THE GABELLI UTILITIES FUND
FIRST QUARTER REPORT
MARCH 31, 2000
[Photo omitted]
Timothy P. O'Brien
TO OUR SHAREHOLDERS,
The first quarter of 2000 was mixed, but generally favorable, for utility
investors. Interest rates at the short end of the yield curve continued to rise,
as the Federal Reserve continued its tighter monetary policy in order to
restrain inflation. Interest rates at the long end of the yield curve fell from
nearly 6.5% at year-end to well below 6.0% as of March 31. While this would
normally result in meaningful price appreciation for utility shares, widening
corporate and agency credit spreads combined with a substantial decline in
utility merger activity from the torrid pace of 1999 to hold price gains in
check. U.S. utility stocks rose in nominal terms but underperformed the broader
equity market. Natural gas stocks performed well in the first quarter, while
electric, telecommunications and water stocks were generally flat to down.
The outlook for utility stock performance this year looks generally
positive. The now-inverted Treasury yield curve indicates that interest rates
are probably near the peak for this cycle, and falling long term rates should
result in utility stock price appreciation. The unsettled equity market
conditions seen in early April may lead investors to appreciate the high yields
and relatively stable prices of utility stocks. Looking beyond the immediate
future, electric, gas and water stocks are likely to benefit from continuing
domestic consolidation and increasing foreign interest in the U.S. market.
Telecommunications consolidation in the U.S. has gone about as far as it can go,
at least for the largest carriers, but foreign telecom giants with premium
multiples are eyeing the U.S. market hungrily. With foreign telecom buyers
having the size, the valuations and the interest to buy in North America, deal
activity is likely to revive, with American companies more likely sellers than
buyers at current valuations.
INVESTMENT PERFORMANCE
For the first quarter ended March 31, 2000 the Gabelli Utilities Fund's
(the "Fund") total return was 10.04%. The Standard & Poor's ("S&P") Utility
Index and Lipper Utility Fund Average had total returns of 8.10% and 6.88%,
respectively, over the same period. The S&P Utility Index is an
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INVESTMENT RESULTS (a)
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Quarter
------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
2000: Net Asset Value $11.76 -- -- -- --
Total Return 10.0% -- -- -- --
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1999: Net Asset Value -- -- $10.01 $10.89 $10.89
Total Return -- -- 0.1%(b) 22.1% 22.3%(b)
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- -------------------------------------------------
Total Return - March 31, 2000 (a)
---------------------------------
Life of Fund (b) ....................... 34.53%
- -------------------------------------------------
Dividend History
- -------------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
- ----------------- -------------- ------------------
December 27, 1999 $1.325 $10.89
(a) Total returns reflect changes in share price and reinvestment of dividends
and are net of expenses. The net asset value of the Fund is reduced on the
ex-dividend (payment) date by the amount of the dividend paid. Of course,
returns represent past performance and do not guarantee future results.
Investment returns and the principal value of an investment will fluctuate. When
shares are redeemed they may be worth more or less than their original cost. (b)
From commencement of investment operations on August 31, 1999. The returns
stated above cover short periods of less than one year beginning August 31, 1999
through March 31, 2000 and may not be indicative of long term results.
- --------------------------------------------------------------------------------
unmanaged indicator of electric and gas utility stock performance, while the
Lipper Average reflects the average performance of mutual funds classified in
this particular category. Since inception on August 31, 1999 through March 31,
2000, the Fund had a cumulative total return of 34.53%. The S&P Utility Index
declined 2.65%, while the Lipper Utility Fund Average rose 18.67% over the same
period.
MONTHLY DISTRIBUTIONS
The Fund has established a monthly distribution of $0.07 per month
beginning January 27, 2000. The reinvestment prices and dates are noted below.
The monthly distributions will be made as part of the Fund's policy of annually
distributing approximately 8% of its net asset value.
Reinvestment Date Reinvestment Price
- ----------------- ------------------
January 27, 2000 $10.70
February 25, 2000 $10.85
March 29, 2000 $11.82
OUR APPROACH
There are over 80 publicly traded investor-owned electric utilities in the
U.S., and this is at least 50 more than we need. The balkanized structure of the
industry is inherently inefficient, and competitive forces are now punishing
inefficiency. The industry has consolidated substantially already, and would
have done so even faster except for regulatory sclerosis impeding the pace of
mergers and acquisitions. We are skeptical about the claims of the
mega-utilities to be able to deliver superior
2
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returns, but we believe that the mid-cap and small-cap utilities are generally
doing well on their own and over time are likely acquisition targets as the
largest utilities seek increasing advantages of scale. Our investments in the
electric stocks have generally focused on fundamentally sound, reasonably priced
mid-cap and small-cap utilities that are logical acquisition targets for large
utilities seeking to bulk up. We have not made major investments in the water
sector for the moment, but as these stocks come back to more reasonable
valuations we would expect to initiate positions. Our investments in the
telephone utilities have been focused primarily on the larger domestic,
incumbent local exchange carriers, although we do own some new entrants and
foreign telecommunications companies.
COMMENTARY
IMPROVING FUNDAMENTALS AND SOME INTEREST RATE RELIEF
Electric utilities are in good and improving condition. Those with low
generating costs rarely have major problems, while the high cost generators have
mostly restructured and are poised to recover their riskiest investments and
move on. The biggest challenge facing most electric companies is how to redeploy
capital and rising free cash flow at attractive rates of return. This is harder
than it sounds. Electric utilities are using their excess capital to invest in
telecommunications, Internet auction sites, electric and HVAC ("heating,
ventilation and air-conditioning") contractors, and other ventures further
afield. Many of these ventures are doomed to fail, in our opinion, and we tend
to view skeptically the more grandiose visions of certain utilities.
The condition of the gas distribution utilities is generally stable and
sound. Pipeline companies are running into some earnings pressure as long term
contracts run off and are replaced with shorter-term deals. In addition,
near-term excess pipeline capacity is putting pressure on transportation rates.
The pressure should be manageable, but we are watching developments carefully.
Gas stocks, particularly the pipelines, were some of the better-performing
stocks in the Fund's portfolio in the first quarter.
Water companies, with few exceptions, are doing well in a low risk, highly
capital-intensive business. Telecommunications companies continue to generate
very impressive earnings growth in the face of mounting competitive pressures.
The Fund has a substantial position in U.S. incumbent local exchange carriers,
also known as the local telephone companies. These companies are generating
earnings per share ("EPS") growth in the low teens, trade at half the market
multiple and have solid balance sheets and substantial cash flows. The European
telecommunications companies generally trade at substantial premiums to the
local market and to their U.S. peer group. This valuation disparity is probably
unsustainable, and the U.S. telecommunications companies are likely to
appreciate in absolute terms and relative to their European peers.
LET'S TALK STOCKS
The following are stock specifics on selected holdings of our Fund.
Favorable earnings prospects do not necessarily translate into higher stock
prices, but they do express a positive trend which we believe will develop over
time.
3
<PAGE>
DPL INC. (DPL - $22.00 - NYSE) provides electric service to metropolitan Dayton,
Ohio. In the past six months, DPL sold its gas distribution operations to
Vectren Corp., sold a significant equity stake to KKR, and repurchased 25
million shares of stock in a self-tender. We sold most of the Fund's shares to
the company in the tender at $23 per share, and when the stock sold off below
$20 per share after the tender offer closed, we bought back into DPL. The stock
is inexpensive based on current and prospective earnings, and has substantial
unrealized gains in its sizeable investment portfolio. We think that KKR's
involvement in the company may ultimately lead to a merger or leveraged buyout
of DPL.
EDISON INTERNATIONAL (EIX - $17.00 - NYSE) stumbled badly in the first quarter.
The company substantially overpaid for U.K. generating assets acquired from
PowerGen plc in late 1999. British wholesale power prices plunged in the current
contracting round, and Edison had to substantially reduce EPS growth targets in
February after increasing them as recently as November. The share price was cut
roughly in half as a result. We disapprove of utilities that pursue high-risk
investment strategies in order to pump up earnings growth, precisely because
these kinds of problems tend to result. Edison has, we think, learned a hard
lesson from this, and is unlikely to repeat its mistakes. The stock is
understandably very inexpensive even on the reduced earnings estimates, and
absent a repeat of the British fiasco, should gradually rise in value.
KANSAS CITY POWER & LIGHT CO. (KLT - $27.00 - NYSE) did what we hoped and
expected it would do and walked away from the planned merger with Western
Resources. The stock price responded well, rising to $29.00 in the first quarter
before selling off to $27.00. While the stock is clearly not the bargain that it
was in the low $20s, we think that there is more value to be unlocked as the
company's earnings improve once the Hawthorne plant returns to service, and the
Digital Teleport, which could be worth $14 per KLT share, is monetized.
LG&E ENERGY CORP. (LGE - $22.875 - NYSE) serves most of the state of Kentucky.
The company's core business is efficient and well managed, and LG&E enjoys some
of the lowest generating costs in the U.S. The stock had fallen out of investor
favor because of continuing losses in LG&E's wholesale power business, which the
company had failed to resolve. During the first quarter, LG&E agreed to be
acquired by PowerGen plc of the U.K. for approximately $24 per share in cash.
The acquisition of LG&E marks the third purchase of a U.S. utility by a British
utility in the past year. We think that there will be more activity by European
strategic buyers in the U.S.
SPRINT CORP. (FON - $60.00 - NYSE) is the third-largest long distance carrier
and the second-largest independent local telephone company in the U.S. Sprint
agreed to be acquired by MCI WorldCom (WCOM - $45.3125 - Nasdaq) in the fourth
quarter for stock valued at $76 per Sprint share. The substantial spread between
the current Sprint share price and the agreed purchase price reflects the weak
performance of MCI WorldCom's stock price, skepticism about the ultimate
regulatory approval of the merger, and reduced appetite by arbitrageurs for
telecom deals in the wake of the Qwest/US West/Deutsche Telekom upheaval in the
first quarter. We think that MCI WorldCom's stock price is likely to rise as the
merger nears approval, and that the regulatory issues, while substantial, are
likely to be resolved favorably.
4
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MINIMUM INITIAL INVESTMENT - $1,000
The Fund's minimum initial investment for both regular and retirement
accounts is $1,000. There are no subsequent investment minimums. No initial
minimum is required for those establishing an Automatic Investment Plan.
INTERNET
You can now visit us on the Internet. Our home page at
http://www.gabelli.com contains information about Gabelli Asset Management Inc.,
the Gabelli Mutual Funds, IRAs, 401(k)s, quarterly reports, closing prices and
other current news. You can send us e-mail at [email protected].
IN CONCLUSION
The major factors depressing utility stock prices have been rising long
term interest rates and investors' infatuation with technology stocks. With long
term interest rates perhaps having peaked for this cycle and with technology
stocks now coming under pressure, utility stock price performance is likely to
improve in both absolute and relative terms.
The Fund's daily net asset value is available each evening after 6:00 PM
(Eastern Time) by calling 1-800-GABELLI (1-800-422-3554). The Fund's Nasdaq
symbol is GABUX. Please call us during the business day for further information.
Sincerely,
/S/ TIMOTHY P. O'BRIEN
TIMOTHY P. O'BRIEN, CFA
Portfolio Manager
April 14, 2000
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TOP TEN HOLDINGS
MARCH 31, 2000
--------------
Montana Power Co. ALLTEL Corp.
GTE Corp. Coastal Corp. (The)
BellSouth Corp. Williams Companies Inc. (The)
Sprint Corp. US West Inc.
MediaOne Group Inc. Aviall Inc.
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NOTE: The views expressed in this report reflect those of the portfolio manager
only through the end of the period stated in this report. The manager's views
are subject to change at any time based on market and other conditions.
5
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THE GABELLI UTILITIES FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
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MARKET
SHARES VALUE
------ ------
COMMON STOCKS -- 93.9%
Aviation: Parts and Services -- 3.9%
30,000 Aviall Inc.+ .................... $ 253,125
----------
CABLE -- 8.4%
3,700 MediaOne Group Inc.+ ............ 299,700
2,500 Metromedia Fiber Network Inc.,
Cl. A+ ....................... 241,875
----------
541,575
----------
COMPUTER SOFTWARE AND SERVICES -- 1.4%
6,000 InfoNow Corp.+ .................. 88,875
----------
ENERGY & UTILITIES: ELECTRIC -- 12.6%
7,999 DPL Inc. ........................ 177,478
3,000 DTE Energy Co. .................. 87,000
6,000 Eastern Utilities Associates .... 188,250
5,000 Edison International ............ 82,813
3,000 IPALCO Enterprises Inc. ......... 58,500
5,000 Kansas City Power & Light Co. ... 145,000
2,000 United Illuminating Co. ......... 78,500
----------
817,541
----------
ENERGY & UTILITIES: INTEGRATED -- 14.3%
3,000 Enron Corp. ..................... 224,625
5,000 LG&E Energy Corp. ............... 114,375
8,000 MCN Energy Group Inc. ........... 200,000
6,000 Montana Power Co. ............... 384,000
----------
923,000
----------
ENERGY AND UTILITIES: NATURAL GAS -- 13.8%
6,000 Coastal Corp. (The) ............. 276,000
1,000 Eastern Enterprises ............. 59,875
4,000 El Paso Energy Corp. ............ 161,500
3,000 National Fuel Gas Co. ........... 133,687
6,000 Williams Companies Inc. (The) ... 263,625
----------
894,687
----------
TELECOMMUNICATIONS: BROADBAND -- 3.4%
2,000 BroadWing Inc.+ ................. 74,375
4,000 ICG Communications Inc.+ ........ 144,500
----------
218,875
----------
MARKET
SHARES VALUE
------ ------
TELECOMMUNICATIONS: LOCAL -- 24.6%
4,500 ALLTEL Corp. .................... $ 283,781
6,500 BellSouth Corp. ................. 305,500
12,000 Global Telesystems Group Inc.+ .. 246,000
4,400 GTE Corp. ....................... 312,400
1,500 SBC Communications Inc. ......... 63,000
3,600 US West Inc. .................... 261,450
2,500 Versatel Telecom International
NV, ADR+ ..................... 120,937
----------
1,593,068
----------
TELECOMMUNICATIONS: LONG DISTANCE -- 6.2%
2,500 Global Crossing Ltd.+ ........... 102,344
4,800 Sprint Corp. .................... 302,400
----------
404,744
----------
TELECOMMUNICATIONS: NATIONAL -- 3.5%
1,800 BCE Inc. ........................ 225,788
----------
WIRELESS COMMUNICATIONS -- 1.8%
2,500 Western Wireless Corp., Cl. A+ .. 114,531
----------
TOTAL COMMON STOCKS ............. 6,075,809
----------
PRINCIPAL
AMOUNT
---------
U.S. GOVERNMENT OBLIGATIONS -- 5.2%
$339,000 U.S. Treasury Bills,
5.91% to 6.06%++,
due 04/18/00 to 04/27/00 ....... 337,722
----------
TOTAL INVESTMENTS -- 99.1%
(Cost $5,858,095) ............. 6,413,531
OTHER ASSETS AND
LIABILITIES (NET) -- 0.9% ..... 58,822
----------
NET ASSETS -- 100.0%
(550,210 shares outstanding) .. $6,472,353
==========
------------------------
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depositary Receipt.
6
<PAGE>
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GABELLI FAMILY OF FUNDS
- --------------------------------------------------------------------------------
GABELLI ASSET FUND--------------------------------------------------------------
Seeks to invest primarily in a diversified portfolio of common stocks selling at
significant discounts to their private market value. The Fund's primary
objective is growth of capital. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI GROWTH FUND-------------------------------------------------------------
Seeks to invest primarily in large cap stocks believed to have favorable, yet
undervalued, prospects for earnings growth. The Fund's primary objective is
capital appreciation. (NO-LOAD)
PORTFOLIO MANAGER: HOWARD F. WARD, CFA
GABELLI WESTWOOD EQUITY FUND----------------------------------------------------
Seeks to invest primarily in the common stock of seasoned companies believed to
have proven records and above average historical earnings growth. The Fund's
primary objective is capital appreciation. (NO-LOAD)
PORTFOLIO MANAGER: SUSAN M. BYRNE
GABELLI SMALL CAP GROWTH FUND---------------------------------------------------
Seeks to invest primarily in common stock of smaller companies (market
capitalizations less than $500 million) believed to have rapid revenue and
earnings growth potential. The Fund's primary objective is capital appreciation.
(NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI BLUE CHIP VALUE FUND----------------------------------------------------
Seeks long-term growth of capital through investment primarily in the common
stocks of well-established, high quality companies that have market
capitalizations of greater than $5 billion. (NO-LOAD)
PORTFOLIO MANAGER: BARBARA MARCIN, CFA
GABELLI WESTWOOD SMALLCAP EQUITY FUND-------------------------------------------
Seeks to invest primarily in smaller capitalization equity securities - market
caps of $1 billion or less. The Fund's primary objective is long-term capital
appreciation. (NO-LOAD)
PORTFOLIO MANAGER: LYNDA CALKIN, CFA
GABELLI WESTWOOD INTERMEDIATE BOND FUND-----------------------------------------
Seeks to invest in a diversified portfolio of bonds with various maturities. The
Fund's primary objective is total return. (NO-LOAD)
PORTFOLIO MANAGER: PATRICIA FRAZE
GABELLI EQUITY INCOME FUND------------------------------------------------------
Seeks to invest primarily in equity securities with above market average yields.
The Fund pays quarterly dividends and seeks a high level of total return with an
emphasis on income. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI WESTWOOD BALANCED FUND--------------------------------------------------
Seeks to invest in a balanced and diversified portfolio of stocks and bonds. The
Fund's primary objective is both capital appreciation and current income.
(NO-LOAD)
PORTFOLIO MANAGERS: SUSAN M. BYRNE & PATRICIA FRAZE
GABELLI WESTWOOD MIGHTY MITES[SERVICE MARK] FUND--------------------------------
Seeks to invest in micro-cap companies that have market capitalizations of $300
million or less. The Fund's primary objective is long-term capital appreciation.
(NO-LOAD)
TEAM MANAGED: MARIO J. GABELLI, CFA,
MARC J. GABELLI, LAURA K. LINEHAN AND
WALTER K. WALSH
GABELLI VALUE FUND--------------------------------------------------------------
Seeks to invest in securities of companies believed to be undervalued. The
Fund's primary objective is long-term capital appreciation. MAX. SALES CHARGE:
5 1/2%
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI UTILITIES FUND----------------------------------------------------------
Seeks to provide a high level of total return through a combination of capital
appreciation and current income. (NO-LOAD)
PORTFOLIO MANAGER: TIMOTHY O'BRIEN, CFA
GABELLI ABC FUND----------------------------------------------------------------
Seeks to invest in securities with attractive opportunities for appreciation or
investment income. The Fund's primary objective is total return in various
market conditions without excessive risk of capital loss. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI MATHERS FUND------------------------------------------------------------
Seeks long-term capital appreciation in various market conditions without
excessive risk of capital loss. (NO-LOAD)
PORTFOLIO MANAGER: HENRY VAN DER EB, CFA
GABELLI U.S. TREASURY MONEY MARKET FUND-----------------------------------------
Seeks to invest exclusively in short-term U.S. Treasury securities. The Fund's
primary objective is to provide high current income consistent with the
preservation of principal and liquidity. (NO-LOAD)
PORTFOLIO MANAGER: JUDITH A. RANERI
GABELLI CASH MANAGEMENT SHARES OF
THE TREASURER'S FUND------------------------------------------------------------
Three money market portfolios designed to generate superior returns without
compromising portfolio safety. U.S. Treasury Money Market seeks to invest in
U.S. Treasury bills, notes and bonds. Tax Exempt Money Market seeks to invest in
municipal securities. Domestic Prime Money Market seeks to invest in prime
quality, domestic money market instruments. (NO-LOAD)
PORTFOLIO MANAGER: JUDITH A. RANERI
AN INVESTMENT IN THE ABOVE MONEY MARKET FUNDS IS NEITHER INSURED NOR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY GOVERNMENT AGENCY. ALTHOUGH
THE FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS.
GLOBAL SERIES
GABELLI GLOBAL TELECOMMUNICATIONS FUND
Seeks to invest in telecommunications companies throughout the world -
targeting undervalued companies with strong earnings and cash flow dynamics.
The Fund's primary objective is capital appreciation. (NO-LOAD)
TEAM MANAGED: MARIO J. GABELLI, CFA,
MARC J. GABELLI AND IVAN ARTEAGA, CFA
GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
Seeks to invest principally in bonds and preferred stocks which are
convertible into common stock of foreign and domestic companies. The Fund's
primary objective is total return through a combination of current income and
capital appreciation. (NO-LOAD)
PORTFOLIO MANAGER: HART WOODSON
GABELLI GLOBAL GROWTH FUND
Seeks capital appreciation through a disciplined investment program focusing
on the globalization and interactivity of the world's marketplace. The Fund
invests in companies at the forefront of accelerated growth. The Fund's
primary objective is capital appreciation. (NO-LOAD)
PORTFOLIO MANAGER: MARC J. GABELLI
GABELLI GLOBAL OPPORTUNITY FUND
Seeks to invest in common stock of companies which have rapid growth in
revenues and earnings and potential for above average capital appreciation or
are undervalued. The Fund's primary objective is capital appreciation.
(NO-LOAD)
PORTFOLIO MANAGERS: MARC J. GABELLI
AND CAESAR BRYAN
GABELLI GOLD FUND---------------------------------------------------------------
Seeks to invest in a global portfolio of equity securities of gold mining and
related companies. The Fund's objective is long-term capital appreciation.
Investment in gold stocks is considered speculative and is affected by a variety
of world-wide economic, financial and political factors. (NO-LOAD)
PORTFOLIO MANAGER: CAESAR BRYAN
GABELLI INTERNATIONAL GROWTH FUND-----------------------------------------------
Seeks to invest in the equity securities of foreign issuers with long-term
capital appreciation potential. The Fund offers investors global
diversification. (NO-LOAD)
PORTFOLIO MANAGER: CAESAR BRYAN
THE SIX FUNDS ABOVE INVEST IN FOREIGN SECURITIES WHICH INVOLVES RISKS NOT
ORDINARILY ASSOCIATED WITH INVESTMENTS IN DOMESTIC ISSUES, INCLUDING CURRENCY
FLUCTUATION, ECONOMIC AND POLITICAL RISKS. THE FUNDS LISTED ABOVE ARE
DISTRIBUTED BY GABELLI & COMPANY, INC.
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TO RECEIVE A PROSPECTUS, CALL 1-800-GABELLI (422-3554). THE
PROSPECTUS GIVES A MORE COMPLETE DESCRIPTION OF THE FUND,
INCLUDING FEES AND EXPENSES. READ THE PROSPECTUS CAREFULLY
BEFORE YOU INVEST OR SEND MONEY.
VISIT OUR WEBSITE AT:
WWW.GABELLI.COM
OR, CALL:
1-800-GABELLI
1-800-422-3554 [BULLET] 914-921-5100 [BULLET]
FAX: 914-921-5118 [BULLET] [email protected]
ONE CORPORATE CENTER, RYE, NEW YORK 10580
<PAGE>
THE GABELLI UTILITIES FUND
One Corporate Center
Rye, New York 10580-1434
1-800-GABELLI
[1-800-422-3554]
FAX: 1-914-921-5118
HTTP://WWW.GABELLI.COM
E-MAIL: [email protected]
(Net Asset Value may be obtained daily by calling
1-800-GABELLI after 6:00 P.M.)
BOARD OF TRUSTEES
Mario J. Gabelli, CFA Karl Otto Pohl
CHAIRMAN AND CHIEF FORMER PRESIDENT
INVESTMENT OFFICER DEUTSCHE BUNDESBANK
GABELLI ASSET MANAGEMENT INC.
Anthony J. Colavita Werner J. Roeder, MD
ATTORNEY-AT-LAW MEDICAL DIRECTOR
ANTHONY J. COLAVITA, P.C. LAWRENCE HOSPITAL
Vincent D. Enright
FORMER SENIOR VICE PRESIDENT
AND CHIEF FINANCIAL OFFICER
KEYSPAN ENERGY CORP.
OFFICERS AND PORTFOLIO MANAGERS
Mario J. Gabelli, CFA Timothy P. O'Brien, CFA
PRESIDENT AND CHIEF PORTFOLIO MANAGER
INVESTMENT OFFICER
Bruce N. Alpert James E. McKee
VICE PRESIDENT AND TREASURER SECRETARY
DISTRIBUTOR
Gabelli & Company, Inc.
CUSTODIAN, TRANSFER AGENT AND DIVIDEND AGENT
State Street Bank and Trust Company
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
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This report is submitted for the general information of the shareholders of The
Gabelli Utilities Fund. It is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective prospectus.
- --------------------------------------------------------------------------------
GAB470Q100SR
[PHOTO OF MARIO J. GABELLI OMITTED]
THE
GABELLI
UTILITIES
FUND
FIRST QUARTER REPORT
MARCH 31, 2000
