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FIRST QUARTER REPORT
MARCH 31, 2001
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Our cover icon represents the underpinnings of Gabelli. The Teton
mountains in Wyoming represent what we believe in in America -- that
creativity, ingenuity, hard work and a global uniqueness provide
enduring values. They also stand out in an increasingly complex,
interconnected and interdependent economic world.
INVESTMENT OBJECTIVE:
The Gabelli Utility Trust is a closed-end, non-diversified management
investment company whose primary objectives are long-term growth of
capital and income. The Fund will invest in companies that provide
products, services or equipment for the generation or distribution of
electricity, gas and water. Additionally, the Fund will invest in
companies in telecommunications services or infrastructure operations.
THIS REPORT IS PRINTED ON RECYCLED PAPER.
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TO OUR SHAREHOLDERS,
The first quarter of 2001 was challenging to say the least. In January,
utility stocks plunged over 15% by mid-month before staging a partial recovery.
The woes of the California utilities continue to weigh heavily on utility
shares. California's political leadership wasted precious time, and we are now
moving into the summer season of peak demand with the utility companies in
precarious financial condition and with wholesale markets in complete disarray.
With retail rates belatedly increased, but still uncoupled from volatile
wholesale markets while market-based wholesale rates continue to rise, it seems
that 2001 is likely to be even worse than last year. Snowpack in the Pacific
Northwest is 60% of normal, and hydroelectric power resources were further
depleted by the Clinton Administration's efforts to buy time for the California
politicians to craft a long-term solution. Unfortunately, the California
politicians talked a lot but accomplished little. In April, the Pacific Gas and
Electric Company filed for reorganization under Chapter 11. Southern California
Edison reached agreement with Governor Davis for a restructuring out of
bankruptcy that, if adopted by the legislature, should preserve Edison's
viability. Time is short and legislation needs to be adopted quickly, however.
Because of the depletion of hydro resources combined with tight regional
wholesale power markets, wholesale prices in the West this year are likely to be
up over 20% from the summer 2000 season.
The California fiasco has utterly discredited the disaggregation model for
deregulation of power supply, which involves the divestiture of utility
generation assets. Because most states have already implemented plans to
deregulate generation, however, it is too late to halt the move towards
competitive wholesale power markets, nor would it be wise to try. In spite of
the California experience, this is ultimately a good thing for customers and, we
believe, for investors.
The unsettled wholesale power market is causing utility companies to face
greater regulatory scrutiny and pressure, and is partly responsible, in our
opinion, for the extreme difficulty that utility companies are having in
completing utility mergers and acquisitions. The Consolidated Edison/Northeast
Utilities merger collapsed in the first quarter, while DTE Energy's acquisition
of MCN Energy was renegotiated to a lower price. In March it became clear that
the FPL/Entergy merger was in trouble, and early in April the companies called
it off. It seems likely that the pace of utility consolidation is going to slow
down this year from the breakneck pace of 1998 to 2000.
The tight wholesale power markets are good news for wholesale generators
and for natural gas suppliers, both well-represented in The Gabelli Utility
Trust (the "Trust").
The climate for telecommunications companies is dismal almost beyond
belief. Competitive local exchange companies ("CLEC"s) such as ICG
Communications and Winstar went toe-to-toe with the incumbent local exchange
carriers, and the incumbents won hands down. CLECs like E-Spire followed ICG
Communications and GST Telecom down the rocky road to bankruptcy, and others are
likely to follow. The Regional Bell companies enjoyed advantages of ubiquity,
solvency and incumbency that proved insurmountable for the challengers under a
Democratic administration, and the Bells are likely to do even better under the
new Republican administration. We like the Bells and the Trust owns all three of
them. While the stocks have performed poorly this year so far due to weak
earnings relative to expectations, they are likely to do better as investors
seek safe havens with reasonable valuations and respectable earnings growth.
INVESTMENT RESULTS (a)
--------------------------------------------------------------------------------
Quarter
-------------------------------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
2001: Net Asset Value $7.83 -- -- -- --
Total Return (2.8)% -- -- -- --
----------------------------------------------------------------------------------------------------------------
2000: Net Asset Value $7.66 $7.63 $8.26 $8.21 $8.21
Total Return 2.6% 1.5% 10.3% 6.3% 22.0%
----------------------------------------------------------------------------------------------------------------
1999: Net Asset Value -- -- $7.51 $7.62 $7.62
Total Return -- -- 0.1% 3.5% 3.6%
----------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS - MARCH 31, 2001
---------------------------------------
NAV AVERAGE AVERAGE ANNUAL
ANNUAL RETURN (A) INVESTMENT RETURN (C)
----------------- ---------------------
1 Year ............ 15.61% 25.62%
Life of Fund (b) .. 12.62% 13.03%
---------------------------------------------------------------------------
(a) Total returns and average annual returns reflect changes in net asset value
and reinvestment of distributions and are net of expenses. Life of Fund return
based on initial net asset value of $7.50. Of course, the returns noted
represent past performance and do not guarantee future results. Investment
returns and the principal value of an investment will fluctuate. When shares are
sold they may be worth more or less than their original cost.
(b) From commencement of investment operations on July 9, 1999.
(c) Life of Fund return based on initial offering price of $7.50. Total returns
and average annual returns reflect changes in closing market values on the New
York Stock Exchange and reinvestment of distributions.
--------------------------------------------------------------------------------
INVESTMENT PERFORMANCE
For the first quarter ended March 31, 2001, the Trust net asset value
("NAV") declined 2.83% after adjusting for the reinvestment of the $0.15 per
share in distributions. The Standard & Poor's ("S&P") Utility Index and the
Lipper Utility Fund Average declined 7.08% and 6.64%, respectively, over the
same period. The S&P Utility Index is an unmanaged indicator of electric and gas
utility stock performance, while the Lipper Average reflects the average
performance of mutual funds classified in this particular category.
The Trust was up 15.61% for the trailing twelve-month period after
adjusting for the reinvestment of the $1.00 per share in distributions. The S&P
Utility Index rose 37.27% while the Lipper Utility Fund Average declined 5.64%,
over the same twelve-month period. Since inception on July 9, 1999 through March
31, 2001, the Trust had a cumulative total return of 22.85%, including
adjustments of $1.30 per share in distributions, which equates to an average
annual total return of 12.62%.
[PYRAMID GRAPHIC OMITTED.]
EDGAR REPRESENTATION OF PYRAMID TEXT AS FOLLOWS:
EPS
PMV
MANAGEMENT
CASH FLOW
RESEARCH
2
The Utility Trust's common shares ended the first quarter at $8.40 per
share on the New York Stock Exchange, a premium to the net asset value of 7.28%
and a total return decline of 2.19% for the first quarter. The Trust's common
shares rose 25.62% for the trailing twelve-month period after adjusting for all
distributions.
OUR APPROACH
There are nearly 80 publicly traded investor-owned electric utilities in
the U.S., and this is at least 50 more than we need from the standpoint of
economic efficiency. The balkanized structure of the industry is inherently
inefficient, and competitive forces are now putting pressure on the marginal
players. The big companies feel the need to get bigger, and the small companies
are selling out as the cost of staying in the game rises. It is only because of
a complex and lengthy merger review and approval process that the industry has
remained so fragmented. Our investments in regulated utility companies have
primarily, though not exclusively, focused on fundamentally sound, reasonably
priced mid-cap and small-cap utilities that are likely acquisition targets for
large utilities seeking to bulk up. We also like the beneficiaries of developing
trends. This has led to our ongoing focus on natural gas pipelines and storage
operators, and wholesale electric generators, another group that is in our
opinion increasingly ripe for consolidation.
COMMENTARY
In our view, the major investment theme for electric, gas and water
utilities can be summed up in two words: size matters. Electric generators with
a large and geographically diverse portfolio of generating plants can trade
around their structural long positions to enhance returns while avoiding the
risk of asset concentration in a single market that experiences a hiccup, as all
markets do from time to time. Electric, gas and water distribution companies can
spread their substantial fixed costs over a larger base of customers, and see
the cost per customer decline, enhancing earnings while reducing prices. The
current unsettled market conditions are likely to cause the consolidation
activity seen over the past several years to slow, but the underlying economics
continue to point to continuing merger and acquisition activity over time. We
are in the eye of the hurricane, and the winds are going to blow again once we
have waited out the current lull.
LET'S TALK STOCKS
The following are stock specifics on selected holdings of our Trust.
Favorable earnings prospects do not necessarily translate into higher stock
prices, but they do express a positive trend which we believe will develop over
time.
AES CORP. (AES - $49.96 - NYSE) is primarily a wholesale generating company in
the U.S. and also has substantial generation, transmission and distribution
operations abroad, with a particular focus on the underdeveloped Latin American
market. Earnings per share ("EPS") have grown rapidly for several years and are
likely to continue to grow for the next several years.
BANGOR HYDRO-ELECTRIC CO. (BGR - $26.23 - NYSE) agreed to be acquired by
Canadian utility NS Power Holdings Inc. ("NSH") for $206 million in cash. NSH
will pay $26.50 per share, a 77% premium to BGR's closing price on the day
before the deal was announced. The merger is expected to close in 9 to 12
months, subject to several regulatory approvals. Those approvals are needed from
the Maine Public Utilities Commission, the Federal Energy Regulatory Commission
("FERC"), and the Securities Exchange Commission. NSH said that the purchase is
part of its strategy to grow its businesses outside of Canada. BGR will operate
as a standalone division within the company and will be
3
the base for NSH to launch other initiatives in the U.S. In March 2001, NSH
changed its name to Emera Inc. (EMA.CA - $26.79 - Toronto Stock Exchange).
CH ENERGY GROUP INC. (CHG - $44.25 - NYSE) primarily supplies electricity,
natural gas, propane, and fuel oil to approximately 625,000 customers located in
New York State's Mid-Hudson Valley through its subsidiaries and affiliates. With
the completed sale of CHG's generating assets, the company received proceeds of
$695 million and retained a purchase agreement with the acquirer to provide
electric customers with price stability over a three-year period.
NIAGARA MOHAWK HOLDINGS INC. (NMK - $16.90 - NYSE) agreed to be acquired by the
National Grid Group (the "Grid") (NGG - $38.00 - NYSE) of the United Kingdom in
August 2000 for $19 per share in cash and stock. The acquisition is expected to
close by the end of 2001, although the Grid is pushing hard to move up the
closing date. The company's revenue growth prospects are minimal, but its
operations are inefficient and its cost structure is bloated. The Grid expects
to be able to reduce Niagara Mohawk's cost base by 10%, or $90 million. Assuming
that the Grid attains its cost reduction targets, which we think are readily
attainable, the acquisition will be accretive to the Grid's EPS in the first
year.
PHILADELPHIA SUBURBAN CORP. (PSC - $23.56 - NYSE) is one of the nation's
largest, publicly-traded water utilities serving approximately two million
residents in six eastern and midwestern states. PSC's largest shareholder is
Vivendi Universal SA (V - $60.65 - NYSE), a French conglomerate with extensive
worldwide water interests. PSC has been able to grow with disciplined
acquisitions and purchasing adjacent local water systems. This has helped
maintain its 4% annual customer growth rate and avoids reliance solely on rate
increases.
RGS ENERGY GROUP INC. (RGS - $37.00 - NYSE) is a small electric and gas utility
serving metropolitan Rochester, NY, a city that is the economic hub of upstate
New York. In February 2001, RGS agreed to be acquired by Energy East Corp. (EAS
- $17.35 - NYSE), its upstate neighbor, for $39.50 per share. We support this
deal. RGS got a good premium for its shareholders while mitigating lingering
concerns about the deteriorating outlook for major industrial customers,
including Xerox and Eastman Kodak. Energy East is paying a reasonable multiple
and is acquiring a company with increasingly valuable and strategic generation
assets and a service territory that presents ample scope for cost reduction over
time. Well done to both management teams.
MONTHLY DISTRIBUTIONS
The Trust has set a $.05 per share monthly distribution policy for the
year 2001.
WWW.GABELLI.COM
Please visit us on the Internet. Our homepage at http://www.gabelli.com
contains information about Gabelli Asset Management Inc., the Gabelli Mutual
Funds, IRAs, 401(k)s, quarterly reports, closing prices and other current news.
You can send us e-mail at closedend@gabelli.com.
In our efforts to bring our shareholders more timely portfolio
information, Gabelli Fund's portfolio managers regularly participate in chat
sessions at www.gabelli.com as reflected below.
WHO WHEN
--- ----
Special Chats: Mario J. Gabelli First Monday of each month
Howard Ward First Tuesday of each month
4
In addition, every Wednesday will feature a different portfolio manager.
The Upcoming Wednesday chat schedule is as follows:
MAY JUNE JULY
--- ---- ----
1st Wednesday Ivan Arteaga Caesar Bryan July 4th - Holiday
2nd Wednesday Walter Walsh Kellie Stark Charles Minter
3rd Wednesday Jeff Fahrenbruch Ivan Arteaga Walter Walsh
4th Wednesday Tim O'Brien Barbara Marcin Barbara Marcin
All chat sessions start at 4:15 ET. Please arrive early, as participation
is limited.
You may sign up for our HIGHLIGHTS email newsletter at www.gabelli.com and
receive early notice of chat sessions, closing mutual fund prices, news events
and media sightings.
Sincerely,
/S/ SIGNATURE OF MARIO J. GABELLI
MARIO J. GABELLI, CFA
Portfolio Manager and Chief Investment Officer
May 8, 2001
--------------------------------------------------------------------------------
TOP TEN HOLDINGS
MARCH 31, 2001
--------------
Niagara Mohawk Holdings Inc. Conectiv Inc.
RGS Energy Group Inc. Bangor Hydro-Electric Co.
Western Resources Inc. Northeast Utilities
El Paso Electric Co. NSTAR
Southwest Gas Corp. CH Energy Group Inc.
--------------------------------------------------------------------------------
NOTE: The views expressed in this report reflect those of the portfolio manager
only through the end of the period stated in this report. The manager's views
are subject to change at any time based on market and other conditions.
5
THE GABELLI UTILITY TRUST
PORTFOLIO OF INVESTMENTS
MARCH 31, 2001 (UNAUDITED)
SHARES MARKET VALUE
------ ------------
COMMON STOCKS -- 73.4%
AGRICULTURE -- 0.1%
10,600 Cadiz Inc.+ .......................... $ 105,338
-----------
CABLE -- 0.1%
2,000 NTL Inc.+ ............................ 50,300
-----------
COMMUNICATIONS EQUIPMENT -- 0.8%
65,000 Furukawa Electric Co. Ltd. ........... 674,298
-----------
ENERGY AND UTILITIES: ELECTRIC-- 23.7%
15,742 AES Corp.+ ........................... 786,470
85,000 Bangor Hydro-Electric Co. ............ 2,229,550
39,000 Cinergy Corp. ........................ 1,308,450
5,000 Cleco Corp. .......................... 227,250
115,000 Conectiv Inc. ........................ 2,512,750
38,000 DPL Inc. ............................. 1,067,800
30,000 GPU Inc. ............................. 974,700
52,200 Maine Public Service Co. ............. 1,367,640
250,000 Niagara Mohawk Holdings Inc.+ ........ 4,225,000
120,000 Northeast Utilities .................. 2,085,600
2,000 Orion Power Holdings Inc.+ ........... 61,400
57,000 SCANA Corp. .......................... 1,547,550
20,000 TECO Energy Inc. ..................... 599,200
25,000 UIL Holdings Corp. ................... 1,187,500
20,000 Unisource Energy Corp. ............... 420,000
-----------
20,600,860
-----------
ENERGY AND UTILITIES: INTEGRATED -- 14.9%
13,000 Allete ............................... 335,660
40,000 CH Energy Group Inc. ................. 1,770,000
37,000 DQE Inc. ............................. 1,078,550
10,000 Edison International ................. 126,400
6,000 Empire District Electric Co. ......... 112,140
22,000 Entergy Corp. ........................ 836,000
50,000 Florida Public Utilities Co. ......... 750,000
26,000 Madison Gas & Electric Co. ........... 607,750
35,000 MCN Energy Group Inc. ................ 903,000
22,000 Montana Power Co. .................... 310,200
52,000 NSTAR ................................ 1,991,600
13,000 PG&E Corp. ........................... 161,850
40,000 Progress Energy Inc. ................. 17,800
5,000 Puget Energy Inc. .................... 114,400
150,000 Western Resources Inc. ............... 3,577,500
7,000 WPS Resources Corp. .................. 238,910
-----------
12,931,760
-----------
ENERGY AND UTILITIES: NATURAL GAS -- 19.0%
40,000 AGL Resources Inc. ................... 876,400
34,000 Delta Natural Gas Co. Inc. ........... 658,750
14,000 Dynegy Inc., Cl. A ................... 714,140
213,000 El Paso Electric Co.+ ................ 3,109,800
7,000 National Fuel Gas Co. ................ 375,060
12,000 Nicor Inc. ........................... 447,240
20,000 Peoples Energy Corp. ................. 777,400
25,000 Piedmont Natural Gas Co. Inc. ........ 887,500
100,000 RGS Energy Group Inc. ................ 3,700,000
109,000 SEMCO Energy Inc. .................... 1,547,800
16,433 Southern Union Co. ................... 345,093
145,000 Southwest Gas Corp. .................. 3,023,250
-----------
16,462,433
-----------
ENERGY AND UTILITIES: WATER -- 5.7%
8,000 American States Water Co. ............ 264,880
11,000 Artesian Resources Corp., Cl. A ...... 277,750
25,000 Birmingham Utilities Inc. ............ 348,500
20,520 California Water Service Group ....... $ 586,872
15,000 Connecticut Water Service Inc. ....... 495,000
20,500 Middlesex Water Co. .................. 620,125
45,000 NiSource Inc.+ ....................... 124,200
4,000 Pennichuck Corp. ..................... 112,000
38,000 Philadelphia Suburban Corp. .......... 895,280
15,000 SJW Corp. ............................ 1,196,250
5,000 Southwest Water Co. .................. 59,000
-----------
4,979,857
-----------
ENVIRONMENTAL SERVICES -- 0.3%
12,000 Catalytica Energy Systems Inc.+ ...... 251,250
-----------
FOOD AND BEVERAGE -- 0.9%
20,000 Morrison Management Specialists Inc. . 797,800
-----------
SATELLITE -- 0.6%
25,000 General Motors Corp., Cl. H+ ......... 487,500
-----------
TELECOMMUNICATIONS -- 6.0%
18,000 ALLTEL Corp. ......................... 944,280
12,000 AT&T Canada Inc., Cl. B+ ............. 351,000
30,000 BellSouth Corp. ...................... 1,227,600
2,000 British Telecommunications plc, ADR .. 148,600
52,000 CenturyTel Inc. ...................... 1,495,000
12,000 Conestoga Enterprises Inc. ........... 186,000
5,000 Qwest Communications International Inc.+ 175,250
6,000 SBC Communications Inc. .............. 267,780
9,000 Verizon Communications ............... 443,700
-----------
5,239,210
-----------
WIRELESS COMMUNICATIONS -- 1.3%
35,000 Nextel Communications Inc., Cl. A+ ... 503,125
5,038 Powertel Inc.+ ....................... 277,062
2,000 Telephone & Data Systems Inc. ........ 187,000
2,015 VoiceStream Wireless Corp.+ .......... 186,136
-----------
1,153,323
-----------
TOTAL COMMON STOCKS 63,733,929
-----------
PREFERRED STOCKS -- 0.9%
TELECOMMUNICATIONS -- 0.9%
15,000 Citizens Communications Co.,
5.00% Cv. Pfd. 820,275
-----------
PRINCIPAL AMOUNT
----------------
U.S. GOVERNMENT OBLIGATIONS-- 21.6%
$18,891,000 U.S. Treasury Bills, 4.76% to 5.47%++,
due 04/19/01 to 05/24/01 18,783,053
-----------
REPURCHASE AGREEMENT -- 4.3%
3,722,000 Agreement with State Street Bank & Trust
Co., 5.27%, dated 03/30/01, due 04/02/01,
proceeds at maturity $3,723,635 (a) 3,722,000
-----------
TOTAL INVESTMENTS -- 100.2%
(Cost $81,931,716) 87,059,257
OTHER ASSETS AND LIABILITIES (NET) -- (0.2)% (158,726)
-----------
NET ASSETS -- 100.0% (11,102,636 shares outstanding) $86,900,531
===========
NET ASSET VALUE
($86,900,531 / 11,102,636 shares outstanding) $7.83
=====
--------------------
(a) Collateralized by U.S. Treasury Note, 8.50%, due 02/15/20,
market value $3,801,389.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depositary Receipt.
6
AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLAN
ENROLLMENT IN THE PLAN
It is the policy of The Gabelli Utility Trust ("Utility Trust") to
automatically reinvest dividends. As a "registered" shareholder you
automatically become a participant in the Utility Trust's Automatic Dividend
Reinvestment Plan (the "Plan"). The Plan authorizes the Utility Trust to issue
shares to participants upon an income dividend or a capital gains distribution
regardless of whether the shares are trading at a discount or a premium to net
asset value. All distributions to shareholders whose shares are registered in
their own names will be automatically reinvested pursuant to the Plan in
additional shares of the Utility Trust. Plan participants may send their stock
certificates to State Street Bank and Trust Company ("State Street") to be held
in their dividend reinvestment account. Registered shareholders wishing to
receive their distribution in cash must submit this request in writing to:
The Gabelli Utility Trust
c/o State Street Bank and Trust Company
P.O. Box 8200
Boston, MA 02266-8200
Shareholders requesting this cash election must include the shareholder's
name and address as they appear on the share certificate. Shareholders with
additional questions regarding the Plan may contact State Street at 1 (800)
336-6983.
SHAREHOLDERS WISHING TO LIQUIDATE REINVESTED SHARES held at State Street Bank
must do so in writing or by telephone. Please submit your request to the above
mentioned address or telephone number. Include in your request your name,
address and account number. The cost to liquidate shares is $2.50 per
transaction as well as the brokerage commission incurred. Brokerage charges are
expected to be less than the usual brokerage charge for such transactions.
If your shares are held in the name of a broker, bank or nominee, you should
contact such institution. If such institution is not participating in the Plan,
your account will be credited with a cash dividend. In order to participate in
the Plan through such institution, it may be necessary for you to have your
shares taken out of "street name" and re-registered in your own name. Once
registered in your own name your dividends will be automatically reinvested.
Certain brokers participate in the Plan. Shareholders holding shares in "street
name" at participating institutions will have dividends automatically
reinvested. Shareholders wishing a cash dividend at such institution must
contact their broker to make this change.
The number of shares of Common Stock distributed to participants in the Plan
in lieu of cash dividends is determined in the following manner. Under the Plan,
whenever the market price of the Utility Trust's Common Stock is equal to or
exceeds net asset value at the time shares are valued for purposes of
determining the number of shares equivalent to the cash dividends or capital
gains distribution, participants are issued shares of Common Stock valued at the
greater of (i) the net asset value as most recently determined or (ii) 95% of
the then current market price of the Utility Trust's Common Stock. The valuation
date is the dividend or distribution payment date or, if that date is not a New
York Stock Exchange trading day, the next trading day. If the net asset value of
the Common Stock at the time of valuation exceeds the market price of the Common
Stock, participants will receive shares from the Utility Trust valued at market
price. If the Utility Trust should declare a dividend or capital gains
distribution payable only in cash, State Street will buy Common Stock in the
open market, or on the New York Stock Exchange or elsewhere, for the
participants' accounts, except that State Street will endeavor to terminate
purchases in the open market and cause the Utility Trust to issue shares at net
asset value if, following the commencement of such purchases, the market value
of the Common Stock exceeds the then current net asset value.
The automatic reinvestment of dividends and capital gains distributions will
not relieve participants of any income tax which may be payable on such
distributions. A participant in the Plan will be treated for Federal income tax
purposes as having received, on a dividend payment date, a dividend or
distribution in an amount equal to the cash the participant could have received
instead of shares.
The Utility Trust reserves the right to amend or terminate the Plan as
applied to any voluntary cash payments made and any dividend or distribution
paid subsequent to written notice of the change sent to the members of the Plan
at least 90 days before the record date for such dividend or distribution. The
Plan also may be amended or terminated by State Street on at least 90 days'
written notice to participants in the Plan.
VOLUNTARY CASH PURCHASE PLAN
The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders
to increase their investment in the Utility Trust. In order to participate in
the Voluntary Cash Purchase Plan, shareholders must have their shares registered
in their own name.
Participants in the Voluntary Cash Purchase Plan have the option of making
additional cash payments to State Street for investments in the Utility Trust's
shares at the then current market price. Shareholders may send an amount from
$250 to $10,000. State Street will use these funds to purchase shares in the
open market on or about the 15th of each month. State Street will charge each
shareholder who participates $0.75, plus a pro rata share of the brokerage
commissions. Brokerage charges for such purchases are expected to be less than
the usual brokerage charge for such transactions. It is suggested that any
voluntary cash payments be sent to State Street Bank and Trust Company, P.O. Box
8200, Boston, MA 02266-8200 such that State Street receives such payments
approximately 10 days before the 15th of the month. Funds not received at least
five days before the investment date shall be held for investment in the
following month. A payment may be withdrawn without charge if notice is received
by State Street at least 48 hours before such payment is to be invested.
For more information regarding the Dividend Reinvestment Plan and Voluntary
Cash Purchase Plan, brochures are available by calling (914) 921-5070 or by
writing directly to the Utility Trust.
7
--------------------------------------------------------------------------------
THE GABELLI UTILITY TRUST
AND YOUR PERSONALPRIVACY
WHO ARE WE?
The Gabelli Utility Trust (the "Trust") is a closed-end investment
company registered with the Securities and Exchange Commission under
the Investment Company Act of 1940. We are managed by Gabelli Funds
LLC, which is affiliated with Gabelli Asset Management Inc. Gabelli
Asset Management is a publicly-held company that has subsidiaries that
provide investment advisory or brokerage services for a variety of
clients.
WHAT KIND OF NON-PUBLIC INFORMATION DO WE COLLECT ABOUT YOU IF YOU
BECOME A GABELLI CUSTOMER?
When you purchase shares of the Trust on the New York Stock Exchange,
you have the option of registering directly with our transfer agent in
order, for example, to participate in our dividend reinvestment plan.
[BULLET] INFORMATION YOU GIVE US ON YOUR APPLICATION FORM. This could
include your name, address, telephone number, social
security number, bank account number, and other information.
[BULLET] INFORMATION ABOUT YOUR TRANSACTIONS WITH US. This would
include information about the shares that you buy or sell,
it may also include information about whether you sell or
exercise rights that we have issued from time to time. If we
hire someone else to provide services--like a transfer
agent--we will also have information about the transactions
that you conduct through them.
WHAT INFORMATION DO WE DISCLOSE AND TO WHOM DO WE DISCLOSE IT?
We do not disclose any non-public personal information about our
customers or former customers to anyone, other than our affiliates,
our service providers who need to know such information and as
otherwise permitted by law. If you want to find out what the law
permits, you can read the privacy rules adopted by the Securities and
Exchange Commission. They are in volume 17 of the Code of Federal
Regulations, Part 248. The Commission often posts information about
its regulations on its web site, WWW.SEC.GOV.
WHAT DO WE DO TO PROTECT YOUR PERSONAL INFORMATION?
We restrict access to non-public personal information about you to the
people who need to know that information in order to perform their
jobs or provide services to you and to ensure that we are complying
with the laws governing the securities business. We maintain physical,
electronic, and procedural safeguards to keep your personal
information confidential.
--------------------------------------------------------------------------------
8
DIRECTORS AND OFFICERS
THE GABELLI UTILITY TRUST
ONE CORPORATE CENTER, RYE, NY 10580-1434
DIRECTORS
Mario J. Gabelli, CFA
CHAIRMAN AND CHIEF INVESTMENT OFFICER,
GABELLI ASSET MANAGEMENT INC.
Dr. Thomas E. Bratter
PRESIDENT, JOHN DEWEY ACADEMY
Felix J. Christiana
FORMER SENIOR VICE PRESIDENT,
DOLLAR DRY DOCK SAVINGS BANK
Anthony J. Colavita
ATTORNEY-AT-LAW,
ANTHONY J. COLAVITA, P.C.
James P. Conn
FORMER MANAGING DIRECTOR AND CHIEF INVESTMENT OFFICER,
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.
Vincent D. Enright
FORMER SENIOR VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER,
KEYSPAN ENERGY CORP.
Frank J. Fahrenkopf, Jr.
PRESIDENT AND CHIEF EXECUTIVE OFFICER,
AMERICAN GAMING ASSOCIATION
John D. Gabelli
SENIOR VICE PRESIDENT,
GABELLI & COMPANY, INC.
Robert J. Morrissey
ATTORNEY-AT-LAW
MORRISSEY, HAWKINS &LYNCH
Karl Otto Pohl
FORMER PRESIDENT, DEUTSCHE BUNDESBANK
Anthony R. Pustorino
CERTIFIED PUBLIC ACCOUNTANT,
PROFESSOR, PACE UNIVERSITY
Salvatore J. Zizza
CHAIRMAN, THE BETHLEHEM CORP.
OFFICERS
Mario J. Gabelli, CFA
PRESIDENT & CHIEF INVESTMENT OFFICER
Bruce N. Alpert
VICE PRESIDENT & TREASURER
David I. Schachter
VICE PRESIDENT & OMBUDSMAN
James E. McKee
SECRETARY
INVESTMENT ADVISOR
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1434
CUSTODIAN
Boston Safe Deposit and Trust Company
COUNSEL
Skadden, Arps, Slate, Meagher & Flom, LLP
TRANSFER AGENT AND REGISTRAR
State Street Bank and Trust Company
STOCK EXCHANGE LISTING
Common
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NYSE-Symbol: GUT
Shares Outstanding: 11,102,636
The Net Asset Value appears in the Publicly Traded Funds column,
under the heading "Specialized Equity Funds," in Sunday's The New
York Times and in Monday's The Wall Street Journal. It is also
listed in Barron's Mutual Funds/Closed End Funds section under the
heading "Specialized Equity Funds."
The Net Asset Value may be obtained each day by calling (914) 921-5071.
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For general information about the Gabelli Funds, call 1-800-GABELLI
(1-800-422-3554), fax us at 914-921-5118, visit Gabelli Funds' Internet homepage
at: HTTP://WWW.GABELLI.COM or e-mail us at: closedend@gabelli.com
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Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Utility Trust may, from time to time,
purchase its shares in the open market when the Utility Trust shares are trading
at a discount of 10% or more from the net asset value of the shares.
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THE GABELLI UTILITY TRUST
ONE CORPORATE CENTER
RYE, NY 10580-1434
(914) 921-5070
HTTP://WWW.GABELLI.COM
FIRST QUARTER REPORT
MARCH 31, 2001
GBFUF 03/01