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<SEC-DOCUMENT>0000950123-05-011510.txt : 20050927
<SEC-HEADER>0000950123-05-011510.hdr.sgml : 20050927
<ACCEPTANCE-DATETIME>20050927060203
ACCESSION NUMBER:		0000950123-05-011510
CONFORMED SUBMISSION TYPE:	497
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20050927
DATE AS OF CHANGE:		20050927
EFFECTIVENESS DATE:		20050927

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GABELLI EQUITY TRUST INC
		CENTRAL INDEX KEY:			0000794685
		IRS NUMBER:				222736509
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		497
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-127724
		FILM NUMBER:		051103977

	BUSINESS ADDRESS:	
		STREET 1:		ONE CORP CENTER
		CITY:			RYE
		STATE:			NY
		ZIP:			10580
		BUSINESS PHONE:		9149215070
</SEC-HEADER>
<DOCUMENT>
<TYPE>497
<SEQUENCE>1
<FILENAME>y11686fne497.htm
<DESCRIPTION>PROSPECTUS FILING
<TEXT>
<HTML>
<HEAD>
<TITLE>PROSPECTUS FILING</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
<B>PROSPECTUS</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>143,681,307 Rights for 20,525,901 Shares</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 22pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B> The Gabelli Equity Trust Inc.</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="right" style="font-size: 10pt;">
<IMG src="y11686fny90204l1.gif" alt="GABELLI LOGO">
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 8pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Shares of Common Stock</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
The Gabelli Equity Trust Inc. (the &#147;Equity Trust&#148;) is
issuing transferable rights (&#147;Rights&#148;) to its
shareholders of common stock, par value $.001&nbsp;per share.
These Rights will allow you to subscribe for new shares of the
Common Stock of the Equity Trust (the &#147;Common
Shares&#148;). For every seven Rights that you receive, you may
buy one new Common Share of the Equity Trust plus, in certain
circumstances and only if you are a shareholder on the record
date for the rights offering, additional Common Shares pursuant
to an over-subscription privilege. You will receive one Right
for each outstanding Common Share of the Equity Trust you own on
September&nbsp;21, 2005 (the &#147;Record Date&#148;) rounded up
to the nearest number of Rights evenly divisible by seven.
Fractional shares will not be issued upon the exercise of the
Rights. Accordingly, new Common Shares may be purchased only
pursuant to the exercise of Rights in integral multiples of
seven.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
The Rights are transferable and will be admitted for trading on
the New York Stock Exchange (&#147;NYSE&#148;) under the symbol
&#147;GAB&nbsp;RT.&#148; The Common Shares are presently listed
on the NYSE under the symbol &#147;GAB.&#148; The new Common
Shares issued in this Rights offering (the &#147;Offer&#148;)
will also be listed under the symbol &#147;GAB.&#148; On
<U>September&nbsp;16</U>, 2005 (the last trading date prior to
the Common Shares trading ex-Rights), the last reported net
asset value per share of the Common Shares was $<U>8.73</U> and
the last reported sales price per Common Share on the NYSE was
$<U>9.37</U>. The purchase price per Common Share (the
&#147;Subscription Price&#148;) will be $7.00. The offer will
expire at 5:00&nbsp;p.m., New York time, on October&nbsp;26,
2005, unless the Offer is extended as described in this
Prospectus (the &#147;Expiration Date&#148;). <B>Rights acquired
in the secondary market may not participate in the
over-subscription privilege</B>.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust is a non-diversified closed-end management
investment company registered under the Investment Company Act
of 1940, as amended (the &#147;1940 Act&#148;). The Equity
Trust&#146;s primary investment objective is to achieve
long-term growth of capital by investing primarily in a
portfolio of equity securities consisting of common stock,
preferred stock, convertible or exchangeable securities and
warrants and rights to purchase such securities. Income is a
secondary investment objective. Gabelli Funds, LLC
(&#147;Gabelli Funds&#148; or the &#147;Adviser&#148;) serves as
investment adviser to the Equity Trust. An investment in the
Equity Trust is not appropriate for all investors. We cannot
assure you that the Equity Trust&#146;s investment objectives
will be achieved. FOR A DISCUSSION OF CERTAIN RISK FACTORS AND
SPECIAL CONSIDERATIONS WITH RESPECT TO OWNING COMMON SHARES OF
THE EQUITY TRUST, SEE &#147;RISK FACTORS AND SPECIAL
CONSIDERATIONS&#148; ON PAGE&nbsp;28 OF THIS PROSPECTUS. The
Equity Trust has outstanding four series of preferred stock
which have resulted in a leveraged capital structure. For a
discussion of the effects and certain risks associated with the
use of leverage see &#147;Capitalization&nbsp;&#151; Effects of
Leverage&#148; and &#147;Risk Factors and Special
Considerations&nbsp;&#151; Leverage Risk.&#148; The address of
the Equity Trust is One Corporate Center, Rye, New York
10580-1422 and its telephone number is (914)&nbsp;921-5100.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
This Prospectus sets forth certain information about the Equity
Trust an investor should know before investing. Accordingly,
this Prospectus should be retained for future reference.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE
SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE
SECURITIES OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR
COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIME.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY ANY
SECURITIES REGULATORY AUTHORITY IN CANADA. THIS OFFERING WILL
NOT BE MADE IN ANY PROVINCE OF CANADA WHERE IT IS NOT PERMITTED
BY LAW.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="58%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Proceeds to</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Subscription</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Equity</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Price</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Sales Load</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Trust(1)</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Per Common Share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    None</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.00</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>143,681,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    None</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>143,681,307</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Before deduction of expenses incurred by the Equity Trust,
    estimated at $600,000.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
<B>SHAREHOLDERS WHO DO NOT EXERCISE THEIR RIGHTS MAY, AT THE
COMPLETION OF THE OFFER, OWN A SMALLER PROPORTIONAL INTEREST IN
THE EQUITY TRUST THAN IF THEY EXERCISED THEIR RIGHTS. AS A
RESULT OF THE OFFER YOU MAY EXPERIENCE DILUTION OR ACCRETION OF
THE AGGREGATE NET ASSET VALUE OF YOUR COMMON SHARES DEPENDING
UPON WHETHER THE EQUITY TRUST&#146;S NET ASSET VALUE PER COMMON
SHARE IS ABOVE OR BELOW THE SUBSCRIPTION PRICE ON THE EXPIRATION
DATE. </B>The Equity Trust cannot state precisely the extent of
any dilution or accretion at this time because the Equity Trust
does not know what the net asset value per Common Share will be
when the Offer expires or what proportion of the Rights will be
exercised. Gabelli Funds&#146; parent company, GAMCO Investors,
Inc., and its affiliates (&#147;Affiliated Parties&#148;) may
purchase Common Shares through the primary subscription and the
over-subscription privilege and Mr.&nbsp;Mario J. Gabelli, who
may be deemed to control the Equity Trust&#146;s investment
adviser, or his affiliated entities may also purchase additional
Common Shares through the primary subscription and
over-subscription privilege on the same terms as other
shareholders.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
This Prospectus sets forth concisely certain information about
the Equity Trust that a prospective investor should know before
investing. Investors are advised to read and retain it for
future reference.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;
A Statement of Additional Information dated September&nbsp;21,
2005 (the &#147;SAI&#148;) containing additional information
about the Equity Trust has been filed with the SEC and is
incorporated by reference in its entirety into this Prospectus.
A copy of the SAI, the table of contents of which appears on
page&nbsp;47 of this Prospectus, the annual report and the
semi-annual report are available at the Equity Trust&#146;s
website, www.gabelli.com. To obtain any of these documents, to
request other information about the Equity Trust, or to make
shareholder inquiries, investors may contact the Equity Trust at
(800)&nbsp;GABELLI, (800)&nbsp;422-3554 or (914)&nbsp;921-5100.
Investors may also obtain the Statement of Additional
Information, material incorporated by reference, and other
information about the Equity Trust from the SEC&#146;s website
(http://www.sec.gov). Shareholder inquiries should be directed
to the Subscription Agent, Computershare Shareholder Services,
Inc., at (800)&nbsp;336-6983 or (781)&nbsp;575-3100.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
September 21, 2005
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV align="left" style="font-size: 10pt;">

</DIV>

<DIV align="left" style="font-size: 10pt;">
<!-- TOC -->
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name="tocpage"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>NO DEALER, SALESPERSON OR OTHER PERSON HAS BEEN AUTHORIZED TO
GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS NOT
CONTAINED IN THIS PROSPECTUS. IF GIVEN OR MADE, SUCH INFORMATION
OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN
AUTHORIZED BY THE EQUITY TRUST OR THE EQUITY TRUST&#146;S
INVESTMENT ADVISER. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER
TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITY
OTHER THAN THE COMMON SHARES OFFERED BY THIS PROSPECTUS, NOR
DOES IT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN
OFFER TO BUY COMMON SHARES BY ANYONE IN ANY JURISDICTION IN
WHICH SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Page</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#101'>PROSPECTUS SUMMARY</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#102'>TABLE OF FEES AND EXPENSES</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#103'>FINANCIAL HIGHLIGHTS</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#104'>THE OFFER</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#105'>USE OF PROCEEDS</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#106'>INVESTMENT OBJECTIVES AND POLICIES</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#107'>RISK FACTORS AND SPECIAL CONSIDERATIONS</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#108'>MANAGEMENT OF THE EQUITY TRUST</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#109'>NET ASSET VALUE</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#110'>DIVIDENDS AND DISTRIBUTIONS</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#111'>TAXATION</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#112'>CAPITALIZATION</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#113'>ANTI-TAKEOVER PROVISIONS OF THE CHARTER AND
    BY-LAWS</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#114'>LEGAL PROCEEDINGS</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#115'>CUSTODIAN, TRANSFER AGENT,
    DIVIDEND-DISBURSING AGENT AND REGISTRAR</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#116'>LEGAL MATTERS</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#117'>EXPERTS</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#118'>FURTHER INFORMATION</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt;">i
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='101'></A>
</DIV>

<!-- link1 "PROSPECTUS SUMMARY" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PROSPECTUS SUMMARY</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This summary highlights selected information that is described
more fully elsewhere in this Prospectus. It may not contain all
of the information that is important to you. To understand the
Offer fully, you should read the entire document carefully,
including the risk factors which can be found on page&nbsp;28,
under the heading &#147;Risk Factors and Special
Considerations.&#148;
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Purpose of the Offer</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors of the Equity Trust has determined that
it would be in the best interests of the Equity Trust and its
existing shareholders to increase the assets of the Equity Trust
so that the Equity Trust may be in a better position to take
advantage of investment opportunities that may arise. The Offer
seeks to reward existing shareholders by giving them the
opportunity to purchase additional shares at a price that may be
below market and/or net asset value generally without incurring
any commission or charge. The distribution of the Rights, which
themselves may have intrinsic value, will also give
non-participating shareholders the potential of receiving a cash
payment upon the sale of their Rights, which may be viewed as
partial compensation for the possible dilution of their
interests in the Equity Trust as a result of the Offer.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors believes that increasing the size of the
Equity Trust may lower the Equity Trust&#146;s expenses as a
proportion of average net assets because the Equity Trust&#146;s
fixed costs can be spread over a larger asset base. There can be
no assurance that by increasing the size of the Equity Trust,
the Equity Trust&#146;s expense ratio will be lowered. The Board
of Directors also believes that a larger number of outstanding
shares and a larger number of beneficial owners of shares could
increase the level of market interest in and visibility of the
Equity Trust and improve the trading liquidity of the Equity
Trust&#146;s shares on the NYSE.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Important Terms of the Offer</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="56%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total number of shares available for primary subscription</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    20,525,901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Number of Rights you will receive for each outstanding share you
    own on the Record Date</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    One Right for every one share*</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Number of shares you may purchase with your Rights at the
    Subscription Price per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    One share for every seven Rights**</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Subscription Price</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    $7.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;&nbsp;</TD>
    <TD align="left">
    The number of Rights to be issued to a shareholder on the Record
    Date will be rounded up to the nearest number of Rights evenly
    divisible by seven.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>**&nbsp;</TD>
    <TD align="left">
    Holders of Rights on the Record Date will be able to acquire
    additional Equity Trust shares pursuant to an over-subscription
    privilege in certain circumstances.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Shareholder inquiries should be directed to:
</DIV>

<DIV align="center" style="font-size: 10pt;">
Computershare Shareholder Services, Inc.
</DIV>

<DIV align="center" style="font-size: 10pt;">
(800) 336-6983 or (781) 575-3100
</DIV>

<DIV align="center" style="font-size: 10pt;">
or Gabelli Funds
</DIV>

<DIV align="center" style="font-size: 10pt;">
(800)&nbsp;GABELLI (422-3554)
</DIV>

<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Over-Subscription Privilege</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shareholders on the Record Date (&#147;Record Date
Shareholders&#148;) who fully exercise all Rights initially
issued to them are entitled to buy those Equity Trust shares,
referred to as &#147;primary over-subscription shares,&#148;
that were not purchased by other Rights holders. If enough
primary over-subscription shares are available, all such
requests will be honored in full. If the requests for primary
over-subscription shares exceed the primary over-subscription
shares available, the available primary over-subscription shares
will be allocated pro rata among those fully exercising Record
Date Shareholders who over-subscribe based on the number of
Rights
</DIV>

<P align="center" style="font-size: 10pt;">1

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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
originally issued to them by the Equity Trust. Common Shares
acquired pursuant to the over-subscription privilege are subject
to allotment, which is more fully discussed under &#147;The
Offer&nbsp;&#151; Over-Subscription Privilege.&#148; <B>Rights
acquired in the secondary market may not participate in the
over-subscription privilege.</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, in the event that the Equity Trust&#146;s per share
net asset value on the Expiration Date is equal to or less than
the Subscription Price, the Equity Trust, in its sole
discretion, may determine to issue additional Common Shares in
an amount of up to 20% of the shares issued pursuant to the
primary subscription, referred to as &#147;secondary
over-subscription shares.&#148; Should the Equity Trust
determine to issue some or all of the secondary
over-subscription shares, they will be allocated only among
Record Date Shareholders who submitted over-subscription
requests. Secondary over-subscription shares will be allocated
pro rata among those fully exercising Record Date Shareholders
who over-subscribe based on the number of Rights originally
issued to them by the Equity Trust. <B>Rights acquired in the
secondary market may not participate in the over-subscription
privilege.</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Method for Exercising Rights</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except as described below, subscription certificates evidencing
the Rights (&#147;Subscription Certificates&#148;) will be sent
to Record Date Shareholders or their nominees. If you wish to
exercise your Rights, you may do so in the following ways:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Complete and sign the Subscription Certificate. Mail it in the
    envelope provided or deliver it, together with payment in full
    to Computershare Shareholder Services, Inc. (the
    &#147;Subscription Agent&#148;) at the address indicated on the
    Subscription Certificate. Your completed and signed Subscription
    Certificate and payment must be received by the Expiration Date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Contact your broker, banker or trust company, which can arrange
    on your behalf to deliver your payment and to guarantee delivery
    of a properly completed and executed Subscription Certificate by
    the close of business on the third Business Day after the
    Expiration Date pursuant to a notice of guaranteed delivery. A
    fee may be charged for this service by your broker, bank or
    trust company. The notice of guaranteed delivery must be
    received by the Expiration Date.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A Rights holder will have no right to rescind a purchase after
the Subscription Agent has received payment either by means of a
notice of guaranteed delivery or a check or money order. See
&#147;The Offer&nbsp;&#151; Method of Exercise of Rights&#148;
and &#147;The Offer&nbsp;&#151; Payment for Shares.&#148;
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Sale of Rights</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Rights are transferable until the Expiration Date and have
been admitted for trading on the NYSE. Although no assurance can
be given that a market for the Rights will develop, trading in
the Rights on the NYSE will begin three Business Days prior to
the Record Date and may be conducted until the close of trading
on the last NYSE trading day prior to the Expiration Date. The
value of the Rights, if any, will be reflected by the market
price. Rights may be sold by individual holders or may be
submitted to the Subscription Agent for sale. Any Rights
submitted to the Subscription Agent for sale must be received by
the Subscription Agent on or before October&nbsp;25, 2005, one
Business Day prior to the Expiration Date, due to normal
settlement procedures. Rights that are sold will not confer any
right to acquire any Common Shares in the primary or secondary
over-subscription, and any Record Date shareholder who sells any
Rights will not be eligible to participate in the primary or
secondary over-subscription. Trading of the Rights on the NYSE
will be conducted on a when-issued basis until and including the
date on which the Subscription Certificates are mailed to Record
Date shareholders and thereafter will be conducted on a
regular-way basis until and including the last NYSE trading day
prior to the Expiration Date. The shares will begin trading
ex-Rights two Business Days prior to the Record Date. If the
Subscription Agent receives Rights for sale in a timely manner,
it will use its best efforts to sell the Rights on the NYSE. The
Subscription Agent will also attempt to sell any Rights
(i)&nbsp;a Rights holder is unable to exercise because the
Rights represent the right to subscribe for less than one new
Common Share (defined herein) or (ii)&nbsp;attributable to
shareholders whose record addresses are outside the United
States and Canada or who have an APO or FPO address as described
below under &#147;Restrictions on Foreign Shareholders&#148; and
under &#147;The Offer&nbsp;&#151; Foreign Restrictions&#148; in
the prospectus. Any
</DIV>

<P align="center" style="font-size: 10pt;">2

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<DIV align="left" style="font-size: 10pt;">
commissions will be paid by the selling Rights holders. Neither
the Equity Trust nor the Subscription Agent will be responsible
if Rights cannot be sold and neither has guaranteed any minimum
sales price for the Rights. If the Rights can be sold, sales of
these Rights will be deemed to have been effected at the
weighted average price received by the Subscription Agent on the
day such Rights are sold, less any applicable brokerage
commissions, taxes and other expenses. For purposes of this
Prospectus, a &#147;Business Day&#148; shall mean any day on
which trading is conducted on the NYSE.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shareholders are urged to obtain a recent trading price for the
Rights on the NYSE from their broker, bank, financial advisor or
the financial press.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Banks, broker-dealers and trust companies that hold shares
for the accounts of others are advised to notify those persons
that purchase rights in the secondary market that such rights
will not participate in the over-subscription privilege.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Offering Expenses</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Offering expenses incurred by the Equity Trust are estimated to
be $600,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Restrictions on Foreign Shareholders</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subscription Certificates will only be mailed to shareholders
whose record addresses are within the United States and Canada
(other than an APO or FPO address). Shareholders whose addresses
are outside the United States and Canada or who have an APO or
FPO address and who wish to subscribe to the Offer either in
part or in full should contact the Subscription Agent, by
written instruction or recorded telephone conversation no later
than three Business Days prior to the Expiration Date. The
Equity Trust will determine whether the offering may be made to
any such shareholder. This offering will not be made in any
jurisdiction where it would be unlawful to do so. If the
Subscription Agent has received no instruction by the third
Business Day prior to the Expiration Date or the Equity Trust
has determined that the offering may not be made to a particular
shareholder, the Subscription Agent will attempt to sell all of
such shareholder&#146;s Rights and remit the net proceeds, if
any, to such shareholder. If the Rights can be sold, sales of
these Rights will be deemed to have been effected at the
weighted average price received by the Subscription Agent on the
day the Rights are sold, less any applicable brokerage
commissions, taxes and other expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Use of Proceeds</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust estimates the net proceeds of the Offer to be
approximately $143,081,307. This figure is based on the
Subscription Price per share of $7.00 and assumes all new Common
Shares offered are sold and that the expenses related to the
Offer estimated at approximately $600,000 are paid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gabelli Funds anticipates that investment of the proceeds will
be made in accordance with the Equity Trust&#146;s investment
objectives and policies as appropriate investment opportunities
are identified, which is expected to be substantially completed
in approximately three months; however, the identification of
appropriate investment opportunities pursuant to Gabelli
Funds&#146; investment style or changes in market conditions may
cause the investment period to extend as long as six months.
Pending such investment, the proceeds will be held in high
quality short-term debt securities and instruments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Important Dates to Remember</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Please note that the dates in the table below may change if the
Offer is extended.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="52%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Event</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Date</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Record Date</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>September&nbsp;21, 2005</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Subscription Period</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>September&nbsp;21, 2005 through October&nbsp;26, 2005**</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Expiration of the Offer*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>October&nbsp;26, 2005**</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payment for Guarantees of Delivery Due*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>October&nbsp;31, 2005**</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Confirmation to Participants</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>November&nbsp;4, 2005**</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt;">3

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<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>*&nbsp;&nbsp;</TD>
    <TD align="left">
    A shareholder exercising Rights must deliver by 5:00 New York
    time on October&nbsp;26, 2005 either (a)&nbsp;a Subscription
    Certificate and payment for shares or (b)&nbsp;a notice of
    guaranteed delivery.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>**&nbsp;</TD>
    <TD align="left">
    Unless the offer is extended to a date no later than
    November&nbsp;9, 2005.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Information Regarding the Equity Trust</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust is a non-diversified closed-end management
investment company organized under the laws of the State of
Maryland on May&nbsp;20, 1986. The Equity Trust&#146;s primary
investment objective is to achieve long-term growth of capital
by investing primarily in a portfolio of equity securities
consisting of common stock, preferred stock, convertible or
exchangeable securities and warrants and rights to purchase such
securities selected by Gabelli Funds. Income is a secondary
investment objective. No assurance can be given that the Equity
Trust&#146;s investment objectives will be achieved. See
&#147;Investment Objectives and Policies.&#148; The Equity
Trust&#146;s outstanding Common Shares are listed and traded on
the NYSE. The average weekly trading volume of the Common Shares
on the NYSE during the period from January&nbsp;1, 2005 through
June&nbsp;30, 2005 was 745,817&nbsp;shares. As of June&nbsp;30,
2005 the Equity Trust has outstanding 6,600,000&nbsp;shares of
7.20% Series&nbsp;B Cumulative Preferred Stock, liquidation
preference $25&nbsp;per share (the &#147;Series&nbsp;B Preferred
Shares&#148;); 5,200&nbsp;shares of Series&nbsp;C Auction Rate
Cumulative Preferred Stock, liquidation preference
$25,000&nbsp;per share (the &#147;Series&nbsp;C Auction Rate
Preferred Shares&#148;); 2,949,700&nbsp;shares of 5.875%
Series&nbsp;D Cumulative Preferred Stock, liquidation preference
$25&nbsp;per share (the &#147;Series&nbsp;D Preferred
Shares&#148;) and 2,000&nbsp;shares of Series&nbsp;E Auction
Rate Cumulative Preferred Stock, liquidation preference
$25,000&nbsp;per share (the &#147;Series&nbsp;E Auction Rate
Preferred Shares&#148;). As of June&nbsp;30, 2005, the net
assets of the Equity Trust were approximately $1.6&nbsp;billion.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Information Regarding Gabelli Funds</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gabelli Funds and its predecessor, Gabelli Funds, Inc., have
served as the investment adviser to the Equity Trust since its
inception. Gabelli Funds provides a continuous investment
program for the Equity Trust&#146;s portfolio and oversees the
administration of all aspects of the Equity Trust&#146;s
business and affairs. Gabelli Funds and its affiliates have been
engaged in the business of providing investment advisory and
portfolio management services for over 28&nbsp;years and as of
June&nbsp;30, 2005, managed total assets of approximately
$27.6&nbsp;billion. The Equity Trust pays Gabelli Funds an
annual fee, calculated weekly and paid monthly, equal to 1.00%
of the Equity Trust&#146;s average weekly net assets plus the
liquidation value of its outstanding preferred stock. Gabelli
Funds has agreed to reduce the management fee on the incremental
assets attributable to the cumulative preferred stock during the
fiscal year if the total return of the net asset value of Common
Shares, including distributions and advisory fee subject to
reduction for that year, does not exceed the stated dividend
rate or corresponding swap rate of each particular series of
preferred stock. See &#147;Management of the Equity
Trust&nbsp;&#151; Investment Adviser.&#148; Since Gabelli
Funds&#146; fees are based on the net assets of the Equity
Trust, Gabelli Funds will benefit from the Offer. In addition,
two Directors who are &#147;interested persons&#148; of the
Equity Trust could benefit indirectly from the Offer because of
their interest in Gabelli Funds. See &#147;The Offer&nbsp;&#151;
Purpose of the Offer.&#148;
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt;">4

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Risk Factors and Special Considerations</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following summarizes some of the matters that you should
consider before investing in the Equity Trust through the Offer.
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
    Dilution</TD>
    <TD></TD>
    <TD valign="top">
    Shareholders who do not exercise their Rights may, at the
    completion of the Offer, own a smaller proportional interest in
    the Equity Trust than if they exercised their Rights. As a
    result of the Offer you may experience dilution in net asset
    value per share if the subscription price is below the net asset
    value per share on the Expiration Date. If the Subscription
    Price per share is below the net asset value per share of the
    Equity Trust&#146;s shares on the Expiration Date, you will
    experience an immediate dilution of the aggregate net asset
    value of your shares if you do not participate in the Offer and
    you will experience a reduction in the net asset value per share
    of your shares whether or not you participate in the Offer. The
    Equity Trust cannot state precisely the extent of this dilution
    (if any) if you do not exercise your Rights because the Equity
    Trust does not know what the net asset value per share will be
    when the Offer expires or what proportion of the Rights will be
    exercised. Assuming, for example, that all Rights are exercised,
    the Subscription Price is $7.00 and the Equity Trust&#146;s net
    asset value per share at the expiration of the Offer is $7.50,
    the Equity Trust&#146;s net asset value per share (after payment
    of estimated offering expenses) would be reduced by
    approximately $0.07 (0.88%) per share. See &#147;Risk Factors
    and Special Considerations&nbsp;&#151; Dilution.&#148; If you do
    not wish to exercise your Rights, you should consider selling
    them as set forth in this Prospectus. The Equity Trust cannot
    give any assurance, however, that a market for the Rights will
    develop or that the Rights will have any marketable value.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Leveraging</TD>
    <TD></TD>
    <TD valign="top">
    The Equity Trust uses financial leverage for investment purposes
    by issuing preferred stock. The amount of leverage represents
    approximately 26% of the Equity Trust&#146;s Managed Assets
    (defined as the aggregate net asset value of the common stock
    plus assets attributable to outstanding shares of preferred
    stock, with no deduction for the liquidation preference of such
    shares of preferred stock) as of June&nbsp;30, 2005. The Equity
    Trust&#146;s leveraged capital structure creates special risks
    not associated with unleveraged funds having similar investment
    objectives and policies. These include the possibility of
    greater loss and the likelihood of higher volatility of the net
    asset value of the Equity Trust and the asset coverage. Such
    volatility may increase the likelihood of the Equity
    Trust&#146;s having to sell investments in order to meet
    dividend payments on the preferred stock, or to redeem preferred
    stock, when it may be disadvantageous to do so. Also, if the
    Equity Trust is utilizing leverage, a decline in net asset value
    could affect the ability of the Equity Trust to make common
    stock distribution payments, and such a failure to make
    distributions could result in the Equity Trust&#146;s ceasing to
    qualify as a regulated investment company under the Code. See
    &#147;Investment Objective and Policies&nbsp;&#151;
    Leveraging&#148; and &#147;Risk Factors and Special
    Considerations&nbsp;&#151; Leverage Risk.&#148;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">5

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD valign="top">
    Market Loss</TD>
    <TD></TD>
    <TD valign="top">
    Shares of closed-end funds often trade at a market price that is
    less than the value of the net assets attributable to those
    shares. The possibility that shares of the Equity Trust will
    trade at a discount from net asset value or at premiums that are
    unsustainable over the long term are risks separate and distinct
    from the risk that the Equity Trust&#146;s net asset value will
    decrease. The risk of purchasing shares of a closed-end fund
    that might trade at a discount or unsustainable premium is more
    pronounced for investors who wish to sell their shares in a
    relatively short period of time because, for those investors,
    realization of a gain or loss on their investments is likely to
    be more dependent upon the existence of a premium or discount
    than upon portfolio performance. See &#147;Risk Factors and
    Special Considerations&nbsp;&#151; Market Value and Net Asset
    Value.&#148;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD valign="top">
    Trading Premium/ Discount</TD>
    <TD></TD>
    <TD valign="top">
    The Equity Trust&#146;s shares have traded in the market for
    periods of time above and below net asset value, and recently
    have traded generally at a premium. As of September&nbsp;16,
    2005, Common Shares traded at a premium of 7.33%. There is no
    guarantee that this premium is sustainable either during the
    term of the Offer or over the long term. The issuance of
    additional Common Shares pursuant to the Offer and the related
    over-subscription and secondary over-subscription privileges may
    reduce or eliminate any premium that shareholders may have
    otherwise received for their Common Shares.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD valign="top">
    Share Repurchases</TD>
    <TD></TD>
    <TD valign="top">
    Holders of Common Shares do not, and will not, have the right to
    require the Equity Trust to repurchase their stock. The Equity
    Trust, however, may repurchase its Common Shares from time to
    time as and when it deems such a repurchase advisable, subject
    to maintaining required asset coverage for each series of
    outstanding preferred stock. The Board of Directors has adopted
    a policy to authorize such repurchases when Common Shares are
    trading at a discount of 10% or more from net asset value. The
    policy does not limit the amount of Common Shares that can be
    repurchased. The percentage of the discount from net asset value
    at which share repurchases will be authorized may be changed at
    any time by the Board of Directors.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Anti-takeover Provisions</TD>
    <TD></TD>
    <TD valign="top">
    Certain provisions of the Equity Trust&#146;s Charter and
    By-Laws may be regarded as &#147;anti-takeover&#148; provisions.
    The affirmative vote of the holders of two-thirds of the Equity
    Trust&#146;s outstanding shares of each class (voting
    separately) is required to authorize the conversion of the
    Equity Trust from a closed-end to an open-end investment company
    or generally to authorize any of the following transactions:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    (1)&nbsp;the merger or consolidation of the Equity Trust with
    any entity;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    (2)&nbsp;the issuance of any securities of the Equity Trust for
    cash to any entity or person;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    (3)&nbsp;the sale, lease or exchange of all or any substantial
    part of the assets of the Equity Trust to any entity or person
    (except assets having an aggregate fair market value of less
    than $1,000,000);&nbsp;or</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">6

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    (4)&nbsp;the sale, lease or exchange to the Equity Trust, in
    exchange for its securities, of any assets of any entity or
    person (except assets having an aggregate fair market value of
    less than $1,000,000);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    if such corporation, person or entity is directly, or indirectly
    through affiliates, the beneficial owner of more than 5% of the
    outstanding shares of any class of capital stock of the Equity
    Trust. However, such vote would not be required when, under
    certain conditions, the Board of Directors approves the
    transaction. The overall effect of these provisions is to render
    more difficult the accomplishment of a merger with, or the
    assumption of control by, a principal shareholder, or the
    conversion of the Equity Trust to open-end status. These
    provisions may have the effect of depriving Equity Trust
    shareholders of an opportunity to sell their shares at a premium
    above the prevailing market price. See &#147;Certain Provisions
    of the Charter and By-laws.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Non-Diversified Status</TD>
    <TD></TD>
    <TD valign="top">
    As a non-diversified investment company under the 1940 Act, the
    Equity Trust may invest in the securities of individual issuers
    to a greater degree than a diversified investment company. As a
    result, the Equity Trust may be more vulnerable to events
    affecting a single issuer and, therefore, subject to greater
    volatility than a fund that is more broadly diversified.
    Accordingly, an investment in the Equity Trust may present
    greater risk to an investor than an investment in a diversified
    company. See &#147;Risk Factors and Special
    Considerations&nbsp;&#151; Non-Diversified Status.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Foreign Securities</TD>
    <TD></TD>
    <TD valign="top">
    The Equity Trust may invest up to 35% of its total assets in
    foreign securities. Among the foreign securities in which the
    Equity Trust may invest are those issued by companies located in
    developing countries, which are countries in the initial stages
    of their industrialization cycles. Investing in the equity and
    debt markets of developing countries involves exposure to
    economic structures that are generally less diverse and less
    mature, and to political systems that can be expected to have
    less stability, than those of developed countries. The markets
    of developing countries historically have been more volatile
    than the markets of the more mature economies of developed
    countries, but often have provided higher rates of return to
    investors. The Equity Trust may also invest in debt securities
    of foreign governments. See &#147;Investment Objectives and
    Policies&#148; and &#147;Risk Factors and Special
    Considerations&nbsp;&#151; Foreign Securities.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Lower Rated Securities</TD>
    <TD></TD>
    <TD valign="top">
    The Equity Trust may invest up to 10% of its total assets in
    fixed-income securities rated in the lower rating categories of
    recognized statistical rating agencies. These high yield
    securities, also sometimes referred to as &#147;junk
    bonds,&#148; generally pay a premium above the yields of
    U.S.&nbsp;government securities or debt securities of investment
    grade issuers because they are subject to greater risks than
    these securities. These risks, which reflect their speculative
    character, include the following: (1)&nbsp;greater volatility;
    (2)&nbsp;greater credit risk; (3)&nbsp;potentially greater
    sensitivity to general economic or industry conditions;
    (4)&nbsp;potential lack of attractive resale opportunities
    (illiquidity); and (5)&nbsp;additional expenses to seek</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">7

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<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

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    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    recovery from issuers who default. See &#147;Risk Factors and
    Special Considerations&nbsp;&#151; Lower Rated Securities.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Key Personnel Dependence</TD>
    <TD></TD>
    <TD valign="top">
    Gabelli Funds is dependent upon the expertise of Mr.&nbsp;Mario
    J. Gabelli in providing advisory services with respect to the
    Equity Trust&#146;s investments. If Gabelli Funds were to lose
    the services of Mr.&nbsp;Gabelli, its ability to service the
    Equity Trust could be adversely affected. There can be no
    assurance that a suitable replacement could be found for
    Mr.&nbsp;Gabelli in the event of his death, resignation,
    retirement or inability to act on behalf of Gabelli Funds.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Taxation</TD>
    <TD></TD>
    <TD valign="top">
    The Equity Trust intends to continue to be treated and qualify
    as a regulated investment company, for U.S.&nbsp;federal income
    tax purposes. Such qualification requires, among other things,
    compliance by the Equity Trust with certain distribution
    requirements. The Equity Trust is also, however, subject to
    certain statutory limitations on distributions on its Common
    Shares if the Equity Trust fails to satisfy the 1940 Act&#146;s
    asset coverage requirements, which could jeopardize the Equity
    Trust&#146;s ability to meet the regulated investment company
    distribution requirements. See &#147;Taxation&#148; for a more
    complete discussion.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">8

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<DIV align="left" style="font-size: 10pt;">
<A name='102'></A>
</DIV>

<!-- link1 "TABLE OF FEES AND EXPENSES" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>TABLE OF FEES AND EXPENSES</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="84%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Shareholder Transaction Expenses</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Voluntary Cash Purchase Plan Purchase Fees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    &nbsp;$0.75(1)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Automatic Dividend Reinvestment and Voluntary Cash Purchase Plan
    Sales Fees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    &nbsp;$2.50(1)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Annual Operating Expenses </B>(as a percentage of net assets
    attributable to Common Shares)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Management Fees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    &nbsp;1.36%(2)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other Expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    &nbsp;0.21%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Annual Operating Expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    &nbsp;1.57%(2)</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Shareholders participating in the Equity Trust&#146;s Automatic
    Dividend Reinvestment and Voluntary Cash Purchase Plan would pay
    $0.75 plus their pro rata share of brokerage commissions per
    transaction to purchase shares and $2.50 plus their pro rata
    share of brokerage commission per transaction to sell shares.
    See &#147;Automatic Dividend Reinvestment and Voluntary Cash
    Purchase Plan&#148; in the SAI.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Gabelli Funds has agreed to reduce the management fee on the
    incremental assets attributable to the cumulative preferred
    stock during the fiscal year if the total return of the net
    asset value of Common Shares, including distributions and
    advisory fee subject to reduction for that year, does not exceed
    the stated dividend rate or corresponding swap rate of each
    particular series of cumulative preferred stock. The Equity
    Trust&#146;s total return on the net asset value of Common
    Shares is monitored on a monthly basis to assess whether the
    total return on the net asset value of the Common Shares exceeds
    the stated dividend rate or corresponding swap rate of each
    particular series of cumulative preferred stock for the period.
    The test to confirm the accrual of the management fee on the
    assets attributable to each particular series of preferred stock
    is annual. The Equity Trust will accrue for the management fee
    on these assets during the fiscal year if it appears probable
    that the Equity Trust will incur the additional management fee
    on those assets. For the year ended December&nbsp;31, 2004, the
    Equity Trust&#146;s total return on the net asset value of the
    Common Shares exceeded the stated dividend rate or corresponding
    swap rate of all outstanding preferred stock, and thus
    management fees were accrued on those assets. For the six months
    ended June&nbsp;30, 2005, the Equity Trust&#146;s total return
    on the net asset value of the Common Shares did not exceed the
    stated dividend rates or corresponding swap rate of all
    outstanding preferred stock and thus, management fees with
    respect to the liquidation value of the preferred stock assets
    in the amount of $2,076,504 were not accrued.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Example</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following examples illustrate the projected dollar amount of
cumulative expenses that would be incurred over various periods
with respect to a hypothetical investment in the Equity Trust.
These amounts are based upon payment by the Equity Trust of
expenses at levels set forth in the above table.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You would pay the following expenses on a $1,000 investment,
assuming a 5% annual return (3):
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="26%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>1&nbsp;Year</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>3&nbsp;Years</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>5&nbsp;Years</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>10&nbsp;Years</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    $16</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    $50</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    $86</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    $187</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The foregoing example is to assist you in understanding the
various costs and expenses that an investor in the Equity Trust
will bear directly or indirectly. The assumed 5% annual return
is not a prediction of, and does not represent, the projected or
actual performance of the Equity Trust&#146;s Common Shares.
<B>ACTUAL EXPENSES AND ANNUAL RATES OF RETURN MAY BE MORE OR
LESS THAN THOSE ASSUMED FOR PURPOSES OF THE EXAMPLE.</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Amounts are exclusive of fees discussed in Note (1)&nbsp;above.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">9

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='103'></A>
</DIV>

<!-- link1 "FINANCIAL HIGHLIGHTS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>FINANCIAL HIGHLIGHTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The table below sets forth selected financial data for Common
Shares outstanding throughout the periods presented. The per
share operating performance and ratios for the fiscal years
ended December&nbsp;31, 2004, December&nbsp;31, 2003,
December&nbsp;31, 2002, December&nbsp;31, 2001, and
December&nbsp;31, 2000 have been audited by
PricewaterhouseCoopers LLP, the Equity Trust&#146;s independent
registered public accounting firm, as stated in their report
which is incorporated by reference into the SAI. The following
information should be read in conjunction with the Financial
Statements and Notes thereto, which are incorporated by
reference into the SAI.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SELECTED DATA FOR AN EQUITY TRUST SHARE OF COMMON STOCK</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10pt;">
<B>OUTSTANDING THROUGHOUT EACH PERIOD</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Six Months Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Year Ended December&nbsp;31,</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30, 2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(unaudited)(a)(b)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004(a)(b)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003(a)(b)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002(a)(b)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2001(a)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2000(a)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    OPERATING PERFORMANCE:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net asset value, beginning of period</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12.75</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net investment income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.05</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net realized and unrealized gain (loss) on investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.65</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.16</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.51</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total from investment operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.58</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.08</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.46</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net investment income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.04</TD>
    <TD align="left" valign="bottom" nowrap>)(h)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.00</TD>
    <TD align="left" valign="bottom" nowrap>)(c)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.00</TD>
    <TD align="left" valign="bottom" nowrap>)(c)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.01</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.01</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.00</TD>
    <TD align="left" valign="bottom" nowrap>)(c)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net realized gain on investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.04</TD>
    <TD align="left" valign="bottom" nowrap>)(h)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.16</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.11</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.09</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total distributions to preferred stock shareholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.08</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.17</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.12</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.09</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    NET INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO COMMON
    STOCK SHAREHOLDERS RESULTING FROM OPERATIONS</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.75</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.20</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.55</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net investment income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.05</TD>
    <TD align="left" valign="bottom" nowrap>)(h)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.01</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.01</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.05</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.06</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.04</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net realized gain on investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.04</TD>
    <TD align="left" valign="bottom" nowrap>)(h)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.79</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.68</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.90</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.02</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.27</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Return of capital</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.27</TD>
    <TD align="left" valign="bottom" nowrap>)(h)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.00</TD>
    <TD align="left" valign="bottom" nowrap>)(c)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.00</TD>
    <TD align="left" valign="bottom" nowrap>)(c)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total distributions to common stock shareholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.36</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.80</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.69</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.95</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.08</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.31</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    CAPITAL SHARE TRANSACTIONS:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase in net asset value from common stock share transactions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.00(c</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.00</TD>
    <TD align="left" valign="bottom" nowrap>)(c)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Decrease in net asset value from shares issued in rights offering</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.62</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase in net asset value from repurchase of preferred shares</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.00</TD>
    <TD align="left" valign="bottom" nowrap>)(c)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Offering costs for preferred shares charged to paid-in capital</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.00</TD>
    <TD align="left" valign="bottom" nowrap>)(c)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.02</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.01</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.05</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total capital share transactions</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.00(c</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.00</TD>
    <TD align="left" valign="bottom" nowrap>)(c)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.01</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.64</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">10

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Six Months Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Year Ended December&nbsp;31,</B></TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30, 2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(unaudited)(a)(b)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004(a)(b)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003(a)(b)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002(a)(b)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2001(a)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2000(a)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    NET ASSET VALUE ATTRIBUTABLE TO COMMON STOCK SHAREHOLDERS, END
    OF PERIOD</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10.89</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net Asset Value Total Return&#134;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.57</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19.81</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39.90</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21.00</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.68</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4.39</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Market Value, End of Period</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11.44</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Investment Return&#134;&#134;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.80</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.04</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28.58</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(28.36</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.32</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.91</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    RATIOS AND SUPPLEMENTAL DATA:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net assets including liquidation value of preferred shares, end
    of period (in 000&#146;s)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,606,699</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,638,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,514,525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,271,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,465,369</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,318,263</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net assets attributable to common shares, end of period (in
    000&#146;s)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,187,957</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,219,483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,094,525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>842,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,166,171</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,184,041</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ratio of net investment income to average net assets
    attributable to common shares</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.80</TD>
    <TD align="left" valign="bottom" nowrap>%(g)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.64</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.67</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.99</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.81</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.42</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ratio of operating expenses to average net assets attributable
    to common shares(b)(e)(*)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.20</TD>
    <TD align="left" valign="bottom" nowrap>%(g)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.57</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.62</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.19</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.12</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.14</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ratio of operating expenses to average net assets including
    liquidation value of preferred shares(b)(e)(*)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.89</TD>
    <TD align="left" valign="bottom" nowrap>%(g)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.14</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.14</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.87</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.95</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.03</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Portfolio turnover rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28.6</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19.2</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27.1</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23.9</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32.1</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    PREFERRED STOCK:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    7.25% CUMULATIVE PREFERRED STOCK</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liquidation value, end of period (in 000&#146;s)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>134,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>134,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>134,223</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total shares outstanding (in 000&#146;s)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,369</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liquidation preference per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25.00</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Average market value(d)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25.39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>22.62</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Asset coverage per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>74.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>122.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>245.54</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    7.20% CUMULATIVE PREFERRED STOCK</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liquidation value, end of period (in 000&#146;s)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>165,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>165,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>165,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>165,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>165,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total shares outstanding (in 000&#146;s)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liquidation preference per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Average market value(d)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>26.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>26.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>27.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>26.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Asset coverage per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>95.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>97.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>90.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>74.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>122.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">11

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8pt; ">

<TR style="font-size: 1pt;">
    <TD width="34%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Six Months Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Year Ended December&nbsp;31,</B></TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30, 2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(unaudited)(a)(b)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004(a)(b)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003(a)(b)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002(a)(b)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2001(a)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2000(a)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    AUCTION RATE SERIES&nbsp;C CUMULATIVE PREFERRED STOCK</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liquidation value, end of period (in 000&#146;s)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>130,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>130,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>130,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>130,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total shares outstanding (in 000&#146;s)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liquidation preference per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Average market value(d)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Asset coverage per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>95,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>97,806</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>90,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>74,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    5.875% CUMULATIVE PREFERRED STOCK</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liquidation value, end of period (in 000&#146;s)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>73,743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>73,743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>75,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total shares outstanding (in 000&#146;s)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liquidation preference per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Average market value(d)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>24.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>24.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Asset coverage per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>95.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>97.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>90.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    AUCTION RATE SERIES&nbsp;E CUMULATIVE PREFERRED STOCK</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liquidation value, end of period (in 000&#146;s)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total shares outstanding (in 000&#146;s)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Liquidation preference per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Average market value(d)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Asset coverage per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>95,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>97,806</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>90,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    ASSET COVERAGE(f)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>384</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>391</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>361</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>296</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>490</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>982</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    &nbsp;&#134;</TD>
    <TD></TD>
    <TD valign="top">
    Based on net asset value per share, adjusted for reinvestment of
    distributions at net asset value on the ex-dividend date,
    including the effect of shares issued pursuant to rights
    offering, assuming full subscription by shareholder. Total
    return for the period of less than one year is not annualized.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    &#134;&#134;</TD>
    <TD></TD>
    <TD valign="top">
    Based on market value per share, adjusted for reinvestment of
    distributions on the payment date, including the effect of
    shares issued pursuant to rights offering, assuming full
    subscription by shareholder. Total return for the period of less
    than one year is not annualized.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD valign="top">
    *</TD>
    <TD></TD>
    <TD valign="top">
    The Semi-Annual Report to Shareholders for the six months ended
    June&nbsp;30, 2005 included the ratios of operating expenses to
    average net assets attributable to common shares and to average
    net assets including liquidation value of preferred shares, both
    presented before fee reductions. This information contained a
    computational error and is not necessary for a fair presentation
    of the Equity Trust&#146;s financial highlights and has not been
    included in the financial highlights table above.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (a)</TD>
    <TD></TD>
    <TD valign="top">
    Per share amounts have been calculated using the monthly average
    shares outstanding method.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (b)</TD>
    <TD></TD>
    <TD valign="top">
    See Note&nbsp;2 to Financial Statements (Swap Agreements).</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (c)</TD>
    <TD></TD>
    <TD valign="top">
    Amount represents less than $0.005&nbsp;per share.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (d)</TD>
    <TD></TD>
    <TD valign="top">
    Based on weekly prices.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (e)</TD>
    <TD></TD>
    <TD valign="top">
    The ratios do not include a reduction of expenses for custodian
    fee credits on cash balances maintained with the custodian.
    Including such custodian fee credits for the year ended
    December&nbsp;31, 2001, the ratio of operating expenses to
    average net assets attributable to common shares net of fee
    reduction would be 1.11%, and the ratio of operating expenses to
    average total net assets including liquidation value of
    preferred shares net of fee reduction would be 0.94%. For the
    six months ended June&nbsp;30, 2005 and the years ended
    December&nbsp;31, 2004, 2003, 2002 and 2000, the effect of the
    custodian fee credits was minimal.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (f)</TD>
    <TD></TD>
    <TD valign="top">
    Asset coverage is calculated by combining all series of
    preferred stock.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (g)</TD>
    <TD></TD>
    <TD valign="top">
    Annualized.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (h)</TD>
    <TD></TD>
    <TD valign="top">
    Amounts are subject to change and recharacterization at fiscal
    year end.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">12

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<DIV align="left" style="font-size: 10pt;">
<A name='104'></A>
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>THE OFFER</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Terms of the Offer</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust is issuing to Record Date Shareholders Rights
to subscribe for additional Common Shares. Each Record Date
Shareholder is being issued one transferable Right for each
Common Share owned on the Record Date. The Right entitles the
holder to acquire at the Subscription Price one Common Share for
each seven Rights held rounded up to the nearest number of
Rights evenly divisible by seven. Fractional shares will not be
issued upon the exercise of the Rights. Accordingly, Common
Shares may be purchased only pursuant to the exercise of Rights
in integral multiples of seven. In the case of Common Shares
held of record by Cede&nbsp;&#38; Co. (&#147;Cede&#148;), as
nominee for the Depository Trust Company (&#147;DTC&#148;), or
any other depository or nominee, the number of Rights issued to
Cede or such other depository or nominee will be adjusted to
permit rounding up (to the nearest number of Rights evenly
divisible by seven) of the Rights to be received by beneficial
owners for whom it is the holder of record only if Cede or such
other depository or nominee provides to the Equity Trust on or
before the close of business on October&nbsp;21, 2005 a written
representation of the number of Rights required for such
rounding. Rights may be exercised at any time during the period
(the &#147;Subscription Period&#148;) which commences on
September&nbsp;21, 2005, and ends at 5:00&nbsp;p.m., New York
time, on October&nbsp;26, 2005, unless extended by the Equity
Trust to a date not later than November&nbsp;9, 2005,
5:00&nbsp;p.m., New York time. See &#147;Expiration of the
Offer.&#148; The Right to acquire one additional Common Share
for each seven Rights held during the Subscription Period at the
Subscription Price will be referred to in the remainder of this
Prospectus as the &#147;Primary Subscription.&#148;
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, any Record Date Shareholder who fully exercises all
Rights initially issued to him is entitled to subscribe for
Common Shares available for Primary Subscription (the
&#147;Primary Subscription Shares&#148;) that were not
subscribed for by other Rights holders on Primary Subscription.
In the event that the Equity Trust&#146;s per share net asset
value on the Expiration Date is equal to or less than the
Subscription Price, the Equity Trust, in its sole discretion,
would also be able to issue additional Common Shares in an
amount of up to 20% of the Primary Subscription Shares (the
&#147;Secondary Over-Subscription Shares&#148;) to satisfy
over-subscription requests in excess of the available Primary
Subscription Shares. The entitlement to subscribe for
un-subscribed Primary Subscription Shares and any Secondary
Over-Subscription Shares is available only to those Record Date
shareholders who fully exercise all Rights initially issued to
them and only on the basis of their Record Date holdings and
will be referred to in the remainder of this Prospectus as the
&#147;Over-Subscription Privilege.&#148; For purposes of
determining the maximum number of Common Shares a Record Date
Shareholder may acquire pursuant to the Offer, broker-dealers
whose Common Shares are held of record by Cede, nominee for DTC,
or by any other depository or nominee, will be deemed to be the
holders of the Rights that are issued to Cede or such other
depository or nominee on their behalf. Common Shares acquired
pursuant to the Over-Subscription Privilege are subject to
allotment, which is more fully discussed below under
&#147;Over-Subscription Privilege.&#148; <B>Rights acquired in
the secondary market may not participate in the
Over-Subscription Privilege.</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Officers of Gabelli Funds have advised the Equity Trust that the
Affiliated Parties, as Record Date Shareholders, have been
authorized to purchase Common Shares through the Primary
Subscription and the Over-Subscription Privilege to the extent
Common Shares become available to them in accordance with the
Primary Subscription and the allotment provisions of the
Over-Subscription Privilege. In addition, Mario J. Gabelli,
individually, or his affiliated entities, as a Record Date
Shareholder, may also purchase Common Shares through the Primary
Subscription and the Over-Subscription Privilege. Such
over-subscriptions by the Affiliated Parties and
Mr.&nbsp;Gabelli may disproportionately increase their already
existing ownership, resulting in a higher percentage ownership
of outstanding Common Shares if any Record Date Shareholder
fails to fully exercise its Rights. Any Common Shares acquired,
whether by Primary Subscription or the Over-Subscription
Privilege, by the Affiliated Parties or Mr.&nbsp;Gabelli, as
&#147;affiliates&#148; of the Equity Trust as that term is
defined under the Securities Act of 1933, as amended (the
&#147;Securities Act&#148;), may only be sold in accordance with
Rule&nbsp;144 under the Securities Act or another applicable
exemption or pursuant to an effective registration statement
under the Securities Act. In general, under Rule&nbsp;144, as
currently in effect, an &#147;affiliate&#148; of the Equity
Trust is entitled to sell, within any three-month period, a
number of Common Shares that does not
</DIV>

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<DIV align="left" style="font-size: 10pt;">
exceed the greater of 1% of the then-outstanding Common Shares
or the average weekly reported trading volume of the Common
Shares during the four calendar weeks preceding such sale. Sales
under Rule&nbsp;144 are also subject to certain restrictions on
the manner of sale, to notice requirements and to the
availability of current public information about the Equity
Trust. In addition, any profit resulting from the sale of Common
Shares so acquired, if the Common Shares are held for a period
of less than six months, will be returned to the Equity Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Rights will be evidenced by Subscription Certificates. The
number of Rights issued to each holder will be stated on the
Subscription Certificate delivered to the holder. The method by
which Rights may be exercised and shares paid for is set forth
below in &#147;Method of Exercise of Rights&#148; and
&#147;Payment for Shares.&#148; A Rights holder will have no
right to rescind a purchase after the Subscription Agent has
received payment. See &#147;Payment for Shares&#148; below.
Common Shares issued pursuant to an exercise of Rights will be
listed on the NYSE.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Rights are transferable until the Expiration Date and will
be admitted for trading on the NYSE. Assuming a market exists
for the Rights, the Rights may be purchased and sold through
usual brokerage channels and sold through the Subscription
Agent. Although no assurance can be given that a market for the
Rights will develop, trading in the Rights on the NYSE will
begin three Business Days before the Record Date and may be
conducted until the close of trading on the last NYSE trading
day prior to the Expiration Date due to normal settlement
procedures. Rights that are sold will not confer any right to
acquire any Common Shares in the Primary Subscription or the
secondary over-subscription (the &#147;Secondary
Over-Subscription&#148;), and any Record Date shareholder who
sells any Rights will not be eligible to participate in the
Secondary Over-Subscription. Trading of the Rights on the NYSE
will be conducted on a when-issued basis until and including the
date on which the Subscription Certificates are mailed to Record
Date Shareholders and thereafter will be conducted on a regular
way basis until and including the last NYSE trading day prior to
the Expiration Date. The method by which Rights may be
transferred is set forth below under &#147;Method of
Transferring Rights.&#148; The Common Shares will begin trading
ex-Rights two Business Days prior to the Record Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nominees who hold the Equity Trust&#146;s Common Shares for the
account of others, such as banks, broker-dealers, or
depositories for securities, should notify the respective
beneficial owners of such shares as soon as possible to
ascertain such beneficial owners&#146; intentions and to obtain
instructions with respect to the Rights. <B>Nominees should also
notify holders purchasing Rights in the secondary market that
such Rights may not participate in the Over-Subscription
Privilege. </B>If the beneficial owner so instructs, the nominee
will complete the Subscription Certificate and submit it to the
Subscription Agent with proper payment. In addition, beneficial
owners of the Common Shares or Rights held through such a
nominee should contact the nominee and request the nominee to
effect transactions in accordance with such beneficial
owner&#146;s instructions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Purpose of the Offer</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors of the Equity Trust has determined that
it would be in the best interests of the Equity Trust and the
shareholders to increase the assets of the Equity Trust
available for investment, thereby permitting the Equity Trust to
be in a better position to more fully take advantage of
investment opportunities that may arise. The Offer seeks to
reward existing shareholders by giving them the right to
purchase additional Common Shares at a price that may be below
market and/or net asset value, generally without incurring any
commission charge. The distribution to shareholders of
transferable Rights, which themselves may have intrinsic value,
will also afford non-subscribing shareholders the potential of
receiving a cash payment upon sale of such Rights, receipt of
which may be viewed as partial compensation for the possible
dilution of their interests in the Equity Trust.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gabelli Funds will benefit from the Offer because Gabelli
Funds&#146; fee is based on the average net assets of the Equity
Trust. See &#147;Management of the Equity Trust.&#148; It is not
possible to state precisely the amount of additional
compensation Gabelli Funds will receive as a result of the Offer
because the proceeds of the Offer will be invested in additional
portfolio securities, which will fluctuate in value. However,
assuming all Rights are exercised and that the Equity Trust
receives the maximum proceeds of the Offer, the annual
compensation
</DIV>

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<DIV align="left" style="font-size: 10pt;">
to be received by Gabelli Funds would be increased by
approximately $1,430,813, net of offering expenses. Two of the
Equity Trust&#146;s Directors, including Mario J. Gabelli, who
voted to authorize the Offer are &#147;interested persons&#148;
of Gabelli Funds within the meaning of the 1940 Act and may
benefit indirectly from the Offer because of their interest in
Gabelli Funds. See &#147;Management of the Equity Trust&#148; in
the SAI. In determining that the Offer was in the best interest
of shareholders, the Equity Trust&#146;s Board of Directors was
cognizant of this benefit as well as the possible participation
of the Affiliated Parties and Mr.&nbsp;Gabelli in the Offer as
shareholders on the same basis as other shareholders.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In October 1991, September 1992, July 1993, October 1995 and
January 2001, the Equity Trust issued transferable rights to
stockholders entitling the holders thereof to subscribe for an
aggregate of 7,882,562, 9,563,615, 11,654,962, 14,931,430 and
18,114,735, respectively, of the Common Shares at the rate of
one Common Share for each six rights held and entitling
stockholders to subscribe for any Common Shares not acquired by
exercise of primary subscription rights. The subscription price
in the January 2001 offering was $7.00&nbsp;per share,
representing a discount to the prevailing net asset value of the
Common Shares at the time of the offer of approximately 36.7%,
and a discount from market value of the Common Shares of
approximately 35.6%. The subscription price in each of the other
offerings was $8.00&nbsp;per share, representing a discount to
the prevailing net asset value of the Common Shares at the time
of the offer of approximately 27.1% in the 1991 offering, 22.7%
in the 1992 offering, 30.1% in the 1993 offering, and 21.4% in
the 1995 offering. The discount from net asset value was on
average&nbsp;25.3% in each offering. The subscription price of
$8.00&nbsp;per share represented a discount to the market value
of the Common Shares at the time of the offer of approximately
23.8% in the 1991 offering, 24.7% in the 1992 offering, 29.7% in
the 1993 offering, and 13.5% in the 1995 offering. Each of the
rights offerings was substantially oversubscribed, resulting in
the issuance of the maximum number of shares being offered. The
Equity Trust raised $63,060,496 in the 1991 offering,
$76,508,920 in the 1992 offering, $93,239,696 in the 1993
offering, $119,451,440 in the 1995 offering, and $126,803,145 in
the 2001 offering, while subscriptions remitted to the Equity
Trust totaled more than $136,000,000, $164,000,000,
$176,000,000, $200,000,000, and $225,000,000, respectively. As a
percentage of the shares outstanding on the record dates for the
offerings, more than 91% participated in the 1991 offering, more
than 92% participated in the 1992 offering, more than 93%
participated in the 1993 offering, more than 88% participated in
the 1995 offering, and more than 88% participated in the 2001
offering. The Equity Trust&#146;s net asset value per share
immediately following the 2001 rights offering was reduced by
approximately $0.62&nbsp;per share. In the calendar year
following the 2001 rights offering, the Equity Trust&#146;s
annualized expense ratio was 1.12% compared to 1.14% in 2000,
the year preceding the rights offering.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust may, in the future and at its discretion,
choose to make additional rights offerings from time to time for
a number of shares and on terms which may or may not be similar
to the Offer. Any such future rights offering will be made in
accordance with the 1940 Act. Under the laws of the State of
Maryland, the state in which the Equity Trust is incorporated,
the Board of Directors is authorized to approve rights offerings
without obtaining shareholder approval. The staff of the
Securities and Exchange Commission (&#147;SEC&#148;) has
interpreted the 1940 Act as not requiring shareholder approval
of a rights offering at a price below the then-current net asset
value so long as certain conditions are met, including a good
faith determination by the Equity Trust&#146;s Board of
Directors that such offering would result in a net benefit to
existing shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Over-Subscription Privilege</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If all of the Rights initially issued are not exercised, any
Primary Subscription Shares for which subscriptions have not
been received will be offered, by means of the Over-Subscription
Privilege, to Record Date Shareholders who have exercised all
the Rights initially issued to them and who wish to acquire
additional Common Shares. Record Date Shareholders who exercise
all the Rights initially issued to them will have the
opportunity to indicate on the Subscription Certificate how many
Common Shares they are willing to acquire pursuant to the
Over-Subscription Privilege. If sufficient Primary Subscription
Shares remain after the Primary Subscriptions have been
exercised, all over-subscription requests will be honored in
full. If sufficient Primary Subscription Shares are not
available to honor all subscription requests, the available
Common Shares will be allocated among those Record Date
Shareholders who over-subscribe based on the
</DIV>

<P align="center" style="font-size: 10pt;">15

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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
number of Rights originally issued to them by the Equity Trust.
<B>Rights acquired in the secondary market may not participate
in the over-subscription privilege.</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the Board of Directors of the Equity Trust has
established a Pricing Committee which is authorized, in the
event that the Equity Trust&#146;s per share net asset value on
the Expiration Date is at or below the Subscription Price, to
direct the Equity Trust to issue Secondary Over-Subscription
Shares to satisfy over-subscription requests in excess of the
available Primary Subscription Shares in an amount of up to 20%
of the Primary Subscription Shares. Should the Pricing Committee
determine to issue some or all of these Secondary
Over-Subscription Shares, they will be allocated only among
Record Date Shareholders that submitted over-subscription
requests. Secondary Over-Subscription Shares will be allocated
pro rata among those fully exercising Record Date Shareholders
who over-subscribe based on the number of Rights originally
issued to them by the Equity Trust. Any Secondary
Over-Subscription Shares issued by the Equity Trust,
collectively with any Primary Subscription Shares not subscribed
for through the Primary Subscription, will be referred to in
this Prospectus as the &#147;Excess Shares.&#148; <B>Rights
acquired in the secondary market may not participate in the
over-subscription privilege.</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The percentage of Excess Shares each over-subscribing Record
Date Shareholder may acquire will be rounded down to result in
delivery of whole Common Shares; provided, however, that if a
pro rata allocation results in any holder being allocated a
greater number of Excess Shares than the holder subscribed for
pursuant to the exercise of such holder&#146;s Over-Subscription
Privilege, then such holder will be allocated only such number
of Excess Shares as such holder subscribed for and the remaining
Excess Shares will be allocated among all other holders then
entitled to receive Excess Shares whose over-subscription
requests have not been fully honored. The allocation process may
be iterative in order to assure that the total number of Excess
Shares is distributed in accordance with the method described
above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The formula to be used in allocating the Excess Shares is as
follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 3pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholder&#146;s
    Record Date Position <BR>

    <DIV style="width: 41%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="47%"></TD>
    <TD width="53%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    X&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess Shares Remaining</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Total Record Date Position of All Over-Subscribers</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust will not offer or sell any Common Shares which
are not subscribed for under the Primary Subscription or the
Over-Subscription Privilege.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>The Subscription Price</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Subscription Price for the Common Shares to be issued
pursuant to the Rights will be $7.00.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust announced the Offer on August&nbsp;10, 2005.
The net asset value per Common Share at the close of business on
August&nbsp;9, 2005 (the last date prior to the Equity
Trust&#146;s announcement of the Offer), was $8.79. The last
reported sale price of a Common Share on the NYSE on that date
was $9.06, representing a 3.07% premium in relation to the
then-current net asset value per share and a premium in relation
to the Subscription Price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Sales by Subscription Agent</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of Rights who are unable or do not wish to exercise any
or all of their Rights may instruct the Subscription Agent to
sell any unexercised Rights. The Subscription Certificates
representing the Rights to be sold by the Subscription Agent
must be received on or before October&nbsp;25, 2005. Upon the
timely receipt of the appropriate instructions to sell Rights,
the Subscription Agent will use its best efforts to complete the
sale and will remit the proceeds of sale, net of commissions, to
the holders. If the Rights can be sold, sales of the Rights will
be deemed to have been effected at the weighted average price
received by the Subscription Agent on the day such Rights are
sold. The selling Rights holder will pay all brokerage
commissions incurred by the Subscription Agent. These sales may
be effected by the Subscription Agent through Gabelli&nbsp;&#38;
Company, Inc., a registered broker-dealer and an affiliate of
Gabelli Funds, at a commission of up to $0.02&nbsp;per Right,
provided, that if the Subscription Agent is able to negotiate a
lower brokerage commission with an independent broker, the
Subscription Agent will execute these sales through that
independent broker. Gabelli&nbsp;&#38; Company, Inc. may also
act on behalf of its clients to purchase or sell Rights in the
open market
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt;">16

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<DIV align="left" style="font-size: 10pt;">
and be compensated for its services. The Subscription Agent will
automatically attempt to sell any unexercised Rights that remain
unclaimed as a result of Subscription Certificates being
returned by the postal authorities as undeliverable as of the
fourth Business Day prior to the Expiration Date. These sales
will be made net of commissions on behalf of the nonclaiming
holders of Rights. Proceeds from those sales will be held by
Computershare Shareholder Services, Inc., in its capacity as the
Equity Trust&#146;s transfer agent, for the account of the
nonclaiming holder of Rights until the proceeds are either
claimed or escheated. There can be no assurance that the
Subscription Agent will be able to complete the sale of any of
these Rights and neither the Equity Trust nor the Subscription
Agent has guaranteed any minimum sales price for the Rights. All
of these Rights will be sold at the market price, if any, on the
NYSE or through an unaffiliated market maker if no market exists
on the NYSE.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Method of Transferring Rights</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Rights evidenced by a single Subscription Certificate may be
transferred in whole by endorsing the Subscription Certificate
for transfer in accordance with the accompanying instructions. A
portion of the Rights evidenced by a single Subscription
Certificate (but not fractional Rights) may be transferred by
delivering to the Subscription Agent a Subscription Certificate
properly endorsed for transfer, with instructions to register
the portion of the Rights evidenced thereby in the name of the
transferee (and to issue a new Subscription Certificate to the
transferee evidencing the transferred Rights). In this event, a
new Subscription Certificate evidencing the balance of the
Rights will be issued to the Rights holder or, if the Rights
holder so instructs, to an additional transferee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders wishing to transfer all or a portion of their Rights
(but not fractional Rights) should allow at least three Business
Days prior to the Expiration Date for (i)&nbsp;the transfer
instructions to be received and processed by the Subscription
Agent, (ii)&nbsp;a new Subscription Certificate to be issued and
transmitted to the transferee or transferees with respect to
transferred Rights, and to the transferor with respect to
retained rights, if any, and (iii)&nbsp;the Rights evidenced by
the new Subscription Certificates to be exercised or sold by the
recipients thereof. Neither the Equity Trust nor the
Subscription Agent shall have any liability to a transferee or
transferor of Rights if Subscription Certificates are not
received in time for exercise or sale prior to the Expiration
Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except for the fees charged by the Subscription Agent (which
will be paid by the Equity Trust as described below), all
commissions, fees and other expenses (including brokerage
commissions and transfer taxes) incurred in connection with the
purchase, sale or exercise of Rights will be for the account of
the transferor of the Rights, and none of these commissions,
fees or expenses will be paid by the Equity Trust or the
Subscription Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust anticipates that the Rights will be eligible
for transfer through, and that the exercise of the Primary
Subscription and Over-Subscription Privilege may be effected
through, the facilities of DTC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Expiration of the Offer</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Offer will expire at 5:00&nbsp;p.m., New York time, on
October&nbsp;26, 2005, unless extended by the Equity Trust to a
date not later than November&nbsp;9, 2005, 5:00&nbsp;p.m., New
York time (the &#147;Expiration Date&#148;). Rights will expire
on the Expiration Date and thereafter may not be exercised.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Subscription Agent</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Subscription Agent is Computershare Shareholder Services,
Inc., Attn: Corporate Actions, P.O. Box&nbsp;859208, Braintree,
MA 02185-9208. The Subscription Agent will receive from the
Equity Trust an amount estimated to be $150,000 comprised of the
fee for its services and the reimbursement for certain expenses
related to the Offer. <B>Inquiries by all holders of rights
should be directed to Corporate Actions, P.O. Box 859208,
Braintree, MA 02185-9208 (telephone (800)&nbsp;336-6983 or
(781)&nbsp;575-3100). Holders may also consult their brokers or
nominees.</B>
</DIV>

<P align="center" style="font-size: 10pt;">17

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Method of Exercise of Rights</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Rights may be exercised by filling in and signing the reverse
side of the Subscription Certificate and mailing it in the
envelope provided, or otherwise delivering the completed and
signed Subscription Certificate to the Subscription Agent,
together with payment for the Common Shares as described below
under &#147;Payment for Shares.&#148; Rights may also be
exercised through a Rights holder&#146;s broker, who may charge
the Rights holder a servicing fee in connection with such
exercise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Completed Subscription Certificates must be received by the
Subscription Agent prior to 5:00&nbsp;p.m., New York time, on
the Expiration Date (unless payment is effected by means of a
notice of guaranteed delivery as described below under
&#147;Payment for Shares&#148;). The Subscription Certificate
and payment should be delivered to Computershare Shareholder
Services, Inc. at the following address:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="52%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    If By Mail:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="bottom">Computershare<BR>Attn: Corporate Actions<BR>P.O. Box 859208<BR>Braintree, MA 02185-9208</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    If By Hand:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="bottom">Computershare<BR>Floor&nbsp;11<BR>17 Battery Park Place<BR>New York, NY 10004</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    If By Overnight Courier:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="bottom">Computershare<BR>Attn: Corporate Actions<BR>161 Bay State Drive<BR>Braintree, MA 02184</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Payment for Shares</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of Rights who acquire Common Shares on Primary
Subscription or pursuant to the Over-Subscription Privilege may
choose between the following methods of payment:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;A subscription will be accepted by the Subscription
    Agent if, prior to 5:00&nbsp;p.m., New York time, on the
    Expiration Date, the Subscription Agent has received a notice of
    guaranteed delivery by telegram or otherwise from a bank, a
    trust company, or a NYSE member, guaranteeing delivery of
    (i)&nbsp;payment of the full Subscription Price for the Common
    Shares subscribed for on the Primary Subscription and any
    additional Common Shares subscribed for pursuant to the
    Over-Subscription Privilege and (ii)&nbsp;a properly completed
    and executed Subscription Certificate, which:
    (1)&nbsp;designates your primary subscription and secondary
    over-subscription amounts, (2)&nbsp;provides a check (or amount
    in notice of guaranteed delivery), (3)&nbsp;indicates whether
    you participate in the Equity Trust&#146;s automatic dividend
    reinvestment and cash purchase plan and wish to receive a
    certificate, and (4)&nbsp;indicates whether you want to sell or
    transfer your rights. The Subscription Agent will not honor a
    notice of guaranteed delivery if a properly completed and
    executed Subscription Certificate and full payment is not
    received by the Subscription Agent by the close of business on
    the third Business Day after the Expiration Date. The notice of
    guaranteed delivery may be delivered to the Subscription Agent
    in the same manner as Subscription Certificates at the addresses
    set forth above, or may be transmitted to the Subscription Agent
    by facsimile transmission to fax number (781)&nbsp;380-3388;
    telephone number to confirm receipt (781)&nbsp;843-1833,
    extension 200.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;Alternatively, a holder of Rights can send the
    Subscription Certificate together with payment in the form of a
    check for the Common Shares subscribed for on Primary
    Subscription and additional Common Shares subscribed for
    pursuant to the Over-Subscription Privilege to the Subscription
    Agent based on the Subscription Price of $7.00&nbsp;per Common
    Share. To be accepted, the payment, together with the executed
    Subscription Certificate, must be received by the Subscription
    Agent at the addresses noted above prior to 5:00&nbsp;p.m., New
    York time, on the Expiration Date. The Subscription Agent will
    deposit all stock purchase checks received by it prior to the
    final due date into a segregated interest-bearing account
    pending proration and distribution of Common Shares. The
    Subscription Agent will not accept cash as a means of payment
    for Common Shares. <B>Except as otherwise set forth below, a
    payment pursuant to this</B></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<P align="center" style="font-size: 10pt;">18

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<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B>method must be in United States dollars by money order or
    check drawn on a bank located in the continental United States,
    must be payable to The Gabelli Equity Trust Inc., and must
    accompany an executed subscription certificate to be accepted.
    </B>If the aggregate Subscription Price paid by a Record Date
    Shareholder is insufficient to purchase the number of Common
    Shares that the holder indicates are being subscribed for, or if
    a Record Date Shareholder does not specify the number of Common
    Shares to be purchased, then the Record Date Shareholder will be
    deemed to have exercised first, the Primary Subscription Rights
    (if not already fully exercised) and second, the
    Over-Subscription Privilege to the full extent of the payment
    tendered. If the aggregate Subscription Price paid by such
    holder is greater than the Common Shares he has indicated an
    intention to subscribe, then the Rights holder will be deemed to
    have exercised first, the Primary Subscription Rights (if not
    already fully subscribed) and second, the Over-Subscription
    Privilege to the full extent of the excess payment tendered.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any payment required from a holder of Rights must be received by
the Subscription Agent by the Expiration Date, or if the Rights
holder has elected to make payment by means of a notice of
guaranteed delivery, on the third Business Day after the
Expiration Date. Whichever of the two methods of payment
described above is used, issuance and delivery of certificates
for the Common Shares purchased are subject to collection of
checks and actual payment pursuant to any notice of guaranteed
delivery.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Within ten Business Days following the Expiration Date (the
&#147;Confirmation Date&#148;), a confirmation will be sent by
the Subscription Agent to each holder of Rights (or, if the
Common Shares are held by Cede or any other depository or
nominee, to Cede or such other depository or nominee), showing
(i)&nbsp;the number of Common Shares acquired pursuant to the
Primary Subscription, (ii)&nbsp;the number of Excess Shares, if
any, acquired pursuant to the Over-Subscription Privilege,
(iii)&nbsp;the per share and total purchase price for the Common
Shares and (iv)&nbsp;any excess to be refunded by the Equity
Trust to such holder as a result of payment for Common Shares
pursuant to the Over-Subscription Privilege which the holder is
not acquiring. Any payment required from a holder of Rights must
be received by the Subscription Agent on the Expiration Date, or
if the Rights holder has elected to make payment by means of a
notice of guaranteed delivery, on the third Business Day after
the Expiration Date. Any excess payment to be refunded by the
Equity Trust to a holder of Rights, or to be paid to a holder of
Rights as a result of sales of Rights on his behalf by the
Subscription Agent or exercises by Record Date Shareholders of
their Over-Subscription Privileges, and all interest accrued on
the holder&#146;s excess payment will be mailed by the
Subscription Agent to the holder within fifteen Business Days
after the Expiration Date. Interest on the excess payment will
accrue through the date that is one Business Day prior to the
mail date of the reimbursement check. All payments by a holder
of Rights must be in United States dollars by money order or
check drawn on a bank located in the continental United States
of America and payable to The Gabelli Equity Trust Inc., except
that holders of Rights who are residents of Canada may make
payment in U.S.&nbsp;dollars by money order or check drawn on a
bank located in Canada.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A Rights holder will have no right to rescind a purchase after
the Subscription Agent has received payment either by means of a
notice of guaranteed delivery, a check or money order.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a holder of Rights who acquires Common Shares pursuant to the
Primary Subscription or the Over-Subscription Privilege does not
make payment of any amounts due, the Equity Trust reserves the
right to take any or all of the following actions: (i)&nbsp;find
other purchasers for such subscribed-for and unpaid-for Common
Shares; (ii)&nbsp;apply any payment actually received by it
toward the purchase of the greatest whole number of Common
Shares which could be acquired by such holder upon exercise of
the Primary Subscription or the Over-Subscription Privilege;
(iii)&nbsp;sell all or a portion of the Common Shares purchased
by the holder, in the open market, and apply the proceeds to the
amounts owed; and (iv)&nbsp;exercise any and all other rights or
remedies to which it may be entitled, including, without
limitation, the right to set off against payments actually
received by it with respect to such subscribed Common Shares and
to enforce the relevant guaranty of payment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nominees who hold Common Shares for the account of others, such
as brokers, dealers or depositories for securities, should
notify the respective beneficial owners of the Common Shares as
soon as possible to ascertain such beneficial owners&#146;
intentions and to obtain instructions with respect to the
Rights. If the beneficial owner so instructs, the record holder
of the Rights should complete Subscription Certificates and
</DIV>

<P align="center" style="font-size: 10pt;">19

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<DIV align="left" style="font-size: 10pt;">
submit them to the Subscription Agent with the proper payment.
In addition, beneficial owners of Common Shares or Rights held
through such a nominee should contact the nominee and request
the nominee to effect transactions in accordance with the
beneficial owner&#146;s instructions. <B>Banks, broker-dealers
and trust companies that hold Common Shares for the accounts of
others are advised to notify those persons that purchase Rights
in the secondary market that such Rights may not participate in
the over-subscription privilege.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
THE INSTRUCTIONS ACCOMPANYING THE SUBSCRIPTION CERTIFICATES
SHOULD BE READ CAREFULLY AND FOLLOWED IN DETAIL. DO NOT SEND
SUBSCRIPTION CERTIFICATES TO THE EQUITY TRUST.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
THE METHOD OF DELIVERY OF SUBSCRIPTION CERTIFICATES AND PAYMENT
OF THE SUBSCRIPTION PRICE TO THE SUBSCRIPTION AGENT WILL BE AT
THE ELECTION AND RISK OF THE RIGHTS HOLDERS, BUT, IF SENT BY
MAIL, IT IS RECOMMENDED THAT THE CERTIFICATES AND PAYMENTS BE
SENT BY REGISTERED MAIL, PROPERLY INSURED, WITH RETURN RECEIPT
REQUESTED, AND THAT A SUFFICIENT NUMBER OF DAYS BE ALLOWED TO
ENSURE DELIVERY TO THE SUBSCRIPTION AGENT AND CLEARANCE OF
PAYMENT PRIOR TO 5:00&nbsp;P.M., NEW YORK TIME, ON THE
EXPIRATION DATE. BECAUSE UNCERTIFIED PERSONAL CHECKS MAY TAKE AT
LEAST FIVE BUSINESS DAYS OR MORE TO CLEAR, YOU ARE STRONGLY
URGED TO PAY, OR ARRANGE FOR PAYMENT, BY MEANS OF A CERTIFIED OR
CASHIER&#146;S CHECK OR MONEY ORDER.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All questions concerning the timeliness, validity, form and
eligibility of any exercise of Rights will be determined by the
Equity Trust, whose determinations will be final and binding.
The Equity Trust in its sole discretion may waive any defect or
irregularity, or permit a defect or irregularity to be corrected
within such time as it may determine, or reject the purported
exercise of any Right. Subscriptions will not be deemed to have
been received or accepted until all irregularities have been
waived or cured within such time as the Equity Trust determines
in its sole discretion. Neither the Equity Trust nor the
Subscription Agent will be under any duty to give notification
of any defect or irregularity in connection with the submission
of Subscription Certificates or incur any liability for failure
to give such notification.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Delivery of Stock Certificates</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certificates representing Common Shares purchased pursuant to
the Primary Subscription will be delivered to subscribers as
soon as practicable after the corresponding Rights have been
validly exercised and full payment for the Common Shares has
been received and cleared. Certificates representing Common
Shares purchased pursuant to the Over-Subscription Privilege
will be delivered to subscribers as soon as practicable after
the Expiration Date and after all allocations have been
effected. Participants in the Equity Trust&#146;s Automatic
Dividend Reinvestment and Voluntary Cash Purchase Plan (the
&#147;Plan&#148;) will be issued Rights for these Common Shares
held in their accounts in the Plan. Participants wishing to
exercise these Rights must exercise the Rights in accordance
with the procedures set forth above in &#147;Method of Exercise
of Rights&#148; and &#147;Payment for Shares.&#148; Rights will
not be exercised automatically by the Plan. Plan participants
exercising their Rights will receive their Primary and
Over-Subscription Shares via an uncertificated credit to their
existing account. To request a stock certificate, participants
in the Plan should check the appropriate box on the Subscription
Certificate. These Common Shares will remain subject to the same
investment option as previously selected by the Plan participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Foreign Restrictions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subscription Certificates will only be mailed to Record Date
Shareholders whose addresses are within the United States and
Canada (other than an APO or FPO address). Record Date
Shareholders whose addresses are outside the United States and
Canada or who have an APO or FPO address and who wish to
subscribe to the Offer either in part or in full should contact
the Subscription Agent, Computershare Shareholder Services,
Inc., by written instruction or recorded telephone conversation
no later than three Business Days prior to the Expiration Date.
The Equity Trust will determine whether the offering may be made
to any such shareholder. If the Subscription Agent has received
no instruction by the third Business Day prior to the Expiration
Date or the Equity Trust has determined that the Offering may
not be made to a particular shareholder, the
</DIV>

<P align="center" style="font-size: 10pt;">20

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<DIV align="left" style="font-size: 10pt;">
Subscription Agent will attempt to sell all of such
shareholder&#146;s Rights and remit the net proceeds, if any, to
such shareholder. If the Rights can be sold, sales of these
Rights will be deemed to have been effected at the weighted
average price received by the Subscription Agent on the day the
Rights are sold, less any applicable brokerage commissions,
taxes and other expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Federal Income Tax Consequences to Shareholders</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following is a general summary of the significant federal
income tax consequences of the receipt of Rights by a Record
Date Shareholder and a subsequent lapse, exercise or sale of
such Rights. The discussion also addresses the significant
federal income tax consequences to a holder that purchases
Rights in a secondary-market transaction (e.g., on the NYSE).
The discussion is based upon applicable provisions of the
Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;), the Treasury Regulations promulgated
thereunder and other authorities currently in effect, and does
not address state or local tax consequences. Moreover, the
discussion assumes that the fair market value of the Rights
distributed to all of the Record Date Shareholders will, upon
the date of such distribution, be less than 15% of the total
fair market value of all of the Common Shares on such date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Record Date Shareholders</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For federal income tax purposes, neither the receipt nor the
exercise of Rights by a Record Date Shareholder will result in
taxable income to such shareholder, and no taxable loss will be
realized by a Record Date Shareholder who allows his Rights to
expire without exercise. A taxable gain or loss recognized by a
Record Date Shareholder upon a sale of a Right will be a capital
gain or loss (assuming the Right is held as a capital asset at
the time of sale) and will be a short-term capital gain or loss.
A Record Date Shareholder&#146;s holding period for a Common
Share acquired upon exercise of a Right (a &#147;New
Share&#148;) begins with the date of exercise of the Right. A
taxable gain or loss recognized by a Record Date Shareholder
upon a sale of a New Share will be a capital gain or loss
(assuming the New Share is held as a capital asset at the time
of sale) and will be a long-term capital gain or loss if the New
Share has been held at the time of sale for more than one year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unless a Record Date Shareholder makes the election described in
the following paragraph, his basis for determining gain or loss
upon the sale of a Right will be zero and his basis for
determining gain or loss upon the sale of a New Share will be
equal to the sum of the Subscription Price for the New Share and
any servicing fee charged to the shareholder by his broker, bank
or trust company. Moreover, unless a Record Date Shareholder
makes the election described in the following paragraph, the
receipt of a Right and the lapse, sale or exercise thereof will
have no effect on the federal income tax basis of those Common
Shares that such shareholder originally owned (&#147;Original
Shares&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A Record Date Shareholder may make an election to allocate the
federal income tax basis of his Original Shares between such
Original Shares and all of the Rights that he receives pursuant
to the Offer in proportion to their respective fair market
values as of the date of distribution of the Rights. Thus, if
such an election is made and the Record Date Shareholder sells
or exercises his Rights, the shareholder&#146;s basis in his
Original Shares will be reduced by an amount equal to the basis
allocated to the Rights. This election is irrevocable and must
be made in a statement attached to the shareholder&#146;s
federal income tax return for the taxable year in which the
Rights are distributed. If an electing Record Date Shareholder
exercises his Rights, the basis of his New Shares will be equal
to the sum of the Subscription Price for such New Shares (as
increased by any servicing fee charged to the shareholder by his
broker, bank or trust company) plus the basis allocated to such
Rights as described above. Accordingly, Record Date Shareholders
should consider the advisability of making the above-described
election if they intend to exercise their Rights. However, if an
electing Record Date Shareholder does not sell or exercise his
Rights, no taxable loss will be realized as a result of the
lapse of such Rights and no portion of the shareholder&#146;s
basis in his Original Shares will be allocated to the
unexercised Rights.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Purchasers of Rights</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For federal income tax purposes, the exercise of Rights by a
purchaser who acquires such Rights on the NYSE or in another
secondary-market transaction will not result in taxable income
to such purchaser, and a taxable loss will be realized by a
purchaser who allows his Rights to expire without exercise. Such
taxable loss will be a short-term capital loss if the purchaser
holds the Rights as capital assets at the time of their
expiration. A taxable gain or loss recognized by a purchaser
upon a sale of a Right will be a capital gain or loss (assuming
the Right is held as a capital asset at the time of sale) and
will be a short-term capital gain or loss. A purchaser&#146;s
basis for determining gain or loss upon the sale of a New Share
acquired through the exercise of a Right will be equal to the
sum of the Subscription Price for the New Share plus the
purchase price of the Right or Rights that were exercised in
order to acquire such New Share (with such Subscription Price
and purchase price each being increased by any applicable
servicing fees charged to the purchaser by his broker, bank or
trust company). A purchaser&#146;s holding period for a New
Share acquired upon exercise of a Right begins with the date of
exercise of the Right. A taxable gain or loss recognized by a
purchaser upon a sale of a New Share will be a capital gain or
loss (assuming the New Share is held as a capital asset at the
time of sale) and will be a long-term capital gain or loss if
the New Share has been held at the time of sale for more than
one year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Employee Plan Considerations</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Rights holders that are employee benefit plans subject to the
Employee Retirement Income Security Act of 1974, as amended
(&#147;ERISA&#148;), including corporate savings and 401(k)
plans, Keogh Plans of self-employed individuals and Individual
Retirement Accounts (&#147;IRA&#148;) (each a &#147;Benefit
Plan&#148; and collectively, &#147;Benefit Plans&#148;), should
be aware that additional contributions of cash in order to
exercise Rights may be treated as Benefit Plan contributions
and, when taken together with contributions previously made, may
subject a Benefit Plan to excise taxes for excess or
nondeductible contributions. In the case of Benefit Plans
qualified under Section&nbsp;401(a) of the Code, additional cash
contributions could cause the maximum contribution limitations
of Section&nbsp;415 of the Code or other qualification rules to
be violated. Benefit Plans contemplating making additional cash
contributions to exercise Rights should consult with their
counsel prior to making such contributions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Benefit Plans and other tax-exempt entities, including
governmental plans, should also be aware that if they borrow in
order to finance their exercise of Rights, they may become
subject to the tax on unrelated business taxable income
(&#147;UBTI&#148;) under Section&nbsp;511 of the Code. If any
portion of an IRA is used as security for a loan, the portion so
used is also treated as distributed to the IRA depositor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ERISA contains prudence and diversification requirements and
ERISA and the Code contain prohibited transaction rules that may
impact the exercise of Rights. Among the prohibited transaction
exemptions issued by the Department of Labor that may exempt a
Benefit Plan&#146;s exercise of Rights are Prohibited
Transaction Exemption&nbsp;84-24 (governing purchases of shares
in investment companies) and Prohibited Transaction
Exemption&nbsp;75-1 (covering sales of securities).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Due to the complexity of these rules and the penalties for
noncompliance, Benefit Plans should consult with their counsel
regarding the consequences of their exercise of Rights under
ERISA and the Code.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='105'></A>
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>USE OF PROCEEDS</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The net proceeds of the Offer, assuming all Primary Subscription
Shares offered hereby are sold, are estimated to be
approximately $143,681,307, before deducting expenses payable by
the Equity Trust estimated at approximately $600,000. The net
proceeds of the Offer, assuming all Secondary Over-Subscription
Shares are sold in addition to all Primary Subscription Shares,
are estimated to be approximately $172,417,567, before deducting
expenses payable by the Equity Trust estimated to be $600,000.
Gabelli Funds anticipates that investment of the proceeds will
be made in accordance with the Equity Trust&#146;s investment
objectives and policies as appropriate investment opportunities
are identified, which is expected to be substantially completed
in approximately three months; however, the identification of
appropriate investment opportunities pursuant to Gabelli
Funds&#146; investment style or changes in market conditions may
cause the investment period to extend as long as six months.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt;">22

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<DIV align="left" style="font-size: 10pt;">
<A name='106'></A>
</DIV>

<!-- link1 "INVESTMENT OBJECTIVES AND POLICIES" -->

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INVESTMENT OBJECTIVES AND POLICIES</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust is a non-diversified closed-end management
investment company organized under the laws of the State of
Maryland on May&nbsp;20, 1986.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust&#146;s primary investment objective is to
achieve long-term growth of capital by investing primarily in a
portfolio of equity securities consisting of common stock,
preferred stock, convertible or exchangeable securities and
warrants and rights to purchase such securities selected by
Gabelli Funds. Income is a secondary investment objective. The
investment objectives of long-term growth of capital and income
are fundamental policies of the Equity Trust. These fundamental
policies and the investment limitations described in the SAI
under the caption &#147;Investment Restrictions&#148; cannot be
changed without the approval of the holders of a majority of the
Equity Trust&#146;s outstanding shares of preferred stock voting
as a separate class and the approval of the holders of a
majority of the Equity Trust&#146;s outstanding voting
securities. Such majority votes require, in each case, the
lesser of (i)&nbsp;67% of the Equity Trust&#146;s applicable
shares represented at a meeting at which more than 50% of the
Equity Trust&#146;s applicable shares outstanding are
represented, whether in person or by proxy, or (ii)&nbsp;more
than 50% of the outstanding shares of the applicable class.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under normal market conditions, the Equity Trust will invest at
least 80% of the value of its total assets in equity securities
(the &#147;80% Policy&#148;). The 80% Policy may be changed
without shareholder approval. The Equity Trust will provide
shareholders with notice at least 60 days prior to the
implementation of any change in the 80% Policy.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gabelli Funds selects investments on the basis of fundamental
value and, accordingly, the Equity Trust typically invests in
the securities of companies that are believed by Gabelli Funds
to be priced lower than justified in relation to their
underlying assets. Other important factors in the selection of
investments include favorable price/earnings and debt/equity
ratios and strong management.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust seeks to achieve its secondary investment
objective of income, in part, by investing up to 10% of its
total assets in a portfolio consisting primarily of
high-yielding, fixed-income securities, such as corporate bonds,
debentures, notes, convertible securities, preferred stocks and
domestic and foreign government obligations. Debt securities
purchased by the Equity Trust may be rated in the lower rating
categories of recognized statistical rating agencies, such as
securities rated &#147;CCC&#148; or lower by the
Standard&nbsp;&#38; Poor&#146;s Division of The McGraw-Hill
Companies, Inc. (&#147;S&#38;P&#148;) or &#147;Caa&#148; or
lower by Moody&#146;s Investors Service Inc.
(&#147;Moody&#146;s&#148;), or may be nonrated securities of
comparable quality. These debt securities are predominantly
speculative and involve major risk exposure to adverse
conditions and are often referred to in the financial press as
&#147;junk bonds.&#148;
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No assurance can be given that the Equity Trust&#146;s
investment objectives will be achieved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Investment Methodology of the Equity Trust</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In selecting securities for the Equity Trust, Gabelli Funds
normally will consider the following factors, among others:
</DIV>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Gabelli Funds&#146; own evaluations of the private market value,
    cash flow, earnings per share and other fundamental aspects of
    the underlying assets and business of the company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the potential for capital appreciation of the securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the interest or dividend income generated by the securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the prices of the securities relative to other comparable
    securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    whether the securities are entitled to the benefits of call
    protection or other protective covenants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the existence of any anti-dilution protections or guarantees of
    the security;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the diversification of the portfolio of the Equity Trust as to
    issuers.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">23

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gabelli Funds&#146; investment philosophy with respect to equity
securities seeks to identify assets that are selling in the
public market at a discount to their private market value.
Gabelli Funds defines private market value as the value informed
purchasers are willing to pay to acquire assets with similar
characteristics. Gabelli Funds also normally evaluates the
issuers&#146; free cash flow and long-term earnings trends.
Finally, Gabelli Funds looks for a catalyst, something
indigenous to the company, its industry or country, that will
surface additional value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Foreign Securities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust may invest up to 35% of its total assets in
foreign securities. Among the foreign securities in which the
Equity Trust may invest are those issued by companies located in
developing countries, which are countries in the initial stages
of their industrialization cycles. Investing in the equity and
debt markets of developing countries involves exposure to
economic structures that are generally less diverse and less
mature, and to political systems that may have less stability,
than those of developed countries. The markets of developing
countries historically have been more volatile than the markets
of the more mature economies of developed countries, but often
have provided higher rates of return to investors. The Equity
Trust may also invest in the debt securities of foreign
governments. Although such investments are not a principal
strategy of the Equity Trust, there is no independent limit on
its ability to invest in the debt securities of foreign
governments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Temporary Defensive Investments</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to the Equity Trust&#146;s investment restrictions, when
a temporary defensive period is believed by Gabelli Funds to be
warranted (&#147;temporary defensive periods&#148;), the Equity
Trust may, without limitation, hold cash or invest its assets in
securities of U.S.&nbsp;government sponsored instrumentalities,
in repurchase agreements in respect of those instruments, and in
certain high-grade commercial paper instruments. During
temporary defensive periods the Equity Trust may also invest in
money market mutual funds that invest primarily in securities of
U.S.&nbsp;government sponsored instrumentalities and repurchase
agreements in respect of those instruments. Under current law,
in the absence of an exemptive order, such money market mutual
funds will not be affiliated with Gabelli Funds. Obligations of
certain agencies and instrumentalities of the
U.S.&nbsp;government, such as the Government National Mortgage
Association, are supported by the &#147;full faith and
credit&#148; of the U.S.&nbsp;government; others, such as those
of the Export-Import Bank of the U.S., are supported by the
right of the issuer to borrow from the U.S.&nbsp;Treasury;
others, such as those of the Federal National Mortgage
Association, are supported by the discretionary authority of the
U.S.&nbsp;government to purchase the agency&#146;s obligations;
and still others, such as those of the Student Loan Marketing
Association, are supported only by the credit of the
instrumentality.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No assurance can be given that the U.S.&nbsp;government would
provide financial support to U.S.&nbsp;government sponsored
instrumentalities if it is not obligated to do so by law. During
temporary defensive periods, the Equity Trust may be less likely
to achieve its secondary investment objective of income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Lower Rated Securities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust may invest up to 10% of its total assets in
fixed-income securities rated in the lower rating categories (as
described below) of recognized statistical rating agencies, such
as securities rated &#147;CCC&#148; or lower by S&#38;P or
&#147;Caa&#148; or lower by Moody&#146;s, or non-rated
securities of comparable quality. These debt securities are
predominantly speculative and involve major risk exposure to
adverse conditions and are often referred to in the financial
press as &#147;junk bonds.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Generally, lower rated securities and unrated securities of
comparable quality offer a higher current yield than is offered
by higher rated securities, but also (i)&nbsp;will likely have
some quality and protective characteristics that, in the
judgment of the ratings organizations, are outweighed by large
uncertainties or major risk exposures to adverse conditions and
(ii)&nbsp;are predominantly speculative with respect to the
issuer&#146;s capacity to pay interest and repay principal in
accordance with the terms of the obligation. The market values
of certain of these securities also tend to be more sensitive to
individual corporate developments and changes
</DIV>

<P align="center" style="font-size: 10pt;">24

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<DIV align="left" style="font-size: 10pt;">
in economic conditions than higher quality bonds. In addition,
such lower rated securities and comparable unrated securities
generally present a higher degree of credit risk. The risk of
loss due to default by these issuers is significantly greater
because such lower rated securities and unrated securities of
comparable quality generally are unsecured and frequently are
subordinated to the prior payment of senior indebtedness. In
light of these risks, Gabelli Funds, in evaluating the
creditworthiness of an issue, whether rated or unrated, will
take various factors into consideration, which may include, as
applicable, the issuer&#146;s operating history, financial
resources, its sensitivity to economic conditions and trends,
the market support for the facility financed by the issue, the
perceived ability and integrity of the issuer&#146;s management
and regulatory matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the market value of securities in lower rated
categories is more volatile than that of higher quality
securities, and the markets in which such lower rated or unrated
securities are traded are more limited than those in which
higher rated securities are traded. The existence of limited
markets may make it more difficult for the Equity Trust to
obtain accurate market quotations for purposes of valuing its
portfolio and calculating its net asset value. Moreover, the
lack of a liquid trading market may restrict the availability of
securities for the Equity Trust to purchase and may also have
the effect of limiting the ability of the Equity Trust to sell
securities at their fair market value to respond to changes in
the economy or the financial markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lower rated debt obligations also present risks based on payment
expectations. If an issuer calls the obligation for redemption
(often a feature of fixed income securities), the Equity Trust
may have to replace the security with a lower yielding security,
resulting in a decreased return for investors. Also, as the
principal value of bonds moves inversely with movements in
interest rates, in the event of rising interest rates the value
of the securities held by the Equity Trust may decline
proportionately more than a portfolio consisting of higher rated
securities. Investments in zero coupon bonds may be more
speculative and subject to greater fluctuations in value due to
changes in interest rates than bonds that pay interest currently.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As part of its investments in lower rated fixed-income
securities, the Equity Trust may invest in securities of issuers
in default. The Equity Trust will only make an investment in
securities of issuers in default when Gabelli Funds believes
that such issuers will honor their obligations or emerge from
bankruptcy protection and the value of these securities will
appreciate. By investing in the securities of issuers in
default, the Equity Trust bears the risk that these issuers will
not continue to honor their obligations or emerge from
bankruptcy protection or that the value of the securities will
not appreciate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Futures Contracts and Options Thereon</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gabelli Funds may, subject to the Equity Trust&#146;s investment
restrictions and guidelines of the Board of Directors, purchase
and sell financial futures contracts and options thereon which
are traded on a commodities exchange or board of trade for
certain hedging, yield enhancement and risk management purposes.
These futures contracts and related options may be on debt
securities, financial indices, securities indices,
U.S.&nbsp;government securities and foreign currencies. A
financial futures contract is an agreement to purchase or sell
an agreed amount of securities or currencies at a set price for
delivery in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gabelli Funds has claimed an exclusion from the definition of
the term &#147;commodity pool operator&#148; under the Commodity
Exchange Act and therefore is not subject to the registration
requirements under the Commodity Exchange Act. Accordingly, the
Equity Trust&#146;s investments in derivative instruments are
not limited by or subject to regulation under the Commodity
Exchange Act or otherwise regulated by the Commodity Futures
Trading Commission. Nevertheless, the Equity Trust&#146;s
investment restrictions place certain limitations and
prohibitions on its ability to purchase or sell commodities or
commodity contracts. In addition, investment in futures
contracts and related options generally will be limited by the
rating agency guidelines applicable to any of the Equity
Trust&#146;s outstanding preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Forward Currency Exchange Contracts</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to guidelines of the Board of Directors, the Equity
Trust may enter into forward foreign currency exchange contracts
to protect the value of its portfolio against future changes in
the level of currency exchange rates. The Equity Trust may enter
into such contracts on a &#147;spot,&#148; i.e., cash, basis at
the rate then prevailing in
</DIV>

<P align="center" style="font-size: 10pt;">25

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<DIV align="left" style="font-size: 10pt;">
the currency exchange market or on a forward basis, by entering
into a forward contract to purchase or sell currency. A forward
contract on foreign currency is an obligation to purchase or
sell a specific currency at a future date, which may be any
fixed number of days agreed upon by the parties from the date of
the contract at a price set on the date of the contract. The
Equity Trust&#146;s dealings in forward contracts generally will
be limited to hedging involving either specific transactions or
portfolio positions. The Equity Trust does not have an
independent limitation on its investments in foreign futures
contracts and options on foreign currency futures contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Repurchase Agreements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust may enter into repurchase agreements with banks
and non-bank dealers of U.S.&nbsp;government securities which
are listed as reporting dealers of the Federal Reserve Bank and
which furnish collateral at least equal in value or market price
to the amount of their repurchase obligation. In a repurchase
agreement, the Equity Trust purchases a debt security from a
seller who undertakes to repurchase the security at a specified
resale price on an agreed future date. Repurchase agreements are
generally for one business day and generally will not have a
duration of longer than one week. The SEC has taken the position
that, in economic reality, a repurchase agreement is a loan by a
fund to the other party to the transaction secured by securities
transferred to the fund. The resale price generally exceeds the
purchase price by an amount which reflects an agreed upon market
interest rate for the term of the repurchase agreement. The
Equity Trust&#146;s risk is primarily that, if the seller
defaults, the proceeds from the disposition of the underlying
securities and other collateral for the seller&#146;s obligation
may be less than the repurchase price. If the seller becomes
insolvent, the Equity Trust might be delayed in or prevented
from selling the collateral. In the event of a default or
bankruptcy by a seller, the Equity Trust will promptly seek to
liquidate the collateral. To the extent that the proceeds from
any sale of the collateral upon a default in the obligation to
repurchase is less than the repurchase price, the Equity Trust
will experience a loss. If the financial institution that is a
party to the repurchase agreement petitions for bankruptcy or
becomes subject to the U.S.&nbsp;Bankruptcy Code, the law
regarding the rights of the Equity Trust is unsettled. As a
result, under extreme circumstances, there may be a restriction
on the Equity Trust&#146;s ability to sell the collateral and
the Equity Trust could suffer a loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Loans of Portfolio Securities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To increase income, the Equity Trust may lend its portfolio
securities to securities broker-dealers or financial
institutions if (i)&nbsp;the loan is collateralized in
accordance with applicable regulatory requirements and
(ii)&nbsp;no loan will cause the value of all loaned securities
to exceed 20% of the value of its total assets. If the borrower
fails to maintain the requisite amount of collateral, the loan
automatically terminates and the Equity Trust could use the
collateral to replace the securities while holding the borrower
liable for any excess of replacement cost over the value of the
collateral. As with any extension of credit, there are risks of
delay in recovery and in some cases even loss of rights in
collateral should the borrower of the securities fail
financially.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
While these loans of portfolio securities will be made in
accordance with guidelines approved by the Equity Trust&#146;s
Board of Directors, there can be no assurance that borrowers
will not fail financially. On termination of the loan, the
borrower is required to return the securities to the Equity
Trust, and any gain or loss in the market price during the loan
would inure to the Equity Trust. If the counterparty to the loan
petitions for bankruptcy or becomes subject to the U.S.
Bankruptcy Code, the law regarding the Equity Trust&#146;s
rights is unsettled. As a result, under these circumstances,
there may be a restriction on the Equity Trust&#146;s ability to
sell the collateral and it would suffer a loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Borrowing</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust may borrow money in accordance with its
investment restrictions, including as a temporary measure for
extraordinary or emergency purposes. It may not borrow for
investment purposes.
</DIV>

<P align="center" style="font-size: 10pt;">26

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Leveraging</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As provided in the 1940 Act, and subject to compliance with its
investment limitations, the Equity Trust may issue senior
securities representing stock, such as preferred stock, so long
as immediately following such issuance of stock, its total
assets exceed 200% of the amount of such stock. The use of
leverage magnifies the impact of changes in net asset value. For
example, a fund that uses 33% leverage will show a 1.5% increase
or decline in net asset value for each 1% increase or decline in
the value of its total assets. In addition, if the cost of
leverage exceeds the return on the securities acquired with the
proceeds of leverage, the use of leverage will diminish, rather
than enhance, the return to the Equity Trust. The use of
leverage generally increases the volatility of returns to the
Equity Trust. The Equity Trust currently has four series of
preferred stock outstanding: the 7.20% Series&nbsp;B Cumulative
Preferred Stock, the Series&nbsp;C Auction Rate Cumulative
Preferred Stock, the 5.875% Series&nbsp;D Cumulative Preferred
Stock and the Series&nbsp;E Auction Rate Cumulative Preferred
Stock.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Further information on the investment objectives and policies of
the Equity Trust is set forth in the SAI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Investment Restrictions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust has adopted certain investment restrictions as
fundamental policies of the Equity Trust. Under the 1940 Act, a
fundamental policy may not be changed without the vote of a
majority of the outstanding voting securities of (i)&nbsp;the
Equity Trust and (ii)&nbsp;the preferred stock voting as a
single class, as defined in the 1940 Act. The Equity
Trust&#146;s investment restrictions are more fully discussed
under &#147;Investment Restrictions&#148; in the SAI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Portfolio Turnover</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust does not engage in the trading of securities
for the purpose of realizing short-term profits, but adjusts its
portfolio as it deems advisable in view of prevailing or
anticipated market conditions to accomplish its investment
objectives. A high rate of portfolio turnover involves
correspondingly greater brokerage commission expenses than a
lower rate, which expenses must be borne by the Equity Trust and
its shareholders. High portfolio turnover may also result in the
realization of substantial net short-term capital gains and any
distributions resulting from such gains will be taxable at
ordinary income rates for U.S.&nbsp;federal income tax purposes.
The Equity Trust&#146;s portfolio turnover rates for the fiscal
years ended December&nbsp;31, 2003 and 2004 were 19% and 29%,
respectively. The portfolio turnover rate is calculated by
dividing the lesser of sales or purchases of portfolio
securities by the average monthly value of a fund&#146;s
portfolio securities. For purposes of this calculation,
portfolio securities exclude purchases and sales of debt
securities having a maturity at the date of purchase of one year
or less.
</DIV>

<P align="center" style="font-size: 10pt;">27

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<DIV align="left" style="font-size: 10pt;">
<A name='107'></A>
</DIV>

<!-- link1 "RISK FACTORS AND SPECIAL CONSIDERATIONS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>RISK FACTORS AND SPECIAL CONSIDERATIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There are a number of risks that an investor should consider in
evaluating the Equity Trust. You should read this entire
Prospectus and the SAI before you decide whether to exercise
your Rights. In addition, you should consider the matters set
forth below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Principal Risks Associated with the Equity Trust</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Dilution</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you do not exercise all of your Rights, you may own a smaller
proportional interest in the Equity Trust when the Offer is
over. In addition, you will experience an immediate dilution of
the aggregate net asset value of your shares if you do not
participate in the Offer and will experience a reduction in the
net asset value per share of your shares whether or not you
exercise your Rights, if the Subscription Price is below the
Equity Trust&#146;s net asset value per share on the Expiration
Date, because:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the offered Common Shares are being sold at less than their
    current net asset value.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    you will indirectly bear the expenses of the Offer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the number of Common Shares outstanding after the Offer will
    have increased proportionately more than the increase in the
    amount of the Equity Trust&#146;s net assets.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On the other hand, if the Subscription Price is above the Equity
Trust&#146;s net asset value per share on the Expiration Date,
you may experience an immediate accretion of the aggregate net
asset value per share of your shares even if you do not exercise
your Rights and an immediate increase in the net asset value per
share of your shares whether or not you participate in the
Offer, because:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the offered Common Shares are being sold at more than their
    current net asset value after deducting the expenses of the
    Offer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the number of Common Shares outstanding after the Offer will
    have increased proportionately less than the increase in the
    amount of the Equity Trust&#146;s net assets.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Furthermore, if you do not participate in the Over-Subscription
Privilege, your percentage ownership may also be diluted. The
Equity Trust cannot state precisely the amount of any dilution
because it is not known at this time what the net asset value
per share will be on the Expiration Date or what proportion of
the Rights will be exercised. The impact of the Offer on net
asset value per share is shown by the following examples,
assuming a $7.00 Subscription Price:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Scenario 1: (assumes net asset value per share is above
    subscription price)(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    NAV</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.50</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Subscription Price</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.00</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reduction in NAV($)(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.07</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reduction in NAV(%)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.88</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Scenario 2: (assumes net asset value per share is below
    subscription price)(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    NAV</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6.50</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Subscription Price</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.00</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase in NAV($)(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.06</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase in NAV(%)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.90</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Both examples assume the full Primary Subscription and Secondary
    Over-Subscription Privilege are exercised. Actual amounts may
    vary due to rounding.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Assumes $600,000 in estimated offering expenses.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you do not wish to exercise your Rights, you should consider
selling them as set forth in this Prospectus. Any cash you
receive from selling your Rights should serve as partial
compensation for any
</DIV>

<P align="center" style="font-size: 10pt;">28

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<DIV align="left" style="font-size: 10pt;">
possible dilution of your interest in the Equity Trust. The
Equity Trust cannot give assurance, however, that a market for
the Rights will develop or that the Rights will have any
marketable value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Leverage Risk</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust uses financial leverage for investment purposes
by issuing preferred stock. The amount of leverage represents
approximately 26% of the Equity Trust&#146;s Managed Assets
(defined as the aggregate net asset value of the Common Shares
plus assets attributable to outstanding shares of preferred
stock, with no deduction for the liquidation preference of such
shares of preferred stock) as of June&nbsp;30, 2005. The Equity
Trust&#146;s leveraged capital structure creates special risks
not associated with unleveraged funds having similar investment
objectives and policies. These include the possibility of
greater loss and the likelihood of higher volatility of the net
asset value of the Equity Trust and the asset coverage. Such
volatility may increase the likelihood of the Equity
Trust&#146;s having to sell investments in order to meet
dividend payments on the preferred stock, or to redeem preferred
stock, when it may be disadvantageous to do so. Also, if the
Equity Trust is utilizing leverage, a decline in net asset value
could affect the ability of the Equity Trust to make common
stock distribution payments, and such a failure to pay dividends
or make distributions could result in the Equity Trust&#146;s
ceasing to qualify as a regulated investment company under the
Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because the advisory fee paid to Gabelli Funds is calculated on
the basis of the Equity Trust&#146;s Managed Assets, rather than
only on the basis of net assets attributable to the Common
Shares, the fee may be higher when leverage is utilized, giving
Gabelli Funds an incentive to utilize leverage. However, Gabelli
Funds has agreed to reduce any management fee on the incremental
assets attributable to the cumulative preferred stock during the
fiscal year if the total return of the net asset value of the
Common Shares, including distributions and advisory fee subject
to reduction for that year, does not exceed the stated dividend
rate or corresponding swap rate of each particular series of
preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Restrictions on Dividends and Other Distributions.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Restrictions imposed on the declaration and payment of dividends
or other distributions to the holders of the Common Shares and
preferred stock, both by the 1940 Act and by requirements
imposed by rating agencies, might impair the Equity Trust&#146;s
ability to maintain its qualification as a regulated investment
company for federal income tax purposes. While the Equity Trust
intends to redeem its preferred stock to the extent necessary to
enable the Equity Trust to distribute its income as required to
maintain its qualification as a regulated investment company
under the Code, there can be no assurance that such actions can
be effected in time to meet the Code requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Non-Diversified Status</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust is classified as a &#147;non-diversified&#148;
investment company under the 1940 Act, which means it is not
limited by the 1940 Act in the proportion of its assets that may
be invested in the securities of a single issuer. However, the
Equity Trust has in the past conducted and intends to conduct
its operations so as to qualify as a &#147;regulated investment
company,&#148; or RIC, for purposes of the Code, which will
relieve it of any liability for federal income tax to the extent
its earnings are distributed to stockholders. To qualify as a
&#147;regulated investment company,&#148; among other
requirements, the Equity Trust will limit its investments so
that, with certain exceptions, at the close of each quarter of
the taxable year:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    not more than 25% of the market value of its total assets will
    be invested in the securities (other than U.S.&nbsp;government
    securities or the securities of other RICs) of a single issuer,
    any two or more issuers that the Equity Trust controls and which
    are determined to be engaged in the same, similar or related
    trades or businesses or in the securities of one or more
    qualified publicly traded partnerships (as defined in the Code);
    and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    at least 50% of the market value of the Equity Trust&#146;s
    assets will be represented by cash, securities of other
    regulated investment companies, U.S.&nbsp;government securities
    and other securities, with such other securities limited in
    respect of any one issuer to an amount not greater than 5% of
    the value of its assets and not more than 10% of the outstanding
    voting securities of such issuer.</TD>
</TR>

</TABLE>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a non-diversified investment company, the Equity Trust may
invest in the securities of individual issuers to a greater
degree than a diversified investment company. As a result, the
Equity Trust may be more vulnerable to events affecting a single
issuer and therefore subject to greater volatility than a fund
that is more broadly diversified. Accordingly, an investment in
the Equity Trust may present greater risk to an investor than an
investment in a diversified company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Market Value and Net Asset Value</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Common shares of closed-end funds are bought and sold in the
securities markets and may trade at either a premium or discount
from net asset value. Listed shares of closed-end investment
companies often trade at a discount from net asset value. This
characteristic of stock of a closed-end fund is a risk separate
and distinct from the risk that its net asset value will
decrease. The Equity Trust cannot predict whether its listed
stock will trade at, below or above net asset value. Since
February 2001, the Equity Trust&#146;s Shares have traded at a
premium to their net asset value. As of September&nbsp;16, 2005
this premium was 7.33%. There is no guarantee that this premium
is sustainable either during the term of this Offer or over the
long term. The issuance of additional Common Shares pursuant to
the Offer and the Over-Subscription Privilege may reduce or
eliminate any premium that common shareholders may have
otherwise received for their Common Shares. Stockholders
desiring liquidity may, subject to applicable securities laws,
trade their Equity Trust Shares on the NYSE or other markets on
which such stock may trade at the then-current market value,
which may differ from the then-current net asset value.
Stockholders will incur brokerage or other transaction costs to
sell stock.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Lower Rated Securities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust may invest up to 10% of its total assets in
fixed-income securities rated in the lower rating categories of
recognized statistical rating agencies. These high yield
securities, also sometimes referred to as &#147;junk
bonds,&#148; generally pay a premium above the yields of
U.S.&nbsp;government securities or debt securities of investment
grade issuers because they are subject to greater risks than
these securities. These risks, which reflect their speculative
character, include the following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    greater volatility;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    greater credit risk;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    potentially greater sensitivity to general economic or industry
    conditions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    potential lack of attractive resale opportunities
    (illiquidity);&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    additional expenses to seek recovery from issuers who default.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The market value of lower-rated securities may be more volatile
than the market value of higher-rated securities and generally
tends to reflect the market&#146;s perception of the
creditworthiness of the issuer and short-term market
developments to a greater extent than more highly rated
securities, which primarily reflect fluctuations in general
levels of interest rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ratings are relative and subjective and not absolute standards
of quality. Securities ratings are based largely on the
issuer&#146;s historical financial condition and the rating
agencies&#146; analysis at the time of rating. Consequently, the
rating assigned to any particular security is not necessarily a
reflection of the issuer&#146;s current financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a part of its investment in lower rated fixed-income
securities, the Equity Trust may invest in the securities of
issuers in default. The Equity Trust will invest in securities
of issuers in default only when Gabelli Funds believes that such
issuers will honor their obligations and emerge from bankruptcy
protection and that the value of such issues&#146; securities
will appreciate. By investing in the securities of issuers in
default, the Equity Trust bears the risk that these issuers will
not continue to honor their obligations or emerge from
bankruptcy protection or that the value of these securities will
not appreciate.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Foreign Securities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust may invest up to 35% of its total assets in
foreign securities. Investments in the securities of foreign
issuers involve certain considerations and risks not ordinarily
associated with investments in securities of domestic issuers.
Foreign companies are not generally subject to uniform
accounting, auditing and financial standards and requirements
comparable to those applicable to U.S.&nbsp;companies. Foreign
securities exchanges, brokers and listed companies may be
subject to less government supervision and regulation than
exists in the United States. Dividend and interest income may be
subject to withholding and other foreign taxes, which may
adversely affect the net return on such investments. There may
be difficulty in obtaining or enforcing a court judgment abroad.
In addition, it may be difficult to effect repatriation of
capital invested in certain countries. In addition, with respect
to certain countries, there are risks of expropriation,
confiscatory taxation, political or social instability or
diplomatic developments that could affect assets of the Equity
Trust held in foreign countries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There may be less publicly available information about a foreign
company than a U.S.&nbsp;company. Foreign securities markets may
have substantially less volume than U.S.&nbsp;securities markets
and some foreign company securities are less liquid than
securities of otherwise comparable U.S.&nbsp;companies. A
portfolio of foreign securities may also be adversely affected
by fluctuations in the rates of exchange between the currencies
of different nations and by exchange control regulations.
Foreign markets also have different clearance and settlement
procedures that could cause the Equity Trust to encounter
difficulties in purchasing and selling securities on such
markets and may result in the Equity Trust missing attractive
investment opportunities or experiencing loss. In addition, a
portfolio that includes foreign securities can expect to have a
higher expense ratio because of the increased transaction costs
on non-U.S.&nbsp;securities markets and the increased costs of
maintaining the custody of foreign securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust also may purchase sponsored American Depository
Receipts (&#147;ADRs&#148;) or U.S.&nbsp;denominated securities
of foreign issuers. ADRs are receipts issued by United States
banks or trust companies in respect of securities of foreign
issuers held on deposit for use in the United States securities
markets. While ADRs may not necessarily be denominated in the
same currency as the securities into which they may be
converted, many of the risks associated with foreign securities
may also apply to ADRs. In addition, the underlying issuers of
certain depository receipts, particularly unsponsored or
unregistered depositary receipts, are under no obligation to
distribute stockholder communications to the holders of such
receipts, or to pass through to them any voting rights with
respect to the deposited securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Interest Rate Transactions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust has entered into an interest rate swap
agreement and may enter into interest rate swap or cap
transactions. The use of interest rate swaps and caps is a
highly specialized activity that involves investment techniques
and risks different from those associated with ordinary
portfolio security transactions. In an interest rate swap, the
Equity Trust would agree to pay to the other party to the
interest rate swap (which is known as the
&#147;counterparty&#148;) periodically a fixed rate payment in
exchange for the counterparty agreeing to pay to the Equity
Trust periodically a variable rate payment that is intended to
approximate the Equity Trust&#146;s variable rate payment
obligation on one or more series of its preferred stock. In an
interest rate cap, the Equity Trust would pay a premium to the
counterparty and, to the extent that a specified variable rate
index exceeds a predetermined fixed rate, would receive from the
counterparty payments of the difference based on the notional
amount of such cap. Interest rate swap and cap transactions
introduce additional risk because the Equity Trust would remain
obligated to pay preferred stock dividends when due in
accordance with the Articles Supplementary even if the
counterparty defaulted. If there is a default by the
counterparty to a swap contract, the Equity Trust will be
limited to contractual remedies pursuant to the agreements
related to the transaction. There is no assurance that the swap
contract counterparties will be able to meet their obligations
pursuant to the swap contracts or that, in the event of default,
the Equity Trust will succeed in pursuing contractual remedies.
The Equity Trust thus assumes the risk that it may be delayed in
or prevented from obtaining payments owed to it pursuant to the
swap contracts. The creditworthiness of the swap contract
counterparties is closely monitored in order to minimize this
risk. In addition, at the time an interest rate swap or cap
transaction reaches its scheduled termination date, there is a
risk that the Equity Trust will not be able
</DIV>

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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
to obtain a replacement transaction or that the terms of the
replacement will not be as favorable as on the expiring
transaction. The Equity Trust will usually enter into swaps or
caps on a net basis; that is, the two payment streams will be
netted out in a cash settlement on the payment date or dates
specified in the instrument, with the Equity Trust receiving or
paying, as the case may be, only the net amount of the two
payments. The Equity Trust intends to segregate cash or liquid
securities having a value at least equal to the value of its net
payment obligations under any swap transaction, marked to market
daily.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The use of derivative instruments involves, to varying degrees,
elements of market risk in excess of the amount recognized in
the statements of assets and liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Futures Transactions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Futures and options on futures entail certain risks, including
but not limited to the following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    no assurance that futures contracts or options on futures can be
    offset at favorable prices;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    possible reduction of the yield of the Equity Trust due to the
    use of hedging;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    possible reduction in value of both the securities hedged and
    the hedging instrument;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    possible lack of liquidity due to daily limits or price
    fluctuations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    imperfect correlation between the contracts and the securities
    being hedged; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    losses from investing in futures transactions that are
    potentially unlimited and the segregation requirements for such
    transactions. For a further description, see &#147;Investment
    Objectives and Policies&nbsp;&#151; Investment Practices&#148;
    in the SAI.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Forward Currency Exchange Contracts</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The use of forward currency contracts may involve certain risks,
including the failure of the counterparty to perform its
obligations under the contract and that the use of forward
contracts may not serve as a complete hedge because of an
imperfect correlation between movements in the prices of the
contracts and the prices of the currencies hedged or used for
cover. For a further description of such investments, see
&#147;Investment Objectives and Policies&nbsp;&#151; Investment
Practices&#148; in the SAI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Dependence on Key Personnel</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mario J. Gabelli serves as the Equity Trust&#146;s portfolio
manager. Gabelli Funds is dependent upon the expertise of
Mr.&nbsp;Gabelli in providing advisory services with respect to
the Equity Trust&#146;s investments. If Gabelli Funds were to
lose the services of Mr.&nbsp;Gabelli, its ability to service
the Equity Trust could be adversely affected. There can be no
assurance that a suitable replacement could be found for
Mr.&nbsp;Gabelli in the event of his death, resignation,
retirement or inability to act on behalf of Gabelli Funds.
</DIV>

<P align="center" style="font-size: 10pt;">32

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<DIV align="left" style="font-size: 10pt;">
<A name='108'></A>
</DIV>

<!-- link1 "MANAGEMENT OF THE EQUITY TRUST" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>MANAGEMENT OF THE EQUITY TRUST</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust&#146;s Board of Directors (who, with its
officers, are described in the SAI) has overall responsibility
for the management of the Equity Trust. The Board of Directors
decides upon matters of general policy and reviews the actions
of Gabelli Funds.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Investment Management.</I> Gabelli Funds, located at One
Corporate Center, Rye, New York 10580-1422, serves as the
investment adviser to the Equity Trust pursuant to an investment
advisory agreement. Gabelli Funds was organized in 1999 and is
the successor to Gabelli Funds, Inc., which was organized in
1980. As of June&nbsp;30, 2005, Gabelli Funds acted as
registered investment adviser to 28&nbsp;management investment
companies with aggregate net assets of $12.8&nbsp;billion.
Gabelli Funds, together with other affiliated investment
advisers, had assets under management totaling approximately
$27.6&nbsp;billion as of June&nbsp;30, 2005. GAMCO Asset
Management Inc., an affiliate of Gabelli Funds, acts as
investment adviser for individuals, pension trusts, profit
sharing trusts and endowments, and as a sub-adviser to
management investment companies having aggregate assets of
$13.2&nbsp;billion under management as of June&nbsp;30, 2005.
Gabelli Fixed Income LLC, an affiliate of Gabelli Funds, acts as
investment adviser for The Treasurer&#146;s Fund and separate
accounts having aggregate assets of approximately
$400&nbsp;million under management as of June&nbsp;30, 2005.
Gabelli Advisers, Inc., an affiliate of Gabelli Funds, acts as
investment manager to the Westwood Funds having aggregate assets
of approximately $400&nbsp;million under management as of
June&nbsp;30, 2005.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gabelli Funds is a wholly-owned subsidiary of GAMCO Investors,
Inc., a New York corporation, whose Class&nbsp;A Common Stock is
traded on the NYSE under the symbol &#147;GBL.&#148;
Mr.&nbsp;Mario J. Gabelli may be deemed a &#147;controlling
person&#148; of Gabelli Funds on the basis of his ownership of a
majority of the stock of GGCP, Inc., which owns a majority of
the capital stock of GAMCO Investors, Inc.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gabelli Funds has sole investment discretion for the Equity
Trust&#146;s assets under the supervision of the Equity
Trust&#146;s Board of Directors and in accordance with the
Equity Trust&#146;s stated policies. Gabelli Funds will select
investments for the Equity Trust and will place purchase and
sale orders on behalf of the Equity Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Advisory Agreement.</I> Under the terms of the Equity
Trust&#146;s Investment Advisory Agreement (the &#147;Advisory
Agreement&#148;), Gabelli Funds manages the portfolio of the
Equity Trust in accordance with its stated investment objectives
and policies, makes investment decisions for the Equity Trust,
places orders to purchase and sell securities on behalf of the
Equity Trust and manages the Equity Trust&#146;s other business
and affairs, all subject to the supervision and direction of its
Board of Directors. In addition, under the Advisory Agreement,
Gabelli Funds oversees the administration of all aspects of the
Equity Trust&#146;s business and affairs and provides, or
arranges for others to provide, at Gabelli Funds&#146; expense,
certain enumerated services, including maintaining the Equity
Trust&#146;s books and records, preparing reports to its
stockholders and supervising the calculation of the net asset
value of its stock. All expenses of computing the Equity
Trust&#146;s net asset value, including any equipment or
services obtained solely for the purpose of pricing shares of
stock or valuing the Equity Trust&#146;s investment portfolio,
will be an expense of the Equity Trust under the Advisory
Agreement unless Gabelli Funds voluntarily assumes
responsibility for such expense. During fiscal 2004, the Equity
Trust reimbursed Gabelli Funds $34,800 in connection with the
cost of computing the Equity Trust&#146;s net asset value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Advisory Agreement combines investment advisory and
administrative responsibilities in one agreement. For services
rendered by Gabelli Funds on behalf of the Equity Trust under
the Advisory Agreement, the Equity Trust pays Gabelli Funds a
fee computed weekly and paid monthly at the annual rate of 1.00%
of its average weekly net assets plus the liquidation value of
any outstanding preferred stock. Gabelli Funds has agreed to
reduce the management fee on the incremental assets attributable
to the cumulative preferred stock during the fiscal year if the
total return of the net asset value of Common Shares, including
distributions and advisory fee subject to reduction for that
year, does not exceed the stated dividend rate or corresponding
swap rate of each particular series of preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust&#146;s total return on the net asset value of
its Common Shares is monitored on a monthly basis to assess
whether the total return on the net asset value of its Common
Shares exceeds the stated dividend rate or corresponding swap
rate of each particular series of outstanding preferred stock
for the period.
</DIV>

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</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
The test to confirm the accrual of the management fee on the
assets attributable to each particular series of preferred stock
is annual. The Equity Trust will accrue for the management fee
on these assets during the fiscal year if it appears probable
that the Equity Trust will incur the additional management fee
on those assets. For the year ended December&nbsp;31, 2004, the
Equity Trust&#146;s total return on the net asset value of the
Common Shares exceeded the stated dividend rate or corresponding
swap rate of all outstanding preferred stock, and thus
management fees were accrued on those assets. For the year ended
December&nbsp;31, 2004, Gabelli Funds earned $15,167,775 for
advisory services. For the six months ended June&nbsp;30, 2005,
the Equity Trust&#146;s total return on the net asset value of
the Common Shares did not exceed the stated dividend rates or
corresponding swap rate of all outstanding preferred stock.
Thus, management fees with respect to the liquidation value of
the preferred stock assets in the amount of $2,076,504 were not
accrued.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Advisory Agreement provides that in the absence of willful
misfeasance, bad faith, gross negligence or reckless disregard
for its obligations and duties thereunder, Gabelli Funds is not
liable for any error or judgment or mistake of law or for any
loss suffered by the Equity Trust. As part of the Advisory
Agreement, the Equity Trust has agreed that the name
&#147;Gabelli&#148; is Gabelli Funds&#146; property, and that in
the event Gabelli Funds ceases to act as an investment adviser
to the Equity Trust, the Equity Trust will change its name to
one not including &#147;Gabelli.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to its terms, the Advisory Agreement will remain in
effect with respect to the Equity Trust from year to year if
approved annually (i)&nbsp;by the Equity Trust&#146;s Board of
Directors or by the holders of a majority of the Equity
Trust&#146;s outstanding voting securities and (ii)&nbsp;by a
majority of the Directors who are not &#147;interested
persons&#148; (as defined in the 1940 Act) of any party to the
Advisory Agreement, by vote cast in person at a meeting called
for the purpose of voting on such approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A discussion regarding the basis of the Board of Directors&#146;
approval of the Advisory Agreement is available in the Equity
Trust&#146;s semi-annual report to shareholders for the period
ended June&nbsp;30, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Canadian shareholders should note, to the extent applicable,
that there may be difficulty enforcing any legal rights against
Gabelli Funds because it is resident outside Canada and all of
it assets are situated outside Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Selection of Securities Brokers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Advisory Agreement contains provisions relating to the
selection of securities brokers to effect the portfolio
transactions of the Equity Trust. Under those provisions,
Gabelli Funds may (i)&nbsp;direct Equity Trust portfolio
brokerage to Gabelli&nbsp;&#38; Company, Inc. or other
broker-dealer affiliates of Gabelli Funds and (ii)&nbsp;pay
commissions to brokers other than Gabelli&nbsp;&#38; Company,
Inc. that are higher than might be charged by another qualified
broker to obtain brokerage and/or research services considered
by Gabelli Funds to be useful or desirable for its investment
management of the Equity Trust and/or its other advisory
accounts or those of any investment adviser affiliated with it.
The SAI contains further information about the Advisory
Agreement, including a more complete description of the advisory
and expense arrangements, exculpatory and brokerage provisions,
as well as information on the brokerage practices of the Equity
Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Portfolio Management</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mario J. Gabelli is currently and has been responsible for the
day-to-day management of the Equity Trust since its formation.
Mr.&nbsp;Gabelli has served as Chief Investment
Officer&nbsp;&#151;&nbsp;Value Portfolios of Gabelli Funds and
predecessor since 1980. Mr.&nbsp;Gabelli also serves as
Portfolio Manager for several other funds in the Gabelli fund
family. Because of the diverse nature of Mr.&nbsp;Gabelli&#146;s
responsibilities, he will devote less than all of his time to
the day-to-day management at the Equity Trust. Over the past
five years, Mr.&nbsp;Gabelli has served as Chairman of the Board
and Chief Executive Officer of GAMCO Investors, Inc.; Chief
Investment Officer&nbsp;&#151;&nbsp;Value Portfolios of GAMCO
Asset Management Inc; Vice Chairman of the Board of Lynch
Corporation (until 2004), a diversified manufacturing company,
and Chairman of the Board and Chief Executive Officer of Lynch
Interactive Corporation, a multimedia and communications
services company.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Additionally, Mr.&nbsp;Caesar M.P. Bryan manages approximately
$76&nbsp;million of the Equity Trust&#146;s assets as of
June&nbsp;30, 2005. Mr.&nbsp;Bryan has been a Senior Vice
President and Portfolio Manager with GAMCO Asset
</DIV>

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</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
Management Inc. (a wholly-owned subsidiary of GAMCO Investors,
Inc.) and Portfolio Manager of the Gabelli Gold Fund, Inc. since
May 1994, Co-Portfolio Manager of The Gabelli Global Opportunity
Fund since May 1998, Gold Companies Portfolio Manager of the
Gabelli Global Gold, Natural Resources&nbsp;&#38;&nbsp;Income
Trust since March 2005 and a member of the Gabelli Growth Fund
portfolio management team since September 2000.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The SAI provides additional information about
Mr.&nbsp;Gabelli&#146;s and Mr.&nbsp;Bryan&#146;s compensation,
other accounts managed by Mr.&nbsp;Gabelli and Mr.&nbsp;Bryan
and Mr.&nbsp;Gabelli&#146;s and Mr.&nbsp;Bryan&#146;s ownership
of securities in the Equity Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Non-Resident Director</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Karl Otto P&#246;hl, a director of the Equity Trust, resides
outside the United States and all or a significant portion of
his assets are located outside the United States.
Mr.&nbsp;P&#246;hl does not have an authorized agent in the
United States to receive service of process. As a result, it may
not be possible for investors to effect service of process
within the United States or to enforce against
Mr.&nbsp;P&#246;hl in United States courts judgments predicated
upon civil liability provisions of United States securities
laws. It may also not be possible to enforce against
Mr.&nbsp;P&#246;hl in foreign courts judgments of United States
courts or liabilities in original actions predicated upon civil
liability provisions of the United States securities laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Sub-Administrator</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PFPC, located at 760 Moore Road, King of Prussia, Pennsylvania
19406, serves as the Equity Trust&#146;s sub-administrator. For
these services and the related expenses borne by PFPC, Gabelli
Funds pays a prorated monthly fee at the annual rate of 0.0275%
of the first $10.0&nbsp;billion of the aggregate average net
assets of the Equity Trust and all other funds advised by
Gabelli Funds and administered by PFPC, 0.0125% of the aggregate
average net assets exceeding $10&nbsp;billion and 0.01% of the
aggregate average net assets in excess of $15&nbsp;billion.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='109'></A>
</DIV>

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<B>NET ASSET VALUE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The net asset value of Common Shares is computed based on the
market value of the securities the Equity Trust holds and will
generally be determined daily as of the close of regular trading
on the NYSE.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Portfolio securities listed or traded on a nationally recognized
securities exchange or traded in the U.S.&nbsp;over-the-counter
market for which market quotations are readily available are
valued at the last quoted sale price or a market&#146;s official
closing price as of the close of business on the day the
securities are being valued. If there were no sales that day,
the security is valued at the average of the closing bid and
asked prices, or, if there were no asked prices quoted on such
day, the security is valued at the bid price at that day. If no
bid or asked prices are quoted on such day, then the security is
valued at the most recently available prices or, if the Board of
Directors so determines, by such other method as the Board of
Directors shall determine in good faith, to reflect its fair
market value. Portfolio securities traded on more than one
national securities exchange or market are valued according to
the broadest and most representative market, as determined by
Gabelli Funds.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Portfolio securities primarily traded on foreign markets are
generally valued at the preceding closing values of such
securities on their respective exchanges or if after the close
of the foreign markets, but prior to the close of business on
the day the securities are being valued, market conditions
change significantly, certain foreign securities may be fair
valued pursuant to procedures established by the Board of
Directors. Debt instruments with remaining maturities of
60&nbsp;days or less that are not credit impaired are valued at
amortized cost, unless the Board of Directors determines such
does not reflect fair value, in which case these securities will
be valued at their fair value as determined by the Board of
Directors. Debt instruments having a maturity greater than
60&nbsp;days for which market quotations are readily available
are valued at the latest average of the bid and asked prices. If
there were no asked prices quoted on such day, the security is
valued using the closing bid price. Futures contracts are valued
at the closing settlement price of the exchange or board of
trade on which the applicable contract is traded.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Securities and assets for which market quotations are not
readily available are valued at their fair value as determined
in good faith under procedures established by and under the
general supervision of the Board of Directors. Fair valuation
methodologies and procedures may include, but are not limited
to: analysis and
</DIV>

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<DIV align="left" style="font-size: 10pt;">
review of available financial and non-financial information
about the company; comparisons to the valuation and changes in
valuation of similar securities, including a comparison of
foreign securities to the equivalent U.S.&nbsp;dollar value ADR
securities at the close of the U.S.&nbsp;exchange; and
evaluation of any other information that could be indicative of
the value of the security.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, whenever developments in one or more securities
markets after the close of the principal markets for one or more
portfolio securities and before the time as of which the Equity
Trust determines its net asset value would, if such developments
had been reflected in such principal markets, likely have more
than a minimal effect on its net asset value per share, the
Equity Trust may fair value such portfolio securities based on
available market information as of the time it determines its
net asset value.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='110'></A>
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DIVIDENDS AND DISTRIBUTIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust may retain for reinvestment, and pay the
resulting federal income taxes on, its net capital gain, if any,
although the Equity Trust reserves the authority to distribute
its net capital gain in any year. The Equity Trust has a policy,
which may be modified at any time by its Board of Directors, of
paying a minimum annual distribution of 10% of the average net
asset value of the Equity Trust to holders of Common Shares. The
Equity Trust&#146;s current quarterly distribution level was
raised to $0.19 per share for the third quarter, a 6% increase
from the previous quarter&#146;s $0.18&nbsp;per share
distribution. The Equity Trust anticipates an adjusting
distribution in the fourth quarter of a sufficient amount to pay
10% of the average net asset value of the Equity Trust, as of
the last day of the four preceding calendar quarters, or to
satisfy the minimum distribution requirements of the Code,
whichever is greater. Each quarter, the Board of Directors
reviews the amount of any potential distribution and the income,
capital gains or capital available. This policy permits holders
of Common Shares to realize a predictable, but not assured,
level of cash flow and some liquidity periodically with respect
to their Common Shares without having to sell Common Shares. To
avoid paying income tax at the corporate level, the Equity Trust
distributes substantially all of its investment company taxable
income and net capital gain. In the event that the Equity
Trust&#146;s investment company taxable income and net capital
gain exceed the total of its quarterly distributions, the Equity
Trust intends to pay such excess once a year. If, for any
calendar year, the total quarterly distributions exceed both
current earnings and profits and accumulated earnings and
profits, the excess will generally be treated as a tax-free
return of capital up to the amount of a stockholder&#146;s tax
basis in the stock. The amount treated as a tax-free return of
capital will reduce a stockholder&#146;s tax basis in the stock,
thereby increasing such stockholder&#146;s potential gain or
reducing his or her potential loss on the sale of the stock. Any
amounts distributed to a stockholder in excess of the basis in
the stock will be taxable to the stockholder as capital gain.
The Equity Trust&#146;s distribution policy may cause it to make
taxable distributions to shareholders in excess of the minimum
amounts of such taxable distributions it would be required to
make in order to avoid liability for federal income tax. In
certain situations, this excess distribution may cause
shareholders to be liable for taxes for which they would not
otherwise be liable if the Equity Trust paid only that amount
required to avoid liability for federal income tax.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the event the Equity Trust distributes amounts in excess of
its investment company taxable income and net capital gain, such
distributions will decrease the Equity Trust&#146;s total assets
and, therefore, have the likely effect of increasing its expense
ratio. In addition, in order to make such distributions, the
Equity Trust might have to sell a portion of its investment
portfolio at a time when independent investment judgment might
not dictate such action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust, along with other closed-end registered
investment companies advised by Gabelli Funds, has obtained an
exemption from Section&nbsp;19(b) of the 1940 Act and
Rule&nbsp;19b-1 thereunder permitting it to make periodic
distributions of long-term capital gains provided that any
distribution policy of the Equity Trust with respect to its
Common Shares calls for periodic (e.g., quarterly or
semi-annually, but in no event more frequently than monthly)
distributions in an amount equal to a fixed percentage of the
Equity Trust&#146;s average net asset value over a specified
period of time or market price per share of Common Shares at or
about the time of distribution or pay-out of a fixed dollar
amount. The exemption also permits the Equity Trust to make
distributions with respect to its preferred stock in accordance
with such stock&#146;s terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Shareholders who exercise Rights will not be entitled to
receive any dividend with respect to Common Shares issued
pursuant to the offer when the record date for that dividend
precedes the exercise of the Rights.</B>
</DIV>

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<DIV align="left" style="font-size: 10pt;">
<A name='111'></A>
</DIV>

<!-- link1 "TAXATION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>TAXATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following discussion is a brief summary of certain
U.S.&nbsp;federal income tax considerations affecting the Equity
Trust and its stockholders. No attempt is made to present a
detailed explanation of all U.S.&nbsp;federal, state, local and
foreign tax concerns affecting the Equity Trust and its
stockholders, and the discussion set forth herein does not
constitute tax advice. The discussion reflects applicable tax
laws of the United States as of the date of this Prospectus/
Proxy Statement, which tax laws may be changed or subject to new
interpretations by the courts or the Internal Revenue Service
(the &#147;IRS&#148;) retroactively or prospectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Taxation of The Equity Trust.</I> The Equity Trust has
elected to be treated and has qualified as, and intends to
continue to qualify as, a regulated investment company under
Subchapter&nbsp;M of the Code. Accordingly, it must, among other
things, (i)&nbsp;derive in each taxable year at least 90% of its
gross income (including tax-exempt interest) from dividends,
interest, payments with respect to certain securities loans, and
gains from the sale or other disposition of stock, securities or
foreign currencies, other income (including but not limited to
gain from options, futures and forward contracts) derived with
respect to its business of investing in such stock, securities
or currencies, and interests in &#147;qualified publicly traded
partnerships&#148; (as defined in the Code); and
(ii)&nbsp;diversify its holdings so that, at the end of each
quarter of each taxable year (a)&nbsp;at least 50% of the market
value of its total assets is represented by cash and cash items,
U.S.&nbsp;government securities, the securities of other
regulated investment companies and other securities, with such
other securities limited, in respect of any one issuer, to an
amount not greater than 5% of the value of its total assets and
not more than 10% of the outstanding voting securities of such
issuer, and (b)&nbsp;not more than 25% of the market value of
its total assets is invested in the securities (other than
U.S.&nbsp;government securities and the securities of other
regulated investment companies) of (I)&nbsp;any one issuer,
(II)&nbsp;any two or more issuers that it controls and that are
determined to be engaged in the same business or similar or
related trades or businesses or (III)&nbsp;any one or more
&#147;qualified publicly traded partnerships&#148; (as defined
in the Code).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a regulated investment company, the Equity Trust generally is
not subject to U.S.&nbsp;federal income tax on income and gains
that it distributes each taxable year to stockholders, if it
distributes at least 90% of the sum of its (i)&nbsp;investment
company taxable income (as that term is defined in the Code)
determined without regard to the deduction for dividends paid,
and (ii)&nbsp;its net tax-exempt interest (the excess of its
gross tax-exempt interest over certain disallowed deductions).
The Equity Trust intends to distribute at least annually
substantially all of such income. The Equity Trust will be
subject to income tax at regular corporate rates on any taxable
income or gains that it does not distribute to its shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Amounts not distributed on a timely basis in accordance with a
calendar year distribution requirement are subject to a
nondeductible 4% excise tax at the fund level. To avoid the
excise tax, the Equity Trust must distribute during each
calendar year an amount at least equal to the sum of
(i)&nbsp;98% of its ordinary income (not taking into account any
capital gains or losses) for the calendar year, (ii)&nbsp;98% of
its capital gains in excess of its capital losses (adjusted for
certain ordinary losses) for a one-year period generally ending
on October&nbsp;31 of the calendar year (unless an election is
made to use its fiscal year), and (iii)&nbsp;certain
undistributed amounts from previous years on which it paid no
U.S.&nbsp;federal income tax. While the Equity Trust intends to
distribute any income and capital gains in the manner necessary
to minimize imposition of the 4% excise tax, there can be no
assurance that sufficient amounts of its taxable income and
capital gains will be distributed to avoid entirely the
imposition of the excise tax. In that event, the Equity Trust
will be liable for the excise tax only on the amount by which it
does not meet the foregoing distribution requirement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If for any taxable year the Equity Trust does not qualify as a
regulated investment company, all of its taxable income
(including its net capital gain) will be subject to tax at
regular corporate rates without any deduction for distributions
to stockholders, and such distributions will be taxable to the
stockholders as ordinary dividends to the extent of its current
and accumulated earnings and profits.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Taxation of Equity Trust&nbsp;Stockholders.</I> Distributions
paid to holders of Common Shares by the Equity Trust from its
net investment income or from an excess of net short-term
capital gains over net long-term capital losses (together
referred to hereinafter as &#147;ordinary income
dividends&#148;) are generally taxable to them as ordinary
income to the extent of the Equity Trust&#146;s earnings and
profits. Such dividends (if designated by the Equity Trust) may,
however, qualify (provided holding period and other requirements
are met at the
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
Equity Trust and stockholder level) (i)&nbsp;for the dividends
received deduction in the case of corporate stockholders to the
extent that the Equity Trust&#146;s income consists of
qualifying dividend income from U.S.&nbsp;corporations and
(ii)&nbsp;(effective for taxable years through December&nbsp;31,
2008), as qualified dividend income eligible for the reduced
maximum rate to individuals of generally 15% (5% for individuals
in the lowest two tax brackets) to the extent that the Equity
Trust receives qualified dividend income. Qualified dividend
income is, in general, dividend income from taxable domestic
corporations and certain foreign corporations (e.g., generally,
foreign corporations incorporated in a possession of the United
States or in certain countries with a comprehensive tax treaty
with the United States, or the stock of which is readily
tradable on an established securities market in the United
States). Distributions made to stockholders from an excess of
net long-term capital gains over net short-term capital losses
(&#147;capital gain dividends&#148;), including capital gain
dividends credited to you but retained by the Equity Trust, are
taxable to stockholders as long-term capital gains if they have
been properly designated by the Equity Trust, regardless of the
length of time stockholders have owned Common Shares. The tax
rate on net long-term capital gain of individuals is reduced
generally to 15% (5% for individuals in lower brackets) for such
gain realized before January&nbsp;1, 2009. Distributions in
excess of the Equity Trust&#146;s earnings and profits will
first reduce the adjusted tax basis of Common Shares and, after
such adjusted tax basis is reduced to zero, will constitute
capital gains (assuming the Common Shares are held as a capital
asset). Generally, not later than 60&nbsp;days after the close
of its taxable year, the Equity Trust will provide stockholders
with a written notice designating the amount of any qualified
dividend income or capital gain dividends and other
distributions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The sale or other disposition of Common Shares will generally
result in capital gain or loss, and will be long-term capital
gain or loss if the stock has been held for more than one year
at the time of sale. Any loss upon the sale or exchange of
Common Shares held for six months or less will be treated as
long-term capital loss to the extent of any capital gain
dividends received (including amounts credited as an
undistributed capital gain dividend). A loss realized on a sale
or exchange of Common Shares will be disallowed if other Common
Shares are acquired within a 61-day period beginning
30&nbsp;days before and ending 30&nbsp;days after the date that
the stock is disposed of. In such case, the basis of the stock
acquired will be adjusted to reflect the disallowed loss.
Present law taxes both long-term and short-term capital gains of
corporations at the rates applicable to ordinary income. For
non-corporate taxpayers, short-term capital gains will currently
be taxed at a maximum rate of 35% while long-term capital gains
generally will be taxed at a maximum rate of 15%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the Equity Trust pays a dividend in January that was declared
in the previous October, November or December to stockholders of
record on a specified date in one of such months, then such
dividend will be treated for tax purposes as being paid by the
Equity Trust and received by stockholders on December&nbsp;31 of
the year in which the dividend was declared.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust is required in certain circumstances to backup
withhold on taxable dividends and certain other payments paid to
non-corporate holders of its stock who do not furnish the Equity
Trust with their correct taxpayer identification number (in the
case of individuals, their social security number) and certain
certifications, or who are otherwise subject to backup
withholding. Backup withholding is not an additional tax. Any
amounts withheld from payments made may be refunded or credited
against the stockholder&#146;s U.S.&nbsp;federal income tax
liability, if any, provided that the required information is
furnished to the IRS.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>The foregoing is a general and abbreviated summary of the
provisions of the Code and the Treasury regulations in effect as
they directly govern the taxation of the Equity Trust and its
shareholders. These provisions are subject to change by
legislative or administrative action, and any such change may be
retroactive. A more complete discussion of the tax rules
applicable to the Equity Trust can be found in the Statement of
Additional Information which is incorporated by reference into
this Prospectus. Shareholders are urged to consult their tax
advisers regarding specific questions as to U.S.&nbsp;federal,
foreign, state, local income or other taxes.</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt;">38

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<DIV align="left" style="font-size: 10pt;">
<A name='112'></A>
</DIV>

<!-- link1 "CAPITALIZATION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CAPITALIZATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Common Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to an amendment to the Equity Trust&#146;s Charter that
was approved by stockholders in 2004, the Board of Directors may
increase or decrease the aggregate number of shares of stock of
the Equity Trust or the number of shares of stock of any class
or series that the Equity Trust has authority to issue without
stockholder approval. The Equity Trust is currently authorized
to issue 252,000,000, Common Shares, $.001&nbsp;par value.
Common Shares of Equity Trust entitle its holders to one vote
per share. Holders of Common Shares are entitled to share
equally in dividends authorized by the Equity Trust&#146;s Board
of Directors payable to the holders of such Common Shares and in
the net assets of the Equity Trust available on liquidation for
distribution to holders of such Common Shares. Common Shares
have noncumulative voting rights and no conversion, preemptive
or other subscription rights, and are not redeemable. The Common
Shares are fully paid and non-assessable. In the event of
liquidation, each Common Share is entitled to its proportion of
the Equity Trust&#146;s assets after payment of debts and
expenses and the amounts payable to holders of the Equity Trust
preferred stock ranking senior to the Common Shares as described
below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stockholders whose Common Shares are registered in their own
name will have all distributions reinvested pursuant to the
Automatic Dividend Reinvestment and Voluntary Cash Purchase
Plan. For a more detailed discussion of the Equity Trust&#146;s
reinvestment plan, see &#147;Automatic Dividend Reinvestment and
Voluntary Cash Purchase Plan&#148; in the SAI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Common Shares are listed and traded on the NYSE under the
symbol &#147;GAB.&#148; The average weekly trading volume of the
Common Shares on the NYSE for the 12&nbsp;months ended
December&nbsp;31, 2004 was 745,817&nbsp;shares. The following
table sets forth for the quarters indicated the high and low
closing prices on the NYSE per share of the Common Shares and
the net asset value and the premium or discount from net asset
value at which the Common Shares were trading, expressed as a
percentage of net asset value, at each of the high and low
closing prices provided.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="45%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Premium (Discount)</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Market Price</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Net Asset Value</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>as % of NAV</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Period</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>High</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Low</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>High</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Low</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>High</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Low</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Fiscal Year 2003</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Q1</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6.54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26.72</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.13</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Q2</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23.62</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.29</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Q3</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.54</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.90</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Q4</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.88</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.63</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Fiscal Year 2004</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Q1</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.47</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.37</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Q2</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.53</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.64</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Q3</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.68</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.63</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Q4</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.14</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.24</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Fiscal Year 2005</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Q1</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9.27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.88</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.84</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.83</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Q2</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.69</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.32</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Preferred Shares</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Currently, 18,000,000&nbsp;shares of the Equity Trust&#146;s
capital stock have been classified by the Board of Directors as
preferred stock, par value $.001&nbsp;per share. The terms of
such preferred stock may be fixed by the Board of Directors and
may materially limit and/or qualify the rights of the holders of
the Common Shares. As of June&nbsp;30, 2005, the Equity Trust
had 6,600,000 outstanding shares of Series&nbsp;B Preferred,
5,200
</DIV>

<P align="center" style="font-size: 10pt;">39

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
outstanding shares of Series&nbsp;C Auction Rate Preferred,
2,949,700 outstanding shares of Series&nbsp;D Preferred and
2,000 outstanding shares of Series&nbsp;E Auction Rate
Preferred, which are senior securities of the Equity Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dividends on the Series&nbsp;B Preferred accumulate at an annual
rate of 7.20% of the liquidation preference of $25&nbsp;per
share, are cumulative from the date of original issuance
thereof, and are payable quarterly on March&nbsp;26,
June&nbsp;26, September 26 and December 26 in each year. The
Series&nbsp;B Preferred is rated &#147;Aaa&#148; by
Moody&#146;s. The Equity Trust&#146;s outstanding Series&nbsp;B
Preferred is redeemable at the liquidation preference plus
accumulated but unpaid dividends (whether or not earned or
declared) at the option of the Equity Trust beginning
June&nbsp;20, 2006. The Series&nbsp;B Preferred is listed and
traded on the NYSE under the symbol &#147;GAB&nbsp;PrB&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dividends on the Series&nbsp;C Auction Rate Preferred accumulate
at a variable rate set at a weekly auction. The Series&nbsp;C
Auction Rate Preferred is rated &#147;Aaa&#148; by Moody&#146;s
and &#147;AAA&#148; by S&#38;P. The liquidation preference of
the Series&nbsp;C Auction Rate Preferred is $25,000. The Equity
Trust generally may redeem the outstanding Series&nbsp;C Auction
Rate Preferred, in whole or in part, at any time other than
during a non-call period. The Series&nbsp;C Auction Rate
Preferred is not traded on any exchange.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dividends on the Series&nbsp;D Preferred accumulate at an annual
rate of 5.875% of the liquidation preference of $25 per share,
are cumulative from the date of original issuance thereof, and
are payable quarterly on March&nbsp;26, June&nbsp;26,
September&nbsp;26 and December&nbsp;26 in each year. The
Series&nbsp;D Preferred is rated &#147;Aaa&#148; by
Moody&#146;s. The Equity Trust&#146;s outstanding Series&nbsp;D
Preferred is redeemable at the liquidation preference plus
accumulated but unpaid dividends (whether or not earned or
declared) at the option of the Equity Trust beginning
October&nbsp;7, 2008. The Series&nbsp;D Preferred is listed and
traded on the NYSE under the symbol &#147;GAB PrD&#148;.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dividends on the Series&nbsp;E Auction Rate Preferred accumulate
at a variable rate set at a weekly auction. The Series&nbsp;E
Auction Rate Preferred is rated &#147;Aaa&#148; by Moody&#146;s
and &#147;AAA&#148; by S&#38;P. The liquidation preference of
the Series&nbsp;E Auction Rate Preferred is $25,000. The Equity
Trust generally may redeem the outstanding Series&nbsp;E Auction
Rate Preferred, in whole or in part, at any time other than
during a non-call period. The Series&nbsp;E Auction Rate
Preferred is not traded on any exchange.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon a liquidation, dissolution or winding up of the affairs of
the Equity Trust (whether voluntary or involuntary), holders of
the Equity Trust preferred stock then outstanding will be
entitled to receive out of the assets of the Equity Trust
available for distribution to stockholders, after satisfying
claims of creditors but before any distribution or payment of
assets is made to holders of Common Shares, a liquidation
distribution in the amount of the liquidation preference of the
preferred stock plus an amount equal to all unpaid dividends
accumulated to and including the date fixed for such
distribution or payment (whether or not earned or declared by
the Equity Trust but excluding interest thereon), and such
preferred stockholders will be entitled to no further
participation in any distribution or payment in connection with
any such liquidation, dissolution or winding up. Unless and
until the liquidation payments due to preferred stockholders
have been paid in full, no dividends or distributions will be
made to holders of Common Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table shows (i)&nbsp;the classes of capital stock
authorized, (ii)&nbsp;the number of shares authorized in each
class, and (iii)&nbsp;the number of shares outstanding in each
class as of June&nbsp;30, 2005.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="69%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amount</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amount</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Class of Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Authorized</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Outstanding</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Common Stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>182,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>141,702,724</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Series&nbsp;B Preferred</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,600,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,600,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Series&nbsp;C Auction Rate Preferred</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,200</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Series&nbsp;D Preferred</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,949,700</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Series&nbsp;E Auction Rate Preferred</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,000</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
It was a condition to the issuance of the preferred stock that
it be rated &#147;Aaa&#148; by Moody&#146;s. In connection with
the receipt of such rating, the composition of the Equity
Trust&#146;s portfolio must reflect guidelines established by
Moody&#146;s and the Equity Trust is required to maintain a
minimum discounted asset coverage with respect to the preferred
stock. See &#147;Moody&#146;s Discount Factors&#148; in the SAI.
</DIV>

<P align="center" style="font-size: 10pt;">40

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Effects of Leverage</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The holders of the Equity Trust&#146;s preferred shares are
entitled to the applicable dividend rate as and when declared.
Any return earned in excess of the stated dividend rate would
directly benefit holders of Common Shares; however, any
shortfall from the stated rate would negatively affect holders
of Common Shares. The following table is designed to assist you
in understanding the effects of the existing leverage on Common
Shares of the Equity Trust. The table assumes that
6,600,000&nbsp;shares of Series&nbsp;B Preferred are issued and
outstanding, 5,200&nbsp;shares of Series&nbsp;C Auction Rate
Preferred are issued and outstanding, 2,949,700&nbsp;shares of
Series&nbsp;D Preferred are issued and outstanding and
2,000&nbsp;shares of Series&nbsp;E Auction Rate Preferred are
issued and outstanding and that the blended dividend rate for
the Equity Trust&#146;s preferred shares is 5.66%. The assumed
returns appearing in the table are hypothetical and actual
returns may be greater or less than those appearing in the table.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="56%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Assumed return on portfolio (net of expenses)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10.00</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5.00</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.00</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.00</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.00</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Corresponding return to Common Shareholder</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(15.52</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8.76</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.00</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.77</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.53</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following factors associated with leveraging could increase
the investment risk and volatility of the price of the Common
Shares:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    leveraging exaggerates any increase or decrease in the net asset
    value of the Common Shares;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the dividend requirements on the Equity Trust&#146;s preferred
    shares may exceed the income from the portfolio securities
    purchased with the proceeds from the issuance of preferred
    shares;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a decline in net asset value results if the investment
    performance of the additional securities purchased fails to
    cover their cost to the Equity Trust (including any dividend
    requirements of preferred shares);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a decline in net asset value could affect the ability of the
    Equity Trust to make Common Share dividend payments;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a failure to pay dividends or make distributions on its Common
    Shares could result in the Equity Trust&#146;s ceasing to
    qualify as a regulated investment company under the
    Code;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    if the asset coverage for the Equity Trust&#146;s preferred
    shares declines to less than two hundred percent (as a result of
    market fluctuations or otherwise), the Equity Trust may be
    required to sell a portion of its investments when it may be
    disadvantageous to do so.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to Section&nbsp;18 of the 1940 Act, it is unlawful for
the Equity Trust, as a registered closed-end investment company,
to issue any class of senior security, or to sell any senior
security that it issues, unless it can satisfy certain
&#147;asset coverage&#148; ratios. The asset coverage ratio with
respect to a senior security representing indebtedness means the
ratio of the value of the Equity Trust&#146;s total assets (less
all liabilities and indebtedness not represented by senior
securities) to the aggregate amount of the Equity Trust&#146;s
senior securities representing indebtedness. The asset coverage
ratio with respect to a senior security representing stock means
the ratio of the value of the Equity Trust&#146;s total assets
(less all liabilities and indebtedness not represented by senior
securities) to the aggregate amount of the Equity Trust&#146;s
senior securities representing indebtedness plus the aggregate
liquidation preference of the Equity Trust&#146;s outstanding
preferred shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If, as is the case with the Equity Trust, a registered
investment company&#146;s senior securities are equity
securities, such securities must have an asset coverage of at
least 200% immediately following its issuance. If a registered
investment company&#146;s senior securities represent
indebtedness, such indebtedness must have an asset coverage of
at least 300% immediately after their issuance. Subject to
certain exceptions, during any period following issuance that
the Equity Trust fails to satisfy these asset coverage ratios,
it will, among other things, be prohibited from declaring any
dividend or declaring any other distribution in respect of its
common stock except a dividend payable in Common Shares issued
by the Equity Trust. A registered investment company may, to the
extent permitted by the 1940 Act, segregate assets or
&#147;cover&#148; transactions in order to avoid the creation of
a class of senior security.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any rating received by the Equity Trust on its preferred shares,
or on any other senior security that it may issue, is an
assessment by the applicable rating agency of the capacity of
the Equity Trust to satisfy its obligations on its senior
securities. However, the &#147;Aaa&#148; rating on the Equity
Trust&#146;s Preferred Shares does not eliminate or mitigate the
risks associated with investing in the Equity Trust&#146;s
Shares. In addition, should a rating on the Equity Trust&#146;s
preferred shares be lowered or withdrawn by the relevant rating
agency, there may be an adverse effect on the market value of
the Equity Trust&#146;s preferred shares and the Equity Trust
may also be required to redeem all or part of its outstanding
preferred shares. If the Equity Trust were required to redeem
its preferred shares (in whole or part) as a result of the
change in or withdrawal of the rating, the Common Shares of the
Equity Trust would lose the benefits associated with a leveraged
capital structure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Voting Rights</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except as otherwise stated in this prospectus, specified in the
Equity Trust&#146;s Charter or resolved by the Board of
Directors or as otherwise required by applicable law, holders of
the preferred shares shall be entitled to one vote per share
held on each matter submitted to a vote of the stockholders of
the Equity Trust and will vote together with holders of Common
Shares and of any other preferred stock then outstanding as a
single class.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the election of the Equity Trust&#146;s
Directors, holders of the outstanding preferred shares, voting
together as a single class, will be entitled at all times to
elect two of the Equity Trust&#146;s Directors, and the
remaining Directors will be elected by holders of Common Shares
and holders of the preferred shares, voting together as a single
class. In addition, if (i)&nbsp;at any time dividends on
outstanding shares of the preferred shares are unpaid in an
amount equal to at least two full years&#146; dividends thereon
and sufficient cash or specified securities have not been
deposited with the applicable paying agent for the payment of
such accumulated dividends or (ii)&nbsp;at any time holders of
any other series of preferred stock are entitled to elect a
majority of the Directors of the Equity Trust under the 1940 Act
or the Articles&nbsp;Supplementary creating such shares, then
the number of Directors constituting the Board of Directors
automatically will be increased by the smallest number that,
when added to the two Directors elected exclusively by the
holders of the preferred shares as described above, would then
constitute a simple majority of the Board of Directors as so
increased by such smallest number. Such additional Directors
will be elected by the holders of the preferred shares, voting
together as a single class, at a special meeting of stockholders
which will be called as soon as practicable and will be held not
less than 10 or more than 20&nbsp;days after the mailing date of
the meeting notice. If the Equity Trust fails to send such
meeting notice or to call such a special meeting, the meeting
may be called by any preferred stockholder on like notice. The
terms of office of the persons who are Directors at the time of
that election will continue. If the Equity Trust thereafter
pays, or declares and sets apart for payment in full, all
dividends payable on all outstanding shares of preferred stock
for all past dividend periods, the additional voting rights of
the holders of the preferred stock as described above will
cease, and the terms of office of all of the additional
Directors elected by the holders of the preferred stock (but not
of the Directors with respect to whose election the holders of
Common Shares were entitled to vote or the two Directors the
holders of shares of preferred stock have the right to elect as
a separate class in any event) will terminate automatically.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
So long as preferred shares are outstanding, the Equity Trust
will not, without the affirmative vote of the holders of a
majority (as defined in the 1940 Act) of the shares of preferred
stock outstanding at the time, voting separately as one class,
amend, alter or repeal the provisions of the Equity Trust&#146;s
Charter, as amended and supplemented (including the
Articles&nbsp;Supplementary) whether by merger, consolidation or
otherwise, so as to materially adversely affect any of the
contract rights expressly set forth in the Charter with respect
to such shares of preferred stock. Also, to the extent permitted
under the 1940 Act, in the event shares of more than one series
of preferred stock are outstanding, the Equity Trust will not
approve any of the actions set forth in the preceding sentence
which materially adversely affects the contract rights expressly
set forth in the Charter with respect to such shares of a series
of preferred stock differently than those of a holder of shares
of any other series of preferred stock without the affirmative
vote of the holders of at least a majority of the shares of
preferred stock of each series materially adversely affected and
outstanding at such time (each such materially adversely
affected series voting separately as a class to the extent its
right are affected differently).
</DIV>

<P align="center" style="font-size: 10pt;">42

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the Charter and applicable provisions of Maryland law, the
affirmative vote of a majority of the votes entitled to be cast
by holders of outstanding shares of the preferred stock, voting
together as a single class, will be required to approve any plan
of reorganization adversely affecting the preferred stock. The
approval of two-thirds of each class, voting separately, of the
Equity Trust&#146;s outstanding voting stock must approve the
conversion of the Equity Trust from a closed-end to an open-end
investment company. The approval of a majority (as that term is
defined in the 1940 Act) of the Equity Trust&#146;s outstanding
preferred stock and a majority (as that term is defined in the
1940 Act) of the Equity Trust&#146;s outstanding voting
securities are required to approve any action requiring a vote
of security holders under Section&nbsp;13(a) of the 1940 Act
(other than a conversion of the Equity Trust from a closed-end
to open-end investment company), including, among other things,
changes in the Equity Trust&#146;s investment objectives or
changes in the investment restrictions described as fundamental
policies under &#147;Investment Objectives and Policies&#148;
and &#147;Investment Restrictions&#148; in the prospectus and
the SAI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For purposes of this paragraph, except as otherwise required
under the 1940 Act, the phrase &#147;vote of the holders of a
majority of the outstanding shares of preferred stock&#148;
means, in accordance with Section&nbsp;2(a)(42) of the 1940 Act,
the vote, at the annual or a special meeting of the stockholders
of the Equity Trust duly called (i)&nbsp;of 67% or more of the
shares of preferred stock present at such meeting, if the
holders of more than 50% of the outstanding shares of preferred
stock are present or represented by proxy or (ii)&nbsp;more than
50% of the outstanding shares of preferred stock, whichever is
less. The class vote of holders of shares of the preferred stock
described above in each case will be in addition to a separate
vote of the requisite percentage of Common Shares, and any other
preferred stock, voting together as a single class, that may be
necessary to authorize the action in question.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The calculation of the elements and definitions of certain terms
of the rating agency guidelines may be modified by action of the
Board of Directors without further action by the stockholders if
the Board of Directors determines that such modification is
necessary to prevent a reduction in rating of the shares of
preferred stock by Moody&#146;s and/or S&#38;P (or any other
rating agency then rating the preferred shares at the request of
the Equity Trust), as the case may be, or is in the best
interests of the holders of Common Shares and is not adverse to
the holders of preferred stock in view of advice to the Equity
Trust by the relevant rating agencies that such modification
would not adversely affect its then-current rating of the
preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The foregoing voting provisions will not apply to any preferred
shares if, at or prior to the time when the act with respect to
which such vote otherwise would be required will be effected,
such shares will have been redeemed or called for redemption and
sufficient cash or cash equivalents provided to the applicable
paying agent to effect such redemption. The holders of preferred
shares will have no preemptive rights or rights to cumulative
voting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='113'></A>
</DIV>

<!-- link1 "ANTI-TAKEOVER PROVISIONS OF THE CHARTER AND BY-LAWS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>ANTI-TAKEOVER PROVISIONS OF THE CHARTER AND BY-LAWS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust presently has provisions in its Charter and
By-Laws which could have the effect of limiting, in each case:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    the ability of other entities or persons to acquire control of
    the Equity Trust;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    the Equity Trust&#146;s freedom to engage in certain
    transactions;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    the ability of the Equity Trust&#146;s Directors or stockholders
    to amend the Charter and By-Laws or effectuate changes in its
    management.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These provisions may be regarded as &#147;anti-takeover&#148;
provisions. The Board of Directors of the Equity Trust is
divided into three classes, each having a term of three years.
Each year the term of one class of Directors will expire.
Accordingly, only those Directors in one class may be changed in
any one year, and it would require two years to change a
majority of the Board of Directors. Such system of electing
Directors may have the effect of maintaining the continuity of
management and, thus, make it more difficult for the
stockholders of the Equity Trust to change the majority of
Directors. A Director of the Equity Trust may be removed only
for cause and by a vote of a majority of the votes entitled to
be cast for the election of Directors. In addition, the
affirmative vote of the holders of two-thirds of the Equity
Trust&#146;s outstanding shares of each
</DIV>

<P align="center" style="font-size: 10pt;">43

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<DIV align="left" style="font-size: 10pt;">
class (voting separately) is required to authorize the
conversion of the Equity Trust from a closed-end to an open-end
investment company or generally to authorize any of the
following transactions:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    the merger or consolidation of the Equity Trust with any entity;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    the issuance of any securities of the Equity Trust for cash to
    any entity or person;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    the sale, lease or exchange of all or any substantial part of
    the assets of the Equity Trust to any entity or person (except
    assets having an aggregate fair market value of less than
    $1,000,000);&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    the sale, lease or exchange to the Equity Trust, in exchange for
    its securities, of any assets of any entity or person (except
    assets having an aggregate fair market value of less than
    $1,000,000);</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
if such corporation, person or entity is directly, or indirectly
through affiliates, the beneficial owner of more than 5% of the
outstanding shares of any class of capital stock of the Equity
Trust. However, such vote would not be required when, under
certain conditions, the Board of Directors approves the
transaction. Further, unless a higher percentage is provided for
under the Charter, the affirmative vote of a majority (as
defined in the 1940 Act) of the votes entitled to be cast by
holders of outstanding shares of the Equity Trust&#146;s
preferred stock, voting as a separate class, will be required to
approve any plan of reorganization adversely affecting such
stock or any action requiring a vote of security holders under
Section&nbsp;13(a) of the 1940 Act, including, among other
things, changing the Equity Trust&#146;s subclassification as a
closed-end investment company, changing the Equity Trust&#146;s
investment objectives or changing its fundamental investment
restrictions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Maryland corporations that are subject to the Securities
Exchange Act of 1934 and have at least three outside directors,
such as the Equity Trust, may by board resolution elect to
become subject to certain corporate governance provisions set
forth in the Maryland corporate law, even if such provisions are
inconsistent with the corporation&#146;s charter and by-laws.
Accordingly, notwithstanding its Charter or By-Laws, under
Maryland law the Equity Trust&#146;s Board of Directors may
elect by resolution to, among other things:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    require that special meetings of stockholders be called only at
    the request of stockholders entitled to cast at least a majority
    of the votes entitled to be cast at such meeting;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    reserve for the Board the right to fix the number of directors;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    provide that directors are subject to removal only by the vote
    of the holders of two-thirds of the stock entitled to
    vote;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    retain for the Board sole authority to fill vacancies created by
    the death, removal or resignation of a director, with any
    director so appointed to serve for the balance of the unexpired
    term rather than only until the next annual meeting of
    stockholders.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board may make any of the foregoing elections without
amending the Equity Trust&#146;s Charter or By-Laws and without
stockholder approval. Though a corporation&#146;s charter or a
resolution by its board may prohibit its directors from making
the elections set forth above, the Equity Trust&#146;s Board
currently is not prohibited from making any such elections.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The provisions of the Charter and By-Laws and Maryland law
described above could have the effect of depriving the owners of
shares in the Equity Trust of opportunities to sell their shares
at a premium over prevailing market prices, by discouraging a
third party from seeking to obtain control of the Equity Trust
in a tender offer or similar transaction. The overall effect of
these provisions is to render more difficult the accomplishment
of a merger or the assumption of control by a principal
stockholder. The Board of Directors has determined that the
foregoing voting requirements, which are generally greater than
the minimum requirements under Maryland law and the 1940 Act,
are in the best interests of the stockholders generally.
</DIV>

<P align="center" style="font-size: 10pt;">44

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<DIV align="left" style="font-size: 10pt;">
<A name='114'></A>
</DIV>

<!-- link1 "LEGAL PROCEEDINGS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>LEGAL PROCEEDINGS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The SEC, the New York Attorney General and officials of other
states have been conducting inquiries into, and bringing
enforcement and other proceedings regarding, trading abuses
involving open-end investment companies. Gabelli Funds has
received information requests and subpoenas from the SEC and the
New York Attorney General in connection with these inquiries.
Gabelli Funds and its affiliates have been complying with these
requests for documents and testimony and have implemented
additional compliance policies and procedures in response to
recent industry initiatives and their internal reviews of their
mutual fund practices in a variety of areas. Gabelli Funds has
not found any information that it believes would be material to
the ability of Gabelli Funds to fulfill its obligations under
the Advisory Agreement. More specifically, Gabelli Funds has not
found any evidence of facilitating trading in the Gabelli mutual
funds after the 4:00&nbsp;p.m. pricing time or of improper
short-term trading in these funds by its investment
professionals or senior executives. Gabelli Funds has found that
one investor, who had been engaged in short-term trading in one
of the Gabelli mutual funds (the prospectus of which did not at
that time impose limits on short-term trading) and who had
subsequently made an investment in a hedge fund managed by an
affiliate of Gabelli Funds, was banned from the mutual fund only
after certain other investors were banned. Gabelli Funds
believes that this relationship was not material to Gabelli
Funds. Inasmuch as both Gabelli Funds&#146; review of its mutual
fund practices and the governmental probes of the mutual fund
industry are ongoing, no assurance can be provided that
additional facts will not come to light in the course of its
review that may be material to Gabelli Funds or that Gabelli
Funds will not become the subject of enforcement or other
proceedings by the SEC or the New York Attorney General. In
light of the current turmoil in the mutual fund industry arising
from the late trading, improper market timing and employee
trading problems, there can be no assurance that any such action
could not have an adverse impact on Gabelli Funds or on its
ability to fulfill its obligations under the Advisory Agreement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>* * *</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust has received the following information from the
Adviser. The Adviser was informed by the staff of the SEC that
they may recommend to the SEC that the Adviser be held
accountable for the actions of two of the seven closed-end funds
managed by the Adviser relating to Section&nbsp;19(a) and
Rule&nbsp;19a-1 of the 1940&nbsp;Act. These provisions require
registered investment companies to provide written statements to
shareholders when a distribution is made from a source other
than net investment income. While the funds sent annual
statements containing the required information and
1099&nbsp;statements as required by the IRS, the funds did not
send written statements to shareholders with each distribution
in 2002 and 2003. The staff indicated that they may recommend to
the SEC that administrative remedies be sought, including a
monetary penalty. The closed-end funds changed their
notification procedure and the Adviser believes that all of the
funds are now in compliance. The staff&#146;s notice to the
Adviser did not relate to the Equity Trust. The Adviser does not
expect this action to have any effect on the Equity Trust or any
material effect on the Adviser.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='115'></A>
</DIV>

<!-- link1 "CUSTODIAN, TRANSFER AGENT, DIVIDEND-DISBURSING AGENT AND REGISTRAR" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CUSTODIAN, TRANSFER AGENT, DIVIDEND-DISBURSING AGENT AND
REGISTRAR</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mellon Trust of New England, N.A. (the &#147;Custodian&#148;),
located at 135 Santilli Highway, Everett, Massachusetts 02149,
serves as the Custodian of the Equity Trust&#146;s assets
pursuant to a custody agreement. Under the custody agreement,
the Custodian holds the Equity Trust&#146;s assets in compliance
with the 1940 Act. For its services, the Custodian will receive
a monthly fee based upon the average weekly value of the total
assets of the Equity Trust, plus certain charges for securities
transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Computershare Shareholder Services, Inc., located at 250 Royall
Street, Canton, Massachusetts 02021, serves as the Equity
Trust&#146;s dividend disbursing agent, as agent under the
Equity Trust&#146;s Plan and as transfer agent and registrar for
shares of the Equity Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='116'></A>
</DIV>

<!-- link1 "LEGAL MATTERS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>LEGAL MATTERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain legal matters will be passed on by Willkie
Farr&nbsp;&#38; Gallagher LLP, 787&nbsp;Seventh&nbsp;Avenue, New
York, New York, 10019, counsel to the Equity Trust. Counsel for
the Equity Trust will rely, as to certain
</DIV>

<P align="center" style="font-size: 10pt;">45

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<DIV align="left" style="font-size: 10pt;">
matters of Maryland law, on Venable LLP, 1800 Mercantile Bank
and Trust&nbsp;Building, 2 Hopkins Plaza, Baltimore, Maryland
21201.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='117'></A>
</DIV>

<!-- link1 "EXPERTS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXPERTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The unaudited financial statements of the Equity Trust as of
June&nbsp;30, 2005 have been incorporated by reference into the
SAI. The audited financial statements of the Equity Trust as of
December&nbsp;31, 2004 have also been incorporated by reference
into the SAI in reliance on the report of PricewaterhouseCoopers
LLP, independent registered public accounting firm, given on the
authority of that firm as experts in accounting and auditing.
PricewaterhouseCoopers LLP is located at 300&nbsp;Madison
Avenue, New York, New York 10017.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='118'></A>
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>FURTHER INFORMATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust is subject to the informational requirements of
the Securities Exchange Act of 1934 and in accordance therewith
files reports, proxy statements and other information with the
SEC. Such reports, proxy statements and other information filed
by the Equity Trust can be inspected and copied at public
reference facilities maintained by the SEC at
100&nbsp;F&nbsp;Street, NE, Washington,&nbsp;DC 20549; and
500&nbsp;West Madison Street, Chicago, Illinois 60661. The
Equity Trust&#146;s Common Shares are listed on the NYSE.
Reports, proxy statements and other information concerning the
Equity Trust can be inspected and copied at the Library of the
NYSE at 20&nbsp;Broad Street, New York, New York 10005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This Prospectus constitutes a part of a registration statement
on Form&nbsp;N-2 (together with the SAI and all the exhibits and
the appendix thereto, the &#147;Registration Statement&#148;)
filed by the Equity Trust with the SEC under the Securities Act
and the 1940 Act. This Prospectus and the SAI do not contain all
of the information set forth in the Registration Statement.
Reference is hereby made to the Registration Statement and
related exhibits for further information with respect to the
Equity Trust and the Common Shares offered hereby. Statements
contained herein concerning the provisions of documents are
necessarily summaries of such documents, and each statement is
qualified in its entirety by reference to the copy of the
applicable document filed with the SEC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
NO DEALER, SALESPERSON OR OTHER PERSON HAS BEEN AUTHORIZED TO
GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS NOT
CONTAINED IN THIS PROSPECTUS. IF GIVEN OR MADE, SUCH INFORMATION
OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN
AUTHORIZED BY THE EQUITY TRUST OR THE EQUITY TRUST&#146;S
INVESTMENT ADVISER. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER
TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITY
OTHER THAN THE COMMON SHARES OFFERED BY THIS PROSPECTUS, NOR
DOES IT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN
OFFER TO BUY COMMON SHARES BY ANYONE IN ANY JURISDICTION IN
WHICH SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.
</DIV>

<P align="center" style="font-size: 10pt;">46

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>TABLE OF CONTENTS OF SAI</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
An SAI dated as of September&nbsp;21, 2005, has been filed with
the SEC and is incorporated by reference in this prospectus. An
SAI may be obtained without charge by writing to the Equity
Trust at its address at One Corporate Center, Rye, New York
10580-1422 or by calling the Equity Trust toll-free at
(800)&nbsp;GABELLI (422-3554). The Table of Contents of the SAI
is as follows:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>OF</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>STATEMENT OF ADDITIONAL INFORMATION</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="91%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#200'>Investment Objectives and Policies</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-1</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#201'>Investment Restrictions</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-9</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#202'>Management of the Equity Trust</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-11</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#203'>Portfolio Manager Information</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-20</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#204'>Portfolio Transactions</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-22</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#205'>Automatic Dividend Reinvestment and
    Voluntary Cash Purchase Plan</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-24</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#206'>Taxation</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-25</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#207'>General Information</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-30</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#208'>Counsel and Independent Registered Public
    Accounting Firm</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-30</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#209'>Beneficial Owners</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-30</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#210'>Financial Statements</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-31</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#211'>Appendix&nbsp;A</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    A-1</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt;">47

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<DIV align="center" style="font-size: 2pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<IMG src="y11686fny90204l1.gif" alt="GABELLI LOGO">
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 30pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>THE GABELLI EQUITY TRUST INC.</B>
</DIV>

<DIV align="center" style="font-size: 14pt;">
<B>20,525,901&nbsp;SHARES OF COMMON STOCK</B>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>ISSUABLE UPON EXERCISE OF RIGHTS</B>
</DIV>

<DIV align="center" style="font-size: 14pt;">
<B>TO SUBSCRIBE TO SUCH SHARES</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 31%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PROSPECTUS</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 31%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
September&nbsp;21, 2005
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 4pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>STATEMENT OF ADDITIONAL INFORMATION</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Gabelli Equity Trust Inc. (the &#147;Equity Trust&#148;) is
a non-diversified, closed-end management investment company that
seeks long-term growth of capital and income by investing
primarily in a portfolio of equity securities selected by
Gabelli Funds, LLC, the investment adviser to the Equity Trust
(&#147;Gabelli Funds&#148;). The Equity Trust&#146;s primary
investment objective is to achieve long-term growth of capital
by investing primarily in a portfolio of equity securities
consisting of common stock, preferred stock, convertible or
exchangeable securities and warrants and rights to purchase such
securities selected by Gabelli Funds. Income is a secondary
investment objective.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This Statement of Additional Information (&#147;SAI&#148;) is
not a prospectus, but should be read in conjunction with the
Prospectus for the Equity Trust dated September&nbsp;21, 2005
(the &#147;Prospectus&#148;). Investors should obtain and read
the Prospectus prior to purchasing shares. A copy of the
Prospectus may be obtained, without charge, by calling the
Equity Trust at 800-GABELLI (800-422-3554) or
(914)&nbsp;921-5100. This SAI incorporates by reference the
entire Prospectus.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Prospectus and this SAI omit certain of the information
contained in the registration statement filed with the
Securities and Exchange Commission, Washington,&nbsp;D.C. The
registration statement may be obtained from the Securities and
Exchange Commission (the &#147;Commission&#148;) upon payment of
the fee prescribed, or inspected at the Commission&#146;s office
or via its website (www.sec.gov) at no charge.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This Statement of Additional Information is dated
September&nbsp;21, 2005.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt;">S-i

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>OF</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>STATEMENT OF ADDITIONAL INFORMATION</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Page</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#200'>Investment Objectives and Policies</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-1</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#201'>Investment Restrictions</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-9</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#202'>Management of the Equity Trust</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-11</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#203'>Portfolio Manager Information</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-20</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#204'>Portfolio Transactions</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-22</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#205'>Automatic Dividend Reinvestment and
    Voluntary Cash Purchase Plan</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-24</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#206'>Taxation</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-25</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#207'>General Information</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-30</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#208'>Counsel and Independent Registered Public
    Accounting Firm</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-30</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#209'>Beneficial Owners</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-30</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#210'>Financial Statements</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    S-31</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#211'>Appendix A</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    A-1</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">S-ii

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<DIV align="left" style="font-size: 10pt;">
<A name='200'></A>
</DIV>

<!-- link1 "INVESTMENT OBJECTIVES AND POLICIES" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INVESTMENT OBJECTIVES AND POLICIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Investment Objectives</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust&#146;s primary investment objective is to
achieve long-term growth of capital by investing primarily in a
portfolio of equity securities consisting of common stock,
preferred stock, convertible or exchangeable securities and
warrants and rights to purchase such securities selected by
Gabelli Funds. Income is a secondary investment objective. Under
normal market conditions, the Equity Trust will invest at least
80% of the value of its total assets in equity securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Special Situations.</I> Although the Equity Trust typically
invests in the securities of companies on the basis of
fundamental value, the Equity Trust from time to time may, as a
non-principal investment strategy, invest in companies that are
determined by Gabelli Funds to possess &#147;special
situation&#148; characteristics. In general, a special situation
company is a company whose securities are expected to increase
in value solely by reason of a development particularly or
uniquely applicable to the company. Developments that may create
special situations include, among others, a liquidation,
reorganization, recapitalization or merger, material litigation,
technological breakthrough or new management or management
policies. The principal risk associated with investments in
special situation companies is that the anticipated development
thought to create the special situation may not occur and the
investment therefore may not appreciate in value or may decline
in value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Options.</I> The Equity Trust may, subject to guidelines of
the Board of Directors, purchase or sell (i.e., write) options
on securities, securities indices and foreign currencies which
are listed on a national securities exchange or in the
U.S.&nbsp;over-the-counter (&#147;OTC&#148;) markets as a means
of achieving additional return or of hedging the value of the
Equity Trust&#146;s portfolio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust may write covered call options on common stocks
that it owns or has an immediate right to acquire through
conversion or exchange of other securities in an amount not to
exceed 25% of total assets or invest up to 10% of its total
assets in the purchase of put options on common stocks that the
Equity Trust owns or may acquire through the conversion or
exchange of other securities that it owns.
</DIV>

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A call option is a contract that gives the holder of the option
the right to buy from the writer (seller)&nbsp;of the call
option, in return for a premium paid, the security or currency
underlying the option at a specified exercise price at any time
during the term of the option. The writer of the call option has
the obligation, upon exercise of the option, to deliver the
underlying security or currency upon payment of the exercise
price during the option period.
</DIV>

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A put option is the reverse of a call option, giving the holder
the right, in return for a premium, to sell the underlying
security or currency to the writer, at a specified price, and
obligating the writer to purchase the underlying security or
currency from the holder at that price. The writer of the put,
who receives the premium, has the obligation to buy the
underlying security or currency upon exercise, at the exercise
price during the option period.
</DIV>

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If the Equity Trust has written an option, it may terminate its
obligation by effecting a closing purchase transaction. This is
accomplished by purchasing an option of the same series as the
option previously written. There can be no assurance that a
closing purchase transaction can be effected when the Equity
Trust so desires.
</DIV>

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An exchange traded option may be closed out only on an exchange
which provides a secondary market for an option of the same
series. Although the Equity Trust will generally purchase or
write only those options for which there appears to be an active
secondary market, there is no assurance that a liquid secondary
market on an exchange will exist for any particular option.
</DIV>

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A call option is &#147;covered&#148; if the Equity Trust owns
the underlying instrument covered by the call or has an absolute
and immediate right to acquire that instrument without
additional cash consideration upon conversion or exchange of
another instrument held in its portfolio (or for additional cash
consideration held in a segregated account by its custodian). A
call option is also covered if the Equity Trust holds a call on
the
</DIV>

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same instrument as the call written where the exercise price of
the call held is (i)&nbsp;equal to or less than the exercise
price of the call written or (ii)&nbsp;greater than the exercise
price of the call written if the difference is maintained by the
Equity Trust in cash, U.S.&nbsp;Government Obligations (as
defined under &#147;Investment Restrictions&#148;) or other
high-grade short-term obligations in a segregated account with
its custodian. A put option is &#147;covered&#148; if the Equity
Trust maintains cash or other high grade short-term obligations
with a value equal to the exercise price in a segregated account
with its custodian, or else holds a put on the same instrument
as the put written where the exercise price of the put held is
equal to or greater than the exercise price of the put written.
If the Equity Trust has written an option, it may terminate its
obligation by effecting a closing purchase transaction. This is
accomplished by purchasing an option of the same series as the
option previously written. However, once the Equity Trust has
been assigned an exercise notice, the Equity Trust will be
unable to effect a closing purchase transaction. Similarly, if
the Equity Trust is the holder of an option it may liquidate its
position by effecting a closing sale transaction. This is
accomplished by selling an option of the same series as the
option previously purchased. There can be no assurance that
either a closing purchase or sale transaction can be effected
when the Equity Trust so desires.
</DIV>

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The Equity Trust will realize a profit from a closing
transaction if the price of the transaction is less than the
premium received from writing the option or is more than the
premium paid to purchase the option; the Equity Trust will
realize a loss from a closing transaction if the price of the
transaction is more than the premium received from writing the
option or is less than the premium paid to purchase the option.
Since call option prices generally reflect increases in the
price of the underlying security, any loss resulting from the
repurchase of a call option may also be wholly or partially
offset by unrealized appreciation of the underlying security.
Other principal factors affecting the market value of a put or a
call option include supply and demand, interest rates, the
current market price and price volatility of the underlying
security and the time remaining until the expiration date. Gains
and losses on investments in options depend, in part, on the
ability of Gabelli Funds to predict correctly the effect of
these factors. The use of options cannot serve as a complete
hedge since the price movement of securities underlying the
options will not necessarily follow the price movements of the
portfolio securities subject to the hedge.
</DIV>

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An option position may be closed out only on an exchange which
provides a secondary market for an option of the same series or
in a private transaction. Although the Equity Trust will
generally purchase or write only those options for which there
appears to be an active secondary market, there is no assurance
that a liquid secondary market on an exchange will exist for any
particular option. In such event it might not be possible to
effect closing transactions in particular options, so that the
Equity Trust would have to exercise its options in order to
realize any profit and would incur brokerage commissions upon
the exercise of call options and upon the subsequent disposition
of underlying securities for the exercise of put options. If the
Equity Trust, as a covered call option writer, is unable to
effect a closing purchase transaction in a secondary market, it
will not be able to sell the underlying security until the
option expires or it delivers the underlying security upon
exercise or otherwise covers the position.
</DIV>

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In addition to options on securities, the Equity Trust may also
purchase and sell call and put options on securities indices. A
stock index reflects in a single number the market value of many
different stocks. Relative values are assigned to the stocks
included in an index and the index fluctuates with changes in
the market values of the stocks. The options give the holder the
right to receive a cash settlement during the term of the option
based on the difference between the exercise price and the value
of the index. By writing a put or call option on a securities
index, the Equity Trust is obligated, in return for the premium
received, to make delivery of this amount. The Equity Trust may
offset its position in the stock index options prior to
expiration by entering into a closing transaction on an exchange
or it may let the option expire unexercised.
</DIV>

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The Equity Trust may also buy or sell put and call options on
foreign currencies. A put option on a foreign currency gives the
purchaser of the option the right to sell a foreign currency at
the exercise price until the option expires. A call option on a
foreign currency gives the purchaser of the option the right to
purchase the currency at the exercise price until the option
expires. Currency options traded on U.S.&nbsp;or other exchanges
may be subject to position limits which may limit the ability of
the Equity Trust to reduce foreign currency risk using such
options. Over-the-counter options differ from exchange-traded
options in that they are two-
</DIV>

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party contracts with price and other terms negotiated between
buyer and seller and generally do not have as much market
liquidity as exchange-traded options. Over-the-counter options
are illiquid securities.
</DIV>

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Use of options on securities indices entails the risk that
trading in the options may be interrupted if trading in certain
securities included in the index is interrupted. The Equity
Trust will not purchase these options unless Gabelli Funds is
satisfied with the development, depth and liquidity of the
market and Gabelli Funds believes the options can be closed out.
</DIV>

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Price movements in the portfolio of the Equity Trust may not
correlate precisely with the movements in the level of an index
and, therefore, the use of options on indexes cannot serve as a
complete hedge and will depend, in part, on the ability of
Gabelli Funds to predict correctly movements in the direction of
the stock market generally or of a particular industry. Because
options on securities indexes require settlement in cash, the
Equity Trust may be forced to liquidate portfolio securities to
meet settlement obligations.
</DIV>

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Although Gabelli Funds will attempt to take appropriate measures
to minimize the risks relating to the Equity Trust&#146;s
writing of put and call options, there can be no assurance that
the Equity Trust will succeed in any option writing program it
undertakes.
</DIV>

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<I>Futures Contracts and Options on Futures.</I> A
&#147;sale&#148; of a futures contract (or a &#147;short&#148;
futures position) means the assumption of a contractual
obligation to deliver the assets underlying the contract at a
specified price at a specified future time. A
&#147;purchase&#148; of a futures contract (or a
&#147;long&#148; futures position) means the assumption of a
contractual obligation to acquire the assets underlying the
contract at a specified price at a specified future time.
Certain futures contracts, including stock and bond index
futures, are settled on a net cash payment basis rather than by
the sale and delivery of the assets underlying the futures
contracts. No consideration will be paid or received by the
Equity Trust upon the purchase or sale of a futures contract.
Initially, the Equity Trust will be required to deposit with the
broker an amount of cash or cash equivalents equal to
approximately 1% to 10% of the contract amount (this amount is
subject to change by the exchange or board of trade on which the
contract is traded and brokers or members of such board of trade
may charge a higher amount). This amount is known as
&#147;initial margin&#148; and is in the nature of a performance
bond or good faith deposit on the contract. Subsequent payments,
known as &#147;variation margin,&#148; to and from the broker
will be made daily as the price of the index or security
underlying the futures contracts fluctuates. At any time prior
to the expiration of a futures contract, the Equity Trust may
close the position by taking an opposite position, which will
operate to terminate its existing position in the contract.
</DIV>

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An option on a futures contract gives the purchaser the right,
in return for the premium paid, to assume a position in a
futures contract at a specified exercise price at any time prior
to the expiration of the option. Upon exercise of an option, the
delivery of the futures positions by the writer of the option to
the holder of the option will be accompanied by delivery of the
accumulated balance in the writer&#146;s futures margin account
attributable to that contract, which represents the amount by
which the market price of the futures contract exceeds, in the
case of a call, or is less than, in the case of a put, the
exercise price of the option on the futures contract. The
potential loss related to the purchase of an option on futures
contracts is limited to the premium paid for the option (plus
transaction costs). Because the value of the option purchased is
fixed at the point of sale, there are no daily cash payments by
the purchaser to reflect changes in the value of the underlying
contract; however, the value of the option does change daily and
that change would be reflected in the net assets of the Equity
Trust.
</DIV>

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Futures and options on futures entail certain risks, including
but not limited to the following: no assurance that futures
contracts or options on futures can be offset at favorable
prices, possible reduction of the yield of the Equity Trust due
to the use of hedging, possible reduction in value of both the
securities hedged and the hedging instrument, possible lack of
liquidity due to daily limits on price fluctuations, imperfect
correlation between the contracts and the securities being
hedged, losses from investing in futures transactions that are
potentially unlimited and the segregation requirements described
below.
</DIV>

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In the event the Equity Trust sells a put option or enters into
long futures contracts, under current interpretations of the
1940 Act an amount of cash, obligations of the
U.S.&nbsp;government and its agencies and instrumentalities or
other liquid securities equal to the market value of the
contract must be deposited and
</DIV>

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<DIV align="left" style="font-size: 10pt;">
maintained in a segregated account with the custodian of the
Equity Trust to collateralize the positions, thereby ensuring
that the use of the contract is unleveraged. For short positions
in futures contracts and sales of call options, the Equity Trust
may establish a segregated account (not with a futures
commission merchant or broker) with cash or liquid securities
that, when added to amounts deposited with a futures commission
merchant or a broker as margin, equal the market value of the
instruments or currency underlying the futures contract or call
option or the market price at which the short positions were
established.
</DIV>

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<I>Interest Rate Futures Contracts and Options Thereon.</I> The
Equity Trust may purchase or sell interest rate futures
contracts to take advantage of or to protect the Equity Trust
against fluctuations in interest rates affecting the value of
debt securities which the Equity Trust holds or intends to
acquire. For example, if interest rates are expected to
increase, the Equity Trust might sell futures contracts on debt
securities the values of which historically have a high degree
of positive correlation to the values of the Equity Trust&#146;s
portfolio securities. Such a sale would have an effect similar
to selling an equivalent value of the Equity Trust&#146;s
portfolio securities. If interest rates increase, the value of
the Equity Trust&#146;s portfolio securities will decline, but
the value of the futures contracts to the Equity Trust will
increase at approximately an equivalent rate, thereby keeping
the net asset value of the Equity Trust from declining as much
as it otherwise would have. The Equity Trust could accomplish
similar results by selling debt securities with longer
maturities and investing in debt securities with shorter
maturities when interest rates are expected to increase.
However, since the futures market may be more liquid than the
cash market, the use of futures contracts as a risk management
technique allows the Equity Trust to maintain a defensive
position without having to sell its portfolio securities.
</DIV>

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Similarly, the Equity Trust may purchase interest rate futures
contracts when it is expected that interest rates may decline.
The purchase of futures contracts for this purpose constitutes a
hedge against increases in the price of debt securities (caused
by declining interest rates) which the Equity Trust intends to
acquire. Since fluctuations in the value of appropriately
selected futures contracts should approximate that of the debt
securities that will be purchased, the Equity Trust can take
advantage of the anticipated rise in the cost of the debt
securities without actually buying them. Subsequently, the
Equity Trust can make its intended purchase of the debt
securities in the cash market and concurrently liquidate its
futures position. To the extent the Equity Trust enters into
futures contracts for this purpose, it will maintain, in a
segregated asset account with the Equity Trust&#146;s custodian,
assets sufficient to cover the Equity Trust&#146;s obligations
with respect to such futures contracts, which will consist of
cash or other liquid securities from its portfolio in an amount
equal to the difference between the fluctuating market value of
such futures contracts and the aggregate value of the initial
margin deposited by the Equity Trust with its custodian with
respect to such futures contracts.
</DIV>

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The purchase of a call option on a futures contract is similar
in some respects to the purchase of a call option on an
individual security. Depending on the pricing of the option
compared to either the price of the futures contract upon which
it is based or the price of the underlying debt securities, it
may or may not be less risky than ownership of the futures
contract or underlying debt securities. As with the purchase of
futures contracts, when the Equity Trust is not fully invested
it may purchase a call option on a futures contract to hedge
against a market advance due to declining interest rates.
</DIV>

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The purchase of a put option on a futures contract is similar to
the purchase of protective put options on portfolio securities.
The Equity Trust will purchase a put option on a futures
contract to hedge the Equity Trust&#146;s portfolio against the
risk of rising interest rates and consequent reduction in the
value of portfolio securities.
</DIV>

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The writing of a call option on a futures contract constitutes a
partial hedge against declining prices of the securities which
are deliverable upon exercise of the futures contract. If the
futures price at expiration of the option is below the exercise
price, the Equity Trust will retain the full amount of the
option premium, which provides a partial hedge against any
decline that may have occurred in the Equity Trust&#146;s
portfolio holdings. The writing of a put option on a futures
contract constitutes a partial hedge against increasing prices
of the securities that are deliverable upon exercise of the
futures contract. If the futures price at expiration of the
option is higher than the exercise price, the Equity Trust will
retain the full amount of the option premium, which provides a
partial hedge against any increase in the price of debt
securities that the Equity Trust intends
</DIV>

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to purchase. If a put or call option the Equity Trust has
written is exercised, the Equity Trust will incur a loss which
will be reduced by the amount of the premium it received.
Depending on the degree of correlation between changes in the
value of its portfolio securities and changes in the value of
its futures positions, the Equity Trust&#146;s losses from
options on futures it has written may to some extent be reduced
or increased by changes in the value of its portfolio securities.
</DIV>

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<I>Currency Futures and Options Thereon.</I> Generally, foreign
currency futures contracts and options thereon are similar to
the interest rate futures contracts and options thereon
discussed previously. By entering into currency futures and
options thereon, the Equity Trust will seek to establish the
rate at which it will be entitled to exchange U.S.&nbsp;dollars
for another currency at a future time. By selling currency
futures, the Equity Trust will seek to establish the number of
dollars it will receive at delivery for a certain amount of a
foreign currency. In this way, whenever the Equity Trust
anticipates a decline in the value of a foreign currency against
the U.S.&nbsp;dollar, the Equity Trust can attempt to &#147;lock
in&#148; the U.S.&nbsp;dollar value of some or all of the
securities held in its portfolio that are denominated in that
currency. By purchasing currency futures, the Equity Trust can
establish the number of dollars it will be required to pay for a
specified amount of a foreign currency in a future month. Thus,
if the Equity Trust intends to buy securities in the future and
expects the U.S.&nbsp;dollar to decline against the relevant
foreign currency during the period before the purchase is
effected, the Equity Trust can attempt to &#147;lock in&#148;
the price in U.S.&nbsp;dollars of the securities it intends to
acquire.
</DIV>

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The purchase of options on currency futures will allow the
Equity Trust, for the price of the premium and related
transaction costs it must pay for the option, to decide whether
or not to buy (in the case of a call option) or to sell (in the
case of a put option) a futures contract at a specified price at
any time during the period before the option expires. If Gabelli
Funds, in purchasing an option, has been correct in its judgment
concerning the direction in which the price of a foreign
currency would move as against the U.S.&nbsp;dollar, the Equity
Trust may exercise the option and thereby take a futures
position to hedge against the risk it had correctly anticipated
or close out the option position at a gain that will offset, to
some extent, currency exchange losses otherwise suffered by the
Equity Trust. If exchange rates move in a way the Equity Trust
did not anticipate, however, the Equity Trust will have incurred
the expense of the option without obtaining the expected
benefit; any such movement in exchange rates may also thereby
reduce, rather than enhance, the Equity Trust&#146;s profits on
its underlying securities transactions.
</DIV>

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<I>Securities Index Futures Contracts and Options Thereon.</I>
Purchases or sales of securities index futures contracts are
used for hedging purposes to attempt to protect the Equity
Trust&#146;s current or intended investments from broad
fluctuations in stock or bond prices. For example, the Equity
Trust may sell securities index futures contracts in
anticipation of or during a market decline to attempt to offset
the decrease in market value of the Equity Trust&#146;s
securities portfolio that might otherwise result. If such
decline occurs, the loss in value of portfolio securities may be
offset, in whole or part, by gains on the futures position. When
the Equity Trust is not fully invested in the securities market
and anticipates a significant market advance, it may purchase
securities index futures contracts in order to gain rapid market
exposure that may, in part or entirely, offset increases in the
cost of securities that the Equity Trust intends to purchase. As
such purchases are made, the corresponding positions in
securities index futures contracts will be closed out. The
Equity Trust may write put and call options on securities index
futures contracts for hedging purposes.
</DIV>

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<I>Limitations on the Purchase and Sale of Futures Contracts and
Options on Futures Contracts.</I> Gabelli Funds has claimed an
exclusion from the definition of the term &#147;commodity pool
operator&#148; under the Commodity Exchange Act and therefore is
not subject to registration under the Commodity Exchange Act.
Accordingly, the Equity Trust&#146;s investments in derivative
instruments described in the Prospectus and this SAI are not
limited by or subject to regulation under the Commodity Exchange
Act or otherwise regulated by the Commodity Futures Trading
Commission. Nevertheless, the Equity Trust&#146;s investment
restrictions place certain limitations and prohibitions on the
Equity Trust&#146;s ability to purchase or sell commodities or
commodity contracts. See &#147;Investment Restrictions.&#148;
Under these restrictions, the Equity Trust may not enter into
futures contracts or options on futures contracts unless
(i)&nbsp;the aggregate initial margins and premiums do not
exceed 5% of the fair market value of the Equity Trust&#146;s
total assets and (ii)&nbsp;the aggregate market value of the
Equity Trust&#146;s outstanding futures contracts and the market
value of the currencies and futures contracts subject to
outstanding options written by the Equity Trust, as the case may
be, do not exceed 50% of the market value of
</DIV>

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the Equity Trust&#146;s total assets. In addition, investment in
futures contracts and related options generally will be limited
by the rating agency guidelines applicable to any of the Equity
Trust&#146;s outstanding preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Forward Currency Exchange Contracts.</I> The Equity Trust may
engage in currency transactions other than on futures exchanges
to protect against future changes in the level of future
currency exchange rates. The Equity Trust will conduct such
currency exchange transactions either on a spot, i.e., cash,
basis at the rate then prevailing in the currency exchange
market or on a forward basis, by entering into forward contracts
to purchase or sell currency. A forward contract on foreign
currency involves an obligation to purchase or sell a specific
currency at a future date, which may be any fixed number of days
agreed upon by the parties from the date of the contract, at a
price set on the date of the contract. The risk of shifting of a
forward currency contract will be substantially the same as a
futures contract having similar terms. The Equity Trust&#146;s
dealing in forward currency exchange will be limited to hedging
involving either specific transactions or portfolio positions.
Transaction hedging is the purchase or sale of forward currency
with respect to specific receivables or payables of the Equity
Trust generally arising in connection with the purchase or sale
of its portfolio securities and accruals of interest receivable
and Equity Trust expenses. Position hedging is the forward sale
of currency with respect to portfolio security positions
denominated or quoted in that currency or in a currency bearing
a high degree of positive correlation to the value of that
currency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust may not position hedge with respect to a
particular currency for an amount greater than the aggregate
market value (determined at the time of making any sale of
forward currency) of the securities held in its portfolio
denominated or quoted in, or currently convertible into, such
currency. If the Equity Trust enters into a position hedging
transaction, the Equity Trust&#146;s custodian or subcustodian
will place cash or other liquid securities in a segregated
account of the Equity Trust in an amount equal to the value of
the Equity Trust&#146;s total assets committed to the
consummation of the given forward contract. If the value of the
securities placed in the segregated account declines, additional
cash or securities will be placed in the account so that the
value of the account will, at all times, equal the amount of the
Equity Trust&#146;s commitment with respect to the forward
contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At or before the maturity of a forward sale contract, the Equity
Trust may either sell a portfolio security and make delivery of
the currency, or retain the security and offset its contractual
obligations to deliver the currency by purchasing a second
contract pursuant to which the Equity Trust will obtain, on the
same maturity date, the same amount of the currency which it is
obligated to deliver. If the Equity Trust retains the portfolio
security and engages in an offsetting transaction, the Equity
Trust, at the time of execution of the offsetting transaction,
will incur a gain or a loss to the extent that movement has
occurred in forward contract prices. Should forward prices
decline during the period between the Equity Trust&#146;s
entering into a forward contract for the sale of a currency and
the date it enters into an offsetting contract for the purchase
of the currency, the Equity Trust will realize a gain to the
extent the price of the currency it has agreed to purchase is
less than the price of the currency it has agreed to sell.
Should forward prices increase, the Equity Trust will suffer a
loss to the extent the price of the currency it has agreed to
purchase exceeds the price of the currency it has agreed to
sell. Closing out forward purchase contracts involves similar
offsetting transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The cost to the Equity Trust of engaging in currency
transactions varies with factors such as the currency involved,
the length of the contract period and the market conditions then
prevailing. Because forward transactions in currency exchange
are usually conducted on a principal basis, no fees or
commissions are involved. The use of foreign currency contracts
does not eliminate fluctuations in the underlying prices of the
securities, but it does establish a rate of exchange that can be
achieved in the future. In addition, although forward currency
contracts limit the risk of loss due to a decline in the value
of the hedged currency, they also limit any potential gain that
might result if the value of the currency increases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a decline in any currency is generally anticipated by Gabelli
Funds, the Equity Trust may not be able to contract to sell the
currency at a price above the level to which the currency is
anticipated to decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Special Risk Considerations Relating to Futures and Options
Thereon.</I> The Equity Trust&#146;s ability to establish and
close out positions in futures contracts and options thereon
will be subject to the development and maintenance of liquid
markets. Although the Equity Trust generally will purchase or
sell only those futures contracts and options thereon for which
there appears to be a liquid market, there is no assurance that
</DIV>

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<DIV align="left" style="font-size: 10pt;">
a liquid market on an exchange will exist for any particular
futures contract or option thereon at any particular time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the event no liquid market exists for a particular futures
contract or option thereon in which the Equity Trust maintains a
position, it will not be possible to effect a closing
transaction in that contract or to do so at a satisfactory price
and the Equity Trust would have to either make or take delivery
under the futures contract or, in the case of a written option,
wait to sell the underlying securities until the option expires
or is exercised or, in the case of a purchased option, exercise
the option. In the case of a futures contract or an option
thereon which the Equity Trust has written and which the Equity
Trust is unable to close, the Equity Trust would be required to
maintain margin deposits on the futures contract or option
thereon and to make variation margin payments until the contract
is closed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Successful use of futures contracts and options thereon and
forward contracts by the Equity Trust is subject to the ability
of Gabelli Funds to predict correctly movements in the direction
of interest and foreign currency rates. If Gabelli Funds&#146;
expectations are not met, the Equity Trust will be in a worse
position than if a hedging strategy had not been pursued. For
example, if the Equity Trust has hedged against the possibility
of an increase in interest rates that would adversely affect the
price of securities in its portfolio and the price of such
securities increases instead, the Equity Trust will lose part or
all of the benefit of the increased value of its securities
because it will have offsetting losses in its futures positions.
In addition, in such situations, if the Equity Trust has
insufficient cash to meet daily variation margin requirements,
it may have to sell securities to meet the requirements. These
sales may be, but will not necessarily be, at increased prices
which reflect the rising market. The Equity Trust may have to
sell securities at a time when it is disadvantageous to do so.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Additional Risks of Foreign Options, Futures Contracts,
Options on Futures Contracts and Forward Contracts.</I> Options,
futures contracts and options thereon and forward contracts on
securities and currencies may be traded on foreign exchanges.
Such transactions may not be regulated as effectively as similar
transactions in the U.S., may not involve a clearing mechanism
and related guarantees, and are subject to the risk of
governmental actions affecting trading in, or the prices of,
foreign securities. The value of such positions also could be
adversely affected by (i)&nbsp;other complex foreign political,
legal and economic factors, (ii)&nbsp;lesser availability than
in the U.S.&nbsp;of data on which to make trading decisions,
(iii)&nbsp;delays in the Equity Trust&#146;s ability to act upon
economic events occurring in the foreign markets during
non-business hours in the U.S., (iv)&nbsp;the imposition of
different exercise and settlement terms and procedures and
margin requirements than in the U.S. and (v)&nbsp;lesser trading
volume.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Exchanges on which options, futures and options on futures are
traded may impose limits on the positions that the Equity Trust
may take in certain circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Risks of Currency Transactions.</I> Currency transactions are
also subject to risks different from those of other portfolio
transactions. Because currency control is of great importance to
the issuing governments and influences economic planning and
policy, purchases and sales of currency and related instruments
can be adversely affected by government exchange controls,
limitations or restrictions on repatriation of currency, and
manipulation, or exchange restrictions imposed by governments.
These forms of governmental action can result in losses to the
Equity Trust if it is unable to deliver or receive currency or
monies in settlement of obligations and could also cause hedges
it has entered into to be rendered useless, resulting in full
currency exposure as well as incurring transaction costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>When Issued, Delayed Delivery Securities and Forward
Commitments.</I> The Equity Trust may enter into forward
commitments for the purchase or sale of securities, including on
a &#147;when issued&#148; or &#147;delayed delivery&#148; basis,
in excess of customary settlement periods for the type of
security involved. In some cases, a forward commitment may be
conditioned upon the occurrence of a subsequent event, such as
approval and consummation of a merger, corporate reorganization
or debt restructuring, i.e., a when, as and if issued security.
When such transactions are negotiated, the price is fixed at the
time of the commitment, with payment and delivery taking place
in the future, generally a month or more after the date of the
commitment. While it will only enter into a forward commitment
with the intention of actually acquiring the security, the
Equity Trust may sell the security before the settlement date if
it is deemed advisable.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Securities purchased under a forward commitment are subject to
market fluctuation, and no interest (or dividends) accrues to
the Equity Trust prior to the settlement date. The Equity Trust
will segregate with its custodian cash or liquid securities in
an aggregate amount at least equal to the amount of its
outstanding forward commitments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Restricted and Illiquid Securities.</I> The Equity Trust may
invest up to a total of 10% of its net assets in securities that
are subject to restrictions on resale and securities the markets
for which are illiquid, including repurchase agreements with
more than seven days to maturity. Illiquid securities include
securities the disposition of which is subject to substantial
legal or contractual restrictions. The sale of illiquid
securities often requires more time and results in higher
brokerage charges or dealer discounts and other selling expenses
than does the sale of securities eligible for trading on
national securities exchanges or in the over-the-counter
markets. Restricted securities may sell at a price lower than
similar securities that are not subject to restrictions on
resale. Unseasoned issuers are companies (including
predecessors) that have operated less than three years. The
continued liquidity of such securities may not be as well
assured as that of publicly traded securities, and accordingly
the Board of Directors will monitor their liquidity. The Board
will review pertinent factors such as trading activity,
reliability of price information and trading patterns of
comparable securities in determining whether to treat any such
security as liquid for purposes of the foregoing 10% test. To
the extent the Board treats such securities as liquid, temporary
impairments to trading patterns of such securities may adversely
affect the Equity Trust&#146;s liquidity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In accordance with pronouncements of the Commission, the Equity
Trust may invest in restricted securities that can be traded
among qualified institutional buyers under Rule&nbsp;144A under
the Securities Act of 1933, as amended (the &#147;Securities
Act&#148;), without registration and may treat them as liquid
for purposes of the foregoing 10% test if such securities are
found to be liquid. The Board of Directors has adopted
guidelines and delegated to Gabelli Funds, subject to the
supervision of the Board of Directors, the function of
determining and monitoring the liquidity of particular
Rule&nbsp;144A securities.
</DIV>

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<DIV align="left" style="font-size: 10pt;">
<A name='201'></A>
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INVESTMENT RESTRICTIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust operates under the following restrictions that
constitute fundamental policies that, except as otherwise noted,
cannot be changed without the affirmative vote of the holders of
a majority of the outstanding voting securities of the Equity
Trust along with the affirmative vote of a majority of the votes
entitled to be cast by holders of outstanding preferred shares,
voting together as a single class. For purposes of the preferred
share voting rights described in the foregoing sentence, except
as otherwise required under the 1940 Act, the majority of the
outstanding preferred shares means, in accordance with
Section&nbsp;2(a)(42) of the 1940 Act, the vote of (i)&nbsp;of
67% or more of the preferred shares present at the shareholders
meeting called for such vote, if the holders of more than 50% of
the outstanding preferred shares are present or represented by
proxy or (ii)&nbsp;more than 50% of the outstanding preferred
shares, whichever is less. Except as otherwise noted, all
percentage limitations set forth below apply immediately after a
purchase or initial investment and any subsequent change in any
applicable percentage resulting from market fluctuations does
not require any action. The Equity Trust may not:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    1.&nbsp;Invest 25% or more of its total assets, taken at market
    value at the time of each investment, in the securities of
    issuers in any particular industry. This restriction does not
    apply to investments in direct obligations of the United States
    or by its agencies or instrumentalities that are entitled to the
    full faith and credit of the United States and that, other than
    United States Treasury Bills, provide for the periodic payment
    of interest and the full payment of principal at maturity or
    call for redemption (&#147;U.S.&nbsp;Government
    Obligations&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    2.&nbsp;Purchase securities of other investment companies,
    except in connection with a merger, consolidation, acquisition
    or reorganization, if more than 10% of the market value of the
    total assets of the Equity Trust would be invested in securities
    of other investment companies, more than 5% of the market value
    of the total assets of the Equity Trust would be invested in the
    securities of any one investment company or the Equity Trust
    would own more than 3% of any other investment company&#146;s
    securities, provided, however, this restriction shall not apply
    to securities of any investment company organized by the Equity
    Trust that are to be distributed pro rata as a dividend to its
    stockholders.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    3.&nbsp;Purchase or sell commodities or commodity contracts
    except that the Equity Trust may purchase or sell futures
    contracts and related options thereon if immediately thereafter
    (i)&nbsp;no more than 5% of its total assets are invested in
    margins and premiums and (ii)&nbsp;the aggregate market value of
    its outstanding futures contracts and market value of the
    currencies and futures contracts subject to outstanding options
    written by the Equity Trust do not exceed 50% of the market
    value of its total assets. The Equity Trust may not purchase or
    sell real estate, provided that the Equity Trust may invest in
    securities secured by real estate or interests therein or issued
    by companies which invest in real estate or interests therein.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    4.&nbsp;Purchase any securities on margin or make short sales,
    except that the Equity Trust may obtain such short-term credit
    as may be necessary for the clearance of purchases and sales of
    portfolio securities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    5.&nbsp;Make loans of money, except by the purchase of a portion
    of publicly distributed debt obligations in which the Equity
    Trust may invest, and repurchase agreements with respect to
    those obligations, consistent with its investment objectives and
    policies. The Equity Trust reserves the authority to make loans
    of its portfolio securities to financial intermediaries in an
    aggregate amount not exceeding 20% of its total assets. Any such
    loans may only be made upon approval of, and subject to any
    conditions imposed by, the Board of Directors of the Equity
    Trust. Because these loans would at all times be fully
    collateralized, the risk of loss in the event of default of the
    borrower should be slight.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    6.&nbsp;Borrow money, except that the Equity Trust may borrow
    from banks and other financial institutions on an unsecured
    basis, in an amount not exceeding 10% of its total assets, to
    finance the repurchase of its stock. The Equity Trust also may
    borrow money on a secured basis from banks as a temporary
    measure for extraordinary or emergency purposes. Temporary
    borrowings may not exceed 5% of the value of the total assets of
    the Equity Trust at the time the loan is made. The Equity Trust
    may pledge up to 10% of the lesser of the cost or value of its
    total assets to secure temporary borrowings. The Equity Trust
    will not borrow for investment purposes. Immediately after any
    borrowing, the Equity Trust</TD>
</TR>

</TABLE>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD align="left">
    will maintain asset coverage of not less than 300% with respect
    to all borrowings. While the borrowing of the Equity Trust
    exceeds 5% of its respective total assets, the Equity Trust will
    make no further purchases of securities, although this
    limitation will not apply to repurchase transactions as
    described above.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    7.&nbsp;Issue senior securities, except to the extent permitted
    by applicable law.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    8.&nbsp;Underwrite securities of other issuers except insofar as
    the Equity Trust may be deemed an underwriter under the
    Securities Act in selling portfolio securities; provided,
    however, this restriction shall not apply to securities of any
    investment company organized by the Equity Trust that are to be
    distributed pro rata as a dividend to its stockholders.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    9.&nbsp;Invest more than 10% of its total assets in illiquid
    securities, such as repurchase agreements with maturities in
    excess of seven days, or securities that at the time of purchase
    have legal or contractual restrictions on resale.</TD>
</TR>

</TABLE>

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<DIV align="left" style="font-size: 10pt;">
<A name='202'></A>
</DIV>

<!-- link1 "MANAGEMENT OF THE EQUITY TRUST" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>MANAGEMENT OF THE EQUITY TRUST</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Directors and Officers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The business and affairs of the Equity Trust are managed under
the direction of its Board of Directors, and the day-to-day
operations are conducted through or under the direction of its
officers.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The names and business addresses of the Directors and principal
officers of the Equity Trust are set forth in the following
table, together with their positions and their principal
occupations during the past five years and, in the case of the
Directors, their positions with certain other organizations and
companies. Directors who are &#147;interested persons&#148; of
the Equity Trust, as defined by the 1940 Act, are listed under
the caption &#147;Interested Directors.&#148;
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Directors</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Funds in</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Term of Office</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Complex</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name, Position(s),</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>and Length of</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Overseen by</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Principal Occupation(s)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Other Directorships</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Address and Age(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Time Served(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Director</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>During&nbsp;Past Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Held&nbsp;by&nbsp;Director</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Interested Directors:(3)</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mario J. Gabelli<BR>
    Director and Chief Investment Officer<BR>
    Age: 63</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Since 1986**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chairman of the Board, Chief Executive Officer of GAMCO
    Investors, Inc. and Chief Investment Officer&nbsp;&#151; Value
    Portfolios of Gabelli Funds, LLC and GAMCO Asset Management
    Inc.; Chairman and Chief Executive Officer of Lynch Interactive
    Corporation (multimedia and services)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director of Morgan Group Holdings, Inc. (holding company)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Karl Otto P&#246;hl<BR>
    Director<BR>
    Age: 75</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Since 1992*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Member of the Shareholder Committee of Sal. Oppenheim
    Jr.&nbsp;&#38; Cie, Zurich (private investment bank); Former
    President of the Deutsche Bundesbank and Chairman of its Central
    Bank Council (1980-1991)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director of GAMCO Investors, Inc. (investment management);
    Chairman, InCentive Capital AG and InCentive Asset Management AG
    (Zurich); Director of Sal. Oppenheim Jr.&nbsp;&#38; Cie, Zurich
    (private investment bank)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Non-Interested Directors:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Thomas E. Bratter<BR>
    Director<BR>
    Age: 66</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Since 1986**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director, President and Founder, The John Dewey Academy
    (residential college preparatory therapeutic high school)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    None</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt;">S-11

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Funds in</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Term of Office</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Complex</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name, Position(s),</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>and Length of</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Overseen by</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Principal Occupation(s)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Other Directorships</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Address and Age(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Time Served(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Director</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>During&nbsp;Past Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Held&nbsp;by&nbsp;Director</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Anthony J. Colavita(4)<BR>
    Director<BR>
    Age: 69</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Since 1999***</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Partner in the law firm of Anthony J. Colavita,&nbsp;P.C.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    None</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    James P. Conn(4)<BR>
    Director<BR>
    Age: 67</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Since 1989*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Former Managing Director and Chief Investment Officer of
    Financial Security Assurance Holdings Ltd. (insurance holding
    company) (1992-1998)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director of LaQuinta Corp. (hotels) and First Republic Bank
    (banking)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Frank J. Fahrenkopf,&nbsp;Jr.<BR>
    Director<BR>
    Age: 65</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Since 1998***</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    President and Chief Executive Officer of the American Gaming
    Association; Partner in the law firm of Hogan&nbsp;&#38;
    Hartson; Co-Chairman of the Commission on Presidential Debates;
    Former Chairman of the Republican National Committee</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director of First Republic Bank (banking)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Arthur V. Ferrara<BR>
    Director<BR>
    Age: 74</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Since 2001**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Former Chairman of the Board and Chief Executive Officer of The
    Guardian Life Insurance Company of America (1993-1995);
    President, Chief Executive Officer and a Director prior thereto</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director of The Guardian Life Insurance Company of America and 5
    mutual funds within the Guardian Fund Complex</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Anthony R. Pustorino<BR>
    Director<BR>
    Age: 80</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Since 1986*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Certified Public Accountant; Professor Emeritus, Pace University</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director of Lynch Corporation (diversified manufacturing)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Salvatore J. Zizza Director<BR>
    Age: 59</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Since 1986***</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chairman, Hallmark Electrical Supplies Corp.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director of<BR>
    Hollis Eden Pharmaceuticals and Earl Scheib, Inc. (automotive
    services)</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">S-12

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Officers</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Term of Office</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name, Position(s),</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>and Length of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Address and Age(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Time Served(2)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Principal Occupation(s) During Past Five Years</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Bruce N. Alpert<BR>
    President and Treasurer<BR>
    Age: 53</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top" nowrap>Since 1988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Vice President and Chief Operating Officer of Gabelli
    Funds, LLC since 1988. Director and President of Gabelli
    Advisers, Inc. since 1988. Officer of all the registered
    investment companies in the Gabelli fund complex.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Carter W. Austin<BR>
    Vice President<BR>
    Age: 38</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top" nowrap>Since 2000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President of Gabelli Funds, LLC since 1996.<BR>
    Vice President of Gabelli Dividend&nbsp;&#38; Income Trust since
    2003.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dawn M. Donato<BR>
    Assistant Vice President<BR>
    Age: 37</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top" nowrap>Since 2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Assistant Vice President of Gabelli Funds, LLC since 2004.
    Registered Representative for Gabelli&nbsp;&#38; Company, Inc.
    since 2002; Senior Sales Representative for Manulife Wood Logan,
    Inc. prior to 2002.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Peter D. Goldstein<BR>
    Chief Compliance Officer<BR>
    Age: 51</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top" nowrap>Since 2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director of Regulatory Affairs for GAMCO Investors, Inc. since
    2004. Chief Compliance Officer of all the registered investment
    companies in the Gabelli fund complex. Vice President of Goldman
    Sachs Asset Management from 2000-2004; Deputy General Counsel of
    GAMCO Investors, Inc. from 1998-2000.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    James E. McKee<BR>
    Secretary<BR>
    Age: 42</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top" nowrap>Since 1995</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President, General Counsel and Secretary of GAMCO
    Investors, Inc. since 1999 and GAMCO Asset Management Inc. since
    1993; Secretary of all the registered investment companies in
    the Gabelli fund complex.</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    (1)</TD>
    <TD></TD>
    <TD valign="top">
    Address: One Corporate Center, Rye, NY 10580-1422, unless
    otherwise noted.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (2)</TD>
    <TD></TD>
    <TD valign="top">
    The Equity Trust&#146;s Board of Directors is divided into three
    classes, each class having a term of three years. Each year the
    term of office of one class expires and the successor or
    successors elected to such class serve for a three-year term.
    The three-year term for each class is as follows:</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;*</TD>
    <TD></TD>
    <TD valign="top">
    Term continues until the Equity Trust&#146;s 2006 Annual Meeting
    of Shareholders and until their successors are duly elected and
    qualified.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    &nbsp;**</TD>
    <TD></TD>
    <TD valign="top">
    Term continues until the Equity Trust&#146;s 2007 Annual Meeting
    of Shareholders and until their successors are duly elected and
    qualified.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    ***</TD>
    <TD></TD>
    <TD valign="top">
    Term continues until the Equity Trust&#146;s 2008 Annual Meeting
    of Shareholders and until their successors are duly elected and
    qualified. </TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    Each officer will hold office for an indefinite term until the
    date he or she resigns or retires or until his or her successor
    is elected and qualified.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (3)</TD>
    <TD></TD>
    <TD valign="top">
    &#147;Interested person&#148; of the Equity Trust as defined in
    the 1940 Act. Messrs.&nbsp;Gabelli and P&#246;hl are each
    considered an &#147;interested person&#148; because of their
    affiliation with Gabelli Funds, the Equity Trust&#146;s
    investment adviser.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (4)</TD>
    <TD></TD>
    <TD valign="top">
    As a Director, elected solely by holders of the Equity
    Trust&#146;s preferred stock.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">S-13

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>BENEFICIAL OWNERSHIP OF SHARES HELD IN THE EQUITY TRUST
AND</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>THE FUND COMPLEX FOR EACH DIRECTOR</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Set forth in the table below is the dollar range of equity
securities in the Equity Trust beneficially owned by each
Director and the aggregate dollar range of equity securities in
the Gabelli Fund complex beneficially owned by each Director.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="33%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Aggregate Dollar Range of Equity</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Securities in all Registered</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Investment Companies</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Dollar Range of Equity Securities</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Overseen by Directors</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name of Director</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>in the Equity Trust *(1)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>in&nbsp;the Fund Complex*(1)(2)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interested Directors:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mario J. Gabelli</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>E</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>E</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Karl Otto P&#246;hl</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>A</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-Interested Directors:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dr. Thomas E. Bratter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>E</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>E</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Anthony J. Colavita**</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>C</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>E</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    James P. Conn</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>E</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>E</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Frank J. Fahrenkopf,&nbsp;Jr.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>B</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Arthur&nbsp;V. Ferrara</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>C</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>E</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Anthony R. Pustorino**</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>E</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>E</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Salvatore J. Zizza</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>E</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>E</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    &nbsp;*</TD>
    <TD></TD>
    <TD valign="top">
     Key to Dollar Ranges</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;None
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;$1-$10,000
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;$10,001-$50,000
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;$50,001-$100,000
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;Over
$100,000
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    All shares were valued as of December&nbsp;31, 2004.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    **</TD>
    <TD></TD>
    <TD valign="top">
    Messrs.&nbsp;Colavita and Pustorino each beneficially owned less
    than 1% of the common stock of Lynch Corporation each having a
    value of $14,500 as of December&nbsp;31, 2004. Lynch Corporation
    may be deemed to be controlled by Mario J. Gabelli and an
    affiliated person and in that event would be deemed to be under
    common control with Gabelli Funds.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (1)</TD>
    <TD></TD>
    <TD valign="top">
    This information has been furnished by each Director as of
    December&nbsp;31, 2004. &#147;Beneficial Ownership&#148; is
    determined in accordance with Section&nbsp;16a-1(a)(2) of the
    Securities Exchange Act of 1934, as amended (the
    &#147;1934&nbsp;Act&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (2)</TD>
    <TD></TD>
    <TD valign="top">
    The &#147;Fund&nbsp;Complex&#148; includes all the funds that
    are considered part of the same fund complex as the Equity Trust
    because they have common or affiliated investment advisers.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of December&nbsp;31, 2004, the Directors and Officers of the
Equity Trust as a group beneficially owned approximately 1.1% of
the outstanding shares of the Equity Trust.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Audit Committee</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The role of the Equity Trust&#146;s Audit Committee is to assist
the Board of Directors in its oversight of (i)&nbsp;the quality
and integrity of the Equity Trust&#146;s financial statement
reporting process and the independent audit and reviews therof;
(ii)&nbsp;the Equity Trust&#146;s accounting and financial
reporting policies and practices, its internal controls and, as
appropriate, the internal controls of certain of its service
providers; (iii)&nbsp;the Equity Trust&#146;s compliance with
legal and regulatory requirements; and (iv)&nbsp;the independent
registered public accounting firm&#146;s qualifications,
independence and performance. The Audit Committee also is
required to
</DIV>

<P align="center" style="font-size: 10pt;">S-14

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<DIV align="left" style="font-size: 10pt;">
prepare an audit committee report pursuant to the rules of the
Commission for inclusion in the Equity Trust&#146;s annual proxy
statement. The Audit Committee operates pursuant to the Audit
Committee Charter (the &#147;Charter&#148;) that was most
recently reviewed and approved by the Board of Directors on
February&nbsp;16, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the Charter, the Audit Committee is responsible for
conferring with the Equity Trust&#146;s independent registered
public accounting firm, reviewing annual financial statements,
approving the selection of the Equity Trust&#146;s independent
registered public accounting firm and overseeing the Equity
Trust&#146;s internal controls. The Charter also contains
provisions relating to the pre-approval by the Audit Committee
of certain non-audit services to be provided by
PricewaterhouseCoopers&nbsp;LLP (&#147;PwC&#148;) to the Equity
Trust and to Gabelli Funds and certain of its affiliates. The
Audit Committee advises the full Board with respect to
accounting, auditing and financial matters affecting the Equity
Trust. As set forth in the Charter, management is responsible
for maintaining appropriate systems for accounting and internal
control, and the Equity Trust&#146;s independent registered
public accounting firm is responsible for planning and carrying
out proper audits and reviews. The independent registered public
accounting firm is ultimately accountable to the Board of
Directors and to the Audit Committee, as representatives of
shareholders. The independent registered public accounting firm
for the Equity Trust reports directly to the Audit Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In performing its oversight function, at a meeting held on
February&nbsp;11, 2005, the Audit Committee reviewed and
discussed with management of the Equity Trust and PwC the
audited financial statements of the Equity Trust as of and for
the fiscal year ended December&nbsp;31, 2004, and discussed the
audit of such financial statements with the independent
registered public accounting firm.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the Audit Committee discussed with the independent
registered public accounting firm the accounting principles
applied by the Equity Trust and such other matters brought to
the attention of the Audit Committee by the independent
registered public accounting firm required by Statement of
Auditing Standards No.&nbsp;61, Communications with Audit
Committees, as currently modified or supplemented. The Audit
Committee also received from the independent registered public
accounting firm the written disclosures and statements required
by the Commission&#146;s independence rules, delineating
relationships between the independent registered public
accounting firm and the Equity Trust and discussed the impact
that any such relationships might have on the objectivity and
independence of the independent registered public accounting
firm.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As set forth above, and as more fully set forth in the Charter,
the Audit Committee has significant duties and powers in its
oversight role with respect to the Equity Trust&#146;s financial
reporting procedures, internal control systems and the
independent audit process.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee met twice during the fiscal year ended
December&nbsp;31, 2004. The Audit Committee is composed of three
of the Equity Trust&#146;s independent (as such term is defined
by the New York Stock Exchange, Inc.&#146;s listing standards
(the &#147;NYSE Listing Standards&#148;)) Directors, namely,
Messrs.&nbsp;Colavita, Pustorino and Zizza. Each member of the
Audit Committee has been determined by the Board of Directors to
be financially literate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Nominating Committee</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors has a Nominating Committee composed of
three independent (as such term is defined by the NYSE Listing
Standards) Directors, namely, Messrs.&nbsp;Colavita, Ferrara and
Zizza. The Nominating Committee met once during the fiscal year
ended December&nbsp;31, 2004. The Nominating Committee is
responsible for identifying and recommending to the Board of
Directors individuals believed to be qualified to become Board
members in the event that a position is vacated or created. The
Nominating Committee will consider Director candidates
recommended by shareholders. In considering candidates submitted
by shareholders, the Nominating Committee will take into
consideration the needs of the Board of Directors, the
qualifications of the candidate and the interests of
shareholders. The Nominating Committee may also take into
consideration the number of shares held by the recommending
shareholder and the length of time that such shares have been
held. To recommend a candidate for consideration by the
Nominating
</DIV>

<P align="center" style="font-size: 10pt;">S-15

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<DIV align="left" style="font-size: 10pt;">
Committee, a shareholder must submit the recommendation in
writing and must include the following information:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The name of the shareholder and evidence of the
    shareholder&#146;s ownership of shares of the Equity Trust,
    including the number of shares owned and the length of time of
    ownership;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The name of the candidate, the candidate&#146;s resume or a
    listing of his or her qualifications to be a Director of the
    Equity Trust and the person&#146;s consent to be named as a
    Director if selected by the Nominating Committee and nominated
    by the Board of Directors; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    If requested by the Nominating Committee, a completed and signed
    directors&#146; questionnaire.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The shareholder recommendation and information described above
must be sent to James E. McKee, the Equity Trust&#146;s
Secretary, c/o&nbsp;Gabelli Funds, LLC, and must be received by
the Secretary no less than 120&nbsp;days prior to the
anniversary date of the Equity Trust&#146;s most recent annual
meeting of shareholders or, if the meeting has moved by more
than 30&nbsp;days, a reasonable amount of time before the
meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Nominating Committee believes that the minimum
qualifications for serving as a Director of the Equity Trust are
that the individual demonstrate, by significant accomplishment
in his or her field, an ability to make a meaningful
contribution to the Board of Directors&#146; oversight of the
business and affairs of the Equity Trust and have an impeccable
record and reputation for honest and ethical conduct in both his
or her professional and personal activities. In addition, the
Nominating Committee examines a candidate&#146;s specific
experiences and skills, time availability in light of other
commitments, potential conflicts of interest and independence
from management and the Equity Trust. The Nominating Committee
also seeks to have the Board of Directors represent a diversity
of backgrounds and experience.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust&#146;s Nominating Committee adopted a charter
on May&nbsp;12, 2004, and amended the charter on
November&nbsp;17, 2004. The charter can be found on the Equity
Trust&#146;s website at www.gabelli.com.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Remuneration of Directors and Officers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust pays each Director who is not affiliated with
Gabelli Funds or its affiliates a fee of $12,000&nbsp;per year
plus $1,500&nbsp;per meeting attended in person and
$1,000&nbsp;per telephonic meeting or Committee meeting,
together with the Director&#146;s actual out-of-pocket expenses
relating to his attendance at such meetings. In addition,
effective in 2004, the Audit Committee Chairman receives an
annual fee of $3,000, the Proxy Voting Committee Chairman
receives an annual fee of $1,500 and the Nominating Committee
Chairman receives an annual fee of $2,000. The aggregate
remuneration (not including out-of-pocket expenses) paid by the
Equity Trust to such Directors during the year ended
December&nbsp;31, 2004 amounted to $140,500. During the year
ended December&nbsp;31, 2004, the Directors of the Equity Trust
met five times, one of which was a special meeting of Directors.
Each Director then serving in such capacity attended at least
75% of the meetings of Directors and of any Committee of which
he is a member.
</DIV>

<P align="center" style="font-size: 10pt;">S-16

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table shows certain compensation information for
the Directors and Officers of the Equity Trust for the fiscal
year ended December&nbsp;31, 2004. Officers who are employed by
Gabelli Funds receive no compensation or expense reimbursement
from the Equity Trust.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Compensation Table For The Fiscal Year Ended
December&nbsp;31, 2004</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="44%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Total Compensation From The</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Aggregate Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Equity Trust And Fund Complex</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name of Person And Position</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>From The Equity Trust</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Paid To Directors/Officers*</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Directors:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mario J. Gabelli, Chairman of the Board</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(24)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dr. Thomas E. Bratter, Director</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>18,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>32,500</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;&nbsp;(3)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Anthony J. Colavita, Director</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>23,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>216,835</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(36)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    James P. Conn, Director</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>18,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>83,210</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(13)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Frank J. Fahrenkopf,&nbsp;Jr., Director</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>18,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>53,500</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;&nbsp;(4)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Arthur V. Ferrara, Director</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>16,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>29,125</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;&nbsp;(9)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Karl Otto P&#246;hl, Director</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,085</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(34)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Anthony R. Pustorino, Director</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>24,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>150,000</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(17)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Salvatore J. Zizza, Director</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>21,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>137,179</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;(24)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Officers:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Carter W. Austin**, Vice President</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>93,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>276,667</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;&nbsp;(2)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dawn M. Donato, Assistant Vice President</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>69,583</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>69,583</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;&nbsp;(1)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Matthew A. Hultquist**, Vice President</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>64,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>64,782</TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;&nbsp;(1)</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>*&nbsp;</TD>
    <TD align="left">
    Represents the total compensation paid to such persons during
    the calendar year ended December&nbsp;31, 2004 by investment
    companies (including the Equity Trust) or portfolios thereof
    from which such person receives compensation that are considered
    part of the same fund complex as the Equity Trust because they
    have common or affiliated investment advisers. The number in
    parenthesis represents the number of such investment companies
    and portfolios.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>**&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Austin ceased to be a paid employee of the Equity Trust
    as of June&nbsp;30, 2004; however, he continues to serve as a
    Vice President of the Equity Trust. Mr.&nbsp;Hultquist resigned
    as an officer and employee of the Equity Trust effective as of
    December&nbsp;22, 2004.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Limitation of Officers&#146; and Directors&#146; Liability</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust&#146;s By-Laws provide that the Equity Trust,
to the fullest extent permitted by law, will indemnify its
current and former Directors and officers and may indemnify its
employees or agents against liabilities and expenses incurred in
connection with litigation in which they may be involved because
of their offices or association with the Equity Trust. The
By-Laws do not permit indemnification against any liability to
which such person would be subject by reason of willful
misfeasance, bad faith, gross negligence or reckless disregard
of the duties involved in the conduct of his office. Maryland
law does not permit indemnification of present or former
directors, officers, employees or agents in connection with any
proceeding to which they may be made a party by reason of their
service to the Equity Trust if (i)&nbsp;the act or omission of
such person or entity was material to the matter giving rise to
the proceeding and (a)&nbsp;was committed in bad faith; or
(b)&nbsp;was the result of active and deliberate dishonesty;
(ii)&nbsp;such person or entity actually received an improper
personal benefit in money, property or services; or
(iii)&nbsp;in the case of any criminal proceeding, such person
or entity had reasonable cause to believe that the act or
omission was unlawful.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under Maryland law, the Equity Trust is not permitted to
indemnify for an adverse judgment in a suit by or in the right
of the Equity Trust for a judgment of liability on the basis
that personal benefit was improperly received, unless in either
case a court orders indemnification and then only for expenses.
The termination of any proceeding by conviction or upon a plea
of nolo contendere or its equivalent or an entry of an order of
</DIV>

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<DIV align="left" style="font-size: 10pt;">
probation prior to judgment creates a rebuttable presumption
that the director, officer, employee or agent did not meet the
requisite standard of conduct required for permitted
indemnification. The termination of any proceeding by judgment,
order or settlement, however, does not create such a presumption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The By-Laws and Maryland law permit the Equity Trust to advance
reasonable expenses to current or former Directors, officers,
employees and agents upon the Equity Trust&#146;s receipt of a
written affirmation by such person or entity of its good faith
belief that it has met the standard of conduct necessary for
indemnification by the Equity Trust, and a written undertaking
by such person or entity (or on its behalf) to repay the amount
paid or reimbursed by the Equity Trust if it is ultimately
determined that such person or entity did not meet the requisite
standard of conduct. The By-Laws further require that one of the
following conditions must also be met to advance payment of
expenses: (i)&nbsp;the person or entity seeking indemnification
shall provide a security in the form and amount acceptable to
the Equity Trust for its undertaking; (ii)&nbsp;the Equity Trust
is insured against losses arising by reason of the advance;
(iii)&nbsp;approval by a majority of a quorum of the Directors
of the Equity Trust who are neither &#147;interested
persons&#148; as defined by Section&nbsp;2(a)(19) of the 1940
Act nor parties to the proceeding, or (iv)&nbsp;a written
opinion of independent legal counsel, based on a review of the
facts readily available to the Equity Trust at the time the
advance is proposed to be made, to the effect that there is
reason to believe that the person or entity seeking
indemnification will ultimately be found to be entitled to
indemnification.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Maryland law permits a Maryland corporation to include in its
charter a provision limiting the liability of its directors and
officers to the corporation and its stockholders for money
damages except for liability resulting from actual receipt of an
improper benefit or profit in money, property or services or
active and deliberate dishonesty established by final judgment
as being material to the cause of action. The Equity
Trust&#146;s Charter provides for such a limitation, except to
the extent such exemption is not permitted by the 1940 Act, as
amended from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Investment Advisory and Administrative Arrangements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Investment
Management.</I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gabelli Funds,
located at One Corporate Center, Rye, New York 10580-1422,
serves as the investment adviser to the Equity Trust pursuant to
an investment advisory agreement. Gabelli Funds was organized in
1999 and is the successor to Gabelli Funds, Inc., which was
organized in 1980. As of June 30, 2005, Gabelli Funds acted as
registered investment adviser to 28 management investment
companies with aggregate net assets of $12.8&nbsp;billion.
Gabelli Funds, together with other affiliated investment
advisers, had assets under management totaling approximately
$27.6&nbsp;billion as of June&nbsp;30, 2005. GAMCO Asset
Management Inc., an affiliate of Gabelli Funds, acts as
investment adviser for individuals, pension trusts, profit
sharing trusts and endowments, and as a sub-adviser to
management investment companies having aggregate assets of
$13.2&nbsp;billion under management as of June&nbsp;30, 2005.
Gabelli Fixed Income LLC, an affiliate of Gabelli Funds, acts as
investment adviser for The Treasurer&#146;s Fund and separate
accounts having aggregate assets of approximately
$400&nbsp;million under management as of June&nbsp;30, 2005.
Gabelli Advisers, Inc., an affiliate of Gabelli Funds, acts as
investment manager to the Westwood Funds having aggregate assets
of approximately $400&nbsp;million under management as of
June&nbsp;30, 2005.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gabelli Funds is a wholly-owned subsidiary of GAMCO Investors,
Inc., a New York corporation, whose Class&nbsp;A Common Stock is
traded on the NYSE under the symbol &#147;GBL.&#148;
Mr.&nbsp;Mario J. Gabelli may be deemed a &#147;controlling
person&#148; of Gabelli Funds on the basis of his ownership of a
majority of the stock of GGCP, Inc., which owns a majority of
the capital stock of GAMCO Investors, Inc.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gabelli Funds has sole investment discretion for the Equity
Trust&#146;s assets under the supervision of the Equity
Trust&#146;s Board of Directors and in accordance with the
Equity Trust&#146;s stated policies. Gabelli Funds will select
investments for the Equity Trust and will place purchase and
sale orders on behalf of the Equity Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Advisory Agreement.</I> Under the terms of the Equity
Trust&#146;s Investment Advisory Agreement (the &#147;Advisory
Agreement&#148;), Gabelli Funds manages the portfolio of the
Equity Trust in accordance with its stated investment objectives
and policies, makes investment decisions for the Equity Trust,
places orders to purchase and sell securities on behalf of the
Equity Trust and manages the Equity Trust&#146;s other business
and
</DIV>

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<DIV align="left" style="font-size: 10pt;">
affairs, all subject to the supervision and direction of its
Board of Directors. In addition, under the Advisory Agreement,
Gabelli Funds oversees the administration of all aspects of the
Equity Trust&#146;s business and affairs and provides, or
arranges for others to provide, at Gabelli Funds&#146; expense,
certain enumerated services, including maintaining the Equity
Trust&#146;s books and records, preparing reports to its
stockholders and supervising the calculation of the net asset
value of its stock. All expenses of computing the Equity
Trust&#146;s net asset value, including any equipment or
services obtained solely for the purpose of pricing shares of
stock or valuing the Equity Trust&#146;s investment portfolio,
will be an expense of the Equity Trust under the Advisory
Agreement unless Gabelli Funds voluntarily assumes
responsibility for such expense.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Advisory Agreement combines investment advisory and
administrative responsibilities in one agreement. For services
rendered by Gabelli Funds on behalf of the Equity Trust under
the Advisory Agreement, the Equity Trust pays Gabelli Funds a
fee computed weekly and paid monthly at the annual rate of 1.00%
of its average weekly net assets plus the liquidation value of
any outstanding preferred stock. Gabelli Funds has agreed to
reduce the management fee on the incremental assets attributable
to the preferred stock during the fiscal year if the total
return of the net asset value of Equity Trust Common Stock (the
&#147;Common Shares&#148;), including distributions and advisory
fee subject to reduction for that year, does not exceed the
stated dividend rate or corresponding swap rate of each
particular series of the preferred stock.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the years ended December&nbsp;31, 2002, December&nbsp;31,
2003, and December&nbsp;31, 2004, Gabelli Funds was paid
$9,835,224, $12,895,377, and $15,167,775, respectively, for
advisory and administrative services rendered to the Equity
Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Advisory Agreement provides that in the absence of willful
misfeasance, bad faith, gross negligence or reckless disregard
for its obligations and duties thereunder, Gabelli Funds is not
liable for any error or judgment or mistake of law or for any
loss suffered by the Equity Trust. As part of the Advisory
Agreement, the Equity Trust has agreed that the name
&#147;Gabelli&#148; is Gabelli Funds property, and that in the
event Gabelli Funds ceases to act as an investment adviser to
the Equity Trust, the Equity Trust will change its name to one
not including &#147;Gabelli.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to its terms, the Advisory Agreement will remain in
effect with respect to the Equity Trust from year to year if
approved annually (i)&nbsp;by the Equity Trust&#146;s Board of
Directors or by the holders of a majority of its outstanding
voting securities and (ii)&nbsp;by a majority of the Directors
who are not &#147;interested persons&#148; (as defined in the
1940 Act) of any party to the Advisory Agreement, by vote cast
in person at a meeting called for the purpose of voting on such
approval.
</DIV>

<P align="center" style="font-size: 10pt;">S-19

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<DIV align="left" style="font-size: 10pt;">
<A name='203'></A>
</DIV>

<!-- link1 "PORTFOLIO MANAGER INFORMATION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PORTFOLIO MANAGER INFORMATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Other Accounts&nbsp;Managed</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information below lists other accounts for which the Equity
Trust&#146;s portfolio managers were primarily responsible for
the day-to-day management during the fiscal year ended
December&nbsp;31, 2004.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accounts Managed</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total Assets</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>with Advisory Fee</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>with Advisory</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Based on</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fee Based on</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name of Portfolio Manager</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Types of Accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accounts&nbsp;Managed</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total Assets</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Performance</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Performance</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mario J. Gabelli</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Registered Investment Companies</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>$11.1B</TD>
    <TD align="left" valign="top" nowrap>*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>493.8M</TD>
    <TD align="left" valign="top" nowrap>*</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Other Pooled Investment Vehicles</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>$707.7M</TD>
    <TD align="left" valign="top" nowrap>*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>707.7M</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Other Accounts</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1,747</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>$9.9B</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>1.2B</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accounts Managed</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total Assets</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>with Advisory Fee</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>with Advisory</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Based on</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fee Based on</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name of Portfolio Manager</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Types of Accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accounts Managed</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total Assets</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Performance</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Performance</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Caesar M.P. Bryan</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Registered Investment Companies</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>$409.1M</TD>
    <TD align="left" valign="top" nowrap>*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Other Pooled Investment Vehicles</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>$26.9M</TD>
    <TD align="left" valign="top" nowrap>*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>26.9M</TD>
    <TD align="left" valign="top" nowrap>*</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Other Accounts</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>$1.6M</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    Represents the portion of assets for which the portfolio manager
    has primary responsibility in the accounts indicated. The
    accounts indicated may contain additional assets under the
    primary responsibility of other portfolio managers.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>Potential Conflicts of Interest.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Actual or apparent conflicts of interest may arise when the
portfolio manager also has day-to-day management
responsibilities with respect to one or more other accounts.
These potential conflicts include:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Allocation of Limited Time and Attention.</I> Because the
portfolio manager manages many accounts, he may not be able to
formulate as complete a strategy or identify equally attractive
investment opportunities for each of those accounts as if he
were to devote substantially more attention to the management of
only a few accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Allocation of Limited Investment Opportunities.</I> If the
portfolio manager identifies an investment opportunity that may
be suitable for multiple accounts, the Equity Trust may not be
able to take full advantage of that opportunity because the
opportunity may need to be allocated among all or many of these
accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Pursuit of Differing Strategies.</I> At times, the portfolio
manager may determine that an investment opportunity may be
appropriate for only some of the accounts for which he exercises
investment responsibility, or may decide that certain of these
accounts should take differing positions with respect to a
particular security. In these cases, the portfolio manager may
execute differing or opposite transactions for one or more
accounts which may affect the market price of the security or
the execution of the transactions, or both, to the detriment of
one or more of his accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Selection of Broker/ Dealers.</I> Because of the portfolio
manager&#146;s position with the distributor of funds affiliated
with the Equity Trust and his indirect majority ownership
interest in such distributor, he may have an incentive to use
the distributor to execute portfolio transactions for the Equity
Trust even if using the distributor is not in the best interest
of the Equity Trust.
</DIV>

<P align="center" style="font-size: 10pt;">S-20

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Variation in Compensation.</I> A conflict of interest may
arise where the financial or other benefits available to the
portfolio manager differ among the accounts that he manages. If
the structure of Gabelli Funds&#146; management fee or the
portfolio manager&#146;s compensation differs among accounts
(such as where certain funds or accounts pay higher management
fees or performance-based management fees), the portfolio
manager may be motivated to favor certain funds or accounts over
others. The portfolio manager also may be motivated to favor
funds or accounts in which he has an investment interest, or in
which Gabelli Funds or its affiliates have investment interests.
In Mr.&nbsp;Gabelli&#146;s case, Gabelli Funds&#146;
compensation (and expenses) for the Equity Trust is marginally
greater as a percentage of assets than for certain other
accounts and is less than for certain other accounts managed by
Mr.&nbsp;Gabelli, while his personal compensation structure
varies with near-term performance to a greater degree in certain
performance fee-based accounts than with non-performance-based
accounts. In addition, he has investment interests in several of
the funds managed by Gabelli Funds and its affiliates. Gabelli
Funds and the Equity Trust have adopted compliance policies and
procedures that are designed to address the various conflicts of
interest that may arise for Gabelli Funds and its staff members.
However, there is no guarantee that such policies and procedures
will be able to detect and address every situation in which an
actual or potential conflict may arise. In Mr.&nbsp;Bryan&#146;s
case, his compensation is not affected by changes in assets of
the Equity Trust while it is for other accounts that he manages.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Compensation Structure.</I> Mr.&nbsp;Gabelli receives
incentive-based variable compensation based on a percentage of
net revenues received by Gabelli Funds for managing the Equity
Trust. Net revenues are determined by deducting from gross
investment management fees the firm&#146;s expenses (other than
Mr.&nbsp;Gabelli&#146;s compensation) allocable to the Equity
Trust. Additionally, he receives similar incentive-based
variable compensation for managing other accounts within the
firm. This method of compensation is based on the premise that
superior long-term performance in managing a portfolio should be
rewarded with higher compensation as a result of growth of
assets through appreciation and net investment activity. One of
the other registered investment companies managed by
Mr.&nbsp;Gabelli has a performance (fulcrum)&nbsp;fee
arrangement for which his compensation is adjusted up or down
based on the performance of the investment company relative to
an index. Mr.&nbsp;Gabelli manages other accounts with
performance fees. Compensation for managing these accounts has
two components. One component of the fee is based on a
percentage of net revenues received by Gabelli Funds for
managing the account. The second component is based on absolute
performance of the account, with respect to which a percentage
of such performance fee is paid to Mr.&nbsp;Gabelli. As an
executive officer of Gabelli Funds&#146; parent company, GAMCO
Investors, Inc., Mr.&nbsp;Gabelli also receives ten percent of
the net operating profits of the parent company.
Mr.&nbsp;Gabelli receives no base salary, no annual bonus and no
stock options.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The compensation of other portfolio managers in the Gabelli
organization is structured to enable it to attract and retain
highly qualified professionals in a competitive environment.
Mr.&nbsp;Bryan receives a compensation package that includes a
minimum draw or base salary, equity-based incentive compensation
via awards of stock options, and incentive-based variable
compensation based on a percentage of net revenues received by
Gabelli Funds for managing certain accounts other than the
Equity Trust to the extent that the amount exceeds a minimum
level of compensation. Net revenues are determined by deducting
from gross investment management fees certain of the firm&#146;s
expenses (other than Mr.&nbsp;Bryan&#146;s compensation)
allocable to such other accounts. This method of compensation is
based on the premise that superior long-term performance in
managing a portfolio should be rewarded with higher compensation
as a result of growth of assets through appreciation and net
investment activity. Equity-based incentive compensation is
based on an evaluation by Gabelli Funds&#146; parent, GAMCO
Investors, Inc., of quantitative and qualitative performance
evaluation criteria.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Bryan&#146;s compensation for managing other pooled
investment accounts is based on a percentage of net revenues
received by Gabelli Funds for managing the account. Compensation
for managing accounts that have a performance-based fee will
have two components. One component is based on a percentage of
net revenues received by Gabelli Funds for managing the account.
The second component is based on absolute performance of the
account, with respect to which a percentage of the performance
fee is paid to the portfolio manager.
</DIV>

<P align="center" style="font-size: 10pt;">S-21

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Ownership of Shares in the Equity Trust.</I> Set forth in the
table below is the dollar range of equity securities in the
Equity Trust beneficially owned by Messrs. Gabelli and Bryan:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="63%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Dollar Range of Equity</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Securities Held in Equity Trust*</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Mario J. Gabelli</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>G</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Caesar M.P. Bryan</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>A</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    KEY TO DOLLAR RANGES&nbsp;&#151; INFORMATION AS OF
    DECEMBER&nbsp;31, 2004</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;None
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;$1&nbsp;-
$10,000
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;$10,001&nbsp;-
$50,000
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;$50,001&nbsp;-
$100,000
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;$100,001&nbsp;-
$500,000
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;$500,001&nbsp;-
$1,000,000
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;over $1,000,000
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Proxy Voting Procedures</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust has adopted the proxy voting procedures of
Gabelli Funds and has directed Gabelli Funds to vote all proxies
relating to the Equity Trust&#146;s voting securities in
accordance with such procedures. The proxy voting procedures are
set forth below as Appendix&nbsp;A to this SAI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Information on how proxies relating to the Equity Trust&#146;s
voting securities were voted by the Gabelli Funds during the
most recent 12&nbsp;month period ended June&nbsp;30th is
available, upon request, by calling (800)&nbsp;422-3554 or on
the website of the Commission at http://www.sec.gov.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Code of Ethics</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust and the Gabelli Funds have adopted a code of
ethics (the &#147;Code of Ethics&#148;) under Rule&nbsp;17j-1
under the 1940 Act. The Code of Ethics permits personnel,
subject to the Code of Ethics and its restrictive provisions, to
invest in securities, including securities that may be purchased
or held by the Equity Trust. The Code of Ethics can be reviewed
and copied at the Commission&#146;s Public Reference Room in
Washington,&nbsp;D.C. Information on the operations of the
Reference Room may be obtained by calling the Commission at
1-800-SEC-0330. The Code of Ethics is also available on the
EDGAR database on the Commission&#146;s web site at
http://www.sec.gov. Copies of the Code of Ethics may also be
obtained, after paying a duplicating fee, by electronic request
at the following e-mail address: publicinfo@sec.gov, or by
writing the Commission&#146;s Public Reference
Room&nbsp;Section, Washington,&nbsp;D.C. 20549-0102.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='204'></A>
</DIV>

<!-- link1 "PORTFOLIO TRANSACTIONS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PORTFOLIO TRANSACTIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to policies established by the Board of Directors of the
Equity Trust, Gabelli Funds is responsible for placing purchase
and sale orders and the allocation of brokerage on behalf of the
Equity Trust. Transactions in equity securities are in most
cases effected on U.S.&nbsp;stock exchanges and involve the
payment of negotiated brokerage commissions. In general, there
may be no stated commission in the case of securities traded in
over-the-counter markets, but the prices of those securities may
include undisclosed commissions or mark-ups. Principal
transactions are not entered into with affiliates of the Equity
Trust. However, Gabelli&nbsp;&#38; Company, Inc. may execute
transactions in the over-the-counter markets on an agency basis
and receive a stated commission therefrom. To the extent
consistent with applicable provisions of the 1940 Act and the
rules and exemptions adopted by the Commission thereunder, as
well as other regulatory requirements, the Equity Trust&#146;s
Board of Directors has determined that portfolio transactions
may be executed through Gabelli&nbsp;&#38; Company, Inc. and its
broker-dealer affiliates if, in the judgment of Gabelli Funds,
the use of those broker-dealers is likely to result in price and
execution at least as favorable as those of other qualified
broker-dealers
</DIV>

<P align="center" style="font-size: 10pt;">S-22

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<DIV align="left" style="font-size: 10pt;">
and if, in particular transactions, those broker-dealers charge
the Equity Trust a rate consistent with that charged to
comparable unaffiliated customers in similar transactions. The
Equity Trust has no obligations to deal with any broker or group
of brokers in executing transactions in portfolio securities. In
executing transactions, Gabelli Funds seeks to obtain the best
price and execution for the Equity Trust, taking into account
such factors as price, size of order, difficulty of execution
and operational facilities of the firm involved and the
firm&#146;s risk in positioning a block of securities. While
Gabelli Funds generally seeks reasonably competitive commission
rates, the Equity Trust does not necessarily pay the lowest
commission available.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to obtaining the best price and execution, brokers who
provide supplemental research, market and statistical
information to Gabelli Funds or its affiliates may receive
orders for transactions by the Equity Trust. The term
&#147;research, market and statistical information&#148;
includes advice as to the value of securities, and advisability
of investing in, purchasing or selling securities, and the
availability of securities or purchasers or sellers of
securities, and furnishing analyses and reports concerning
issues, industries, securities, economic factors and trends,
portfolio strategy and the performance of accounts. Information
so received will be in addition to and not in lieu of the
services required to be performed by Gabelli Funds under the
Advisory Agreement and the expenses of Gabelli Funds will not
necessarily be reduced as a result of the receipt of such
supplemental information. Such information may be useful to
Gabelli Funds and its affiliates in providing services to
clients other than the Equity Trust, and not all such
information is used by Gabelli Funds in connection with the
Equity Trust. Conversely, such information provided to Gabelli
Funds and its affiliates by brokers and dealers through whom
other clients of Gabelli Funds and its affiliates effect
securities transactions may be useful to Gabelli Funds in
providing services to the Equity Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Although investment decisions for the Equity Trust are made
independently from those of the other accounts managed by
Gabelli Funds and its affiliates, investments of the kind made
by the Equity Trust may also be made by those other accounts.
When the same securities are purchased for or sold by the Equity
Trust and any of such other accounts, it is the policy of
Gabelli Funds and its affiliates to allocate such purchases and
sales in a manner deemed fair and equitable to all of the
accounts, including the Equity Trust.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the fiscal years ended December&nbsp;31, 2002,
December&nbsp;31, 2003 and December&nbsp;31, 2004, the Equity
Trust paid a total of $487,920, $837,474 and $1,249,931
respectively, in brokerage commissions, of which
Gabelli&nbsp;&#38; Company, Inc. and its affiliates received,
$337,436, $426,925 and $835,136, respectively. The amount
received by Gabelli&nbsp;&#38; Company, Inc. and its affiliates
from the Equity Trust in respect of brokerage commissions for
the fiscal year ended December&nbsp;31, 2004 represented
approximately 66.81% of the aggregate dollar amount of brokerage
commissions paid by the Equity Trust for such period and
approximately 66.95% of the aggregate dollar amount of
transactions by the Equity Trust for such period. The brokerage
commissions paid by the Equity Trust for the fiscal year ended
December&nbsp;31, 2004 increased from the two prior fiscal
years, in part, because of the $125&nbsp;million in proceeds
from the offering of Series&nbsp;D Preferred Stock and
Series&nbsp;E Auction Rate Preferred Stock.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Repurchase of Shares</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of Common Shares do not, and will not, have the right to
require the Equity Trust to repurchase their stock. The Equity
Trust, however, may repurchase its Common Shares from time to
time as and when it deems such a repurchase advisable, subject
to maintaining required asset coverage for each series of
outstanding preferred stock. The Board of Directors has adopted
a policy to authorize such repurchases when Common Shares are
trading at a discount of 10% or more from net asset value. The
policy does not limit the amount of Common Shares that can be
repurchased. The percentage of the discount from net asset value
at which share repurchases will be authorized may be changed by
the Board of Directors. Pursuant to the 1940 Act, the Equity
Trust may repurchase its Common Shares on a securities exchange
(provided that the Equity Trust has informed its stockholders
within the preceding six months of its intention to repurchase
such stock) or pursuant to tenders or as otherwise permitted in
accordance with Rule&nbsp;23c-1 under the 1940 Act. Under that
Rule, certain conditions must be met regarding, among other
things, distribution of net income for the preceding fiscal
year, status of the seller, price paid, brokerage commissions,
prior notice to stockholders of an
</DIV>

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<DIV align="left" style="font-size: 10pt;">
intention to purchase stock and purchasing in a manner and on a
basis that does not discriminate unfairly against the other
stockholders through their interest in the Equity Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
When the Equity Trust repurchases its Common Shares for a price
below net asset value, the net asset value of the Common Shares
that remains outstanding will be enhanced, but this does not
necessarily mean that the market price of the outstanding Common
Shares will be affected, either positively or negatively. During
the year ended December&nbsp;31, 2004, and the six months ended
June&nbsp;30, 2005, the Equity Trust did not repurchase any
shares of its Common Shares in the open market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Portfolio Turnover</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust does not engage in the trading of securities
for the purpose of realizing short-term profits, but adjusts its
portfolio as it deems advisable in view of prevailing or
anticipated market conditions to accomplish its investment
objective. A high rate of portfolio turnover involves
correspondingly greater brokerage commission expenses than a
lower rate, which expenses must be borne by the Equity Trust and
its shareholders. High portfolio turnover may also result in the
realization of substantial net short-term capital gains and any
distributions resulting from such gains will be taxable at
ordinary income rates for U.S.&nbsp;federal income tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='205'></A>
</DIV>

<!-- link1 "AUTOMATIC DIVIDEND REINVESTMENT AND VOLUNTARY CASH PURCHASE PLAN" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AUTOMATIC DIVIDEND REINVESTMENT AND VOLUNTARY CASH PURCHASE
PLAN</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the Equity Trust&#146;s Automatic Dividend Reinvestment
and Voluntary Cash Purchase Plan (the &#147;Plan&#148;), a
stockholder whose Common Shares are registered in his own name
will have all distributions reinvested automatically by
Computershare Shareholder Services, Inc.
(&#147;Computershare&#148;), which is agent under the Plan,
unless the stockholder elects to receive cash. Distributions
with respect to shares registered in the name of a broker-dealer
or other nominee (that is, in &#147;street name&#148;) will be
reinvested by the broker or nominee in additional shares under
the Plan, unless the service is not provided by the broker or
nominee or the stockholder elects to receive distributions in
cash. Investors who own Common Shares registered in street name
should consult their broker-dealers for details regarding
reinvestment. All distributions to investors who do not
participate in the Plan will be paid by check mailed directly to
the record holder by Computershare as dividend disbursing agent.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the Plan, whenever the market price of the Common Shares
is equal to or exceeds net asset value at the time shares are
valued for purposes of determining the number of shares
equivalent to the cash dividend or capital gains distribution,
participants in the Plan are issued Common Shares, valued at the
greater of (i)&nbsp;the net asset value as most recently
determined or (ii)&nbsp;95% of the then-current market price of
the Common Shares. The valuation date is the dividend or
distribution payment date or, if that date is not a NYSE trading
day, the next preceding trading day. If the net asset value of
the Common Shares at the time of valuation exceeds the market
price of the Common Shares, participants will receive Common
Shares from the Equity Trust, valued at market price. If the
Equity Trust should declare a dividend or capital gains
distribution payable only in cash, Computershare will purchase
the Common Shares for such Plan in the open market, on the NYSE
or elsewhere, for the participants&#146; accounts, except that
Computershare will endeavor to terminate purchases in the open
market and cause the Equity Trust to issue Common Shares at the
greater of net asset value or 95% of market value if, following
the commencement of such purchases, the market value of the
Common Shares exceeds net asset value.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Participants in the Plan have the option of making additional
cash payments to Computershare, semi-monthly, for investment in
the Common Shares as applicable. Such payments may be made in
any amount from $250 to $10,000. Computershare will use all
funds received from participants to purchase Common Shares in
the open market on or about the 1st and 15th of each month.
Computershare will charge each stockholder who participates
$0.75, plus a pro rata share of the brokerage commissions.
Brokerage charges for such purchases are expected to be less
than the usual brokerage charge for such transactions. It is
suggested that participants send voluntary cash payments to
Computershare in a manner that ensures that Computershare will
receive these payments approximately 10&nbsp;days before the 1st
and 15th of the month. A participant
</DIV>

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<DIV align="left" style="font-size: 10pt;">
may without charge withdraw a voluntary cash payment by written
notice, if the notice is received by Computershare at least
48&nbsp;hours before such payment is to be invested.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Computershare maintains all stockholder accounts in the Plan and
furnishes written confirmations of all transactions in the
account, including information needed by stockholders for
personal and tax records. Common Shares in the account of each
Plan participant will be held by Computershare in
noncertificated form in the name of the participant. A Plan
participant may send its share certificates to Computershare so
that the shares represented by such certificates will be held by
Computershare in the participant&#146;s stockholder account
under the Plan. In the case of stockholders such as banks,
brokers or nominees, which hold shares for others who are the
beneficial owners, Computershare will administer the Plan on the
basis of the number of Common Shares certified from time to time
by the stockholder as representing the total amount registered
in the stockholder&#146;s name and held for the account of
beneficial owners who participate in the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Experience under the Plan may indicate that changes are
desirable. Accordingly, the Equity Trust reserves the right to
amend or terminate its Plan as applied to any voluntary cash
payments made and any dividend or distribution paid subsequent
to written notice of the change sent to the members of such Plan
at least 90&nbsp;days before the record date for such dividend
or distribution. The Plan also may be amended or terminated by
Computershare on at least 90&nbsp;days&#146; written notice to
the participants in such Plan. All correspondence concerning the
Plan should be directed to Computershare at P.O. Box&nbsp;43010,
Providence, RI 02940-3010.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='206'></A>
</DIV>

<!-- link1 "TAXATION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>TAXATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following discussion is a brief summary of certain United
States federal income tax considerations affecting the Equity
Trust and its shareholders. No attempt is made to present a
detailed explanation of all federal, state, local and foreign
tax concerns affecting the Equity Trust and its Shareholders
(including Shareholders who own large positions in the Equity
Trust), and the discussions set forth here and in the Prospectus
do not constitute tax advice. Investors are urged to consult
their own tax advisers with any specific questions relating to
federal, state, local and foreign taxes. The discussion reflects
applicable tax laws of the United States as of the date of this
SAI, which tax laws may be changed or subject to new
interpretations by the courts or the Internal Revenue Service
(the &#147;IRS&#148;) retroactively or prospectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Taxation of the Equity Trust</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust has qualified as and intends to continue to
qualify as a regulated investment company (a &#147;RIC&#148;)
under Subchapter&nbsp;M of the Internal Revenue Code of 1986, as
amended (the &#147;Code&#148;). If it so qualifies, the Equity
Trust will not be subject to U.S.&nbsp;federal income tax on the
portion of its investment company taxable income (as defined in
the Code) without regard to the deduction for dividends paid and
on its net capital gain (i.e., the excess of its net realized
long-term capital gain over its net realized short-term capital
loss), if any, which it distributes to its stockholders in each
taxable year, provided that an amount equal to at least 90% of
the sum of its investment company taxable income and any net
tax-exempt interest income for the taxable year is distributed
to its stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Qualification as a RIC requires, among other things, that the
Equity Trust: (i)&nbsp;derive at least 90% of its gross income
in each taxable year from dividends, interest, payments with
respect to securities loans, gains from the sale or other
disposition of stock, securities or foreign currencies, other
income (including gains from options, futures or forward
contracts) derived with respect to its business of investing in
stock, securities or currencies and net income derived from an
interest in &#147;qualified publicly traded partnerships&#148;
(as defined in the Code) and (ii)&nbsp;diversify its holdings so
that, at the end of each quarter of each taxable year, subject
to certain exceptions, (a)&nbsp;at least 50% of the market value
of the Equity Trust&#146;s assets is represented by cash, cash
items, U.S.&nbsp;Government Obligations, securities of other
RICs and other securities with such other securities limited, in
respect of any one issuer, to an amount not greater than 5% of
the value of the Equity Trust&#146;s assets and 10% of the
outstanding voting securities of such issuer, and (b)&nbsp;not
more than 25% of the value of its assets is invested in the
securities (other than U.S.&nbsp;Government Obligations or the
securities of other RICs) of any one issuer, or any two or more
issuers that the Equity Trust controls and which are
</DIV>

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<DIV align="left" style="font-size: 10pt;">
determined to be engaged in the same or similar trades or
businesses or related trades or businesses or in the securities
of one or more qualified publicly traded partnerships (as
defined in the Code).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the Equity Trust were unable to satisfy the 90% distribution
requirement or otherwise were to fail to qualify as a RIC in any
year, it would be taxed in the same manner as an ordinary
corporation and distributions to the Equity Trust&#146;s
stockholders would not be deductible by the Equity Trust in
computing its taxable income. To qualify again to be taxed as a
RIC in a subsequent year, the Equity Trust would be required to
distribute to preferred stockholders and common stockholders its
earnings and profits attributable to non-RIC years reduced by an
interest charge on 50% of such earnings and profits payable by
the Equity Trust to the IRS. In addition, if the Equity Trust
failed to qualify as a RIC for a period greater than two taxable
years, then the Equity Trust would be required to recognize and
pay tax on any net built-in gains (the excess of aggregate
gains, including items of income, over aggregate losses that
would have been realized if the Equity Trust had been
liquidated) or, alternatively, to elect to be subject to
taxation on such built-in gains recognized for a period of ten
years, in order to qualify as a RIC in a subsequent year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the Code, amounts not distributed by a RIC on a timely
basis in accordance with a calendar year distribution
requirement are subject to a 4% excise tax. To avoid the tax,
the Equity Trust must distribute during each calendar year, an
amount at least equal to the sum of (i)&nbsp;98% of its ordinary
income for the calendar year, (ii)&nbsp;98% of its capital gain
net income (both long-term and short-term) for the one year
period ending on October&nbsp;31 of such year (unless an
election is made to use the Equity Trust&#146;s fiscal year),
and (iii)&nbsp;all ordinary income and capital gain net income
for previous years that were not previously distributed or
subject to tax under Subchapter M of the Code. A distribution
will be treated as paid during the calendar year if it is paid
during the calendar year or declared by the Equity Trust in
October, November or December of the year, payable to
stockholders of record on a date during such a month and paid by
the Equity Trust during January of the following year. Any such
distributions paid during January of the following year will be
deemed to be received on December&nbsp;31 of the year the
distributions are declared, rather than when the distributions
are received. While the Equity Trust intends to distribute its
ordinary income and capital gain net income in the manner
necessary to minimize imposition of the 4% excise tax, there can
be no assurance that sufficient amounts of the Equity
Trust&#146;s ordinary income and capital gain net income will be
distributed to avoid entirely the imposition of the tax. In such
event, the Equity Trust will be liable for the tax only on the
amount by which it does not meet the foregoing distribution
requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gain or loss on the sales of securities by the Equity Trust will
be long-term capital gain or loss if the securities have been
held by the Equity Trust for more than one year. Gain or loss on
the sale of securities held for one year or less will be
short-term capital gain or loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Foreign currency gain or loss on non-U.S.&nbsp;dollar
denominated bonds and other similar debt instruments and on any
non-U.S.&nbsp;dollar denominated futures contracts, options and
forward contracts that are not section&nbsp;1256 contracts (as
defined below) generally will be treated as ordinary income and
loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Investment by the Equity Trust in certain &#147;passive foreign
investment companies&#148; (&#147;PFICs&#148;) could subject the
Equity Trust to federal income tax (including interest charges)
on certain distributions or dispositions with respect to those
investments which cannot be eliminated by making distributions
to stockholders. Elections may be available to the Equity Trust
to mitigate the effect of this tax but such elections generally
accelerate the recognition of income without the receipt of
cash. Dividends paid by PFICs will not qualify for the reduced
tax rates discussed below under &#147;Taxation of
Stockholders.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust may invest in debt obligations purchased at a
discount with the result that the Equity Trust may be required
to accrue income for federal income tax purposes before amounts
due under the obligations are paid. The Equity Trust may also
invest in securities rated in the medium to lower rating
categories of nationally recognized rating organizations, and in
unrated securities (&#147;high yield securities&#148;). A
portion of the interest payments on such high yield securities
may be treated as dividends for federal income tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a result of investing in stock of PFICs or securities
purchased at a discount or any other investment that produces
income that is not matched by a corresponding cash distribution
to the Equity Trust, the Equity
</DIV>

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<DIV align="left" style="font-size: 10pt;">
Trust could be required to include, in current income, income it
has not yet received. Any such income would be treated as income
earned by the Equity Trust and therefore would be subject to the
distribution requirements of the Code. This might prevent the
Equity Trust from distributing 90% of its investment company
taxable income as is required in order to avoid Equity
Trust-level federal income taxation on all of its income, or
might prevent the Equity Trust from distributing enough ordinary
income and capital gain net income to avoid completely the
imposition of the excise tax. To avoid this result, the Equity
Trust may be required to borrow money or dispose of other
securities to be able to make distributions to its stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the Equity Trust does not meet the asset coverage
requirements of the 1940 Act and the
Articles&nbsp;Supplementary, the Equity Trust will be required
to suspend distributions to the holders of the common stock
until the asset coverage is restored. Such a suspension of
distributions might prevent the Equity Trust from distributing
90% of its investment company taxable income as is required in
order to avoid Equity Trust-level federal income taxation on all
of its income, or might prevent the Equity Trust from
distributing enough income and capital gain net income to avoid
completely imposition of the excise tax. Upon any failure to
meet the asset coverage requirements of the 1940 Act or the
Articles&nbsp;Supplementary, the Equity Trust may, and in
certain circumstances will be required to partially redeem
shares of Preferred Stock in order to restore the requisite
asset coverage and avoid the adverse consequences to the Equity
Trust and its stockholders of failing to qualify as a RIC. If
asset coverage were restored, the Equity Trust would again be
able to pay dividends and would generally be able to avoid
Equity Trust-level federal income taxation on the income that it
distributes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Hedging Transactions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain options, futures contracts and options on futures
contracts are &#147;section&nbsp;1256 contracts.&#148; Any gains
or losses on section&nbsp;1256 contracts are generally
considered 60% long-term and 40% short-term capital gains or
losses (&#147;60/40&#148;). Also, section&nbsp;1256 contracts
held by the Equity Trust at the end of each taxable year are
&#147;marked-to-market&#148; with the result that unrealized
gains or losses are treated as though they were realized and the
resulting gain or loss is treated as 60/40 gain or loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Hedging transactions undertaken by the Equity Trust may result
in &#147;straddles&#148; for federal income tax purposes. The
straddle rules may affect the character of gains (or losses)
realized by the Equity Trust. In addition, losses realized by
the Equity Trust on positions that are part of a straddle may be
deferred under the straddle rules, rather than being taken into
account in calculating the taxable income for the taxable year
in which such losses are realized. Further, the Equity Trust may
be required to capitalize, rather than deduct currently, any
interest expense on indebtedness incurred or continued to
purchase or carry any positions that are part of a straddle.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust may make one or more of the elections available
under the Code which are applicable to straddles. If the Equity
Trust makes any of the elections, the amount, character and
timing of the recognition of gains or losses from the affected
straddle positions may be determined under rules that vary
according to the election(s) made. The rules applicable under
certain of the elections accelerate the recognition of gain or
loss from the affected straddle positions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because application of the straddle rules may affect the
character and timing of the Equity Trust&#146;s gains, losses
and deductions, the amount which must be distributed to
stockholders, and which will be taxed to stockholders as
ordinary income or long-term capital gain, may be increased or
decreased substantially as compared to a fund that did not
engage in such hedging transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Foreign Taxes.</I> Since the Equity Trust may invest in
foreign securities, its income from such securities may be
subject to non-U.S.&nbsp;taxes. The Equity Trust will not be
eligible to elect to &#147;pass-through&#148; to stockholders of
the Equity Trust the ability to use the foreign tax deduction or
foreign tax credit for foreign taxes paid with respect to
qualifying taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Taxation of U.S. Stockholders</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust will determine either to distribute or to
retain for reinvestment all or part of its net capital gain. If
any such gains are retained, the Equity Trust will be subject to
a tax of 35% of such amount. In
</DIV>

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<DIV align="left" style="font-size: 10pt;">
that event, the Equity Trust expects to designate the retained
amount as undistributed capital gains in a notice to its
stockholders, each of whom (i)&nbsp;will be required to include
in income for tax purposes as long-term capital gain its share
of such undistributed amounts, (ii)&nbsp;will be entitled to
credit its proportionate share of the tax paid by the Equity
Trust against its federal income tax liability and to claim
refunds to the extent that the credit exceeds such liability and
(iii)&nbsp;will increase its basis in its shares of the Equity
Trust by an amount equal to 65% of the amount of undistributed
capital gains included in such stockholder&#146;s gross income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Distributions paid by the Equity Trust from its net investment
income or from an excess of net short-term capital gains over
net-long term capital losses generally are taxable as ordinary
income to the extent of the Equity Trust&#146;s earnings and
profits. Such distributions (if designated by the Equity Trust)
may, however, qualify (provided holding period and other
requirements are met at the Equity Trust and stockholder level)
(i)&nbsp;for the dividends received deduction available to
corporations, but only to the extent that the Equity
Trust&#146;s income consists of dividends received from
U.S.&nbsp;corporations and (ii)&nbsp;(effective for taxable
years through December&nbsp;31, 2008), as qualified dividend
income eligible for the reduced maximum rate to individuals of
generally 15% (5% for individuals in lower tax brackets) to the
extent that the Equity Trust receives qualified dividend income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Qualified dividend income is, in general, dividend income from
taxable domestic corporations and certain foreign corporations
(e.g., generally, foreign corporations incorporated in a
possession of the United States or in certain countries with a
comprehensive tax treaty with the United States, or the stock of
which is readily tradable on an established securities market in
the United States). Distributions of net capital gain designated
as capital gain dividends, if any, are taxable to stockholders
at rates applicable to long-term capital gains regardless of how
long the stockholder has held shares of the Equity Trust&#146;s
stock, and are not eligible for the dividends received
deduction. The tax rate on net long-term capital gain of
individuals is generally 15% (5% for individuals in lower
brackets) for such gain realized before January&nbsp;1, 2009.
Distributions in excess of the Equity Trust&#146;s earnings and
profits will first reduce the adjusted tax basis of a
holder&#146;s shares and, after such adjusted tax basis is
reduced to zero, will constitute capital gain to such holder
(assuming the stock is held as a capital asset). For
non-corporate taxpayers, investment company taxable income
(other than qualified dividend income) will currently be taxed
at a maximum rate of 35%. For corporate taxpayers, both
investment company taxable income and net capital gain are taxed
at a maximum rate of 35%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stockholders may be entitled to offset their capital gain
dividends with capital losses. There are a number of statutory
provisions affecting when capital losses may be offset against
capital gains, and limiting the use of losses from certain
investments and activities. Accordingly, stockholders with
capital losses are urged to consult their tax advisers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The price of stock purchased at any time may reflect the amount
of a forthcoming distribution. Those purchasing stock just prior
to a distribution will receive a distribution which will be
taxable to them even though it represents in part a return of
invested capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon a sale or exchange of stock, a stockholder will realize a
taxable gain or loss depending upon his or her basis in the
stock. Such gain or loss will be treated as long-term capital
gain or loss if the stock has been held for more than one year.
Any loss realized on a sale or exchange will be disallowed to
the extent the stock disposed of is replaced within a 61-day
period beginning 30&nbsp;days before and ending 30&nbsp;days
after the date that the stock is disposed of. In such a case,
the basis of the stock acquired will be adjusted to reflect the
disallowed loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any loss realized by a stockholder on the sale of Equity Trust
stock held by the stockholder for six months or less will be
treated for tax purposes as a long-term capital loss to the
extent of any capital gain dividends received by the stockholder
(or amounts credited to the stockholder as an undistributed
capital gain) with respect to such stock.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based in part on a lack of present intention on the part of the
Equity Trust to voluntarily redeem the Series&nbsp;C and
Series&nbsp;E Auction Rate Preferred at any time in the future,
the Equity Trust intends to take the position that under present
law the Series&nbsp;C and Series&nbsp;E Auction Rate Preferred
will constitute stock, rather than debt of the Equity Trust. It
is possible, however, that the IRS could take a contrary
position asserting, for
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
example, that the Series&nbsp;C and Series&nbsp;E Auction Rate
Preferred constitute debt of the Equity Trust. If that position
were upheld, distributions on the Series&nbsp;C and
Series&nbsp;E Auction Rate Preferred would be considered
interest, taxable as ordinary income regardless of the taxable
income of the Equity Trust. The Equity Trust believes this
position, if asserted, would be unlikely to prevail.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The IRS has taken the position that if a RIC has two classes of
stock, it may designate distributions made to each class in any
year as consisting of no more than such class&#146;s
proportionate share of particular types of income, such as
long-term capital gain. A class&#146;s proportionate share of a
particular type of income is determined according to the
percentage of total dividends paid by the RIC during such year
that was paid to such class. Consequently, the Equity Trust will
designate distributions made to the common stockholders and
preferred stockholders as consisting of particular types of
income in accordance with the classes&#146; proportionate shares
of such income. Because of this rule, the Equity Trust is
required to allocate a portion of its net capital gain,
qualified dividend income and dividends qualifying for the
dividends received deduction to common stockholders and
preferred stockholders. The amount of net capital gain,
qualified dividend income and dividends qualifying for the
dividends received deduction allocable between the common
stockholders and the preferred stockholders will depend upon the
amount of such net capital gain, qualified dividend income and
dividends qualifying for the dividends received deduction
realized by the Equity Trust, and the total dividends paid by
the Equity Trust on the Common Shares and Preferred Stock during
a taxable year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ordinary income dividends and capital gain dividends also may be
subject to state and local taxes. Stockholders are urged to
consult their own tax advisers regarding specific questions
about the U.S.&nbsp;federal (including the application of the
alternative minimum tax rules), state, local or foreign tax
consequences to them of investing in the Equity Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a stockholder recognizes a loss with respect to the
fund&#146;s shares of $2&nbsp;million or more for an individual
stockholder or $10&nbsp;million or more for a corporate
stockholder, the stockholder must file with the IRS a disclosure
statement on Form&nbsp;8886. Direct stockholders of portfolio
securities are in many cases excepted from this reporting
requirement, but under current guidance, stockholders of a
regulated investment company are not excepted. Future guidance
may extend the current exception from this reporting requirement
to stockholders of most or all regulated investment companies.
The fact that a loss is reportable under these regulations does
not affect the legal determination of whether the
taxpayer&#146;s treatment of the loss is proper. Stockholders
should consult their tax advisors to determine the applicability
of these regulations in light of their individual circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Backup Withholding</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust may be required to withhold federal income tax
on all taxable distributions and redemption proceeds payable to
non-corporate stockholders who fail to provide the Equity Trust
with their correct taxpayer identification number or to make
required certifications, or who have been notified by the IRS
that they are subject to backup withholding. Backup withholding
is not an additional tax. Any amounts withheld may be refunded
or credited against such stockholder&#146;s federal income tax
liability, if any, provided that the required information is
furnished to the IRS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Taxation of Non-U.S. Stockholders</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dividends paid by the Fund to non-U.S. stockholders are
generally subject to withholding tax at a 30% rate or a reduced
rate specified by an applicable income tax treaty to the extent
derived from investment income and short-term capital gains. In
order to obtain a reduced rate of withholding, a non-U.S.
stockholder will be required to provide an IRS Form&nbsp;W-8BEN
certifying its entitlement to benefits under a treaty. The
withholding tax does not apply to regular dividends paid to a
non-U.S. stockholder who provides a Form&nbsp;W-8ECI, certifying
that the dividends are effectively connected with the non-U.S.
stockholder&#146;s conduct of a trade or business within the
United States. Instead, the effectively connected dividends will
be subject to regular U.S. income tax as if the non-U.S.
stockholder were a U.S. stockholder. A non-U.S. corporation
receiving effectively connected dividends may also be subject to
additional &#147;branch profits tax&#148; imposed at a rate of
30% (or lower treaty rate).
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In general, United States federal withholding tax will not apply
to any gain or income realized by a non-U.S. stockholder in
respect of any distributions of net long-term capital gains over
net short-term capital losses, exempt-interest dividends, or
upon the sale or other disposition of shares of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Recently enacted legislation generally exempts from United
States federal withholding tax properly-designated dividends
that (i)&nbsp;are paid in respect of the Fund&#146;s
&#147;qualified net interest income&#148; (generally, the
Fund&#146;s U.S. source interest income, other than certain
contingent interest and interest from obligations of a
corporation or partnership in which the Fund is at least a 10%
stockholder, reduced by expenses that are allocable to such
income) and (ii)&nbsp;are paid in respect of the Fund&#146;s
&#147;qualified short-term capital gains&#148; (generally, the
excess of the Fund&#146;s net short-term capital gain over the
Fund&#146;s long-term capital loss for such taxable year). This
legislation applies for taxable years beginning before
January&nbsp;1, 2008. In order to qualify for this exemption
from withholding, a non-U.S. stockholder will need to comply
with applicable certification requirements relating to its
non-U.S. status (including, in general, furnishing an IRS
Form&nbsp;W-8BEN or substitute Form).
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The foregoing is a general and abbreviated summary of the
applicable provisions of the Code and Treasury regulations
presently in effect. For the complete provisions, reference
should be made to the pertinent Code sections and the Treasury
regulations promulgated thereunder. The Code and the Treasury
regulations are subject to change by legislative, judicial or
administrative action, either prospectively or retroactively.
Persons considering an investment in Common Shares of the Fund
should consult their own tax advisors regarding the purchase,
ownership and disposition of Common Shares of the Fund.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='207'></A>
</DIV>

<!-- link1 "GENERAL INFORMATION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>GENERAL INFORMATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='208'></A>
</DIV>

<!-- link1 "COUNSEL AND INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM" -->

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>COUNSEL AND INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Willkie Farr&nbsp;&#38; Gallagher LLP, 787&nbsp;Seventh Avenue,
New York, New York 10019, is counsel to the Equity Trust. As to
certain matters of Maryland law, Willkie Farr &#38; Gallagher
LLP will rely on the opinion of Venable LLP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PricewaterhouseCoopers LLP, independent registered public
accounting firm, 300&nbsp;Madison Avenue, New York, New York
10017, serves as the independent registered public accounting
firm of the Fund and will annually render an opinion on the
financial statements of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='209'></A>
</DIV>

<!-- link1 "BENEFICIAL OWNERS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>BENEFICIAL OWNERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of September&nbsp;1, 2005, there are no persons known to the
Equity Trust who may be deemed beneficial owners of 5% or more
of shares of the Equity Trust&#146;s Common Shares because they
possessed or shared voting or investment power with respect to
the Equity Trust&#146;s Common Shares.
</DIV>

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<A name='210'></A>
</DIV>

<!-- link1 "FINANCIAL STATEMENTS" -->

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<B>FINANCIAL STATEMENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The unaudited financial statements included in the Semi-Annual
Report to the Equity Trust&#146;s Shareholders for the fiscal
period ended June&nbsp;30, 2005 are incorporated by reference
from the Equity Trust&#146;s Semi-Annual Report to Shareholders.
The audited financial statements included in the Annual Report
to the Equity Trust&#146;s Shareholders for the fiscal year
ended December&nbsp;31, 2004, together with the report of
PricewaterhouseCoopers LLP thereon, are incorporated herein by
reference from the Equity Trust&#146;s Annual Report to
Shareholders. All other portions of the Annual Report to
Shareholders and Semi-Annual Report to Shareholders are not
incorporated herein by reference and are not part of the
Registration Statement. A copy of the Annual Report to
Shareholders may be obtained without charge by writing to the
Equity Trust at its address at One Corporate Center, Rye, New
York 10580-1422 or by calling the Equity Trust toll-free at
(800)-GABELLI (422-3554).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Equity Trust files its complete schedule of portfolio
holdings for the first and third quarters of its respective
fiscal year with the Commission on Form&nbsp;N-Q. The Equity
Trust&#146;s Form&nbsp;N-Q is available on the Commission&#146;s
website at http://www.sec.gov. The Equity Trust&#146;s
Form&nbsp;N-Q may be reviewed and copied at the
Commission&#146;s Public Reference Room in Washington,&nbsp;D.C.
Information regarding the operation of the Public Reference Room
may be obtained by calling 1-800-SEC-0330.
</DIV>

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<A name='211'></A>
</DIV>

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<B>APPENDIX A</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>GAMCO Investors, Inc. and AFFILIATES</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>The Voting of Proxies on Behalf of Clients</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Rules&nbsp;204(4)-2 and 204-2 under the Investment Advisers Act
of 1940 and Rule&nbsp;30bl-4 under the Investment Company Act of
1940 require investment advisers to adopt written policies and
procedures governing the voting of proxies on behalf of their
clients. These procedures will be used by Gabelli Asset
Management Inc., Gabelli Funds, LLC and Gabelli Advisers, Inc.
(collectively, the &#147;Advisers&#148;) to determine how to
vote proxies relating to portfolio securities held by their
clients, including the procedures that the Advisers use when a
vote presents a conflict between the interests of the
shareholders of an investment company managed by one of the
Advisers, on the one hand, and those of the Advisers; the
principal underwriter; or any affiliated person of the
investment company, the Advisers, or the principal underwriter.
These procedures will not apply where the Advisers do not have
voting discretion or where the Advisers have agreed with a
client to vote the client&#146;s proxies in accordance with
specific guidelines or procedures supplied by the client (to the
extent permitted by ERISA).
</DIV>

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<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>I.</B></TD>
    <TD>
    <B>Proxy Voting Committee</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Proxy Voting Committee was originally formed in April 1989
for the purpose of formulating guidelines and reviewing proxy
statements within the parameters set by the substantive proxy
voting guidelines originally published by Gabelli Asset
Management Inc. in 1988 and updated periodically, a copy of
which are appended to this Appendix. The Committee will include
representatives of Research, Administration, Legal, and the
Advisers. Additional or replacement members of the Committee
will be nominated by the Chairman and voted upon by the entire
Committee. As of December&nbsp;31, 2004, the members are: Bruce
N. Alpert, Chief Operating Officer of Gabelli Funds, LLC, Ivan
Arteaga, Portfolio Manager, Caesar M. P. Bryan, Portfolio
Manager, Stephen DeTore, Deputy General Counsel, Joshua Fenton,
Director of Buy-Side Research, Douglas R. Jamieson, Chief
Operating Officer of GAMCO, James E. McKee, General Counsel,
Karyn-Marie Prylucki, Director of Proxy Voting Services, William
S. Selby, Managing Director of GAMCO, Howard F. Ward, Portfolio
Manager and Peter D. Zaglio, Senior Vice President. Peter D.
Zaglio currently chairs the Committee. In his absence, the
Director of Research will chair the Committee. Meetings are held
on an as needed basis to form views on the manner in which the
Advisers should vote proxies on behalf of their clients. In
general, the Director of Proxy Voting Services, using the Proxy
Guidelines, recommendations of Institutional Shareholder
Services Corporate Governance Service (&#147;ISS&#148;), other
third-party services and the analysts of Gabelli&nbsp;&#38;
Company, Inc., will determine how to vote on each issue. For
non-controversial matters, the Director of Proxy Voting Services
may vote the proxy if the vote is (1)&nbsp;consistent with the
recommendations of the issuer&#146;s Board of Directors and not
contrary to the Proxy Guidelines; (2)&nbsp;consistent with the
recommendations of the issuer&#146;s Board of Directors and is a
non-controversial issue not covered by the Proxy Guidelines; or
(3)&nbsp;the vote is contrary to the recommendations of the
Board of Directors but is consistent with the Proxy Guidelines.
In those instances, the Director of Proxy Voting Services or the
Chairman of the Committee may sign and date the proxy statement
indicating how each issue will be voted. All matters identified
by the Chairman of the Committee, the Director of Proxy Voting
Services or the Legal Department as controversial, taking into
account the recommendations of ISS or other third party services
and the analysts of Gabelli&nbsp;&#38; Company, Inc., will be
presented to the Proxy Voting Committee. If the Chairman of the
Committee, the Director of Proxy Voting Services or the Legal
Department has identified the matter as one that (1)&nbsp;is
controversial; (2)&nbsp;would benefit from deliberation by the
Proxy Voting Committee; or (3)&nbsp;may give rise to a conflict
of interest between the Advisers and their clients, the Chairman
of the Committee will initially determine what vote to recommend
that the Advisers should cast and the matter will go before the
Committee. For matters submitted to the Committee, each member
of the Committee will receive, prior to the meeting, a copy of
the proxy statement, any relevant third party research, a
summary of any views provided by the Chief Investment Officer
and any recommendations by Gabelli&nbsp;&#38; Company, Inc.
analysts. The Chief Investment Officer or the Gabelli&nbsp;&#38;
Company, Inc. analysts may be invited to present their
viewpoints. If the Legal Department believes that the matter
before the committee is one with respect to
</DIV>

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<DIV align="left" style="font-size: 10pt;">
which a conflict of interest may exist between the Advisers and
their clients, counsel will provide an opinion to the Committee
concerning the conflict. If the matter is one in which the
interests of the clients of one or more of the Advisers may
diverge, counsel will so advise and the Committee may make
different recommendations as to different clients. For any
matters where the recommendation may trigger appraisal rights,
counsel will provide an opinion concerning the likely risks and
merits of such an appraisal action. Each matter submitted to the
Committee will be determined by the vote of a majority of the
members present at the meeting. Should the vote concerning one
or more recommendations be tied in a vote of the Committee, the
Chairman of the Committee will cast the deciding vote. The
Committee will notify the proxy department of its decisions and
the proxies will be voted accordingly. Although the Proxy
Guidelines express the normal preferences for the voting of any
shares not covered by a contrary investment guideline provided
by the client, the Committee is not bound by the preferences set
forth in the Proxy Guidelines and will review each matter on its
own merits. Written minutes of all Proxy Voting Committee
meetings will be maintained. The Advisers subscribe to ISS,
which supplies current information on companies, matters being
voted on, regulations, trends in proxy voting and information on
corporate governance issues. If the vote cast either by the
analyst or as a result of the deliberations of the Proxy Voting
Committee runs contrary to the recommendation of the Board of
Directors of the issuer, the matter will be referred to legal
counsel to determine whether an amendment to the most recently
filed Schedule&nbsp;13D is appropriate.
</DIV>

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    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>II.</B></TD>
    <TD>
    <B>Social Issues and Other Client Guidelines</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a client has provided special instructions relating to the
voting of proxies, they should be noted in the client&#146;s
account file and forwarded to the proxy department. This is the
responsibility of the investment professional or sales assistant
for the client. In accordance with Department of Labor
guidelines, the Advisers&#146; policy is to vote on behalf of
ERISA accounts in the best interest of the plan participants
with regard to social issues that carry an economic impact.
Where an account is not governed by ERISA, the Advisers will
vote shares held on behalf of the client in a manner consistent
with any individual investment/voting guidelines provided by the
client. Otherwise the Advisers will abstain with respect to
those shares.
</DIV>

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<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>III.</B></TD>
    <TD>
    <B>Client Retention of Voting Rights</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a client chooses to retain the right to vote proxies or if
there is any change in voting authority, the following should be
notified by the investment professional or sales assistant for
the client: Operations Legal Department, Proxy Department and
the Investment professional assigned to the account. In the
event that the Board of Directors (or a Committee thereof) of
one or more of the investment companies managed by one of the
Advisers has retained direct voting control over any security,
the Proxy Voting Department will provide each Board Member (or
Committee member) with a copy of the proxy statement together
with any other relevant information including recommendations of
ISS or other third-party services.
</DIV>

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    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>IV.</B></TD>
    <TD>
    <B>Voting Records</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Proxy Voting Department will retain a record of matters
voted upon by the Advisers for their clients. The Advisers&#146;
staff may request proxy-voting records for use in presentations
to current or prospective clients. Requests for proxy voting
records should be made at least ten days prior to client
meetings. If a client wishes to receive a proxy voting record on
a quarterly, semi-annual or annual basis, please notify the
Proxy Voting Department. The reports will be available for
mailing approximately ten days after the quarter end of the
period. First quarter reports may be delayed since the end of
the quarter falls during the height of the proxy season. A
letter is sent to the custodians for all clients for which the
Advisers have voting responsibility instructing them to forward
all proxy materials to: [Adviser name], Attn: Proxy Voting
Department, One Corporate Center, Rye, New York 10580-1433, The
sales assistant sends the letters to the custodians along with
the trading/ DTC instructions. Proxy voting records will be
retained in compliance with Rule&nbsp;204-2 under the Investment
Advisers Act.
</DIV>

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    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>V.</B></TD>
    <TD>
    <B>Voting Procedures</B></TD>
</TR>

</TABLE>

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<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>1.</TD>
    <TD align="left">
    Custodian banks, outside brokerage firms and Wexford Clearing
    Services Corporation are responsible for forwarding proxies
    directly to GAMCO. Proxies are received in one of two forms:</TD>
</TR>

</TABLE>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Shareholder Vote&nbsp;Authorization Forms (VAFs)&nbsp;&#151;
    Issued by ADP. VAFs must be voted through the issuing
    institution causing a time lag. ADP is an outside service
    contracted by the various institutions to issue proxy materials.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Proxy cards which may be voted directly.</TD>
</TR>

</TABLE>

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<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>2.</TD>
    <TD align="left">
    Upon receipt of the proxy, the number of shares each form
    represents is logged into the proxy system according to security.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

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

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>4.</TD>
    <TD align="left">
    Upon receipt of instructions from the proxy committee (see
    Administrative), the votes are cast and recorded for each
    account on an individual basis. Since January&nbsp;1, 1992,
    records have been maintained on the Proxy Edge system. The
    system is backed up regularly. From 1990 through 1991, records
    were maintained on the PROXY VOTER system and in hardcopy
    format. Prior to 1990, records were maintained on diskette and
    in hardcopy format. PROXY EDGE records include: Security Name
    and Cusip Number, Date and Type of Meeting (Annual, Special,
    Contest), Client Name, Adviser or Fund&nbsp;Account, Number,
    Directors&#146; Recommendation, How GAMCO voted for the client
    on each issue, The rationale for the vote when it appropriate
    Records prior to the institution of the PROXY EDGE system
    include: Security name, Type of Meeting (Annual, Special,
    Contest), Date of Meeting, Name of Custodian, Name of Client
    Custodian, Account Number, Adviser or Fund&nbsp;Account Number,
    Directors&#146; recommendation, How the Adviser voted for the
    client on each issue, Date the proxy statement was received and
    by whom, Name of person posting the vote, Date and method by
    which the vote was cast. From these records individual client
    proxy voting records are compiled. It is our policy to provide
    institutional clients with a proxy voting record during client
    reviews. In addition, we will supply a proxy voting record at
    the request of the client on a quarterly, semi-annual or annual
    basis.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>5.</TD>
    <TD align="left">
    VAFs are kept alphabetically by security. Records for the
    current proxy season are located in the Proxy Voting Department
    office. In preparation for the upcoming season, files are
    transferred to an offsite storage facility during January/
    February.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>6.</TD>
    <TD align="left">
    Shareholder Vote&nbsp;Authorization Forms issued by ADP are
    always sent directly to a specific individual at ADP.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>7.</TD>
    <TD align="left">
    If a proxy card or VAF is received too late to be voted in the
    conventional matter, every attempt is made to vote on one of the
    following manners:</TD>
</TR>

</TABLE>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    VAFs can be faxed to ADP up until the time of the meeting. This
    is followed up by mailing the original form</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    When a solicitor has been retained, the solicitor is called. At
    the solicitor&#146;s direction, the proxy is faxed.</TD>
</TR>

</TABLE>

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<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>8.</TD>
    <TD align="left">
    In the case of a proxy contest, records are maintained for each
    opposing entity.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>9.</TD>
    <TD align="left">
    Voting in Person</TD>
</TR>

</TABLE>

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    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>a)&nbsp;</TD>
    <TD align="left">
    At times it may be necessary to vote the shares in person. In
    this case, a &#147;legal proxy&#148; is obtained in the
    following manner:</TD>
</TR>

</TABLE>

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<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Banks and brokerage firms using the services at ADP: A call is
    placed to ADP requesting legal proxies. The VAFs are then sent
    overnight to ADP. ADP issues individual legal proxies and sends</TD>
</TR>

</TABLE>

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    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    them back via overnight. A lead-time of at least two weeks prior
    to the meeting is needed to do this. Alternatively, the
    procedures detailed below for banks not using ADP may be
    implemented.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Banks and brokerage firms issuing proxies directly: The bank is
    called and/or faxed and a legal proxy is requested. All legal
    proxies should appoint: &#147;Representative of [Adviser name]
    with full power of substitution.&#148;</TD>
</TR>

</TABLE>

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<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>b)&nbsp;</TD>
    <TD align="left">
    The legal proxies are given to the person attending the meeting
    along with the following supplemental material:</TD>
</TR>

</TABLE>

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<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A limited Power of Attorney appointing the attendee an Adviser
    representative.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A list of all shares being voted by custodian only. Client names
    and account numbers are not included. This list must be
    presented, along with the proxies, to the Inspectors of
    Elections and/or tabulator at least one-half hour prior to the
    scheduled start of the meeting. The tabulator must
    &#147;qualify&#148; the votes (i.e. determine if the vote have
    previously been cast, if the votes have been rescinded, etc.
    vote have previously been cast, etc.).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A sample ERISA and Individual contract.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A sample of the annual authorization to vote proxies form.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    A copy of our most recent Schedule&nbsp;13D filing (if
    applicable).</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">A-4

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PROXY VOTING GUIDELINES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>General Policy Statement</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
It is the policy of GAMCO Investors, Inc. to vote in the best
economic interests of our clients. As we state in our Magna
Carta of Shareholders Rights, established in May 1988, we are
neither for nor against management. We are for shareholders. At
our first proxy committee meeting in 1989, it was decided that
each proxy statement should be evaluated on its own merits
within the framework first established by our Magna Carta of
Shareholders Rights. The attached guidelines serve to enhance
that broad framework. We do not consider any issue routine. We
take into consideration all of our research on the company, its
directors, and their short-and long-term goals for the company.
In cases where issues that we generally do not approve of are
combined with other issues, the negative aspects of the issues
will be factored into the evaluation of the overall proposals
but will not necessitate a vote in opposition to the overall
proposals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Board of Directors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The advisers do not consider the election of the Board of
Directors a routine issue. Each slate of directors is evaluated
on a case-by-case basis. Factors taken into consideration
include:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Historical responsiveness to shareholders. This may include such
    areas as:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Paying greenmail</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Failure to adopt shareholder resolutions receiving a majority of
    shareholder votes</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Qualifications</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Nominating committee in place</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Number of outside directors on the board</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Attendance at meetings</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Overall performance</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Selection of Auditors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In general, we support the Board of Directors&#146;
recommendation for auditors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Blank Check Preferred Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We oppose the issuance of blank check preferred stock. Blank
check preferred stock allows the company to issue stock and
establish dividends, voting rights, etc. without further
shareholder approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Classified Board</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A classified board is one where the directors are divided into
classes with overlapping terms. A different class is elected at
each annual meeting. While a classified board promotes
continuity of directors facilitating long range planning, we
feel directors should be accountable to shareholders on an
annual basis. We will look at this proposal on a case-by-case
basis taking into consideration the board&#146;s historical
responsiveness to the rights of shareholders. Where a classified
board is in place we will generally not support attempts to
change to an annually elected board. When an annually elected
board is in place, we generally will not support attempts to
classify the board.
</DIV>

<P align="center" style="font-size: 10pt;">A-5

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Increase Authorized Common Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The request to increase the amount of outstanding shares is
considered on a case-by-case basis. Factors taken into
consideration include:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Future use of additional shares</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Stock split</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Stock option or other executive compensation plan</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Finance growth of company/strengthen balance sheet</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Aid in restructuring</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Improve credit rating</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Implement a poison pill or other takeover defense</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Amount of stock currently authorized but not yet issued or
    reserved for stock option plans</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Amount of additional stock to be authorized and its dilutive
    effect</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
We will support this proposal if a detailed and verifiable plan
for the use of the additional shares is contained in the proxy
statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Confidential Ballot</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We support the idea that a shareholder&#146;s identity and vote
should be treated with confidentiality. However, we look at this
issue on a case-by-case basis. In order to promote
confidentiality in the voting process, we endorse the use of
independent Inspectors of Election.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Cumulative Voting</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In general, we support cumulative voting. Cumulative voting is a
process by which a shareholder may multiply the number of
directors being elected by the number of shares held on record
date and cast the total number for one candidate or allocate the
voting among two or more candidates. Where cumulative voting is
in place, we will vote against any proposal to rescind this
shareholder right. Cumulative voting may result in a minority
block of stock gaining representation on the board. When a
proposal is made to institute cumulative voting, the proposal
will be reviewed on a case-by-case basis. While we feel that
each board member should represent all shareholders, cumulative
voting provides minority shareholders an opportunity to have
their views represented.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Director Liability and Indemnification</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We support efforts to attract the best possible directors by
limiting the liability and increasing the indemnification of
directors, except in the case of insider dealing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Equal Access to the Proxy</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The SEC&#146;s rules provide for shareholder resolutions.
However, the resolutions are limited in scope and there is a 500
word limit on proponents&#146; written arguments. Management has
no such limitations. While we support equal access to the proxy,
we would look at such variables as length of time required to
respond, percentage of ownership, etc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Fair Price Provisions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Charter provisions requiring a bidder to pay all shareholders a
fair price are intended to prevent two-tier tender offers that
may be abusive. Typically, these provisions do not apply to
board-approved transactions. We support fair price provisions
because we feel all shareholders should be entitled to receive
the same benefits. Reviewed on a case-by-case basis.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Golden Parachutes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Golden parachutes are severance payments to top executives who
are terminated or demoted after a takeover. We support any
proposal that would assure management of its own welfare so that
they may continue to make decisions in the best interest of the
company and shareholders even if the decision results in them
losing their job. We do not, however, support excessive golden
parachutes. Therefore, each proposal will be decided on a
case-by-case basis. Note: Congress has imposed a tax on any
parachute that is more than three times the executive&#146;s
average annual compensation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Anti-Greenmail Proposals</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We do not support greenmail. An offer extended to one
shareholder should be extended to all shareholders equally
across the board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Limit Shareholders&#146; Rights to Call Special Meetings</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We support the right of shareholders to call a special meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Consideration of Nonfinancial Effects of a Merger</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This proposal releases the directors from only looking at the
financial effects of a merger and allows them the opportunity to
consider the merger&#146;s effects on employees, the community,
and consumers. As a fiduciary, we are obligated to vote in the
best economic interests of our clients. In general, this
proposal does not allow us to do that. Therefore, we generally
cannot support this proposal. Reviewed on a case-by-case basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Mergers, Buyouts, Spin-Offs, Restructurings</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each of the above is considered on a case-by-case basis.
According to the Department of Labor, we are not required to
vote for a proposal simply because the offering price is at a
premium to the current market price. We may take into
consideration the long term interests of the shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Military Issues</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shareholder proposals regarding military production must be
evaluated on a purely economic set of criteria for our ERISA
clients. As such, decisions will be made on a case-by-case
basis. In voting on this proposal for our non-ERISA clients, we
will vote according to the client&#146;s direction when
applicable. Where no direction has been given, we will vote in
the best economic interests of our clients. It is not our duty
to impose our social judgment on others.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Northern Ireland</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shareholder proposals requesting the signing of the MacBride
principles for the purpose of countering the discrimination of
Catholics in hiring practices must be evaluated on a purely
economic set of criteria for our ERISA Clients.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As such, decisions will be made on a case-by-case basis. In
voting on this proposal for our non-ERISA clients, we will vote
according to client direction when applicable. Where no
direction has been given, we will vote in the best economic
interests of our clients. It is not our duty to impose our
social judgment on others.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Opt Out of State Anti-Takeover Law</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This shareholder proposal requests that a company opt out of the
coverage of the state&#146;s takeover statutes. Example:
Delaware law requires that a buyer must acquire at least 85% of
the company&#146;s stock before the buyer can exercise control
unless the board approves. We consider this on a case-by-case
basis. Our decision will be based on the following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    State of Incorporation</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">A-7

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Management history of responsiveness to shareholders</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Other mitigating factors</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Poison Pill</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In general, we do not endorse poison pills. In certain cases
where management has a history of being responsive to the needs
of shareholders and the stock is very liquid, we will reconsider
this position.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Reincorporation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Generally, we support reincorporation for well-defined business
reasons. We oppose reincorporation if proposed solely for the
purpose of reincorporating in a state with more stringent
anti-takeover statutes that may negatively impact the value of
the stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Stock Option Plans</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stock option plans are an excellent way to attract, hold and
motivate directors and employees. However, each stock option
plan must be evaluated on its own merits, taking into
consideration the following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Dilution of voting power or earnings per share by more than 10%</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Kind of stock to be awarded, to whom, when and how much</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Method of payment</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Amount of stock already authorized but not yet issued under
    existing stock option plans</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Supermajority Vote Requirements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Supermajority vote requirements in a company&#146;s charter or
bylaws require a level of voting approval in excess of a simple
majority of the outstanding shares. In general, we oppose
supermajority-voting requirements. Supermajority requirements
often exceed the average level of shareholder participation. We
support proposals&#146; approvals by a simple majority of the
shares voting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Limit Shareholders Right to Act by Written Consent</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Written consent allows shareholders to initiate and carry on a
shareholder action without having to wait until the next annual
meeting or to call a special meeting. It permits action to be
taken by the written consent of the same percentage of the
shares that would be required to effect proposed action at a
shareholder meeting. Reviewed on a case-by-case basis.
</DIV>

<P align="center" style="font-size: 10pt;">A-8
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