April 21 , 1998
Dear Fellow Shareholder:
I am writing to you to share with you two pieces of news.
First, we have raised the Equity Trust's quarterly dividend to $0.27
per share from $0.25 per share. This should be reflected in your
June 1998 and September 1998 dividend checks. I encourage you to
read the enclosed press release regarding this increase.
In addition, I would like to invite you to attend the Annual
Meeting of Stockholders of the Gabelli Equity Trust, which will be
held at 9:30 a.m. on Monday, May 11, 1998, at the Cole Auditorium,
Greenwich Public Library, 101 West Putnam Avenue, Greenwich,
Connecticut.
At the Annual Meeting, one of the proposals that
shareholders will be asked to vote upon is a proposal to ratify
authority to issue senior securities. I would like you to
personally focus your attention on our enclosed Proxy.
At last year's meeting, your Board of Directors
recommended and you approved a resolution that allows us to
issue senior securities.
The Trust is now being sued by a shareholder whose goal
is to block us from issuing preferred stock. Your Board
believes the Trust will benefit from the issuance of preferred
stock and we believe this proposal may avoid the drain on the
Trust's resources caused by this lawsuit. Your Board believes
this is beneficial to you as a common shareholder and believes your
favorable vote would reconfirm that you want to give your Board the
authority to act in your interest and to issue preferred stock.
While the Board hopes this will end the current litigation, at a
minimum it sends a clear signal that the shareholders have spoken
again.
Thank you for the confidence you have placed in the Gabelli
Equity Trust.
Sincerely,
Mario J. Gabelli
GBFCMLPR98
For
information:
Marc Diagonale
(914) 921-5071
PRESS RELEASE
FOR IMMEDIATE RELEASE
Rye, New York
March 24, 1998 NYSE -
GAB
THE GABELLI EQUITY TRUST INC.
RAISES QUARTERLY DIVIDEND TO $0.27 PER SHARE
FROM $0.25 PER SHARE
The Board of Directors of The Gabelli Equity Trust Inc. is
pleased to announce an increase in the quarterly dividend to $0.27
per share from $0.25 per share. In our recent survey of
shareholders, highlights of which are in our just released Annual
Report, well over 90% of those who responded told us we should
continue the Equity Trust's 10% Policy, which was instituted in
August of 1988. Since then, the Trust has paid distributions
equivalent to 10% of its average net assets each year. The following
chart summarizes the total distributions made by the Equity Trust
since inception:
1987 1988 1989 1990 1991(a) 1992(b) 1993(c)
1994(d) 1995(e) 1996 1997
($) 1.08 0.55 1.31 1.18 1.09 1.06 1.11 1.89
1.00 1.00 1.04
(a) On October 21, 1991, the Trust distributed Rights equivalent to $0.42 per
share upon subscription of all issued shares.
(b) On September 28, 1992, the Trust distributed Rights equivalent to $0.36
per share upon subscription of all issued shares.
(c) On July 14, 1993, the Trust distributed Rights equivalent to $0.50 per
share upon subscription of all issued shares.
(d) On November 15, 1994, the Trust distributed shares of The Gabelli Global
Multimedia Trust Inc. valued at $8.0625 per GAB share.
(e) On October 19, 1995, the Trust distributed Rights equivalent to $0.37 per
share upon subscription of all issued shares.
In light of the response to our survey of shareholders and the
investment performance of the Equity Trust, the Board has authorized
an increase in the regular quarterly dividend amounts paid in the
first three quarters of each year pursuant to the Policy. Under the
terms of the amended Policy, beginning with the second quarterly
distribution expected in June 1998, the Trust intends to pay $0.27
per share (up from $0.25 per share) for each of the first three
quarters of each year with an adjusting distribution in December to
meet the requirements of the 10% Distribution Policy.
The total distribution fixed for each year will continue to be equal
to the greater of 10% of the average of the net asset value per share
of the Trust, as of the last day of the four preceding calendar
quarters, or the minimum distribution requirements of the Internal
Revenue Code.
The Gabelli Equity Trust Inc. is a closed-end, non-diversified
management investment company whose primary objective is long-term
growth of capital.
GBFCMPR98
