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
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The Gabelli Utilities Fund
-----------------------------------------------------
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
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(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: December 31
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Date of reporting period: December 31, 2004
------------------
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. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
[PHOTO OMITTED]
THE
GABELLI
UTILITIES
FUND
ANNUAL REPORT
DECEMBER 31, 2004
THE GABELLI UTILITIES FUND
ANNUAL REPORT
DECEMBER 31, 2004
TO OUR SHAREHOLDERS,
The Sarbanes-Oxley Act requires a Fund's principal executive and financial
officers to certify the entire contents of the semi-annual and annual
shareholder reports in a filing with the Securities and Exchange Commission on
Form N-CSR. This certification would cover the portfolio manager's commentary
and subjective opinions if they are attached to or a part of the financial
statements. Many of these comments and opinions would be difficult or impossible
to certify.
Because we do not want our portfolio managers to eliminate their opinions
and/or restrict their commentary to historical facts, we have separated their
commentary from the financial statements and investment portfolio and have sent
it to you separately. Both the commentary and the financial statements,
including the portfolio of investments, will be available on our website at
www.gabelli.com/funds.
Enclosed are the audited financial statements and the investment portfolio
as of December 31, 2004 with a description of factors that affected the
performance during the past year.
PERFORMANCE DISCUSSION
During 2004, the Gabelli Utilities Fund rose 15.59% compared to gains by
the S&P 500 Utility Index and the average utility fund monitored by Lipper of
24.28% and 23.40%, respectively. Utility stocks had a strong fourth quarter of
2004, finishing a year of strong performance. A number of factors contributed to
these gains. One reason was continued rotation by institutional investors out of
higher growth sectors of the market and into defensive stocks.
Equity investors spent most of the first ten months of 2004 finding things
to worry about. Early in the year it was the economy, as anemic job growth
caused investors to question the strength and endurance of the recovery. As we
headed into the spring it was interest rates, as surprisingly strong March
employment data convinced investors the Federal Reserve would soon begin
tightening. From July through October, it was back to the economy, which stalled
suddenly in the summer and remained soft through the early fall. Throughout this
period, rapidly rising oil prices and uncertainty created by what appeared to be
a "too close to call" presidential election also undermined investor confidence.
Late in October, the market started to improve. Oil prices declined
significantly and the economy regained momentum. The conclusive Republican
victory eliminated uncertainty regarding government policies on certain
issues. Investors focused on the positives -- a sturdy economy and respectable
corporate earnings growth -- and stocks took off. Through the end of October,
2004, the Dow Jones Industrials ("DJIA") and NASDAQ Composite were down -2.4%
and -1.42%, respectively and the S&P 500 was up 3.06%. At the end of 2004, the
DJIA had gained 5.4%, the NASDAQ Composite was up 8.59%, and the S&P 500 had
advanced 10.87% for the year.
Just prior to the end of 2004 was the announcement of the largest merger
in the history of the U.S. utility industry, when Exelon Corp. agreed to buy
Public Service Enterprise Group. The Fund has tried to stay ahead of the
consolidation trend by investing in several of the smaller and mid-sized
utilities that we think are attractive takeover candidates. Also during 2004,
there was an increase in merger activity among natural gas utilities and gas
pipelines. We also believe that a number of large foreign utilities are
interested in acquiring U.S. utilities.
Utilities are increasing their dividends again. During 2004, several
utilities announced dividend increases for the first time in several years,
making it the third consecutive year in which the number of utilities hiking
their dividends has increased.
Sincerely yours,
/s/ Bruce N. Alpert
Bruce N. Alpert
President
February 23, 2005
COMPARISON OF CHANGE IN VALUE OF A $10,000
INVESTMENT IN THE GABELLI UTILITIES FUND CLASS AAA
SHARES AND THE S&P UTILITY INDEX
[GRAPHIC OMITTED]
PLOT POINTS FOLLOW:
Gabelli Utilities Fund
Class AAA Shares S&P Utility Index
8/31/99 10,000 10,000
12/31/99 12,225 9,008
12/31/00 14,234 14,160
12/31/01 12,047 9,849
12/31/02 10,233 6,896
12/31/03 13,249 8,706
12/31/04 15,314 10,820
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.
COMPARATIVE RESULTS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH DECEMBER 31, 2004 (A)
----------------------------------------------------
Since
Inception
QUARTER 1 YEAR 3 YEAR 5 YEAR (8/31/99)
------- ------ ------ ------ ---------
GABELLI UTILITIES FUND CLASS AAA .... 8.13% 15.59% 8.33% 4.61% 8.31%
S&P 500 Utility Index ............... 12.18 24.28 3.18 3.73 1.53
Lipper Utility Fund Average ......... 11.91 23.40 4.87 0.47 2.35
Class A ............................. 8.11 15.39 8.39 4.65 8.34
1.83(b) 8.78(b) 6.26(b) 3.42(b) 7.15(b)
Class B ............................. 7.88 14.54 7.71 4.25 7.96
2.88(c) 9.54(c) 6.84(c) 3.96(c) 7.83(c)
Class C ............................. 7.99 14.64 7.82 4.32 8.02
6.99(c) 13.64(c) 7.82(c) 4.32(c) 8.02(c)
(a) RETURNS REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS.
TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN SHARE PRICE AND
REINVESTMENT OF DIVIDENDS 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. INVESTORS SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS AND
CHARGES AND EXPENSES OF THE FUND CAREFULLY BEFORE INVESTING. THE PROSPECTUS
CONTAINS MORE COMPLETE INFORMATION ABOUT THIS AND OTHER MATTERS AND SHOULD
BE READ CAREFULLY BEFORE INVESTING. PERFORMANCE FOR PERIODS LESS THAN ONE
YEAR IS NOT ANNUALIZED. OTHER SHARE CLASSES ARE AVAILABLE AND HAVE
DIFFERENT PERFORMANCE CHARACTERISTICS. THE VALUE OF UTILITY STOCKS 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 SHARES' NET ASSET
VALUES ARE USED TO CALCULATE PERFORMANCE FOR THE PERIODS PRIOR TO THE
ISSUANCE OF CLASS A SHARES, CLASS B SHARES AND CLASS C SHARES ON DECEMBER
31, 2002. THE ACTUAL PERFORMANCE FOR THE CLASS B SHARES AND CLASS C SHARES
WOULD HAVE BEEN LOWER DUE TO THE ADDITIONAL EXPENSES ASSOCIATED WITH THESE
CLASSES OF SHARES. THE S&P 500 UTILITY INDEX IS AN UNMANAGED INDICATOR OF
ELECTRIC AND GAS UTILITY STOCK PERFORMANCE, WHILE THE LIPPER AVERAGE
REFLECTS THE AVERAGE PERFORMANCE OF MUTUAL FUNDS CLASSIFIED IN THIS
PARTICULAR CATEGORY.
(b) INCLUDES THE EFFECT OF THE MAXIMUM 5.75% SALES CHARGE AT THE BEGINNING OF
THE PERIOD.
(c) INCLUDES THE EFFECT OF THE APPLICABLE CONTINGENT DEFERRED SALES CHARGE AT
THE END OF THE PERIOD SHOWN FOR CLASS B AND CLASS C SHARES, RESPECTIVELY.
- --------------------------------------------------------------------------------
2
THE GABELLI UTILITIES FUND
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
For the Six Month Period from July 1, 2004 through December 31, 2004
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, 2004.
Beginning Ending Annualized Expenses
Account Value Account Value Expense Paid During
7/1/04 12/31/04 Ratio Period*
- --------------------------------------------------------------------------------
GABELLI UTILITIES FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Class AAA $1,000.00 $1,114.90 1.72% $ 9.14
Class A $1,000.00 $1,114.50 1.72% $ 9.14
Class B $1,000.00 $1,109.90 2.47% $13.10
Class C $1,000.00 $1,110.90 2.47% $13.11
HYPOTHETICAL 5% RETURN
Class AAA $1,000.00 $1,016.49 1.72% $ 8.72
Class A $1,000.00 $1,016.49 1.72% $ 8.72
Class B $1,000.00 $1,012.72 2.47% $12.50
Class C $1,000.00 $1,012.72 2.47% $12.50
* 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, then divided by 366.
3
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)
Under SEC rules, all funds are required to include in their annual and
semi-annual shareholder reports a presentation of portfolio holdings in a table,
chart or graph by reasonably identifiable categories. The following table which
presents portfolio holdings as a percent of total net assets is provided in
compliance with such requirement.
GABELLI UTILITIES FUND
Energy and Utilities: Integrated ................. 39.0%
Energy and Utilities: Electric ................... 24.6%
U.S. Government Obligations ...................... 12.5%
Energy and Utilities: Natural Gas ................ 8.3%
Cable and Satellite .............................. 5.4%
Energy and Utilities: Oil ........................ 2.0%
Telecommunications ............................... 1.8%
Entertainment .................................... 1.6%
Environmental Services ........................... 1.5%
Wireless Communications .......................... 1.3%
Energy and Utilities: Water ...................... 0.5%
Metals and Mining ................................ 0.2%
Other Assets and Liabilities - Net ............... 1.3%
-----
100.0%
=====
THE FUND FILES A COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS WITH THE SEC FOR THE
FIRST AND THIRD QUARTERS OF EACH FISCAL YEAR ON FORM N-Q, THE FIRST OF WHICH WAS
FILED FOR THE QUARTER ENDED SEPTEMBER 30, 2004. 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 COMMISSION'S PUBLIC
REFERENCE ROOM IN WASHINGTON, DC. INFORMATION ON THE OPERATION OF THE PUBLIC
REFERENCE ROOM MAY BE OBTAINED BY CALLING 1-800-SEC-0330.
MONTHLY DISTRIBUTIONS
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. The Fund continues to evaluate its
distribution policy in light of ongoing economic and market conditions and may
change the amount of the monthly distributions in the future. The current
annualized rate is $0.84 per share. Distributions for the year ended December
31, 2004 included a return of capital of $0.69, $0.72, $0.75 and $0.77 per share
for Class AAA, Class A, Class B and Class C, respectively.
PROXY VOTING
The Fund files Form N-PX with its complete proxy voting record for the 12 months
ended June 30th, no later than August 31st of each year. A description of the
Fund's proxy voting policies and procedures are available (i) without charge,
upon request, by calling 800-GABELLI (800-422-3554); (ii) by writing to The
Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; and (iii) by visiting
the Securities and Exchange Commission's website at www.sec.gov.
4
THE GABELLI UTILITIES FUND
SCHEDULE OF INVESTMENTS -- DECEMBER 31, 2004
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS -- 84.6%
CABLE AND SATELLITE -- 5.4%
25,000 Cablevision Systems Corp.,
Cl. A+ .................. $ 586,037 $ 622,500
20,000 Comcast Corp., Cl. A+ ..... 627,995 665,600
55,000 DIRECTV Group Inc.+ ....... 951,574 920,700
50,000 EchoStar Communications
Corp., Cl. A ............ 1,583,731 1,662,000
17,000 Liberty Media International Inc.,
Cl. A+ .................. 682,372 785,910
90,000 UnitedGlobalCom Inc., Cl. A+ 758,169 869,400
----------- ------------
5,189,878 5,526,110
----------- ------------
ENERGY AND UTILITIES: ELECTRIC -- 24.2%
90,000 AES Corp.+ ................ 434,950 1,230,300
192,000 Allegheny Energy Inc.+ .... 2,007,140 3,784,320
25,000 ALLETE Inc. ............... 814,653 918,750
10,000 American Electric Power
Co. Inc. ................ 348,725 343,400
6,000 Chubu Electric
Power Co. Inc. .......... 139,829 144,042
6,000 Chugoku Electric Power
Co. Inc. ................ 108,973 111,779
20,000 Cleco Corp. ............... 403,257 405,200
46,000 DPL Inc. .................. 980,514 1,155,060
6,000 DTE Energy Co. ............ 240,835 258,780
50,000 Duquesne Light Holdings Inc. 752,566 942,500
52,000 Edison International ...... 671,304 1,665,560
80,000 El Paso Electric Co.+ ..... 963,137 1,515,200
70,000 Electric Power Development
Co., Ltd.+ .............. 1,940,751 1,960,574
20,000 FPL Group Inc. ............ 1,249,752 1,495,000
50,000 Great Plains Energy Inc. .. 1,331,656 1,514,000
30,000 Green Mountain Power Corp. 682,200 864,900
3,000 Hokkaido Electric Power
Co. Inc. ................ 57,078 58,993
6,000 Hokuriku Electric Power Co. 106,926 109,086
12,000 Kansai Electric Power Co. Inc. 233,993 243,583
80,000 Pepco Holdings Inc. ....... 1,585,764 1,705,600
5,000 Pinnacle West Capital Corp. 221,333 222,050
6,000 Shikoku Electric Power
Co. Inc. ................ 114,759 117,107
40,000 Southern Co. .............. 1,229,773 1,340,800
8,000 Tokyo Electric Power
Co. Inc. ................ 190,577 196,350
10,000 TXU Corp. ................. 195,942 645,600
2,000 UIL Holdings Corp. ........ 70,260 102,600
70,000 Unisource Energy Corp. .... 1,641,096 1,687,700
----------- ------------
18,717,743 24,738,834
----------- ------------
ENERGY AND UTILITIES: INTEGRATED -- 38.3%
15,000 Alliant Energy Corp. ...... 282,537 429,000
30,000 Ameren Corp. .............. 1,329,411 1,504,200
270,000 Aquila Inc.+ .............. 828,387 996,300
30,000 Black Hills Corp. ......... 884,698 920,400
6,300 CH Energy Group Inc. ...... 280,270 302,715
14,000 Cinergy Corp. ............. 492,620 582,820
MARKET
SHARES COST VALUE
------ ---- ------
130,000 CMS Energy Corp.+ ......... $ 857,619 $1,358,500
12,000 Consolidated Edison Inc. .. 508,978 525,000
17,000 Constellation Energy
Group Inc. .............. 448,840 743,070
52,000 Duke Energy Corp. ......... 1,090,200 1,317,160
200,000 El Paso Corp. ............. 1,779,965 2,080,000
1,000 Electricidade de Portugal
SA, ADR ................ 29,650 30,230
130,000 Enel SpA .................. 888,729 1,277,559
70,000 Energy East Corp. ......... 1,474,159 1,867,600
4,000 Entergy Corp. ............. 152,640 270,360
35,000 FirstEnergy Corp. ......... 1,206,299 1,382,850
19,500 Florida Public
Utilities Co. ........... 336,106 373,425
27,000 Hawaiian Electric
Industries Inc. ......... 636,374 787,050
100,000 Hera SpA .................. 174,312 288,161
2,000 Iberdrola SA .............. 46,240 50,836
6,000 Kyushu Electric Power
Co. Inc. ................ 118,804 121,206
32,000 Maine & Maritimes Corp. ... 982,930 843,200
27,000 MGE Energy Inc. ........... 852,234 972,810
43,805 Mirant Corp.+ ............. 85,781 16,865
10,000 National Grid Transco
plc, ADR ................ 386,405 479,900
25,000 NiSource Inc. ............. 514,479 569,500
40,000 Northeast Utilities ....... 681,116 754,000
35,000 NSTAR ..................... 1,530,573 1,899,800
45,000 OGE Energy Corp. .......... 1,092,836 1,192,950
5,000 Ormat Technologies Inc.+ .. 75,000 81,400
15,000 Otter Tail Corp. .......... 401,965 382,950
50,000 Patina Oil & Gas Corp. .... 1,828,132 1,875,000
28,000 PG&E Corp.+ ............... 365,349 931,840
14,500 PPL Corp. ................. 496,028 772,560
40,000 Progress Energy Inc. ...... 1,679,337 1,809,600
30,000 Public Service Enterprise
Group Inc. .............. 1,495,490 1,553,100
1,500 SCANA Corp. ............... 58,140 59,100
60,000 Scottish Power plc ........ 440,529 464,520
20,000 Scottish Power plc, ADR ... 608,045 623,200
20,000 TECO Energy Inc. .......... 295,599 306,800
80,000 Tohoku Electric
Power Co. Inc. .......... 1,379,371 1,436,518
3,000 Vectren Corp. ............. 80,134 80,400
60,000 Westar Energy Inc. ........ 959,778 1,372,200
40,000 Wisconsin Energy Corp. .... 1,146,937 1,348,400
6,300 WPS Resources Corp. ....... 308,454 314,748
100,000 Xcel Energy Inc. .......... 1,616,011 1,820,000
----------- ------------
33,207,491 39,169,803
----------- ------------
ENERGY AND UTILITIES: NATURAL GAS -- 8.3%
25,000 Atmos Energy Corp. ........ 635,238 683,750
3,000 Cascade Natural Gas Corp. . 64,058 63,600
33,000 Chesapeake Utilities Corp. 830,924 881,100
10,000 Energen Corp. ............. 239,277 589,500
30,000 KeySpan Corp. ............. 1,057,210 1,183,500
25,000 Laclede Group Inc. ........ 738,140 778,750
See accompanying notes to financial statements.
5
THE GABELLI UTILITIES FUND
SCHEDULE OF INVESTMENTS (CONTINUED) -- DECEMBER 31, 2004
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
ENERGY AND UTILITIES: NATURAL GAS (CONTINUED)
35,000 National Fuel Gas Co. ..... $ 788,954 $ 991,900
11,000 Nicor Inc. ................ 231,907 406,340
40,000 ONEOK Inc. ................ 764,289 1,136,800
2,000 Peoples Energy Corp. ...... 89,955 87,900
2,000 Snam Rete Gas SpA ......... 10,804 11,635
2,500 South Jersey Industries Inc. 103,422 131,400
43,000 Southern Union Co.+ ....... 700,481 1,031,140
20,000 Southwest Gas Corp. ....... 425,018 508,000
----------- ------------
6,679,677 8,485,315
----------- ------------
ENERGY AND UTILITIES: OIL -- 2.0%
40,000 Kaneb Services LLC ........ 1,727,520 1,727,600
2,000 Murphy Oil Corp. .......... 161,152 160,900
3,000 Royal Dutch Petroleum Co. . 169,635 172,140
----------- ------------
2,058,307 2,060,640
----------- ------------
ENERGY AND UTILITIES: WATER -- 0.5%
1,000 Aqua America Inc. ......... 23,520 24,590
500 California Water
Service Group ........... 16,465 18,825
5,333 Middlesex Water Co. ....... 91,735 101,007
12,000 Pennichuck Corp. .......... 286,405 313,200
1,000 Veolia Environnement ...... 31,927 36,197
----------- ------------
450,052 493,819
----------- ------------
ENTERTAINMENT -- 1.6%
50,000 Vivendi Universal SA, ADR+ 1,556,471 1,603,500
----------- ------------
ENVIRONMENTAL SERVICES -- 1.5%
35,400 Ionics Inc.+ .............. 1,533,435 1,534,236
----------- ------------
METALS AND MINING -- 0.2%
10,000 Compania de Minas
Buenaventura SA, ADR .... 239,250 229,000
----------- ------------
TELECOMMUNICATIONS -- 1.3%
2,000 BCE Inc. .................. 48,010 48,260
14,000 BellSouth Corp. ........... 423,209 389,060
200 Hutchison Telecommunications
International Ltd.+ ..... 163 180
2,000 MCI Inc. .................. 37,250 40,320
200 Mobistar SA+ .............. 18,055 18,744
200 PT Indonesian Satellite
Corporation Tbk (Indosat) 128 124
17,500 Rogers Communications
Inc., Cl. B ............. 425,207 457,625
15,000 SBC Communications Inc. ... 457,602 386,550
200 Tele2 AB, Cl. B ........... 8,180 7,855
200 Telecom Italia SpA, ADR ... 7,868 8,174
----------- ------------
1,425,672 1,356,892
----------- ------------
MARKET
SHARES COST VALUE
------ ---- ------
WIRELESS COMMUNICATIONS -- 1.3%
1,500 America Movil SA de CV,
Cl. L, ADR .............. $ 74,681 $ 78,525
1,500 China Mobile (Hong Kong)
Ltd., ADR ............... 25,767 25,740
1,500 China Unicom Ltd., ADR .... 11,942 11,775
200 Cosmote Mobile
Telecommunications SA ... 3,702 4,012
2,000 mm02 plc, ADR+ ............ 45,106 47,140
600 Mobile TeleSystems, ADR ... 79,902 83,106
190 MobilOne Ltd. ............. 218 212
1,000 Nextel Communications Inc.,
Cl. A+ .................. 29,399 30,000
2,000 SK Telecom Co. Ltd., ADR .. 43,875 44,500
200 SmarTone Telecommunications
Holdings Ltd. ........... 207 224
200 Telefonica Moviles SA, ADR 2,332 2,542
200 Tim Hellas Telecommunications
SA, ADR ................. 3,316 3,750
200 Total Access
Communication plc+ ...... 714 708
15,000 United States Cellular Corp.+ 678,525 671,400
6,000 Vimpel-Communications, ADR+ 195,027 216,840
200 Virgin Mobile Holdings plc+ 868 874
2,000 Vodafone Group plc, ADR ... 54,542 54,760
----------- ------------
1,250,123 1,276,108
----------- ------------
TOTAL COMMON STOCKS ....... 72,308,099 86,474,257
----------- ------------
PREFERRED STOCKS -- 0.9%
ENERGY AND UTILITIES: INTEGRATED -- 0.7%
8,800 Cinergy Corp.,
9.500% Cv. Pfd. ......... 440,000 557,920
15,000 Mirant Trust I,
6.250% Cv. Pfd.,
Ser. A+ (a) ............. 432,655 156,000
----------- ------------
872,655 713,920
----------- ------------
TELECOMMUNICATIONS -- 0.2%
4,000 Cincinnati Bell Inc.,
6.750% Cv. Pfd.,
Ser. B .................. 163,992 163,000
----------- ------------
TOTAL PREFERRED STOCKS ... 1,036,647 876,920
----------- ------------
PRINCIPAL
AMOUNT
---------
CONVERTIBLE BONDS -- 0.7%
ENERGY AND UTILITIES: ELECTRIC -- 0.4%
$ 450,000 AES Corp., Sub. Deb. Cv.,
4.500%, 08/15/05 ........ 413,893 454,500
----------- ------------
See accompanying notes to financial statements.
6
THE GABELLI UTILITIES FUND
SCHEDULE OF INVESTMENTS (CONTINUED) -- DECEMBER 31, 2004
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COST VALUE
--------- ---- ------
CONVERTIBLE BONDS (CONTINUED)
TELECOMMUNICATIONS -- 0.3%
$ 300,000 Nortel Networks Corp., Cv.,
4.250%, 09/01/08 ........ $ 291,774 $ 293,250
----------- ------------
TOTAL CONVERTIBLE BONDS ... 705,667 747,750
----------- ------------
U.S. GOVERNMENT OBLIGATIONS -- 12.5%
12,736,365 U.S. Treasury Bills,
1.794% to 2.202%++,
01/20/05 to 03/17/05 .... 12,736,365 12,737,083
----------- ------------
TOTAL INVESTMENTS -- 98.7%. $86,786,778 100,836,010
===========
OTHER ASSETS AND LIABILITIES (NET) -- 1.3% 1,378,146
------------
NET ASSETS -- 100.0% ..................... $102,214,156
============
- ----------
For Federal tax purposes:
Aggregate cost ........................... $ 87,025,596
============
Gross unrealized appreciation ............ $ 14,716,996
Gross unrealized depreciation ............ (906,582)
------------
Net unrealized
appreciation (depreciation) ............. $ 13,810,414
============
- ----------
(a) Security in default.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depository Receipt.
See accompanying notes to financial statements.
7
THE GABELLI UTILITIES FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2004
- --------------------------------------------------------------------------------
ASSETS:
Investments, at value (cost $86,786,778).. $100,836,010
Cash ..................................... 743
Dividends and interest receivable ........ 148,213
Receivable for Fund shares sold .......... 1,465,868
Other assets ............................. 5,443
------------
TOTAL ASSETS ............................. 102,456,277
------------
LIABILITIES:
Payable for Fund shares redeemed ......... 53,735
Payable for investment advisory fees ..... 80,959
Payable for distribution fees ............ 24,983
Other accrued expenses and liabilities ... 82,444
------------
TOTAL LIABILITIES ........................ 242,121
------------
NET ASSETS applicable to 12,246,392
shares outstanding ..................... $102,214,156
============
NET ASSETS CONSIST OF:
Shares of beneficial interest, at
$0.001 par value ....................... $ 12,246
Additional paid-in capital ............... 90,144,737
Accumulated net realized loss
on investments .......................... (1,992,153)
Net unrealized appreciation on investments 14,049,326
------------
NET ASSETS ............................... $102,214,156
============
SHARES OF BENEFICIAL INTEREST:
CLASS AAA:
Net Asset Value, offering and redemption
price per share ($81,470,808 / 9,748,728
shares outstanding) .................... $8.36
=====
CLASS A:
Net Asset Value and redemption price per
share ($10,164,620 / 1,212,387
shares outstanding) .................... $8.38
=====
Maximum offering price per share (NAV / 0.9425,
based on maximum sales charge of 5.75%
of the offering price) ................. $8.89
=====
CLASS B:
Net Asset Value and offering price per share
($333,313 / 40,634 shares outstanding).. $8.20(a)
=====
CLASS C:
Net Asset Value and offering price per share
($10,245,415 / 1,244,643 shares outstanding) $8.23(a)
=====
- ----------
(a) Redemption price varies based on the length of time held.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2004
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends (net of foreign taxes
of $18,137) ............................ $ 2,118,486
Interest ................................. 197,870
------------
TOTAL INVESTMENT INCOME .................. 2,316,356
------------
EXPENSES:
Investment advisory fees ................. 628,457
Distribution fees -- Class AAA ........... 148,178
Distribution fees -- Class A ............. 4,619
Distribution fees -- Class B ............. 2,968
Distribution fees -- Class C ............. 14,304
Shareholder services fees ................ 68,095
Recovery of reimbursed expenses (see Note 3) 66,719
Shareholder communications expenses ...... 56,632
Registration fees ........................ 51,119
Legal and audit fees ..................... 31,338
Trustees' fees ........................... 25,500
Custodian fees ........................... 17,300
Miscellaneous expenses ................... 39,998
------------
TOTAL EXPENSES ........................... 1,155,227
------------
NET INVESTMENT INCOME .................... 1,161,129
------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on investments ......... 163,412
Net change in unrealized appreciation/
depreciation on investments ............ 8,946,173
------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS ......................... 9,109,585
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................ $ 10,270,714
============
See accompanying notes to financial statements.
8
THE GABELLI UTILITIES FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 2004 DECEMBER 31, 2003
----------------- -----------------
OPERATIONS:
Net investment income ...................................................... $ 1,161,129 $ 521,878
Net realized gain/(loss) on investments .................................... 163,412 (295,760)
Net change in unrealized appreciation/depreciation on investments .......... 8,946,173 6,636,854
------------ -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ....................... 10,270,714 6,862,972
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class AAA ................................................................ (1,083,750) (513,031)
Class A .................................................................. (39,396) (2,529)
Class B .................................................................. (5,664) (2,460)
Class C .................................................................. (32,816) (3,858)
------------ -----------
(1,161,626) (521,878)
------------ -----------
Net realized gains
Class AAA ................................................................ (125,338) --
Class A .................................................................. (4,556) --
Class B .................................................................. (655) --
Class C .................................................................. (3,795) --
------------ -----------
(134,344) --
------------ -----------
Return of capital
Class AAA ................................................................ (5,119,985) (2,646,786)
Class A .................................................................. (186,117) (13,048)
Class B .................................................................. (26,759) (12,689)
Class C .................................................................. (155,031) (19,907)
------------ -----------
(5,487,892) (2,692,430)
------------ -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ........................................ (6,783,862) (3,214,308)
------------ -----------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Class AAA .................................................................. 34,873,967 26,732,440
Class A .................................................................... 9,616,331 278,094
Class B .................................................................... 255,354 74,045
Class C .................................................................... 9,765,972 262,280
------------ -----------
NET INCREASE IN NET ASSETS FROM SHARES OF BENEFICIAL INTEREST TRANSACTIONS.. 54,511,624 27,346,859
------------ -----------
REDEMPTION FEES ............................................................ 4,853 --
------------ -----------
NET INCREASE IN NET ASSETS ................................................. 58,003,329 30,995,523
NET ASSETS:
Beginning of period ........................................................ 44,210,827 13,215,304
------------ -----------
End of period .............................................................. $102,214,156 $44,210,827
============ ===========
See accompanying notes to financial statements.
9
THE GABELLI UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. ORGANIZATION. The Gabelli Utilities Fund (the "Fund") was organized on May
18, 1999 as a Delaware statutory trust. 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.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the 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 foreign markets are generally valued at
the preceding closing values of such securities on their respective exchanges or
if after the close of the foreign markets, but prior to the close of business on
the day the securities are being valued, market conditions change significantly,
certain foreign securities may be fair valued pursuant to procedures established
by the Board. Debt instruments that are not credit impaired with remaining
maturities of 60 days or less are valued at amortized cost, unless the Board
determines such amount does not reflect the securities' fair value, in which
case these securities will be valued at their fair value as determined by the
Board. Debt instruments having a maturity greater than 60 days for which market
quotations are readily available are valued at the latest average of the bid and
asked prices. If there were no asked prices quoted on such day, the security is
valued using the closing bid price. Futures contracts are valued at the closing
settlement price of the exchange or board of trade on which the applicable
contract is traded.
Securities and assets for which market quotations are not readily available are
valued at their fair value as determined in good faith under procedures
established by and under the general supervision of 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 to the valuation and changes in valuation of similar securities,
including a comparison of foreign securities to the equivalent U.S. dollar value
ADR 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.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
primary government securities dealers recognized by the Federal Reserve Board,
with member banks of the Federal Reserve System or with other brokers or dealers
that meet credit guidelines established by the Adviser and reviewed by the
Board. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
The Fund will
10
THE GABELLI UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
always receive and maintain securities as collateral whose market value,
including accrued interest, will be at least equal to 102% of the dollar amount
invested by the Fund in each agreement. The Fund will make payment for such
securities only upon physical delivery or upon evidence of book entry transfer
of the collateral to the account of the custodian. To the extent that any
repurchase transaction exceeds one business day, the value of the collateral is
marked-to-market on a daily basis to maintain the adequacy of the collateral. If
the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
Dividend income is recorded on the ex-dividend date.
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 net asset value 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 solely borne by the class incurring the expense.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders are recorded on the ex-dividend date. Distributions to shareholders
are based on ordinary income and long-term capital gains as determined in
accordance with Federal income tax regulations, which may differ from income and
capital gains as determined under U.S. generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Fund, timing differences and
differing characterizations of distributions made by the Fund.
These book/tax differences are either temporary or permanent in nature. To the
extent these differences are permanent, adjustments are made to the appropriate
equity accounts in the period that the differences arise.
For the year ended December 31, 2004, reclassifications were made to decrease
accumulated net investment loss by $497 and decrease accumulated net realized
loss on investments by $133,847 with an offsetting adjustment to additional
paid-in capital. These reclassifications have no impact on the net asset value
of the Fund and the calculation of net investment income per share in the
financial highlights excludes these adjustments.
The tax character of distributions paid during the years ended December 31, 2004
and December 31, 2003 was as follows:
YEAR ENDED YEAR ENDED
DECEMBER 31, 2004 DECEMBER 31, 2003
----------------- -----------------
DISTRIBUTIONS PAID FROM:
Ordinary income (inclusive of gains) ..... $1,295,970 $ 521,878
Non-taxable return of capital ............ 5,487,892 2,692,430
---------- ----------
Total distributions paid ................. $6,783,862 $3,214,308
========== ==========
11
THE GABELLI UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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 Fund's policy 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, 2004, the components of accumulated earnings/(losses) on a
tax basis were as follows:
Capital loss carryforward ............................... $(1,753,335)
Net unrealized appreciation on investments
and payables and receivables .......................... 13,810,508
-----------
Total accumulated gain .................................. $12,057,173
===========
The Fund has a net capital loss carryforward for Federal income tax purposes at
December 31, 2004 of $1,753,335. This capital loss carryforward is available to
reduce future required distributions of net capital gains to shareholders.
$954,200 of the loss carryforward is available through 2008; $655,271 is
available through 2009; $54,818 is available through 2010; and $89,046 is
available through 2011. For the year ended December 31, 2004, the Fund utilized
net capital loss carryforwards of $134,344.
3. INVESTMENT ADVISORY AGREEMENT. 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 the Fund's 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 its affiliates. The Adviser
contractually agreed to waive management fees and/or reimburse expenses of the
Fund to the extent necessary to maintain the annualized total operating expenses
for Class AAA, Class A, Class B and Class C at 2.00%, 2.00%, 2.75% and 2.75%,
respectively, of average daily net assets. The Fund is obliged to repay the
Adviser for a period of two fiscal years following the fiscal year in which the
Adviser reimbursed the Fund only to the extent that the operating expenses of
the Fund fall below 2.00%, 2.00%, 2.75% and 2.75% of average daily net assets
for Class AAA, Class A, Class B and Class C Shares, respectively. For the year
ended December 31, 2004, the Fund repaid the Adviser $66,719, the full amount
due to the Adviser.
4. DISTRIBUTION PLAN. The Fund's Board has adopted a distribution plan (the
"Plan") for each class of shares pursuant to Rule 12b-1 under the 1940 Act.
Gabelli & Company, Inc. ("Gabelli & Company"), an affiliate of the Adviser,
serves as distributor of the Fund. Under the Class AAA, Class A, Class B and
Class C Share Plans, payments are authorized to Gabelli & Company at annual
rates of 0.25%, 0.25%, 1.00% and 1.00%, 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 proceeds from the sales of securities for
the year ended December 31, 2004, other than short term securities, aggregated
$59,214,289 and $9,467,626, respectively.
6. SHARES OF BENEFICIAL INTEREST. The Fund offers four classes of shares --
Class AAA Shares, Class A Shares, Class B Shares and Class C Shares. Class AAA
Shares are offered only to investors who acquire them directly from Gabelli &
Company or through selected broker/dealers without a sales charge. Class A
Shares are subject to a maximum front-end sales charge of 5.75%. Class B Shares
are subject to a contingent deferred
12
THE GABELLI UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
sales charge (CDSC) upon redemption within six years of purchase. The applicable
CDSC is equal to a declining percentage of the lesser of the net asset value per
share at the date of original purchase or at the date of redemption, based on
the length of time held. Class C Shares are subject to a 1% CDSC for one year
after purchase. As of July 27, 2004, Class B Shares are available only through
exchange of Class B Shares of other Funds distributed by Gabelli & Company.
Effective November 1, 2004, the Fund imposed a redemption fee of 2.00% on Class
AAA, Class A, Class B and Class C Shares that are redeemed or exchanged within
60 days 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. The redemption fees retained by the Fund during the year ended December
31, 2004 amounted to $4,853.
The redemption fee did not apply to shares purchased through programs that the
Adviser determined to have appropriate short-term trading policies in place.
Additionally, certain recordkeepers for qualified and non-qualified retirement
plans that could not collect the redemption fee at the participant level due to
systems limitations have received an extension until March 31, 2005 to implement
such systems.
Transactions in shares of beneficial interest were as follows:
YEAR ENDED YEAR ENDED
DECEMBER 31, 2004 DECEMBER 31, 2003
--------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ --------- ------------
CLASS AAA CLASS AAA
--------------------------- --------------------------
Shares sold ........................................ 6,962,962 $ 55,861,448 5,923,852 $ 44,009,746
Shares issued upon reinvestment of dividends ....... 577,703 4,627,738 328,032 2,417,958
Shares redeemed .................................... (3,209,195) (25,615,219) (2,732,761) (19,695,264)
--------- ------------ --------- ------------
Net increase ................................... 4,331,470 $ 34,873,967 3,519,123 $ 26,732,440
========= ============ ========= ============
CLASS A CLASS A
--------------------------- --------------------------
Shares sold ........................................ 1,196,763 $ 9,794,869 38,458 $ 281,490
Shares issued upon reinvestment of dividends ....... 13,991 114,955 1,314 9,989
Shares redeemed .................................... (36,423) (293,493) (1,716) (13,385)
--------- ------------ --------- ------------
Net increase ................................... 1,174,331 $ 9,616,331 38,056 $ 278,094
========= ============ ========= ============
CLASS B CLASS B
--------------------------- --------------------------
Shares sold ........................................ 37,151 $ 299,078 37,131 $ 272,522
Shares issued upon reinvestment of dividends ....... 535 4,218 1,256 8,313
Shares redeemed .................................... (5,937) (47,942) (29,502) (206,790)
--------- ------------ --------- ------------
Net increase ................................... 31,749 $ 255,354 8,885 $ 74,045
========= ============ ========= ============
CLASS C CLASS C
--------------------------- --------------------------
Shares sold ........................................ 1,213,943 $ 9,827,615 42,520 $ 293,831
Shares issued upon reinvestment of dividends ....... 12,114 97,528 3,146 23,475
Shares redeemed .................................... (19,910) (159,171) (7,170) (55,026)
--------- ------------ --------- ------------
Net increase ................................... 1,206,147 $ 9,765,972 38,496 $ 262,280
========= ============ ========= ============
13
THE GABELLI UTILITIES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
7. TRANSACTIONS WITH AFFILIATES. During the year ended December 31, 2004, the
Fund paid brokerage commissions of $87,765 to Gabelli & Company. Gabelli &
Company has informed the Fund that it received commissions (sales charges and
underwriting fees) from investors on sales of Fund shares in the amount of
$70,275.
The cost of calculating the Fund's net asset value per share is a Fund expense
pursuant to the Advisory Agreement between the Fund and the Adviser. During the
year ended December 31, 2004, the Fund reimbursed the Adviser $29,000 in
connection with the cost of computing the Fund's net asset value, which is
included in miscellaneous expenses in the Statement of Operations.
8. CONCENTRATION RISKS. 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 net asset value and a magnified effect in its
total return.
9. OTHER MATTERS. The Adviser and/or affiliates have received subpoenas from the
Attorney General of the State of New York and the SEC requesting information on
mutual fund shares trading practices. Gabelli Asset Management Inc., the
Adviser's parent company, is responding to these requests. The Fund does not
believe that these matters will have a material adverse effect on the Fund's
financial position or the results of its operations.
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 and expects the risk of loss to be remote.
14
THE GABELLI UTILITIES FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
INCOME
FROM INVESTMENT OPERATIONS DISTRIBUTIONS
---------------------------------------------------- ------------------------------------------------
Net
Net Asset Realized and Total Net
Period Value, Net Unrealized from Net Realized
Ended Beginning Investment Gain/(Loss)on Investment Investment Gain on Return of Total
December 31 of Period Income(a) Investments Operations Income Investments Capital Distributions
- ------------ ---------- ---------- ------------- ---------- ---------- ----------- --------- -------------
CLASS AAA
2004 $8.03 $0.15 $1.02 $1.17 $(0.13) $(0.02) $(0.69) $(0.84)
2003 6.96 0.14 1.77 1.91 (0.14) -- (0.70) (0.84)
2002 9.13 0.22 (1.55) (1.33) (0.22) -- (0.62) (0.84)
2001 11.72 0.11 (1.86) (1.75) (0.11) -- (0.73) (0.84)
2000 10.89 0.89 0.83 1.72 (0.89) -- -- (0.89)
CLASS A+
2004 $8.06 $0.19 $0.97 $1.16 $(0.11) $(0.01) $(0.72) $(0.84)
2003 6.96 0.13 1.81 1.94 (0.13) -- (0.71) (0.84)
CLASS B+
2004 $7.96 $0.08 $1.00 $1.08 $(0.08) $(0.01) $(0.75) $(0.84)
2003 6.96 0.12 1.72 1.84 (0.12) -- (0.72) (0.84)
CLASS C+
2004 $7.98 $0.11 $0.98 $1.09 $(0.06) $(0.01) $(0.77) $(0.84)
2003 6.96 0.08 1.78 1.86 (0.08) -- (0.76) (0.84)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
---------------------------------------------------------------------
Net Asset Net Assets Operating Operating
Period Value, End of Net Expenses Expenses Portfolio
Ended Redemption End of Total Period Investment Net of Before Turnover
December 31 Fees(a) Period Return++ (in 000's) Income Reimbursements Reimbursements(c) Rate
- ------------ ---------- ------ ----------- ---------- ---------- -------------- ----------------- ---------
CLASS AAA
2004 $0.00(b) $ 8.36 15.6% $81,471 1.85% 1.82% 1.82% 17%
2003 -- 8.03 29.5 43,526 1.92 2.00 2.00 39
2002 -- 6.96 (15.1) 13,215 2.91 2.00 2.64 41
2001 -- 9.13 (15.4) 9,727 1.02 2.00 2.49 110
2000 -- 11.72 16.4 13,281 8.31 2.00 2.88 215
CLASS A+
2004 $0.00(b) $ 8.38 15.4% $10,165 2.30% 1.82% 1.82% 17%
2003 -- 8.06 29.9 307 1.67 2.00 2.00 39
CLASS B+
2004 $0.00(b) $ 8.20 14.5% $ 333 1.08% 2.57% 2.57% 17%
2003 -- 7.96 28.4 71 1.72 2.75 2.75 39
CLASS C+
2004 $0.00(b) $ 8.23 14.6% $10,245 1.33% 2.57% 2.57% 17%
2003 -- 7.98 28.7 307 1.11 2.75 2.75 39
- ----------
+ Class A, B and C Shares commenced operations on December 31, 2002.
++ 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 dividends and does not reflect applicable sales
charges. Total return for less than one year is not annualized.
(a) Per share data is calculated using the average shares outstanding method.
(b) Amount represents less than $0.005 per share.
(c) Under an expense deferral agreement with the Adviser, the Fund repaid the
Adviser $66,719 during 2004, representing previously reimbursed expenses
from the Adviser. During the fiscal year ended December 31, 2004, had such
payment not been made, the expense ratio would have been 1.71%, 1.71%,
2.46% and 2.46% for Class AAA, Class A, Class B and Class C, respectively.
See accompanying notes to financial statements.
15
THE GABELLI UTILITIES FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of
The Gabelli Utilities Fund
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of The Gabelli Utilities Fund (the "Fund") as of
December 31, 2004, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Fund's
internal control over financial reporting. Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements and financial
highlights, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
Our procedures included confirmation of securities owned as of December 31,
2004, by correspondence with the Fund's custodian and brokers. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Gabelli Utilities Fund at December 31, 2004, 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 the financial highlights for each of the periods
indicated therein, in conformity with U.S. generally accepted accounting
principles.
/s/ ERNST & YOUNG LLP
New York, New York
February 11, 2005
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2004 TAX NOTICE TO SHAREHOLDERS (Unaudited)
For the fiscal year ended December 31, 2004, the Fund paid to shareholders,
ordinary income dividends (comprised of net investment income) totaling $0.1471,
$0.1235, $0.0872 and $0.0697 per share for Class AAA, Class A, Class B and Class
C respectively. For the fiscal year ended December 31, 2004, 100% of the
ordinary income dividend qualifies for the dividend received deduction available
to corporations, and 100% of the ordinary income distribution was qualifying
dividend income. Additionally, 81% of the distributions paid in 2004 were a
nontaxable return of capital which should be deducted from the cost basis of the
securities held as of the payment date.
U.S. GOVERNMENT INCOME:
The percentage of the ordinary income dividend paid by the Fund during fiscal
year 2004 which was derived from U.S. Treasury securities was 5.36%. 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 Gabelli Utilities Fund did not meet this strict requirement in 2004. Due to
the diversity in state and local tax law, it is recommended that you consult
your personal tax advisor as to the applicability of the information provided to
your specific situation.
- --------------------------------------------------------------------------------
16
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 Gabelli Utilities Fund 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.
TERM OF NUMBER OF
NAME, POSITION(S) OFFICE AND FUNDS IN FUND
ADDRESS 1 LENGTH OF COMPLEX OVERSEEN PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIPS
AND AGE TIME SERVED 2 BY TRUSTEE DURING PAST FIVE YEARS HELD BY TRUSTEE 4
- -------------- ------------ ---------------- ----------------------- ------------------
INTERESTED TRUSTEES3:
- -------------------
MARIO J. GABELLI Since 1999 24 Chairman of the Board, Chief Executive Director of Morgan Group
Trustee Officer of Gabelli Asset Management Inc. and Holdings, Inc.
Age: 62 Chief Investment Officer of Gabelli Funds, LLC (holding company)
and GAMCO Investors, Inc.; Vice Chairman and
Chief Executive Officer of Lynch Interactive
Corporation (multimedia and services)
KARL OTTO POHL Since 1999 34 Member of the Shareholder Committee of Director of Gabelli
Trustee Sal Oppenheim Jr. & Cie (private investment Asset Management Inc.
Age: 75 bank); Former President of the Deutsche (investment management);
Bundesbank and Chairman of its Central Bank Chairman, Incentive
Council (1980-1991) Capital and Incentive
Asset Management
(Zurich); Director at
Sal Oppenheim Jr. & Cie,
Zurich
NON-INTERESTED TRUSTEES:
- -----------------------
ANTHONY J. COLAVITA Since 1999 36 President and Attorney at Law in the law firm --
Trustee of Anthony J. Colavita, P.C.
Age: 69
VINCENT D. ENRIGHT Since 1999 13 Former Senior Vice President and Chief Director of Aphton
Trustee Financial Officer of KeySpan Energy Corporation
Age: 61 Corporation (biopharmaceutical
company)
MARY E. HAUCK Since 2000 6 Retired Senior Manager of the Gabelli O'Connor --
Trustee Fixed Income Mutual Funds Management Company
Age: 62
WERNER J. ROEDER, MD Since 1999 26 Medical Director of Lawrence Hospital and --
Trustee practicing private physician
Age: 64
17
THE GABELLI UTILITIES FUND
ADDITIONAL FUND INFORMATION (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TERM OF NUMBER OF
NAME, POSITION(S) OFFICE AND FUNDS IN FUND
ADDRESS 1 LENGTH OF COMPLEX OVERSEEN PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIPS
AND AGE TIME SERVED 2 BY TRUSTEE DURING PAST FIVE YEARS HELD BY TRUSTEE 4
- -------------- ------------ ---------------- ----------------------- ------------------
OFFICERS:
BRUCE N. ALPERT Since 2003 -- Executive Vice President and Chief Operating --
President and Treasurer Officer of Gabelli Funds, LLC since 1988 and
Age: 53 an officer of all mutual funds advised by
Gabelli Funds, LLC and its affiliates. Director
and President of Gabelli Advisers, Inc.
JAMES E. MCKEE Since 1999 -- Vice President, General Counsel and Secretary --
Secretary of Gabelli Asset Management Inc. since 1999 and
Age: 41 GAMCO Investors, Inc. since 1993; Secretary of
all mutual funds advised by Gabelli Advisers, Inc.
and Gabelli Funds, LLC
PETER GOLDSTEIN Since 2004 -- Director of Regulatory Affairs at Gabelli Asset --
Chief Compliance Officer Management Inc. since February 2004; Vice President
Age: 51 of Goldman Sachs Asset Management from November
2000 through January 2004; Deputy General
Counsel at Gabelli Asset Management Inc. from
February 1998 through November 2000
- ----------
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 "Interested person" of the Fund as defined in the Investment Company Act
of 1940. Messrs. Gabelli and Pohl are each considered an "interested
person" because of their affiliation with Gabelli Funds, LLC which acts as
the Fund's investment adviser.
4 This column includes only directorships of companies required to report to
the SEC under the Securities Exchange Act of 1934 (i.e. public companies)
or other investment companies registered under the 1940 Act.
18
THE GABELLI UTILITIES FUND
One Corporate Center
Rye, New York 10580-1422
800-GABELLI
800-422-3554
FAX: 914-921-5118
WEBSITE: WWW.GABELLI.COM
E-MAIL: INFO@GABELLI.COM
Net Asset Value available daily by calling
800-GABELLI after 6:00 P.M.
BOARD OF TRUSTEES
Mario J. Gabelli, CFA Mary E. Hauck
CHAIRMAN AND CHIEF (RETIRED) SENIOR PORTFOLIO MANAGER
INVESTMENT OFFICER GABELLI-O'CONNOR FIXED INCOME
GABELLI ASSET MANAGEMENT INC. MUTUAL FUND MANAGEMENT CO.
Anthony J. Colavita Karl Otto Pohl
ATTORNEY-AT-LAW FORMER PRESIDENT
ANTHONY J. COLAVITA, P.C. DEUTSCHE BUNDESBANK
Vincent D. Enright Werner J. Roeder, MD
FORMER SENIOR VICE PRESIDENT MEDICAL DIRECTOR
AND CHIEF FINANCIAL OFFICER LAWRENCE HOSPITAL
KEYSPAN ENERGY CORP.
OFFICERS
Bruce N. Alpert James E. McKee
PRESIDENT AND TREASURER SECRETARY
Peter Goldstein
CHIEF COMPLIANCE OFFICER
DISTRIBUTOR
Gabelli & Company, Inc.
CUSTODIAN, TRANSFER AGENT AND DIVIDEND AGENT
State Street Bank and Trust Company
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.
- --------------------------------------------------------------------------------
GAB470Q404SR
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 $20,300 in
2004 and $19,000 in 2003.
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 in 2004 and $0 in 2003.
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 $3,600 in 2004 and $3,400
in 2003.
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 $0
in 2004 and $0 in 2003.
(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 auditors to the registrant and (ii) all permissible
non-audit services to be provided by the independent auditors 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 auditors' 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 aggregate amount of all such permissible non-audit services
provided to the registrant, Gabelli and any Covered Services Provider
constitutes not more than 5% of the total amount of revenues paid by
the registrant to its independent auditors during the fiscal year in
which the permissible non-audit services are provided; (ii) the
permissible non-audit services were not recognized by the registrant
at the time of the engagement to be non-audit services; and (iii)
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) N/A
(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 zero percent (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 $68,600 in 2004 and $62,400 in 2003.
(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. SCHEDULE OF INVESTMENTS
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.
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 7(d)(2)(ii)(G) 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 second fiscal
quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Code of ethics, that is the subject of disclosure required by Item 2,
filed as exhibit (a)(1) to the Registrant's Form N-CSR, filed on
March 10, 2004 (Accession No. 0000935069-04-000463).
(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.
(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 March 9, 2005
----------------------------------------------------------------------------
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
& Principal Financial Officer
Date March 9, 2005
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.