolio securities is available without charge, upon request, by (i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC’s website at www.sec.gov.

 

3 

 

 

The Gabelli Global Small and Mid Cap Value Trust

Schedule of Investments — June 30, 2021 (Unaudited)

 

 

Shares						Cost				Market Value
				COMMON STOCKS — 93.2%
				Aerospace — 1.3%
	22,000			Aerojet Rocketdyne Holdings Inc.		$	1,084,658			$	1,062,380
	9,000			Allied Motion Technologies Inc.			212,551				310,770
	9,000			Avio SpA			123,120				132,756
	8,500			Kaman Corp.			475,066				428,400
	1,000			L3Harris Technologies Inc.			79,530				216,150
	256,666			Rolls-Royce Holdings plc†			558,173				351,212
							2,533,098				2,501,668
				Automotive — 2.5%
	4,100			Ferrari NV			157,078				844,805
	84,000			Navistar International Corp.†			3,428,627				3,738,000
	2,000			Traton SE			58,514				63,414
							3,644,219				4,646,219
				Automotive: Parts and Accessories — 2.0%
	49,002			Brembo SpA			354,261				620,552
	90,000			Dana Inc.			1,546,665				2,138,400
	15,000			Garrett Motion Inc.†			47,545				119,700
	2,000			Linamar Corp.			71,250				125,443
	31,400			Modine Manufacturing Co.†			399,965				520,926
	27,000			Uni-Select Inc.†			254,169				357,430
							2,673,855				3,882,451
				Aviation: Parts and Services — 0.5%
	15,500			AAR Corp.†			501,594				600,625
	1,000			Curtiss-Wright Corp.			69,929				118,760
	4,500			Ducommun Inc.†			145,170				245,520
							716,693				964,905
				Broadcasting — 4.3%
	45,000			Beasley Broadcast Group Inc., Cl.A†			159,874				130,050
	1,000			Cogeco Inc.			61,944				77,557
	140,000			Corus Entertainment Inc., Cl.B			535,362				718,296
	7,500			Discovery Inc., Cl.A†			200,293				230,100
	5,000			Discovery Inc., Cl.C†			192,901				144,900
	235,000			Grupo Televisa SAB, ADR			2,463,825				3,355,800
	320,000			ITV plc†			665,263				555,755
	500			Liberty Broadband Corp., Cl.A†			25,309				84,085
	603			Liberty Broadband Corp., Cl.C†			29,605				104,717
	2,000			Liberty Media Corp.- Liberty SiriusXM, Cl.A†			74,602				93,160
	188			Liberty Media Corp.- Liberty
				SiriusXM, Cl.C†			4,788				8,721
	68,000			Sinclair Broadcast Group Inc., Cl.A			2,221,895				2,258,960

Shares						Cost				Market Value
	25,000			Sirius XM Holdings Inc.		$	131,250			$	163,500
	8,000			TEGNA Inc.			120,564				150,080
							6,887,475				8,075,681
				Building and Construction — 1.1%
	10,000			Arcosa Inc.			267,493				587,400
	1,400			Bouygues SA			58,222				51,777
	1,000			Carrier Global Corp.			19,630				48,600
	28,000			GCP Applied Technologies Inc.†			675,559				651,280
	7,000			IES Holdings Inc.†			122,891				359,520
	6,000			Johnson Controls International plc			220,391				411,780
							1,364,186				2,110,357
				Business Services —  5.7%
	5,000			Clarivate plc†			108,244				137,650
	83,000			Diebold Nixdorf Inc.†			572,449				1,065,720
	15,000			Fly Leasing Ltd., ADR†			253,150				254,100
	50,500			Herc Holdings Inc.†			1,772,880				5,659,535
	54,000			JCDecaux SA†			1,628,924				1,497,033
	13,500			Loomis AB			399,150				422,284
	30,000			Macquarie Infrastructure Corp.			1,252,559				1,148,100
	20,000			Ocean Outdoor Ltd.†			194,799				169,000
	4,000			Ströeer SE & Co. KGaA			86,799				320,390
	3,000			The Interpublic Group of Companies Inc.			54,590				97,470
							6,323,544				10,771,282
				Cable and Satellite — 2.3%
	150			Cable One Inc.			240,135				286,922
	2,900			Cogeco Communications Inc.			185,992				283,566
	40,000			Euskaltel SA			524,438				520,781
	28,000			Liberty Global plc, Cl.A†			684,985				760,480
	50,712			Liberty Global plc, Cl.C†			1,299,674				1,371,253
	25,000			Liberty Latin America Ltd., Cl.C†			350,204				352,500
	14,000			Megacable Holdings SAB de CV			58,687				49,731
	9,000			Shaw Communications Inc., Cl.B			252,101				260,280
	25,000			WideOpenWest Inc.†			136,883				517,750
							3,733,099				4,403,263
				Computer Software and Services — 1.0%
	8,000			AVEVA Group plc			252,920				410,342
	20,000			CareCloud Inc.†			171,104				168,400
	2,000			Rocket Internet SE†			40,123				65,453
	6,000			Talend SA, ADR†			391,983				393,600
	2,000			Twitter Inc.†			33,707				137,620

 

See accompanying notes to financial statements.

4 

 

  

The Gabelli Global Small and Mid Cap Value Trust 

Schedule of Investments (Continued) — June 30, 2021 (Unaudited)

 

 

Shares						Cost				Market Value
				COMMON STOCKS (Continued)
				Computer Software and Services (Continued)
	2,000			Zooplus AG†		$	239,048			$	647,894
							1,128,885				1,823,309
				Consumer Products — 5.9%
	200			dormakaba Holding AG			98,379				136,288
	20,000			Edgewell Personal Care Co.			593,195				878,000
	25,000			Energizer Holdings Inc.			1,022,300				1,074,500
	4,700			Essity AB, Cl.B			147,262				155,859
	13,300			Hunter Douglas NV†			1,036,041				1,450,884
	300			L’Oreal SA			48,139				133,682
	12,000			Marine Products Corp.			84,716				185,280
	15,000			Mattel Inc.†			178,197				301,500
	600			Nintendo Co. Ltd., ADR			12,318				43,518
	4,000			Salvatore Ferragamo SpA†			75,357				85,587
	43,000			Scandinavian Tobacco Group A/S			674,560				877,656
	6,000			Shiseido Co. Ltd.			108,513				441,298
	3,500			Spectrum Brands Holdings Inc.			180,815				297,640
	590,000			Swedish Match AB			2,576,145				5,031,280
	600			The Aaron’s Co. Inc.			7,859				19,194
							6,843,796				11,112,166
				Consumer Services — 1.0%
	3,000			Allegion plc			268,079				417,900
	17,500			Ashtead Group plc			295,726				1,298,504
	500			Boyd Group Services Inc.			72,110				90,989
							635,915				1,807,393
				Diversified Industrial — 6.0%
	68,069			Ampco-Pittsburgh Corp.†			312,223				413,179
	34,700			Ardagh Group SA			537,226				850,844
	4,000			AZZ Inc.			136,622				207,120
	3,600			Crane Co.			266,344				332,532
	26,800			EnPro Industries Inc.			1,783,158				2,603,620
	38,000			Greif Inc., Cl.A			1,910,291				2,300,900
	27,000			Griffon Corp.			431,009				692,010
	1,200			Haynes International Inc.			36,585				42,456
	2,000			Jardine Matheson Holdings Ltd.			117,441				127,840
	2,400			Moog Inc., Cl.A			143,517				201,744
	24,200			Myers Industries Inc.			387,061				508,200
	6,000			Raven Industries Inc.			115,726				347,100
	5,000			Smiths Group plc			95,104				109,972
	20,000			Steel Partners Holdings LP†			223,990				582,400
	5,000			Sulzer AG			455,145				690,624
	40,000			Toray Industries Inc.			316,267				266,115
	13,000			Tredegar Corp.			222,491				179,010
	12,000			Trinity Industries Inc.			242,785				322,680
	16,000			Ultra Electronics Holdings plc			319,974				506,841

Shares						Cost				Market Value
	10,000			Wartsila OYJ Abp		$	151,588			$	148,397
							8,204,547				11,433,584
				Educational Services — 0.1%
	7,000			Barnes & Noble Education Inc.†			36,703				50,470
	15,000			Universal Technical Institute Inc.†			59,076				97,350
							95,779				147,820
				Electronics — 2.3%
	7,000			Datalogic SpA			81,861				165,507
	20,000			Resideo Technologies Inc.†			195,763				600,000
	37,000			Sony Group Corp., ADR			1,659,815				3,597,140
							1,937,439				4,362,647
				Energy and Utilities: Alternative Energy — 0.1%
	500			NextEra Energy Inc.			36,260				36,640
	2,000			NextEra Energy Partners LP			89,333				152,720
							125,593				189,360
				Energy and Utilities: Electric — 0.9%
	31,200			Algonquin Power & Utilities Corp.			241,060				464,879
	7,500			Fortis Inc.			222,079				331,982
	20,000			PNM Resources Inc.			978,650				975,400
							1,441,789				1,772,261
				Energy and Utilities: Integrated — 1.0%
	14,000			Avista Corp.			626,343				597,380
	3,500			Emera Inc.			147,092				158,793
	15,500			Hawaiian Electric Industries Inc.			498,850				655,340
	100,000			Hera SpA			300,327				413,115
	2,000			Siemens Gamesa Renewable Energy SA†			71,880				66,782
							1,644,492				1,891,410
				Energy and Utilities: Natural Gas — 0.8%
	24,000			National Fuel Gas Co.			1,226,542				1,254,000
	40,000			NEL ASA†			109,725				93,285
	1,200			Southwest Gas Holdings Inc.			62,843				79,428
							1,399,110				1,426,713
				Energy and Utilities: Services — 0.4%
	19,500			Dril-Quip Inc.†			695,158				659,685
	1,500			KLX Energy Services Holdings Inc.†			13,901				14,325
							709,059				674,010
				Energy and Utilities: Water —  2.0%
	70,000			Beijing Enterprises Water Group Ltd.			44,488				26,506
	1,400			Consolidated Water Co. Ltd.			16,458				16,422

See accompanying notes to financial statements.

 

5 

 

 

The Gabelli Global Small and Mid Cap Value Trust 

Schedule of Investments (Continued) — June 30, 2021 (Unaudited)

 

 

Shares						Cost				Market Value
				COMMON STOCKS (Continued)
				Energy and Utilities: Water (Continued)
	17,000			Mueller Water Products Inc., Cl.A		$	150,695			$	245,140
	90,000			Primo Water Corp.			786,054				1,505,700
	60,500			Severn Trent plc			1,745,595				2,093,078
							2,743,290				3,886,846
				Entertainment — 5.5%
	46,000			Borussia Dortmund GmbH & Co. KGaA†			308,714				338,994
	244,000			Entain plc†			2,154,188				5,891,502
	16,500			GAN Ltd.†			340,473				271,260
	8,000			Golden Entertainment Inc.†			100,421				358,400
	24,000			Liberty Media Corp.- Liberty Braves, Cl.A†			595,907				677,280
	22,011			Liberty Media Corp.- Liberty Braves, Cl.C†			490,608				611,245
	3,600			Madison Square Garden Entertainment Corp.†			236,989				302,292
	4,000			Madison Square Garden Sports Corp.†			676,398				690,280
	6,000			Manchester United plc, Cl.A			95,044				91,140
	14,000			ViacomCBS Inc., Cl.A			734,735				678,300
	13,000			Vivendi SE			315,907				436,700
	175,000			Wow Unlimited Media Inc.†(a)(b)			163,334				135,528
							6,212,718				10,482,921
				Environmental Services — 1.0%
	180,000			Renewi plc†			70,014				136,947
	2,000			Stericycle Inc.†			135,877				143,100
	10,000			Tomra Systems ASA			117,808				551,674
	9,000			Waste Connections Inc.			599,538				1,074,870
							923,237				1,906,591
				Equipment and Supplies — 3.4%
	2,000			A.O. Smith Corp.			67,562				144,120
	20,000			Commercial Vehicle Group Inc.†			188,742				212,600
	31,000			Flowserve Corp.			1,231,555				1,249,920
	11,500			Graco Inc.			564,989				870,550
	18,000			Interpump Group SpA			249,267				1,065,894
	37,000			Mueller Industries Inc.			1,062,626				1,602,470
	1,800			Snap-on Inc.			341,177				402,174
	6,500			Watts Water Technologies Inc., Cl.A			586,167				948,415
							4,292,085				6,496,143
				Financial Services — 4.5%
	500			Alleghany Corp.†			247,056				333,535
	24,477			Barings BDC Inc.			263,866				258,477
	1,000			Credit Acceptance Corp.†			390,020				454,110

Shares						Cost				Market Value
	2,120			Digital Realty Trust Inc., REIT		$	284,727			$	318,975
	2,000			EXOR NV			160,862				160,219
	53,000			FinecoBank Banca Fineco SpA†			350,403				923,818
	32,000			Flushing Financial Corp.			618,111				685,760
	195,000			GAM Holding AG†			777,479				423,615
	1,000			Groupe Bruxelles Lambert SA			82,544				111,864
	8,500			H&R Block Inc.			169,373				199,580
	11,000			I3 Verticals Inc., Cl.A†			222,091				332,420
	5,000			Janus Henderson Group plc			166,693				194,050
	23,000			Kinnevik AB, Cl.A			782,805				1,041,680
	32,500			Kinnevik AB, Cl.B			1,058,166				1,301,048
	57,686			Oaktree Specialty Lending Corp.			330,261				385,919
	25,000			Post Holdings Partnering Corp.†			250,000				259,750
	1,200			PROG Holdings Inc.			41,049				57,756
	70,000			Resona Holdings Inc.			336,109				269,175
	5,000			Seven Oaks Acquisition Corp., Cl.A†			48,533				49,450
	15,700			Synovus Financial Corp			545,465				688,916
	4,000			VNV Global AB†			29,506				44,566
							7,155,119				8,494,683
				Food and Beverage — 13.3%
	7,000			Britvic plc			68,455				90,731
	1,000			Campbell Soup Co.			33,430				45,590
	280			Chocoladefabriken Lindt & Spruengli AG			1,410,500				2,785,626
	41,500			Chr. Hansen Holding A/S			1,896,918				3,745,505
	3,000			Coca-Cola HBC AG†			67,427				108,478
	110,000			Davide Campari-Milano NV			526,657				1,473,235
	1,400			Diageo plc, ADR			155,671				268,366
	2,000			Fevertree Drinks plc			25,214				71,185
	9,000			Fomento Economico Mexicano SAB de CV, ADR			680,678				760,590
	1,000			Heineken Holding NV			68,070				100,730
	1,000			International Flavors & Fragrances Inc.			114,613				149,400
	39,000			ITO EN Ltd.			1,199,322				2,313,425
	600			J & J Snack Foods Corp.			56,239				104,646
	13,000			Kameda Seika Co. Ltd.			627,202				518,385
	10,000			Kerry Group plc, Cl.A			848,950				1,388,513
	40,000			Kikkoman Corp.			1,095,295				2,639,183
	7,500			Luckin Coffee Inc., ADR†			58,296				84,600
	113,000			Maple Leaf Foods Inc.			2,076,717				2,345,507
	105,000			Nissin Foods Co. Ltd.			80,373				80,329
	35,000			Nomad Foods Ltd.†			615,847				989,450
	5,000			Post Holdings Inc.			311,614				542,350

See accompanying notes to financial statements.

 

6 

 

 

The Gabelli Global Small and Mid Cap Value Trust 

Schedule of Investments (Continued) — June 30, 2021 (Unaudited)

 

 

Shares						Cost				Market Value
				COMMON STOCKS (Continued)
				Food and Beverage (Continued)
	200,000			Premier Foods plc		$	116,472			$	303,219
	8,500			Remy Cointreau SA			867,760				1,754,732
	1,800			Symrise AG			97,498				250,786
	9,000			Treasury Wine Estates Ltd.			47,872				78,835
	40,000			Tsingtao Brewery Co. Ltd., Cl.H			264,487				430,689
	215,000			Vitasoy International Holdings Ltd.			279,435				798,881
	16,000			Yakult Honsha Co. Ltd.			826,068				905,891
							14,517,080				25,128,857
				Health Care —  6.8%
	15,000			Aurinia Pharmaceuticals Inc.†			242,869				194,400
	28,000			Bausch Health Cos. Inc.†			595,390				820,960
	1,150			Bio-Rad Laboratories Inc., Cl.A†			425,809				740,933
	150			Bio-Rad Laboratories Inc., Cl.B†			35,257				99,365
	2,000			Cardiovascular Systems Inc.†			35,840				85,300
	6,000			CareDx Inc.†			317,582				549,120
	2,500			Catalent Inc.†			261,199				270,300
	1,250			Charles River Laboratories International Inc.†			154,443				462,400
	500			Chemed Corp			240,390				237,250
	5,500			Clovis Oncology Inc.†			32,683				31,900
	11,500			Cutera Inc.†			196,316				563,845
	3,000			DaVita Inc.†			215,128				361,290
	4,000			DENTSPLY SIRONA Inc.			144,206				253,040
	18,000			DLH Holdings Corp.†			152,843				210,240
	2,000			Draegerwerk AG & Co. KGaA			111,590				185,926
	3,000			eHealth Inc.†			220,697				175,200
	5,500			Endo International plc†			53,221				25,740
	20,000			Evolent Health Inc., Cl.A†			280,601				422,400
	2,000			Gerresheimer AG			138,140				221,142
	2,500			Henry Schein Inc.†			166,504				185,475
	1,750			ICU Medical Inc.†			321,152				360,150
	4,666			Idorsia Ltd.†			57,775				128,293
	8,000			InfuSystem Holdings Inc.†			32,968				166,320
	4,000			Integer Holdings Corp.†			194,771				376,800
	2,000			NeoGenomics Inc.†			56,226				90,340
	21,250			Option Care Health Inc.†			236,645				464,738
	4,500			Orthofix Medical Inc.†			156,521				180,495
	42,000			Patterson Cos. Inc.			1,048,043				1,276,380
	11,000			Perrigo Co. plc			539,163				504,350
	15,000			Personalis Inc.†			295,031				379,500
	12,500			PPD Inc.†			393,566				576,125
	9,000			Silk Road Medical Inc.†			462,163				430,740

Shares						Cost				Market Value
	912			STERIS plc		$	126,302			$	188,146
	6,000			SurModics Inc.†			167,603				325,500
	2,000			Teladoc Health Inc.†			91,560				332,580
	9,000			Tenet Healthcare Corp.†			259,624				602,910
	500			The Cooper Companies Inc.			67,943				198,135
	15,000			Trillium Therapeutics Inc.†			247,726				145,500
	200			Zoetis Inc.			7,312				37,272
							8,782,802				12,860,500
				Hotels and Gaming — 2.9%
	2,500			Caesars Entertainment Inc.†			80,592				259,375
	901			Flutter Entertainment plc†			80,235				163,833
	24,000			Full House Resorts Inc.†			70,181				238,560
	48,000			International Game Technology plc†			704,421				1,150,080
	841,250			Mandarin Oriental International Ltd.†			1,483,647				1,682,500
	11,500			MGM Resorts International			339,777				490,475
	4,000			Red Rock Resorts Inc., Cl.A†			97,180				170,000
	300,000			The Hongkong & Shanghai Hotels Ltd.†			407,957				315,676
	11,000			The Marcus Corp.†			145,862				233,310
	6,500			Wynn Resorts Ltd.†			721,233				794,950
							4,131,085				5,498,759
				Machinery — 5.1%
	19,000			Astec Industries Inc.			763,929				1,195,860
	300			Bucher Industries AG			78,593				156,866
	165,000			CNH Industrial NV, Borsa Italiana			1,422,790				2,724,409
	259,000			CNH Industrial NV, New York			2,232,968				4,330,480
	13,000			Twin Disc Inc.†			99,365				184,990
	8,500			Xylem Inc.			458,230				1,019,660
							5,055,875				9,612,265
				Manufactured Housing and Recreational Vehicles —  0.3%
	2,600			Cavco Industries Inc.†			259,212				577,694
				Metals and Mining — 0.8%
	2,000			Allegheny Technologies Inc.†			31,636				41,700
	25,000			Cameco Corp.			245,432				479,500
	200,000			Sierra Metals Inc.†			668,485				602,000
	4,000			TimkenSteel Corp.†			30,320				56,600
	5,800			Wheaton Precious Metals Corp.			186,176				255,606
							1,162,049				1,435,406
				Publishing — 0.7%
	1,600			Graham Holdings Co., Cl.B			710,319				1,014,240
	1,500			Meredith Corp.†			19,310				65,160

See accompanying notes to financial statements.

 

7 

 

 

The Gabelli Global Small and Mid Cap Value Trust 

Schedule of Investments (Continued) — June 30, 2021 (Unaudited)

 

 

Shares						Cost				Market Value
				COMMON STOCKS (Continued)
				Publishing (Continued)
	10,000			The E.W. Scripps Co., Cl.A		$	141,538			$	203,900
							871,167				1,283,300
				Real Estate — 0.5%
	11,349			Indus Realty Trust Inc., REIT			338,315				745,062
	6,000			Starwood Property Trust Inc., REIT			149,200				157,020
	35,000			Trinity Place Holdings Inc.†			89,605				73,850
							577,120				975,932
				Retail — 1.7%
	2,500			AutoNation Inc.†			98,741				237,025
	600			Biglari Holdings Inc., Cl.A†			318,354				467,400
	600			Casey’s General Stores Inc.			58,896				116,784
	2,900			Fnac Darty†			132,933				186,548
	4,000			Hertz Global Holdings Inc.†			4,495				34,960
	7,500			MarineMax Inc.†			107,718				365,550
	5,500			Movado Group Inc.			87,691				173,085
	4,000			Penske Automotive Group Inc.			150,947				301,960
	7,000			PetIQ Inc.†			164,472				270,200
	30,000			Qurate Retail Inc., Cl.A			213,313				392,700
	9,000			Rush Enterprises Inc., Cl.B			265,452				343,260
	400,000			Sun Art Retail Group Ltd.†			441,576				297,773
	2,000			TravelCenters of America Inc.†			59,240				58,480
							2,103,828				3,245,725
				Specialty Chemicals — 2.2%
	7,000			Ashland Global Holdings Inc.			411,257				612,500
	65,000			Element Solutions Inc.			691,426				1,519,700
	10,000			Ferro Corp.†			215,591				215,700
	4,000			H.B. Fuller Co.			179,337				254,440
	16,000			Huntsman Corp.			353,791				424,320
	14,000			SGL Carbon SE†			129,553				134,298
	6,000			T. Hasegawa Co. Ltd.			114,881				132,860
	2,000			Takasago International Corp.			51,764				48,607
	700			Treatt plc			3,479				11,329
	27,000			Valvoline Inc.			544,801				876,420
							2,695,880				4,230,174
				Telecommunications — 1.1%
	55,000			Communications Systems Inc.			334,159				394,900
	6,000			Gogo Inc.†			24,174				68,280
	6,000			Hellenic
				Telecommunications Organization SA, ADR			41,840				52,140

Shares						Cost				Market Value
	11,000			Loral Space & Communications Inc.		$	381,169			$	427,350
	100,000			Pharol SGPS SA†			34,665				11,976
	33,000			Telekom Austria AG			210,582				281,734
	50,000			Vodafone Group plc, ADR			1,192,445				856,500
							2,219,034				2,092,880
				Transportation — 1.0%
	30,000			Bollore SA			127,199				160,788
	17,500			Fortress Transportation and Infrastructure Investors LLC			237,847				587,125
	12,500			GATX Corp.			837,621				1,105,875
							1,202,667				1,853,788
				Wireless Communications  — 1.2%
	44,000			Millicom International Cellular SA, SDR†			2,202,578				1,741,882
	16,000			United States Cellular Corp.†			585,716				580,960
							2,788,294				2,322,842
				TOTAL COMMON STOCKS			119,735,115				176,381,805
				PREFERRED STOCKS —  0.4%
				Automotive: Parts and Accessories — 0.0%
	6,734			Garrett Motion Inc., Ser.A			35,353				57,912
				Financial Services — 0.2%
	18,200			The Phoenix Companies Inc., 7.450%, 01/15/32			333,127				317,363
				Health Care — 0.2%
	10,000			XOMA Corp., Ser.A, 8.625%			247,561				266,800
				Retail   0.0%
	450			Qurate Retail Inc., 8.000%, 03/15/31			39,466				48,712
				TOTAL PREFERRED STOCKS			655,507				690,787
				CONVERTIBLE PREFERRED STOCKS —  0.1%
				Automotive: Parts and Accessories —  0.1%
	15,000			Garrett Motion Inc., Ser.A, 11.000%			78,750				129,000
				MANDATORY CONVERTIBLE SECURITIES(c) — 0.3%
				Health Care —  0.3%
	6,000			Avantor Inc., Ser.A, 6.250%, 05/15/22			308,295				657,360

See accompanying notes to financial statements.

 

8 

 

 

The Gabelli Global Small and Mid Cap Value Trust 

Schedule of Investments (Continued) — June 30, 2021 (Unaudited)

 

 

Shares						Cost				Market Value
				RIGHTS —  0.0%
				Health Care —  0.0%
	45,000			Achillion Pharmaceuticals Inc., CVR†		$	0			$	22,500
	1,500			Tobira Therapeutics Inc., CVR†(d)			90				0
							90				22,500
				TOTAL RIGHTS			90				22,500
				WARRANTS —  0.0%
				Diversified Industrial  — 0.0%
	64,000			Ampco-Pittsburgh Corp., expire 08/01/25†			43,720				57,600
				Energy and Utilities: Services —  0.0%
	539			Weatherford International plc, expire 12/13/23†			0				237
				TOTAL WARRANTS			43,720				57,837

 

Principal  Amount
			U.S. GOVERNMENT OBLIGATIONS —  6.0%
$	11,341,000		U.S. Treasury Bills,
			0.003% to 0.090%††, 07/08/21 to 12/16/21			11,340,019				11,339,683
TOTAL INVESTMENTS — 100.0%					$	132,161,496				189,278,972
Other Assets and Liabilities (Net)										866,288
PREFERRED SHARES
(1,200,000 preferred shares outstanding)										(30,000,000	)
NET ASSETS —  COMMON SHARES
(8,945,623 common shares outstanding)									$	160,145,260
NET ASSET VALUE PER COMMON SHARE
($160,145,260 ÷ 8,945,623 shares outstanding)									$	17.90

 

 

(a)

Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers.

(b)

At June 30, 2021, the Fund held an investment in a restricted and illiquid security amounting to $135,528 or 0.07% of total investments, which was valued under methods approved by the Board of Trustees as follows:

 

Acquisition Shares				Issuer		Acquisition Date		Acquisition Cost				06/30/21 Carrying Value Per Share
	175,000			Wow Unlimited Media Inc.		06/05/18 - 03/18/19		$	163,334			$	0.7744

(c)

Mandatory convertible securities are required to be converted on the dates listed; they generally may be converted prior to these dates at the option of the holder.

(d)

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

†

Non-income producing security.

††

Represents annualized yields at dates of purchase.

 

ADR

American Depositary Receipt

CVR

Contingent Value Right

REIT

Real Estate Investment Trust

SDR

Swedish Depositary Receipt

 

Geographic Diversification		% of Total  Investments				Market  Value
United States			53.2	%		$	100,604,470
Europe			32.9				62,365,477
Japan			5.9				11,175,597
Canada			3.7				7,027,257
Latin America			2.2				4,182,543
Asia/Pacific			2.1				3,923,628
Total Investments			100.0	%		$	189,278,972

See accompanying notes to financial statements.

 

9 

 

 

The Gabelli Global Small and Mid Cap Value Trust 

 

Statement of Assets and Liabilities

June 30, 2021 (Unaudited)  

 

Assets:
Investments, at value (cost $132,161,496)		$	189,278,972
Foreign currency, at value (cost $1,061,022)			1,052,427
Cash			110,046
Receivable for investments sold			164,532
Dividends and interest receivable			291,603
Deferred offering expense			14,973
Prepaid expenses			2,297
Total Assets			190,914,850
Liabilities:
Distributions payable			22,708
Payable for investments purchased			412,792
Payable for Fund shares repurchased			12,816
Payable for investment advisory fees			158,260
Payable for payroll expenses			35,627
Payable for accounting fees			3,750
Payable for shareholder communications			74,445
Other accrued expenses			49,192
Total Liabilities			769,590
Cumulative Preferred Shares $0.001 par value:
Series A Preferred Shares (5.450%, $25 liquidation value, 1,200,000 shares authorized, issued and outstanding)			30,000,000
Net Assets Attributable to Common Shareholders		$	160,145,260
Net Assets Attributable to Common Shareholders Consist of:
Paid-in capital		$	98,259,702
Total distributable earnings			61,885,558
Net Assets		$	160,145,260
Net Asset Value per Common Share:
($160,145,260 ÷ 8,945,623 shares outstanding at $0.001 par value; unlimited number of shares authorized)		$	17.90

Statement of Operations 

For the Six Months Ended June 30, 2021 (Unaudited)

 

Investment Income:
Dividends (net of foreign withholding taxes of $72,219)		$	1,520,271
Non-cash dividends			1,104,696
Interest			3,735
Total Investment Income			2,628,702
Expenses:
Investment advisory fees			907,569
Shareholder communications expenses			74,878
Legal and audit fees			53,348
Payroll expenses			45,661
Custodian fees			28,441
Trustees’ fees			27,632
Accounting fees			22,500
Shareholder services fees			15,751
Interest expense			245
Miscellaneous expenses			34,742
Total Expenses			1,210,767
Less:
Expenses paid indirectly by broker (See Note 3)			(1,142	)
Net Expenses			1,209,625
Net Investment Income			1,419,077
Net Realized and Unrealized Gain/(Loss) on
Investments and Foreign Currency:
Net realized gain on investments			9,058,394
Net realized gain on foreign currency transactions			10,898
Net realized gain on investments and foreign currency transactions			9,069,292
Net change in unrealized appreciation/depreciation: on investments			17,534,147
on foreign currency translations			(21,439	)
Net change in unrealized appreciation/depreciation on investments and foreign currency translations			17,512,708
Net Realized and Unrealized Gain on Investments and Foreign Currency			26,582,000
Net Increase in Net Assets Resulting from Operations			28,001,077
Total Distributions to Preferred Shareholders			(817,500	)
Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations		$	27,183,577

See accompanying notes to financial statements.

 

10 

 

 

The Gabelli Global Small and Mid Cap Value Trust 

 

Statement of Changes in Net Assets Attributable to Common Shareholders

 

 

		Six Months Ended  June 30, 2021  (Unaudited)						Year Ended  December 31, 2020
Operations:
Net investment income/(loss)			$	1,419,077					$	(203,530	)
Net realized gain on investments and foreign currency transactions				9,069,292						2,403,975
Net change in unrealized appreciation/(depreciation) on investments and foreign currency translations				17,512,708						15,770,256
Net Increase in Net Assets Resulting from Operations				28,001,077						17,970,701
Distributions to Preferred Shareholders				(817,500	)*					(1,635,000	)
Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations				27,183,577						16,335,701
Distributions to Common Shareholders:
Accumulated earnings				(2,872,545	)*					(476,437	)
Return of capital				—						(5,424,278	)
Total Distributions to Common Shareholders				(2,872,545	)					(5,900,715	)
Fund Share Transactions:
Net decrease from repurchase of common shares				(1,850,105	)					(3,739,860	)
Net Decrease in Net Assets from Fund Share Transactions				(1,850,105	)					(3,739,860	)
Net Increase/(Decrease) in Net Assets Attributable to Common Shareholders				22,460,927						(6,695,126	)
Net Assets Attributable to Common Shareholders:
Beginning of year				137,684,333						130,989,207
End of period			$	160,145,260					$	137,684,333

 

 

*

Based on year to date book income. Amounts are subject to change and recharacterization at year end.

 

See accompanying notes to financial statements.

 

11 

 

 

The Gabelli Global Small and Mid Cap Value Trust

Financial Highlights  

 

 

Selected data for a common share of beneficial interest outstanding throughout each period:

 

		Six Months Ended
		June 30, 2021				Year Ended December 31,
		(Unaudited)				2020				2019				2018				2017				2016
Operating Performance:
Net asset value, beginning of year		$	15.17			$	13.85			$	12.41			$	14.63			$	12.57			$	12.20
Net investment income/(loss)			0.16	(a)			(0.02	)			0.11	(a)			0.07				(0.01	)(b)			0.10
Net realized and unrealized gain/(loss) on investments and foreign currency transactions			2.95				2.09				2.01				(2.25	)			3.34				0.60
Total from investment operations			3.11				2.07				2.12				(2.18	)			3.33				0.70
Distributions to Preferred Shareholders: (c)
Net investment income			(0.01	)*			—				(0.05	)			(0.05	)			(0.04	)			(0.04	)
Net realized gain			(0.08	)*			(0.18	)			(0.12	)			(0.11	)			(0.14	)			(0.10	)
Return of capital			—				—				—				—				(0.03	)			—
Total distributions to preferred shareholders			(0.09	)			(0.18	)			(0.17	)			(0.16	)			(0.21	)			(0.14	)
Net Increase/(Decrease) in Net Assets Attributable to Common Shareholders Resulting from Operations			3.02				1.89				1.95				(2.34	)			3.12				0.56
Distributions to Common Shareholders:
Net investment income			(0.03	)*			—				(0.12	)			—				—				(0.04	)
Net realized gain			(0.29	)*			(0.05	)			(0.28	)			—				—				(0.08	)
Return of capital			—				(0.59	)			(0.16	)			—				—				—
Total distributions to common shareholders			(0.32	)			(0.64	)			(0.56	)			—				—				(0.12	)
Fund Share Transactions:
Increase in net asset value from repurchase of common shares			0.03				0.07				0.05				0.13				0.01				0.07
Offering costs and adjustment to offering costs for preferred shares charged to paid-in capital			—				—				—				(0.00	)(d)			0.00	(d)			(0.14	)
Offering costs for common shares charged to paid-in capital			—				—				—				(0.01	)			(0.05	)			—
Decrease in net asset value from rights offering			—				—				—				—				(1.02	)			—
Total Fund share transactions			0.03				0.07				0.05				0.12				(1.06	)			(0.07	)
Net Asset Value Attributable to Common
Shareholders, End of Period		$	17.90			$	15.17			$	13.85			$	12.41			$	14.63			$	12.57
NAV total return †			20.13	%			16.01	%			16.27	%			(15.17	)%			24.62	%			4.02	%
Market value, end of period		$	16.00			$	13.05			$	11.84			$	9.80			$	12.74			$	10.60
Investment total return ††			25.20	%			17.99	%			26.77	%			(23.08	)%			25.40	%			2.40	%
Ratios to Average Net Assets and Supplemental Data:
Net assets including liquidation value of preferred shares, end of period (in 000’s)		$	190,145			$	167,684			$	160,989			$	150,353			$	180,933			$	127,960
Net assets attributable to common shares, end of period (in 000’s)		$	160,145			$	137,684			$	130,989			$	120,353			$	150,933			$	97,960
Ratio of net investment income/(loss) to average net assets attributable to common shares before preferred share distributions			1.87	%(a)(e)			(0.18	)%			0.83	%(a)			0.49	%			(0.16	)%			0.80	%
Ratio of operating expenses to average net assets attributable to common shares (f)(g)			1.60	%(e)			1.82	%			1.73	%			1.68	%			1.76	%			1.72	%
Portfolio turnover rate			12	%			14	%			35	%			80	%			70	%			77	%

 

See accompanying notes to financial statements.

 

12 

 

 

 

The Gabelli Global Small and Mid Cap Value Trust

Financial Highlights (Continued)

 

 

Selected data for a common share of beneficial interest outstanding throughout each period:

 

		Six Months Ended
		June 30, 2021				Year Ended December 31,
		(Unaudited)				2020				2019				2018				2017				2016
5.450% Series A Cumulative Preferred Shares
Liquidation value, end of period (in 000’s)		$	30,000			$	30,000			$	30,000			$	30,000			$	30,000			$	30,000
Total shares outstanding (in 000’s)			1,200				1,200				1,200				1,200				1,200				1,200
Liquidation preference per share		$	25.00			$	25.00			$	25.00			$	25.00			$	25.00			$	25.00
Average market value (h)		$	26.02			$	25.62			$	25.51			$	24.97			$	25.30			$	25.32
Asset coverage per share		$	158.45			$	139.74			$	134.16			$	125.31			$	150.78			$	106.63
Asset Coverage			634	%			559	%			537	%			501	%			603	%			427	%

 

 

†

Based on net asset value per share, adjusted for reinvestment of distributions at net asset value on the ex-dividend dates and adjustments for the rights offering. Total return for a period of less than one year is not annualized.

††

Based on market value per share, adjusted for reinvestment of distributions at prices determined under the Fund’s dividend reinvestment plan and adjustments for the rights offering. Total return for a period of less than one year is not annualized.

*

Based on year to date book income. Amounts are subject to change and recharacterization at year end.

(a)

Includes income resulting from special dividends for the six months ended June 30, 2021 and the year ended December 31, 2019. Without these dividends, the per share income amount would have been 0.04 and 0.06 and the net investment income ratio would have been 0.41% and 0.46%.

(b)

Per share amounts have been calculated using the average shares outstanding method.

(c)

Calculated based on average common shares outstanding on the record dates throughout the periods.

(d)

Amount represents less than $0.005 per share.

(e)

Annualized.

(f)

The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For all periods presented there was no impact on the expense ratios.

(g)

Ratio of operating expenses to average net assets including liquidation value of preferred shares for the six months ended June 30, 2021 and the years ended December 31, 2020, 2019, 2018, 2017, and 2016 would have been 1.34%, 1.44%, 1.40%, 1.39%, 1.39%, and 1.44%, respectively.

(h)

Based on weekly prices.

 

See accompanying notes to financial statements.

 

 

13 

 

 

The Gabelli Global Small and Mid Cap Value Trust

Notes to Financial Statements (Unaudited)  

 

 

1.  Organization. The Gabelli Global Small and Mid Cap Value Trust (the Fund) is a diversified closed-end management investment company organized as a Delaware statutory trust on August 19, 2013 and registered under the Investment Company Act of 1940, as amended (the 1940 Act). Investment operations commenced on June 23, 2014.

 

The Fund’s investment objective is to seek long term growth of capital. The Fund will attempt to achieve its investment objective by investing, under normal market conditions, at least 80% of its total assets in equity securities (such as common stock and preferred stock) of companies with small or medium sized market capitalizations (small cap and mid cap companies, respectively) and at least 40% of its total assets in the equity securities of companies located outside the U.S. and in at least three countries.

 

2.  Significant Accounting Policies. As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (GAAP) that may require the use of management estimates and assumptions in the preparation of its financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

 

The global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations, regions and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially impact the value and performance of the Fund, its ability to buy and sell fund investments at appropriate valuations, and its ability to achieve its investment objectives.

 

Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Trustees (the Board) so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the Adviser).

 

Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market, but prior to the close of business on the day the securities are being valued. Debt obligations for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the securities are valued using the closing bid price, unless the Board determines such amount does not reflect the securities’ fair value, in which case these securities will be fair valued as determined by the Board. Certain securities are valued principally using dealer quotations. Futures contracts are valued at the closing settlement price of the exchange or board of trade on which the applicable contract is traded. OTC futures and options on futures for which market quotations are readily available will be valued by quotations received from a pricing

 

14 

 

 

The Gabelli Global Small and Mid Cap Value Trust

Notes to Financial Statements (Unaudited) (Continued)

 

 

service or, if no quotations are available from a pricing service, by quotations obtained from one or more dealers in the instrument in question by the Adviser.

 

Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S. dollar value American Depositary Receipt securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security.

 

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below: 

●

Level 1 — quoted prices in active markets for identical securities;

●

Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and

●

Level 3 — significant unobservable inputs (including the Board’s determinations as to the fair value of investments).

 

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments in securities by inputs used to value the Fund’s investments as of June 30, 2021 is as follows:

 

		Valuation Inputs
		Level 1 Quoted Prices				Level 2 Other Significant Observable Inputs				Level 3 Significant Unobservable Inputs (a)				Total Market Value at 06/30/21
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
Entertainment		$	10,347,393			$	135,528				—			$	10,482,921
Health Care			12,761,135				99,365				—				12,860,500
Other Industries (b)			153,038,384				—				—				153,038,384
Total Common Stocks			176,146,912				234,893				—				176,381,805
Preferred Stocks (b)			373,424				317,363				—				690,787
Convertible Preferred Stocks (b)			129,000				—				—				129,000
Mandatory Convertible Securities (b)			657,360				—				—				657,360
Rights (b)			—				22,500			$	0				22,500
Warrants (b)			57,837				—				—				57,837
U.S. Government Obligations			—				11,339,683				—				11,339,683
TOTAL INVESTMENTS IN SECURITIES – ASSETS		$	177,364,533			$	11,914,439			$	0			$	189,278,972

 

 

(a)	The inputs for this security are not readily available and are derived based on the judgment of the Adviser according to procedures approved by the Board of Trustees.

(b)	Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.

 

15 

 

 

The Gabelli Global Small and Mid Cap Value Trust

Notes to Financial Statements (Unaudited) (Continued)

 

 

Additional Information to Evaluate Qualitative Information.

 

General. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds are ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

 

Fair Valuation. Fair valued securities may be common or preferred equities, warrants, options, rights, or fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. When fair valuing a security, factors to consider include recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

 

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These may include backtesting the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

 

Investments in Other Investment Companies. The Fund may invest, from time to time, in shares of other investment companies (or entities that would be considered investment companies but are excluded from the definition pursuant to certain exceptions under the 1940 Act) (the Acquired Funds) in accordance with the 1940 Act and related rules. Shareholders in the Fund would bear the pro rata portion of the periodic expenses of the Acquired Funds in addition to the Fund’s expenses. For the six months ended June 30, 2021, the Fund’s pro rata portion of the periodic expenses charged by the Acquired Funds was 3 basis points.

 

Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at current exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gain/(loss) on investments.

 

16 

 

 

The Gabelli Global Small and Mid Cap Value Trust

Notes to Financial Statements (Unaudited) (Continued)

 

 

Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers.

 

Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

 

Restricted Securities. The Fund is not subject to an independent limitation on the amount it may invest in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and, accordingly, the Board will monitor their liquidity. For the restricted security held as of June 30, 2021, please refer to the Schedule of Investments.

 

Securities Transactions and Investment Income. Securities transactions are accounted for on the trade date with realized gain/(loss) on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on an accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method or amortized to earliest call date, if applicable. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.

 

Distributions to Shareholders. Distributions to common shareholders are recorded on the ex-dividend date. Distributions to shareholders are based on income and capital gains as determined in accordance with federal income tax regulations, which may differ from income and capital gains as determined under GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities, passive foreign investment companies, and foreign currency transactions held by the Fund, timing differences, and differing characterizations of distributions made by the Fund. Distributions from net investment income for federal income tax purposes include net realized gains on foreign currency transactions. These book/ tax differences are either temporary or permanent in nature. To the extent these differences are permanent, adjustments are made to the appropriate capital accounts in the period when the differences arise. These reclassifications have no impact on the NAV of the Fund.

 

Under the Fund’s current common share distribution policy announced February 25, 2019, the Fund declares and pays quarterly distributions from net investment income, capital gains, and paid-in capital. The actual source of the distribution is determined after the end of the year. Pursuant to this policy, distributions during the year

 

17 

 

 

The Gabelli Global Small and Mid Cap Value Trust

Notes to Financial Statements (Unaudited) (Continued)

 

 

may be made in excess of required distributions. To the extent such distributions are made from current earnings and profits, they are considered ordinary income or long term capital gains. Distributions sourced from paid-in capital should not be considered as dividend yield or the total return from an investment in the Fund. The Board will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s NAV and the financial market environment. The Fund’s distribution policy is subject to modification by the Board at any time.

 

Distributions to shareholders of the Fund’s 5.450% Series A Cumulative Preferred Shares (Series A Preferred) are recorded on a daily basis and are determined as described in Note 5.

 

The tax character of distributions paid during the year ended December 31, 2020 was as follows:

 

		Common				Preferred
Distributions paid from:
Ordinary income (inclusive of short term capital gains)		$	8,229			$	28,240
Net long term capital gains			468,208				1,606,760
Return of capital			5,424,278				—
Total distributions paid		$	5,900,715			$	1,635,000

 

Provision for Income Taxes. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the Code). It is the policy of the Fund to comply with the requirements of the Code applicable to regulated investment companies and to distribute substantially all of its net investment company taxable income and net capital gains. Therefore, no provision for federal income taxes is required

 

The following summarizes the tax cost of investments and the related net unrealized appreciation at June 30, 2021:

 

		Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Appreciation
Investments		$133,833,268		$60,242,420		$(4,796,716)		$55,445,704

 

The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. During the six months ended June 30, 2021, the Fund did not incur any income tax, interest or penalties. As of June 30, 2021, the Adviser has reviewed the open tax years and concluded that there was no tax impact to the Fund’s net assets or results of operations. The Fund’s current federal and state tax returns will remain open for three fiscal years, subject to examination. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.

 

3.  Investment Advisory Agreement and Other Transactions. The Fund has entered into an investment advisory agreement (the Advisory Agreement) with the Adviser which provides that the Fund will pay the Adviser a fee, computed weekly and paid monthly, equal on an annual basis to 1.00% of the value of the Fund’s average

 

18 

 

 

The Gabelli Global Small and Mid Cap Value Trust

Notes to Financial Statements (Unaudited) (Continued)

 

 

weekly net assets including the liquidation value of preferred stock. In accordance with the Advisory Agreement, the Adviser provides a continuous investment program for the Fund’s portfolio and oversees the administration of all aspects of the Fund’s business and affairs.

 

During the six months ended June 30, 2021, the Fund paid $2,580 in brokerage commissions on security trades to G.research, LLC, an affiliate of the Adviser.

 

During the six months ended June 30, 2021, the Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. The amount of such expenses paid through this directed brokerage arrangement during this period was $1,142.

 

The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement between the Fund and the Adviser. Under the sub-administration agreement with Bank of New York Mellon, the fees paid include the cost of calculating the Fund’s NAV. The Fund reimburses the Adviser for this service. During the six months ended June 30, 2021, the Fund accrued $22,500 in accounting fees in the Statement of Operations.

 

As per the approval of the Board, the Fund compensates officers of the Fund, who are employed by the Fund and are not employed by the Adviser (although the officers may receive incentive based variable compensation from affiliates of the Adviser). During the six months ended June 30, 2021, the Fund accrued $45,661 in payroll expenses in the Statement of Operations.

 

The Fund pays retainer and per meeting fees to Trustees not affiliated with the Adviser, plus specified amounts to the Lead Trustee and Audit Committee Chairman. Trustees are also reimbursed for out of pocket expenses incurred in attending meetings. Trustees who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund.

 

4.  Portfolio Securities. Purchases and sales of securities during the six months ended June 30, 2021, other than short term securities and U.S. Government obligations, aggregated $20,719,964 and $24,462,558, respectively.

 

5.  Capital. The Fund is authorized to issue an unlimited number of common shares of beneficial interest (par value $0.001). The NAV per share of the Fund was reduced by approximately $1.02 per share on the day the additional shares were issued below NAV. The Board has authorized the repurchase and retirement of its common shares on the open market when the shares are trading at a discount of 7.5% or more (or such other percentage as the Board may determine from time to time) from the NAV of the shares. During the six months ended June 30, 2021 and the year ended December 31, 2020 the Fund repurchased and retired 131,941 and 381,313 common shares, respectively, at an investment of $1,850,105 and $3,739,860, respectively, and an average discount of 14.45% and 17.49%, respectively, from its net asset value.

 

19 

 

 

The Gabelli Global Small and Mid Cap Value Trust

Notes to Financial Statements (Unaudited) (Continued)

 

 

Transactions in shares of common stock were as follows:

 

		Six Months Ended  June 30, 2021  (Unaudited)								Year Ended  December 31, 2020
		Shares				Amount				Shares				Amount
Net decrease from repurchase of common shares			(131,941	)		$	(1,850,105	)			(381,313	)		$	(3,739,860	)

 

The Fund’s Declaration of Trust, as amended, authorizes the issuance of 1,200,000 shares of $0.001 par value Cumulative Preferred Shares (Preferred Shares). The Preferred Shares are senior to the common shares and result in the financial leveraging of the common shares. Such leveraging tends to magnify both the risks and opportunities to common shareholders. Dividends on the Series A Preferred are cumulative. The Fund is required by the 1940 Act and by the Fund’s Statement of Preferences to meet certain asset coverage tests with respect to the Preferred Shares. If the Fund fails to meet these requirements and does not correct such failure, the Fund may be required to redeem, in part or in full, the Preferred Shares at the redemption price of $25 per share plus an amount equal to the accumulated and unpaid dividends whether or not declared on such shares in order to meet these requirements. Additionally, failure to meet the foregoing asset coverage requirements could restrict the Fund’s ability to pay dividends to common shareholders and could lead to sales of portfolio securities at inopportune times. The income received on the Fund’s assets may vary in a manner unrelated to the fixed rates, which could have either a beneficial or detrimental impact on net investment income and gains available to common shareholders.

 

On May 10, 2016, the Fund received $28,885,357 (after underwriting discounts of $945,000 and offering expenses of $169,643) from the public offering of 1,200,000 shares of Series A Preferred. Commencing May 10, 2021 and at any time thereafter, the Fund, at its option, may redeem the Series A Preferred in whole or in part at the redemption price plus an amount equal to the accumulated and unpaid dividends whether or not declared on such shares. In addition, the Board has authorized the repurchase of Series A Preferred Shares in the open market at prices less than the $25 liquidation value per share. During the six months ended June 30, 2021 and the year ended December 31, 2020, the Fund did not repurchase any of the Series A Preferred. At June 30, 2021, 1,200,000 Series A Preferred were outstanding and accrued dividends amounted to $22,708.

 

The holders of Preferred Shares generally are entitled to one vote per share held on each matter submitted to a vote of shareholders of the Fund and will vote together with holders of common stock as a single class. The holders of Preferred Shares voting together as a single class also have the right currently to elect two Trustees and, under certain circumstances, are entitled to elect a majority of the Board of Trustees. In addition, the affirmative vote of a majority of the votes entitled to be cast by holders of all outstanding shares of the preferred stock, voting as a single class, will be required to approve any plan of reorganization adversely affecting the preferred stock, and the approval of two-thirds of each class, voting separately, of the Fund’s outstanding voting stock must approve the conversion of the Fund from a closed-end to an open-end investment company. The approval of a majority (as defined in the 1940 Act) of the outstanding preferred stock and a majority (as defined in the 1940 Act) of the Fund’s outstanding voting securities are required to approve certain other actions, including changes in the Fund’s investment objectives or fundamental investment policies.

 

20 

 

 

The Gabelli Global Small and Mid Cap Value Trust

Notes to Financial Statements (Unaudited) (Continued)

 

 

6.  Indemnifications. The Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

 

7.  Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.