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 811-09243
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The Gabelli Utility Trust
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(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: March 31, 2008
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 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. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS.
The Schedule(s) of Investments is attached herewith.
[LOGO]
THE GABELLI
UTILITY TRUST
THE GABELLI UTILITY TRUST
First Quarter Report
March 31, 2008
TO OUR SHAREHOLDERS,
The Gabelli Utility Trust's (the "Fund") net asset value ("NAV") total
return was (13.6)% during the first quarter of 2008, compared with declines of
9.9% and 10.2% for the Standard & Poor's ("S&P") 500 Utilities Index and the
Lipper Utility Fund Average, respectively. The total return for the Fund's
publicly traded shares was (0.8)% during the first quarter. On March 31, 2008,
the Fund's NAV per share was $6.90, while the price of the publicly traded
shares closed at $9.23 on the New York Stock Exchange.
Enclosed is the investment portfolio as of March 31, 2008.
COMPARATIVE RESULTS
--------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH MARCH 31, 2008 (a)
-------------------------------------------------
Since
Inception
Quarter 1 Year 3 Year 5 Year (07/09/99)
------- ------ ------ ------ ----------
GABELLI UTILITY TRUST
NAV TOTAL RETURN (b) ......... (13.58)% (10.46)% 8.99% 13.79% 8.89%
INVESTMENT TOTAL RETURN (c) .. (0.80) 0.05 7.85 8.58 10.98
S&P 500 Utilities Index ......... (9.94) (1.62) 12.97 19.75 7.27
Lipper Utility Fund Average ..... (10.24) (0.42) 14.04 19.42 6.28
(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 LESS THAN ONE YEAR ARE NOT ANNUALIZED. INVESTORS SHOULD CAREFULLY
CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE
FUND BEFORE INVESTING. THE S&P 500 UTILITIES INDEX IS AN UNMANAGED
INDICATOR OF ELECTRIC AND GAS UTILITY STOCK PERFORMANCE. THE LIPPER
UTILITY FUND AVERAGE REFLECTS THE AVERAGE PERFORMANCE OF OPEN-END MUTUAL
FUNDS CLASSIFIED IN THIS PARTICULAR CATEGORY. DIVIDENDS ARE CONSIDERED
REINVESTED. 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, AND
ADJUSTMENTS FOR RIGHTS OFFERINGS AND ARE NET OF EXPENSES. SINCE INCEPTION
RETURN IS BASED ON AN INITIAL NAV OF $7.50.
(c) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN CLOSING MARKET
VALUES ON THE NEW YORK STOCK EXCHANGE, REINVESTMENT OF DISTRIBUTIONS, AND
ADJUSTMENTS FOR RIGHTS OFFERINGS. SINCE INCEPTION RETURN IS BASED ON AN
INITIAL OFFERING PRICE OF $7.50.
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We have separated the portfolio manager's commentary from the financial
statements and investment portfolio due to corporate governance regulations
stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that
the content of the portfolio manager's commentary is unrestricted. The financial
statements and investment portfolio are mailed separately from the commentary.
Both the commentary and the financial statements, including the portfolio of
investments, will be available on our website at www.gabelli.com.
--------------------------------------------------------------------------------
THE GABELLI UTILITY TRUST
SCHEDULE OF INVESTMENTS
MARCH 31, 2008 (UNAUDITED)
MARKET
SHARES VALUE
------------ ---------------
COMMON STOCKS -- 87.4%
ENERGY AND UTILITIES -- 75.4%
ENERGY AND UTILITIES: ALTERNATIVE ENERGY -- 0.2%
10,000 Ormat Technologies Inc. ......................................................................... $ 430,100
---------------
ENERGY AND UTILITIES: ELECTRIC INTEGRATED -- 44.4%
248,000 Allegheny Energy Inc. ........................................................................... 12,524,000
23,000 ALLETE Inc. ..................................................................................... 888,260
75,000 Alliant Energy Corp. ............................................................................ 2,625,750
10,000 Ameren Corp. .................................................................................... 440,400
80,000 American Electric Power Co. Inc. ................................................................ 3,330,400
1,800,000 Aquila Inc.+ .................................................................................... 5,778,000
10,000 Avista Corp. .................................................................................... 195,600
35,000 Black Hills Corp. ............................................................................... 1,252,300
30,000 Cleco Corp. ..................................................................................... 665,400
150,000 CMS Energy Corp. ................................................................................ 2,031,000
70,000 Constellation Energy Group Inc. ................................................................. 6,178,900
4,000 Dominion Resources Inc. ......................................................................... 163,360
160,000 DPL Inc. ........................................................................................ 4,102,400
24,000 DTE Energy Co. .................................................................................. 933,360
200,000 Duke Energy Corp. ............................................................................... 3,570,000
90,000 Edison International ............................................................................ 4,411,800
189,300 El Paso Electric Co.+ ........................................................................... 4,045,341
3,000 Entergy Corp. ................................................................................... 327,240
51,000 FirstEnergy Corp. ............................................................................... 3,499,620
137,000 Florida Public Utilities Co. .................................................................... 1,527,550
90,000 FPL Group Inc. .................................................................................. 5,646,600
100,000 Great Plains Energy Inc. ........................................................................ 2,465,000
55,000 Hawaiian Electric Industries Inc. ............................................................... 1,312,850
92,000 Integrys Energy Group Inc. ...................................................................... 4,290,880
61,000 Maine & Maritimes Corp.+ ........................................................................ 1,695,800
66,000 MGE Energy Inc. ................................................................................. 2,247,960
45,000 NiSource Inc. ................................................................................... 775,800
110,000 NorthWestern Corp. .............................................................................. 2,680,700
100,000 OGE Energy Corp. ................................................................................ 3,117,000
24,000 Otter Tail Corp. ................................................................................ 849,360
48,000 PG&E Corp. ...................................................................................... 1,767,360
35,000 PNM Resources Inc. .............................................................................. 436,450
100,000 Progress Energy Inc. ............................................................................ 4,170,000
40,000 Progress Energy Inc., CVO+ (a) .................................................................. 13,200
38,000 Public Service Enterprise Group Inc. ............................................................ 1,527,220
41,000 Puget Energy Inc. ............................................................................... 1,060,670
60,500 SCANA Corp. ..................................................................................... 2,213,090
35,000 Sierra Pacific Resources ........................................................................ 442,050
104,000 TECO Energy Inc. ................................................................................ 1,658,800
20,000 The Empire District Electric Co. ................................................................ 405,000
160,000 Unisource Energy Corp. .......................................................................... 3,561,600
35,000 Unitil Corp. .................................................................................... 943,250
47,000 Vectren Corp. ................................................................................... 1,261,010
260,000 Westar Energy Inc. .............................................................................. 5,920,200
90,000 Wisconsin Energy Corp. .......................................................................... 3,959,100
195,000 Xcel Energy Inc. ................................................................................ 3,890,250
---------------
116,801,881
---------------
MARKET
SHARES VALUE
------------ ---------------
ENERGY AND UTILITIES:
ELECTRIC TRANSMISSION AND DISTRIBUTION -- 6.9%
243 Brookfield Infrastructure Partners LP ........................................................... $ 4,119
50,000 CH Energy Group Inc. ............................................................................ 1,945,000
58,000 Consolidated Edison Inc. ........................................................................ 2,302,600
100,000 Energy East Corp. ............................................................................... 2,412,000
135,000 Northeast Utilities ............................................................................. 3,312,900
215,000 NSTAR ........................................................................................... 6,542,450
22,500 Pepco Holdings Inc. ............................................................................. 556,200
36,666 UIL Holdings Corp. .............................................................................. 1,104,746
---------------
18,180,015
---------------
ENERGY AND UTILITIES: GLOBAL UTILITIES -- 4.3%
1,500 Areva SA ........................................................................................ 1,631,645
8,000 Chubu Electric Power Co. Inc. ................................................................... 199,839
35,000 Electric Power Development Co. Ltd. ............................................................. 1,260,534
20,000 Endesa SA ....................................................................................... 1,048,926
28,800 Endesa SA, ADR .................................................................................. 1,516,006
200,000 Enel SpA ........................................................................................ 2,121,848
300,000 Hera SpA ........................................................................................ 1,210,117
8,000 Hokkaido Electric Power Co. Inc. ................................................................ 185,795
8,000 Hokuriku Electric Power Co. ..................................................................... 188,603
1,500 Huaneng Power International Inc., ADR ........................................................... 45,810
30,000 Korea Electric Power Corp., ADR ................................................................. 451,200
8,000 Kyushu Electric Power Co. Inc. .................................................................. 195,425
2,000 Niko Resources Ltd. ............................................................................. 162,210
8,000 Shikoku Electric Power Co. Inc. ................................................................. 237,961
8,000 The Chugoku Electric Power Co. Inc. ............................................................. 178,170
8,000 The Kansai Electric Power Co. Inc. .............................................................. 199,037
8,000 The Tokyo Electric Power Co. Inc. ............................................................... 213,884
15,000 Tohoku Electric Power Co. Inc. .................................................................. 366,423
---------------
11,413,433
---------------
ENERGY AND UTILITIES: MERCHANT ENERGY -- 1.6%
35,810 Dynegy Inc., Cl. A+ ............................................................................. 282,541
8,130 Mirant Corp.+ ................................................................................... 295,851
300,000 Mirant Corp. Escrow+ (a) ........................................................................ 0
220,000 The AES Corp.+ .................................................................................. 3,667,400
---------------
4,245,792
---------------
ENERGY AND UTILITIES: NATURAL GAS INTEGRATED -- 6.7%
180,000 El Paso Corp. ................................................................................... 2,995,200
40,600 EnergySouth Inc. ................................................................................ 2,118,914
110,000 National Fuel Gas Co. ........................................................................... 5,193,100
100,000 ONEOK Inc. ...................................................................................... 4,463,000
120,000 Southern Union Co. .............................................................................. 2,792,400
---------------
17,562,614
---------------
ENERGY AND UTILITIES: NATURAL GAS UTILITIES -- 5.5%
26,000 AGL Resources Inc. .............................................................................. 892,320
50,000 Atmos Energy Corp. .............................................................................. 1,275,000
10,000 Chesapeake Utilities Corp. ...................................................................... 296,400
8,000 Corning Natural Gas Corp.+ ...................................................................... 128,800
30,000 Delta Natural Gas Co. Inc. ...................................................................... 740,700
90,000 Nicor Inc. ...................................................................................... 3,015,900
35,000 Piedmont Natural Gas Co. Inc. ................................................................... 919,100
See accompanying notes to schedule of investments.
2
THE GABELLI UTILITY TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008 (UNAUDITED)
MARKET
SHARES VALUE
------------ ---------------
COMMON STOCKS (CONTINUED)
ENERGY AND UTILITIES (CONTINUED)
ENERGY AND UTILITIES: NATURAL GAS UTILITIES (CONTINUED)
6,000 RGC Resources Inc. .............................................................................. $ 167,160
150,000 Southwest Gas Corp. ............................................................................. 4,194,000
120,000 Spectra Energy Corp. ............................................................................ 2,730,000
---------------
14,359,380
---------------
ENERGY AND UTILITIES: NATURAL RESOURCES -- 1.3%
4,000 Anadarko Petroleum Corp. ........................................................................ 252,120
19,000 Compania de Minas Buenaventura SA, ADR .......................................................... 1,301,500
18,000 Exxon Mobil Corp. ............................................................................... 1,522,440
300 Patriot Coal Corp.+ ............................................................................. 14,091
3,000 Peabody Energy Corp. ............................................................................ 153,000
4,000 Royal Dutch Shell plc, Cl. A, ADR ............................................................... 275,920
---------------
3,519,071
---------------
ENERGY AND UTILITIES: SERVICES -- 0.5%
50,000 ABB Ltd., ADR ................................................................................... 1,346,000
3,472 Renegy Holdings Inc.+ ........................................................................... 14,930
---------------
1,360,930
---------------
ENERGY AND UTILITIES: WATER -- 2.7%
14,000 American States Water Co. ....................................................................... 504,000
21,833 Aqua America Inc. ............................................................................... 410,024
24,750 Artesian Resources Corp., Cl. A ................................................................. 458,618
20,000 California Water Service Group .................................................................. 763,000
7,500 Connecticut Water Service Inc. .................................................................. 177,525
51,333 Middlesex Water Co. ............................................................................. 932,207
27,100 Pennichuck Corp. ................................................................................ 626,010
80,000 SJW Corp. ....................................................................................... 2,287,200
8,101 Southwest Water Co. ............................................................................. 89,678
12,000 Suez SA ......................................................................................... 787,357
12,000 Suez SA, Strips+ ................................................................................ 189
9,000 York Water Co. .................................................................................. 134,910
---------------
7,170,718
---------------
DIVERSIFIED INDUSTRIAL -- 1.2%
1,000 Alstom .......................................................................................... 216,795
2,000 Bouygues SA ..................................................................................... 127,058
8,000 Cooper Industries Ltd., Cl. A ................................................................... 321,200
68,000 General Electric Co. ............................................................................ 2,516,680
---------------
3,181,733
---------------
EQUIPMENT AND SUPPLIES -- 0.1%
50,000 Capstone Turbine Corp.+ ......................................................................... 106,000
2,000 Mueller Industries Inc. ......................................................................... 57,700
---------------
163,700
---------------
TOTAL ENERGY AND UTILITIES ...................................................................... 198,389,367
---------------
COMMUNICATIONS -- 9.8%
CABLE AND SATELLITE -- 3.0%
55,000 Cablevision Systems Corp., Cl. A+ ............................................................... 1,178,650
5,000 Cogeco Cable Inc. ............................................................................... 175,313
20,000 Cogeco Inc. ..................................................................................... 594,281
SHARES/ MARKET
UNITS VALUE
------------ ---------------
20,000 Comcast Corp., Cl. A ............................................................................ $ 386,800
50,000 DISH Network Corp., Cl. A+ ...................................................................... 1,436,500
10,000 EchoStar Corp., Cl. A+ .......................................................................... 295,400
35,000 Liberty Global Inc., Cl. A+ ..................................................................... 1,192,800
20,000 Liberty Global Inc., Cl. C+ ..................................................................... 649,600
8,000 Rogers Communications Inc., Cl. B ............................................................... 287,360
65,000 The DIRECTV Group Inc.+ ......................................................................... 1,611,350
2,112 Zon Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA ................................ 25,041
---------------
7,833,095
---------------
COMMUNICATIONS EQUIPMENT -- 0.3%
280,000 The Furukawa Electric Co. Ltd. .................................................................. 904,494
---------------
TELECOMMUNICATIONS -- 3.9%
45,000 AT&T Inc. ....................................................................................... 1,723,500
4,350 Bell Aliant Regional Communications Income Fund (a)(b) .......................................... 130,457
30,000 BT Group plc, ADR ............................................................................... 1,293,000
1,000 CenturyTel Inc. ................................................................................. 33,240
220,000 Cincinnati Bell Inc.+ ........................................................................... 937,200
10,000 Citizens Communications Co. ..................................................................... 104,900
500 Comstar United Telesystems OJSC, GDR+ ........................................................... 4,750
20,000 D&E Communications Inc. ......................................................................... 178,000
30,000 Deutsche Telekom AG, ADR ........................................................................ 497,400
2,000 France Telecom SA, ADR .......................................................................... 67,160
200 Hutchison Telecommunications International Ltd. ................................................. 285
500 Mobistar SA ..................................................................................... 45,310
200 Nippon Telegraph & Telephone Corp. .............................................................. 862,761
15,000 Portugal Telecom SGPS SA ........................................................................ 174,295
200 PT Indosat Tbk .................................................................................. 154
500 Rostelecom, ADR ................................................................................. 36,000
500 Sistema JSFC, GDR ............................................................................... 16,050
1,200 Tele2 AB, Cl. B ................................................................................. 22,670
5,000 Telecom Italia SpA, ADR ......................................................................... 104,450
40,000 Touch America Holdings Inc.+ .................................................................... 0
115,000 Verizon Communications Inc. ..................................................................... 4,191,750
---------------
10,423,332
---------------
WIRELESS COMMUNICATIONS -- 2.6%
600 America Movil SAB de CV, Cl. L, ADR ............................................................. 38,214
2,000 China Mobile Ltd., ADR .......................................................................... 150,020
2,000 China Unicom Ltd., ADR .......................................................................... 42,540
4,500 Mobile TeleSystems OJSC, ADR .................................................................... 341,325
171 MobileOne Ltd. .................................................................................. 263
1,200 NTT DoCoMo Inc. ................................................................................. 1,817,817
3,000 QUALCOMM Inc. ................................................................................... 123,000
40,000 Rural Cellular Corp., Cl. A+ .................................................................... 1,769,200
600 SK Telecom Co. Ltd., ADR ........................................................................ 12,966
200 SmarTone Telecommunications Holdings Ltd. ....................................................... 211
3,000 Turkcell Iletisim Hizmet A/S, ADR ............................................................... 62,670
See accompanying notes to schedule of investments.
3
THE GABELLI UTILITY TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008 (UNAUDITED)
MARKET
SHARES VALUE
------------ ---------------
COMMON STOCKS (CONTINUED)
COMMUNICATIONS (CONTINUED)
WIRELESS COMMUNICATIONS (CONTINUED)
29,000 United States Cellular Corp.+ ................................................................... $ 1,595,000
28,000 Vimpel-Communications, ADR ...................................................................... 836,920
---------------
6,790,146
---------------
TOTAL COMMUNICATIONS ............................................................................ 25,951,067
---------------
OTHER -- 2.2%
AEROSPACE -- 0.2%
65,000 Rolls-Royce Group plc+ .......................................................................... 519,876
5,824,000 Rolls-Royce Group plc, Cl. B .................................................................... 11,559
---------------
531,435
---------------
AGRICULTURE -- 0.0%
800 Cadiz Inc.+ ..................................................................................... 12,304
---------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.0%
1,000 BERU AG ......................................................................................... 117,065
---------------
ENTERTAINMENT -- 1.6%
100,000 Time Warner Inc. ................................................................................ 1,402,000
70,000 Vivendi ......................................................................................... 2,735,195
---------------
4,137,195
---------------
PUBLISHING -- 0.0%
3,000 Idearc Inc. ..................................................................................... 10,920
---------------
REAL ESTATE -- 0.1%
6,075 Brookfield Asset Management Inc., Cl. A ......................................................... 162,992
---------------
TRANSPORTATION -- 0.3%
20,000 GATX Corp. ...................................................................................... 781,400
---------------
TOTAL OTHER ..................................................................................... 5,753,311
---------------
TOTAL COMMON STOCKS ............................................................................. 230,093,745
---------------
CONVERTIBLE PREFERRED STOCKS -- 1.6%
ENERGY AND UTILITIES -- 1.0%
ENERGY AND UTILITIES: NATURAL GAS INTEGRATED -- 1.0%
2,000 El Paso Corp., 4.990% Cv. Pfd. (b) .............................................................. 2,724,616
---------------
COMMUNICATIONS -- 0.6%
TELECOMMUNICATIONS -- 0.6%
30,000 Citizens Utilities Trust, 5.000% Cv. Pfd ........................................................ 1,441,050
---------------
TOTAL CONVERTIBLE PREFERRED STOCKS .............................................................. 4,165,666
---------------
PRINCIPAL
AMOUNT
------------
CORPORATE BONDS -- 0.0%
COMMUNICATIONS -- 0.0%
TELECOMMUNICATIONS -- 0.0%
$ 100,000 Williams Communications Group Inc., Escrow, 10.875%, 10/01/09+ (a) .............................. 0
---------------
MARKET
SHARES VALUE
------------ ---------------
WARRANTS -- 0.2%
ENERGY AND UTILITIES -- 0.2%
ENERGY AND UTILITIES: MERCHANT ENERGY -- 0.2%
2,024 Calpine Corp., expire 08/25/08+ ................................................................. $ 1,244
26,107 Mirant Corp., Ser. A, expire 01/03/11+ .......................................................... 413,796
---------------
415,040
---------------
ENERGY AND UTILITIES: NATURAL GAS UTILITIES -- 0.0%
3,000 Corning Natural Gas Corp., expire 08/17/11+ ..................................................... 5,400
---------------
TOTAL ENERGY AND UTILITIES ...................................................................... 420,440
---------------
COMMUNICATIONS -- 0.0%
WIRELESS COMMUNICATIONS -- 0.0%
3,000 Bharti Airtel Ltd., expire 12/15/16+ (b) ........................................................ 61,250
---------------
TOTAL WARRANTS .................................................................................. 481,690
---------------
PRINCIPAL
AMOUNT
------------
U.S. GOVERNMENT OBLIGATIONS -- 10.8%
U.S. TREASURY BILLS -- 8.2%
$ 21,589,000 U.S. Treasury Bills, 0.446% to 3.186%++, 04/15/08 to 09/04/08 ................................... 21,533,371
---------------
U.S. TREASURY NOTES -- 2.6%
6,864,000 U.S. Treasury Note, 5.000%, 07/31/08 ............................................................ 6,947,123
---------------
TOTAL U.S. GOVERNMENT OBLIGATIONS ............................................................... 28,480,494
---------------
TOTAL INVESTMENTS -- 100.0%
(Cost $229,415,640) ......................................................................................... $ 263,221,595
===============
Aggregate book cost ............................................................................... $ 229,415,640
===============
Gross unrealized appreciation ..................................................................... $ 42,883,936
Gross unrealized depreciation ..................................................................... (9,077,981)
---------------
Net unrealized appreciation/depreciation ........................................................ $ 33,805,955
===============
----------
(a) Security fair valued under procedures established by the Board of
Trustees. The procedures may include reviewing available financial
information about the company and reviewing the valuation of comparable
securities and other factors on a regular basis. At March 31, 2008, the
market value of fair valued securities amounted to $143,657 or 0.05% of
total investments.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At March
31, 2008, the market value of Rule 144A securities amounted to $2,916,323
or 1.11% of total investments.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR American Depositary Receipt
CVO Contingent Value Obligation
GDR Global Depositary Receipt
See accompanying notes to schedule of investments.
4
THE GABELLI UTILITY TRUST
NOTES TO SCHEDULE OF INVESTMENTS (UNAUDITED)
1. SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange or traded in the U.S. over-the-counter market for
which market quotations are readily available are valued at the last quoted sale
price or a market's official closing price as of the close of business on the
day the securities are being valued. If there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day. If no bid or asked prices are quoted on such
day, the security is valued at the most recently available price or, if the
Board of Trustees (the "Board") so determines, by such other method as the Board
shall determine in good faith to reflect its fair market value. Portfolio
securities traded on more than one national securities exchange or market are
valued according to the broadest and most representative market, as determined
by Gabelli Funds, LLC, the Adviser.
Portfolio securities primarily traded on a foreign market are generally valued
at the preceding closing values of such securities on the relevant market, but
may be fair valued pursuant to procedures established by the Board if market
conditions change significantly after the close of the foreign market but prior
to the close of business on the day the securities are being valued. Debt
instruments with remaining maturities of 60 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 60 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.
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.
ADOPTION OF STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 157 "FAIR VALUE
MEASUREMENTS" ("SFAS 157")
On January 1, 2008, the Fund adopted SFAS 157 that clarifies the definition of
fair value for financial reporting, establishes a framework for measuring fair
value, and requires additional disclosures about the use of fair value
measurements. The three levels of the fair value hierarchy under SFAS 157 are
described below:
o Level 1 - quoted prices in active markets for identical securities;
o Level 2 - other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds,
credit risk, etc.); and
o Level 3 - significant unobservable inputs (including the Fund's
determinations as to the fair value of investments).
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 inputs used to value the Fund's net assets as of March 31, 2008 is as
follows:
INVESTMENTS IN OTHER FINANCIAL INSTRUMENTS
SECURITIES (UNREALIZED
VALUATION INPUTS (MARKET VALUE) DEPRECIATION)*
---------------- -------------- ---------------------------
Level 1 - Quoted Prices $234,727,901 --
Level 2 - Other Significant Observable Inputs 28,480,494 $(869,482)
Level 3 - Significant Unobservable Inputs 13,200 --
------------ ---------
Total $263,221,595 $(869,482)
============ =========
----------
* Other financial instruments are derivative instruments not reflected in
the Schedule of Investments, such as futures, forwards and swaps which are
valued at the unrealized appreciation/depreciation on the investment.
5
THE GABELLI UTILITY TRUST
NOTES TO SCHEDULE OF INVESTMENTS (CONTINUED) (UNAUDITED)
Following is a reconciliation of Level 3 investments for which significant
unobservable inputs were used to determine fair value:
INVESTMENTS IN
SECURITIES
(MARKET VALUE)
--------------
BALANCE AS OF 12/31/07 $13,200
Accrued discounts/premiums --
Realized gain (loss) --
Change in unrealized appreciation/depreciation --
Net purchases (sales) --
Transfers in and/or out of Level 3 --
-------
BALANCE AS OF 3/31/08 $13,200
=======
2. SWAP AGREEMENTS. The Fund may enter into equity, contract for differences,
and interest rate swap or cap transactions. The use of swaps and caps is a
highly specialized activity that involves investment techniques and risks
different from those associated with ordinary portfolio transactions. In an
interest rate swap, the Fund would agree to pay to the other party to the
interest rate swap (which is known as the "counterparty") periodically a fixed
rate payment in exchange for the counterparty agreeing to pay to the Fund
periodically a variable rate payment that is intended to approximate the Fund's
variable rate payment obligation on Series B Preferred Shares. In an interest
rate cap, the Fund would pay a premium to the counterparty and, to the extent
that a specified variable rate index exceeds a predetermined fixed rate, would
receive from that counterparty payments of the difference based on the notional
amount of such cap. In an equity swap, a set of future cash flows are 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. Swap and cap transactions introduce additional risk because
the Fund would remain obligated to pay preferred stock dividends when due in
accordance with the Statement of Preferences even if the counterparty defaulted.
If there is a default by the counterparty to a swap contract, the Fund will be
limited to contractual remedies pursuant to the agreements related to the
transaction. There is no assurance that the swap contract counterparties will be
able to meet their obligations pursuant to a swap contract or that, in the event
of default, the Fund will succeed in pursuing contractual remedies. The Fund
thus assumes the risk that it may be delayed in or prevented from obtaining
payments owed to it pursuant to a swap contract. The creditworthiness of the
swap contract counterparties is closely monitored in order to minimize this
risk. Depending on the general state of short-term interest rates and the
returns on the Fund's portfolio securities at that point in time, such a default
could negatively affect the Fund's ability to make dividend payments. In
addition, at the time a swap or cap 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.
The use of derivative instruments may involve, to varying degrees, elements of
market and counterparty risk in excess of the amount recognized below.
The Fund has entered into an interest rate swap agreement with Citibank N.A.
Under the agreement, the Fund receives a floating rate of interest and pays a
respective fixed rate of interest on the nominal value of the swap. Details of
the swap at March 31, 2008 are as follows:
NET
NOTIONAL FLOATING RATE* TERMINATION UNREALIZED
AMOUNT FIXED RATE (RATE RESET MONTHLY) DATE DEPRECIATION
----------- ---------- -------------------- ----------- ------------
$25,000,000 4.00% 3.12% 06/02/10 $(853,220)
----------
* Based on Libor (London Interbank Offered Rate).
The Fund has entered into a contract for differences swap agreement with Bear,
Stearns International Limited. Details of the swap at March 31, 2008 is as
follows:
NET
NOTIONAL EQUITY SECURITY INTEREST RATE/ TERMINATION UNREALIZED
AMOUNT RECEIVED EQUITY SECURITY PAID DATE DEPRECIATION
------------------------ --------------------- -------------------------------- ----------- ------------
Market Value Overnight LIBOR plus 40 bps plus
Appreciation on: Market Value Depreciation on:
$295,782 (35,000 Shares) Rolls-Royce Group plc Rolls-Royce Group plc 10/15/08 $(16,262)
6
TRUSTEES AND OFFICERS
THE GABELLI UTILITY TRUST
ONE CORPORATE CENTER, RYE, NY 10580-1422
TRUSTEES OFFICERS
Mario J. Gabelli, CFA Bruce N. Alpert
CHAIRMAN & CHIEF EXECUTIVE OFFICER, PRESIDENT
GAMCO INVESTORS, INC.
Peter D. Goldstein
Dr. Thomas E. Bratter CHIEF COMPLIANCE OFFICER
PRESIDENT & FOUNDER, JOHN DEWEY ACADEMY
Agnes Mullady
Anthony J. Colavita TREASURER AND SECRETARY
ATTORNEY-AT-LAW,
ANTHONY J. COLAVITA, P.C. David I. Schachter
VICE PRESIDENT & OMBUDSMAN
James P. Conn
FORMER MANAGING DIRECTOR & INVESTMENT ADVISER
CHIEF INVESTMENT OFFICER, Gabelli Funds, LLC
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD. One Corporate Center
Rye, New York 10580-1422
Vincent D. Enright
FORMER SENIOR VICE PRESIDENT & CUSTODIAN
CHIEF FINANCIAL OFFICER, Mellon Trust of New England, N.A.
KEYSPAN CORP.
COUNSEL
Frank J. Fahrenkopf, Jr. Willkie Farr & Gallagher LLP
PRESIDENT & CHIEF EXECUTIVE OFFICER,
AMERICAN GAMING ASSOCIATION TRANSFER AGENT AND REGISTRAR
Computershare Trust Company, N.A.
John D. Gabelli
SENIOR VICE PRESIDENT, STOCK EXCHANGE LISTING
GABELLI & COMPANY, INC.
5.625%
Robert J. Morrissey Common Preferred
ATTORNEY-AT-LAW, ---------- ---------
MORRISSEY, HAWKINS & LYNCH NYSE-Symbol: GUT GUT PrA
Shares Outstanding: 30,111,729 1,183,700
Anthony R. Pustorino
CERTIFIED PUBLIC ACCOUNTANT,
PROFESSOR EMERITUS, PACE UNIVERSITY
Salvatore J. Zizza
CHAIRMAN, ZIZZA & CO., LTD.
The Net Asset Value per share appears in the Publicly Traded Funds column, under
the heading "Specialized 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 "Specialized Equity Funds."
The Net Asset Value per share may be obtained each day by calling (914) 921-5070
or visiting www.gabelli.com.
--------------------------------------------------------------------------------
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
its common shares 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 its preferred shares in the open market when
the preferred shares are trading at a discount to the liquidation value.
--------------------------------------------------------------------------------
THE GABELLI UTILITY TRUST
ONE CORPORATE CENTER
RYE, NY 10580-1422
(914) 921-5070
WWW.GABELLI.COM
FIRST QUARTER REPORT
MARCH 31, 2008
GUT Q1/2008
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 Utility Trust
-------------------------------------------------------------------
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date May 29, 2008
----------------------------------------------------------------------------
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 May 29, 2008
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Agnes Mullady
-------------------------------------------------------
Agnes Mullady,
Principal Financial Officer and Treasurer
Date May 29, 2008
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.