Gabelli Utilities Fund (GAUAX) N-CSR Certified annual shareholder report (management investment company)

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            811-09397                    

                                     The Gabelli Utilities Fund                                    

(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:  December 31, 2017

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.

The Report to Shareholders is attached herewith.

The Gabelli Utilities Fund

Annual Report — December 31, 2017

To Our Shareholders,

For the year ended December 31, 2017, the net asset value (“NAV”) per Class AAA Share of The Gabelli Utilities Fund increased 8.9% compared with an increase of 12.1% for the Standard & Poor’s (“S&P”) 500 Utilities Index (SPU). Other classes of shares are available. See page 2 for performance information for all classes of shares.

Enclosed are the financial statements, including the schedule of investments, as of December 31, 2017.

Performance Discussion (Unaudited)

The objective of the Fund is to provide a high level of total return through a combination of capital appreciation and current income.

The investment strategy of the Fund is to invest at least 80% of its net assets in securities of domestic or foreign companies that are involved to a substantial extent in providing products, services, or equipment for the generation or distribution of electricity, gas, and water and the provision of infrastructure operations or telecommunications services, such as telephone, telegraph, satellite, cable, microwave, radiotelephone, mobile communication and cellular, paging, electronic mail, videotext, voice communications, data communications, and internet and that derive at least 50% of their revenue or earnings from, or devote at least 50% of their assets to, utilities that the Fund’s investment adviser, Gabelli Funds, LLC (the “Adviser”), believes have the potential to provide either capital appreciation or current income. The Fund may invest up to 40% of its total assets in securities of non-U.S. issuers.

In selecting investments, the Adviser will consider factors such as: (i) the market price of the issuer’s common stock, earnings expectations, earnings and price histories, balance sheet characteristics, perceived management skills, and the conditions affecting the industry in which the issuer practices; (ii) the level of interest rates, local and national government regulations, the price and availability of materials used in the particular utility, environmental protection or energy conservation regulations, the level of demand for services, and the risks associated with constructing and operating certain kinds of facilities such as nuclear power facilities; (iii) the potential for capital appreciation of the stock; (iv) the dividend income generated by the stock; (v) the prices of the stock relative to other comparable stocks; and (vi) the diversification of the portfolio of the Fund as to issuers. The Adviser will also consider changes in economic and political outlooks as well as individual corporate developments.

In 2017, most electric, gas, and water utility stocks returned high single digits with top performances coming from renewable developers. The utility sector also had seven announced mergers. Despite a more lenient Environmental Protection Agency, withdrawal from the Paris Agreement on climate change, an end to the Clean Power Plan, and federal and state efforts to subsidize older baseload coal and nuclear generation, the nation’s power sector is experiencing an accelerated “greening” including the rapid development of wind and solar generation and the retirement of older coal and nuclear units. In December, the Federal Reserve raised rates 0.25% for the fifth time in two years, ending the year in the 1.25%-1.50% range.

Among the better performing stocks for the fiscal year were Nextera Energy Inc. (4.4% net assets as of December 31, 2017), the world’s largest utility company with a market capitalization of more than $62 billion. NextEra’s electric utility subsidiary, Florida Power & Light Company, assembled and pre-positioned the largest restoration workforce in U.S. history in order to restore service to 4.4 million customers after Hurricane Irma. Other contributors to the Fund include PNM Resources Inc. (2.9%), which serves electricity to over 761,000 homes and businesses in Texas and New Mexico, and outperformed the industry in the second half of 2017, and Sony Corp (1.2%), whose stock advanced in 2017 due to its diversified product range and gaming and networking services.

Some of our weaker performers were Scana Corp. (0.8%), a South Carolina energy based holding company which lost $210 million associated with an abandoned nuclear project, Dish Network Corp. (0.9%) an American based direct-broadcast satellite service provider who cut 145,000 subscribers after Hurricane Maria took out power in Puerto Rico and the U.S. Virgin Islands, and Windstream Holdings Inc. (0.05%) a provider of advanced network communications and technology solutions which cut its very attractive dividend payout to zero in early August.

Thank you for your investment in the Gabelli Utilities Fund.

We appreciate your confidence and trust.

Comparative Results

Average Annual Returns through December 31, 2017 (a) (Unaudited)									Since
	1 Year		5 Year		10 Year		15 Year		Inception (8/31/99)
Class AAA (GABUX)		8.93%		8.87%		5.93%		9.41%		7.77%
S&P 500 Utilities Index		12.11		12.62		6.31		11.15		6.86
S&P 500 Index		21.83		15.79		8.50		9.92		5.94
Lipper Utility Fund Average		11.46		10.12		5.58		10.44		6.63
Class A (GAUAX)		8.79		8.85		5.93		9.43		7.78
With sales charge (b)		2.53		7.57		5.30		9.00		7.44
Class C (GAUCX)		8.04		8.07		5.14		8.61		7.12
With contingent deferred sales charge (c)		7.04		8.07		5.14		8.61		7.12
Class I (GAUIX)		9.11		9.13		6.18		9.58		7.91
Class T (GAUTX)		8.81		8.85		5.92		9.41		7.77
With sales charge (d)		6.09		8.30		5.65		9.22		7.76

In the current prospectuses dated April 28, 2017, as amended, the expense ratios for Class AAA, A, C, I, and T Shares are 1.38%, 1.38%, 2.13%, 1.13%, and 1.38%, respectively. See page 13 for the expense ratios for the year ended December 31, 2017. Class AAA and Class I Shares do not have a sales charge. The maximum sales charge for Class A, Class C, and Class T Shares is 5.75%, 1.00%, and 2.50%, respectively.

(a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, reinvestment of distributions, and are net of expenses. Investment returns and the principal value of an investment will fluctuate. When shares are redeemed, 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. Returns would have been lower had Gabelli Funds, LLC, the Adviser, not reimbursed certain expenses of the Fund for periods prior to December 31, 2002. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. The value of utility stocks generally changes as long term interest rates change. Funds investing in a single sector, such as utilities, may be subject to more volatility than funds that invest more broadly. The utilities industry can be significantly affected by government regulation, financing difficulties, supply or demand of services or fuel, and natural resources conservation. The Class AAA Share NAVs are used to calculate performance for the periods prior to the issuance of Class A Shares and Class C Shares on December 31, 2002, Class I Shares on January 11, 2008, and Class T Shares on July 5, 2017. The actual performance of the Class A Shares, Class C Shares, and Class T Shares would have been lower due to the additional fees and expenses associated with these classes of shares. The actual performance of the Class I Shares would have been higher due to lower expenses related to this class of shares. The S&P 500 Utilities Index is an unmanaged market capitalization weighted index of large capitalization stocks that may include facilities generation and transmission or distribution of electricity, gas, or water. The S&P 500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market. The Lipper Utility Fund Average reflects the average performance of mutual funds classified in this particular category. Dividends are considered reinvested. You cannot invest directly in an index.

(b) Performance results include the effect of the maximum 5.75% sales charge at the beginning of the period.

(c) Assuming payment of the 1% maximum contingent deferred sales charge imposed on redemptions made within one year of purchase.

(d) Performance results include the effect of the maximum 2.50% sales charge at the beginning of the period.

2

COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE GABELLI UTILITIES FUND

(CLASS AAA SHARES), S&P 500 UTILITIES INDEX, AND LIPPER UTILITY FUND AVERAGE (Unaudited)

* Past performance is not predictive of future results. The performance tables and graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

3

The Gabelli Utilities Fund

Disclosure of Fund Expenses (Unaudited)

For the Six Month Period from July 1, 2017 through December 31, 2017 Expense Table

We believe it is important for you to understand the impact of fees and expenses regarding your investment. All mutual funds have operating expenses. As a shareholder of a fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of a fund. When a fund’s expenses are expressed as a percentage of its average net assets, this figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

The Expense Table below illustrates your Fund’s costs in two ways:

Actual Fund Return: This section provides information about actual account values and actual expenses. You may use this section to help you to estimate the actual expenses that you paid over the period after any fee waivers and expense reimbursements. The “Ending Account Value” shown is derived from the Fund’s actual return during the past six months, and the “Expenses Paid During Period” shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period.

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your Fund under the heading “Expenses Paid During Period” to estimate the expenses you paid during this period.

Hypothetical 5% Return: This section provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio. It assumes a hypothetical annualized return of 5% before expenses during the period shown. In this case – because the hypothetical return used is not

the Fund’s actual return – the results do not apply to your investment and you cannot use the hypothetical account value and expense to estimate the actual ending account balance or expenses you paid for the period. This example is useful in making comparisons of the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads), redemption fees, or exchange fees, if any, which are described in the Prospectus. If these costs were applied to your account, your costs would be higher. Therefore, the 5% hypothetical return is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. The “Annualized Expense Ratio” represents the actual expenses for the last six months and may be different from the expense ratio in the Financial Highlights which is for the year ended December 31, 2017.

	Beginning Account Value 07/01/17		Ending Account Value 12/31/17		Annualized Expense Ratio			Expenses Paid During Period*
The Gabelli Utilities Fund
Actual Fund Return
Class AAA		$1,000.00		$1,034.20		1.36	%		$  6.97
Class A		$1,000.00		$1,032.60		1.36	%		$  6.97
Class C		$1,000.00		$1,029.20		2.11	%		$10.79
Class I		$1,000.00		$1,034.90		1.11	%		$  5.69
Class T**		$1,000.00		$1,033.10		1.37	%		$  6.87
Hypothetical 5% Return
Class AAA		$1,000.00		$1,018.35		1.36	%		$  6.92
Class A		$1,000.00		$1,018.35		1.36	%		$  6.92
Class C		$1,000.00		$1,014.57		2.11	%		$10.71
Class I		$1,000.00		$1,019.61		1.11	%		$  5.65
Class T		$1,000.00		$1,018.30		1.37	%		$  6.97

* Expenses are equal to the Fund’s annualized expense ratio for the last six months multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (184 days), then divided by 365.

** Class T Shares use a beginning account value date of 07/05/17, and Class T Share expenses are equal to the Funds’ annualized expense ratio for the period since inception multiplied by the number of days since inception (180 days), then divided by 365.

4

Summary of Portfolio Holdings (Unaudited)

The following table presents portfolio holdings as a percent of net assets as of December 31, 2017:

The Gabelli Utilities Fund

Energy and Utilities	69.0	%
Communications	19.4	%
Other	7.3	%
U.S. Government Obligations	4.3	%
Other Assets and Liabilities (Net)	0.0	%
	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-Q. 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-Q 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 the 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.

5

The Gabelli Utilities Fund

Schedule of Investments — December 31, 2017

Shares			Cost		Market Value
		COMMON STOCKS — 95.5%
		ENERGY AND UTILITIES — 68.8%
		Alternative Energy — 0.5%
	370,000	Algonquin Power & Utilities Corp.	$	2,068,158	$	4,138,584
	36,000	NextEra Energy Partners LP		831,843		1,551,960
	63,261	Ormat Technologies Inc., New York		1,599,251		4,046,174
	6,739	Ormat Technologies Inc., Tel Aviv		196,537		431,882
				4,695,789		10,168,600
		Electric Integrated — 42.5%
	304,000	ALLETE Inc.		10,925,762		22,605,440
	174,000	Alliant Energy Corp.		3,065,132		7,414,140
	550,000	Ameren Corp.		16,055,895		32,444,500
	700,000	American Electric Power Co. Inc.		28,398,312		51,499,000
	6,000	Atlantic Power Corp.†		36,882		14,272
	180,000	Avangrid Inc.		6,737,133		9,104,400
	290,000	Avista Corp.		7,089,367		14,932,100
	474,000	Black Hills Corp.		12,124,989		28,492,140
	50,000	Calpine Corp.†		769,990		756,500
	60,000	CMS Energy Corp.		402,675		2,838,000
	165,000	Dominion Energy Inc.		7,995,789		13,374,900
	4,000	DTE Energy Co.		151,595		437,840
	298,000	Duke Energy Corp.		16,331,147		25,064,780
	620,000	Edison International		22,591,991		39,208,800
	814,000	El Paso Electric Co.		18,108,780		45,054,900
	1,400	Entergy Corp.		96,612		113,946
	800,000	Eversource Energy		18,567,363		50,544,000
	355,000	Exelon Corp.		11,212,577		13,990,550
	380,000	FirstEnergy Corp.		11,038,618		11,635,600
	78,960	Fortis Inc.		2,450,129		2,895,463
	111,040	Fortis Inc., Toronto		3,472,604		4,073,233
	900,000	Great Plains Energy Inc.		19,787,986		29,016,000
	915,000	Hawaiian Electric Industries Inc.		21,821,324		33,077,250
	42,000	IDACORP Inc.		1,703,782		3,837,120
	311,000	MGE Energy Inc.		9,537,543		19,624,100
	630,500	NextEra Energy Inc.		40,112,079		98,477,795
	260,000	NiSource Inc.		2,319,251		6,674,200
	434,000	NorthWestern Corp.		11,726,586		25,909,800
	785,000	OGE Energy Corp.		13,193,046		25,834,350
	740,000	Otter Tail Corp.		17,917,539		32,893,000
	137,000	PG&E Corp.		5,207,891		6,141,710
	320,000	Pinnacle West Capital Corp.		13,092,833		27,257,600
	1,610,000	PNM Resources Inc.		20,018,302		65,124,500
	572,000	PPL Corp.		17,657,112		17,703,400
	190,000	Public Service Enterprise Group Inc.		5,490,935		9,785,000
	439,112	SCANA Corp.		17,341,443		17,467,875
	430,000	The Southern Co.		15,474,375		20,678,700

Shares			Cost		Market Value
	51,125	Unitil Corp.	$	1,483,755	$	2,332,323
	440,000	Vectren Corp.		12,163,963		28,608,800
	597,000	WEC Energy Group Inc.		16,121,112		39,658,710
	920,000	Westar Energy Inc.		22,248,661		48,576,000
	310,000	Xcel Energy Inc.		6,350,159		14,914,100
				488,393,019		950,086,837
		Electric Transmission and Distribution — 0.6%
	67,000	Consolidated Edison Inc.		2,745,224		5,691,650
	360,000	Red Electrica Corp. SA		4,191,840		8,081,686
	3,400	Uniper SE		38,231		106,066
				6,975,295		13,879,402
		Global Utilities — 2.0%
	11,352	AES Tiete Energia SA		155,996		43,634
	40,000	Chubu Electric Power Co. Inc.		671,887		497,182
	28,000	E.ON SE		524,216		304,411
	20,800	EDF SA		308,177		260,050
	5,000	EDP-Energias de Portugal SA, ADR		134,159		173,300
	200,000	Electric Power Development Co. Ltd.		4,991,198		5,387,175
	10,000	Eletropaulo Metropolitana Eletricidade de Sao Paulo SA		32,332		49,290
	185,000	Emera Inc.		4,545,769		6,914,320
	35,000	Enagas SA		916,226		1,002,412
	100,000	Endesa SA		2,186,478		2,142,326
	265,000	Enel SpA		1,382,306		1,631,131
	4,000	EuroSite Power Inc.†		1,670		660
	550,000	Hera SpA		1,195,166		1,920,354
	66,000	Hokkaido Electric Power Co. Inc.		1,054,241		434,631
	40,000	Hokuriku Electric Power Co.		661,406		321,988
	180,000	Huaneng Power International Inc., ADR		4,762,737		4,500,000
	45,000	Iberdrola SA, ADR		1,344,640		1,392,075
	289,300	Iberdrola SA, Aquis		2,262,874		2,242,367
	405,000	Korea Electric Power Corp.,, ADR†		5,392,840		7,172,550
	110,000	Kyushu Electric Power Co. Inc.		1,563,462		1,152,962
	32,000	Shikoku Electric Power Co. Inc.		578,871		348,755
	2,000	Snam SpA		8,967		9,791
	75,000	Statoil ASA		1,693,070		1,600,370
	28,000	The Chugoku Electric Power Co. Inc.		509,466		300,936
	305,000	The Kansai Electric Power Co. Inc.		4,106,512		3,735,523
	55,000	The Tokyo Electric Power Co. Holdings Inc.†		208,402		217,706

See accompanying notes to financial statements.

6

The Gabelli Utilities Fund

Schedule of Investments (Continued) — December 31, 2017

Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		ENERGY AND UTILITIES (Continued)
		Global Utilities (Continued)
	170,000	Tohoku Electric Power Co. Inc.	$	2,793,879	$	2,174,129
				43,986,947		45,930,028
		Merchant Energy — 1.6%
	40,000	GenOn Energy Inc.-Old, Escrow†(a)		0		0
	15,000	GenOn Energy Inc., Escrow†(a)		0		0
	120,000	NRG Energy Inc.		2,704,601		3,417,600
	3,022,700	The AES Corp.		31,141,169		32,735,841
				33,845,770		36,153,441
		Natural Gas Integrated — 9.1%
	14,500	Apache Corp.		761,285		612,190
	25,000	Atlas Energy Group LLC†		58,278		1,215
	65,000	Devon Energy Corp.		2,877,051		2,691,000
	6,000	Dominion Energy Midstream Partners LP		175,466		182,700
	20,000	Energen Corp.†		239,277		1,151,400
	610,000	Energy Transfer Equity LP		375,317		10,528,600
	150,000	Hess Corp.		8,794,064		7,120,500
	300,000	Kinder Morgan Inc.		6,840,332		5,421,000
	1,927,000	National Fuel Gas Co.		93,303,501		105,811,570
	436,000	Northwest Natural Gas Co.		19,423,271		26,007,400
	520,000	ONEOK Inc.		6,975,466		27,794,000
	362,000	UGI Corp.		7,671,655		16,995,900
				147,494,963		204,317,475
		Natural Gas Utilities — 6.0%
	80,000	Atmos Energy Corp.		2,188,623		6,871,200
	94,000	CenterPoint Energy Inc.		1,812,563		2,665,840
	43,500	Chesapeake Utilities Corp.		786,141		3,416,925
	6,250	CONSOL Energy Inc.†		113,792		246,937
	388,800	Corning Natural Gas Holding Corp.(b)		3,685,398		7,581,600
	100,000	Gulf Coast Ultra Deep Royalty Trust		8,000		3,107
	5,000	Italgas SpA		21,959		30,536
	110,000	National Grid plc		1,583,477		1,299,665
	44,500	National Grid plc, ADR		2,931,043		2,617,045
	14,000	New Jersey Resources Corp.		328,068		562,800
	143,000	ONE Gas Inc.		1,132,190		10,476,180
	66,000	RGC Resources Inc.		701,712		1,787,280
	140,000	South Jersey Industries Inc.		1,982,945		4,372,200
	929,000	Southwest Gas Holdings Inc.		34,252,040		74,765,920
	119,500	Spire Inc.		3,777,981		8,980,425
	95,000	WGL Holdings Inc.		3,813,901		8,154,800
				59,119,833		133,832,460

Shares			Cost		Market Value
		Natural Resources — 1.9%
	14,000	Alliance Holdings GP LP	$	151,361	$	375,060
	75,300	Anadarko Petroleum Corp.		4,070,538		4,039,092
	168,000	BP plc, ADR		6,752,185		7,061,040
	14,058	California Resources Corp.†		143,825		273,288
	10,000	Callon Petroleum Co.†		124,400		121,500
	500,000	Cameco Corp.		6,595,868		4,615,000
	50,000	CNX Resources Corp.†		597,406		731,500
	8,000	Compania de Minas Buenaventura SAA, ADR		87,836		112,640
	710,000	Mueller Industries Inc.		15,410,694		25,155,300
	50,006	Tullow Oil plc†		247,281		139,487
	75,000	Ultra Petroleum Corp.†		657,533		679,500
				34,838,927		43,303,407
		Services — 1.4%
	22,000	Baker Hughes, a GE Company		980,838		696,080
	570,000	Enbridge Inc.		12,541,788		22,292,700
	20,000	Halliburton Co.		660,081		977,400
	34,000	MDU Resources Group Inc.		738,008		913,920
	50,000	Patterson-UTI Energy Inc.		737,566		1,150,500
	20,000	Rowan Companies plc, Cl. A† .		251,815		313,200
	1,000,000	Weatherford International plc†.		7,912,956		4,170,000
				23,823,052		30,513,800
		Water — 2.5%
	8,000	American States Water Co.		110,252		463,280
	115,000	American Water Works Co. Inc.		2,627,509		10,521,350
	528,000	Aqua America Inc.		9,146,026		20,713,440
	5,000	California Water Service Group		90,622		226,750
	10,000	Connecticut Water Service Inc.		251,353		574,100
	16,000	Consolidated Water Co. Ltd.		193,044		201,600
	20,000	Middlesex Water Co.		356,954		798,200
	276,700	Severn Trent plc		7,394,052		8,076,923
	145,000	SJW Group		3,336,319		9,255,350
	87,000	The York Water Co.		1,205,281		2,949,300
	52,000	United Utilities Group plc, ADR		1,399,310		1,166,360
				26,110,722		54,946,653
		Diversified Industrial — 0.6%
	30,000	AZZ Inc.		1,212,304		1,533,000
	62,000	General Electric Co.		1,212,502		1,081,900
	100,000	ITT Inc.		2,056,300		5,337,000
	375,975	Mueller Water Products Inc., Cl. A		2,154,278		4,710,967
	20,000	Park-Ohio Holdings Corp.		381,857		919,000
				7,017,241		13,581,867

See accompanying notes to financial statements.

7

The Gabelli Utilities Fund

Schedule of Investments (Continued) — December 31, 2017

Shares		Cost		Market Value
	COMMON STOCKS (Continued)
	ENERGY AND UTILITIES (Continued)
	Environmental Services — 0.1%
26,000	Covanta Holding Corp.	$	414,429	$	439,400
80,000	Veolia Environnement SA		1,097,512		2,042,139
			1,511,941		2,481,539
	TOTAL ENERGY AND UTILITIES		877,813,499		1,539,195,509
	COMMUNICATIONS — 19.4%
	Cable and Satellite — 5.7%
42,000	Charter Communications Inc., Cl. A†		4,216,493		14,110,320
25,000	Cogeco Communications Inc.		684,204		1,719,968
70,000	Cogeco Inc.		1,589,491		5,040,334
40,000	Comcast Corp., Cl. A		402,189		1,602,000
430,000	DISH Network Corp., Cl. A†		12,903,460		20,532,500
308,000	EchoStar Corp., Cl. A†		10,215,374		18,449,200
344,366	Liberty Global plc, Cl. A†		5,402,825		12,342,077
600,000	Liberty Global plc, Cl. C†		10,353,788		20,304,000
80,000	Liberty Global plc LiLAC, Cl. A†		1,566,814		1,612,000
150,000	Liberty Global plc LiLAC, Cl. C†		3,323,789		2,983,500
90,000	Rogers Communications Inc., Cl. B		2,426,676		4,583,700
12,000	Shaw Communications Inc., Cl. B		148,195		273,960
1,650,000	Sky plc†		18,135,231		22,544,757
50,000	Tokyo Broadcasting System Holdings Inc.		683,652		1,248,724
			72,052,181		127,347,040
	Computer Services Software and Systems — 0.0%
102,500	Internap Corp.†		2,116,716		1,610,275
	Telecommunications — 10.0%
35,000	AT&T Inc.		1,197,700		1,360,800
560,000	BCE Inc.		15,759,354		26,885,600
886,442	CenturyLink Inc.		18,600,909		14,785,853
790,000	Cincinnati Bell Inc.†		13,106,597		16,471,500
35,000	Deutsche Telekom AG		428,748		621,310
515,000	Deutsche Telekom AG, ADR		6,311,945		9,095,415
1,750,000	Global Telecom Holding SAE, GDR†		1,357,829		730,315
28,000	Harris Corp.		2,161,989		3,966,200
1,440,000	Koninklijke KPN NV		4,192,069		5,024,381
18,000	Koninklijke KPN NV, ADR		80,480		63,000
134,470	Loral Space & Communications Inc.†		5,551,093		5,923,403
35,200	NextGenTel Holding ASA		257,885		76,311
290,000	Nippon Telegraph & Telephone Corp.		7,159,565		13,643,577

Shares		Cost		Market Value
2,200	Orange Belgium SA	$	33,392	$	46,194
330,000	Orascom Telecom Media and Technology Holding SAE, GDR		534,301		53,130
60,000	Pharol SGPS SA†		28,418		17,998
220,000	Pharol SGPS SA, ADR†		182,432		54,450
68,000	PLDT Inc., ADR		3,226,928		2,045,440
150,000	Proximus SA		4,775,028		4,922,370
2,000	PT Indosat Tbk		1,061		708
2,300,000	Singapore Telecommunications Ltd.		5,695,042		6,139,295
800,000	Sprint Corp.†		4,794,592		4,712,000
121,000	Swisscom AG, ADR		4,440,719		6,452,930
10,000	Tele2 AB, Cl. B		158,627		122,880
170,000	Telecom Italia SpA, ADR†		2,206,728		1,467,100
235,000	Telefonica Brasil SA, ADR		4,137,121		3,485,050
53,000	Telefonica Deutschland Holding AG		280,618		266,196
525,000	Telefonica SA, ADR		8,961,856		5,082,000
1,000,000	Telekom Austria AG		7,767,364		9,273,613
340,000	Telenet Group Holding NV†		15,333,232		23,697,687
546,000	Telephone & Data Systems Inc.		14,762,101		15,178,800
60,000	Telesites SAB de CV†		45,551		45,528
700,000	VEON Ltd., ADR		3,208,119		2,688,000
715,000	Verizon Communications Inc.		22,935,173		37,844,950
580,000	Windstream Holdings Inc.		2,749,496		1,073,000
			182,424,062		223,316,984
	Wireless Communications — 3.7%
65,000	America Movil SAB de CV, Cl. L, ADR		1,049,728		1,114,750
27,000	ATN International Inc.		883,543		1,492,020
69,000	China Mobile Ltd., ADR		2,765,327		3,487,260
53,000	China Unicom Hong Kong Ltd., ADR†		665,499		717,090
200	Hutchison Telecommunications Hong Kong Holdings Ltd.		19		80
86,000	Millicom International Cellular SA		6,232,178		5,797,260
252,000	Millicom International Cellular SA, SDR		17,797,413		17,018,932
6,500	Mobile TeleSystems PJSC, ADR		86,498		66,235
465,000	NTT DoCoMo Inc.		7,286,947		10,981,717
135,000	SK Telecom Co. Ltd., ADR		2,383,798		3,767,850
400	SmarTone Telecommunications Holdings Ltd.		207		482
35,000	Tim Participacoes SA, ADR		684,957		675,850
400,000	Turkcell Iletisim Hizmetleri A/S, ADR		5,592,425		4,080,000

See accompanying notes to financial statements.

8

The Gabelli Utilities Fund

Schedule of Investments (Continued) — December 31, 2017

Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		COMMUNICATIONS (Continued)
		Wireless Communications (Continued)
	367,000	United States Cellular Corp.†	$	16,064,751	$	13,810,210
	600,000	Vodafone Group plc, ADR		22,651,401		19,140,000
				84,144,691		82,149,736
		TOTAL COMMUNICATIONS		340,737,650		434,424,035
		OTHER — 7.3%
		Aerospace — 1.0%
	2,000,000	Rolls-Royce Holdings plc		16,373,302		22,871,493
	92,000,000	Rolls-Royce Holdings plc, Cl. C†(a)		121,904		124,214
				16,495,206		22,995,707
		Building and Construction — 0.4%
	12,000	Acciona SA		1,140,701		979,651
	170,000	Johnson Controls International plc		4,577,647		6,478,700
				5,718,348		7,458,351
		Business Services — 0.4%
	1,420,000	Clear Channel Outdoor Holdings Inc., Cl. A		5,708,815		6,532,000
	40,000	Macquarie Infrastructure Corp.		737,100		2,568,000
	17,500	Vectrus Inc.†		316,783		539,875
				6,762,698		9,639,875
		Consumer Products — 0.0%
	10,000	Essity AB, Cl. A†		130,732		282,454
		Diversified Industrial — 0.3%
	1,000	Alstom SA		31,457		41,521
	40,000	Bouygues SA		1,406,190		2,078,614
	4,000	Donaldson Co. Inc.		133,040		195,800
	10,000	Raven Industries Inc.		219,638		343,500
	10,000	Svenska Cellulosa AB, Cl. A		34,751		115,810
	105,600	Twin Disc Inc.†		1,959,602		2,805,792
				3,784,678		5,581,037
		Electronics — 1.3%
	90,000	Corning Inc.		1,005,890		2,879,100
	595,000	Sony Corp., ADR		10,687,692		26,745,250
				11,693,582		29,624,350
		Entertainment — 0.5%
	633,332	Grupo Televisa SAB, ADR		15,594,360		11,824,308
		Financial Services — 0.4%
	168,000	Kinnevik AB, Cl. A		3,583,754		5,859,346
	80,000	Kinnevik AB, Cl. B		2,519,622		2,704,343
				6,103,376		8,563,689

Shares			Cost		Market Value
		Health Care — 0.0%
	12,000	Tsumura & Co.	$	261,956	$	398,846
		Machinery — 1.7%
	92,500	Astec Industries Inc.		3,264,589		5,411,250
	34,000	Flowserve Corp.		1,366,581		1,432,420
	79,000	The Gorman-Rupp Co.		1,815,066		2,465,590
	428,000	Xylem Inc.		11,593,897		29,189,600
				18,040,133		38,498,860
		Metals and Mining — 0.4%
	215,000	Freeport-McMoRan Inc.†		3,045,141		4,076,400
	48,000	Haynes International Inc.		2,243,063		1,538,400
	17,000	Vulcan Materials Co.		797,880		2,182,290
				6,086,084		7,797,090
		Transportation — 0.9%
	311,000	GATX Corp.		8,998,435		19,331,760
		TOTAL OTHER		99,669,588		161,996,327
		TOTAL COMMON STOCKS		1,318,220,737		2,135,615,871
		CONVERTIBLE PREFERRED STOCKS — 0.1%
		ENERGY AND UTILITIES — 0.1%
		Natural Gas Utilities — 0.1%
	54,000	Corning Natural Gas Holding Corp., 4.800%, Ser. B (b)		1,120,500		1,080,000
		COMMUNICATIONS — 0.0%
		Telecommunications — 0.0%
	21,000	Cincinnati Bell Inc., 6.750%, Ser. B		695,010		1,071,000
		TOTAL CONVERTIBLE PREFERRED STOCKS		1,815,510		2,151,000
		WARRANTS — 0.0%
		COMMUNICATIONS — 0.0%
		Telecommunications — 0.0%
	80,000	Bharti Airtel Ltd., expire 11/30/20†(c)		438,064		664,000
Principal Amount
		CORPORATE BONDS — 0.1%
		Energy and Utilities — 0.1%
$	1,500,000	Mueller Industries Inc., 6.000%, 03/01/27		1,500,000		1,541,250

See accompanying notes to financial statements.

9

The Gabelli Utilities Fund

Schedule of Investments (Continued) — December 31, 2017

Principal   Amount			Cost		Market Value
		U.S. GOVERNMENT OBLIGATIONS — 4.3%
$	97,520,000	U.S. Treasury Bills, 1.065% to 1.542%††, 01/25/18 to 06/28/18	$	97,235,208	$	97,221,304
		TOTAL INVESTMENTS — 100.0%	$	1,419,209,519		2,237,193,425
		Other Assets and Liabilities (Net) — 0.0%				(53,448	)
		NET ASSETS — 100.0%			$	2,237,139,977

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

(b) Security considered an affiliated holding because the Fund owns at least 5% of its outstanding shares.

(c) 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. At December 31, 2017, the market value of the Rule 144A security amounted to $664,000 or 0.03% of net assets.

† Non-income producing security.

†† Represents annualized yield at date of purchase.

ADR American Depositary Receipt

GDR Global Depositary Receipt

SDR Swedish Depositary Receipt

See accompanying notes to financial statements.

10

The Gabelli Utilities Fund

Statement of Assets and Liabilities

December 31, 2017

Assets:
Investments, at value (cost $1,414,403,621)	$	2,228,531,825
Investments in affiliates, at value (cost $4,805,898)		8,661,600
Cash		2,319
Receivable for Fund shares sold		3,101,568
Dividends receivable		4,193,501
Prepaid expenses		80,243
Total Assets		2,244,571,056
Liabilities:
Payable for Fund shares redeemed		4,093,791
Payable for investment advisory fees		1,930,604
Payable for distribution fees		928,108
Payable for accounting fees		3,750
Other accrued expenses		474,826
Total Liabilities		7,431,079
Net Assets
(applicable to 273,608,814 shares outstanding)	$	2,237,139,977
Net Assets Consist of:
Paid-in capital	$	1,434,283,780
Distribution in excess of net investment income		(1,019,191	)
Distributions in excess of net realized gains on investments and foreign currency transactions		(14,116,420	)
Net unrealized appreciation on investments		817,983,906
Net unrealized appreciation on foreign currency translations		7,902
Net Assets	$	2,237,139,977
Shares of Beneficial Interest, each at $0.001 par value; unlimited number of shares authorized:
Class AAA:
Net Asset Value, offering, and redemption price per share ($350,708,716 ÷ 38,007,368 shares outstanding)		$9.23
Class A:
Net Asset Value and redemption price per share ($837,684,252 ÷ 89,368,197 shares outstanding)		$9.37
Maximum offering price per share (NAV ÷ 0.9425, based on maximum sales charge of 5.75% of the offering price)		$9.94
Class C:
Net Asset Value and offering price per share ($776,369,587 ÷ 118,008,211 shares outstanding)		$6.58	(a)
Class I:
Net Asset Value, offering, and redemption price per share ($272,376,389 ÷ 28,224,926 shares outstanding)		$9.65
Class T:
Net Asset Value and redemption price per share ($1,033 ÷ 112 shares outstanding)		$9.22
Maximum offering price per share (NAV ÷ 0.975, based on maximum sales charge of 2.50% of the offering price)		$9.46

(a) Redemption price varies based on the length of time held.

Statement of Operations

For the Year Ended December 31, 2017

Investment Income:
Dividends - Unaffiliated (net of foreign withholding taxes of $1,408,709)	$	64,226,189
Dividends - Affiliated		263,250
Interest		790,293
Other income*		235
Total Income		65,279,967
Expenses:
Investment advisory fees		22,195,032
Distribution fees - Class AAA		909,780
Distribution fees - Class A		2,054,701
Distribution fees - Class C		7,963,130
Distribution fees - Class T		1
Shareholder services fees		1,630,497
Shareholder communications expenses		304,911
Custodian fees		225,255
Trustees’ fees		137,000
Registration expenses		126,820
Accounting fees		45,000
Legal and audit fees		28,778
Interest expense		210
Miscellaneous expenses		131,525
Total Expenses		35,752,640
Less:
Expenses paid indirectly by broker
(See Note 6)		(15,703	)
Net Expenses		35,736,937
Net Investment Income		29,543,030
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency:
Net realized gain on investments		18,926,765
Net realized loss on foreign currency transactions		(34,159	)
Net realized gain on investments and foreign currency transactions		18,892,606
Net change in unrealized appreciation:
on investments		131,864,424
on foreign currency translations		32,758
Net change in unrealized appreciation on investments and foreign currency translations		131,897,182
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency		150,789,788
Net Increase in Net Assets Resulting from Operations	$	180,332,818

* The Fund received a reimbursement of custody expenses paid in prior years.

See accompanying notes to financial statements.

11

The Gabelli Utilities Fund

Statement of Changes in Net Assets

	Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income		$            29,543,030			$            29,079,713
Net realized gain on investments and foreign currency transactions		18,892,606			33,246,905
Net change in unrealized appreciation on investments and foreign currency translations		131,897,182			252,754,372
Net Increase in Net Assets Resulting from Operations		180,332,818			315,080,990
Distributions to Shareholders:
Net investment income
Class AAA		(5,020,519	)		(5,471,301	)
Class A		(11,262,972	)		(11,112,907	)
Class C		(9,795,159	)		(9,783,665	)
Class I		(3,875,959	)		(2,542,331	)
Class T		(17	)		—
		(29,954,626	)		(28,910,204	)
Net realized gain
Class AAA		(2,839,155	)		(5,335,408	)
Class A		(6,375,891	)		(10,854,504	)
Class C		(8,501,854	)		(14,643,900	)
Class I		(1,855,631	)		(2,115,401	)
Class T		(8	)		—
		(19,572,539	)		(32,949,213	)
Return of capital
Class AAA		(24,415,223	)		(24,739,141	)
Class A		(54,425,845	)		(50,581,784	)
Class C		(78,809,061	)		(73,313,008	)
Class I		(14,720,187	)		(9,476,054	)
Class T		(21	)		—
		(172,370,337	)		(158,109,987	)
Total Distributions to Shareholders		(221,897,502	)		(219,969,404	)
Shares of Beneficial Interest Transactions:
Class AAA		(12,582,880	)		(30,345,592	)
Class A		32,227,780			49,728,141
Class C		35,021,113			23,406,890
Class I		114,337,169			9,333,224
Class T		1,046			—
Net Increase in Net Assets from Shares of Beneficial Interest Transactions		169,004,228			52,122,663
Redemption Fees		13,123			7,011
Net Increase in Net Assets		127,452,667			147,241,260
Net Assets:
Beginning of year		2,109,687,310			1,962,446,050
End of year (including undistributed net investment income of $0 and $0, respectively)	$	2,237,139,977		$	2,109,687,310

See accompanying notes to financial statements.

12

The Gabelli Utilities Fund

Financial Highlights

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

			Income (Loss) from Investment Operations								Distributions																			Ratios to Average Net Assets/ Supplemental Data
Year Ended December 31	Net Asset Value, Beginning of Period		Net Investment Income(a)		Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Net Investment Income			Net Realized Gain on Investments			Return of Capital			Total Distributions			Redemption Fees(a)(b)		Net Asset Value, End of Period		Total Return†			Net Assets End of Period (in 000’s)		Net Investment Income			Operating Expenses	Portfolio Turnover Rate
Class AAA
2017	$	9.26	$	0.15	$	0.66		$	0.81		$	(0.13	)	$	(0.07	)	$	(0.64	)	$	(0.84	)	$	0.00	$	9.23		8.9	%	$	350,709		1.58%		1.37%(c)		2%
2016		8.70		0.15		1.28			1.43			(0.14	)		(0.13	)		(0.60	)		(0.87	)		0.00		9.26		17.0			364,411		1.65		1.38(c)		4
2015††		10.50		0.11		(1.07	)		(0.96	)		(0.09	)		(0.70	)		(0.05	)		(0.84	)		0.00		8.70		(8.3	)		371,419		1.42		1.39(c)		8
2014††		11.24		0.18		0.76			0.94			(0.14	)		(0.10	)		(1.44	)		(1.68	)		0.00		10.50		8.9			820,328		1.64		1.36		9
2013††		10.86		0.18		1.88			2.06			(0.14	)		(0.20	)		(1.34	)		(1.68	)		0.00		11.24		20.2			738,742		1.60		1.37		11
Class A
2017	$	9.40	$	0.15	$	0.66		$	0.81		$	(0.13	)	$	(0.07	)	$	(0.64	)	$	(0.84	)	$	0.00	$	9.37		8.8	%	$	837,684		1.57%		1.37%(c)		2%
2016		8.82		0.15		1.30			1.45			(0.13	)		(0.13	)		(0.61	)		(0.87	)		0.00		9.40		17.0			808,349		1.64		1.38(c)		4
2015††		10.64		0.12		(1.10	)		(0.98	)		(0.09	)		(0.70	)		(0.05	)		(0.84	)		0.00		8.82		(8.3	)		713,208		1.45		1.39(c)		8
2014††		11.36		0.18		0.78			0.96			(0.14	)		(0.10	)		(1.44	)		(1.68	)		0.00		10.64		9.0			1,231,349		1.64		1.36		9
2013††		10.96		0.18		1.90			2.08			(0.14	)		(0.20	)		(1.34	)		(1.68	)		0.00		11.36		20.2			1,109,532		1.60		1.37		11
Class C
2017	$	6.88	$	0.06	$	0.48		$	0.54		$	(0.09	)	$	(0.07	)	$	(0.68	)	$	(0.84	)	$	0.00	$	6.58		8.0	%	$	776,370		0.83%		2.12%(c)		2%
2016		6.71		0.06		0.98			1.04			(0.09	)		(0.13	)		(0.65	)		(0.87	)		0.00		6.88		16.2			776,780		0.89		2.13(c)		4
2015††		8.40		0.05		(0.90	)		(0.85	)		(0.09	)		(0.70	)		(0.05	)		(0.84	)		0.00		6.71		(9.1	)		736,494		0.73		2.14(c)		8
2014††		9.38		0.08		0.62			0.70			(0.14	)		(0.10	)		(1.44	)		(1.68	)		0.00		8.40		8.1			1,111,695		0.89		2.11		9
2013††		9.36		0.08		1.62			1.70			(0.14	)		(0.20	)		(1.34	)		(1.68	)		0.00		9.38		19.5			1,037,073		0.85		2.12		11
Class I
2017	$	9.63	$	0.18	$	0.68		$	0.86		$	(0.15	)	$	(0.07	)	$	(0.62	)	$	(0.84	)	$	0.00	$	9.65		9.1	%	$	272,376		1.81%		1.12%(c)		2%
2016		8.99		0.18		1.33			1.51			(0.16	)		(0.13	)		(0.58	)		(0.87	)		0.00		9.63		17.4			160,147		1.89		1.13(c)		4
2015††		10.80		0.14		(1.11	)		(0.97	)		(0.09	)		(0.70	)		(0.05	)		(0.84	)		0.00		8.99		(8.1	)		141,325		1.70		1.14(c)		8
2014††		11.48		0.20		0.80			1.00			(0.14	)		(0.10	)		(1.44	)		(1.68	)		0.00		10.80		9.3			255,651		1.86		1.11		9
2013††		11.04		0.22		1.90			2.12			(0.14	)		(0.20	)		(1.34	)		(1.68	)		0.00		11.48		20.4			179,913		1.85		1.12		11
Class T(d)
2017	$	9.33	$	0.05	$	0.26		$	0.31		$	(0.16	)	$	(0.07	)	$	(0.19	)	$	(0.42	)	$	0.00	$	9.22		3.3	%	$	1		0.98%	(e)	1.37%(e)		2%

  † Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including reinvestment of distributions and does not reflect applicable sales charges. Total return for a period of less than one year is not annualized.

†† All per share amounts and net asset values have been adjusted as a result of the 1 for 2 reverse stock split on March 6, 2015.

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

(b) Amount represents less than $0.005 per share.

(c) The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For the years ended December 31, 2017, 2016, and 2015, there was no impact on the expense ratios.

(d) Class T Shares were initially offered on July 5, 2017.

(e) Annualized.

See accompanying notes to financial statements.

13

The Gabelli Utilities Fund

Notes to Financial Statements

1. Organization. The Gabelli Utilities Fund was organized on May 18, 1999 as a Delaware statutory trust. On July 5, 2017, the Fund began to offer for sale Class T Shares. The Fund is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund commenced operations on August 31, 1999. The Fund’s primary objective is to provide a high level of total return through a combination of capital appreciation and current income.

The Fund invests a high percentage of its assets in the utilities sector. As a result, the Fund may be more susceptible to economic, political, and regulatory developments, positive or negative, and may experience increased volatility to the Fund’s NAV and a magnified effect in its total return.

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.

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 security is valued using the closing bid price, unless the Board determines such amount does not reflect the securities’ fair vale, 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 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.

14

The Gabelli Utilities Fund

Notes to Financial Statements (Continued)

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 December 31, 2017 is as follows:

	Valuation Inputs
	Level  1 Quoted Prices		Level 2 Other Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total Market Value at 12/31/17
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
ENERGY AND UTILITIES
Global Utilities		$        45,929,368		$                660		—	$	45,930,028
Merchant Energy		36,153,441		—	$	0		36,153,441
Other Industries (a)		1,457,112,040		—		—		1,457,112,040
COMMUNICATIONS (a)		434,424,035		—		—		434,424,035
OTHER		—		—		—		—
Aerospace		22,871,493		—		124,214		22,995,707
Other Industries (a)		139,000,620		—		—		139,000,620
Total Common Stocks		2,135,490,997		660		124,214		2,135,615,871
Convertible Preferred Stocks (a)		1,071,000		1,080,000		—		2,151,000
Warrants (a)				664,000		—		664,000
Corporate Bonds(a)		—		1,541,250		—		1,541,250
U.S. Government Obligations		—		97,221,304		—		97,221,304
TOTAL INVESTMENTS IN SECURITIES – ASSETS	$	2,136,561,997	$	100,507,214	$	124,214	$	2,237,193,425

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

The Fund did not have material transfers among Level 1, Level 2, and Level 3 during the year ended December 31, 2017. The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

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

15

The Gabelli Utilities Fund

Notes to Financial Statements (Continued)

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. Among the factors to be considered to fair value a security are 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 include back testing the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

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.

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.

16

The Gabelli Utilities Fund

Notes to Financial Statements (Continued)

Restricted Securities. The Fund may invest up to 15% of its net assets 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 does 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 securities the Fund held at December 31, 2017, 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. 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.

Determination of Net Asset Value and Calculation of Expenses. Certain administrative expenses are common to, and allocated among, various affiliated funds. Such allocations are made on the basis of each fund’s average net assets or other criteria directly affecting the expenses as determined by the Adviser pursuant to procedures established by the Board.

In calculating the NAV per share of each class, investment income, realized and unrealized gains and losses, redemption fees, and expenses other than class specific expenses are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day. Distribution expenses are borne solely by the class incurring the expense.

Distributions to Shareholders. Distributions to 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 and foreign currency transactions held by the Fund, timing differences, and differing characterizations of distributions made by the Fund. Distributions made in excess of current earnings and profits on a tax basis are treated as a non-taxable return of capital. 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. Permanent differences were primarily due to foreign currency gains and losses and prior period adjustments. These reclassifications have no impact on the NAV of the Fund. For the year ended December 31, 2017, reclassifications were made to decrease distributions in excess of net investment income by $379,617 and decrease distributions in excess of net realized gains on investments and foreign currency transactions by $66,469, with an offsetting adjustment to paid-in capital.

17

The Gabelli Utilities Fund

Notes to Financial Statements (Continued)

The tax character of distributions paid during the years ended December 31, 2017 and 2016 was as follows:

	Year Ended December 31, 2017		Year Ended December 31, 2016
Distributions paid from:
Ordinary income (inclusive of short term capital gains)		$  30,251,265		$  33,987,237
Long term capital gains		19,275,900		27,872,180
Return of capital		172,370,337		158,109,987
Total distributions paid		$221,897,502		$219,969,404

Since January 2000, the Fund has had a fixed distribution policy. Under the policy, the Fund declares and pays monthly 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 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. The Fund’s current distribution policy may restrict the Fund’s ability to pass through to shareholders all of its net realized long term capital gains as a Capital Gain Dividend, and may cause such gains to be treated as ordinary income. 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 continues to evaluate the distribution policy in light of ongoing economic and market conditions and may change the amount of the monthly distributions in the future.

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.

As of December 31, 2017, the components of accumulated earnings/losses on a tax basis were as follows:

Net unrealized appreciation on investments and foreign currency translations $ 802,856,197

At December 31, 2017, the temporary differences between book basis and tax basis net unrealized appreciation on investments were primarily due to deferral of losses from wash sales for tax purposes, tax basis adjustments on investments in partnerships, and mark-to-market adjustments on investments in passive foreign investment companies.

The Fund is permitted to carry capital losses forward for an unlimited period. Capital losses that are carried forward will retain their character as either short term or long term capital losses.

The following summarizes the tax cost of investments and the related net unrealized appreciation at December 31, 2017:

	Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation
Investments	$	1,434,345,128	$	883,622,626	$	(80,774,329	)	$	802,848,297

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

18

The Gabelli Utilities Fund

Notes to Financial Statements (Continued)

tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. For the year ended December 31, 2017, the Fund did not incur any income tax, interest, or penalties. As of December 31, 2017, the Adviser has reviewed all open tax years and concluded that there was no impact to the Fund’s net assets or results of operations. The Fund’s federal and state tax returns for the prior three fiscal years remain open, 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 daily and paid monthly, at the annual rate of 1.00% of the value of its average daily net assets. In accordance with the Advisory Agreement, the Adviser provides a continuous investment program for the Fund’s portfolio, oversees the administration of all aspects of the Fund’s business and affairs, and pays the compensation of all Officers and Trustees of the Fund who are affiliated persons of the Adviser.

The Fund pays each Trustee who is not considered an affiliated person an annual retainer of $18,000 plus $2,000 for each Board meeting attended and they are reimbursed for any out of pocket expenses incurred in attending meetings. All Board committee members receive $500 per meeting attended and the Chairman of the Audit Committee and the Lead Trustee each receives an annual fee of $2,000. A Trustee may receive a single meeting fee, allocated among the participating funds, for participation in certain meetings held on behalf of multiple funds. Trustees who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund.

4. Distribution Plan. The Fund’s Board has adopted a distribution plan (the “Plan”) for each class of shares, except for Class I Shares, pursuant to Rule 12b-1 under the 1940 Act. Under the Class AAA, Class A, Class C, and Class T Share Plans, payments are authorized to G.distributors, LLC (the “Distributor”), an affiliate of the Adviser, at annual rates of 0.25%, 0.25%, 1.00%, and 0.25%, respectively, of the average daily net assets of those classes, the annual limitations under each Plan. Such payments are accrued daily and paid monthly.

5. Portfolio Securities. Purchases and sales of securities during the year ended December 31, 2017, other than short term securities and U.S. Government obligations, aggregated $43,366,598 and $113,042,742, respectively.

6. Transactions with Affiliates and Other Arrangements. During the year ended December 31, 2017, the Fund paid $85,154 in brokerage commissions on security trades to G.research, LLC, an affiliate of the Adviser. Additionally the Distributor retained a total of $1,336,561 from investors representing commissions (sales charges and underwriting fees) on sales and redemptions of Fund shares.

During the year ended December 31, 2017, 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 $15,703.

The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement. During the year ended December 31, 2017, the Fund paid or accrued $45,000 to the Adviser in connection with the cost of computing the Fund’s NAV.

19

The Gabelli Utilities Fund

Notes to Financial Statements (Continued)

7. Line of Credit. The Fund participates in an unsecured line of credit, which expires March 8, 2018 and may be renewed annually, of up to $75,000,000 under which it may borrow up to 10% of its net assets from the custodian for temporary borrowing purposes. Borrowings under this arrangement bear interest at a floating rate equal to the higher of the overnight Federal Funds rate plus 125 basis points or the 30-day LIBOR plus 125 basis points in effect on that day. This amount, if any, would be included in “Interest expense” in the Statement of Operations. During the year ended December 31, 2017, there were no borrowings outstanding under the line of credit.

8. Shares of Beneficial Interest. The Fund offers five classes of shares – Class AAA Shares, Class A Shares, Class C Shares, Class I Shares and Class T Shares. Class AAA Shares and Class I Shares are offered without a sales charge. Class A Shares and Class T Shares are subject to a maximum front-end sales charge of 5.75% and 2.50%, respectively. Class C Shares are subject to a 1.00% contingent deferred sales charge for one year after purchase.

The Fund imposes a redemption fee of 2.00% on all classes of shares that are redeemed or exchanged on or before the seventh day after the date of a purchase. The redemption fee is deducted from the proceeds otherwise payable to the redeeming shareholders and is retained by the Fund as an increase in paid-in capital. The redemption fees retained by the Fund during the years ended December 31, 2017 and 2016, if any, can be found in the Statement of Changes in Net Assets under Redemption Fees.

20

The Gabelli Utilities Fund

Notes to Financial Statements (Continued)

Transactions in shares of beneficial interest were as follows:

	Year Ended December 31, 2017						Year Ended December 31, 2016
	Shares			Amount			Shares			Amount
Class AAA
Shares sold		4,891,720		$	46,210,450			4,639,468		$	43,018,104
Shares issued upon reinvestment of distributions		3,072,628			28,996,855			3,454,038			31,946,668
Shares redeemed		(9,291,649	)		(87,790,185	)		(11,440,214	)		(105,310,364	)
Net decrease		(1,327,301	)	$	(12,582,880	)		(3,346,708	)	$	(30,345,592	)
Class A
Shares sold		20,115,610		$	193,210,651			16,726,963		$	158,562,726
Shares issued upon reinvestment of distributions		6,308,397			60,419,407			6,431,994			60,335,587
Shares redeemed		(23,064,626	)		(221,402,278	)		(18,041,906	)		(169,170,172	)
Net increase		3,359,381		$	32,227,780			5,117,051		$	49,728,141
Class C
Shares sold		17,834,104		$	122,991,759			14,746,021		$	103,855,094
Shares issued upon reinvestment of distributions		11,946,577			81,896,943			11,607,259			81,152,204
Shares redeemed		(24,679,977	)		(169,867,589	)		(23,171,261	)		(161,600,408	)
Net increase		5,100,704		$	35,021,113			3,182,019		$	23,406,890
Class I
Shares sold		15,609,938		$	153,940,468			5,401,511		$	52,129,624
Shares issued upon reinvestment of distributions		1,495,658			14,720,067			1,186,059			11,379,762
Shares redeemed		(5,511,547	)		(54,323,366	)		(5,672,219	)		(54,176,162	)
Net increase		11,594,049		$	114,337,169			915,351		$	9,333,224
Class T(a)
Shares sold		107		$	1,000			—			—
Shares issued upon reinvestment of distributions		5			46			—			—
Net increase		112		$	1,046			—			—

(a)     Class T Shares were initially offered on July 5, 2017.

9. Transactions in Securities of Affiliated Issuers. The 1940 Act defines affiliated issuers as those in which the Fund’s holdings of an issuer represent 5% or more of the outstanding voting securities of the issuer. A summary of the Fund’s transactions in the securities of these issuers during the year ended December 31, 2017 is set forth below:

	Beginning Shares		Stock Dividend		Ending Shares		Dividend Income		Realized Gain		Value at December 31, 2017	Change in Unrealized Appreciation		Percent Owned of Shares Outstanding
Corning Natural Gas Holding Corp.		324,000		64,800		388,800		$209,304		—	$7,581,600		$1,425,600	12.99%
Corning Natural Gas Holding Corp., 4.800%, Ser. B		54,000		—		54,000		53,946		—	1,080,000		54,428	22.11%
Total								$263,250		—	$8,661,600		$1,480,028

21

The Gabelli Utilities Fund

Notes to Financial Statements (Continued)

10. 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.

11. Subsequent Events. Management has evaluated the impact on the Fund of all other 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.

22

The Gabelli Utilities Fund

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of

The Gabelli Utilities Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of The Gabelli Utilities Fund (the “Fund”), including the schedule of investments, as of December 31, 2017, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund at December 31, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of the Fund’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2017, by correspondence with the custodian. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Gabelli/GAMCO Funds investment companies since 1992.

Philadelphia, Pennsylvania

February 28, 2018

23

The Gabelli Utilities Fund

Additional Fund Information (Unaudited)

The business and affairs of the Fund are managed under the direction of the Fund’s Board of Trustees. Information pertaining to the Trustees and officers of the Fund is set forth below. The Fund’s Statement of Additional Information includes additional information about the Fund’s Trustees and is available without charge, upon request, by calling 800-GABELLI (800-422-3554) or by writing to The Gabelli Utilities Fund at One Corporate Center, Rye, NY 10580-1422.

Name, Position(s) Address1 and Age	Term of Office and Length of Time Served2	Number of Funds in Fund Complex Overseen by Trustee	Principal Occupation(s) During Past Five Years	Other Directorships Held by Trustee3
INTERESTED TRUSTEES4:
Mario J. Gabelli, CFA Trustee Age: 75	Since 1999	32	Chairman, Chief Executive Officer, and Chief Investment Officer– Value Portfolios of GAMCO Investors, Inc. and Chief Investment Officer– Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc.; Director/ Trustee or Chief Investment Officer of other registered investment companies within the Gabelli/GAMCO Fund Complex; Chief Executive Officer of GGCP, Inc.; Executive Chairman of Associated Capital Group, Inc.	Director of Morgan Group Holdings, Inc. (holding company); Chairman of the Board and Chief Executive Officer of LICT Corp. (multimedia and communication services company); Director of CIBL, Inc. (broadcasting and wireless communications); Director of ICTC Group Inc. (communications)
INDEPENDENT TRUSTEES5:
Anthony J. Colavita Trustee Age: 82	Since 1999	28	President of the law firm of Anthony J. Colavita, P.C.	—
Vincent D. Enright Trustee Age: 74	Since 1999	17	Former Senior Vice President and Chief Financial Officer of KeySpan Corp. (public utility) (1994-1998)	Director of Echo Therapeutics, Inc. (therapeutics and diagnostics) (2008-2014); Director of the LGL Group, Inc. (diversified manufacturing) (2011-2014)
Mary E. Hauck Trustee Age: 75	Since 2000	11	Retired Senior Manager of the Gabelli-O’Connor Fixed Income Mutual Funds Management Company	—
Kuni Nakamura Trustee Age: 49	Since 2009	33	President of Advanced Polymer, Inc. (chemical manufacturing company); President of KEN Enterprises, Inc. (real estate)	—
Werner J. Roeder Trustee Age: 77	Since 1999	23	Retired physician; Former Vice President of Medical Affairs (Medical Director) of New York Presbyterian/Lawrence Hospital (1999-2014)	—

24

The Gabelli Utilities Fund

Additional Fund Information (Continued) (Unaudited)

Name, Position(s) Address1 and Age	Term of Office and Length of Time Served2	Principal Occupation(s) During Past Five Years
OFFICERS:
Bruce N. Alpert President Age: 66	Since 2003	Executive Vice President and Chief Operating Officer of Gabelli Funds, LLC since 1988; Officer of registered investment companies within the Gabelli/GAMCO Fund Complex; Senior Vice President of GAMCO Investors, Inc. since 2008
John C. Ball Treasurer Age: 41	Since 2017	Treasurer of all the registered investment companies within the Gabelli/GAMCO Fund Complex since 2017; Vice President and Assistant Treasurer of AMG Funds, 2014-2017; Vice President of State Street Corporation, 2007-2014
Agnes Mullady Vice President Age: 59	Since 2006	Officer of all of the registered investment companies within the Gabelli/GAMCO Fund Complex since 2006; President and Chief Operating Officer of the Fund Division of Gabelli Funds, LLC since 2015; Chief Executive Officer of G.distributors, LLC since 2010; Senior Vice President of GAMCO Investors, Inc. since 2009; Vice President of Gabelli Funds, LLC since 2007; Executive Vice President of Associated Capital Group, Inc. since 2016
Andrea R. Mango Secretary Age: 45	Since 2013	Vice President of GAMCO Investors, Inc. since 2016; Counsel of Gabelli Funds, LLC since 2013; Secretary of all registered investment companies within the Gabelli/GAMCO Fund Complex since 2013; Vice President of all closed-end funds within the Gabelli/GAMCO Fund Complex since 2014; Corporate Vice President within the Corporate Compliance Department of New York Life Insurance Company, 2011-2013
Richard J. Walz Chief Compliance Officer Age: 58	Since 2013	Chief Compliance Officer of all of the registered investment companies within the Gabelli/ GAMCO Fund Complex since 2013; Chief Compliance Officer of AEGON USA Investment Management, 2011-2013

¹  Address: One Corporate Center, Rye, NY 10580-1422, unless otherwise noted.

²  Each Trustee will hold office for an indefinite term until the earliest of (i) the next meeting of shareholders, if any, called for the purpose of considering the election or re-election of such Trustee and until the election and qualification of his or her successor, if any, elected at such meeting, or (ii) the date a Trustee resigns or retires, or a Trustee is removed by the Board of Trustees or shareholders, in accordance with the Fund’s By-Laws and Agreement and Declaration of Trust. Each officer will hold office for an indefinite term until the date he or she resigns or retires or until his or her successor is elected and qualified.

³  This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934, as amended, i.e., public companies, or other investment companies registered under the 1940 Act.

⁴  “Interested person” of the Fund as defined in the 1940 Act. Mr. Gabelli is considered an “interested person” because of his affiliation with Gabelli Funds, LLC which acts as the Fund’s investment adviser.

⁵  Trustees who are not interested persons are considered “Independent” Trustees.

25

Gabelli/GAMCO Funds and Your Personal Privacy
Who are we? The Gabelli/GAMCO Funds are investment companies registered with the Securities and Exchange Commission under the Investment Company Act of 1940. We are managed by Gabelli Funds, LLC and GAMCO Asset Management Inc., which are affiliated with GAMCO Investors, Inc. that is a publicly held company with subsidiaries and affiliates that provide investment advisory services for a variety of clients. What kind of non-public information do we collect about you if you become a fund shareholder? If you apply to open an account directly with us, you will be giving us some non-public information about yourself. The non-public information we collect about you is:
●	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.
●	Information about your transactions with us, any transactions with our affiliates, and transactions with the entities we hire to provide services to you. This would include information about the shares that you buy or redeem. 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 website, 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 provide services to you or the fund 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.

THE GABELLI UTILITIES FUND

One Corporate Center

Rye, NY 10580-1422

Portfolio Manager Biography

Mario J. Gabelli, CFA, is Chairman, Chief Executive Officer, and Chief Investment Officer—Value Portfolios of GAMCO Investors, Inc. that he founded in 1977, and Chief Investment Officer—Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc. He is also Executive Chairman of Associated Capital Group, Inc. Mr. Gabelli is a summa cum laude graduate of Fordham University and holds an MBA degree from Columbia Business School and Honorary Doctorates from Fordham University and Roger Williams University.

2017 TAX NOTICE TO SHAREHOLDERS (Unaudited)

For the year ended December 31, 2017, the Fund paid to shareholders ordinary income distributions (comprised of net investment income and short term capital gains) totaling $0.120, $0.119, $0.104, $0.141, and $0.222 per share for Class AAA, Class A, Class C, Class I, and Class T Shares, respectively, and long term capital gains totaling $19,275,900 or the maximum allowable. The distributions of long term capital gains have been designated as a capital gain dividend by the Fund’s Board of Trustees. For the year ended December 31, 2017, 100% of the ordinary income distribution qualifies for the dividends received deduction available to corporations. The Fund designates 100% of the ordinary income distribution as qualified dividend income pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designates 1.21% of the ordinary income distribution as qualified interest income pursuant to the Tax Relief, Unemployment Recharacterization, and Job Creation Act of 2010. The Fund designates 100% of the ordinary income distribution as qualified short term gain pursuant to the American Jobs Creation Act of 2004.

U.S. Government Income

The percentage of the ordinary income distribution paid by the Fund during 2017 which was derived from U.S. Treasury securities was 1.04%. Such income is exempt from state and local tax in all states. However, many states, including New York and California, allow a tax exemption for a portion of the income earned only if a mutual fund has invested at least 50% of its assets at the end of each quarter of the Fund’s fiscal year in U.S. Government securities. The Fund did not meet this strict requirement in 2017. Due to the diversity in state and local tax law, it is recommended that you consult your personal tax adviser as to the applicability of the information provided to your specific situation.

All designations are based on financial information available as of the date of this annual report and, accordingly, are subject to change. For each item, it is the intention of the Fund to designate the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.

We have separated the portfolio manager’s commentary from the financial statements and investment portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that the content of the portfolio manager’s commentary is unrestricted. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com.

THE GABELLI UTILITIES FUND

One Corporate Center

Rye, New York 10580-1422

t   800-GABELLI (800-422-3554)

f   914-921-5118

e  info@gabelli.com

    GABELLI.COM

Net Asset Value per share available daily

by calling 800-GABELLI after 7:00 P.M.

BOARD OF TRUSTEES

OFFICERS

Mario J. Gabelli, CFA Chairman and Chief Executive Officer, GAMCO Investors, Inc. Executive Chairman, Associated Capital Group, Inc. Anthony J. Colavita President, Anthony J. Colavita, P.C. Vincent D. Enright Former Senior Vice President and Chief Financial Officer, KeySpan Corp. Mary E. Hauck Former Senior Portfolio Manager, Gabelli-O’Connor Fixed Income Mutual Fund Management Co. Kuni Nakamura President, Advanced Polymer, Inc. Werner J. Roeder Former Medical Director, Lawrence Hospital

Bruce N. Alpert President John C. Ball Treasurer Agnes Mullady Vice President Andrea R. Mango Secretary Richard J. Walz Chief Compliance Officer DISTRIBUTOR G.distributors, LLC CUSTODIAN State Street Bank and Trust Company TRANSFER AGENT AND DIVIDEND DISBURSING AGENT DST Asset Manager Solutions Inc. LEGAL COUNSEL Skadden, Arps, Slate, Meagher & Flom LLP

This report is submitted for the general information of the shareholders of The Gabelli Utilities Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.

GAB470Q417AR

Item 2. Code of Ethics.

(a) The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

(c) There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description.

(d) The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.

Item 3. Audit Committee Financial Expert.

As of the end of the period covered by the report, the registrant’s Board of Trustees has determined that Vincent D. Enright is qualified to serve as an audit committee financial expert serving on its audit committee and that he is “independent,” as defined by Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services.

Audit Fees

(a) The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $31,300 for 2016 and $31,300 for 2017.

Audit-Related Fees

(b) The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $0 for 2016 and $0 for 2017.

Tax Fees

(c) The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $3,700 for 2016 and $3,700 for 2017. Tax fees represent tax compliance services provided in connection with the review of the Registrant’s tax returns.

All Other Fees

(d) The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $485 for 2016 and $1,237 for 2017. The fees relate to Passive Foreign Investment Company identification database subscription fees billed on an annual basis.

(e)(1) Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

Pre-Approval Policies and Procedures. The Audit Committee (“Committee”) of the registrant is responsible for pre-approving (i) all audit and permissible non-audit services to be provided by the independent registered public accounting firm to the registrant and (ii) all permissible non-audit services to be provided by the independent registered public accounting firm to the Adviser, Gabelli Funds, LLC, and any affiliate of Gabelli Funds, LLC (“Gabelli”) that provides services to the registrant (a “Covered Services Provider”) if the independent registered public accounting firm’s engagement related directly to the operations and financial reporting of the registrant. The Committee may delegate its responsibility to pre-approve any such audit and permissible non-audit services to the Chairperson of the Committee, and the Chairperson must report to the Committee, at its next regularly scheduled meeting after the Chairperson’s pre-approval of such services, his or her decision(s). The Committee may also establish detailed pre-approval policies and procedures for pre-approval of such services in accordance with applicable laws, including the delegation of some or all of the Committee’s pre-approval responsibilities to the other persons (other than Gabelli or the registrant’s officers). Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the permissible non-audit services were not recognized by the registrant at the time of the engagement to be non-audit services; and (ii) such services are promptly brought to the attention of the Committee and approved by the Committee or Chairperson prior to the completion of the audit.

(e)(2) The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b) N/A

(c) 100%

(d) 100%

(f) The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was 0%.

(g) The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $35,321 for 2016 and $36,986 for 2017.

(h) The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s Board of Trustees, where those changes were implemented after the

registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

Item 11. Controls and Procedures.

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.

(a)(1) Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3) Not applicable.

(a)(4) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)         The Gabelli Utilities Fund                                                                                                                

By (Signature and Title)*         /s/ Bruce N. Alpert                                                                                                      

                                                   Bruce N. Alpert, Principal Executive Officer                                                         

Date    3/09/2018                                                                                                                                                            

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*         /s/ Bruce N. Alpert                                                                                                       

                                                   Bruce N. Alpert, Principal Executive Officer                                                           

Date    3/09/2018                                                                                                                                                            

By (Signature and Title)*         /s/ John C. Ball                                                                                                            

                                                   John C. Ball, Principal Financial Officer and Treasurer                                           

Date    3/09/2018                                                                                                                                                            

^*  Print the name and title of each signing officer under his or her signature.