N-Q 1 d71792dnq.htm GABELLI UTILITY TRUST Gabelli Utility Trust



Washington, D.C. 20549




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: September 30, 2015

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


Third Quarter Report — September 30, 2015





Mario J. Gabelli, CFA

Portfolio Manager

To Our Shareholders,

For the quarter ended September 30, 2015, the net asset value (“NAV”) total return of The Gabelli Utility Trust (the “Fund”) was 0.5%. The total return for the Standard & Poor’s (“S&P”) 500 Utilities Index was 5.4%. The total return for the Fund’s publicly traded shares was (5.0)%. The Fund’s NAV per share was $5.20, while the price of the publicly traded shares closed at $5.57 on the New York Stock Exchange (“NYSE”). See below for additional performance information.

Enclosed is the schedule of investments as of September 30, 2015.

Comparative Results



Average Annual Returns through September 30, 2015 (a) (Unaudited)

     Quarter     1 Year     5 Year     10 Year     15 Year     Inception

Gabelli Utility Trust


NAV Total Return (b)

     0.53     (0.02 )%      11.24     7.50     8.03     8.55

Investment Total Return (c)

     (4.99     (14.41     7.43        3.83        6.66        7.33   

S&P 500 Utilities Index

     5.40        6.57        11.04        6.69        4.29        5.88 (d) 

Lipper Utility Fund Average

     (4.24     (5.34     10.00        6.78        4.87        5.60   

S&P 500 Index

     (6.44     (0.61     13.34        6.80        3.96        3.90   

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 Utilities Index is an unmanaged market capitalization weighted index of large capitalization stocks that may include facilities generation and transmission or distribution of electricity, gas, or water. The Lipper Utility Fund Average reflects the average performance of mutual funds classified in this particular category. The S&P 500 Index is an unmanaged indicator of stock market performance. Dividends are considered reinvested. You cannot invest directly in an index.


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.


Total returns and average annual returns reflect changes in closing market values on the NYSE, reinvestment of distributions, and adjustments for rights offerings. Since inception return is based on an initial offering price of $7.50.


From June 30, 1999, the date closest to the Fund’s inception for which data is available.


The Gabelli Utility Trust

Schedule of Investments — September 30, 2015 (Unaudited)








  COMMON STOCKS — 96.3%   
  Alternative Energy — 0.3%   
  20,000      NextEra Energy Partners LP    $ 436,000   
  1,555      Ormat Technologies Inc.      52,448   
  12,000      Ormat Technologies Inc., New York      408,360   






  Electric Integrated — 48.5%   
  23,000      ALLETE Inc.      1,161,270   
  68,000      Alliant Energy Corp.      3,977,320   
  17,000      Ameren Corp.      718,590   
  70,000      American Electric Power Co. Inc.      3,980,200   
  10,000      Avista Corp.      332,500   
  50,000      Black Hills Corp.      2,067,000   
  70,000      Cleco Corp.      3,726,800   
  95,000      CMS Energy Corp.      3,355,400   
  23,000      Dominion Resources Inc.      1,618,740   
  18,000      DTE Energy Co.      1,446,660   
  75,000      Duke Energy Corp.      5,395,500   
  80,000      Edison International      5,045,600   
  170,000      El Paso Electric Co.      6,259,400   
  1,000      Emera Inc.      33,173   
  3,000      Entergy Corp.      195,300   
  270,000      Eversource Energy(a)      13,667,400   
  86,000      FirstEnergy Corp.      2,692,660   
  163,000      Great Plains Energy Inc.      4,404,260   
  64,000      Hawaiian Electric Industries Inc.      1,836,160   
  90,000      MGE Energy Inc.      3,707,100   
  89,000      NextEra Energy Inc.      8,681,950   
  48,000      NiSource Inc.      890,400   
  102,000      NorthWestern Corp.      5,490,660   
  187,000      OGE Energy Corp.      5,116,320   
  30,000      Otter Tail Corp.      781,800   
  48,000      PG&E Corp.      2,534,400   
  102,000      PNM Resources Inc.      2,861,100   
  38,000      Public Service Enterprise Group Inc.      1,602,080   
  53,000      SCANA Corp.      2,981,780   
  110,000      TECO Energy Inc.      2,888,600   
  25,000      The Empire District Electric Co.      550,750   
  16,500      Unitil Corp.      608,520   
  47,000      Vectren Corp.      1,974,470   
  280,000      WEC Energy Group Inc.      14,621,600   
  227,000      Westar Energy Inc.      8,725,880   
  175,000      Xcel Energy Inc.      6,196,750   






  Electric Transmission and Distribution — 3.4%   
  47,000      Consolidated Edison Inc.      3,141,950   
  125,000      Exelon Corp.      3,712,500   
  22,500      Pepco Holdings Inc.      544,950   





  36,666      UIL Holdings Corp.    $ 1,843,200   






  Global Utilities — 3.4%   
  8,000      Areva SA†      61,949   
  8,000      Chubu Electric Power Co. Inc.      117,434   
  133,000      Electric Power Development Co. Ltd.      4,041,054   
  27,000      Endesa SA      568,402   
  300,000      Enel SpA      1,336,864   
  494,900      Hera SpA      1,284,076   
  11,000      Hokkaido Electric Power Co. Inc.†      106,273   
  8,000      Hokuriku Electric Power Co.      107,098   
  3,000      Huaneng Power International Inc., ADR      126,900   
  41,000      Korea Electric Power Corp., ADR      840,090   
  15,000      Kyushu Electric Power Co. Inc.†      162,672   
  3,000      Niko Resources Ltd.†      112   
  8,000      Shikoku Electric Power Co. Inc.      129,705   
  8,000      The Chugoku Electric Power Co. Inc.      109,832   
  16,000      The Kansai Electric Power Co. Inc.†      176,985   
  13,000      Tohoku Electric Power Co. Inc.      175,226   






  Merchant Energy — 1.0%   
  300,000      GenOn Energy Inc., Escrow†      0   
  280,000      The AES Corp.(a)      2,741,200   






  Natural Gas Integrated — 5.3%   
  1,000      Devon Energy Corp.      37,090   
  90,000      Kinder Morgan Inc.      2,491,200   
  132,000      National Fuel Gas Co.      6,597,360   
  168,000      ONEOK Inc.      5,409,600   






  Natural Gas Utilities — 9.0%   
  90,000      AGL Resources Inc.      5,493,600   
  28,000      Atmos Energy Corp.      1,629,040   
  26,000      Chesapeake Utilities Corp.      1,380,080   
  48,000      Columbia Pipeline Group Inc.      877,920   
  20,000      CONSOL Energy Inc.      196,000   
  25,219      Corning Natural Gas Holding Co.      404,513   
  59,000      Delta Natural Gas Co. Inc.      1,207,140   
  11,445      Engie      184,669   
  42,000      ONE Gas Inc.      1,903,860   
  34,000      Piedmont Natural Gas Co. Inc.      1,362,380   
  12,000      RGC Resources Inc.      247,440   
  115,000      Southwest Gas Corp.      6,706,800   
  108,000      Spectra Energy Corp.      2,837,160   
  3,000      The Laclede Group Inc.      163,590   






  Natural Resources — 0.7%   
  5,000      Anadarko Petroleum Corp.      301,950   
  2,500      Apache Corp.      97,900   


See accompanying notes to schedule of investments.



The Gabelli Utility Trust

Schedule of Investments (Continued) — September 30, 2015 (Unaudited)








  COMMON STOCKS (Continued)   
  Natural Resources (Continued)   
  8,000      Atlas Resource Partners LP    $ 22,400   

Compania de Minas Buenaventura SAA, ADR

  10,000      Exxon Mobil Corp.      743,500   
  2,000      Hess Corp.      100,120   
  75,000      Peabody Energy Corp.      103,500   
  4,000      Royal Dutch Shell plc, Cl. A, ADR      189,560   






  Services — 0.2%   
  20,000      ABB Ltd., ADR      353,400   
  20,000      Weatherford International plc†      169,600   






  Water — 4.5%   
  27,000      American States Water Co.      1,117,800   
  27,000      American Water Works Co. Inc.      1,487,160   
  27,291      Aqua America Inc.      722,393   
  24,000      Artesian Resources Corp., Cl. A      579,360   
  40,000      California Water Service Group      884,800   
  7,500      Connecticut Water Service Inc.      273,900   
  50,000      Middlesex Water Co.      1,192,000   
  100,000      Severn Trent plc      3,303,835   
  85,000      SJW Corp.      2,613,750   
  9,000      The York Water Co.      189,180   






  Diversified Industrial — 1.0%   
  1,500      Alstom SA†      46,269   
  2,000      AZZ Inc.      97,380   
  100,000      General Electric Co.      2,522,000   






  Environmental Services — 0.3%   
  3,000      Suez Environnement Co.      53,736   
  30,000      Veolia Environnement SA      684,858   






  Equipment and Supplies — 0.1%   
  50,000      Capstone Turbine Corp.†      17,000   
  6,000      Mueller Industries Inc.      177,480   







Independent Power Producers and Energy
Traders — 0.2%


  42,802      NRG Energy Inc.      635,610   



  TOTAL ENERGY AND UTILITIES      212,353,976   



  Cable and Satellite — 7.2%   
  100,000      Cablevision Systems Corp., Cl. A      3,247,000   
  5,000      Cogeco Cable Inc.      241,664   
  20,000      Cogeco Inc.      799,550   





  58,000      DISH Network Corp., Cl. A†    $ 3,383,720   
  10,000      EchoStar Corp., Cl. A†      430,300   
  4,000      Internap Corp.†      24,520   
  22,500      Liberty Global plc, Cl. A†      966,150   
  60,000      Liberty Global plc, Cl. C†      2,461,200   
  1,125      Liberty Global plc. LiLAC, Cl. A†      37,901   
  3,000      Liberty Global plc. LiLAC, Cl. C†      102,720   
  8,000      Rogers Communications Inc., Cl. B      275,840   
  10,000      Sky plc      157,931   
  100,900      Telenet Group Holding NV†      5,780,500   
  9,000      Time Warner Cable Inc.      1,614,330   






  Communications Equipment — 0.1%   
  200,000      Furukawa Electric Co. Ltd.      313,425   
  1,000      QUALCOMM Inc.      53,730   






  Telecommunications — 5.0%   
  88,760      AT&T Inc.      2,891,801   
  1,280      BCE Inc., New York      52,429   
  67      BCE Inc., Toronto      2,742   
  10,000      BT Group plc, ADR      637,500   
  20,000      CenturyLink Inc.      502,400   
  280,000      Cincinnati Bell Inc.†      873,600   
  43,000      Deutsche Telekom AG, ADR      764,110   
  11,800      Global Telecom Holding SAE, GDR†      13,570   

Hutchison Telecommunications Hong Kong Holdings Ltd.

  1,000      Mobistar SA†      21,521   
  37,000      Nippon Telegraph & Telephone Corp.      1,288,592   
  2,000      Orange SA, ADR      30,240   

Orascom Telecom Media and Technology Holding SAE, GDR†

  30,000      Pharol SGPS SA†      8,950   
  3,000      Proximus      103,449   
  2,000      PT Indosat Tbk†      512   
  15,000      Sistema JSFC, GDR      103,200   
  1,200      Tele2 AB, Cl. B      11,677   
  10,000      Telefonica Deutschland Holding AG      61,022   
  85,000      Telekom Austria AG      479,172   
  25,000      T-Mobile US Inc.†      995,250   
  105,000      Verizon Communications Inc.      4,568,550   
  75,000      VimpelCom Ltd., ADR      308,625   






  Wireless Communications — 3.0%   
  1,200      America Movil SAB de CV, Cl. L, ADR      19,860   
  2,400,000      Cable & Wireless Communications plc      2,011,346   
  2,000      China Mobile Ltd., ADR      119,000   
  2,000      China Unicom Hong Kong Ltd., ADR      25,540   
  171      M1 Ltd.      339   


See accompanying notes to schedule of investments.



The Gabelli Utility Trust

Schedule of Investments (Continued) — September 30, 2015 (Unaudited)








  COMMON STOCKS (Continued)   
  COMMUNICATIONS (Continued)   
  Wireless Communications (Continued)   
  25,000      Millicom International Cellular SA, SDR    $ 1,562,136   
  1,154      Mobile Telesystems PJSC      3,757   
  11,250      Mobile TeleSystems PJSC, ADR      81,225   
  100,000      NTT DoCoMo Inc.      1,661,318   
  2,000      SK Telecom Co. Ltd., ADR      48,800   

SmarTone Telecommunications Holdings Ltd.

  25,000      Turkcell Iletisim Hizmetleri A/S, ADR      217,000   
  40,000      United States Cellular Corp.†      1,417,200   
  33,009      Vodafone Group plc, ADR      1,047,706   






  TOTAL COMMUNICATIONS      41,832,531   



  OTHER — 3.1%   
  Aerospace — 0.4%   
  100,000      Rolls-Royce Holdings plc      1,024,128   



  Agriculture — 0.0%   
  3,000      Cadiz Inc.†      21,780   



  Entertainment — 1.3%   
  150,000      Vivendi SA      3,541,618   



  Investment Companies — 1.0%   
  22,000      Kinnevik Investment AB, Cl. A      633,194   
  75,000      Kinnevik Investment AB, Cl. B      2,140,694   






  Transportation — 0.4%   
  25,000      GATX Corp.      1,103,750   



  TOTAL OTHER      8,465,164   



  TOTAL COMMON STOCKS      262,651,671   



  WARRANTS — 0.1%   
  Natural Gas Integrated — 0.1%   
  204,000      Kinder Morgan Inc., expire 05/25/17†      187,680   



  Wireless Communications — 0.0%   
  16,000      Bharti Airtel Ltd., expire 08/04/16†(b)      82,415   



  TOTAL WARRANTS      270,095   









U.S. Treasury Bills,
0.000% to 0.245%††,
10/08/15 to 02/25/16(c)

   $ 9,784,317   




(Cost $207,276,151)

   $ 272,706,083   



  Aggregate tax cost    $ 208,538,354   



  Gross unrealized appreciation    $ 78,881,864   
  Gross unrealized depreciation      (14,714,135




Net unrealized appreciation/depreciation

   $ 64,167,729   














Rolls-Royce Holdings plc(d)

  06/28/16    $ 33,163   








Securities, or a portion thereof, with a value of $6,538,850, are reserved and/or pledged with the custodian for current or potential holdings of swaps.


Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2015, the market value of the Rule 144A security amounted to $82,415 or 0.03% of total investments.


At September 30, 2015, $1,000,000 of the principal amount was pledged as collateral for the equity contract for difference swap agreements.


At September 30, 2015, the Fund had entered into equity contract for difference swap agreements with The Goldman Sachs Group, Inc.

Non-income producing security.


Represents annualized yield at date of purchase.


American Depositary Receipt


Global Depositary Receipt


Joint Stock Financial Corporation


Public Joint Stock Company


Swedish Depositary Receipt



See accompanying notes to schedule of investments.



The Gabelli Utility Trust

Notes to Schedule of Investments (Unaudited)



As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (“GAAP”) that may require the use of management estimates and assumptions in the preparation of its schedule of investments. 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 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.

Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S. dollar value American Depositary Receipt securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security.

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:


Level 1 — quoted prices in active markets for identical securities;


Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and


Level 3 — significant unobservable inputs (including the Board’s determinations as to the fair value of investments).



The Gabelli Utility Trust

Notes to Schedule of Investments (Unaudited) (Continued)




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, 2015 is as follows:


     Valuation Inputs
     Level 1
Quoted Prices
   Level 2 Other Significant
Observable Inputs
   Level 3 Significant
Unobservable Inputs
   Total Market Value
at 9/30/15



ASSETS (Market Value):


Common Stocks:




Merchant Energy

       $    2,741,200                   $  0          $    2,741,200  

Natural Gas Utilities

       24,189,679          $    404,513                   24,594,192  

Other Industries (a)

       185,018,584                            185,018,584  



Other Industries (a)

       41,832,531                            41,832,531  



Other Industries (a)

       8,465,164                            8,465,164  

Total Common Stocks

       262,247,158          404,513          0          262,651,671  

Warrants (a)

       187,680          82,415                   270,095  

U.S. Government Obligations

                9,784,317                   9,784,317  


       $262,434,838          $10,271,245          $  0          $272,706,083  



ASSETS (Unrealized Appreciation):




Contract for Difference Swap Agreements

                $      33,163                   $        33,163  


                $      33,163                   $        33,163  



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 options, futures, forwards, and swaps, which may be valued at the unrealized appreciation/depreciation of the instrument.

The Fund did not have transfers among Level 1, Level 2, and Level 3 during the period ended September 30, 2015. The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

Additional Information to Evaluate Qualitative Information.

General. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds is ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

Fair Valuation. Fair valued securities may be common and preferred equities, warrants, options, rights, and fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or



The Gabelli Utility Trust

Notes to Schedule of Investments (Unaudited) (Continued)




which are restricted as to transfer. Among the factors to be considered to fair value a security are recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These include back testing the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

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 September 30, 2015, are not accounted for as hedging instruments under GAAP and are disclosed in the Schedule of Investments together with the related counterparty.

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 an equity contract for difference 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.



The Gabelli Utility Trust

Notes to Schedule of Investments (Unaudited) (Continued)




The Fund has entered into an equity contract for difference swap agreement with The Goldman Sachs Group, Inc. Details of the swap at September 30, 2015 are reflected within the Schedule of Investments and further details are as follows:





Equity Security



Interest Rate/
Equity Security Paid





Net Unrealized

   Market Value
Appreciation on:
   One month LIBOR plus 90 bps plus

Market Value Depreciation on:


$990,965 (100,000 Shares)

   Rolls-Royce Holdings plc    Rolls-Royce Holdings plc    06/28/16    $33,163

Limitations on the Purchase and Sale of Futures Contracts, Certain Options, and Swaps. Subject to the guidelines of the Board, the Fund may engage in “commodity interest” transactions (generally, transactions in futures, certain options, certain currency transactions, and certain types of swaps) only for bona fide hedging or other permissible transactions in accordance with the rules and regulations of the Commodity Futures Trading Commission (“CFTC”). Pursuant to amendments by the CFTC to Rule 4.5 under the Commodity Exchange Act (“CEA”), the Adviser has filed a notice of exemption from registration as a “commodity pool operator” with respect to the Fund. The Fund and the Adviser are therefore not subject to registration or regulation as a commodity pool operator under the CEA. In addition, certain trading restrictions are now applicable to the Fund as of January 1, 2013. These trading restrictions permit the Fund to engage in commodity interest transactions that include (i) “bona fide hedging” transactions, as that term is defined and interpreted by the CFTC and its staff, without regard to the percentage of the Fund’s assets committed to margin and options premiums and (ii) non-bona fide hedging transactions, provided that the Fund does not enter into such non-bona fide hedging transactions if, immediately thereafter, either (a) the sum of the amount of initial margin deposits on the Fund’s existing futures positions or swaps positions and option or swaption premiums would exceed 5% of the market value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions, or (b) the aggregate net notional value of the Fund’s commodity interest transactions would not exceed 100% of the market value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions. Therefore, in order to claim the Rule 4.5 exemption, the Fund is limited in its ability to invest in commodity futures, options, and certain types of swaps (including securities futures, broad based stock index futures, and financial futures contracts). As a result, in the future, the Fund will be more limited in its ability to use these instruments than in the past, and these limitations may have a negative impact on the ability of the Adviser to manage the Fund, and on the Fund’s performance.

Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at current exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually



The Gabelli Utility Trust

Notes to Schedule of Investments (Unaudited) (Continued)




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.

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.




One Corporate Center

Rye, NY 10580-1422

Portfolio Manager Biography

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





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

The 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.”

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.


One Corporate Center

Rye, NY 10580-1422

t  800-GABELLI (800-422-3554)

f  914-921-5118

e  info@gabelli.com






Mario J. Gabelli, CFA

Chairman &

Chief Executive Officer,

GAMCO Investors, Inc.


Anthony J. Colavita


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.

Former President &

Chief Executive Officer,

American Gaming Association


John D. Gabelli

Senior Vice President,

G.research, LLC


Robert J. Morrissey


Morrissey, Hawkins & Lynch


Kuni Nakamura


Advanced Polymer, Inc.


Anthony R. Pustorino

Certified Public Accountant,

Professor Emeritus,

Pace University


Salvatore J. Zizza


Zizza & Associates Corp.


Bruce N. Alpert



Andrea R. Mango

Secretary & Vice President


Agnes Mullady



Richard J. Walz

Chief Compliance Officer


David I. Schachter

Vice President & Ombudsman




Gabelli Funds, LLC

One Corporate Center

Rye, New York 10580-1422




The Bank of New York Mellon




Willkie Farr & Gallagher LLP





Computershare Trust Company, N.A.



GUT Q3/2015



Item 2. Controls and Procedures.



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)).



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.


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.




    The Gabelli Utility Trust


By (Signature and Title)*


  /s/ Bruce N. Alpert


      Bruce N. Alpert, Principal Executive Officer





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






By (Signature and Title)*


  /s/ Agnes Mullady


       Agnes Mullady, Principal Financial Officer and Treasurer





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