LETTER
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August 13, 2008
Veronica Castillo, Esq.
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036-6522
RE: Gabelli Natural Resources, Gold & Income Trust
333-152424; 811-22216
Dear Ms. Castillo:
We have reviewed the registration statement on Form N-2 for
the
Gabelli Natural Resources, Gold & Income Trust, filed with the
Securities and Exchange Commission on July 18, 2008. We have the
following comments:
PROSPECTUS
Prospectus Summary
1. Under the heading, "Investment Objective and Policies," the
disclosure states that "the Fund`s primary investment objective is
to
provide a high level of current income." Please identify and
discuss
the types of securities (e.g. bonds, equities) in which the Fund
will
primarily invest in order to meet its objective of providing a
high
level of current income. In addition, it appears that the terms
"policy" and "strategy" are used interchangeably. Please use one
term or the other consistently.
2. Under the heading, "Investment Objective and Policies," the
disclosure states that "the Fund will attempt to achieve its
objectives by investing at least 80% of its assets in securities
of
companies principally engaged in the natural resources and gold
industries and income-producing securities." Please make clear
that
the Fund will invest at least 80% of its assets in securities of
companies principally engaged in the natural resources and gold
industries. In addition, for the 80% test, please make clear that
80% of the Fund`s assets includes the amount of any borrowings for
investment purposes.
3. Under the heading, "Investment Objective and Policies," the
disclosure states, "The Fund will invest at least 25% of its
assets
in the securities of companies principally engaged in the
exploration, production or distribution of natural resources, such
as
base metals, metals, paper, food, agriculture, forestry products,
gas, oil and other commodities as well as related transportation
companies and equipment manufacturers." Please explain why
"related
transportation companies and equipment manufactures" are included
in
the definition of companies principally engaged in the natural
resources industry. In addition, please provide examples of such
companies.
4. Under the heading, "Investment Objective and Policies," the
disclosure states, "The Fund will invest at least 25% of its
assets
in the securities of companies principally engaged in the
exploration, mining, fabrication, processing, distribution or
trading
of gold or the financing, managing, controlling or operating of
companies engaged in "gold-related" activities." Please define
"gold-related" activities and provide examples of such activities.
Please explain why companies in the "financing, managing,
controlling
or operating of companies engaged in "gold related" activities"
are
included in the definition of companies principally engaged in the
gold industry. In addition, please provide examples of such
companies.
5. Under the heading "Investment Objective and Policies," the
disclosure states that "the Fund intends to earn income through an
option strategy which will normally consist of writing (selling)
call
options on equity securities in its portfolio ("covered calls"),
but
may, in amounts up to 15% of the Fund`s assets, consist of writing
uncovered call options on securities not held by the Fund, indices
comprised of Natural Resource Companies or Gold Companies or
exchange-traded funds comprised of such issuers and put options on
securities in its portfolio." Please explain how the Fund intends
to
meet its objective of earning a high level of income with option
premiums (e.g. without a commitment to invest in income-producing
securities). Please disclose that the premiums received by the
Fund
from writing options results in short-term capital gains and not
income.
6. Under the heading, "Risks Associated with Covered Calls and
Other
Option Transactions," please discuss separately (under its own
heading) the risk of writing uncovered call options. Please make
a
similar change to the section entitled, "Risks Associated with
Covered Calls and Other Option Transactions" on page 25.
Portfolio Turnover
7. Under this heading the disclosure states that "The investment
policies of the Fund, including its strategy of writing covered
call
options on securities in its portfolio, is expected to result in
portfolio turnover that is higher than that of other investment
companies, and is expected to be higher than 100%." Please
include
the risk of high portfolio turnover in the Prospectus Summary.
Leverage
8. Under this heading, the disclosure states, "The Fund does not
currently anticipate borrowing from banks or other financial
institutions, issuing preferred shares or otherwise levering the
common shares. However, the Fund will monitor interest rates and
market conditions and anticipates that it will leverage the common
shares at some point in the future." If it is expected that the
Fund
will leverage the common shares within the first year of
operations,
please include the effect of the leverage in the fee table and
expense example.
STATEMENT OF ADDITIONAL INFORMATION
Derivative Instruments
9. Because the Fund may invest up to 15% of its assets in
uncovered
call options, please add a discussion of these securities and
their
risks.
Ownership of Securities
10. The disclosure under this heading relates to the portfolio
managers of the Fund. Please move this disclosure above Portfolio
Holdings Information.
GENERAL
11. We note that portions of the filing are incomplete. We may
have
additional comments on such portions when you complete them in a
pre-
effective amendment, on disclosures made in response to this
letter,
on information supplied supplementally, or on exhibits added in
any
pre-effective amendments.
12. If you intend to omit certain information from the form of
prospectus included with the registration statement that is
declared
effective in reliance on Rule 430A under the Securities Act,
please
identify the omitted information to us supplementally, preferably
before filing the Fund`s final pre-effective amendment.
13. Response to this letter should be in the form of a pre-
effective
amendment filed pursuant to Rule 472 under the Securities Act.
Where
no change will be made in the filing in response to a comment,
please
indicate this fact in a supplemental letter and briefly state the
basis for your position.
TANDY LETTER
We urge all persons who are responsible for the accuracy and
adequacy of the disclosure in the filings reviewed by the staff to
be
certain that they have provided all information investors require
for
an informed decision. Since the Fund and its management are in
possession of all facts relating to the Fund`s disclosure, they
are
responsible for the accuracy and adequacy of the disclosures they
have made.
Notwithstanding our comments, please furnish a letter
acknowledging that
* Should the Commission or the staff, acting pursuant to delegated
authority, declare the filing effective, it does not foreclose the
Commission from taking any action with respect to the filing;
* The action of the Commission or the staff, acting pursuant to
delegated authority, in declaring the filing effective, does not
relieve the Fund from its full responsibility for the adequacy and
accuracy of the disclosure in the filing; and
* The Fund may not assert this action as defense in any proceeding
initiated by the Commission or any person under the federal
securities laws of the United States.
In addition, please be advised that the Division of
Enforcement
has access to all information you provide to the staff of the
Division of Investment Management in connection with our review of
your filing or in response to our comments on your filing.
We will consider a written request for acceleration of the
effective date of the registration statement as a confirmation of
the
fact that those requesting acceleration are aware of their
respective
responsibilities. We will act on the request and, pursuant to
delegated authority, grant acceleration of the effective date.
* * * *
If you have any questions about these comments, please
call
me at 202-551-6957.
Sincerely,
Laura E. Hatch
Staff Accountant