Gabelli Utility Trust

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-09243

 

 

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: December 31, 2011

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 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. Reports to Stockholders.

The Report to Shareholders is attached herewith.


The Gabelli Utility Trust

Annual Report

December 31, 2011

 

LOGO

Mario J. Gabelli, CFA

 

 

To Our Shareholders,

The Sarbanes-Oxley Act requires a fund’s principal executive and financial officers to certify the entire contents of the semiannual and annual shareholder reports in a filing with the Securities and Exchange Commission (“SEC”) on Form N-CSR. This certification would cover the portfolio manager’s commentary and subjective opinions if they are attached to or a part of the financial statements. Many of these comments and opinions would be difficult or impossible to certify.

Because we do not want our portfolio manager to eliminate his opinions and/or restrict his commentary to historical facts, we have separated his commentary from the financial statements and investment portfolio and have sent it to you separately. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com.

Investment Performance

For the year ended December 31, 2011, the net asset value (“NAV”) total return of The Gabelli Utility Trust (the “Fund”) was 19.2%, compared with a total return of 19.9% for the Standard & Poor’s (“S&P”) 500 Utilities Index. The total return for the Fund’s publicly traded shares was 33.7%. On December 31, 2011, the Fund’s NAV per share was $5.69, while the price of the publicly traded shares closed at $7.80 on the New York Stock Exchange (“NYSE”).

Enclosed are the schedule of investments and financial statements as of December 31, 2011.

 

    Sincerely yours,
    LOGO

 

February 22, 2012

   

Bruce N. Alpert

President

Comparative Results

 

 

Average Annual Returns through December 31, 2011 (a) (Unaudited)

 
    

1 Year

   

5 Year

   

10 Year

   

Since
Inception
(07/09/99)

 

Gabelli Utility Trust

        

NAV Total Return (b)

     19.16     5.01     8.73     8.76

Investment Total Return (c)

     33.67        4.84        7.00        9.39   

S&P 500 Utilities Index

     19.91        3.71        6.42        4.89 (d) 

S&P 500 Index

     2.11        (0.25     2.92        1.13   

Lipper Utility Fund Average

     12.43        2.89        6.96        4.70   
  (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 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 S&P 500 Index is an unmanaged indicator of stock market 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 NYSE, 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.  


THE GABELLI UTILITY TRUST

Summary of Portfolio Holdings (Unaudited)

The following table presents portfolio holdings as a percent of total investments as of December 31, 2011:

 

Energy and Utilities: Electric Integrated

     47.0%   

Energy and Utilities: Natural Gas Integrated

     12.6%   

Energy and Utilities: Electric Transmission and Distribution

     9.0%   

Energy and Utilities: Natural Gas Utilities

     8.0%   

Telecommunications

     4.0%   

Cable and Satellite

     3.7%   

Energy and Utilities: Water

     3.0%   

Energy and Utilities: Global Utilities

     2.3%   

Wireless Communications

     2.2%   

Energy and Utilities: Merchant Energy

     1.5%   

U.S. Government Obligations

     1.5%   

Energy and Utilities: Natural Resources

     1.2%   

Diversified Industrial

     0.9%   

Entertainment

     0.8%   

Transportation

     0.5%   

Aerospace

     0.5%   

Independent Power Producers and Energy Traders

     0.3%   

Communications Equipment

     0.3%   

Energy and Utilities: Services

     0.3%   

Energy and Utilities: Alternative Energy

     0.1%   

Environmental Services

     0.1%   

Real Estate

     0.1%   

Equipment and Supplies

     0.1%   

Investment Companies

     0.0%   

Agriculture

     0.0%   

Financial Services

     0.0%   
  

 

 

 
     100.0%   
  

 

 

 
 

 

The Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Shareholders may obtain this information at www.gabelli.com or by calling the Fund at 800-GABELLI (800-422-3554). The Fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330.

Proxy Voting

The Fund files Form N-PX with its complete proxy voting record for the twelve months ended June 30th, no later than August 31st of each year. A description of the Fund’s proxy voting policies, procedures, and how the Fund voted proxies relating to portfolio securities is available without charge, upon request, by (i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC’s website at www.sec.gov.

 

2


THE GABELLI UTILITY TRUST

SCHEDULE OF INVESTMENTS

December 31, 2011

 

Shares

       

Cost

   

Market
Value

 
     
 

COMMON STOCKS — 98.4%

  

 
 

ENERGY AND UTILITIES — 86.3%

  

 
 

Energy and Utilities: Alternative Energy — 0.1%

  

  4,500     

Ormat Industries Ltd.

  $ 61,284      $ 21,372   
  11,000     

Ormat Technologies Inc.

    234,176        198,330   
  8,100     

Renegy Holdings Inc.†

    57,108        931   
   

 

 

   

 

 

 
      352,568        220,633   
   

 

 

   

 

 

 
 

Energy and Utilities: Electric Integrated — 47.0%

  

  23,000     

ALLETE Inc.

    728,776        965,540   
  75,000     

Alliant Energy Corp.

    1,824,382        3,308,250   
  17,000     

Ameren Corp.

    560,038        563,210   
  75,000     

American Electric Power Co. Inc.

    2,478,398        3,098,250   
  355     

Atlantic Power Corp.†

    5,902        5,063   
  10,000     

Avista Corp.

    199,636        257,500   
  50,000     

Black Hills Corp.

    1,431,322        1,679,000   
  26,000     

Central Vermont Public Service Corp.

    482,572        912,600   
  27,000     

Cleco Corp.

    524,506        1,028,700   
  114,000     

CMS Energy Corp.

    1,363,739        2,517,120   
  110,000     

Constellation Energy Group Inc.

    2,873,435        4,363,700   
  29,000     

Dominion Resources Inc.

    1,273,200        1,539,320   
  23,000     

DTE Energy Co.

    934,776        1,252,350   
  122,000     

Duke Energy Corp.

    2,350,704        2,684,000   
  80,000     

Edison International

    3,504,228        3,312,000   
  172,000     

El Paso Electric Co.

    3,176,667        5,958,080   
  1,000     

Emera Inc.

    21,639        32,432   
  3,000     

Entergy Corp.

    75,249        219,150   
  101,000     

FirstEnergy Corp.

    4,414,050        4,474,300   
  192,000     

Great Plains Energy Inc.

    4,970,683        4,181,760   
  52,000     

Hawaiian Electric Industries Inc.

    1,253,981        1,376,960   
  89,000     

Integrys Energy Group Inc.

    4,500,171        4,822,020   
  63,000     

MGE Energy Inc.

    1,859,897        2,946,510   
  95,000     

NextEra Energy Inc.

    4,094,308        5,783,600   
  48,000     

NiSource Inc.

    1,020,000        1,142,880   
  106,000     

NorthWestern Corp.

    3,198,687        3,793,740   
  35,000     

NV Energy Inc.

    312,248        572,250   
  99,000     

OGE Energy Corp.

    2,383,280        5,614,290   
  25,000     

Otter Tail Corp.

    644,911        550,500   
  48,000     

PG&E Corp.

    1,280,160        1,978,560   
  100,000     

PNM Resources Inc.

    1,119,082        1,823,000   
  90,000     

Progress Energy Inc.

    3,909,356        5,041,800   
  40,000     

Progress Energy Inc., CVO†

    20,800        29,360   
  38,000     

Public Service Enterprise Group Inc.

    996,629        1,254,380   
  59,000     

SCANA Corp.

    1,872,087        2,658,540   
  104,000     

TECO Energy Inc.

    1,548,928        1,990,560   
  25,000     

The Empire District Electric Co.

    515,057        527,250   
  136,000     

UniSource Energy Corp.

    4,144,089        5,021,120   
  16,500     

Unitil Corp.

    427,366        468,270   
  47,000     

Vectren Corp.

    1,162,166        1,420,810   
  247,000     

Westar Energy Inc.

    5,636,700        7,108,660   
  180,000     

Wisconsin Energy Corp.

    3,273,387        6,292,800   
  179,000     

Xcel Energy Inc.

    3,118,075        4,947,560   
   

 

 

   

 

 

 
      81,485,267        109,517,745   
   

 

 

   

 

 

 
 

Energy and Utilities: Electric Transmission and Distribution — 9.0%

   

  243     

Brookfield Infrastructure Partners LP

    5,103        6,731   
  50,000     

CH Energy Group Inc.

    2,261,677        2,919,000   
  56,000     

Consolidated Edison Inc.

    2,529,105        3,473,680   
  120,000     

Northeast Utilities

    2,350,870        4,328,400   
  180,000     

NSTAR

    4,335,597        8,452,800   
  22,500     

Pepco Holdings Inc.

    449,918        456,750   
  36,666     

UIL Holdings Corp.

    966,693        1,296,876   
   

 

 

   

 

 

 
      12,898,963        20,934,237   
   

 

 

   

 

 

 

Shares

       

Cost

   

Market
Value

 
     
 

Energy and Utilities: Global Utilities — 2.3%

  

  16,250     

Areva SA†

  $ 668,415      $ 401,492   
  8,000     

Chubu Electric Power Co. Inc.

    189,551        149,357   
  38,000     

Electric Power Development Co. Ltd.

    1,392,829        1,010,601   
  33,000     

Endesa SA

    1,147,457        676,956   
  300,000     

Enel SpA

    1,862,753        1,220,734   
  290,000     

Hera SpA

    419,245        413,991   
  8,000     

Hokkaido Electric Power Co. Inc.

    156,870        113,915   
  8,000     

Hokuriku Electric Power Co.

    146,449        149,357   
  3,000     

Huaneng Power International Inc., ADR

    81,590        63,060   
  35,000     

Korea Electric Power Corp., ADR†

    565,727        384,300   
  8,000     

Kyushu Electric Power Co. Inc.

    167,818        114,538   
  2,000     

Niko Resources Ltd.

    113,769        94,685   
  8,000     

Shikoku Electric Power Co. Inc.

    155,987        229,284   
  8,000     

The Chugoku Electric Power Co. Inc.

    150,761        140,210   
  8,000     

The Kansai Electric Power Co. Inc.

    158,472        122,749   
  14,500     

Tohoku Electric Power Co. Inc.

    275,870        139,217   
   

 

 

   

 

 

 
      7,653,563        5,424,446   
   

 

 

   

 

 

 
 

Energy and Utilities: Merchant Energy — 1.5%

  

  23,000     

Dynegy Inc.†

    103,656        63,710   
  23,048     

GenOn Energy Inc.†

    37,369        60,155   
  300,000     

GenOn Energy Inc., Escrow† (a)

    0        0   
  290,000     

The AES Corp.†

    3,532,328        3,433,600   
   

 

 

   

 

 

 
      3,673,353        3,557,465   
   

 

 

   

 

 

 
 

Energy and Utilities: Natural Gas Integrated — 12.6%

  

  334,459     

El Paso Corp.

    3,476,886        8,886,576   
  1,000     

Energen Corp.

    66,090        50,000   
  127,000     

National Fuel Gas Co.

    4,287,736        7,058,660   
  99,000     

ONEOK Inc.

    2,652,787        8,582,310   
  115,000     

Southern Union Co.

    1,956,668        4,842,650   
   

 

 

   

 

 

 
      12,440,167        29,420,196   
   

 

 

   

 

 

 
 

Energy and Utilities: Natural Gas Utilities — 8.0%

  

  93,056     

AGL Resources Inc.

    3,328,906        3,932,546   
  31,000     

Atmos Energy Corp.

    770,701        1,033,850   
  21,000     

Chesapeake Utilities Corp.

    521,777        910,350   
  11,000     

CONSOL Energy Inc.

    376,317        403,700   
  22,418     

Corning Natural Gas Corp.

    240,181        372,579   
  30,000     

Delta Natural Gas Co. Inc.

    502,057        1,030,500   
  11,445     

GDF Suez

    387,206        312,843   
  11,445     

GDF Suez†

    0        15   
  35,000     

Piedmont Natural Gas Co. Inc.

    553,257        1,189,300   
  12,000     

RGC Resources Inc.

    128,344        216,840   
  134,000     

Southwest Gas Corp.

    3,656,236        5,693,660   
  112,000     

Spectra Energy Corp.

    3,057,603        3,444,000   
   

 

 

   

 

 

 
      13,522,585        18,540,183   
   

 

 

   

 

 

 
 

Energy and Utilities: Natural Resources — 1.2%

  

  4,000     

Anadarko Petroleum Corp.

    197,150        305,320   
  32,000     

Compania de Minas Buenaventura SA, ADR

    360,262        1,226,880   
  10,000     

Exxon Mobil Corp.

    547,153        847,600   
  3,000     

Peabody Energy Corp.

    112,025        99,330   
  4,000     

Royal Dutch Shell plc, Cl. A, ADR

    237,320        292,360   
   

 

 

   

 

 

 
      1,453,910        2,771,490   
   

 

 

   

 

 

 
 

Energy and Utilities: Services — 0.3%

  

  25,000     

ABB Ltd., ADR†

    273,075        470,750   
  2,400     

Tenaris SA, ADR

    104,090        89,232   
   

 

 

   

 

 

 
      377,165        559,982   
   

 

 

   

 

 

 
 

 

See accompanying notes to financial statements.

 

3


THE GABELLI UTILITY TRUST

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2011

 

Shares

       

Cost

   

Market
Value

 
     
 

COMMON STOCKS (Continued)

  

 
 

ENERGY AND UTILITIES (Continued)

  

 

Energy and Utilities: Water — 3.0%

  

 
  13,500     

American States Water Co.

  $ 300,087      $ 471,150   
  27,000     

American Water Works Co. Inc.

    580,500        860,220   
  21,833     

Aqua America Inc.

    221,008        481,418   
  24,000     

Artesian Resources Corp., Cl. A

    249,469        451,920   
  40,000     

California Water Service Group

    555,152        730,400   
  7,500     

Connecticut Water Service Inc.

    146,455        203,475   
  50,000     

Middlesex Water Co.

    784,887        933,000   
  28,000     

Pennichuck Corp.

    564,074        807,240   
  80,000     

SJW Corp.

    1,482,532        1,891,200   
  9,000     

The York Water Co.

    108,269        158,760   
   

 

 

   

 

 

 
      4,992,433        6,988,783   
   

 

 

   

 

 

 
 

Diversified Industrial — 0.9%

  

  1,500     

Alstom SA

    125,263        45,486   
  6,000     

Cooper Industries plc

    123,352        324,900   
  100,000     

General Electric Co.

    1,487,153        1,791,000   
   

 

 

   

 

 

 
      1,735,768        2,161,386   
   

 

 

   

 

 

 
 

Equipment and Supplies — 0.1%

  

 
  50,000     

Capstone Turbine Corp.†

    83,080        58,000   
  1,400     

Mueller Industries Inc.

    61,613        53,788   
   

 

 

   

 

 

 
      144,693        111,788   
   

 

 

   

 

 

 
 

Environmental Services — 0.0%

  

 
  3,000     

Suez Environnement Co. SA

    0        34,560   
   

 

 

   

 

 

 
 

Independent Power Producers and Energy Traders — 0.3%

  

  40,000     

NRG Energy Inc.†

    966,620        724,800   
   

 

 

   

 

 

 
 

TOTAL ENERGY AND UTILITIES

    141,697,055        200,967,694   
   

 

 

   

 

 

 
 

COMMUNICATIONS — 10.2%

  

 
 

Cable and Satellite — 3.7%

  

  17,000     

AMC Networks Inc., Cl. A†

    361,067        638,860   
  1,000     

British Sky Broadcasting Group plc

    11,266        11,376   
  72,000     

Cablevision Systems Corp., Cl. A

    1,045,465        1,023,840   
  5,000     

Cogeco Cable Inc.

    105,008        252,024   
  20,000     

Cogeco Inc.

    389,461        949,988   
  30,000     

DIRECTV, Cl. A†

    480,619        1,282,800   
  59,000     

DISH Network Corp., Cl. A

    1,186,534        1,680,320   
  10,000     

EchoStar Corp., Cl. A†

    280,860        209,400   
  21,000     

Liberty Global Inc., Cl. A†

    461,896        861,630   
  20,000     

Liberty Global Inc., Cl. C†

    421,966        790,400   
  8,000     

Rogers Communications Inc., Cl. B

    119,139        308,080   
  10,000     

Time Warner Cable Inc.

    414,005        635,700   
   

 

 

   

 

 

 
      5,277,286        8,644,418   
   

 

 

   

 

 

 
 

Communications Equipment — 0.3%

  

 
  245,000     

Furukawa Electric Co. Ltd.

    1,129,666        563,401   
  1,000     

QUALCOMM Inc.

    37,010        54,700   
   

 

 

   

 

 

 
      1,166,676        618,101   
   

 

 

   

 

 

 
 

Telecommunications — 4.0%

   
  40,000     

AT&T Inc.

    1,039,608        1,209,600   
  2,000     

Belgacom SA

    69,509        62,745   
  3,800     

Bell Aliant Inc. (b)

    101,567        106,642   
  11,000     

BT Group plc, ADR

    343,602        326,040   
  200,000     

Cincinnati Bell Inc.†

    785,587        606,000   
  42,000     

Deutsche Telekom AG, ADR

    666,467        480,900   
  2,000     

France Telecom SA, ADR

    22,799        31,320   
  200     

Hutchison Telecommunications Hong Kong Holdings Ltd.

    19        77   

Shares

       

Cost

   

Market
Value

 
     
  500     

Mobistar SA

  $ 41,057      $ 26,202   
  18,500     

Nippon Telegraph & Telephone Corp.

    859,917        945,791   
  11,800     

Orascom Telecom Holding SAE,
GDR† (c)

    74,146        34,102   
  16,000     

Portugal Telecom SGPS SA

    203,853        92,150   
  2,000     

PT Indosat Tbk

    1,061        1,246   
  500     

Sistema JSFC, GDR (c)

    17,384        8,405   
  1,200     

Tele2 AB, Cl. B

    14,604        23,348   
  27,000     

Telekom Austria AG

    403,751        322,819   
  40,000     

Touch America Holdings
Inc.† (a)

    38,488        0   
  110,000     

Verizon Communications Inc.

    3,846,319        4,413,200   
  75,000     

VimpelCom Ltd., ADR

    720,805        710,250   
   

 

 

   

 

 

 
      9,250,543        9,400,837   
   

 

 

   

 

 

 
 

Wireless Communications — 2.2%

  

 
  1,200     

America Movil SAB de CV, Cl. L, ADR

    9,424        27,120   
  2,000     

China Mobile Ltd., ADR

    33,988        96,980   
  2,000     

China Unicom Hong Kong Ltd., ADR

    16,278        42,260   
  171     

M1 Ltd.

    210        330   
  13,000     

Millicom International Cellular SA, SDR

    936,446        1,302,446   
  11,250     

Mobile TeleSystems OJSC, ADR

    175,074        165,150   
  1,154     

Mobile Telesystems OJSC, Russian Trading System Stock Exchange

    6,303        7,213   
  1,000     

NTT DoCoMo Inc.

    1,438,659        1,838,379   
  600     

SK Telecom Co. Ltd., ADR

    12,374        8,166   
  400     

SmarTone Telecommunications Holdings Ltd.

    207        692   
  24,000     

Turkcell Iletisim Hizmetleri A/S, ADR†

    393,270        282,240   
  29,000     

United States Cellular Corp.†

    1,356,795        1,265,270   
   

 

 

   

 

 

 
      4,379,028        5,036,246   
   

 

 

   

 

 

 
 

TOTAL COMMUNICATIONS

    20,073,533        23,699,602   
   

 

 

   

 

 

 
 

OTHER — 1.9%

   
 

Aerospace — 0.5%

   
  100,000     

Rolls-Royce Holdings plc

    809,939        1,159,305   
  6,900,000     

Rolls-Royce Holdings plc,
Cl. C† (d)

    10,980        10,716   
   

 

 

   

 

 

 
      820,919        1,170,021   
   

 

 

   

 

 

 
 

Agriculture — 0.0%

   
  3,000     

Cadiz Inc.†

    30,211        28,890   
   

 

 

   

 

 

 
 

Entertainment — 0.8%

  

 
  85,000     

Vivendi SA

    2,892,807        1,861,386   
   

 

 

   

 

 

 
 

Financial Services — 0.0%

  

 
  26     

Leucadia National Corp.

    0        598   
   

 

 

   

 

 

 
 

Investment Companies — 0.0%

  

  3,000     

Kinnevik Investment AB, Cl. B

    41,537        58,456   
   

 

 

   

 

 

 
 

Real Estate — 0.1%

   
  4,500     

Brookfield Asset Management Inc., Cl. A

    48,735        123,660   
   

 

 

   

 

 

 
 

Transportation — 0.5%

  

 
  30,000     

GATX Corp.

    911,610        1,309,800   
   

 

 

   

 

 

 
 

TOTAL OTHER

    4,745,819        4,552,811   
   

 

 

   

 

 

 
 

TOTAL COMMON STOCKS

    166,516,407        229,220,107   
   

 

 

   

 

 

 
 

 

See accompanying notes to financial statements.

 

4


THE GABELLI UTILITY TRUST

SCHEDULE OF INVESTMENTS (Continued)

December 31, 2011

 

Shares

       

Cost

   

Market
Value

 
     
 

WARRANTS — 0.0%

   
 

COMMUNICATIONS — 0.0%

  

 
 

Wireless Communications — 0.0%

  

 
  16,000     

Bharti Airtel Ltd., expire 09/19/13† (a)(b)

  $ 108,378      $ 103,571   
   

 

 

   

 

 

 

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

    100,000        104,750   
   

 

 

   

 

 

 
 

U.S. GOVERNMENT OBLIGATIONS — 1.5%

  

  3,445,000     

U.S. Treasury Bills,
0.000% to 0.055%††,
03/08/12 to 06/14/12 (e)

    3,444,404        3,444,544   
   

 

 

   

 

 

 

 

TOTAL INVESTMENTS — 100.0%

  $ 170,169,189        232,872,972   
   

 

 

   

Notional

Amount

       

Termination
Date

   

Unrealized
Appreciation/
Depreciation

 
 

EQUITY CONTRACT FOR DIFFERENCE
SWAP AGREEMENTS — 0.0%

   

$ 276,908         
  (25,000  Shares)   

Rolls-Royce Holdings plc

    06/27/12        12,817   
  2,724         
  (1,725,000  Shares)   

Rolls-Royce Holdings plc, Cl. C

    06/27/12        (45
     

 

 

 
 

TOTAL EQUITY CONTRACT FOR DIFFERENCE SWAP AGREEMENTS

   

    12,772   
     

 

 

 

Other Assets and Liabilities (Net)

    (449,942

PREFERRED STOCK
(1,154,188 preferred shares outstanding)

    (51,332,200
     

 

 

 

NET ASSETS — COMMON SHARES
(31,845,923 common shares outstanding)

    $ 181,103,602   
     

 

 

 

NET ASSET VALUE PER COMMON SHARE
($181,103,602 ÷ 31,845,923 shares outstanding)

    $5.69   
     

 

 

 

 

(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 December 31, 2011, the fair valued securities amounted to $103,571 or 0.04% 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 December 31, 2011, the market value of Rule 144A securities amounted to $210,213 or 0.09% of total investments.
(c) Security 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 December 31, 2011, the market value of Regulation S securities amounted to $42,507 or 0.02% of total investments, which were valued under methods approved by the Board of Trustees as follows:

 

Acquisition
Shares

   

Issuer

 

Acquisition
Date

   

Acquisition
Cost

   

12/31/11
Carrying
Value
Per Unit

 
  11,800     

Orascom Telecom Holding SAE, GDR

    07/27/09      $ 74,146      $ 2.8900   
  500     

Sistema JSFC, GDR

    10/10/07        17,384        16.8100   

 

(d) At December 31, 2011, the Fund held an investment in a restricted and illiquid security amounting to $10,716 or 0.00% of total investments, which was valued under methods approved by the Board of Trustees as follows:

 

Acquisition
Shares

   

Issuer

 

Acquisition
Date

   

Acquisition
Cost

   

12/31/11
Carrying
Value
Per Unit

 
  6,900,000     

Rolls-Royce Holdings plc, Cl. C

    10/26/11        10,980        0.0016   

 

(e) At December 31, 2011 $350,000 of the principal amount was pledged as collateral for equity contract for difference swap agreements.
Non-income producing security.
†† Represents annualized yield at date of purchase.
ADR American Depositary Receipt
CVO Contingent Value Obligation
GDR Global Depositary Receipt
JSFC Joint Stock Financial Corporation
OJSC Open Joint Stock Company
SDR Swedish Depositary Receipt
 

 

See accompanying notes to financial statements.

 

5


THE GABELLI UTILITY TRUST

 

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2011

 

Assets:

  

Investments, at value (cost $170,169,189)

   $ 232,872,972   

Foreign currency, at value (cost $1,533)

     1,508   

Cash

     59,277   

Dividends and interest receivable

     511,920   

Unrealized appreciation on swap contracts

     12,817   

Deferred offering expense

     84,669   
  

 

 

 

Total Assets

     233,543,163   
  

 

 

 

Liabilities:

  

Distributions payable

     26,190   

Payable for investment advisory fees

     662,585   

Payable for payroll expenses

     34,177   

Payable for accounting fees

     3,750   

Payable for auction agent fees

     199,836   

Payable for shareholder communications expenses

     94,390   

Payable for legal and audit fees

     60,537   

Unrealized depreciation on swap contracts

     45   

Other accrued expenses

     25,851   
  

 

 

 

Total Liabilities

     1,107,361   
  

 

 

 

Preferred Shares:

  

Series A Cumulative Preferred Shares (5.625%, $25 liquidation value, $0.001 par value, 1,200,000 shares authorized with 1,153,288 shares issued and outstanding)

     28,832,200   

Series B Cumulative Preferred Shares (Auction Market, $25,000 liquidation value, $0.001 par value, 1,000 shares authorized with 900 shares issued and outstanding)

     22,500,000   
  

 

 

 

Total Preferred Shares

     51,332,200   
  

 

 

 

Net Assets Attributable to Common Shareholders

   $ 181,103,602   
  

 

 

 

Net Assets Attributable to Common Shareholders Consist of:

  

Paid-in capital

   $ 119,697,208   

Accumulated distributions in excess of net investment income

     (78,688

Accumulated distributions in excess of net realized gain on investments, swap contracts, and foreign currency transactions

     (1,230,898

Net unrealized appreciation on investments

     62,703,783   

Net unrealized appreciation on swap contracts

     12,772   

Net unrealized depreciation on foreign currency translations

     (575
  

 

 

 

Net Assets

   $ 181,103,602   
  

 

 

 

Net Asset Value per Common Share:

  

($181,103,602 ÷ 31,845,923 shares outstanding at $0.001 par value; unlimited number of shares authorized)

     $5.69   
  

 

 

 

STATEMENT OF OPERATIONS

December 31, 2011

 

Investment Income:

  

Dividends (net of foreign withholding taxes of $104,869)

   $ 8,033,093   

Interest

     4,529   
  

 

 

 

Total Investment Income

     8,037,622   
  

 

 

 

Expenses:

  

Investment advisory fees

     2,248,725   

Shareholder communications expenses

     262,988   

Shareholder services fees

     151,083   

Offering expenses related to shelf registration (see Note 5)

     123,086   

Legal and audit fees

     120,625   

Payroll expenses

     108,851   

Trustees’ fees

     102,245   

Accounting fees

     45,000   

Auction agent fees

     36,234   

Custodian fees

     30,783   

Miscellaneous expenses

     95,078   
  

 

 

 

Total Expenses

     3,324,698   
  

 

 

 

Net Investment Income

     4,712,924   
  

 

 

 

Net Realized and Unrealized Gain/(Loss) on Investments, Swap Contracts, and Foreign Currency:

  

Net realized gain on investments

     3,021,166   

Net realized gain on swap contracts

     39,754   

Net realized loss on foreign currency transactions

     (6,543
  

 

 

 

Net realized gain on investments, swap contracts, and foreign currency transactions

     3,054,377   
  

 

 

 

Net change in unrealized appreciation/depreciation:

  

on investments

     24,021,562   

on swap contracts

     13,409   

on foreign currency translations

     (1,111
  

 

 

 

Net change in unrealized appreciation/depreciation on investments, swap contracts, and foreign currency translations

     24,033,860   
  

 

 

 

Net Realized and Unrealized Gain/(Loss) on Investments, Swap Contracts, and Foreign Currency

     27,088,237   
  

 

 

 

Net Increase in Net Assets Resulting from Operations

     31,801,161   
  

 

 

 

Total Distributions to Preferred Shareholders

     (1,952,362
  

 

 

 

Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations

   $ 29,848,799   
  

 

 

 
 

 

See accompanying notes to financial statements.

 

6


THE GABELLI UTILITY TRUST

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS

 

       Year Ended
December 31, 2011
     Year Ended
December 31, 2010
 

Operations:

       

Net investment income

     $ 4,712,924       $ 4,744,249   

Net realized gain/(loss) on investments, swap contracts, and foreign currency transactions

       3,054,377         (1,967,740

Net change in unrealized appreciation on investments, swap contracts, and foreign currency translations

       24,033,860         24,923,875   
    

 

 

    

 

 

 

Net Increase in Net Assets Resulting from Operations

       31,801,161         27,700,384   
    

 

 

    

 

 

 

Distributions to Preferred Shareholders:

       

Net investment income

       (1,219,913      (1,970,625

Net realized short-term gain

       (623,894        

Net realized long-term gain

       (108,555        
    

 

 

    

 

 

 

Total Distributions to Preferred Shareholders

       (1,952,362      (1,970,625
    

 

 

    

 

 

 

Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations

       29,848,799         25,729,759   
    

 

 

    

 

 

 

Distributions to Common Shareholders:

       

Net investment income

       (3,636,029      (2,428,970

Net realized short-term gain

       (1,859,559        

Net realized long-term gain

       (323,554        

Return of capital

       (13,160,052      (20,001,660
    

 

 

    

 

 

 

Total Distributions to Common Shareholders

       (18,979,194      (22,430,630
    

 

 

    

 

 

 

Fund Share Transactions:

       

Net increase in net assets from common shares issued upon reinvestment of distributions

       2,722,559         3,365,431   
    

 

 

    

 

 

 

Net Increase in Net Assets from Fund Share Transactions

       2,722,559         3,365,431   
    

 

 

    

 

 

 

Net Increase in Net Assets Attributable to Common Shareholders

       13,592,164         6,664,560   

Net Assets Attributable to Common Shareholders:

       

Beginning of period

       167,511,438         160,846,878   
    

 

 

    

 

 

 

End of period (including undistributed net investment income of $0 and $0, respectively)

     $ 181,103,602       $ 167,511,438   
    

 

 

    

 

 

 

 

See accompanying notes to financial statements.

 

7


THE GABELLI UTILITY TRUST

FINANCIAL HIGHLIGHTS

Selected data for a share of beneficial interest outstanding throughout each period:

 

       Year Ended December 31,  
       2011      2010     2009     2008     2007  

Operating Performance:

             

Net asset value, beginning of period

     $ 5.33       $ 5.20      $ 5.09      $ 8.18      $ 8.19   
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

       0.15         0.15        0.17        0.18        0.19   

Net realized and unrealized gain/(loss) on investments, swap contracts,
and foreign currency transactions

       0.86         0.73        0.69        (2.48     0.61   
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

       1.01         0.88        0.86        (2.30     0.80   
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to Preferred Shareholders: (a)

             

Net investment income

       (0.04      (0.06     (0.06     (0.06     (0.03

Net realized gain

       (0.02                    (0.03     (0.07
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions to preferred shareholders

       (0.06      (0.06     (0.06     (0.09     (0.10
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net Increase/(Decrease) in Net Assets Attributable to Common
Shareholders Resulting from Operations

       0.95         0.82        0.80        (2.39     0.70   
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to Common Shareholders:

             

Net investment income

       (0.11      (0.08     (0.08     (0.10     (0.16

Net realized gain

       (0.07                    (0.04     (0.33

Paid-in capital

       (0.42      (0.64     (0.64     (0.58     (0.23
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions to common shareholders .

       (0.60      (0.72     (0.72     (0.72     (0.72
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Fund Share Transactions:

             

Increase in net asset value from common share transactions

       0.01         0.03        0.03        0.02        0.01   

Increase in net asset value from repurchase of preferred shares

                      0.00 (g)      0.00 (g)      0.00 (g) 

Offering costs for issuance of rights charged to paid-in capital

                             (0.00 )(g)        
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total Fund share transactions

       0.01         0.03        0.03        0.02        0.01   
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net Asset Value Attributable to Common Shareholders,
End of Period

     $ 5.69       $ 5.33      $ 5.20      $ 5.09      $ 8.18   
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

NAV total return †

       16.90      13.76     14.19     (31.68 )%      8.08
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Market value, end of period

     $ 7.80       $ 6.39      $ 9.02      $ 5.90      $ 9.50   
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Investment total return ††

       33.67      (21.38 )%      70.88     (31.81 )%      3.42
    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

See accompanying notes to financial statements.

 

8


THE GABELLI UTILITY TRUST

FINANCIAL HIGHLIGHTS (Continued)

Selected data for a share of beneficial interest outstanding throughout each period:

 

       Year Ended December 31,  
       2011      2010      2009      2008      2007  

Ratios to Average Net Assets and Supplemental Data:

                

Net assets including liquidation value of preferred shares, end of period
(in 000’s)

     $ 232,436       $ 218,843       $ 212,179       $ 206,724       $ 300,210   

Net assets attributable to common shares, end of period (in 000’s)

     $ 181,104       $ 167,511       $ 160,847       $ 154,898       $ 245,617   

Ratio of net investment income to average net assets attributable to common shares before preferred share distributions

       2.72      3.01      3.68      2.68      2.03

Ratio of operating expenses to average net assets attributable to common shares before fee waived

       1.92      1.93      2.04      1.77        

Ratio of operating expenses to average net assets attributable to common shares net of advisory fee reduction, if any (b)(c)

       1.92      1.91      2.04      1.50      1.63

Ratio of operating expenses to average net assets including liquidation value of preferred shares before fee waived

       1.48      1.45      1.50      1.39        

Ratio of operating expenses to average net assets including liquidation value of preferred shares net of advisory fee reduction, if any (b)(c)

       1.48      1.44      1.50      1.18      1.34

Portfolio turnover rate †††

       1      1      4      14      13

Preferred Shares:

                

5.625% Series A Cumulative Preferred Shares

                

Liquidation value, end of period (in 000’s)

     $ 28,832       $ 28,832       $ 28,832       $ 29,326       $ 29,593   

Total shares outstanding (in 000’s) .

       1,153         1,153         1,153         1,173         1,184   

Liquidation preference per share

     $ 25.00       $ 25.00       $ 25.00       $ 25.00       $ 25.00   

Average market value (d)

     $ 25.47       $ 25.15       $ 23.86       $ 22.76       $ 23.36   

Asset coverage per share

     $ 113.20       $ 106.58       $ 103.34       $ 99.72       $ 137.48   

Series B Auction Market Cumulative Preferred Shares

                

Liquidation value, end of period (in 000’s)

     $ 22,500       $ 22,500       $ 22,500       $ 22,500       $ 25,000   

Total shares outstanding (in 000’s) .

       1         1         1         1         1   

Liquidation preference per share

     $ 25,000       $ 25,000       $ 25,000       $ 25,000       $ 25,000   

Average market value (e)

     $ 25,000       $ 25,000       $ 25,000       $ 25,000       $ 25,000   

Asset coverage per share

     $ 113,202       $ 106,582       $ 103,336       $ 99,721       $ 137,478   

Asset Coverage (f)

       453      426      413      399      550

 

  Based on net asset value per share, adjusted for reinvestment of distributions at prices determined under the Fund’s dividend reinvestment plan.
††   Based on market value per share, adjusted for reinvestment of distributions at prices determined under the Fund’s dividend reinvestment plan.
†††   Effective in 2008, a change in accounting policy was adopted with regard to the calculation of the portfolio turnover rate to include cash proceeds due to mergers. Had this policy been adopted retroactively, the portfolio turnover rate for the year ended December 31, 2007 would have been 29%.
(a)   Calculated based upon average common shares outstanding on the record dates throughout the period.
(b)   The ratios do not include a reduction for custodian fee credits on cash balances maintained with the custodian (“Custodian Fee Credits”). Including such Custodian Fee Credits for the year ended December 31, 2007, the ratio of operating expenses to average net assets attributable to common shares net of advisory fee reduction would have been 1.63% and the ratio of operating expenses to average net assets including liquidation value of preferred shares net of fee reduction would have been 1.33%. For the years ended December 31, 2009 and 2008, the effect of Custodian Fee Credits was minimal. For the years ended December 31, 2011 and 2010, there were no Custodian Fee Credits.
(c)   The Fund incurred interest expense during the year ended December 31, 2007. If interest expense had not been incurred, the ratio of operating expenses to average net assets attributable to common stock would have been 1.62% and the ratio of operating expenses to average net assets including liquidation value of preferred shares would have been 1.33%. For the years ended December 31, 2011, 2010, 2009, and 2008, the effect of interest expense was minimal.
(d)   Based on weekly prices.
(e)   Liquidation value, except for 2007 when price was based on weekly auction prices. Since February 2008, the weekly auctions have failed. Holders that have submitted orders have not been able to sell any or all of their shares in the auctions.
(f)   Asset coverage is calculated by combining all series of preferred shares.
(g)   Amount represents less than $0.005 per share.

 

See accompanying notes to financial statements.

 

9


THE GABELLI UTILITY TRUST

NOTES TO FINANCIAL STATEMENTS

 

1.  Organization.  The Gabelli Utility Trust (the “Fund”) is a non-diversified closed-end management investment company organized as a Delaware statutory trust on February 25, 1999 and registered under the Investment Company Act of 1940, as amended (the “1940 Act”). Investment operations commenced on July 9, 1999.

The Fund’s primary objective is long-term growth of capital and income. The Fund will invest 80% of its assets, under normal market conditions, in common stocks and other securities of foreign and domestic companies involved in providing products, services, or equipment for (i) the generation or distribution of electricity, gas, and water and (ii) telecommunications services or infrastructure operations (the “80% Policy”). The 80% Policy may be changed without shareholder approval. However, the Fund has adopted a policy to provide shareholders with notice at least sixty days prior to the implementation of any change in the 80% Policy.

2.  Significant Accounting Policies.  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.

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 nonfinancial 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).

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 December 31, 2011 is as follows:

 

 

10


THE GABELLI UTILITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

    Valuation Inputs        
    Level 1
Quoted
Prices
    Level 2
Other Significant
Observable Inputs
    Level 3
Significant
Unobservable Inputs
    Total
Market Value
at 12/31/11
 

INVESTMENTS IN SECURITIES:

       

ASSETS (Market Value):

       

Common Stocks:

       

ENERGY AND UTILITIES

       

Energy and Utilities: Electric Integrated

  $ 109,517,745                    $ 109,517,745   

Energy and Utilities: Merchant Energy

    3,557,465             $ 0        3,557,465   

Other Industries (a)

    87,892,484                      87,892,484   

COMMUNICATIONS

       

Telecommunications

    9,400,837               0        9,400,837   

Other Industries (a)

    14,298,765                      14,298,765   

OTHER

       

Aerospace

    1,159,305      $ 10,716               1,170,021   

Other Industries (a)

    3,382,790                      3,382,790   

Total Common Stocks

    229,209,391        10,716        0        229,220,107   

Warrants (a)

           103,571               103,571   

Convertible Corporate Bonds (a)

           104,750               104,750   

U.S. Government Obligations

           3,444,544               3,444,544   

TOTAL INVESTMENTS IN SECURITIES – ASSETS

  $ 229,209,391      $ 3,663,581      $ 0      $ 232,872,972   

OTHER FINANCIAL INSTRUMENTS:

       

ASSETS (Unrealized Appreciation):*

       

EQUITY CONTRACT:

       

Contract for Difference Swap Agreement

  $      $ 12,817      $      $ 12,817   

LIABILITIES (Unrealized Depreciation):*

       

EQUITY CONTRACT:

       

Contract for Difference Swap Agreement

           (45            (45

TOTAL OTHER FINANCIAL INSTRUMENTS

  $      $ 12,772      $      $ 12,772   

 

(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 year ended December 31, 2011. The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

The following table reconciles Level 3 investments for which significant unobservable inputs were used to determine fair value:

 

     Balance
as of
12/31/10
    Accrued
discounts/
(premiums)
    Realized
gain/(loss)
    Change in
unrealized
appreciation/
depreciation †
    Purchases     Sales     Transfers
into
Level 3
    Transfers
out of
Level 3
    Balance
as of
12/31/11
    Net change in
unrealized
appreciation/
depreciation
during the
period on
Level 3
investments
still held at
12/31/11 †
 

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      $   

 

Net change in unrealized appreciation/depreciation on investments is included in the related amounts in the Statement of Operations.

 

11


THE GABELLI UTILITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

In May 2011, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“IFRS”).” ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 will require reporting entities to disclose the following information for fair value measurements categorized within Level 3 of the fair value hierarchy: quantitative information about the unobservable inputs used in the fair value measurement, the valuation processes used by the reporting entity, and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers into and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. At this time, management is evaluating the implications of ASU 2011-04 and its impact on the financial statements.

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 December 31, 2011, if any, are not accounted for as hedging instruments under GAAP and are disclosed in the Schedule of Investments together with the related counterparty.

Swap Agreements.  The Fund may enter into equity contract for difference and interest rate swap or cap transactions for the purpose of hedging or protecting its exposure to interest rate movements and movements in the securities markets. 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 counterparty 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 the Series B Auction Rate Cumulative Preferred Stock (“Series B Stock”). 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. Swaps 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. 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.

Unrealized gains related to swaps are reported as an asset and unrealized losses are reported as a liability in the Statement of Assets and Liabilities. The change in the value of swaps, including the accrual of periodic amounts of interest to be received or paid on swaps, is reported as unrealized gain or loss in the Statement of Operations. A realized gain or loss is recorded upon receipt or payment of a periodic payment or termination of swap agreements.

During the year ended December 31, 2011, the Fund held no investments in interest rate swap agreements.

 

 

12


THE GABELLI UTILITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

The Fund has entered into equity contract for difference swap agreements with The Goldman Sachs Group, Inc. Details of the swaps at December 31, 2011 are reflected within the Schedule of Investments and further details are as follows:

 

Notional
Amount

  

Equity Security
Received

  

Interest Rate/
Equity Security Paid

  

Termination
Date

  

Net Unrealized
Appreciation/
Depreciation

 
     Market Value
Appreciation on:
  

One month LIBOR plus 90 bps plus

Market Value Depreciation on:

     
  $276,908     

(25,000 Shares)

   Rolls-Royce Holdings plc    Rolls-Royce Holdings plc    6/27/12    $ 12,817   
  2,724     

(1,725,000 Shares)

   Rolls-Royce Holdings plc, Cl. C    Rolls-Royce Holdings plc, Cl. C    6/27/12      (45
             

 

 

 
              $ 12,772   
             

 

 

 

The Fund’s volume of activity in equity contract for difference swap agreements during the year ended December 31, 2011 had an average monthly notional amount of approximately $258,298.

As of December 31, 2011, the value of equity contract for difference swap agreements can be found in the Statement of Assets and Liabilities under Assets, Unrealized appreciation on swap contracts and Liabilities, Unrealized depreciation on swap contracts. For the year ended December 31, 2011, the effect of equity contract for difference swap agreements can be found in the Statement of Operations under Net Realized and Unrealized Gain/(Loss) on Investments, Swap Contracts, and Foreign Currency, Net realized gain on swap contracts and Net change in unrealized appreciation on swap contracts.

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 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.

Securities Transactions and Investment Income.  Securities transactions are accounted for on the trade date with realized gain or loss on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on the accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.

Custodian Fee Credits and Interest Expense.  When cash balances are maintained in the custody account, the Fund receives credits which are used to offset custodian fees. The gross expenses paid under the custody arrangement are included in custodian fees in the Statement of Operations with the corresponding expense offset, if any, shown as “Custodian fee credits.” When cash balances are overdrawn, the Fund is charged an overdraft fee equal to 110% of the 90 day Treasury Bill rate on outstanding balances. This amount, if any, would be included in the Statement of Operations.

Distributions to Shareholders.  Distributions to common shareholders are recorded on the ex-dividend date. Distributions to shareholders are based on income and capital gains as determined in accordance with federal income tax regulations, which may differ from income and capital gains as determined under GAAP. These differences are primarily due to differing treatments of

 

13


THE GABELLI UTILITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

income and gains on various investment securities and foreign currency transactions held by the Fund, timing differences, and differing characterizations of distributions made by the Fund. Distributions from net investment income for federal income tax purposes include net realized gains on foreign currency transactions. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, adjustments are made to the appropriate capital accounts in the period when the differences arise. Permanent differences were primarily due to disallowed expenses, taxable distributions in excess of book income, and a reclass of swap gain. These reclassifications have no impact on the NAV of the Fund. For the year ended December 31, 2011, reclassifications were made to decrease accumulated distributions in excess of net investment income by $159,985 and to decrease accumulated distributions in excess of net realized gain on investments, swap contracts, and foreign currency transactions by $2,453,083, with an offsetting adjustment to paid-in capital.

Distributions to shareholders of the Fund’s 5.625% Series A Cumulative Preferred Shares and Series B Auction Market Cumulative Preferred Shares (“Cumulative Preferred Shares”) are recorded on a daily basis and are determined as described in Note 5.

The tax character of distributions paid during the years ended December 31, 2011 and December 31, 2010 was as follows:

 

    

Year Ended

December 31, 2011

    

Year Ended

December 31, 2010

 
     Common      Preferred      Common      Preferred  

Distributions paid from:

           

Ordinary income

   $ 5,495,588       $ 1,843,807       $ 2,428,970       $ 1,970,625   

Net long-term capital gains

     323,554         108,555                   

Return of capital

     13,160,052                 20,001,660           
  

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions paid

   $ 18,979,194       $ 1,952,362       $ 22,430,630       $ 1,970,625   
  

 

 

    

 

 

    

 

 

    

 

 

 

Provision for Income Taxes.  The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). It is the policy of the Fund to comply with the requirements of the Code applicable to regulated investment companies and to distribute substantially all of its net investment company taxable income and net capital gains. Therefore, no provision for federal income taxes is required.

At December 31, 2011, the components of accumulated earnings/losses on a tax basis were as follows:

 

Net unrealized appreciation on investments, swap contracts, and foreign currency translations

   $ 61,419,183   

Other temporary differences*

     (12,789
  

 

 

 

Total

   $ 61,406,394   
  

 

 

 

 

* Other temporary differences are primarily due to adjustments on preferred share class distribution payables and mark-to-market and accrual adjustments on investments in swap contracts.

Under the Regulated Investment Company Modernization Act of 2010, the Fund will be permitted to carry forward for an unlimited period capital losses incurred in years beginning after December 22, 2010. As a result of the rule, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

During the year ended December 31, 2011, the Fund utilized capital loss carryforwards of $2,489,944.

At December 31, 2011, the temporary differences between book basis and tax basis net appreciation on investments was primarily due to deferral of losses from wash sales for tax purposes.

The following summarizes the tax cost of investments and the related net unrealized appreciation at December 31, 2011:

 

     Cost      Gross
Unrealized
Appreciation
     Gross
Unrealized
Depreciation
     Net Unrealized
Appreciation
 

Investments

   $ 171,465,986       $ 69,358,985       $ (7,951,999    $ 61,406,986   

The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. For the year ended December 31, 2011, the Fund did not incur any income tax, interest, or penalties. As of December 31, 2011, the Adviser has reviewed all open tax years and

 

14


THE GABELLI UTILITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

concluded that there was no impact to the Fund’s net assets or results of operations. Tax years ended December 31, 2008 through December 31, 2011 remain subject to examination by the Internal Revenue Service and state taxing authorities. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.

3.  Agreements and Transactions with Affiliates.  The Fund has entered into an investment advisory agreement (the “Advisory Agreement”) with the Adviser which provides that the Fund will pay the Adviser a fee, computed weekly and paid monthly, equal on an annual basis to 1.00% of the value of its average weekly net assets including the liquidation value of the preferred stock. In accordance with the Advisory Agreement, the Adviser provides a continuous investment program for the Fund’s portfolio and oversees the administration of all aspects of the Fund’s business and affairs. The Adviser has agreed to reduce the management fee on the incremental assets attributable to the Cumulative Preferred Shares if the total return of the NAV of the common shares of the Fund, including distributions and advisory fee subject to reduction, does not exceed the stated dividend rate or corresponding swap rate of the Cumulative Preferred Shares for the year.

The Fund’s total return on the NAV of the common shares is monitored on a monthly basis to assess whether the total return on the NAV of the common shares exceeds the stated dividend rate or corresponding swap rate of each particular series of Cumulative Preferred Shares for the period. For the year ended December 31, 2011, the Fund’s total return on the NAV of the common shares exceeded the stated dividend rate or corresponding swap rate of the outstanding Preferred Shares. Thus, advisory fees were accrued on these assets.

During the year ended December 31, 2011, the Fund paid brokerage commissions on security trades of $13,635 to Gabelli & Company, Inc. (“Gabelli & Co.”), an affiliate of the Adviser.

The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement. During the year ended December 31, 2011, the Fund paid or accrued $45,000 to the Adviser in connection with the cost of computing the Fund’s NAV.

As per the approval of the Board, the Fund compensates officers of the Fund, who are employed by the Fund and are not employed by the Adviser (although the officers may receive incentive based variable compensation from affiliates of the Adviser) and pays its allocated portion of the cost of the Fund’s Chief Compliance Officer. For the year ended December 31, 2011, the Fund paid or accrued $108,851 in payroll expenses in the Statement of Operations.

The Fund pays each Trustee who is not considered an affiliated person an annual retainer of $6,000 plus $1,500 for each Board meeting attended. Each Trustee is reimbursed by the Fund for any out of pocket expenses incurred in attending meetings. All Board committee members receive $1,000 per meeting attended, the Audit Committee Chairman receives an annual fee of $3,000, the Nominating Committee Chairman and the Lead Trustee each receive an annual fee of $2,000. A Trustee may receive a single meeting fee, allocated among the participating funds, for participation in certain meetings held on behalf of multiple funds. Trustees who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund.

4.  Portfolio Securities.  Purchases and sales of securities during the year ended December 31, 2011, other than short-term securities and U.S. Government obligations, aggregated $1,409,334 and $17,386,067, respectively.

5.  Capital.  The Fund is authorized to issue an unlimited number of shares of beneficial interest (par value $0.001). The Board has authorized the repurchase of its common shares on the open market when the shares are trading at a discount of 10% or more (or such other percentage as the Board may determine from time to time) from the NAV of the shares. During the years ended December 31, 2011 and December 31, 2010, the Fund did not repurchase any common shares of beneficial interest in the open market.

Transactions in shares of beneficial interest were as follows:

 

     Year Ended
December 31, 2011
     Year Ended
December 31, 2010
 
     Shares      Amount      Shares      Amount  

Net increase from shares issued upon
reinvestment of distributions

     413,938       $ 2,722,559         486,077       $ 3,365,431   

A shelf registration authorizing the offering of an additional $100 million of common or preferred shares was declared effective by the SEC on July 26, 2011.

 

15


THE GABELLI UTILITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

The Fund’s Declaration of Trust, as amended, authorizes the issuance of an unlimited number of shares of $0.001 par value Preferred Shares. The Preferred Shares are senior to the common shares and result in the financial leveraging of the common shares. Such leveraging tends to magnify both the risks and opportunities to common shareholders. Dividends on shares of the Preferred Shares are cumulative. The Fund is required by the 1940 Act and by the Statement of Preferences to meet certain asset coverage tests with respect to the Preferred Shares. If the Fund fails to meet these requirements and does not correct such failure, the Fund may be required to redeem, in part or in full, the 5.625% Series A and Series B Auction Market Cumulative Preferred Shares at a redemption price of $25.00 and $25,000, respectively, per share plus an amount equal to the accumulated and unpaid dividends whether or not declared on such shares in order to meet these requirements. Additionally, failure to meet the foregoing asset coverage requirements could restrict the Fund’s ability to pay dividends to common shareholders and could lead to sales of portfolio securities at inopportune times. The income received on the Fund’s assets may vary in a manner unrelated to the fixed and variable rates, which could have either a beneficial or detrimental impact on net investment income and gains available to common shareholders.

On July 31, 2003, the Fund received net proceeds of $28,895,026 (after underwriting discounts of $945,000 and offering expenses of $159,974) from the public offering of 1,200,000 shares of 5.625% Series A Cumulative Preferred Shares. Commencing July 31, 2008 and thereafter, the Fund, at its option, may redeem the 5.625% Series A Cumulative Preferred Shares in whole or in part at the redemption price at any time. During the years ended December 31, 2011 and December 31, 2010, the Fund did not repurchase any shares of 5.625% Series A Cumulative Preferred Shares. At December 31, 2011, 1,153,288 shares of 5.625% Series A Cumulative Preferred Shares were outstanding and accrued dividends amounted to $22,525.

On July 31, 2003, the Fund received net proceeds of $24,590,026 (after underwriting discounts of $250,000 and offering expenses of $159,974) from the public offering of 1,000 shares of Series B Shares. The dividend rate, as set by the auction process, which is generally held every seven days, is expected to vary with short-term interest rates. The dividend rates of Series B Shares ranged from 1.409% to 1.504% for the year ended December 31, 2011. Since February 2008, the number of Series B Shares subject to bid orders by potential holders has been less than the number of Series B Shares subject to sell orders. Therefore, the weekly auctions have failed, and the dividend rate since then has been the maximum rate. Holders that have submitted sell orders have not been able to sell any or all of the Series B Shares for which they have submitted sell orders. The current maximum rate is 125% of the seven day Telerate/British Bankers Association LIBOR rate on the day of such auction. Existing shareholders may submit an order to hold, bid, or sell such shares on each auction date. Shareholders of the Series B Shares may also trade their shares in the secondary market. The Fund, at its option, may redeem the Series B Auction Market Cumulative Preferred Shares in whole or in part at the redemption price at any time. There were no redemptions of Series B Shares during the years ended December 31, 2011 and December 31, 2010. At December 31, 2011, 900 shares of Series B Shares were outstanding with an annualized dividend rate of 1.466% per share and accrued dividends amounted to $3,665.

The holders of Cumulative Preferred Shares generally are entitled to one vote per share held on each matter submitted to a vote of shareholders of the Fund and will vote together with holders of common stock as a single class. The holders of Cumulative Preferred Shares voting together as a single class also have the right currently to elect two Trustees and under certain circumstances are entitled to elect a majority of the Board of Trustees. In addition, the affirmative vote of a majority of the votes entitled to be cast by holders of all outstanding shares of the preferred shares, voting as a single class, will be required to approve any plan of reorganization adversely affecting the preferred shares, and the approval of two-thirds of each class, voting separately, of the Fund’s outstanding voting stock must approve the conversion of the Fund from a closed-end to an open-end investment company. The approval of a majority (as defined in the 1940 Act) of the outstanding preferred shares and a majority (as defined in the 1940 Act) of the Fund’s outstanding voting securities are required to approve certain other actions, including changes in the Fund’s investment objectives or fundamental investment policies.

6.  Industry Concentration.  Because the Fund primarily invests in common stocks and other securities of foreign and domestic companies in the utility industry, its portfolio may be subject to greater risk and market fluctuations than a portfolio of securities representing a broad range of investments.

7.  Indemnifications.  The Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

8.  Other Matters.  On April 24, 2008, the Adviser entered into a settlement with the SEC to resolve an inquiry regarding prior frequent trading in shares of the GAMCO Global Growth Fund (the “Global Growth Fund”) by one investor who was banned from the Global Growth Fund in August 2002. Under the terms of the settlement, the Adviser, without admitting or denying the SEC’s findings and allegations, paid $16 million (which included a $5 million civil monetary penalty). On the same day, the SEC

 

16


THE GABELLI UTILITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

filed a civil action in the U.S. District Court for the Southern District of New York against the Executive Vice President and Chief Operating Officer of the Adviser, alleging violations of certain federal securities laws arising from the same matter. The officer, who also is an officer of the Global Growth Fund and other funds in the Gabelli/GAMCO complex, including this Fund, denies the allegations and is continuing in his positions with the Adviser and the funds. The settlement by the Adviser did not have, and the resolution of the action against the officer is not expected to have, a material adverse impact on the Adviser or its ability to fulfill its obligations under the Advisory Agreement.

9.  Subsequent Events.  Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

 

17


THE GABELLI UTILITY TRUST

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

To the Board of Trustees and Shareholders of

The Gabelli Utility Trust:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of The Gabelli Utility Trust (hereafter referred to as the “Trust”) at December 31, 2011, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

New York, New York

February 28, 2012

 

18


THE GABELLI UTILITY TRUST

ADDITIONAL FUND INFORMATION (Unaudited)

 

The business and affairs of the Fund are managed under the direction of the Fund’s Board of Trustees. Information pertaining to the Trustees and officers of the Fund is set forth below. The Fund’s Statement of Additional Information includes additional information about the Fund’s Trustees and is available without charge, upon request, by calling 800-GABELLI (800-422-3554) or by writing to The Gabelli Utility Trust at One Corporate Center, Rye, NY 10580-1422.

 

Name, Position(s)
Address1
and Age

 

Term of Office and
Length of
Time Served2

 

Number of
Funds in Fund
Complex
Overseen by
Trustee

 

Principal Occupation(s)
During Past Five Years

 

Other Directorships
Held by Trustee4

INTERESTED TRUSTEES3:

Mario J. Gabelli, CFA

Trustee and Chief Investment Officer

Age: 69

  Since 1999**   27  

Chairman, Chief Executive Officer, and Chief Investment Officer–Value Portfolios of GAMCO Investors, Inc. and Chief Investment Officer- Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc.; Director/ Trustee or Chief Investment Officer of other registered investment companies in the Gabelli/GAMCO Funds Complex; Chief Executive Officer of GGCP, Inc.

 

Director of Morgan Group Holdings, Inc. (holding company); Chairman of the Board and Chief Executive Officer of LICT Corp. (multimedia and communication services company); Director of CIBL, Inc. (broadcasting and wireless communications); Director of RLJ Acquisition Inc. (blank check company)

John D. Gabelli

Trustee

Age: 67

  Since 1999*   10   Senior Vice President of Gabelli & Company, Inc.  

INDEPENDENT TRUSTEES5:

Thomas E. Bratter

Trustee

Age: 72

  Since 1999**   3   Director, President, and Founder of The John Dewey Academy (residential college preparatory therapeutic high school)  

Anthony J. Colavita

Trustee

Age: 76

  Since 1999***   35   President of the law firm of Anthony J. Colavita, P.C.  

James P. Conn

Trustee

Age: 73

  Since 1999*   19   Former Managing Director and Chief Investment Officer of Financial Security Assurance Holdings Ltd. (insurance holding company) (1992-1998)   Director of First Republic Bank (banking) through January 2008 and LaQuinta Corp. (hotels) through January 2006

Vincent D. Enright

Trustee

Age: 68

  Since 1999**   17   Former Senior Vice President and Chief Financial Officer of KeySpan Corporation (public utility) (1994-1998)   Director of Echo Therapeutics, Inc. (therapeutics and diagnostics); Director of LGL Group, Inc. and until September 2006, Director of Aphton Corporation (pharmaceuticals)

Frank J. Fahrenkopf Jr.

Trustee

Age: 72

  Since 1999***   7   President and Chief Executive Officer of the American Gaming Association; Co-Chairman of the Commission on Presidential Debates; Former Chairman of the Republican National Committee (1983-1989)   Director of First Republic Bank (banking)

Robert J. Morrissey

Trustee

Age: 72

  Since 1999***   6   Partner in the law firm of Morrissey, Hawkins & Lynch  

Anthony R. Pustorino

Trustee

Age: 86

  Since 1999*   13   Certified Public Accountant; Professor Emeritus, Pace University   Director of The LGL Group, Inc. (diversified manufacturing) (2002-2010)

Salvatore J. Zizza

Trustee

Age: 66

  Since 1999***   29  

Chairman (since 1978) of Zizza & Company, Ltd. (financial consulting); Chairman (since 2006) of Metropolitan Paper Recycling, Inc. (recycling); Chairman (since 2000) of BAM Inc. (manufacturing); Chairman (since 2009) of E-Corp English (business services)

 

Non-Executive Chairman and Director of Harbor BioSciences, Inc. (biotechnology); Vice Chairman and Director of Trans-Lux Corporation (business services); Chairman and Chief Executive Officer of General Employment Enterprises, Inc. (staffing); Director of Bion Environmental Technologies (technology) (2005-2008); Director of Earl Schieb Inc. (automotive painting) through April 2009.

 

19


THE GABELLI UTILITY TRUST

ADDITIONAL FUND INFORMATION (Continued) (Unaudited)

 

Name, Position(s)
Address1
and Age

  

Term of
Office and
Length of
Time Served2

  

Principal Occupation(s)
During Past Five Years

OFFICERS:

Bruce N. Alpert

President and

Acting Chief Compliance Officer

Age: 60

  

 

Since 2003

Since November 2011

   Executive Vice President and Chief Operating Officer of Gabelli Funds, LLC since 1988; Officer of all of the registered investment companies in the Gabeli/GAMCO Funds Complex; Director of Teton Advisors, Inc. since 1998; Chairman of Teton Advisors, Inc. 2008-2010; President of Teton Advisors, Inc. 1998-2008; Senior Vice President of GAMCO Investors, Inc. since 2008.

Agnes Mullady

Treasurer and Secretary

Age: 53

   Since 2006   

President and Chief Operating Officer of the Open-End Fund Division of Gabelli Funds, LLC since September 2010; Senior Vice President of GAMCO Investors, Inc. since 2009; Vice President of Gabelli Funds, LLC since 2007; Officer of all of the registered investment companies in the Gabelli/GAMCO Funds Complex

David I. Schachter

Vice President and Ombudsman

Age: 58

   Since 1999    Vice President and or Ombudsman of closed-end funds within the Gabelli/GAMCO Funds complex; Vice President of Gabelli & Company, Inc. since 1999

 

1

Address: One Corporate Center, Rye, NY 10580-1422, unless otherwise noted.

2

The Fund’s Board of Trustees is divided into three classes, each class having a term of three years. Each year the term of office of one class expires and the successor or successors elected to such class serve for a three year term. The three year term for each class expires as follows:

  *

– Term expires at the Fund’s 2012 Annual Meeting of Shareholders or until their successors are duly elected and qualified.

  **

– Term expires at the Fund’s 2013 Annual Meeting of Shareholders or until their successors are duly elected and qualified.

  ***

– Term expires at the Fund’s 2014 Annual Meeting of Shareholders or until their successors are duly elected and qualified.

 

Each officer will hold office for an indefinite term until the date he or she resigns or retires or until his or her successor is elected and qualified.

3

“Interested person” of the Fund as defined in the 1940 Act. Messrs. Gabelli are each considered an “interested person” because of their affiliation with Gabelli Funds, LLC which acts as the Fund’s investment adviser. Mario J. Gabelli and John D. Gabelli are brothers.

4

This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934, as amended, i.e., public companies, or other investment companies registered under the 1940 Act.

5

Trustees who are not interested persons are considered “Independent” Trustees.

 

 

Certifications

The Fund’s Chief Executive Officer has certified to the New York Stock Exchange (“NYSE”) that, as of June 15, 2011, he was not aware of any violation by the Fund of applicable NYSE corporate governance listing standards. The Fund reports to the SEC on Form N-CSR which contains certifications by the Fund’s principal executive officer and principal financial officer that relate to the Fund’s disclosure in such reports and that are required by Rule 30a-2(a) under the 1940 Act.

 

20


THE GABELLI UTILITY TRUST

INCOME TAX INFORMATION (Unaudited)

December 31, 2011

 

Cash Dividends and Distributions

 

   

Payable

Date

 

Record

Date

 

Total Amount
Paid

Per Share (a)

 

Ordinary
Investment
Income (a)

 

Long-Term
Capital

Gains (a)

 

Return of

Capital (c)

 

Dividend
Reinvestment
Price

Common Shares

  01/24/11   01/14/11   $0.05000   $0.01450   $0.00090   $0.03460   $6.08950
  02/18/11   02/11/11   0.05000   0.01450   0.00090   0.03460   6.09900
  03/24/11   03/17/11   0.05000   0.01450   0.00090   0.03460   6.26050
  04/21/11   04/14/11   0.05000   0.01450   0.00090   0.03460   6.44100
  05/23/11   05/16/11   0.05000   0.01450   0.00090   0.03460   6.77350
  06/23/11   06/16/11   0.05000   0.01450   0.00090   0.03460   6.82100
  07/22/11   07/15/11   0.05000   0.01450   0.00090   0.03460   6.86850
  08/24/11   08/17/11   0.05000   0.01450   0.00090   0.03460   6.40300
  09/23/11   09/16/11   0.05000   0.01450   0.00090   0.03460   6.47900
  10/24/11   10/17/11   0.05000   0.01450   0.00090   0.03460   6.80200
  11/22/11   11/15/11   0.05000   0.01450   0.00090   0.03460   6.84000
  12/16/11   12/13/11   0.05000   0.01450   0.00090   0.03460   7.36250
     

 

 

 

 

 

 

 

 
      $0.60000   $0.17400   $0.01080   $0.41520  

5.625% Series A Cumulative Preferred Shares

  03/28/11   03/21/11   $0.35156   $0.33208   $0.01948    
  06/27/11   06/20/11   0.35156   0.33208   0.01948    
  09/26/11   09/19/11   0.35156   0.33208   0.01948    
  12/27/11   12/19/11   0.35156   0.33208   0.01948    
     

 

 

 

 

 

   
      $1.40625   $1.32831   $0.07794    

Series B Auction Market Cumulative Preferred Shares

Series B Auction Market Cumulative Preferred Shares pay dividends weekly based on rates set at auction, usually held every seven days.

A Form 1099-DIV has been mailed to all shareholders of record for the distributions mentioned above, setting forth specific amounts to be included in the 2011 tax returns. Ordinary income distributions include net investment income and realized net short-term capital gains. Ordinary income is reported in box 1a of Form 1099-DIV. Capital gain distributions are reported in box 2a of Form 1099-DIV.

The long-term gain distributions for the fiscal year ended December 31, 2011 were $432,109 or the maximum amount.

Corporate Dividends Received Deduction, Qualified Dividend Income, and U.S. Government Securities Income

The Fund paid to common and 5.625% Series A Cumulative Preferred shareholders ordinary income dividends of $0.17400 and $1.32831 per share, respectively, in 2011. The Fund paid to Series B Auction Market Cumulative Preferred shareholders an ordinary income dividend totaling $366.16 per share in 2011. For the year ended December 31, 2011, 100% of the ordinary income dividend qualified for the dividend received deduction available to corporations, 100% of the ordinary income distribution was deemed qualified dividend income and 0.05% of the ordinary income distribution was qualified interest income. The percentage of the ordinary income dividends paid by the Fund during 2011 derived from U.S. Government securities was 0.02%. Such income is exempt from state and local tax in all states. However, many states, including New York and California, allow a tax exemption for a portion of the income earned only if a mutual fund has invested at least 50% of its assets at the end of each quarter of the Fund’s fiscal year in U.S. Government securities. The Fund did not meet this strict requirement in 2011. The percentage of U.S. Government securities held as of December 31, 2011 was 1.48%.

 

21


THE GABELLI UTILITY TRUST

INCOME TAX INFORMATION (Continued) (Unaudited)

December 31, 2011

 

Historical Distribution Summary

 

     Investment
Income (b)
     Short-Term
Capital
Gains (b)
     Long-Term
Capital
Gains
     Return of
Capital (c)
     Total
Distributions (a)
     Adjustment
to Cost
Basis (d)
 

Common Shares

  

2011

   $ 0.11520       $ 0.05880       $ 0.01080       $ 0.41520       $ 0.60000       $ 0.41520   

2010

     0.07788                         0.64212         0.72000         0.64212   

2009

     0.07596                         0.64404         0.72000         0.64404   

2008

     0.10716         0.00360         0.04212         0.56712         0.72000         0.56712   

2007

     0.15458         0.03985         0.28795         0.23762         0.72000         0.23762   

2006

     0.15750         0.03900         0.52350                 0.72000           

2005

     0.15240         0.02280         0.54480                 0.72000           

2004 (g)

     0.09348         0.02958         0.00229         0.59465         0.72000         0.59465   

2003 (f)

     0.08544         0.01128         0.21240         0.41088         0.72000         0.41088   

2002 (e)

     0.11175         0.00210         0.35900         0.24690         0.72000         0.24690   

2001

     0.20835         0.33142         0.16023                 0.70000           

2000

     0.05620         0.14020         0.80360                 1.00000           

1999

     0.08049         0.00090         0.06861                 0.15000           

5.625% Series A Cumulative Preferred Shares

  

2011

   $ 0.87922       $ 0.44909       $ 0.07794               $ 1.40625           

2010

     1.40625                                 1.40625           

2009

     1.40625                                 1.40625           

2008

     0.98590         0.03309         0.38726                 1.40625           

2007

     0.44768         0.11663         0.84194                 1.40625           

2006

     0.30694         0.07589         1.02342                 1.40625           

2005

     0.29785         0.04494         1.06346                 1.40625           

2004

     1.04873         0.33179         0.02572                 1.40625           

Series B Auction Market Cumulative Preferred Shares

  

2011

   $ 228.93287       $ 116.93418       $ 20.29295               $ 366.16000           

2010

     381.65000                                 381.65000           

2009

     388.12000                                 388.12000           

2008

     663.22018         22.26115         260.50866                 945.99000           

2007

     426.72648         111.17336         802.52016                 1340.42000           

2006

     266.52830         65.89950         888.68220                 1221.11000           

2005

     177.88970         26.83920         635.15100                 839.88000           

2004

     280.59420         88.77260         6.88340                 376.20000           

 

(a) Total amounts may differ due to rounding.
(b) Taxable as ordinary income.
(c) Non-taxable.
(d) Decrease in cost basis.
(e) On May 22, 2002, the Fund distributed Rights equivalent to $0.09 per share based upon full subscription of all issued shares.
(f) On August 20, 2003, the Fund also distributed Rights equivalent to $0.18 per share based upon full subscription of all issued shares.
(g) On October 20, 2004, the Fund also distributed Rights equivalent to $0.03 per share based upon full subscription of all issued shares.

 

All designations are based on financial information available as of the date of this annual report and, accordingly, are subject to change. For each item, it is the intention of the Fund to designate the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.

 

22


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 and Acting 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

 

      

Common

    

5.625%
Preferred

NYSE–Symbol:

     GUT      GUT PrA

Shares Outstanding:

     31,845,923      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.


LOGO

 


Item 2. Code of Ethics.

 

  (a)

The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

 

  (c)

There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description.

 

  (d)

The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.

 

Item 3. Audit Committee Financial Expert.

As of the end of the period covered by the report, the registrant’s Board of Trustees has determined that Anthony R. Pustorino is qualified to serve as an audit committee financial expert serving on its audit committee and that he is “independent,” as defined by Item 3 of Form N-CSR.

 

Item 4. Principal Accountant Fees and Services.

Audit Fees

 

  (a)

The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $32,307 for 2010 and $32,307 for 2011.

Audit-Related Fees

 

  (b)

The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $5,769 for 2010 and $13,269 for 2011. Audit-related fees represent services provided in the preparation of Preferred Shares Reports.


Tax Fees

 

  (c)

The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $3,625 for 2010 and $3,625 for 2011. Tax fees represent tax compliance services provided in connection with the review of the Registrant’s tax returns.

All Other Fees

 

  (d)

The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2010 and $0 for 2011.

 

  (e)(1)

Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

 

      

Pre-Approval Policies and Procedures. The Audit Committee (“Committee”) of the registrant is responsible for pre-approving (i) all audit and permissible non-audit services to be provided by the independent registered public accounting firm to the registrant and (ii) all permissible non-audit services to be provided by the independent registered public accounting firm to the Adviser, Gabelli Funds, LLC, and any affiliate of Gabelli Funds, LLC (“Gabelli”) that provides services to the registrant (a “Covered Services Provider”) if the independent registered public accounting firm’s engagement related directly to the operations and financial reporting of the registrant. The Committee may delegate its responsibility to pre-approve any such audit and permissible non-audit services to the Chairperson of the Committee, and the Chairperson must report to the Committee, at its next regularly scheduled meeting after the Chairperson’s pre-approval of such services, his or her decision(s). The Committee may also establish detailed pre-approval policies and procedures for pre-approval of such services in accordance with applicable laws, including the delegation of some or all of the Committee’s pre-approval responsibilities to the other persons (other than Gabelli or the registrant’s officers). Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the permissible non-audit services were not recognized by the registrant at the time of the engagement to be non-audit services; and (ii) such services are promptly brought to the attention of the Committee and approved by the Committee or Chairperson prior to the completion of the audit.

 

  (e)(2)

The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

 

  (b)

100%

 

  (c)

100%

 

  (d)

N/A

 

  (f)

The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was 0%.

 


  (g)

The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $0 for 2010 and $0 for 2011.

 

  (h)

The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

 

Item 5. Audit Committee of Listed registrants.

The registrant has a separately designated audit committee consisting of the following members: Anthony J. Colavita, Vincent D. Enright and Anthony R. Pustorino.

 

Item 6. Investments.

 

(a)

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

 

(b)

Not applicable.

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

The Proxy Voting Policies are attached herewith.


The Voting of Proxies on Behalf of Clients

Rules 204(4)-2 and 204-2 under the Investment Advisers Act of 1940 and Rule 30b1-4 under the Investment Company Act of 1940 require investment advisers to adopt written policies and procedures governing the voting of proxies on behalf of their clients.

These procedures will be used by GAMCO Asset Management Inc., Gabelli Funds, LLC, Gabelli Securities, Inc., and Teton Advisors, Inc. (collectively, the “Advisers”) to determine how to vote proxies relating to portfolio securities held by their clients, including the procedures that the Advisers use when a vote presents a conflict between the interests of the shareholders of an investment company managed by one of the Advisers, on the one hand, and those of the Advisers; the principal underwriter; or any affiliated person of the investment company, the Advisers, or the principal underwriter. These procedures will not apply where the Advisers do not have voting discretion or where the Advisers have agreed to with a client to vote the client’s proxies in accordance with specific guidelines or procedures supplied by the client (to the extent permitted by ERISA).

I. Proxy Voting Committee

The Proxy Voting Committee was originally formed in April 1989 for the purpose of formulating guidelines and reviewing proxy statements within the parameters set by the substantive proxy voting guidelines originally published in 1988 and updated periodically, a copy of which are appended as Exhibit A. The Committee will include representatives of Research, Administration, Legal, and the Advisers. Additional or replacement members of the Committee will be nominated by the Chairman and voted upon by the entire Committee.

Meetings are held as needed basis to form views on the manner in which the Advisers should vote proxies on behalf of their clients.

In general, the Director of Proxy Voting Services, using the Proxy Guidelines, recommendations of Institutional Shareholder Corporate Governance Service (“ISS”), other third-party services and the analysts of Gabelli & Company, Inc., will determine how to vote on each issue. For non-controversial matters, the Director of Proxy Voting Services may vote the proxy if the vote is (1) consistent with the recommendations of the issuer’s Board of Directors and not contrary to the Proxy Guidelines; (2) consistent with the recommendations of the issuer’s Board of Directors and is a non-controversial issue not covered by the Proxy Guidelines; or (3) the vote is contrary to the recommendations of the Board of Directors but is consistent with the Proxy Guidelines. In those instances, the Director of Proxy Voting Services or the Chairman of the Committee may sign and date the proxy statement indicating how each issue will be voted.

All matters identified by the Chairman of the Committee, the Director of Proxy Voting Services or the Legal Department as controversial, taking into account the

 

1


recommendations of ISS or other third party services and the analysts of Gabelli & Company, Inc., will be presented to the Proxy Voting Committee. If the Chairman of the Committee, the Director of Proxy Voting Services or the Legal Department has identified the matter as one that (1) is controversial; (2) would benefit from deliberation by the Proxy Voting Committee; or (3) may give rise to a conflict of interest between the Advisers and their clients, the Chairman of the Committee will initially determine what vote to recommend that the Advisers should cast and the matter will go before the Committee.

 

  A.

Conflicts of Interest.

The Advisers have implemented these proxy voting procedures in order to prevent conflicts of interest from influencing their proxy voting decisions. By following the Proxy Guidelines, as well as the recommendations of ISS, other third-party services and the analysts of Gabelli & Company, the Advisers are able to avoid, wherever possible, the influence of potential conflicts of interest. Nevertheless, circumstances may arise in which one or more of the Advisers are faced with a conflict of interest or the appearance of a conflict of interest in connection with its vote. In general, a conflict of interest may arise when an Adviser knowingly does business with an issuer, and may appear to have a material conflict between its own interests and the interests of the shareholders of an investment company managed by one of the Advisers regarding how the proxy is to be voted. A conflict also may exist when an Adviser has actual knowledge of a material business arrangement between an issuer and an affiliate of the Adviser.

In practical terms, a conflict of interest may arise, for example, when a proxy is voted for a company that is a client of one of the Advisers, such as GAMCO Asset Management Inc. A conflict also may arise when a client of one of the Advisers has made a shareholder proposal in a proxy to be voted upon by one or more of the Advisers. The Director of Proxy Voting Services, together with the Legal Department, will scrutinize all proxies for these or other situations that may give rise to a conflict of interest with respect to the voting of proxies.

 

  B.

Operation of Proxy Voting Committee

For matters submitted to the Committee, each member of the Committee will receive, prior to the meeting, a copy of the proxy statement, any relevant third party research, a summary of any views provided by the Chief Investment Officer and any recommendations by Gabelli & Company, Inc. analysts. The Chief Investment Officer or the Gabelli & Company, Inc. analysts may be invited to present their viewpoints. If the Director of Proxy Voting Services or the Legal Department believe that the matter before the committee is one with respect to which a conflict of interest may exist between the Advisers and their clients, counsel will

 

2


provide an opinion to the Committee concerning the conflict. If the matter is one in which the interests of the clients of one or more of Advisers may diverge, counsel will so advise and the Committee may make different recommendations as to different clients. For any matters where the recommendation may trigger appraisal rights, counsel will provide an opinion concerning the likely risks and merits of such an appraisal action.

Each matter submitted to the Committee will be determined by the vote of a majority of the members present at the meeting. Should the vote concerning one or more recommendations be tied in a vote of the Committee, the Chairman of the Committee will cast the deciding vote. The Committee will notify the proxy department of its decisions and the proxies will be voted accordingly.

Although the Proxy Guidelines express the normal preferences for the voting of any shares not covered by a contrary investment guideline provided by the client, the Committee is not bound by the preferences set forth in the Proxy Guidelines and will review each matter on its own merits. Written minutes of all Proxy Voting Committee meetings will be maintained. The Advisers subscribe to ISS, which supplies current information on companies, matters being voted on, regulations, trends in proxy voting and information on corporate governance issues.

If the vote cast either by the analyst or as a result of the deliberations of the Proxy Voting Committee runs contrary to the recommendation of the Board of Directors of the issuer, the matter will be referred to legal counsel to determine whether an amendment to the most recently filed Schedule 13D is appropriate.

II. Social Issues and Other Client Guidelines

If a client has provided special instructions relating to the voting of proxies, they should be noted in the client’s account file and forwarded to the proxy department. This is the responsibility of the investment professional or sales assistant for the client. In accordance with Department of Labor guidelines, the Advisers’ policy is to vote on behalf of ERISA accounts in the best interest of the plan participants with regard to social issues that carry an economic impact. Where an account is not governed by ERISA, the Advisers will vote shares held on behalf of the client in a manner consistent with any individual investment/voting guidelines provided by the client. Otherwise the Advisers will abstain with respect to those shares.

III. Client Retention of Voting Rights

If a client chooses to retain the right to vote proxies or if there is any change in voting authority, the following should be notified by the investment professional or sales assistant for the client.

– Operations

– Legal Department

– Proxy Department

– Investment professional assigned to the account

 

3


In the event that the Board of Directors (or a Committee thereof) of one or more of the investment companies managed by one of the Advisers has retained direct voting control over any security, the Proxy Voting Department will provide each Board Member (or Committee member) with a copy of the proxy statement together with any other relevant information including recommendations of ISS or other third-party services.

IV. Voting Records

The Proxy Voting Department will retain a record of matters voted upon by the Advisers for their clients. The Advisers will supply information on how an account voted its proxies upon request.

A letter is sent to the custodians for all clients for which the Advisers have voting responsibility instructing them to forward all proxy materials to:

[Adviser name]

Attn: Proxy Voting Department

One Corporate Center

Rye, New York 10580-1433

The sales assistant sends the letters to the custodians along with the trading/DTC instructions. Proxy voting records will be retained in compliance with Rule 204-2 under the Investment Advisers Act.

V. Voting Procedures

1. Custodian banks, outside brokerage firms and clearing firms are responsible for forwarding proxies directly to the Advisers.

Proxies are received in one of two forms:

 

   

Shareholder Vote Authorization Forms (“VAFs”)—Issued by Broadridge Financial Solutions, Inc. (“Broadridge”) VAFs must be voted through the issuing institution causing a time lag. Broadridge is an outside service contracted by the various institutions to issue proxy materials.

 

   

Proxy cards which may be voted directly.

2. Upon receipt of the proxy, the number of shares each form represents is logged into the proxy system according to security.

3. In the case of a discrepancy such as an incorrect number of shares, an improperly signed or dated card, wrong class of security, etc., the issuing custodian is notified by phone. A corrected proxy is requested. Any arrangements are made to insure that a proper proxy is received in time to be voted (overnight delivery, fax, etc.). When securities are out on loan on record date, the custodian is requested to supply written verification.

 

4


4. Upon receipt of instructions from the proxy committee (see Administrative), the votes are cast and recorded for each account on an individual basis.

Records have been maintained on the Proxy Edge system. The system is backed up regularly.

Proxy Edge records include:

Security Name and Cusip Number

Date and Type of Meeting (Annual, Special, Contest)

Client Name

Adviser or Fund Account Number

Directors’ Recommendation

How GAMCO voted for the client on each issue

5. VAFs are kept alphabetically by security. Records for the current proxy season are located in the Proxy Voting Department office. In preparation for the upcoming season, files are transferred to an offsite storage facility during January/February.

6. Shareholder Vote Authorization Forms issued by Broadridge are always sent directly to a specific individual at Broadridge.

7. If a proxy card or VAF is received too late to be voted in the conventional matter, every attempt is made to vote on one of the following manners:

 

   

VAFs can be faxed to Broadridge up until the time of the meeting. This is followed up by mailing the original form.

 

   

When a solicitor has been retained, the solicitor is called. At the solicitor’s direction, the proxy is faxed.

8. In the case of a proxy contest, records are maintained for each opposing entity.

9. Voting in Person

a) At times it may be necessary to vote the shares in person. In this case, a “legal proxy” is obtained in the following manner:

 

   

Banks and brokerage firms using the services at Broadridge:

The back of the VAF is stamped indicating that we wish to vote in person. The forms are then sent overnight to Broadridge. Broadridge issues individual legal proxies and sends them back via overnight (or the Adviser can pay messenger charges). A lead-time of at least two weeks prior to the meeting is needed to do this. Alternatively, the procedures detailed below for banks not using Broadridge may be implemented.

 

5


   

Banks and brokerage firms issuing proxies directly:

The bank is called and/or faxed and a legal proxy is requested.

All legal proxies should appoint:

“Representative of [Adviser name] with full power of substitution.”

b) The legal proxies are given to the person attending the meeting along with the following supplemental material:

 

   

A limited Power of Attorney appointing the attendee an Adviser representative.

 

   

A list of all shares being voted by custodian only. Client names and account numbers are not included. This list must be presented, along with the proxies, to the Inspectors of Elections and/or tabulator at least one-half hour prior to the scheduled start of the meeting. The tabulator must “qualify” the votes (i.e. determine if the vote have previously been cast, if the votes have been rescinded, etc. vote have previously been cast, etc.).

 

   

A sample ERISA and Individual contract.

 

   

A sample of the annual authorization to vote proxies form.

 

   

A copy of our most recent Schedule 13D filing (if applicable).

 

6


Appendix A

Proxy Guidelines

 

 

 

 

PROXY VOTING GUIDELINES

 

 

 

GENERAL POLICY STATEMENT

It is the policy of GAMCO Investors, Inc. to vote in the best economic interests of our clients. As we state in our Magna Carta of Shareholders Rights, established in May 1988, we are neither for nor against management. We are for shareholders.

At our first proxy committee meeting in 1989, it was decided that each proxy statement should be evaluated on its own merits within the framework first established by our Magna Carta of Shareholders Rights. The attached guidelines serve to enhance that broad framework.

We do not consider any issue routine. We take into consideration all of our research on the company, its directors, and their short and long-term goals for the company. In cases where issues that we generally do not approve of are combined with other issues, the negative aspects of the issues will be factored into the evaluation of the overall proposals but will not necessitate a vote in opposition to the overall proposals.

 

7


BOARD OF DIRECTORS

The advisers do not consider the election of the Board of Directors a routine issue. Each slate of directors is evaluated on a case-by-case basis.

Factors taken into consideration include:

 

   

Historical responsiveness to shareholders

This may include such areas as:

–Paying greenmail

–Failure to adopt shareholder resolutions receiving a majority of shareholder votes

 

   

Qualifications

 

   

Nominating committee in place

 

   

Number of outside directors on the board

 

   

Attendance at meetings

 

   

Overall performance

 

SELECTION OF AUDITORS

In general, we support the Board of Directors’ recommendation for auditors.

 

BLANK CHECK PREFERRED STOCK

We oppose the issuance of blank check preferred stock.

Blank check preferred stock allows the company to issue stock and establish dividends, voting rights, etc. without further shareholder approval.

 

CLASSIFIED BOARD

A classified board is one where the directors are divided into classes with overlapping terms. A different class is elected at each annual meeting.

While a classified board promotes continuity of directors facilitating long range planning, we feel directors should be accountable to shareholders on an annual basis. We will look at this proposal on a case-by-case basis taking into consideration the board’s historical responsiveness to the rights of shareholders.

 

8


Where a classified board is in place we will generally not support attempts to change to an annually elected board.

When an annually elected board is in place, we generally will not support attempts to classify the board.

 

INCREASE AUTHORIZED COMMON STOCK

The request to increase the amount of outstanding shares is considered on a case-by-case basis.

Factors taken into consideration include:

 

   

Future use of additional shares

–Stock split

–Stock option or other executive compensation plan

–Finance growth of company/strengthen balance sheet

–Aid in restructuring

–Improve credit rating

–Implement a poison pill or other takeover defense

 

   

Amount of stock currently authorized but not yet issued or reserved for stock option plans

 

   

Amount of additional stock to be authorized and its dilutive effect

We will support this proposal if a detailed and verifiable plan for the use of the additional shares is contained in the proxy statement.

 

CONFIDENTIAL BALLOT

We support the idea that a shareholder’s identity and vote should be treated with confidentiality.

However, we look at this issue on a case-by-case basis.

In order to promote confidentiality in the voting process, we endorse the use of independent Inspectors of Election.

 

9


CUMULATIVE VOTING

In general, we support cumulative voting.

Cumulative voting is a process by which a shareholder may multiply the number of directors being elected by the number of shares held on record date and cast the total number for one candidate or allocate the voting among two or more candidates.

Where cumulative voting is in place, we will vote against any proposal to rescind this shareholder right.

Cumulative voting may result in a minority block of stock gaining representation on the board. When a proposal is made to institute cumulative voting, the proposal will be reviewed on a case-by-case basis. While we feel that each board member should represent all shareholders, cumulative voting provides minority shareholders an opportunity to have their views represented.

 

DIRECTOR LIABILITY AND INDEMNIFICATION

We support efforts to attract the best possible directors by limiting the liability and increasing the indemnification of directors, except in the case of insider dealing.

 

EQUAL ACCESS TO THE PROXY

The SEC’s rules provide for shareholder resolutions. However, the resolutions are limited in scope and there is a 500 word limit on proponents’ written arguments. Management has no such limitations. While we support equal access to the proxy, we would look at such variables as length of time required to respond, percentage of ownership, etc.

 

FAIR PRICE PROVISIONS

Charter provisions requiring a bidder to pay all shareholders a fair price are intended to prevent two-tier tender offers that may be abusive. Typically, these provisions do not apply to board-approved transactions.

 

10


We support fair price provisions because we feel all shareholders should be entitled to receive the same benefits.

Reviewed on a case-by-case basis.

 

GOLDEN PARACHUTES

Golden parachutes are severance payments to top executives who are terminated or demoted after a takeover.

We support any proposal that would assure management of its own welfare so that they may continue to make decisions in the best interest of the company and shareholders even if the decision results in them losing their job. We do not, however, support excessive golden parachutes. Therefore, each proposal will be decided on a case-by-case basis.

Note: Congress has imposed a tax on any parachute that is more than three times the executive’s average annual compensation.

 

ANTI-GREENMAIL PROPOSALS

We do not support greenmail. An offer extended to one shareholder should be extended to all shareholders equally across the board.

 

LIMIT SHAREHOLDERS’ RIGHTS TO CALL SPECIAL MEETINGS

We support the right of shareholders to call a special meeting.

 

CONSIDERATION OF NONFINANCIAL EFFECTS OF A MERGER

This proposal releases the directors from only looking at the financial effects of a merger and allows them the opportunity to consider the merger’s effects on employees, the community, and consumers.

 

11


As a fiduciary, we are obligated to vote in the best economic interests of our clients. In general, this proposal does not allow us to do that. Therefore, we generally cannot support this proposal.

Reviewed on a case-by-case basis.

 

MERGERS, BUYOUTS, SPIN-OFFS, RESTRUCTURINGS

Each of the above is considered on a case-by-case basis. According to the Department of Labor, we are not required to vote for a proposal simply because the offering price is at a premium to the current market price. We may take into consideration the long term interests of the shareholders.

 

MILITARY ISSUES

Shareholder proposals regarding military production must be evaluated on a purely economic set of criteria for our ERISA clients. As such, decisions will be made on a case-by-case basis.

In voting on this proposal for our non-ERISA clients, we will vote according to the client’s direction when applicable. Where no direction has been given, we will vote in the best economic interests of our clients. It is not our duty to impose our social judgment on others.

 

NORTHERN IRELAND

Shareholder proposals requesting the signing of the MacBride principles for the purpose of countering the discrimination of Catholics in hiring practices must be evaluated on a purely economic set of criteria for our ERISA clients. As such, decisions will be made on a case-by-case basis.

In voting on this proposal for our non-ERISA clients, we will vote according to client direction when applicable. Where no direction has been given, we will vote in the best economic interests of our clients. It is not our duty to impose our social judgment on others.

 

12


OPT OUT OF STATE ANTI-TAKEOVER LAW

This shareholder proposal requests that a company opt out of the coverage of the state’s takeover statutes. Example: Delaware law requires that a buyer must acquire at least 85% of the company’s stock before the buyer can exercise control unless the board approves.

We consider this on a case-by-case basis. Our decision will be based on the following:

 

   

State of Incorporation

 

   

Management history of responsiveness to shareholders

 

   

Other mitigating factors

 

POISON PILL

In general, we do not endorse poison pills.

In certain cases where management has a history of being responsive to the needs of shareholders and the stock is very liquid, we will reconsider this position.

 

REINCORPORATION

Generally, we support reincorporation for well-defined business reasons. We oppose reincorporation if proposed solely for the purpose of reincorporating in a state with more stringent anti-takeover statutes that may negatively impact the value of the stock.

 

STOCK OPTION PLANS

Stock option plans are an excellent way to attract, hold and motivate directors and employees. However, each stock option plan must be evaluated on its own merits, taking into consideration the following:

 

   

Dilution of voting power or earnings per share by more than 10%

 

   

Kind of stock to be awarded, to whom, when and how much

 

   

Method of payment

 

   

Amount of stock already authorized but not yet issued under existing stock option plans

 

13


SUPERMAJORITY VOTE REQUIREMENTS

Supermajority vote requirements in a company’s charter or bylaws require a level of voting approval in excess of a simple majority of the outstanding shares. In general, we oppose supermajority-voting requirements. Supermajority requirements often exceed the average level of shareholder participation. We support proposals’ approvals by a simple majority of the shares voting.

 

LIMIT SHAREHOLDERS RIGHT TO ACT BY WRITTEN CONSENT

Written consent allows shareholders to initiate and carry on a shareholder action without having to wait until the next annual meeting or to call a special meeting. It permits action to be taken by the written consent of the same percentage of the shares that would be required to effect proposed action at a shareholder meeting.

Reviewed on a case-by-case basis.

 

14


Item 8. Portfolio Managers of Closed-End Management Investment Companies.

PORTFOLIO MANAGER

Mr. Mario J. Gabelli, CFA, is primarily responsible for the day-to-day management of The Gabelli Utility Trust, (the Trust). Mr. Gabelli has served as Chairman, Chief Executive Officer, and Chief Investment Officer—Value Portfolios of GAMCO Investors, Inc. and its affiliates since their organization.

MANAGEMENT OF OTHER ACCOUNTS

The table below shows the number of other accounts managed by Mario J. Gabelli and the total assets in each of the following categories: registered investment companies, other paid investment vehicles and other accounts as of December 31, 2011. For each category, the table also shows the number of accounts and the total assets in the accounts with respect to which the advisory fee is based on account performance.

 

Name of Portfolio
        Manager

    

Type of
Accounts

    

Total

No. of Accounts
Managed

    

Total
Assets

    

No. of
Accounts
where
Advisory Fee
is Based on
Performance

    

Total Assets
in Accounts
where
Advisory Fee
is Based on
Performance

1. Mario J. Gabelli

     Registered Investment Companies:      26      18.0B      7      4.0B
     Other Pooled Investment Vehicles:      16      604.9M      13      551.7M
     Other Accounts:      1,766      13.4B      9      1.4B

POTENTIAL CONFLICTS OF INTEREST

As reflected above, Mr. Gabelli manages accounts in addition to the Trust. Actual or apparent conflicts of interest may arise when a Portfolio Manager also has day-to-day management responsibilities with respect to one or more other accounts. These potential conflicts include:

ALLOCATION OF LIMITED TIME AND ATTENTION. As indicated above, Mr. Gabelli manages multiple accounts. As a result, he will not be able to devote all of his time to management of the Trust. Mr. Gabelli, therefore, may not be able to formulate as complete a strategy or identify equally attractive investment opportunities for each of those accounts as might be the case if he were to devote all of his attention to the management of only the Trust.

ALLOCATION OF LIMITED INVESTMENT OPPORTUNITIES. As indicated above, Mr. Gabelli manages managed accounts with investment strategies and/or policies that are similar to the Trust. In these cases, if the he identifies an investment opportunity that may be suitable for multiple accounts, a Fund may not be able to take full advantage of that opportunity because the opportunity may be allocated among all or many of these accounts or other accounts managed primarily by other Portfolio Managers of the Adviser, and their affiliates. In addition, in the event Mr. Gabelli determines to purchase a security for more than one account in an aggregate amount that may influence the market price of the security, accounts that purchased or sold the security first may receive a more favorable price than accounts that made subsequent transactions.

SELECTION OF BROKER/DEALERS. Because of Mr. Gabelli’s position with the Distributor and his indirect majority ownership interest in the Distributor, he may have an incentive to use the Distributor to execute portfolio transactions for a Fund.

PURSUIT OF DIFFERING STRATEGIES. At times, Mr. Gabelli may determine that an investment opportunity may be appropriate for only some of the accounts for which he exercises investment responsibility, or may decide that certain of the funds or accounts should take differing positions with respect to a particular security. In these cases, he may execute differing or opposite transactions for one or more accounts which may affect the market price of the security or the execution of the transaction, or both, to the detriment of one or more other accounts.


VARIATION IN COMPENSATION. A conflict of interest may arise where the financial or other benefits available to Mr. Gabelli differ among the accounts that he manages. If the structure of the Adviser’s management fee or the Portfolio Manager’s compensation differs among accounts (such as where certain accounts pay higher management fees or performance-based management fees), the Portfolio Manager may be motivated to favor certain accounts over others. The Portfolio Manager also may be motivated to favor accounts in which he has an investment interest, or in which the Adviser, or their affiliates have investment interests. Similarly, the desire to maintain assets under management or to enhance a Portfolio Manager’s performance record or to derive other rewards, financial or otherwise, could influence the Portfolio Manager in affording preferential treatment to those accounts that could most significantly benefit the Portfolio Manager. For example, as reflected above, if Mr. Gabelli manages accounts which have performance fee arrangements, certain portions of his compensation will depend on the achievement of performance milestones on those accounts. Mr. Gabelli could be incented to afford preferential treatment to those accounts and thereby by subject to a potential conflict of interest.

The Adviser, and the Funds have adopted compliance policies and procedures that are designed to address the various conflicts of interest that may arise for the Adviser and their staff members. However, there is no guarantee that such policies and procedures will be able to detect and prevent every situation in which an actual or potential conflict may arise.

COMPENSATION STRUCTURE FOR MARIO J. GABELLI

Mr. Gabelli receives incentive-based variable compensation based on a percentage of net revenues received by the Adviser for managing the Trust. Net revenues are determined by deducting from gross investment management fees the firm’s expenses (other than Mr. Gabelli’s compensation) allocable to this Trust. Five closed-end registered investment companies (including this Trust) managed by Mr. Gabelli have arrangements whereby the Adviser will only receive its investment advisory fee attributable to the liquidation value of outstanding preferred stock (and Mr. Gabelli would only receive his percentage of such advisory fee) if certain performance levels are met. Additionally, he receives similar incentive based variable compensation for managing other accounts within the firm and its affiliates. This method of compensation is based on the premise that superior long-term performance in managing a portfolio should be rewarded with higher compensation as a result of growth of assets through appreciation and net investment activity. The level of compensation is not determined with specific reference to the performance of any account against any specific benchmark. One of the other registered investment companies managed by Mr. Gabelli has a performance (fulcrum) fee arrangement for which his compensation is adjusted up or down based on the performance of the investment company relative to an index. Mr. Gabelli manages other accounts with performance fees. Compensation for managing these accounts has two components. One component is based on a percentage of net revenues to the investment adviser for managing the account. The second component is based on absolute performance of the account, with respect to which a percentage of such performance fee is paid to Mr. Gabelli. As an executive officer of the Adviser’s parent company, GBL, Mr. Gabelli also receives ten percent of the net operating profits of the parent company. He receives no base salary, no annual bonus, and no stock options.

OWNERSHIP OF SHARES IN THE FUND

Mario J. Gabelli owned over $1,000,000 of shares of the Trust as of December 31, 2011.

 

(b)

Not applicable.

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.


REGISTRANT PURCHASES OF EQUITY SECURITIES

 

Period

 

(a) Total Number of Shares (or
Units) Purchased

 

(b) Average Price Paid per
Share (or Unit)

 

(c) Total Number of Shares (or
Units) Purchased as Part of
Publicly Announced Plans or
Programs

 

(d) Maximum Number (or
Approximate Dollar Value) of Shares
(or Units) that May Yet Be
Purchased Under the Plans or
Programs

Month #1

07/01/11

through

07/31/11

 

Common—N/A

Preferred Series A—N/A

 

Common—N/A

Preferred Series A—N/A

 

Common—N/A

Preferred Series A—N/A

 

Common—31,688,970

Preferred Series A—1,153,288

Month #2

08/01/11

through

08/31/11

 

Common—N/A

Preferred Series A—N/A

 

Common—N/A

Preferred Series A—N/A

 

Common—N/A

Preferred Series A—N/A

 

Common—31,722,227

Preferred Series A—1,153,288

Month #3

09/01/11

through

09/30/11

 

Common—N/A

Preferred Series A—N/A

 

Common—N/A

Preferred Series A—N/A

 

Common—N/A

Preferred Series A—N/A

 

Common—31,755,140

Preferred Series A—1,153,288

Month #4

10/01/11

through

10/31/11

 

Common — N/A

Preferred Series A—N/A

 

Common—N/A

Preferred Series A—N/A

 

Common—N/A

Preferred Series A—N/A

 

Common—31,786,349

Preferred Series A—1,153,288

Month #5

11/01/11

through

11/30/11

 

Common—N/A

Preferred Series A—N/A

 

Common—N/A

Preferred Series A—N/A

 

Common—N/A

Preferred Series A—N/A

 

Common—31,817,272

Preferred Series A—1,153,288

Month #6

12/01/11

through

12/31/11

 

Common—N/A

Preferred Series A—N/A

 

Common—N/A

Preferred Series A—N/A

 

Common—N/A

Preferred Series A—N/A

 

Common—31,654,121

Preferred Series A—1,153,288

Total  

Common—N/A

Preferred Series A—N/A

 

Common—N/A

Preferred Series A—N/A

 

Common—N/A

Preferred Series A—N/A

  N/A

Footnote columns (c) and (d) of the table, by disclosing the following information in the aggregate for all plans or programs publicly announced:

 

a.

The date each plan or program was announced—The notice of the potential repurchase of common and preferred shares occurs quarterly in the Fund’s quarterly report in accordance with Section 23(c) of the Investment Company Act of 1940, as amended.

 

b.

The dollar amount (or share or unit amount) approved—Any or all common shares outstanding may be repurchased when the Fund’s common shares are trading at a discount of 10% or more from the net asset value of the shares.

 

    

Any or all preferred shares outstanding may be repurchased when the Fund’s preferred shares are trading at a discount to the liquidation value of $25.00.

 

c.

The expiration date (if any) of each plan or program—The Fund’s repurchase plans are ongoing.


d.

Each plan or program that has expired during the period covered by the table—The Fund’s repurchase plans are ongoing.

 

e.

Each plan or program the registrant has determined to terminate prior to expiration, or under which the registrant does not intend to make further purchases.—The Fund’s repurchase plans are ongoing.

 

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s Board of Trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

 

Item 11. Controls and Procedures.

 

  (a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or
15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

  (b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12. Exhibits.

 

  (a)(1)

Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

 

  (a)(2)

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

  (a)(3)

Not applicable.

 

  (b)

Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(registrant)                      The Gabelli Utility Trust

 

By (Signature and Title)*     /s/ Bruce N. Alpert

 

Bruce N. Alpert, Principal Executive Officer

Date 3/9/12

 

 

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 3/9/12

 

By (Signature and Title)*     /s/ Agnes Mullady

 

Agnes Mullady, Principal Financial Officer and Treasurer

Date 3/9/12

 

 

*

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