The Gabelli Utilities FundShareholder Commentary

March 31, 2013

To Our Shareholders,

For the quarter ended March 31, 2013, the net asset value (“NAV”) per Class AAA Share of The GabelliUtilities Fund increased 9.7% compared with an increase of 13.0% for the Standard & Poor’s (“S&P”) 500Utilities Index. See page 2 for additional performance information.

Powerful Start to 2013

The S&P Utility Index rose 10% (before dividends) in the first quarter of 2013 as investors “shook-off” late2012 dividend tax fears and gained comfort that ample utility dividend returns would be taxed at reasonablelevels. The potential for dividend tax rates as high as 43.4% deflated much optimism during late 2012. TheAmerican Taxpayer Relief Act of 2012, signed on January 2, 2013, assured investors that dividends (andcapital gains) would be taxed at 20% for individual incomes over $400,000 and household incomes over$450,000 and 0% for those in the 25% tax bracket and below. The tax rate would remain 15% for thosebetween 25% and the top earning tax bracket. Further, dividend and capital gains tax rates are nowpermanently linked.

With the dividend tax issued resolved, we do not see any “wild cards” to threaten the expected 8% - 10%total return potential of the utility group. The fundamentals of the utility sector remain strong, including strongbalance sheets, positive credit outlooks, and increasingly constructive state public utility commissions (PUC’s)regulation. The healthy environment continues to be supported by low natural gas prices and low interest rates.Both are major contributors in allowing significant infrastructure investment with minimal customer bill impact.The Election did not change the makeup of federal government and the Administration’s aggressive climatechange priorities remain challenged by a partisan divide. Interest rates, natural gas prices, and economicgrowth will continue to be major macro drivers of utility stock performance, while individual rate case decisions,service area growth, and consolidation are the more important micro drivers.

Mario J. Gabelli, CFA

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Monthly Distributions – $0.07 per share

The Gabelli Utilities Fund has a $0.07 per share monthly distribution policy. For more specific dividendand tax information, please visit our website at www.gabelli.com or call 800-GABELLI (800-422-3554).Shareholders should be aware that a portion of the distribution may represent a non-taxable returnof capital. Distributions of capital reduce the cost basis of your shares if you hold them in a taxable account.The distributions should not be confused with the yield or total return of the Fund.

Comparative Results

Average Annual Returns through March 31, 2013 (a)Since

InceptionQuarter 1 Year 5 Year 10 Year (8/31/99)————— ———— ———— ———— —————

Class AAA (GABUX) . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.72% 13.28% 7.03% 11.18% 7.96%S&P 500 Utilities Index . . . . . . . . . . . . . . . . . . . . . . . . . . 13.02 16.37 5.02 12.14 5.63S&P 500 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.61 13.96 5.81 8.53 3.19Lipper Utility Fund Average . . . . . . . . . . . . . . . . . . . . . . . 11.78 18.83 5.79 12.32 6.11Class A (GAUAX) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.63 13.35 7.02 11.17 7.98With sales charge (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.32 6.84 5.76 10.52 7.51Class C (GAUCX) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.56 12.49 6.24 10.34 7.36With contingent deferred sales charge (c) . . . . . . . . . . . 8.56 11.49 6.24 10.34 7.36Class I (GAUIX) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.74 13.64 7.29 11.31 8.05In the current prospectus dated April 30, 2013, the expense ratios for Class AAA, A, C, and I Shares are 1.39%,1.39%, 2.14%, and 1.14%, respectively. Class AAA and Class I Shares do not have a sales charge. The maximumsales charge for Class A and C Shares is 5.75% and 1.00%, respectively.(a) Returns represent past performance and do not guarantee future results. Total returns and average annual

returns reflect changes in share price, reinvestment of distributions, and are net of expenses. Investment returns andthe principal value of an investment will fluctuate. When shares are redeemed, they may be worth more or less thantheir original cost. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days after thedate of purchase. Performance returns for periods of less than one year are not annualized. Current performancemay be lower or higher than the performance data presented. Visit www.gabelli.com for performance information asof the most recent month end. Investors should carefully consider the investment objectives, risks, charges,and expenses of the Fund before investing. The prospectus contains information about these and othermatters and should be read carefully before investing. The value of utility stocks generally changes as long-terminterest rates change. Funds investing in a single sector, such as utilities, may be subject to more volatility than fundsthat invest more broadly. The utilities industry can be significantly affected by government regulation, financingdifficulties, supply or demand of services or fuel, and natural resources conservation. The Class AAA Share NAVsare used to calculate performance for the periods prior to the issuance of Class A Shares and Class C Shares onDecember 31, 2002 and Class I Shares on January 11, 2008. The actual performance of the Class A Shares andClass C Shares would have been lower due to the additional expenses associated with these classes of shares. Theactual performance of the Class I Shares would have been higher due to lower expenses related to this class ofshares. The S&P 500 Utilities Index is an unmanaged market capitalization weighted index of large capitalizationstocks that may include facilities generation and transmission or distribution of electricity, gas, or water. The S&P500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to representthe U.S. equity market. The Lipper Utility Fund Average reflects the average performance of mutual funds classifiedin this particular category. Dividends are considered reinvested. You cannot invest directly in an index.

(b) Performance results include the effect of the maximum 5.75% sales charge at the beginning of the period.(c) Assuming payment of the 1% maximum contingent deferred sales charge imposed on redemptions made within one

year of purchase.

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Deal Activity

Consolidation activity was slow in the first quarter and limited to asset purchases and spin-offs, but weexpect the long term trend of utility consolidation to continue unabated given the pressure to deliver cleanerenergy at reasonable prices. Utility infrastructure requires significant investment to replace aging facilities andnetworks as well as comply with increasing environmental standards. The need for scale economies is drivingmergers. Larger players with greater financial resources and portfolios of assets can turn these challenges intoopportunities, which places greater value on strategic assets and rewards utility shareholders.

Some of the larger utilities have been created through consolidation over the last couple of years,including the July 2012 Duke Energy (1.3% of net assets as of March 31, 2013)/Progress Energy merger, theApril 2012 Northeast Utilities (1.7%)/NStar merger, the March 2012 Exelon (1.3%)/Constellation Energymerger, and the December 2012 NRG (0.2%)/GenOn merger. The biggest shareholder gains continue to bewith the smaller utilities being purchased at premium prices, such as the June 2012 Central Vermont PublicService purchase by Gaz Metro following a bidding war with Fortis (0.1%), and CH Energy Group’s (1.0%)pending takeover by FTI.

Larger Utility Transactions Announced Since 1/1/2010Date Value Premium Multiple Paid Date

Announced Target Entity Acquirer ($ Millions) Paid (%) EV/EBITDA (X) Type Closed2/11/13 New England Gas Company Algonquin Power 74 NA 7.8 Cash Pending

12/20/12 EQT Distribution Assets Peoples Natural Gas 1,080 NA 9.5 Cash/Assets Pending12/17/12 Missouri Gas & New England Gas Laclede Group 1,020 NA 10.8 Cash Pending7/22/12 GenON NRG Energy Inc. 3.4 21 7.4 Stock 12/14/122/21/12 CH Energy Group Fortis 1.267 10.5 10 Cash Pending10/16/11 El Paso Corporation Kinder Morgan 38,000 37 10.5 Cash/Stock 5/24/127/19/11 Southern Union Gas Energy Transfer Equity 9,232 57 10 Cash/Stock 3/26/126/23/11 Southern Union Gas Williams Cos. 9,201 56 9.3 Cash Terminated6/23/11 Central Vermont P.S. Gaz Metro 695 NMF 10.7 Cash 6/27/126/16/11 Southern Union Gas Energy Transfer Equity 7,800 17 8.04 Stock Amended5/30/11 Central Vermont P.S. Fortis 694 44 10.7 Cash Terminated4/28/11 Constellation Energy Exelon 10,500 18 6.6 Stock 3/12/124/20/11 DPL, Inc. AES Corp. 4,700 9 7.2 Cash 11/28/111/10/11 Progress Energy Duke Energy 25,700 7 8.4 Stock 7/2/12

12/15/10 Dynegy, Inc. Icahn Enterprises 349 NA $408/kilowatt Cash/Debt Terminated12/9/10 Granite State Electric Co. Algonquin Power 285 9.2 Cash Pending12/5/10 NICOR AGL Resources 3,100 22 7.7 Cash/Stock 12/9/1110/18/10 NSTAR Northeast Utilities 6,900 0 7.1 Stock 4/10/128/13/10 Generating Assets NRG Energy Inc. 1,360 NA $350/kilowatt Cash Terminated8/13/10 Dynegy, Inc. Blackstone Group 4,700 72 $385/kilowatt Cash/Debt Terminated8/9/10 Boston Generating Constellation Energy 1,100 NA $372/kilowatt Cash 1/3/115/25/10 CT/MA LDCs UIL Holdings Corp. 1,296 NA 9.4 Cash 11/16/104/29/10 E.ON US LLC PPL Corp. 7,625 NA 9.9 Cash 11/1/104/21/10 Conectiv Energy Fleet Calpine Corp. 1,650 NA $427/kilowatt Cash 7/1/104/11/10 Mirant Corp. RRI Energy Inc. 2,297 4 $228/kilowatt Stock 12/3/103/12/10 Maine & Maritimes Corp. Emera Inc. 105 41 16.7 Cash 12/21/103/3/10 Southwest Water Co. Private Investors 428 56 12.3 Cash 9/13/102/11/10 Allegheny Energy Inc. FirstEnergy Corp. 8,500 32 7.1 Stock 2/25/11

Source: Company documents, G.research, Inc. estimates

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As outlined in the table above, 2012 saw several high profile deals in the natural gas transportation field,Kinder Morgan’s (1.6%) acquisition of El Paso Corporation and Energy Transfer Equity’s (2.1%) (ETE)acquisition of Southern Union Gas (SUG). The development of the enormous shale natural gas reserves in theU.S. has spurred construction of new pipeline routes and more midstream infrastructure. These transactionshighlight the value of owning pipeline footprints to connect new shale supplies and major consumption marketsand we believe additional mergers and acquisitions are likely to come.

Let’s Talk Stocks

The following are stock specifics on selected holdings of our Fund. Favorable earnings prospects do notnecessarily translate into higher stock prices, but they do express a positive trend that we believe will developover time. Individual securities mentioned are not necessarily representative of the entire portfolio. The shareprices of the following holdings are stated in U.S. dollars or U.S. dollar equivalent terms as of March 31, 2013.

American Electric Power Company Inc. (1.9% of net assets as of March 31, 2013) (AEP - $48.63 - NYSE) isone of the nation’s largest electric utilities serving more than 5.3 million retail customers in 11 states (OH andTX the largest), owns approximately 38,000 megawatts (MW) of generating capacity, 40,000 miles oftransmission lines (nation’s largest) and 221,000 miles of distribution lines. Over the 2014 - 2016 period, thecompany expects to retire 5,500 MWs of regulated and non-regulated coal fired capacity as it transitions from65% coal to 50% coal by 2020. In addition, AEP plans to invest $4 to $5 billion in environmental equipment,and transition to a greater reliance of gas and renewable generation. Over the 2013 - 2015 period, AEPTransco, a transmission development subsidiary that contributed $0.09 per AEP share in 2012, versus $0.06per share in 2011, plans to invest $2.8 billion in favorably regulated transmission projects. As a result, Transco’searnings contribution is expected to grow from $0.06 per share in 2011 to $0.36 per share by 2015, or roughly10% of consolidated earnings. Management expects 4% to 6% annual earnings growth driven by a recoveringeconomy, cost controls, and rate recovery of capital investment. AEP currently pays roughly 60% of earningsto shareholders in the form of dividends and expects to increase the payout to 60% - 70%.

AES Corp. (1.7%) (AES - $12.57 - NYSE) is a global power company that owns distribution and generationassets on 5 continents in 25 countries, with a generating capacity of 40,000 MW and distribution networks infive countries including larger utilities the U.S. and Brazil. Since late 2011, AES has been undergoing atransformation to narrow the strategic focus, allocate capital efficiently, and improve existing operations. As aresult, AES has sold over $1 billion in non-core assets and repurchased stock and debt. In early 2013, thecompany formed six strategic business units to include six focus regions consisting of the U.S., Andes (Chile,Columbia, Argentina), Brazil, MCAC (Mexico, Central America, and the Caribbean), EMEA (Europe, MiddleEast, and Africa), and Asia. Future capital investments and growth projects will be focused in areas where aplatform already exists. Additionally, the company instituted a quarterly dividend of $0.04 per share in the thirdquarter of 2012, and with this new focused approach to management, we regard AES as one of the bettersecurities to allow the Fund to gain exposure to utility markets both inside and outside of the U.S.

Edison International (2.1%) (EIX - $50.32 - NYSE) through Southern California Edison (SCE), is one of thenation’s largest regulated electric utilities serving 14 million residents (5 million customers) in central, coastal,and southern California. In mid December 2012, EIX’s non-regulated Edison Mission Energy (EME), anindependent power producer that owns and operates approximately 8,900 MWs (owns 7,500 MW) ofgeneration capacity, filed for bankruptcy protection due to continued low power margins. As a result, EME willbe deconsolidated from EIX, and lower risk SCE will generate the bulk of future earnings. We expect the utilityto benefit from rate cases, ongoing constructive California regulatory mechanisms, and 7% - 8% projectedaverage annual rate base growth driven by a $7.4 billion to $8.2 billion capital program through 2014.

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Exelon Corp. (1.3%) (EXC - $34.48 - NYSE), based in Chicago, is one of the three larger power companies inthe U.S. with 35,000 MWs of non-regulated generation, including 19,000 MWs of nuclear capacity. EXC is theproduct of a March 2012 merger with Constellation Energy (Baltimore, MD), and prior to that, a 2000 mergerbetween the Philadelphia, PA electric utility, PECO Energy, and Chicago, IL utility, Commonwealth Edison. Asa result of the combinations, EXC serves 6.6 million customers through the regulated distribution utilities inChicago, Baltimore, and Philadelphia. Given that EXC’s generation is primarily located in the non-regulatedNortheastern region, which includes Illinois, its earnings are highly leveraged to the supply-demand equilibriumof electricity and power prices. As a result, EXC has been in “hunker down” mode since the economic recessionbegan in 2008. In addition, low gas prices have significantly impacted the margins EXC can earn on its non-regulated nuclear power plants. In February 2013, the company reduced its annual dividend by 41% to $1.24per share, from $2.10 per share, beginning with the second quarter dividend. The reduction was expectedgiven the desire to preserve credit ratings and the new dividend represents 50% of the midpoint ofmanagement’s 2013 earnings outlook of $2.35 - $2.65 per share. EXC continues to believe there is upside inpower prices, given that 42 GWs of power generation will be retired in the Eastern U.S., which is 12 GW’s morethan has already been announced.

PNM Resources Inc. (1.4%) (PNM - $23.29 - NYSE) is a public utility holding company headquartered inAlbuquerque, NM. Regulated electric utility subsidiaries include Public Service Company of New Mexico andTexas-New Mexico Power Company. In late 2011, PNM sold its non-regulated retail marketing business, FirstChoice Power (FCP), and its 50% interest in Optim Energy, a merchant power business, and used cashproceeds to buy back common shares and reduce debt. We view the restructuring favorably given the lowerrisk profile and greater predictability of earnings and cash flow associated with a pure play utility story. Weexpect the regulated utility to deliver solid earnings growth in 2013, driven by pending rate requests and recentNew Mexico rate relief, and further growth in 2014 and beyond from the use of a forward looking test year.Management expects that customer and sales growth combined with cost controls will delay the need forgeneral rate case filings for at least the next twelve months, but we expect significant environmental investmentto lead to general rate requests sometime in mid 2014. Given that the dividend represents a relatively lowpayout of 2013 earnings guidance, we expect continued dividend increases.

SCANA Corp. (1.3%) (SCG - $51.16 - NYSE) is a midsized regulated electric and gas utility company,headquartered in Cayce, SC. South Carolina Electric & Gas (SCE&G) serves 670,000 electric and 323,000 gascustomers in SC and generates 75% - 80% of consolidated ongoing EPS results. Public Service Company ofNorth Carolina (PSNC) serves 497,000 natural gas customers in North Carolina. SCANA Energy Marketing(SEM) is a retail natural gas marketer in Georgia. Management has increased confidence in the economichealth of its service area, which was relatively weak, and SCANA will continue to benefit from constructiveregulatory mechanisms, such as the annual electric Baseload Review Act (BLRA), Gas Rate Stabilization Act(RSA), and gas customer utilization tracker (CUT) filings. In early 2012, the Nuclear Regulatory Commission(NRC) approved combined construction and operating licenses (COLs) for two new 1,117 MW nuclear units atthe existing V.C. Summer Station in Jenkinsville, SC. While the COL was delayed, SCG was able to beginconstruction on non-nuclear aspects of the site avoiding other significant delays, and the units should becompleted in 2017 and 2018, respectively. While management stated that it was not seeking to divest anyportion of the two new units, we believe larger Southeastern utilities, could be interested in acquiring anownership position in the low cost clean baseload generation.

Southwest Gas Corp. (2.0%) (SWX - $47.46 - NYSE) is a natural gas distribution utility serving 1,859,000customers in geographically diverse portions of AZ (1.0 million, or 54%), NV (684,000, or 36%), and CA(190,000, or 10%). SWX also owns NPL Construction Company, a full service underground piping contractor

that provides trenching and installation, replacement, and maintenance services for energy distributionsystems. From 2008 to 2010, customer growth slowed due to the overall slowdown in the new housing marketand the increase in idle/vacant homes resulting from foreclosures and challenging economic conditions.However, customer growth appears to be improving, and SWX added 17,000 new customers in 2012. InJanuary 2012, SWX implemented a $52.6 million annual revenue increase for the AZ jurisdiction. In November2012, SWX implemented a NV rate increase and, in December 2012, filed for a California rate increase. Overthe long term, we expect that the service area will return to higher growth rates as the favorable regionalclimate and lower housing prices attract customers to inhabit vacant homes. Additionally, the pipelineconstruction business is growing strongly, given the industry’s focus on safety related pipeline replacementprograms. We consider SWX to be a high quality gas utility with a focused, low risk strategy and solid earningsoutlook driven by recent and future rate increases, expanded infrastructure tracking mechanisms, customergrowth, and cost controls.

Commentary

You’ve got to be very careful if you don’t know where you are going, because you might not get there.Yogi Berra-

Baseball Legend Yogi Berra’s famous “Yogisms” were loved for their simplicity and ability to emphasizethe obvious. Given the recent strong market and utility returns, we emphasize utility investors stay focused onthe merits of the expected 8% - 10% low risk total return potential offered by utility stocks. The return iscomprised of the nearly 4% dividend return plus an expected 4% - 6% annual earnings and dividend growthpotential. Obviously, actual future returns will be impacted by changes in interest rates, perceived risk potentialand general market multiples. Following the strong recent performance, utility stocks trade at 16X forwardearnings, which compares to a 20 year median forward multiple of 13 - 14X. However, when adjusted forhistorically low interest rates, including 10 and 20 year U.S. Treasury rates of 1.9% and 3.1%, valuationsappear low relative to 20 year historical standards.

Utility stock prices are supported by the attractive 3.8% average current dividend return, which representsa high 200% of the ten year U.S. Treasury rate, and made all the more compelling given the expectation thatthe annual rates will grow in line with earnings growth. We are comfortable with the consensus regulated utilityearnings growth outlook of 4.5% in 2013, 6.0% in 2014, and 5.0% in 2015, driven primarily by higher rates,modest demand growth, and cost controls. The 63% dividend payout of 2013 earnings provides ample cushionfor security and some room for accelerated growth.

In addition to attractive dividend returns, earnings/dividend growth potential, and reasonable valuations,we emphasize that utility stocks maintain relatively low risk profiles. Utility balance sheets are solid, withaverage/median common equity ratios of 46%, and managements remain focused on the core regulatedbusiness model. Accordingly, the Edison Electric Institute states that 96% of utility credit ratings are stable orpositive. We continue to favor utilities with above average electric demand growth, constructive regulatorymechanisms (riders), and/or electric and gas transmission growth opportunities at attractive valuations.

Utility stocks do face some ongoing challenges, including: (1) slower electric demand, (2) heavy capitalinvestment requirements, (3) declining allowed return on equity (ROE), and (4) weak wholesale power prices.

Over the last few years (2008 - 2012), the average U.S. electric demand growth has slowed to a nationalaverage of ~1% per annum (though it varies by region) and has not kept its historical pace with GDP growth.Conservation, efficiency, and distributed generation (solar panels, microturbines, and fuel cells) have playedsome role in negating growth, but unusual weather patterns have combined with exaggerated price elasticity

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during the weak economic times to impact demand data. The housing market has been a difficult variable asresidential electric demand is highly influenced by the number of households. After a dramatic decline in thehousing market, it appears as though the market is rapidly recovering. While our financial and valuationforecasts are based on the “new consensus” of lower electric demand growth (we assume ~1% per annum),we do suspect that electric demand growth will return to historical trends as consumers’ budgets and outlooksimprove.

Capital investment is expected to remain heavy over the next few years, with projections of $85-90 billion,$83.5 billion, and $79.3 billion in 2013, 2014, and 2015, respectively. The primary driver continues to be relatedto Environmental Protection Agency mandated environmental projects. The electric power industry continuesto make impressive strides in addressing the environment, including 70% reductions in SOX and NOX from1990 national levels, despite a 40% increase in electric demand. Carbon dioxide levels are 17% below 2005levels. However, several environmental rules are awaiting final action or implementation including: the crossstate air pollution rule (must be revised to comply with court order), implementation of the regional haze rule(west of the Mississippi), Mercury and Air Toxics standards implementation (2015), and enforcementparticularly of those requesting a four year compliance.

These investments are expected to be recognized in rate base and rates adjusted to allow for earningsgrowth. Many regulatory jurisdictions encourage the investment through annual, semiannual or even quarterlyriders, which results in more timely earnings growth. In 2012, average awarded ROE levels declined to 10%and we expect to see further pressure on state regulated profit levels in future cases, should interest ratesremain at historical lows. However, the absolute decline in profit levels has not been as significant as thedecline in utility cost of capital, and thus the spread has increased. The spread between the average allowedROE of 10% and the ten year U.S. Treasury yield of 1.9% was over 800 basis points. When combined withopportunities to invest and earn returns on a growing rate base, particularly environmental compliance projectsand higher earning transmission investments, we consider the allowed ROEs to be more than adequate togrow earnings and dividends at the consensus growth rates.

We also highlight that Federal Regulatory Energy Commission (FERC) regulated transmission is awardedhigher and more timely returns than most state regulated infrastructure. Transmission projects often earn baseallowed ROEs of 10% - 11% with as much 300 basis points of incentives. As a result, utilities have allocatedmore investment capital toward transmission projects. While the FERC now has eight cases requesting lowerallowed ROE’s and is reviewing its incentive policies, the current incentive policy has resulted in the significantincrease in transmission buildout to ensure reliability, reduce congestion, and facilitate renewables.

Merchant power plants continue to face depressed margins, primarily due to low gas prices. Absent anacceleration of electric demand growth, they are reliant upon plant retirements to push prices upward. Givennatural gas’ position as the marginal power price setter and abundance of domestic shale gas, we expectpower prices and non-regulated power margins to remain at reasonable levels for the foreseeable future. Lowspot and future gas prices have led to an unprecedented level of “coal-to-gas fired power generation switching.”In 2012, coal fired generation declined to an historically low “less than 40%” of total electric output, offset byan increase in gas fired generation to over 30%. Over 2008 to 2010, coal fired generation provided roughly45% of U.S. electricity, natural gas 25%, nuclear 20%, and hydro, oil, wind, solar, and other sources roughly10%. We expect 50,000 to 70,000 MWs of older and less efficient coal fired generation to retire by 2016, buta continuation of low gas prices would accelerate coal plant retirements.

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Despite these headwinds, the utility sector is in strong fundamental shape, and we continue to expect lowrisk 8% - 10% annual total returns over the next few years.

Our Approach

For several decades, utility companies have acquired other utilities and utility assets for the sake ofgaining economies of scale and efficiency. The same forces that resulted in more than one hundred utilitytakeover announcements over the past two decades remain in place, and new forces have come into play thatcontinue to drive this long term trend. Climate change and environmental policy have pressured marginalplayers. The pickup in merger activity reinforces the long term bias of utilities to increase scale or gain astrategic benefit. The small companies are selling out at premium prices as the cost of staying in the gamerises. The historical lengthy merger review and approval process appears to have eased as policy makersunderstand the new economic dynamics.

Despite over ninety completed utility mergers/acquisitions since 1993, the electric and gas utility sectorremains fragmented, with over sixty electric utilities and thirty gas utilities. This is fifty more than we need fromthe standpoint of economic efficiency.

Our investments in regulated companies have primarily, though not exclusively, focused on fundamentallysound, reasonably priced, mid cap and small cap utilities that are likely acquisition targets for large utilitiesseeking increased bulk. We prefer utilities that operate in more constructive regulatory environments, possesslower carbon footprints, and/or access to strategic geographies. We favor utilities with pending transmissionline developments, and we focus on natural gas pipelines and storage operators as a way to take advantageof the growing demand for natural gas in the U.S.

April 4, 2013

Note: The views expressed in this Shareholder Commentary reflect those of the Portfolio Manager onlythrough the end of the period stated in this Shareholder Commentary. The Portfolio Manager’s views aresubject to change at any time based on market and other conditions. The information in this Portfolio Manager’sShareholder Commentary represents the opinions of the individual Portfolio Manager and is not intended to bea forecast of future events, a guarantee of future results, or investment advice. Views expressed are those ofthe Portfolio Manager and may differ from those of other portfolio managers or of the Firm as a whole. ThisShareholder Commentary does not constitute an offer of any transaction in any securities. Anyrecommendation contained herein may not be suitable for all investors. Information contained in thisShareholder Commentary has been obtained from sources we believe to be reliable, but cannot beguaranteed.

Top Ten Holdings (Percent of Net Assets)

March 31, 2013

National Fuel Gas Co. 5.0%NextEra Energy Inc. 3.1%Energy Transfer Equity L.P. 2.1%Edison International 2.1%Southwest Gas Corp. 2.0%

American Electric Power Co. Inc. 1.9%General Electric Co. 1.8%Northeast Utilities 1.7%AES Corp. 1.7%Kinder Morgan Inc. 1.6%

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Portfolio Manager Compensation

Mr. Gabelli’s incentive-based, variable compensation structure and dollar amount have been fullydisclosed each year since April of 2000 in GAMCO Investors, Inc.’s (NYSE: GBL) annual proxy statement.Mr. Gabelli receives no base salary, no annual bonus, and no options.

As founder and portfolio manager of The Gabelli Utilities Fund, Mr. Gabelli received $7,292,149 incalendar year 2012. Starting in August 1999, the Fund’s first year of operation, Mr. Gabelli received less than$25,000. As beneficial owner, he had $190,467 invested in The Gabelli Utilities Fund as of December 31, 2012,which includes the holdings of GAMCO Asset Management, Inc. and GGCP, Inc., GBL’s parent holdingcompany.

Minimum Initial Investment – $1,000

The Fund’s minimum initial investment for regular accounts is $1,000. There are no subsequentinvestment minimums. No initial minimum is required for those establishing an Automatic Investment Plan.Additionally, the Fund and other Gabelli/GAMCO Funds are available through the no-transaction fee programsat many major brokerage firms. The Fund imposes a 2% redemption fee on shares sold or exchanged withinseven days after the date of purchase. See the prospectus for more details.

www.gabelli.com

Please visit us on the Internet. Our homepage at www.gabelli.com contains information about GAMCOInvestors, Inc., the Gabelli/GAMCO Mutual Funds, IRAs, 401(k)s, current and historical quarterly reports,closing prices, and other current news. We welcome your comments and questions via e-mail atinfo@gabelli.com.

The Fund’s daily net asset value is available in the financial press and each evening after 7:00 PM(Eastern Time) by calling 800-GABELLI (800-422-3554). The Fund’s Nasdaq symbol is GABUX for Class AAAShares. Please call us during the business day, between 8:00 AM – 7:00 PM (Eastern Time), for furtherinformation.

You may sign up for our e-mail alerts at www.gabelli.com and receive early notice of quarterly reportavailability, news events, media sightings, and mutual fund prices and performance.

e-delivery

We are pleased to offer electronic delivery of Gabelli fund documents. Direct shareholders of our mutualfunds can elect to receive their Annual, Semiannual, and Quarterly Fund Reports, Manager Commentaries,and Prospectuses via e-delivery. For more information or to sign up for e-delivery, please visit our website atwww.gabelli.com.

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Multi-Class Shares

The Gabelli Utilities Fund began offering additional classes of Fund shares on December 31, 2002. ClassAAA Shares are no-load shares offered directly through selected broker/dealers. Class A and Class C Sharesare targeted to the needs of investors who seek advice through financial consultants. Class I Shares areavailable solely to certain institutions, directly through the Fund’s distributor or brokers that have entered intoselling agreements specifically with respect to Class I Shares. The Board of Trustees determined thatexpanding the types of Fund shares available through various distribution options will enhance the ability of theFund to attract additional investors.

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

Portfolio Manager Biography

Mario J. Gabelli, CFA, is Chairman and Chief Executive Officer of GAMCO Investors, Inc. that he founded in1976 and Chief Investment Officer – Value Portfolios of Gabelli Funds, LLC and GAMCO Asset ManagementInc. Mr. Gabelli is a summa cum laude graduate of Fordham University and holds an MBA degree fromColumbia University Graduate School of Business, and an Honorary Doctorate Degree from Roger WilliamsUniversity in Rhode Island.

THE GABELLI UTILITIES FUNDOne Corporate CenterRye, NY 10580-1422

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t 800-GABELLI (800-422-3554)f 914-921-5118e info@gabelli.com

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Net Asset Value per share available dailyby calling 800-GABELLI after 7:00 P.M.

BOARD OF TRUSTEES

Mario J. Gabelli, CFAChairman andChief Executive Officer,GAMCO Investors, Inc.

Anthony J. ColavitaPresident,Anthony J. Colavita, P.C.

Vincent D. EnrightFormer Senior Vice President and Chief Financial Officer,KeySpan Corp.

Mary E. HauckFormer Senior Portfolio Manager,Gabelli-O’Connor Fixed IncomeMutual Fund Management Co.

Kuni NakamuraPresident,Advanced Polymer, Inc.

Werner J. Roeder, MDMedical Director,Lawrence Hospital

OFFICERS

Bruce N. AlpertPresident and Acting ChiefCompliance Officer

Agnes MulladySecretary and Treasurer

DISTRIBUTOR

G.distributors, LLC

CUSTODIAN, TRANSFERAGENT, AND DIVIDENDAGENT

State Street Bank and Trust Company

LEGAL COUNSEL

Skadden, Arps, Slate, Meagher &Flom LLP

This report is submitted for the general information of theshareholders of The Gabel l i Uti l i t ies Fund. It is notauthorized for distr ibution to prospective investors unlesspreceded or accompanied by an effective prospectus.

THEGABELL IUT IL IT IESFUND

Shareholder CommentaryMarch 31, 2013

GAB470Q113SC

,

Mario J. Gabelli, CFAPortfolio Manager

To Our Shareholders,

For the quarter ended March 31, 2013, the net asset value (“NAV”) per Class AAA Share of The GabelliUtilities Fund increased 9.7% compared with an increase of 13.0% for the Standard & Poor’s (“S&P”) 500Utilities Index. See below for additional performance information.

Enclosed is the schedule of investments as of March 31, 2013.

Comparative ResultsAverage Annual Returns through March 31, 2013 (a) (Unaudited)

Quarter 1 Year 5 Year 10 Year

SinceInception(8/31/99)

Class AAA (GABUX). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.72% 13.28% 7.03% 11.18% 7.96%S&P 500 Utilities Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.02 16.37 5.02 12.14 5.63S&P 500 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.61 13.96 5.81 8.53 3.19Lipper Utility Fund Average . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.78 18.83 5.79 12.32 6.11Class A (GAUAX) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.63 13.35 7.02 11.17 7.98With sales charge (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.32 6.84 5.76 10.52 7.51Class C (GAUCX) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.56 12.49 6.24 10.34 7.36With contingent deferred sales charge (c). . . . . . . . . . . . . . . . . . . . . . . . . 8.56 11.49 6.24 10.34 7.36Class I (GAUIX) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.74 13.64 7.29 11.31 8.05In the current prospectus dated April 30, 2013, the expense ratios for Class AAA, A, C, and I Shares are 1.39%, 1.39%, 2.14%, and 1.14%,respectively. Class AAA and Class I Shares do not have a sales charge. The maximum sales charge for Class A and C Shares is 5.75% and1.00%, respectively.(a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share

price, reinvestment of distributions, and are net of expenses. Investment returns and the principal value of an investment will fluctuate. When sharesare redeemed, they may be worth more or less than their original cost. The Fund imposes a 2% redemption fee on shares sold or exchanged withinseven days after the date of purchase. Performance returns for periods of less than one year are not annualized. Current performance may be loweror higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Investorsshould carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus containsinformation about these and other matters and should be read carefully before investing. The value of utility stocks generally changes as longterm interest rates change. Funds investing in a single sector, such as utilities, may be subject to more volatility than funds that invest more broadly.The utilities industry can be significantly affected by government regulation, financing difficulties, supply or demand of services or fuel, and naturalresources conservation. The Class AAA Share NAVs are used to calculate performance for the periods prior to the issuance of Class A Shares andClass C Shares on December 31, 2002 and Class I Shares on January 11, 2008. The actual performance of the Class A Shares and Class CShares would have been lower due to the additional expenses associated with these classes of shares. The actual performance of the Class IShares would have been higher due to lower expenses related to this class of shares. The S&P 500 Utilities Index is an unmanaged market capital-ization 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 a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market.The Lipper Utility Fund Average reflects the average performance of mutual funds classified in this particular category. Dividends are consideredreinvested. You cannot invest directly in an index.

(b) Performance results include the effect of the maximum 5.75% sales charge at the beginning of the period.(c) Assuming payment of the 1% maximum contingent deferred sales charge imposed on redemptions made within one year of purchase.

The Gabelli Utilities FundFirst Quarter Report — March 31, 2013

SharesMarketValue

COMMON STOCKS — 88.9%ENERGY AND UTILITIES — 63.8%Energy and Utilities: Alternative Energy — 0.1%

300,000 Algonquin Power & Utilities Corp. . . . . . . . . . . . . . . $ 2,197,17526,000 Ormat Industries Ltd.† . . . . . . . . . . . . . . . . . . . . . . . . . 155,46665,000 Ormat Technologies Inc. . . . . . . . . . . . . . . . . . . . . . . . 1,342,250

3,694,891

Energy and Utilities: Electric Integrated — 32.3%10,000 AES Tiete SA, Preference. . . . . . . . . . . . . . . . . . . . . . . 96,994

345,000 ALLETE Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,911,900108,000 Alliant Energy Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,419,440715,000 Ameren Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,039,30020,000 American DG Energy Inc.† . . . . . . . . . . . . . . . . . . . . . 42,000

1,080,191 American Electric Power Co. Inc. . . . . . . . . . . . . . . . 52,529,6887,001 Atlantic Power Corp.† . . . . . . . . . . . . . . . . . . . . . . . . . . 34,459

250,000 Avista Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,850,000805,000 Black Hills Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,452,20035,000 Cleco Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,646,05060,000 CMS Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,676,400

253,300 Dominion Resources Inc. . . . . . . . . . . . . . . . . . . . . . . 14,736,9945,000 DTE Energy Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341,700

500,001 Duke Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,295,0731,130,000 Edison International. . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,861,600

795,000 El Paso Electric Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,751,7501,000 Entergy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,240

1,075,000 Exelon Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,066,000620,000 FirstEnergy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,164,00060,000 Fortis Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,017,030

1,535,000 Great Plains Energy Inc.. . . . . . . . . . . . . . . . . . . . . . . . 35,596,6501,170,000 Hawaiian Electric Industries Inc.. . . . . . . . . . . . . . . . 32,420,700

40,000 IDACORP Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,930,800298,000 Integrys Energy Group Inc.. . . . . . . . . . . . . . . . . . . . . 17,331,68027,000 ITC Holdings Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,410,020

229,000 MGE Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,695,7601,090,000 NextEra Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,671,200

245,000 NiSource Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,188,300805,085 NorthWestern Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,090,688100,000 NV Energy Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,003,000358,000 OGE Energy Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,052,840585,000 Otter Tail Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,216,900143,000 Pepco Holdings Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,060,200117,550 PG&E Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,234,501355,000 Pinnacle West Capital Corp. . . . . . . . . . . . . . . . . . . . . 20,550,950

1,620,000 PNM Resources Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,729,80075,000 PPL Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,348,250

200,000 Public Service Enterprise Group Inc.. . . . . . . . . . . . 6,868,000685,000 SCANA Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,044,600

1,370,032 TECO Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,413,970410,062 The Empire District Electric Co.. . . . . . . . . . . . . . . . . 9,185,389553,000 The Southern Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,946,76038,000 Unitil Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,068,940

226,075 UNS Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,064,110

SharesMarketValue

540,000 Vectren Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,126,800970,000 Westar Energy Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,184,600710,000 Wisconsin Energy Corp.. . . . . . . . . . . . . . . . . . . . . . . . 30,451,900355,000 Xcel Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,543,500

892,426,626

Energy and Utilities: Electric Transmission andDistribution — 3.9%

436,600 CH Energy Group Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 28,549,274494,050 Consolidated Edison Inc. . . . . . . . . . . . . . . . . . . . . . . . 30,151,871

1,080,000 Northeast Utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,936,80019,000 UIL Holdings Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 752,210

106,390,155

Energy and Utilities: Global Utilities — 2.1%27,000 Chubu Electric Power Co. Inc. . . . . . . . . . . . . . . . . . . 328,12426,000 E.ON SE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453,93012,004 EDF SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230,1955,000 EDP - Energias de Portugal SA, ADR . . . . . . . . . . . 155,000

200,000 Electric Power Development Co. Ltd. . . . . . . . . . . . 5,084,18812,000 Eletropaulo Metropolitana Eletricidade de Sao

Paulo SA, Preference . . . . . . . . . . . . . . . . . . . . . . . . 59,146190,000 Emera Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,564,94635,000 Enagas SA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 814,971

208,000 Endesa SA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,395,324230,000 Enel SpA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,62858,800 GDF Suez, Strips†(a). . . . . . . . . . . . . . . . . . . . . . . . . . . 75

300,000 Hera SpA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 527,99665,000 Hokkaido Electric Power Co. Inc.† . . . . . . . . . . . . . . 662,87835,000 Hokuriku Electric Power Co.. . . . . . . . . . . . . . . . . . . . 430,924

185,000 Huaneng Power International Inc., ADR. . . . . . . . . 7,814,40065,000 Iberdrola SA, ADR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,220,05050,192 Iberdrola SA, London† . . . . . . . . . . . . . . . . . . . . . . . . . 231,66553,379 Iberdrola SA, Madrid. . . . . . . . . . . . . . . . . . . . . . . . . . . 248,587

405,000 Korea Electric Power Corp., ADR† . . . . . . . . . . . . . . 5,503,95060,000 Kyushu Electric Power Co. Inc.†. . . . . . . . . . . . . . . . 610,61217,000 National Grid plc, ADR . . . . . . . . . . . . . . . . . . . . . . . . . 986,170

3,000 Niko Resources Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,8713,000 Noble Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346,980

98,000 Red Electrica Corporacion SA . . . . . . . . . . . . . . . . . . 4,930,65224,000 Shikoku Electric Power Co. Inc.† . . . . . . . . . . . . . . . 341,1272,000 Snam SpA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,117

90,000 Statoil ASA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,175,748735,000 Talisman Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,003,75024,000 The Chugoku Electric Power Co. Inc. . . . . . . . . . . . 312,827

170,000 The Kansai Electric Power Co. Inc.† . . . . . . . . . . . . 1,609,07255,000 The Tokyo Electric Power Co. Inc.† . . . . . . . . . . . . . 135,550

165,000 Tohoku Electric Power Co. Inc.† . . . . . . . . . . . . . . . . 1,311,09657,268,549

Energy and Utilities: Merchant Energy — 1.9%40,000 GenOn Energy Inc. - Old, Escrow†(a) . . . . . . . . . . . 015,000 GenOn Energy Inc., Escrow†(a) . . . . . . . . . . . . . . . . 0

The Gabelli Utilities FundSchedule of Investments — March 31, 2013 (Unaudited)

See accompanying notes to schedule of investments.

2

SharesMarketValue

COMMON STOCKS (Continued)ENERGY AND UTILITIES (Continued)Energy and Utilities: Merchant Energy (Continued)

222,904 NRG Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,904,7273,690,074 The AES Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,384,230

52,288,957

Energy and Utilities: Natural Gas Integrated — 11.8%52,000 Apache Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,012,32060,000 Atlas Energy LP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,642,40050,000 Devon Energy Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,821,00021,000 Energen Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,092,210

985,000 Energy Transfer Equity LP. . . . . . . . . . . . . . . . . . . . . . 57,602,800140,000 Hess Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,025,40011,000 Kelt Exploration Ltd.† . . . . . . . . . . . . . . . . . . . . . . . . . . 72,009

940,000 Kinder Morgan Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,359,200200,000 McMoRan Exploration Co.† . . . . . . . . . . . . . . . . . . . . 3,270,000

2,270,074 National Fuel Gas Co. . . . . . . . . . . . . . . . . . . . . . . . . . . 139,269,040289,011 Northwest Natural Gas Co. . . . . . . . . . . . . . . . . . . . . . 12,664,462596,000 ONEOK Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,411,32035,000 Plains Exploration & Production Co.†. . . . . . . . . . . 1,661,450

600,000 Spectra Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . 18,450,000220,000 UGI Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,445,800

326,799,411

Energy and Utilities: Natural Gas Utilities — 4.9%126,000 AGL Resources Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,285,700100,000 Atmos Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,269,000

86,000 CenterPoint Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . 2,060,56040,000 Chesapeake Utilities Corp.. . . . . . . . . . . . . . . . . . . . . . 1,962,000

1,015,000 CONSOL Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,154,750325,033 Corning Natural Gas Corp.(b) . . . . . . . . . . . . . . . . . . 5,034,757152,000 Delta Natural Gas Co. Inc. . . . . . . . . . . . . . . . . . . . . . . 3,322,720

1,000 New Jersey Resources Corp. . . . . . . . . . . . . . . . . . . . 44,85072,000 Piedmont Natural Gas Co. Inc. . . . . . . . . . . . . . . . . . 2,367,36048,000 Questar Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,167,84044,000 RGC Resources Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 816,20070,000 South Jersey Industries Inc.. . . . . . . . . . . . . . . . . . . . 3,891,300

1,170,000 Southwest Gas Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . 55,528,200287,686 The Laclede Group Inc. . . . . . . . . . . . . . . . . . . . . . . . . 12,284,192

95,000 WGL Holdings Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,189,500136,378,929

Energy and Utilities: Natural Resources — 2.1%14,000 Alliance Holdings GP LP . . . . . . . . . . . . . . . . . . . . . . . 737,38086,300 Anadarko Petroleum Corp. . . . . . . . . . . . . . . . . . . . . . 7,546,935

335,000 BP plc, ADR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,187,250255,000 Cameco Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,298,90018,000 Compania de Minas Buenaventura SA, ADR. . . . . 467,280

280,260 Mueller Industries Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 14,935,05552,000 Occidental Petroleum Corp. . . . . . . . . . . . . . . . . . . . . 4,075,240

357,504 Peabody Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 7,561,210160,000 Tullow Oil plc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,992,722

SharesMarketValue

30,000 Uranium One Inc.†. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 82,68957,884,661

Energy and Utilities: Services — 1.4%390,000 ABB Ltd., ADR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,876,40040,000 Areva SA† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 590,67875,000 Halliburton Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,030,75063,000 Lufkin Industries Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 4,182,57035,000 MDU Resources Group Inc. . . . . . . . . . . . . . . . . . . . . 874,65059,000 Patterson-UTI Energy Inc. . . . . . . . . . . . . . . . . . . . . . . 1,406,56091,000 Rowan Companies plc, Cl. A† . . . . . . . . . . . . . . . . . . 3,217,76012,000 Tenaris SA, ADR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 489,360

1,250,282 Weatherford International Ltd.† . . . . . . . . . . . . . . . . 15,178,42337,847,151

Energy and Utilities: Water — 1.1%4,000 American States Water Co. . . . . . . . . . . . . . . . . . . . . . 230,280

115,000 American Water Works Co. Inc. . . . . . . . . . . . . . . . . 4,765,600440,000 Aqua America Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,833,600

4,500 California Water Service Group . . . . . . . . . . . . . . . . . 89,55010,500 Connecticut Water Service Inc. . . . . . . . . . . . . . . . . . 306,915

6,000 Consolidated Water Co. Ltd.. . . . . . . . . . . . . . . . . . . . 59,40018,800 Middlesex Water Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . 366,976

279,734 SJW Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,412,95189,000 The York Water Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,673,20015,000 United Utilities Group plc, ADR . . . . . . . . . . . . . . . . . 324,000

29,062,472

Diversified Industrial — 2.2%2,160,000 General Electric Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,939,200

271,865 Mueller Water Products Inc., Cl. A . . . . . . . . . . . . . . 1,612,15956,000 Park-Ohio Holdings Corp.† . . . . . . . . . . . . . . . . . . . . . 1,855,280

220,000 Tyco International Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . 7,040,00060,446,639

Environmental Services — 0.0%10,000 Covanta Holding Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 201,50085,000 Veolia Environnement SA . . . . . . . . . . . . . . . . . . . . . . 1,071,925

1,273,425

TOTAL ENERGY AND UTILITIES . . . . . . . . . . . . . . . . 1,761,761,866

COMMUNICATIONS — 18.5%Cable and Satellite — 6.7%

1,900,000 British Sky Broadcasting Group plc . . . . . . . . . . . . . 25,491,9301,900,000 Cablevision Systems Corp., Cl. A . . . . . . . . . . . . . . . 28,424,000

127,000 Charter Communications Inc., Cl. A† . . . . . . . . . . . 13,230,86025,000 Cogeco Cable Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,122,70570,000 Cogeco Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,863,12076,000 Comcast Corp., Cl. A . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,192,760

845,000 Comcast Corp., Cl. A, Special . . . . . . . . . . . . . . . . . . 33,478,90090,000 DIRECTV† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,094,900

810,000 DISH Network Corp., Cl. A . . . . . . . . . . . . . . . . . . . . . 30,699,000341,000 EchoStar Corp., Cl. A† . . . . . . . . . . . . . . . . . . . . . . . . . 13,288,770

The Gabelli Utilities FundSchedule of Investments (Continued) — March 31, 2013 (Unaudited)

See accompanying notes to schedule of investments.

3

SharesMarketValue

COMMON STOCKS (Continued)COMMUNICATIONS (Continued)Cable and Satellite (Continued)

175,000 Liberty Global Inc., Cl. A† . . . . . . . . . . . . . . . . . . . . . . $ 12,845,00075,000 Rogers Communications Inc., Cl. B. . . . . . . . . . . . . 3,829,50012,000 Shaw Communications Inc., Cl. B . . . . . . . . . . . . . . 296,640

117,000 Time Warner Cable Inc. . . . . . . . . . . . . . . . . . . . . . . . . 11,239,02045,000 Tokyo Broadcasting System Holdings Inc. . . . . . . 693,153

185,790,258

Computer Services Software and Systems — 0.2%420,025 EarthLink Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,276,534300,026 Internap Network Services Corp.† . . . . . . . . . . . . . . 2,805,243

5,081,777

Telecommunications — 8.9%890,000 AT&T Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,654,100100,000 Atlantic Tele-Network Inc. . . . . . . . . . . . . . . . . . . . . . . 4,851,000610,000 BCE Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,480,900105,000 Belgacom SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,610,464

11,261,000 Cable & Wireless Communications plc. . . . . . . . . . 7,176,1883,200,000 Cincinnati Bell Inc.†. . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,432,000

30,000 Deutsche Telekom AG. . . . . . . . . . . . . . . . . . . . . . . . . . 317,105800,000 Deutsche Telekom AG, ADR . . . . . . . . . . . . . . . . . . . . 8,464,00018,000 Koninklijke KPN NV, ADR. . . . . . . . . . . . . . . . . . . . . . . 61,02014,000 Level 3 Communications Inc.† . . . . . . . . . . . . . . . . . 284,060

115,000 Loral Space & Communications Inc. . . . . . . . . . . . . 7,116,200800 Mobistar SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,966

152,000 Nippon Telegraph & Telephone Corp. . . . . . . . . . . . 6,620,279360,000 Orascom Telecom Holding SAE, GDR†(c) . . . . . . . 1,144,800330,000 Orascom Telecom Media and Technology

Holding SAE, GDR(d). . . . . . . . . . . . . . . . . . . . . . . . 158,40063,500 Philippine Long Distance Telephone Co., ADR. . . 4,504,690

225,000 Portugal Telecom SGPS SA . . . . . . . . . . . . . . . . . . . . 1,114,444225,000 Portugal Telecom SGPS SA, ADR. . . . . . . . . . . . . . . 1,116,000

2,000 PT Indosat Tbk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,3382,300,000 Singapore Telecommunications Ltd. . . . . . . . . . . . . 6,656,992

800,000 Sprint Nextel Corp.† . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,968,000118,000 Swisscom AG, ADR . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,465,760

8,000 Tele2 AB, Cl. B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139,215150,000 Telecom Italia SpA, ADR . . . . . . . . . . . . . . . . . . . . . . . 1,069,500232,500 Telefonica Brasil SA, ADR . . . . . . . . . . . . . . . . . . . . . . 6,203,100339,394 Telefonica SA, ADR . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,585,213435,000 Telekom Austria AG . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,854,388455,000 Telenet Group Holding NV. . . . . . . . . . . . . . . . . . . . . . 22,501,538560,000 Telephone & Data Systems Inc.. . . . . . . . . . . . . . . . . 11,799,200433,000 tw telecom inc.† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,907,270870,000 Verizon Communications Inc. . . . . . . . . . . . . . . . . . . 42,760,500600,000 VimpelCom Ltd., ADR. . . . . . . . . . . . . . . . . . . . . . . . . . 7,134,000

244,169,630

Wireless Communications — 2.7%38,000 America Movil SAB de CV, Cl. L, ADR. . . . . . . . . . . 796,480

SharesMarketValue

63,000 China Mobile Ltd., ADR . . . . . . . . . . . . . . . . . . . . . . . . $ 3,347,19053,000 China Unicom Hong Kong Ltd., ADR. . . . . . . . . . . . 714,440

200 Hutchison Telecommunications Hong KongHoldings Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

54,028 Millicom International Cellular SA . . . . . . . . . . . . . . 4,272,534174,000 Millicom International Cellular SA, SDR. . . . . . . . . 13,897,998

6,500 Mobile TeleSystems OJSC, ADR . . . . . . . . . . . . . . . . 134,810400,000 NII Holdings Inc.† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,732,000

4,600 NTT DoCoMo Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,821,692140,000 SK Telecom Co. Ltd., ADR. . . . . . . . . . . . . . . . . . . . . . 2,501,800

400 SmarTone Telecommunications Holdings Ltd.. . . 66016,812 Tim Participacoes SA, ADR. . . . . . . . . . . . . . . . . . . . . 367,847

310,000 Turkcell Iletisim Hizmetleri A/S, ADR† . . . . . . . . . . 5,158,400350,000 United States Cellular Corp.† . . . . . . . . . . . . . . . . . . . 12,600,000800,000 Vodafone Group plc, ADR . . . . . . . . . . . . . . . . . . . . . . 22,728,000

75,073,950

TOTAL COMMUNICATIONS . . . . . . . . . . . . . . . . . . . . 510,115,615

OTHER — 6.6%Aerospace — 1.5%

250,031 Exelis Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,722,8382,278,000 Rolls-Royce Holdings plc . . . . . . . . . . . . . . . . . . . . . . 39,112,950

41,835,788

Aviation: Parts and Services — 0.2%130,000 Curtiss-Wright Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,511,000

Building and Construction — 0.1%16,000 Acciona SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 872,27646,000 Texas Industries Inc.†. . . . . . . . . . . . . . . . . . . . . . . . . . 2,903,060

3,775,336

Business Services — 0.5%1,400,015 Clear Channel Outdoor Holdings Inc., Cl. A† . . . . 10,486,112

70,000 Macquarie Infrastructure Co. LLC . . . . . . . . . . . . . . 3,782,80012,000 McGrath RentCorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373,200

14,642,112

Consumer Services — 0.1%80,000 The ADT Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,915,200

Diversified Industrial — 0.6%20,000 Bouygues SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542,48120,000 Donaldson Co. Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723,80065,000 Eaton Corp. plc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,981,25033,338 Gardner Denver Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,504,017

130,000 ITT Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,695,90032,000 Pentair Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,688,00012,000 Raven Industries Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 403,32015,000 Svenska Cellulosa AB, Cl. A . . . . . . . . . . . . . . . . . . . . 385,787

121,000 Twin Disc Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,034,68016,959,235

The Gabelli Utilities FundSchedule of Investments (Continued) — March 31, 2013 (Unaudited)

See accompanying notes to schedule of investments.

4

SharesMarketValue

COMMON STOCKS (Continued)OTHER (Continued)Electronics — 0.4%

453,461 Corning Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,044,63595,000 LSI Corp.†. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 644,100

110,000 Texas Instruments Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 3,902,80010,591,535

Entertainment — 1.0%470,000 Grupo Televisa SAB, ADR . . . . . . . . . . . . . . . . . . . . . . 12,506,700800,001 Vivendi SA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,525,677

29,032,377

Financial Services — 0.2%157,400 Kinnevik Investment AB, Cl. A . . . . . . . . . . . . . . . . . . 3,859,791

27,000 Kinnevik Investment AB, Cl. B . . . . . . . . . . . . . . . . . . 654,22730,027 WR Berkley Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,332,298

5,846,316

Health Care — 0.0%12,000 Tsumura & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437,882

Machinery — 0.7%38,000 Astec Industries Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,327,34011,000 Flowserve Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,844,81075,037 The Gorman-Rupp Co. . . . . . . . . . . . . . . . . . . . . . . . . . 2,254,862

470,000 Xylem Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,953,20018,380,212

Metals and Mining — 0.2%36,000 Freeport-McMoRan Copper & Gold Inc.. . . . . . . . . 1,191,60039,000 Haynes International Inc.. . . . . . . . . . . . . . . . . . . . . . . 2,156,70055,000 Materion Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,567,50012,000 Vulcan Materials Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . 620,400

5,536,200

Specialty Chemicals — 0.1%66,000 The Dow Chemical Co. . . . . . . . . . . . . . . . . . . . . . . . . . 2,101,440

Transportation — 1.0%480,000 GATX Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,945,60015,000 Kirby Corp.† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,152,00022,014 Providence and Worcester Railroad Co.. . . . . . . . . 333,952

26,431,552

TOTAL OTHER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183,996,185

TOTAL COMMON STOCKS . . . . . . . . . . . . . . . . . . . . . 2,455,873,666

CONVERTIBLE PREFERRED STOCKS — 0.0%COMMUNICATIONS — 0.0%Telecommunications — 0.0%

18,000 Cincinnati Bell Inc.,6.750% Cv. Pfd., Ser. B . . . . . . . . . . . . . . . . . . . . . 816,480

SharesMarketValue

WARRANTS — 0.3%ENERGY AND UTILITIES — 0.3%Energy and Utilities: Natural Gas Integrated — 0.3%

1,450,000 Kinder Morgan Inc., expire 05/25/17† . . . . . . . . . . $ 7,453,000

COMMUNICATIONS — 0.0%Telecommunications — 0.0%

86,000 Bharti Airtel Ltd., expire 09/19/13†(d) . . . . . . . . . . 462,242

TOTAL WARRANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,915,242

PrincipalAmount

U.S. GOVERNMENT OBLIGATIONS — 10.8%$297,064,000 U.S. Treasury Bills,

0.050% to 0.150%††,04/04/13 to 09/12/13. . . . . . . . . . . . . . . . . . . . . . . . 297,017,845

TOTAL INVESTMENTS — 100.0%(Cost $2,220,658,536) . . . . . . . . . . . . . . . . . . . $2,761,623,233

Aggregate tax cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,229,968,409

Gross unrealized appreciation . . . . . . . . . . . . . . . . . . $ 607,466,642Gross unrealized depreciation . . . . . . . . . . . . . . . . . . (75,811,818)Net unrealized appreciation/depreciation . . . . . . . . $ 531,654,824

(a) Security fair valued under procedures established by the Board of Trustees.The procedures may include reviewing available financial information aboutthe company and reviewing the valuation of comparable securities and otherfactors on a regular basis. At March 31, 2013, the market value of fair valuedsecurities amounted to $75 or 0.00% of total investments.

(b) Security considered an affiliated holding because the Fund owns at least5% of its outstanding shares.

(c) Security purchased pursuant to Regulation S under the Securities Act of1933, which exempts from registration securities offered and sold outsideof the United States. Such a security cannot be sold in the United Stateswithout either an effective registration statement filed pursuant to the SecuritiesAct of 1933, or pursuant to an exemption from registration. At March 31, 2013,the market value of the Regulation S security amounted to $1,144,800 or0.04% of total investments, which was valued under methods approved bythe Board of Trustees as follows:

AcquisitionShares Issuer

AcquisitionDate

AcquisitionCost

03/31/13Carrying

ValuePer Unit

360,000 Orascom TelecomHolding SAE, GDR. . . . . 05/05/09 $ 1,464,194 $3.1800

(d) Security exempt from registration under Rule 144A of the Securities Act of1933, as amended. These securities may be resold in transactions exemptfrom registration, normally to qualified institutional buyers. At March 31, 2013,the market value of Rule 144A securities amounted to $620,642 or 0.02%of total investments.

The Gabelli Utilities FundSchedule of Investments (Continued) — March 31, 2013 (Unaudited)

See accompanying notes to schedule of investments.

5

† Non-income producing security.†† Represents annualized yield at date of purchase.ADR American Depositary ReceiptGDR Global Depositary ReceiptOJSC Open Joint Stock CompanySDR Swedish Depositary ReceiptStrips Regular income payment portion of the security traded separately from the

principal portion of the security.

The Gabelli Utilities FundSchedule of Investments (Continued) — March 31, 2013 (Unaudited)

See accompanying notes to schedule of investments.

6

The Fund’s schedule of investments is prepared in accordance with U.S. Generally Accepted Accounting Principles(“GAAP”), which may require the use of management estimates and assumptions. Actual results could differfrom those estimates. The following is a summary of significant accounting policies followed by the Fund inthe preparation of its schedule of investments.

Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or tradedin the U.S. over-the-counter market for which market quotations are readily available are valued at the lastquoted sale price or a market’s official closing price as of the close of business on the day the securities arebeing valued. If there were no sales that day, the security is valued at the average of the closing bid and askedprices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid priceon that day. If no bid or asked prices are quoted on such day, the security is valued at the most recentlyavailable price or, if the Board of Trustees (the “Board”) so determines, by such other method as the Boardshall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one nationalsecurities exchange or market are valued according to the broadest and most representative market, as determinedby Gabelli Funds, LLC (the “Adviser”).

Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing valuesof such securities on the relevant market, but may be fair valued pursuant to procedures established by theBoard if market conditions change significantly after the close of the foreign market, but prior to the close ofbusiness on the day the securities are being valued. Debt instruments with remaining maturities of sixty daysor less that are not credit impaired are valued at amortized cost, unless the Board determines such amountdoes not reflect the securities’ fair value, in which case these securities will be fair valued as determined bythe Board. Debt instruments having a maturity greater than sixty days for which market quotations are readilyavailable are valued at the average of the latest bid and asked prices. If there were no asked prices quotedon such day, the security is valued using the closing bid price. U.S. government obligations with maturitiesgreater than sixty days are normally valued using a model that incorporates market observable data such asreported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securitiesare valued principally using dealer quotations.

Securities and assets for which market quotations are not readily available are fair valued as determined bythe Board. Fair valuation methodologies and procedures may include, but are not limited to: analysis and reviewof available financial and non-financial information about the company; comparisons with the valuation andchanges 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 thatcould be indicative of the value of the security.

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarizedinto 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).

The Gabelli Utilities FundNotes to Schedule of Investments (Unaudited)

7

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input bothindividually and in the aggregate that is significant to the fair value measurement. The inputs or methodologyused 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 valuethe Fund’s investments as of March 31, 2013 is as follows:

Valuation InputsLevel 1

Quoted PricesLevel 2 Other Significant

Observable InputsLevel 3 Significant

Unobservable InputsTotal Market Value

at 3/31/13INVESTMENTS IN SECURITIES:ASSETS (Market Value):Common Stocks:

ENERGY AND UTILITIESEnergy and Utilities: Merchant Energy $ 52,288,957 — $ 0 $ 52,288,957Other Industries (a) 1,709,472,909 — — 1,709,472,909

COMMUNICATIONS (a) 510,115,615 — — 510,115,615OTHER (a) 183,996,185 — — 183,996,185

Total Common Stocks 2,455,873,666 — 0 2,455,873,666Convertible Preferred Stocks (a) 816,480 — — 816,480Warrants (a) 7,453,000 $ 462,242 — 7,915,242U.S. Government Obligations — 297,017,845 — 297,017,845TOTAL INVESTMENTS IN SECURITIES –

ASSETS $2,464,143,146 $297,480,087 $ 0 $2,761,623,233

(a) Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.

The Fund did not have transfers between Level 1 and Level 2 during the period ended March 31, 2013.The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

Additional Information to Evaluate Qualitative Information.

General. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated withthe Adviser – to value most of its securities, and uses broker quotes provided by market makers of securitiesnot valued by these and other recognized pricing sources. Several different pricing feeds are received to valuedomestic equity securities, international equity securities, preferred equity securities, and fixed income securities.The data within these feeds is ultimately sourced from major stock exchanges and trading systems where thesesecurities trade. The prices supplied by external sources are checked by obtaining quotations or actual transactionprices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will besought from another pricing service or from a broker/dealer that trades that security or similar securities.

Fair Valuation. Fair valued securities may be common and preferred equities, warrants, options, rights,and fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations arenot available, such as securities not traded for several days, or for which current bids are not available, orwhich are restricted as to transfer. Among the factors to be considered to fair value a security are recent pricesof comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use ofvaluation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the precedingfactors do not apply. A significant change in the unobservable inputs could result in a significantly lower orhigher value in such Level 3 investments. The circumstances of Level 3 securities are frequently monitored todetermine if fair valuation measures continue to apply.

The Gabelli Utilities FundNotes to Schedule of Investments (Unaudited) (Continued)

8

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

Derivative Financial Instruments. The Fund may engage in various portfolio investment strategies by investingin a number of derivative financial instruments for the purposes of increasing the income of the Fund or hedgingagainst a specific transaction with respect to either the currency in which the transaction is denominated oranother 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, orcurrency 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 notperform its duties under a contract, or that, in the event of default, the Fund may be delayed in or preventedfrom obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthinessof the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactionsinvolves investment risks, transaction costs, and potential losses to which the Fund would not be subject absentthe use of these strategies. The consequences of these risks, transaction costs, and losses may have a negativeimpact on the Fund’s ability to pay distributions.

The Fund’s derivative contracts held at March 31, 2013, if any, are not accounted for as hedging instrumentsunder GAAP and are disclosed in the Schedule of Investments together with the related counterparty.

Swap Agreements. The Fund may enter into equity contract for difference swap transactions for the purposeof increasing the income of the Fund. The use of swaps is a highly specialized activity that involves investmenttechniques and risks different from those associated with ordinary portfolio security transactions. In an equitycontract for difference swap, a set of future cash flows is exchanged between two counterparties. One of thesecash flow streams will typically be based on a reference interest rate combined with the performance of anotional 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 securitiesat the time an equity contract for difference swap transaction reaches its scheduled termination date, there isa risk that the Fund will not be able to obtain a replacement transaction or that the terms of the replacementwill not be as favorable as on the expiring transaction. At March 31, 2013, the Fund held no investments inequity contract for difference swap agreements.

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

The Gabelli Utilities FundNotes to Schedule of Investments (Unaudited) (Continued)

9

received. The portion of foreign currency gains and losses related to fluctuation in exchange rates betweenthe 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 offoreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. Therisks include possible revaluation of currencies, the inability to repatriate funds, less complete financial informationabout companies, and possible future adverse political and economic developments. Moreover, securities ofmany foreign issuers and their markets may be less liquid and their prices more volatile than securities ofcomparable 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, basedupon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

Restricted Securities. The Fund may invest up to 15% of its net assets in securities for which the marketsare restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractualrestrictions. The sale of restricted securities often requires more time and results in higher brokerage chargesor dealer discounts and other selling expenses than does the sale of securities eligible for trading on nationalsecurities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower thansimilar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutionalinvestors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standardsestablished by the Board. The continued liquidity of such securities is not as well assured as that of publiclytraded securities, and accordingly the Board will monitor their liquidity. For the restricted securities the Fundheld as of March 31, 2013, refer to the Schedule of Investments.

Tax Information. The Fund intends to continue to qualify as a regulated investment company under Subchapter Mof the Internal Revenue Code of 1986, as amended.

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

Monthly Distributions - $0.07 per shareThe Gabelli Utilities Fund has a $0.07 per share monthly distribution policy. For more specific dividend and tax information,please visit our website at www.gabelli.com or call 800-GABELLI (800-422-3554). Shareholders should be aware thata portion of the distribution may represent a non-taxable return of capital. Distributions of capital reduce the costbasis of your shares if you hold them in a taxable account. The distributions should not be confused with the yield ortotal return of the Fund.

The Gabelli Utilities FundNotes to Schedule of Investments (Unaudited) (Continued)

10

THE GABELLI UTILITIES FUNDOne Corporate CenterRye, NY 10580-1422

Portfolio Manager Biography

Mario J. Gabelli, CFA, is Chairman and Chief Executive Officer of GAMCO Investors, Inc. that he founded in1976 and Chief Investment Officer - Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc.Mr. Gabelli is a summa cum laude graduate of Fordham University and holds an MBA degree from ColumbiaUniversity Graduate School of Business, and an Honorary Doctorate Degree from Roger Williams University inRhode Island.

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

THE GABELLI UTILITIES FUNDOne Corporate CenterRye, New York 10580-1422

t 800-GABELLI (800-422-3554)f 914-921-5118e info@gabelli.com

GABELLI.COM

Net Asset Value per share available dailyby calling 800-GABELLI after 7:00 P.M.

BOARD OF TRUSTEESMario J. Gabelli, CFAChairman andChief Executive Officer,GAMCO Investors, Inc.

Anthony J. ColavitaPresident,Anthony J. Colavita, P.C.

Vincent D. EnrightFormerSeniorVicePresident andChief Financial Officer,KeySpan Corp.

Mary E. HauckFormer Senior PortfolioManager,Gabelli-O'Connor FixedIncome Mutual FundManagement Co.

Kuni NakamuraPresident,Advanced Polymer, Inc.

Werner J. Roeder, MDMedical Director,Lawrence Hospital

OFFICERSBruce N. AlpertPresident and ActingChief Compliance Officer

Agnes MulladySecretary and Treasurer

DISTRIBUTOR

G.distributors, LLC

CUSTODIAN, TRANSFERAGENT, AND DIVIDENDDISBURSING AGENT

State Street Bank and TrustCompany

LEGAL COUNSEL

Skadden, Arps, Slate,Meagher & Flom LLP

This report is submitted for the general information of the shareholdersofTheGabelli UtilitiesFund. It is not authorized fordistribution toprospectiveinvestors unless preceded or accompanied by an effective prospectus.

THEGABELLIUTILITIESFUND

First Quarter ReportMarch 31, 2013

GAB470Q113QR