UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-04700
The Gabelli Equity Trust Inc.
(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: September 30, 2011
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
| Item 1. | Schedule of Investments. |
The Schedule(s) of Investments is attached herewith.
The Gabelli Equity Trust Inc.
Third Quarter Report
September 30, 2011
|
Mario J. Gabelli, CFA |
Zahid Siddique
To Our Shareholders,
For the quarter ended September 30, 2011, the net asset value (“NAV”) total return of The Gabelli Equity Trust Inc. (the “Fund”) was (23.0)%, compared with the total returns of (13.9)% and (11.5)% for the Standard & Poor’s (“S&P”) 500 Index and the Dow Jones Industrial Average, respectively. The total return for the Fund’s publicly traded shares was (19.8)%. On September 30, 2011, the Fund’s NAV per share was $4.61, while the price of the publicly traded shares closed at $4.75 on the New York Stock Exchange (“NYSE”).
Enclosed is the schedule of investments as of September 30, 2011.
Comparative Results
| Average Annual Returns through September 30, 2011 (a) (Unaudited) |
||||||||||||||||||||||||||||
| Quarter |
Year to |
1 Year |
5 Year |
10 Year |
20 Year |
Since |
||||||||||||||||||||||
| Gabelli Equity Trust |
||||||||||||||||||||||||||||
| NAV Total Return (b) |
(22.96 | )% | (15.24 | )% | (3.15 | )% | 0.06 | % | 6.31 | % | 8.85 | % | 9.54 | % | ||||||||||||||
| Investment Total Return (c) |
(19.79 | ) | (9.76 | ) | 4.70 | 0.43 | 4.34 | 8.89 | 9.31 | |||||||||||||||||||
| S&P 500 Index |
(13.87 | ) | (8.68 | ) | 1.14 | (1.18 | ) | 2.82 | 7.64 | 8.62 | (d) | |||||||||||||||||
| Dow Jones Industrial Average |
(11.49 | ) | (3.93 | ) | 3.78 | 1.36 | 4.67 | 9.18 | 10.07 | (d) | ||||||||||||||||||
| Nasdaq Composite Index |
(12.70 | ) | (8.32 | ) | 2.99 | 2.30 | 5.67 | 7.90 | 7.61 | (d) | ||||||||||||||||||
| (a) | Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are sold, they may be worth more or less than their original cost. 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. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The Dow Jones Industrial Average is an unmanaged index of 30 large capitalization stocks. The S&P 500 and the Nasdaq Composite Indices are unmanaged indicators of stock market performance. Dividends are considered reinvested except for the Nasdaq Composite Index. You cannot invest directly in an index. |
| (b) | Total returns and average annual returns reflect changes in the NAV per share, reinvestment of distributions at NAV on the ex-dividend date, adjustments for rights offerings, spin-offs, and taxes paid on undistributed long-term capital gains and are net of expenses. Since inception return is based on an initial NAV of $9.34. |
| (c) | Total returns and average annual returns reflect changes in closing market values on the NYSE, reinvestment of distributions, and adjustments for rights offerings, spin-offs, and taxes paid on undistributed long-term capital gains. Since inception return is based on an initial offering price of $10.00. |
| (d) | From August 31, 1986, the date closest to the Fund’s inception for which data is available. |
THE GABELLI EQUITY TRUST INC.
PORTFOLIO CHANGES
Quarter Ended September 30, 2011 (Unaudited)
| Shares | Ownership at September 30, 2011 |
|||||||
| NET PURCHASES |
||||||||
| Common Stocks |
||||||||
| Agnico-Eagle Mines Ltd. |
3,000 | 18,000 | ||||||
| AMC Networks Inc., Cl. A (a) |
292,000 | 292,000 | ||||||
| America Movil SAB de CV, Cl. L, ADR (b) |
74,000 | 148,000 | ||||||
| Artio Global Investors Inc. |
2,000 | 62,000 | ||||||
| Becton, Dickinson and Co. |
4,000 | 14,000 | ||||||
| Boston Scientific Corp. |
125,000 | 335,000 | ||||||
| Brown-Forman Corp., Cl. A |
3,000 | 35,000 | ||||||
| Campbell Soup Co. |
5,000 | 75,000 | ||||||
| Clear Channel Outdoor Holdings Inc., Cl. A |
21,000 | 181,000 | ||||||
| CONSOL Energy Inc. |
9,000 | 39,000 | ||||||
| DIRECTV, Cl. A |
9,000 | 524,000 | ||||||
| Expedia Inc. |
60,000 | 170,000 | ||||||
| Gerber Scientific Inc., Escrow (c) |
60,000 | 60,000 | ||||||
| Heineken NV |
7,000 | 46,000 | ||||||
| Huntsman Corp. |
50,000 | 50,000 | ||||||
| Hyatt Hotels Corp., Cl. A |
8,000 | 8,000 | ||||||
| Liberty Media Corp. – Liberty Capital, Cl. A (d) |
68,000 | 68,000 | ||||||
| Liberty Media Corp. – Liberty Starz, Cl. A (e) |
19,000 | 19,000 | ||||||
| Marathon Petroleum Corp. (f) |
6,000 | 6,000 | ||||||
| News Corp., Cl. B |
335,000 | 355,000 | ||||||
| Ralcorp Holdings Inc. |
2,000 | 66,000 | ||||||
| Rayonier Inc. (g) |
11,000 | 34,000 | ||||||
| RPC Inc. |
50,000 | 50,000 | ||||||
| Smiths Group plc |
20,000 | 70,000 | ||||||
| The Bank of New York Mellon Corp. |
15,000 | 195,000 | ||||||
| The Boeing Co. |
2,000 | 164,000 | ||||||
| The Clorox Co. |
20,000 | 29,000 | ||||||
| The Greenbrier Companies Inc. |
25,000 | 25,000 | ||||||
| Tim Participacoes SA, ADR (h) |
54,075 | 54,075 | ||||||
| Walter Energy Inc. |
15,000 | 15,000 | ||||||
| NET SALES |
||||||||
| Common Stocks |
||||||||
| Abbott Laboratories |
(1,000 | ) | 11,000 | |||||
| ACCO Brands Corp. |
(6,000 | ) | — | |||||
| AGL Resources Inc. |
(3,500 | ) | — | |||||
| American Express Co. |
(8,000 | ) | 510,000 | |||||
| AMR Corp. |
(6,000 | ) | 443,000 | |||||
| AOL Inc. |
(6,000 | ) | 30,000 | |||||
| Shares | Ownership at September 30, 2011 |
|||||||
| Archer-Daniels-Midland Co. |
(3,000 | ) | 257,000 | |||||
| Argo Group International Holdings Ltd. |
(1,452 | ) | 18,000 | |||||
| Avon Products Inc. |
(4,000 | ) | 61,000 | |||||
| Barrick Gold Corp. |
(1,000 | ) | 64,000 | |||||
| Bell Aliant Inc. |
(2,500 | ) | — | |||||
| BJ's Wholesale Club Inc. |
(78,000 | ) | — | |||||
| BorgWarner Inc. |
(6,000 | ) | 79,000 | |||||
| BP plc, ADR |
(12,000 | ) | 103,000 | |||||
| Brasil Telecom SA, ADR |
(1,000 | ) | 43,000 | |||||
| Brasil Telecom SA, Cl. C, ADR |
(1,801 | ) | 14,000 | |||||
| Cablevision Systems Corp., Cl. A (a) |
(13,000 | ) | 1,155,000 | |||||
| Cephalon Inc. |
(17,000 | ) | — | |||||
| Cimarex Energy Co. |
(3,000 | ) | 7,000 | |||||
| Cincinnati Bell Inc. |
(10,000 | ) | 670,000 | |||||
| Cliffs Natural Resources Inc |
(8,000 | ) | — | |||||
| CMS Energy Corp. |
(3,000 | ) | 32,000 | |||||
| Coldwater Creek Inc. |
(9,000 | ) | 27,000 | |||||
| Commerzbank AG, ADR |
(64,000 | ) | 15,000 | |||||
| ConocoPhillips |
(3,000 | ) | 212,000 | |||||
| Constellation Brands Inc., Cl. A |
(14,000 | ) | 68,000 | |||||
| Constellation Energy Group Inc. |
(29,000 | ) | 31,000 | |||||
| Corus Entertainment Inc., Cl. B, OTC |
(2,000 | ) | 23,334 | |||||
| Crane Co. |
(9,000 | ) | 220,000 | |||||
| Curtiss-Wright Corp. |
(2,000 | ) | 326,000 | |||||
| Dean Foods Co. |
(5,000 | ) | 90,000 | |||||
| Deere & Co. |
(500 | ) | 383,000 | |||||
| Deutsche Bank AG |
(23,000 | ) | 82,000 | |||||
| Deutsche Telekom AG, ADR |
(10,000 | ) | 130,000 | |||||
| Devon Energy Corp. |
(8,000 | ) | 14,000 | |||||
| Diamond Offshore Drilling Inc. |
(3,000 | ) | 5,000 | |||||
| DISH Network Corp., Cl. A |
(2,500 | ) | 100,000 | |||||
| DPL Inc. |
(40,000 | ) | 20,000 | |||||
| Eastman Kodak Co. |
(40,000 | ) | 80,000 | |||||
| El Paso Electric Co. |
(1,000 | ) | 244,000 | |||||
| Ferro Corp. |
(10,000 | ) | 440,000 | |||||
| Fomento Economico Mexicano SAB de CV, ADR |
(1,000 | ) | 84,000 | |||||
| Freeport-McMoRan Copper & Gold Inc. |
(2,000 | ) | 18,000 | |||||
| GATX Corp. |
(7,000 | ) | 166,000 | |||||
| GenCorp Inc. |
(5,000 | ) | 280,000 | |||||
| General Electric Co. |
(10,000 | ) | 180,000 | |||||
See accompanying notes to schedule of investments.
2
THE GABELLI EQUITY TRUST INC.
PORTFOLIO CHANGES (Continued)
Quarter Ended September 30, 2011 (Unaudited)
| Shares | Ownership at September 30, 2011 |
|||||||
| NET SALES (Continued) |
||||||||
| Common Stocks (Continued) |
||||||||
| Gerber Scientific Inc. (c) |
(60,000 | ) | — | |||||
| Givaudan SA |
(166 | ) | 2,100 | |||||
| Gray Television Inc. |
(1,000 | ) | 34,000 | |||||
| Great Plains Energy Inc. |
(5,000 | ) | 10,000 | |||||
| Greif Inc., Cl. A |
(2,000 | ) | 170,000 | |||||
| Grupo Bimbo SAB de CV, Cl. A |
(10,000 | ) | 2,340,000 | |||||
| Grupo Televisa SA, ADR |
(5,000 | ) | 645,000 | |||||
| Grupo TMM SA, Cl. A, ADR |
(3,000 | ) | — | |||||
| Hertz Global Holdings Inc. |
(1,000 | ) | — | |||||
| Honeywell International Inc. |
(1,000 | ) | 414,000 | |||||
| Huntington Ingalls Industries Inc. |
(1,999 | ) | 4,000 | |||||
| IAC/InterActiveCorp. |
(5,000 | ) | 75,000 | |||||
| IDEX Corp. |
(3,500 | ) | 296,500 | |||||
| Il Sole 24 Ore SpA |
(270,000 | ) | 280,000 | |||||
| Intel Corp. |
(3,000 | ) | 97,000 | |||||
| Interactive Brokers Group Inc., Cl. A |
(2,000 | ) | 14,000 | |||||
| ITO EN Ltd., Preference |
(8,000 | ) | — | |||||
| Janus Capital Group Inc. |
(3,000 | ) | 182,000 | |||||
| Johnson & Johnson |
(2,000 | ) | 40,000 | |||||
| Ladbrokes plc |
(50,000 | ) | 1,450,087 | |||||
| Liberty Global Inc., Cl. A |
(3,000 | ) | 92,000 | |||||
| Liberty Global Inc., Cl. C |
(3,000 | ) | 92,000 | |||||
| Liberty Interactive Corp., Cl. A |
(12,000 | ) | 173,000 | |||||
| Liberty Media Corp. – Capital, Cl. A (d) |
(74,000 | ) | — | |||||
| Liberty Media Corp. – Starz, Cl. A (e) |
(22,000 | ) | — | |||||
| Life Technologies Corp. |
(3,000 | ) | 70,000 | |||||
| LIN TV Corp., Cl. A |
(6,000 | ) | 27,000 | |||||
| Lockheed Martin Corp. |
(1,000 | ) | 3,000 | |||||
| Lufkin Industries Inc. |
(500 | ) | 194,500 | |||||
| Marsh & McLennan Companies Inc. |
(7,000 | ) | 148,000 | |||||
| MasterCard Inc., Cl. A |
(1,500 | ) | 39,000 | |||||
| Mattel Inc. |
(1,000 | ) | 7,000 | |||||
| Media General Inc., Cl. A |
(15,000 | ) | 180,000 | |||||
| MEIJI Holdings Co. Ltd. |
(1,000 | ) | — | |||||
| MGM China Holdings Ltd. |
(5,000 | ) | 100,000 | |||||
| MGM Resorts International |
(9,000 | ) | 10,000 | |||||
| Millicom International Cellular SA, SDR |
(3,000 | ) | 7,000 | |||||
| Modine Manufacturing Co. |
(11,100 | ) | 275,000 | |||||
| Monsanto Co. |
(1,000 | ) | 20,000 | |||||
| Shares | Ownership at September 30, 2011 |
|||||||
| Monster Worldwide Inc. |
(3,000 | ) | 27,000 | |||||
| Moody's Corp. |
(1,000 | ) | 11,000 | |||||
| National Fuel Gas Co. |
(2,000 | ) | 18,000 | |||||
| National Presto Industries Inc. |
(3,000 | ) | 8,500 | |||||
| New Hope Corp. Ltd. |
(2,000 | ) | 50,000 | |||||
| Newmont Mining Corp. |
(7,600 | ) | 164,000 | |||||
| News Corp., Cl. A |
(420,000 | ) | 780,000 | |||||
| Niko Resources Ltd., Toronto |
(1,000 | ) | — | |||||
| NiSource Inc. |
(5,000 | ) | 5,000 | |||||
| Nobility Homes Inc. |
(500 | ) | 9,000 | |||||
| Noble Corp. |
(4,000 | ) | 16,000 | |||||
| Northeast Utilities |
(23,000 | ) | 107,000 | |||||
| Northrop Grumman Corp. |
(6,000 | ) | 30,000 | |||||
| O'Reilly Automotive Inc. |
(4,000 | ) | 98,000 | |||||
| Precision Castparts Corp. |
(500 | ) | 86,500 | |||||
| Regal Entertainment Group, Cl. A |
(2,000 | ) | 8,000 | |||||
| Rockwell Automation Inc. |
(1,000 | ) | 27,000 | |||||
| Rollins Inc. |
(13,000 | ) | 1,372,000 | |||||
| Rolls-Royce Holdings plc, Cl. C (i) |
(115,200,000 | ) | — | |||||
| Sensient Technologies Corp. |
(3,000 | ) | 232,000 | |||||
| Skyline Corp. |
(3,500 | ) | 26,500 | |||||
| Sprint Nextel Corp. |
(30,000 | ) | 950,000 | |||||
| Suncor Energy Inc. |
(13,000 | ) | 22,000 | |||||
| Swedish Match AB |
(8,000 | ) | 857,000 | |||||
| The Central Europe and Russia Fund Inc. |
(1,500 | ) | 99,500 | |||||
| The Hershey Co. |
(18,000 | ) | — | |||||
| The Madison Square Garden Co., Cl. A |
(1,000 | ) | 381,000 | |||||
| The New Germany Fund Inc. |
(957 | ) | 70,000 | |||||
| The St. Joe Co. |
(60,000 | ) | 125,000 | |||||
| Thomas & Betts Corp. |
(4,400 | ) | 259,000 | |||||
| Tim Participacoes SA, ADR (h) |
(32,165 | ) | — | |||||
| Time Warner Inc. |
(5,000 | ) | 235,000 | |||||
| Tokyo Broadcasting System Holdings Inc. |
(25,000 | ) | 75,000 | |||||
| Transocean Ltd. |
(1,000 | ) | 19,000 | |||||
| Tyco International Ltd. |
(5,000 | ) | 195,000 | |||||
| Universal Entertainment Corp. |
(1,000 | ) | 108,000 | |||||
| Viacom Inc., Cl. A |
(3,000 | ) | 295,000 | |||||
| Walgreen Co. |
(6,000 | ) | 59,000 | |||||
| Wal-Mart Stores Inc. |
(1,000 | ) | 39,000 | |||||
| Waste Management Inc. |
(6,000 | ) | 181,000 | |||||
| Watts Water Technologies Inc., Cl. A |
(1,000 | ) | 163,000 | |||||
See accompanying notes to schedule of investments.
3
THE GABELLI EQUITY TRUST INC.
PORTFOLIO CHANGES (Continued)
Quarter Ended September 30, 2011 (Unaudited)
| Shares | Ownership at September 30, 2011 |
|||||||
| NET SALES (Continued) |
||||||||
| Common Stocks (Continued) |
||||||||
| Wells Fargo & Co. |
(5,000 | ) | 270,000 | |||||
| Westar Energy Inc. |
(10,000 | ) | 220,000 | |||||
| William Demant Holding A/S |
(1,000 | ) | 62,000 | |||||
| Yahoo! Inc. |
(4,000 | ) | 336,000 | |||||
| Yakult Honsha Co. Ltd. |
(15,000 | ) | 365,000 | |||||
| (a) | Spin-off – 1 share of AMC Networks Inc., Cl. A for every 4 shares of Cablevision System Corp., Cl. A held. 13,000 shares of Cablevision Systems Corp., Cl. A were sold after the spin-off. |
| (b) | Stock Split – 2 shares for every 1 share held. |
| (c) | Merger – 1 Escrow share plus $11 cash for every 1 share of Gerber Scientific Inc. held. |
| (d) | Name change from Liberty Media Corp. – Capital, Cl. A. 6,000 shares were sold prior to the name change. |
| (e) | Name change from Liberty Media Corp. – Starz, Cl. A. 3,000 shares were sold prior to the name change. |
| (f) | Spin-off – 0.5 shares of Marathon Petroleum Corp. for every 1 share of Marathon Oil Corp. held. |
| (g) | Stock Split – 3 new shares for every 2 shares held. 500 shares were sold after the split. |
| (h) | Exchange – 1.6812 shares of Tim Participacoes SA, ADR (88706P205) for every 1 share of Tim Participacoes SA, ADR (88706P106) held. |
| (i) | Tender Offer – £0.001 for every 1 share held. |
See accompanying notes to schedule of investments.
4
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS
September 30, 2011 (Unaudited)
See accompanying notes to schedule of investments.
5
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2011 (Unaudited)
See accompanying notes to schedule of investments.
6
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2011 (Unaudited)
See accompanying notes to schedule of investments.
7
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2011 (Unaudited)
See accompanying notes to schedule of investments.
8
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2011 (Unaudited)
See accompanying notes to schedule of investments.
9
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2011 (Unaudited)
See accompanying notes to schedule of investments.
10
THE GABELLI EQUITY TRUST INC.
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)
The Fund’s schedule of investments is prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), which may require the use of management estimates and assumptions. 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 schedule of investments.
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 Directors (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 instruments with remaining maturities of sixty days or less that are not credit impaired 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 fair valued as determined by the Board. Debt instruments having a maturity greater than sixty days 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. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. 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.
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 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.
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 Fund’s determinations as to the fair value of investments). |
11
THE GABELLI EQUITY TRUST INC.
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
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 and other financial instruments by inputs used to value the Fund’s investments as of September 30, 2011 is as follows:
| Valuation Inputs | ||||||||||||||||
| Level 1 Quoted Prices |
Level 2 Other Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Total Market Value at 9/30/11 |
|||||||||||||
| INVESTMENTS IN SECURITIES: |
|
|||||||||||||||
| ASSETS (Market Value): |
|
|||||||||||||||
| Common Stocks: |
|
|||||||||||||||
| Energy and Utilities |
$ | 85,539,230 | $ | 9,000 | $ | 0 | $ | 85,548,230 | ||||||||
| Equipment and Supplies |
62,562,449 | — | 600 | 62,563,049 | ||||||||||||
| Entertainment |
61,351,308 | — | 116,486 | 61,467,794 | ||||||||||||
| Telecommunications |
49,717,279 | 15,596 | — | 49,732,875 | ||||||||||||
| Other Industries (a) |
883,932,098 | — | — | 883,932,098 | ||||||||||||
| Total Common Stocks |
1,143,102,364 | 24,596 | 117,086 | 1,143,244,046 | ||||||||||||
| Convertible Preferred Stocks (a) |
898,763 | — | — | 898,763 | ||||||||||||
| Warrants (a) |
16,560 | — | — | 16,560 | ||||||||||||
| Convertible Corporate Bonds (a) |
— | 1,855,000 | — | 1,855,000 | ||||||||||||
| Corporate Bonds (a) |
505,970 | — | 0 | 505,970 | ||||||||||||
| TOTAL INVESTMENTS IN SECURITIES – ASSETS |
$ | 1,144,523,657 | $ | 1,879,596 | $ | 117,086 | $ | 1,146,520,339 | ||||||||
| (a) | Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings. |
The Fund did not have significant transfers between Level 1 and Level 2 during the period ended September 30, 2011.
12
THE GABELLI EQUITY TRUST INC.
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
The following table reconciles Level 3 investments for which significant unobservable inputs were used to determine fair value:
| Balance as of |
Accrued discounts/ (premiums) |
Realized (loss) |
Change in unrealized appreciation/ depreciation |
Purchases | Sales | Transfers into Level 3† |
Transfers out of Level 3† |
Balance as of |
Net change
in depreciation |
|||||||||||||||||||||||||||||||
| INVESTMENTS IN SECURITIES: |
||||||||||||||||||||||||||||||||||||||||
| ASSETS (Market Value): |
||||||||||||||||||||||||||||||||||||||||
| Common Stocks: |
||||||||||||||||||||||||||||||||||||||||
| Energy and Utilities |
$ | 0 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0 | $ | — | ||||||||||||||||||||
| Equipment and Supplies |
— | — | — | 600 | 0 | — | — | — | 600 | 600 | ||||||||||||||||||||||||||||||
| Entertainment |
91,191 | — | — | 25,295 | — | — | — | — | 116,486 | 25,295 | ||||||||||||||||||||||||||||||
| Total Common Stocks |
91,191 | — | — | 25,895 | 0 | — | — | — | 117,086 | 25,895 | ||||||||||||||||||||||||||||||
| Warrants: |
||||||||||||||||||||||||||||||||||||||||
| Energy and Utilities |
85 | — | (36,353 | ) | 36,268 | — | (0 | ) | — | — | — | — | ||||||||||||||||||||||||||||
| Convertible Corporate Bonds |
630,000 | — | — | — | — | — | — | (630,000 | ) | — | — | |||||||||||||||||||||||||||||
| Corporate Bonds |
0 | — | — | — | — | — | — | — | 0 | — | ||||||||||||||||||||||||||||||
| TOTAL INVESTMENTS IN SECURITIES |
$ | 721,276 | $ | — | $ | (36,353 | ) | $ | 62,163 | $ | 0 | $ | (0 | ) | $ | — | $ | (630,000 | ) | $ | 117,086 | $ | 25,895 | |||||||||||||||||
| † | The Fund’s policy is to recognize transfers into and transfers out of Level 3 as of the beginning of the reporting period. |
In May 2011, the FASB issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“IFRS”).” ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 will require reporting entities to disclose the following information for fair value measurements categorized within Level 3 of the fair value hierarchy: quantitative information about the unobservable inputs used in the fair value measurement, the valuation processes used by the reporting entity, and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers into and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. At this time, management is evaluating the implications of ASU 2011-04 and its impact on the financial statements.
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
13
THE GABELLI EQUITY TRUST INC.
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
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.
Restricted and Illiquid Securities. The Fund may invest up to 10% of its net assets in securities for which the markets are illiquid. Illiquid securities include securities the disposition of which is subject to substantial legal or contractual restrictions. The sale of illiquid 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. The Fund held no illiquid securities at September 30, 2011. For the restricted securities the Fund held as of September 30, 2011, refer to the Schedule of Investments.
Derivative Financial Instruments. The Fund may engage in various portfolio investment strategies by investing in a number of derivative financial instruments for the purposes of increasing the income of the Fund, hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase, or hedging against a specific transaction with respect to either the currency in which the transaction is denominated or another currency. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or that, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.
The Fund’s derivative contracts held at September 30, 2011, if any, are not accounted for as hedging instruments under GAAP and are disclosed in the Schedule of Investments together with the related counterparty.
Options. The Fund may purchase or write call or put options on securities or indices for the purpose of achieving additional return or for hedging the value of the Fund’s portfolio. As a writer of put options, the Fund receives a premium at the outset and then bears the risk of unfavorable changes in the price of the financial instrument underlying the option.
14
THE GABELLI EQUITY TRUST INC.
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
The Fund would incur a loss if the price of the underlying financial instrument decreases between the date the option is written and the date on which the option is terminated. The Fund would realize a gain, to the extent of the premium, if the price of the financial instrument increases between those dates. If a written call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether there has been a realized gain or loss. If a written put option is exercised, the premium reduces the cost basis of the security.
As a purchaser of put options, the Fund pays a premium for the right to sell to the seller of the put option the underlying security at a specified price. The seller of the put has the obligation to purchase the underlying security upon exercise at the exercise price. If the price of the underlying security declines, the Fund would realize a gain upon sale or exercise. If the price of the underlying security increases or stays the same, the Fund would realize a loss upon sale or at the expiration date, but only to the extent of the premium paid.
In the case of call options, these exercise prices are referred to as “in-the-money,” “at-the-money,” and “out-of-the-money,” respectively. The Fund may write (a) in-the-money call options when the Adviser expects that the price of the underlying security will remain stable or decline, during the option period, (b) at-the-money call options when the Adviser expects that the price of the underlying security will remain stable, decline or advance moderately during the option period, and (c) out-of-the-money call options when the Adviser expects that the premiums received from writing the call option will be greater than the appreciation in the price of the underlying security above the exercise price. By writing a call option, the Fund limits its opportunity to profit from any increase in the market value of the underlying security above the exercise price of the option. Out-of-the-money, at-the-money, and in-the-money put options (the reverse of call options as to the relation of exercise price to market price) may be utilized in the same market environments that such call options are used in equivalent transactions. At September 30, 2011, the Fund held no investments in options.
Swap Agreements. The Fund may enter into equity contract for difference swap transactions for the purpose of increasing the income of the Fund. The use of swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio security transactions. In an equity contract for difference swap, a set of future cash flows is exchanged between two counterparties. One of these cash flow streams will typically be based on a reference interest rate combined with the performance of a notional value of shares of a stock. The other will be based on the performance of the shares of a stock. Depending on the general state of short-term interest rates and the returns on the Fund’s portfolio securities at the time a swap transaction reaches its scheduled termination date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the replacement will not be as favorable as on the expiring transaction. At September 30, 2011, the Fund held no investments in equity contract for difference swap agreements.
Futures Contracts. The Fund may engage in futures contracts for the purpose of hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase. Upon entering into a futures contract, the Fund is required to deposit with the broker an amount of cash or cash equivalents equal to a certain percentage of the contract amount. This is known as the “initial margin.” Subsequent payments (“variation margin”) are made or received by the Fund each day, depending on the daily fluctuations in the value of the contract, and are included in unrealized appreciation/depreciation on futures contracts. The Fund recognizes a realized gain or loss when the contract is closed.
There are several risks in connection with the use of futures contracts as a hedging instrument. The change in value of futures contracts primarily corresponds with the value of their underlying instruments, which may not correlate with
15
THE GABELLI EQUITY TRUST INC.
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
the change in value of the hedged investments. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market. At September 30, 2011, the Fund held no investments in futures contracts.
Forward Foreign Exchange Contracts. The Fund may engage in forward foreign exchange contracts for the purpose of hedging a specific transaction with respect to either the currency in which the transaction is denominated or another currency as deemed appropriate by the Adviser. Forward foreign exchange contracts are valued at the forward rate and are marked-to-market daily. The change in market value is included in unrealized appreciation/depreciation on investments and foreign currency translations. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate fluctuations in the underlying prices of the Fund’s portfolio securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign exchange contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency increase. At September 30, 2011, the Fund held no investments in forward foreign exchange contracts.
Tax Information. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended.
At December 31, 2010, the Fund had net capital loss carryforwards for federal income tax purposes of $72,413,822 which are available to reduce future required distributions of net capital gains to shareholders. $5,677,952 of the loss carryforward is available through 2016; $53,348,591 is available through 2017; and $13,387,279 is available through 2018.
Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund will be permitted to carryforward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. In addition, these losses must be utilized prior to the losses incurred in pre-enactment taxable years. As a result of the rule, pre-enactment capital loss carryforwards may have an increased likelihood of expiring unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
We have separated the portfolio managers’ commentary from the financial statements and investment portfolios 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 managers’ commentary is unrestricted. The financial statements and investment portfolios are mailed separately from the commentary. Both the commentary and the financial statements, including the portfolios of investments, will be available on our website at www.gabelli.com.
16
AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLANS
Enrollment in the Plan
It is the policy of The Gabelli Equity Trust Inc. (the “Fund”) to automatically reinvest dividends payable to common shareholders. As a “registered” shareholder you automatically become a participant in the Fund’s Automatic Dividend Reinvestment Plan (the “Plan”). The Plan authorizes the Fund to credit shares of common stock to participants upon an income dividend or a capital gains distribution regardless of whether the shares are trading at a discount or a premium to net asset value. All distributions to shareholders whose shares are registered in their own names will be automatically reinvested pursuant to the Plan in additional shares of the Fund. Plan participants may send their stock certificates to Computershare Trust Company, N.A. (“Computershare”) to be held in their dividend reinvestment account. Registered shareholders wishing to receive their distribution in cash must submit this request in writing to:
The Gabelli Equity Trust Inc.
c/o Computershare
P.O. Box 43010
Providence, RI 02940-3010
Shareholders requesting this cash election must include the shareholder’s name and address as they appear on the share certificate. Shareholders with additional questions regarding the Plan or requesting a copy of the terms of the Plan, may contact Computershare at (800) 336-6983.
If your shares are held in the name of a broker, bank, or nominee, you should contact such institution. If such institution is not participating in the Plan, your account will be credited with a cash dividend. In order to participate in the Plan through such institution, it may be necessary for you to have your shares taken out of “street name” and re-registered in your own name. Once registered in your own name your dividends will be automatically reinvested. Certain brokers participate in the Plan. Shareholders holding shares in “street name” at participating institutions will have dividends automatically reinvested. Shareholders wishing a cash dividend at such institution must contact their broker to make this change.
The number of shares of common stock distributed to participants in the Plan in lieu of cash dividends is determined in the following manner. Under the Plan, whenever the market price of the Fund’s common stock is equal to or exceeds net asset value at the time shares are valued for purposes of determining the number of shares equivalent to the cash dividends or capital gains distribution, participants are issued shares of common stock valued at the greater of (i) the net asset value as most recently determined or (ii) 95% of the then current market price of the Fund’s common stock. The valuation date is the dividend or distribution payment date or, if that date is not a New York Stock Exchange (“NYSE”) trading day, the next trading day. If the net asset value of the common stock at the time of valuation exceeds the market price of the common stock, participants will receive shares from the Fund valued at market price. If the Fund should declare a dividend or capital gains distribution payable only in cash, Computershare will buy common stock in the open market, or on the NYSE or elsewhere, for the participants’ accounts, except that Computershare will endeavor to terminate purchases in the open market and cause the Fund to issue shares at net asset value if, following the commencement of such purchases, the market value of the common stock exceeds the then current net asset value.
The automatic reinvestment of dividends and capital gains distributions will not relieve participants of any income tax which may be payable on such distributions. A participant in the Plan will be treated for federal income tax purposes as having received, on a dividend payment date, a dividend or distribution in an amount equal to the cash the participant could have received instead of shares.
Voluntary Cash Purchase Plan
The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders to increase their investment in the Fund. In order to participate in the Voluntary Cash Purchase Plan, shareholders must have their shares registered in their own name.
Participants in the Voluntary Cash Purchase Plan have the option of making additional cash payments to Computershare for investments in the Fund’s shares at the then current market price. Shareholders may send an amount from $250 to $10,000. Computershare will use these funds to purchase shares in the open market on or about the 1st and 15th of each month. Computershare will charge each shareholder who participates $0.75, plus a pro rata share of the brokerage commissions. Brokerage charges for such purchases are expected to be less than the usual brokerage charge for such transactions. It is suggested that any voluntary cash payments be sent to Computershare, P.O. Box 43010, Providence, RI 02940–3010 such that Computershare receives such payments approximately 10 days before the 1st and 15th of the month. Funds not received at least five days before the investment date shall be held for investment until the next purchase date. A payment may be withdrawn without charge if notice is received by Computershare at least 48 hours before such payment is to be invested.
Shareholders wishing to liquidate shares held at Computershare must do so in writing or by telephone. Please submit your request to the above mentioned address or telephone number. Include in your request your name, address, and account number. The cost to liquidate shares is $2.50 per transaction as well as the brokerage commission incurred. Brokerage charges are expected to be less than the usual brokerage charge for such transactions.
For more information regarding the Dividend Reinvestment Plan and Voluntary Cash Purchase Plan, brochures are available by calling (914) 921-5070 or by writing directly to the Fund.
The Fund reserves the right to amend or terminate the Plan as applied to any voluntary cash payments made and any dividend or distribution paid subsequent to written notice of the change sent to the members of the Plan at least 90 days before the record date for such dividend or distribution. The Plan also may be amended or terminated by Computershare on at least 90 days written notice to participants in the Plan.
THE GABELLI EQUITY TRUST INC.
AND YOUR PERSONAL PRIVACY
Who are we?
The Gabelli Equity Trust Inc. (the “Fund”) is a closed-end management investment company registered with the Securities and Exchange Commission under the Investment Company Act of 1940. We are managed by Gabelli Funds, LLC, which is affiliated with GAMCO Investors, Inc. GAMCO Investors, Inc. is a publicly held company that has subsidiaries that provide investment advisory or brokerage services for a variety of clients.
What kind of non-public information do we collect about you if you become a Fund shareholder?
When you purchase shares of the Fund on the New York Stock Exchange, you have the option of registering directly with our transfer agent in order, for example, to participate in our dividend reinvestment plan.
| • | 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. This would include information about the shares that you buy or sell; it may also include information about whether you sell or exercise rights that we have issued from time to time. If we hire someone else to provide services—like a transfer agent—we will also have information about the transactions that you conduct through them. |
What information do we disclose and to whom do we disclose it?
We do not disclose any non-public personal information about our customers or former customers to anyone other than our affiliates, our service providers who need to know such information, and as otherwise permitted by law. If you want to find out what the law permits, you can read the privacy rules adopted by the Securities and Exchange Commission. They are in volume 17 of the Code of Federal Regulations, Part 248. The Commission often posts information about its regulations on its 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.
DIRECTORS AND OFFICERS
THE GABELLI EQUITY TRUST INC.
One Corporate Center, Rye, NY 10580-1422
Directors
Mario J. Gabelli, CFA
Chairman & Chief Executive Officer,
GAMCO Investors, Inc.
Dr. Thomas E. Bratter
President & Founder, John Dewey Academy
Anthony J. Colavita
President,
Anthony J. Colavita, P.C.
James P. Conn
Former Managing Director &
Chief Investment Officer,
Financial Security Assurance Holdings Ltd.
Frank J. Fahrenkopf, Jr.
President & Chief Executive Officer,
American Gaming Association
Arthur V. Ferrara
Former Chairman & Chief Executive Officer,
Guardian Life Insurance Company of America
Anthony R. Pustorino
Certified Public Accountant,
Professor Emeritus, Pace University
Salvatore J. Zizza
Chairman, Zizza & Co., Ltd.
Officers
Bruce N. Alpert
President
Carter W. Austin
Vice President
Peter D. Goldstein
Chief Compliance Officer
Molly A.F. Marion
Vice President & Ombudsman
Agnes Mullady
Treasurer & Secretary
Investment Adviser
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
Custodian
The Bank of New York Mellon
Counsel
Willkie Farr & Gallagher LLP
Transfer Agent and Registrar
Computershare Trust Company, N.A.
Stock Exchange Listing
| Common |
5.875% Preferred |
6.20% Preferred | ||||
| NYSE–Symbol: |
GAB | GAB PrD | GAB PrF | |||
| Shares Outstanding: |
183,582,116 | 2,363,860 | 5,850,402 |
The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading “General Equity Funds,” in Monday’s The Wall Street Journal. It is also listed in Barron’s Mutual Funds/Closed End Funds section under the heading “General Equity Funds.”
The Net Asset Value per share may be obtained each day by calling (914) 921-5070 or visiting www.gabelli.com.
The NASDAQ symbol for the Net Asset Value is “XGABX.”
For general information about the Gabelli Funds, call 800-GABELLI (800-422-3554), fax us at 914-921-5118, visit Gabelli Funds’ Internet homepage at: www.gabelli.com, or e-mail us at: closedend@gabelli.com
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Fund may, from time to time, purchase shares of its common stock in the open market when the Fund’s shares are trading at a discount of 10% or more from the net asset value of the shares. The Fund may also, from time to time, purchase shares of its preferred stock in the open market when the preferred shares are trading at a discount to the liquidation value.
| Item 2. | 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 have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 3. Exhibits.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 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 Equity Trust Inc. |
| By (Signature and Title)* | /s/ Bruce N. Alpert | |
| Bruce N. Alpert, Principal Executive Officer |
| Date | 11/29/11 |
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 | 11/29/11 |
| By (Signature and Title)* | /s/ Agnes Mullady | |
| Agnes Mullady, Principal Financial Officer and Treasurer |
| Date | 11/29/11 |
* Print the name and title of each signing officer under his or her signature.