N-Q 1 y90362nvq.htm FORM N-Q nvq
 
 
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
The Gabelli Utility Trust
 
(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: March 31, 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 Utility Trust
First Quarter Report
March 31, 2011
(PHOTO OF MARIO J. GABELLI)
Mario J. Gabelli, CFA


To Our Shareholders,
     During the first quarter of 2011, The Gabelli Utility Trust’s (the “Fund”) net asset value (“NAV”) total return was 8.2% compared with the Standard & Poor’s (“S&P”) 500 Utilities Index of 2.7% and the Lipper Utility Fund Average of 5.4%. The total return for the Fund’s publicly traded shares was 7.1% during the first quarter of 2011.
     Enclosed is the investment portfolio as of March 31, 2011.
Comparative Results
Average Annual Returns through March 31, 2011 (a) (Unaudited)
                                                 
                                            Since
                                            Inception
    Quarter   1 Year   3 Year   5 Year   10 Year   (07/09/99)
Gabelli Utility Trust
                                               
NAV Total Return (b)
    8.21 %     25.50 %     7.17 %     7.42 %     7.75 %     8.45 %
Investment Total Return (c)
    7.11       (3.97 )     (0.36 )     3.42       6.44       7.97  
S&P 500 Index
    5.92       15.65       2.35       2.62       3.29       1.51  
S&P 500 Utilities Index
    2.74       12.32       (1.48 )     4.70       1.80       3.83 (d)
Lipper Utility Fund Average
    5.36       16.99       0.93       5.76       4.45       4.43  
 
(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 S&P 500 Index is an unmanaged indicator of stock market performance. 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.
 
(d)   From June 30, 1999, the date closest to the Fund’s inception for which data is available.

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, 2011 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS — 99.3%
       
       
ENERGY AND UTILITIES — 85.6%
       
       
Energy and Utilities: Alternative Energy — 0.1%
       
  7,000    
Ormat Industries Ltd.
  $ 51,692  
  11,000    
Ormat Technologies Inc.
    278,630  
  8,100    
Renegy Holdings Inc.†
    2,430  
       
 
     
       
 
    332,752  
       
 
     
       
Energy and Utilities: Electric Integrated — 45.1%
       
  23,000    
ALLETE Inc.
    896,310  
  75,000    
Alliant Energy Corp.
    2,919,750  
  17,000    
Ameren Corp.
    477,190  
  78,000    
American Electric Power Co. Inc.
    2,740,920  
  10,000    
Avista Corp.
    231,300  
  50,000    
Black Hills Corp.
    1,672,000  
  26,000    
Central Vermont Public Service Corp.
    605,540  
  27,000    
Cleco Corp.
    925,830  
  117,000    
CMS Energy Corp.
    2,297,880  
  135,000    
Constellation Energy Group Inc.
    4,202,550  
  30,000    
Dominion Resources Inc.
    1,341,000  
  115,000    
DPL Inc.
    3,152,150  
  23,000    
DTE Energy Co.
    1,126,080  
  125,000    
Duke Energy Corp.
    2,268,750  
  83,000    
Edison International
    3,036,970  
  172,000    
El Paso Electric Co.†
    5,228,800  
  1,000    
Emera Inc.
    32,687  
  3,000    
Entergy Corp.
    201,630  
  116,710    
FirstEnergy Corp.
    4,328,774  
  200,000    
Great Plains Energy Inc.
    4,004,000  
  52,000    
Hawaiian Electric Industries Inc.
    1,289,600  
  89,000    
Integrys Energy Group Inc.
    4,495,390  
  64,000    
MGE Energy Inc.
    2,591,360  
  95,000    
NextEra Energy Inc.
    5,236,400  
  48,000    
NiSource Inc.
    920,640  
  109,000    
NorthWestern Corp.
    3,302,700  
  35,000    
NV Energy Inc.
    521,150  
  100,000    
OGE Energy Corp.
    5,056,000  
  22,400    
Otter Tail Corp.
    509,152  
  48,000    
PG&E Corp.
    2,120,640  
  100,000    
PNM Resources Inc.
    1,492,000  
  90,000    
Progress Energy Inc.
    4,152,600  
  40,000    
Progress Energy Inc., CVO†
    5,800  
  38,000    
Public Service Enterprise Group Inc.
    1,197,380  
  60,500    
SCANA Corp.
    2,381,885  
  104,000    
TECO Energy Inc.
    1,951,040  
  25,000    
The Empire District Electric Co.
    544,750  
  142,000    
UniSource Energy Corp.
    5,130,460  
  18,000    
Unitil Corp.
    424,080  
  47,000    
Vectren Corp.
    1,278,400  
  260,000    
Westar Energy Inc.
    6,869,200  
  180,000    
Wisconsin Energy Corp.
  5,490,000  
  179,000    
Xcel Energy Inc.
    4,276,310  
       
 
     
       
 
    102,927,048  
       
 
     
       
Energy and Utilities: Electric Transmission and Distribution — 8.7%
       
  243    
Brookfield Infrastructure Partners LP
    5,400  
  50,000    
CH Energy Group Inc.
    2,527,000  
  56,000    
Consolidated Edison Inc.
    2,840,320  
  135,000    
Northeast Utilities
    4,671,000  
  180,000    
NSTAR
    8,328,600  
  22,500    
Pepco Holdings Inc.
    419,625  
  36,666    
UIL Holdings Corp.
    1,119,046  
       
 
     
       
 
    19,910,991  
       
 
     
       
Energy and Utilities: Global Utilities — 3.4%
       
  15,000    
Areva SA
    666,435  
  1,250    
Areva SA, Preference
    52,064  
  8,000    
Chubu Electric Power Co. Inc.
    177,927  
  40,000    
Electric Power Development Co. Ltd.
    1,232,027  
  37,000    
Endesa SA
    1,146,517  
  300,000    
Enel SpA
    1,891,103  
  300,000    
Hera SpA
    718,092  
  8,000    
Hokkaido Electric Power Co. Inc.
    155,133  
  8,000    
Hokuriku Electric Power Co.
    181,197  
  3,500    
Huaneng Power International Inc., ADR
    82,215  
  35,000    
Korea Electric Power Corp., ADR†
    428,400  
  8,000    
Kyushu Electric Power Co. Inc.
    156,288  
  2,000    
Niko Resources Ltd.
    191,851  
  8,000    
Shikoku Electric Power Co. Inc.
    217,648  
  8,000    
The Chugoku Electric Power Co. Inc.
    147,920  
  8,000    
The Kansai Electric Power Co. Inc.
    174,176  
  6,000    
The Tokyo Electric Power Co. Inc.
    33,614  
  15,000    
Tohoku Electric Power Co. Inc.
    253,366  
       
 
     
       
 
    7,905,973  
       
 
     
       
Energy and Utilities: Merchant Energy — 1.8%
       
  23,000    
Dynegy Inc.†
    130,870  
  23,048    
GenOn Energy Inc.†
    87,813  
  300,000    
GenOn Energy Inc., Escrow† (a)
    0  
  305,000    
The AES Corp.†
    3,965,000  
       
 
     
       
 
    4,183,683  
       
 
     
       
Energy and Utilities: Natural Gas Integrated — 11.2%
       
  334,459    
El Paso Corp.
    6,020,262  
  1,000    
Energen Corp.
    63,120  
  127,000    
National Fuel Gas Co.
    9,398,000  
  100,000    
ONEOK Inc.
    6,688,000  
  120,000    
Southern Union Co.
    3,434,400  
       
 
     
       
 
    25,603,782  
       
 
     
See accompanying notes to schedule of investments.

2


 

THE GABELLI UTILITY TRUST
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2011 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS (Continued)
       
       
ENERGY AND UTILITIES (Continued)
       
       
Energy and Utilities: Natural Gas Utilities — 8.7%
       
  26,000    
AGL Resources Inc.
  $ 1,035,840  
  34,000    
Atmos Energy Corp.
    1,159,400  
  22,500    
Chesapeake Utilities Corp.
    936,450  
  11,000    
CONSOL Energy Inc.
    589,930  
  14,945    
Corning Natural Gas Corp.
    356,812  
  30,000    
Delta Natural Gas Co. Inc.
    945,900  
  11,445    
GDF Suez
    466,319  
  11,445    
GDF Suez, Strips
    16  
  85,000    
Nicor Inc.
    4,564,500  
  35,000    
Piedmont Natural Gas Co. Inc.
    1,062,250  
  6,000    
RGC Resources Inc.
    205,800  
  140,000    
Southwest Gas Corp.
    5,455,800  
  112,000    
Spectra Energy Corp.
    3,044,160  
       
 
     
       
 
    19,823,177  
       
 
     
       
Energy and Utilities: Natural Resources — 1.4%
       
  4,000    
Anadarko Petroleum Corp.
    327,680  
  34,000    
Compania de Minas Buenaventura SA, ADR
    1,460,980  
  10,000    
Exxon Mobil Corp.
    841,300  
  3,000    
Peabody Energy Corp.
    215,880  
  4,000    
Royal Dutch Shell plc, Cl. A, ADR
    291,440  
       
 
     
       
 
    3,137,280  
       
 
     
       
Energy and Utilities: Services — 0.4%
       
  30,000    
ABB Ltd., ADR†
    725,700  
  2,400    
Tenaris SA, ADR
    118,704  
       
 
     
       
 
    844,404  
       
 
     
       
Energy and Utilities: Water — 3.1%
       
  14,000    
American States Water Co.
    502,040  
  28,000    
American Water Works Co. Inc.
    785,400  
  21,833    
Aqua America Inc.
    499,757  
  24,750    
Artesian Resources Corp., Cl. A
    482,378  
  20,000    
California Water Service Group
    743,400  
  7,500    
Connecticut Water Service Inc.
    197,625  
  51,333    
Middlesex Water Co.
    933,747  
  30,000    
Pennichuck Corp.
    854,700  
  80,000    
SJW Corp.
    1,852,000  
  9,000    
The York Water Co.
    156,690  
       
 
     
       
 
    7,007,737  
       
 
     
       
Diversified Industrial — 1.2%
       
  1,800    
Alstom SA
  106,438  
  1,000    
Bouygues SA
    48,022  
  6,000    
Cooper Industries plc
    389,400  
  106,000    
General Electric Co.
    2,125,300  
       
 
     
       
 
    2,669,160  
       
 
     
       
Equipment and Supplies — 0.1%
       
  50,000    
Capstone Turbine Corp.†
    90,500  
  2,000    
Mueller Industries Inc.
    73,240  
       
 
     
       
 
    163,740  
       
 
     
       
Environmental Services — 0.0%
       
  3,000    
Suez Environnement Co. SA
    62,073  
       
 
     
       
Independent Power Producers and Energy Traders — 0.4%
       
  40,000    
NRG Energy Inc.†
    861,600  
       
 
     
       
TOTAL ENERGY AND UTILITIES
    195,433,400  
       
 
     
       
COMMUNICATIONS — 11.6%
       
       
Cable and Satellite — 4.4%
       
  76,000    
Cablevision Systems Corp., Cl. A
    2,630,360  
  5,000    
Cogeco Cable Inc.
    232,130  
  20,000    
Cogeco Inc.
    855,905  
  30,000    
DIRECTV, Cl. A†
    1,404,000  
  60,000    
DISH Network Corp., Cl. A†
    1,461,600  
  10,000    
EchoStar Corp., Cl. A†
    378,500  
  27,000    
Liberty Global Inc., Cl. A†
    1,118,070  
  20,000    
Liberty Global Inc., Cl. C†
    799,800  
  8,000    
Rogers Communications Inc., Cl. B
    291,200  
  12,000    
Time Warner Cable Inc.
    856,080  
       
 
     
       
 
    10,027,645  
       
 
     
       
Communications Equipment — 0.4%
       
  245,000    
Furukawa Electric Co. Ltd.
    989,661  
  1,000    
QUALCOMM Inc.
    54,830  
       
 
     
       
 
    1,044,491  
       
 
     
       
Telecommunications — 4.5%
       
  45,000    
AT&T Inc.
    1,377,000  
  2,000    
Belgacom SA
    77,478  
  4,350 (b)  
Bell Aliant Inc. (c)
    120,427  
  12,000    
BT Group plc, ADR
    360,960  
  210,000    
Cincinnati Bell Inc.†
    562,800  
  1,400    
Comstar United Telesystems OJSC, GDR† (a)
    9,660  
See accompanying notes to schedule of investments.

3


 

THE GABELLI UTILITY TRUST
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2011 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS (Continued)
       
       
COMMUNICATIONS (Continued)
       
       
Telecommunications (Continued)
       
  53,000    
Deutsche Telekom AG, ADR
  $ 817,260  
  2,000    
France Telecom SA, ADR
    45,020  
  200    
Hutchison Telecommunications Hong Kong Holdings Ltd.
    64  
  500    
Mobistar SA
    34,665  
  19,000    
Nippon Telegraph & Telephone Corp.
    853,150  
  11,800    
Orascom Telecom Holding SAE, GDR† (d)(e)
    43,483  
  15,000    
Portugal Telecom SGPS SA
    173,124  
  2,000    
PT Indosat Tbk
    1,217  
  500    
Sistema JSFC, GDR (d)
    14,550  
  1,200    
Tele2 AB, Cl. B
    27,719  
  27,000    
Telekom Austria AG
    394,887  
  40,000    
Touch America Holdings Inc.†
    0  
  110,000    
Verizon Communications Inc.
    4,239,400  
  75,000    
VimpelCom Ltd., ADR
    1,059,000  
       
 
     
       
 
    10,211,864  
       
 
     
       
Wireless Communications — 2.3%
       
  600    
America Movil SAB de CV, Cl. L, ADR
    34,860  
  2,000    
China Mobile Ltd., ADR
    92,480  
  2,000    
China Unicom Hong Kong Ltd., ADR
    33,200  
  171    
M1 Ltd.
    327  
  13,000    
Millicom International Cellular SA
    1,250,210  
  11,250    
Mobile TeleSystems OJSC, ADR
    238,838  
  1,000    
NTT DoCoMo Inc.
    1,757,634  
  600    
SK Telecom Co. Ltd., ADR
    11,286  
  400    
SmarTone Telecommunications Holdings Ltd.
    663  
  22,000    
Turkcell Iletisim Hizmetleri A/S, ADR
    330,660  
  29,000    
United States Cellular Corp.†
    1,493,210  
       
 
     
       
 
    5,243,368  
       
 
     
       
TOTAL COMMUNICATIONS
    26,527,368  
       
 
     
       
 
       
       
OTHER — 2.1%
       
       
Aerospace — 0.4%
       
  100,000    
Rolls-Royce Group plc†
    993,005  
       
 
     
       
Agriculture — 0.0%
       
  3,000    
Cadiz Inc.†
    36,570  
       
 
     
       
Entertainment — 1.1%
       
  85,000    
Vivendi
    2,427,298  
       
 
     
       
Investment Companies — 0.0%
       
  3,000    
Kinnevik Investment AB, Cl. B
    69,916  
       
 
     
       
Real Estate — 0.1%
       
  6,075    
Brookfield Asset Management Inc., Cl. A
    197,195  
       
 
     
       
Transportation — 0.5%
       
  30,000    
GATX Corp.
    1,159,800  
       
 
     
       
TOTAL OTHER
    4,883,784  
       
 
     
       
TOTAL COMMON STOCKS
    226,844,552  
       
 
     
       
WARRANTS — 0.0%
       
       
COMMUNICATIONS — 0.0%
       
       
Wireless Communications — 0.0%
       
  16,000    
Bharti Airtel Ltd., expire 09/19/13† (c)
    128,258  
       
 
     
                 
Principal              
Amount              
       
CONVERTIBLE CORPORATE BONDS — 0.1%
       
       
ENERGY AND UTILITIES — 0.1%
       
       
Environmental Services — 0.1%
       
$ 100,000    
Covanta Holding Corp., Cv., 3.250%, 06/01/14
    118,500  
       
 
     
       
 
       
       
U.S. GOVERNMENT OBLIGATIONS — 0.6%
       
  1,285,000    
U.S. Treasury Bills,
       
       
0.120% to 0.160%††,
       
       
04/28/11 to 09/15/11
    1,284,492  
       
 
     
       
 
       
TOTAL INVESTMENTS — 100.0%        
     (Cost $176,797,840)   $ 228,375,802  
       
 
     
       
Aggregate tax cost
  $ 178,028,203  
       
 
     
       
Gross unrealized appreciation
  $ 57,096,381  
       
Gross unrealized depreciation
    (6,748,782 )
       
 
     
       
Net unrealized appreciation/depreciation .
  $ 50,347,599  
       
 
     
See accompanying notes to schedule of investments.

4


 

THE GABELLI UTILITY TRUST
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2011 (Unaudited)
                         
Notional         Termination     Unrealized  
Amount         Date     Appreciation  
       
EQUITY CONTRACT FOR DIFFERENCE SWAP AGREEMENT
               
$ 232,327    
 
               
(25,000 Shares)  
Rolls-Royce Group plc
    06/27/11     $ 15,821  
       
 
             
 
(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, 2011, the market value of fair valued securities amounted to $9,660 or 0.00% of total investments.
 
(b)   Denoted in units.
 
(c)   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, 2011, the market value of Rule 144A securities amounted to $248,685 or 0.11% of total investments.
 
(d)   Securities purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. These securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2011, the market value of the Regulation S securities amounted to $58,033 or 0.03% of total investments, which were valued under methods approved by Board of Trustees as follows:
                                 
                            03/31/11  
Acquisition         Acquisition     Acquisition     Carrying Value  
Shares     Issuer   Date     Cost     Per Unit  
  11,800    
Orascom Telecom Holding SAE, GDR
    07/27/09     $ 74,146     $ 3.6850  
  500    
Sistema JSFC, GDR
    10/10/07       17,384       29.1000  
 
(e)   Illiquid security.
 
  Non-income producing security.
 
††   Represents annualized yield at date of purchase.
 
ADR   American Depositary Receipt
 
CVO   Contingent Value Obligation.
 
GDR   Global Depositary Receipt.
 
OJSC   Open Joint Stock Company.
 
Strips   Regular coupon payment portion of security traded separately from the principal portion of the security.
See accompanying notes to schedule of investments.

5


 

THE GABELLI UTILITY TRUST
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)
     The Fund’s financial statements are 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 financial statements.
Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Trustees (the “Board”) so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the “Adviser”).
     Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market, but prior to the close of business on the day the securities are being valued. Debt 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).

6


 

THE GABELLI UTILITY TRUST
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 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 March 31, 2011 is as follows:
                                 
    Valuation Inputs    
    Level 1   Level 2   Level 3   Total
    Quoted   Other Significant   Significant   Market Value
    Prices   Observable Inputs   Unobservable Inputs   at 3/31/11
INVESTMENTS IN SECURITIES:
                               
ASSETS (Market Value):
                               
Common Stocks:
                               
ENERGY AND UTILITIES
                               
Energy and Utilities: Merchant Energy
  $ 4,183,683           $ 0     $ 4,183,683  
Other Industries (a)
    191,249,717                   191,249,717  
COMMUNICATIONS
                             
Telecommunications
    10,211,864             0       10,211,864  
Other Industries (a)
    16,315,504                   16,315,504  
OTHER (a)
    4,883,784                   4,883,784  
 
Total Common Stocks
    226,844,552             0       226,844,552  
 
Warrants (a)
        $ 128,258             128,258  
Convertible Corporate Bonds
          118,500             118,500  
U.S. Government Obligations
          1,284,492             1,284,492  
 
TOTAL INVESTMENTS IN SECURITIES — ASSETS
  $ 226,844,552     $ 1,531,250     $ 0     $ 228,375,802  
 
OTHER FINANCIAL INSTRUMENTS:
                               
ASSETS (Unrealized Appreciation):*
                               
EQUITY CONTRACT:
                               
Contract for Difference Swap Agreement
  $     $ 15,821     $     $ 15,821  
 
TOTAL OTHER FINANCIAL INSTRUMENTS
  $     $ 15,821     $     $ 15,821  
 
 
(a)   Please refer to the Schedule of Investments (“SOI”) for the industry classifications of these portfolio holdings.
 
*   Other financial instruments are derivatives reflected in the SOI, such as futures, forwards, and swaps, which are valued at the unrealized appreciation/depreciation of the instrument.
     The Fund did not have significant transfers between Level 1 and Level 2 during the period ended March 31, 2011.

7


 

THE GABELLI UTILITY TRUST
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:
                                                                                 
                                                                            Net change in
                                                                            unrealized
                                                                            appreciation/
                                                                            depreciation
                                                                            during the period
                            Change in                                           on Level 3
    Balance   Accrued   Realized   unrealized                   Transfers   Transfers   Balance   investments
    as of   discounts/   gain/   appreciation/                   into   out of   as of   held at
    12/31/10   (premiums)   (loss)   depreciation   Purchases   Sales   Level 3†   Level 3†   3/31/11   3/31/11
 
INVESTMENTS IN SECURITIES:
                                                                               
ASSETS (Market Value):
                                                                               
Common Stocks:
                                                                               
ENERGY AND UTILITIES
                                                                               
Energy and Utilities:
                                                                               
Merchant Energy
  $ 0     $     $     $     $     $     $     $     $ 0     $  
COMMUNICATIONS
                                                                               
Telecommunications
    0                                                 0        
 
Total Common Stocks
    0                                                 0        
 
Warrants:
                                                                               
ENERGY AND UTILITIES
                                                                               
Energy and Utilities:
                                                                               
Merchant Energy
    183             (51,616 )     51,433             (0 )                        
 
TOTAL INVESTMENTS IN SECURITIES
  $ 183     $     $ (51,616 )   $ 51,433     $     $ (0 )   $     $     $ 0     $  
 
 
  The Fund’s policy is to recognize transfers into and transfers out of Level 3 as of the beginning of the reporting period.
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 the current exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gain/loss on investments.
Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers.
Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

8


 

THE GABELLI UTILITY TRUST
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
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 hedging or protecting its exposure to interest rate movements and movements in the securities markets, 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 March 31, 2011, if any, are not accounted for as hedging instruments under GAAP.
     Swap Agreements. The Fund may enter into equity contract for difference and interest rate swap or cap transactions for the purpose of increasing the income of the Fund or hedging or protecting its exposure to interest rate movements and movements in the securities market. 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 interest rate swap, the Fund would agree to pay periodically to the other party (which is known as the “counterparty”) a fixed rate payment in exchange for the counterparty agreeing to pay to the Fund periodically a variable rate payment that is 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.
     During the period ended March 31, 2011, the Fund held no investments in interest rate swap agreements.
     The Fund has entered into an equity contract for difference swap agreement with The Goldman Sachs Group, Inc. Details of the swap at March 31, 2011 are reflected within the Schedule of Investments and further details are as follows:
                         
Notional   Equity Security   Interest Rate/   Termination   Net Unrealized
Amount   Received   Equity Security Paid   Date   Appreciation
 
  Market Value   One month LIBOR plus 90 bps plus                
 
  Appreciation on:   Market Value Depreciation on:                
$232,327 (25,000 Shares)
  Rolls-Royce Group plc   Rolls-Royce Group plc     6/27/11     $ 15,821  
     The Fund’s volume of activity in equity contract for difference swap agreements during the period ended March 31, 2011 had an average monthly notional amount of approximately $248,992.

9


 

THE GABELLI UTILITY TRUST
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
     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 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. During the period ended March 31, 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 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. In addition, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts. During the period ended March 31, 2011, the Fund held no investments in forward foreign exchange contracts.
     The following table summarizes the net unrealized appreciation of derivatives held at March 31, 2011 by primary risk exposure:
         
    Net Unrealized
Asset Derivatives:   Appreciation
Equity Contract
  $ 15,821  
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 $2,489,944 which are available to reduce future required distributions of net capital gains to shareholders. $890,229 of the loss carryforward is available through 2017; and $1,599,715 is available through 2018.

10


 

TRUSTEES AND OFFICERS
THE GABELLI UTILITY TRUST
One Corporate Center, Rye, NY 10580-1422
Trustees
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.
Vincent D. Enright
Former Senior Vice President &
Chief Financial Officer,
KeySpan Corp.
Frank J. Fahrenkopf, Jr.
President & Chief Executive Officer,
American Gaming Association
John D. Gabelli
Senior Vice President,
Gabelli & Company, Inc.
Robert J. Morrissey
Attorney-at-Law,
Morrissey, Hawkins & Lynch
Anthony R. Pustorino
Certified Public Accountant,
Professor Emeritus, Pace University
Salvatore J. Zizza
Chairman, Zizza & Co., Ltd.
Officers
Bruce N. Alpert
President
Peter D. Goldstein
Chief Compliance Officer
Agnes Mullady
Treasurer & Secretary
David I. Schachter
Vice President & Ombudsman
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
                 
            5.625%  
    Common     Preferred  
NYSE—Symbol:
  GUT   GUT PrA
Shares Outstanding:
    31,546,632       1,153,288  
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. The NASDAQ symbol for the Net Asset Value is “XGUTX.”

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, 2011
GUT Q1/2011

 


 

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  5/31/11
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  5/31/11
       
 
       
By (Signature and Title)*
  /s/ Agnes Mullady
 
   
 
  Agnes Mullady, Principal Financial Officer and Treasurer    
 
       
Date  5/31/11
       
 
*   Print the name and title of each signing officer under his or her signature.