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<SEC-DOCUMENT>0000950123-09-005057.txt : 20090320
<SEC-HEADER>0000950123-09-005057.hdr.sgml : 20090320
<ACCEPTANCE-DATETIME>20090320171622
ACCESSION NUMBER:		0000950123-09-005057
CONFORMED SUBMISSION TYPE:	N-2
PUBLIC DOCUMENT COUNT:		3
FILED AS OF DATE:		20090320
DATE AS OF CHANGE:		20090320

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GABELLI UTILITY TRUST
		CENTRAL INDEX KEY:			0001080720
		IRS NUMBER:				134046522
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		N-2
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-09243
		FILM NUMBER:		09697034

	BUSINESS ADDRESS:	
		STREET 1:		1 CORPORATE CENTER
		CITY:			RYE
		STATE:			NY
		ZIP:			10580
		BUSINESS PHONE:		9149215083

	MAIL ADDRESS:	
		STREET 1:		1 CORPORATE CENTER
		CITY:			RYE
		STATE:			NY
		ZIP:			10580

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GABELLI UTILITY FUND
		DATE OF NAME CHANGE:	19990225

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GABELLI UTILITY TRUST
		CENTRAL INDEX KEY:			0001080720
		IRS NUMBER:				134046522
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		N-2
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-158132
		FILM NUMBER:		09697035

	BUSINESS ADDRESS:	
		STREET 1:		1 CORPORATE CENTER
		CITY:			RYE
		STATE:			NY
		ZIP:			10580
		BUSINESS PHONE:		9149215083

	MAIL ADDRESS:	
		STREET 1:		1 CORPORATE CENTER
		CITY:			RYE
		STATE:			NY
		ZIP:			10580

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GABELLI UTILITY FUND
		DATE OF NAME CHANGE:	19990225
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-2
<SEQUENCE>1
<FILENAME>y75448nv2.htm
<DESCRIPTION>FORM N-2
<TEXT>
<HTML>
<HEAD>
<TITLE>N-2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">As filed with the Securities and Exchange Commission on March&nbsp;20, 2009<BR>
Securities Act File No.&nbsp;333-<BR>
Investment Company Act File No.&nbsp;811-09243
</DIV>


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt; MARGIN-TOP: 3PT">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM N-2<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>(Check Appropriate Box or Boxes)</B>

</DIV>
<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>Pre-Effective Amendment No.</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>Post-Effective Amendment No.</B></TD>
</TR>
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>and/or</B>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>Amendment No.&nbsp;15</B></TD>
</TR>
</TABLE>
</DIV>


<DIV align="center" style="font-size: 24pt; margin-top: 12pt">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>THE GABELLI UTILITY TRUST</B></DIV>

<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in Charter)<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>



<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>One Corporate Center</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 0pt"><B>Rye, New York 10580-1422</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 0pt">(Address of Principal Executive Offices)

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Registrant&#146;s Telephone Number, including Area Code: (800)&nbsp;422-3554</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Bruce N. Alpert<BR>
The Gabelli Utility Trust<BR>
One Corporate Center<BR>
Rye, New York 10580-1422<BR>
(914)&nbsp;921-5100</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 0pt">(Name and Address of Agent for Service)<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I>Copies to:</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Christopher J. Michailoff, Esq.</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Rose F. DiMartino, Esq.</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">The Gabelli Utility Trust
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Willkie Farr &#038; Gallagher LLP</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">One Corporate Center
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">787 Seventh Ave.</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Rye, New York 10580-1422
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">New York, New York 10019</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(914) 921-5100
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(212) 728-8000</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
Approximate date of proposed public offering: From time to time after the effective date of this
Registration Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If any securities being registered on this form will be offered on a delayed or continuous basis in
reliance on Rule&nbsp;415 under the Securities Act of 1933, as amended, other than securities offered in
connection with a dividend reinvestment plan, check the following box.&nbsp;<FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">It is proposed that this filing will become effective (check appropriate box)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#254;</FONT>&nbsp;When declared effective pursuant to section 8(c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If appropriate, check the following box:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;This &#091;post-effective&#093; amendment designates a new effective date for a previously filed
&#091;post-effective amendment&#093; &#091;registration statement&#093;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;This form is filed to register additional securities for an offering pursuant to Rule 462(b)
under the Securities Act and the Securities Act registration number of the earlier effective
registration statement for the same offering is <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALCULATION OF REGISTRATION FEE UNDER THE SECURITIES ACT OF 1933</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
</TR><TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="17" style="border-bottom: 3px double #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Proposed Maximum</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount Being</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Proposed Maximum</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Aggregate Offering</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount of</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center"><B>Title of Securities</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Registered</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Offering Price Per Share</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Price(1)</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Registration Fee</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
                    <TD valign="top" style="border-top: 2px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">Common Shares of Beneficial Interest
</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 2px solid #000000"><FONT face="Wingdings">&#111;</FONT>&nbsp;Shares
</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 2px solid #000000">$&nbsp;<FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 2px solid #000000">$100&nbsp;million
</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" valign="top" style="border-top: 2px solid #000000">$</TD>
    <TD align="right" valign="top" style="border-top: 2px solid #000000">5,580</TD>
    <TD nowrap valign="top" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="17" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</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 nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Estimated pursuant to Rule&nbsp;457 solely for the purpose of calculating the registration fee.
In no event will the aggregate offering price of all shares offered from time to time pursuant to
a Prospectus Supplement and this Registration Statement exceed $100&nbsp;million. The proposed maximum
offering price per security will be determined, from time to time, by the Registrant in connection
with the sale by the Registrant of the securities registered under this Registration Statement.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY
TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY
STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH
SECTION 8(a) OF THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE SECURITIES AND EXCHANGE COMMISSION, ACTING PURSUANT TO SAID SECTION
8(a), MAY DETERMINE.
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">








<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><IMG src="y75448y7544800.gif" alt="GABELLI LOGO">
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Subject to Completion,
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Base Prospectus dated &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;, 2009

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">PROSPECTUS

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">$100,000,000

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">The Gabelli Utility Trust

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Common Shares of Beneficial Interest

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Investment Objective</I>. The Gabelli Utility Trust (the &#147;Fund&#148;) 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 Fund&#146;s primary investment objective is long-term growth of capital and income. The
Fund will invest at least 80% of its assets, under normal market conditions, in common stocks and
other securities of foreign and domestic companies involved in providing products, services, or
equipment for (i)&nbsp;the generation or distribution of electricity, gas, and water and (ii)
telecommunications services or infrastructure operations (collectively, the &#147;Utility Industry&#148;). A
company will be considered to be in the Utility Industry if it derives at least 50% of its revenues
or earnings from, or devotes at least 50% of its assets to, the indicated activities or
utility-related activities. Gabelli Funds, LLC (the &#147;Investment Adviser&#148;) serves as investment
adviser to the Fund. The Fund was organized under the laws of the State of Delaware on February&nbsp;25,
1999. An investment in the Fund is not appropriate for all investors. We cannot assure you that the
Fund&#146;s investment objective will be achieved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may offer, from time to time, in one or more offerings, our common shares, par value $0.001
per share. Shares may be offered at prices and on terms to be set forth in one or more supplements
to this Prospectus (each a &#147;Prospectus Supplement&#148;). You should read this Prospectus and the
applicable Prospectus Supplement carefully before you invest in our shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our shares may be offered directly to one or more purchasers, through agents designated from
time to time by us, or to or through underwriters or dealers. The Prospectus Supplement relating to
the offering will identify any agents or underwriters involved in the sale of our shares, and will
set forth any applicable purchase price, fee, commission or discount arrangement between us and our
agents or underwriters, or among our underwriters, or the basis upon which such amount may be
calculated. We may not sell any of our shares through agents, underwriters or dealers without
delivery of a Prospectus Supplement describing the method and terms of the particular offering of
our shares. Our common shares are listed on the New York Stock Exchange (the &#147;NYSE&#148;) under the
symbol &#147;GUT.&#148; Our 5.625% Series&nbsp;A Cumulative Preferred Shares are listed on the NYSE under the
symbol &#147;GUTPrA&#148;. On &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;, 2009, the last reported sale price of our common shares on the
NYSE was $&#95;&#95;&#95;. The net asset value of the Fund&#146;s common shares at the close of business on <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>
<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>, 2009 was $ <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;per share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Shares of closed-end funds often trade at a discount from net asset value. This creates a risk
of loss for an investor purchasing shares in a public offering.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Investing in the Fund&#146;s shares involves risks. See &#147;Risk Factors and Special Considerations&#148;
on page &#091;18&#093; for factors that should be considered before investing in shares of the Fund.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>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 criminal offense.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Prospectus may not be used to consummate sales of shares by us through agents,
underwriters or dealers unless accompanied by a Prospectus Supplement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Prospectus sets forth concisely the information about the Fund that a prospective
investor should know before investing. You should read this Prospectus, which contains important
information about the Fund, before
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">deciding whether to invest in the shares, and retain it for future reference. A Statement of
Additional Information, dated &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;, 2009, containing additional information about the Fund,
has been filed with the Securities and Exchange Commission and is incorporated by reference in its
entirety into this Prospectus. You may request a free copy of our annual and semi-annual reports,
request a free copy of the Statement of Additional Information, the table of contents of which is
on page 45 of this Prospectus, request other information about us and make shareholder inquiries
by calling (800)&nbsp;GABELLI (422-3554), by accessing our web site (http://www.gabelli.com) or by
writing to the Fund, or obtain a copy (and other information regarding the Fund) from the
Securities and Exchange Commission&#146;s web site (http://www.sec.gov).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our shares do not represent a deposit or obligation of, and are not guaranteed or endorsed by,
any bank or other insured depository institution, and are not federally insured by the Federal
Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>You should rely only on the information contained or incorporated by reference in this
Prospectus. The Fund has not authorized anyone to provide you with different information. The Fund
is not making an offer to sell these securities in any state where the offer or sale is not
permitted. You should not assume that the information contained in this Prospectus is accurate as
of any date other than the date of this Prospectus.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. THE FUND MAY NOT SELL
THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
IS EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT SOLICITING AN
OFFER TO BUY THESE SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="95%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101">PROSPECTUS SUMMARY</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#102">SUMMARY OF FUND EXPENSES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#103">FINANCIAL HIGHLIGHTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#104">USE OF PROCEEDS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#105">THE FUND</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#106">INVESTMENT OBJECTIVES AND POLICIES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#107">RISK FACTORS AND SPECIAL CONSIDERATIONS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">16</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#108">MANAGEMENT OF THE FUND</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109">PORTFOLIO TRANSACTIONS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">30</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#110">DIVIDENDS AND DISTRIBUTIONS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">30</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#111">AUTOMATIC DIVIDEND REINVESTMENT AND VOLUNTARY CASH PURCHASE PLAN</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#112">DESCRIPTION OF THE SHARES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">33</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#113">ANTI-TAKEOVER PROVISIONS OF THE FUND&#146;S GOVERNING DOCUMENTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">37</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114">CLOSED-END FUND STRUCTURE</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">38</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#115">NET ASSET VALUE</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">38</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#116">TAXATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">39</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#117">CUSTODIAN, TRANSFER AGENT, AUCTION AGENT AND DIVIDEND DISBURSING AGENT</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">41</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#118">PLAN OF DISTRIBUTION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#119">LEGAL MATTERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">43</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#120">INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">43</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#121">ADDITIONAL INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">43</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#122">PRIVACY PRINCIPLES OF THE FUND</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">43</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#123">TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">45</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROSPECTUS SUMMARY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>This is only a summary. This summary may not contain all of the information that you should
consider before investing in our shares. You should review the more detailed information contained
in this Prospectus and the Statement of Additional Information, dated &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> &#95;&#95;&#95;&#093;, 2009 (the &#147;SAI&#148;).</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>The Fund</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Gabelli Utility Trust is a
non-diversified, closed-end
management investment company
organized under the laws of the
State of Delaware on February
25, 1999. Throughout this
Prospectus, we refer to The
Gabelli Utility Trust as the
&#147;Fund&#148; or as &#147;we.&#148; See &#147;The
Fund.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Fund&#146;s outstanding common
shares, par value $0.001 per
share, are listed on the New
York Stock Exchange (&#147;NYSE&#148;)
under the trading or &#147;ticker&#148;
symbol &#147;GUT,&#148; and any newly
issued common shares issued
will trade under the same
symbol. As of December&nbsp;31,
2008, the net assets of the
Fund attributable to its common
shares were $154,898,035. As of
December&nbsp;31, 2008, the Fund had
outstanding 30,430,021 common
shares; 1,173,024 shares of
5.625% Series&nbsp;A Cumulative
Preferred Shares, liquidation
preference $25 per share (the
&#147;Series&nbsp;A Preferred&#148;); and 900
shares of Series&nbsp;B Auction
Market Preferred Shares,
liquidation preference $25,000
per share (the &#147;Series&nbsp;B
Preferred&#148;). The Series&nbsp;A
Preferred and the Series&nbsp;B
Preferred have the same
seniority with respect to
distributions and liquidation
preference. On &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> &#95;&#95;&#95;&#093;,
2009, the last reported sale
price of our common shares on
the NYSE was $&#95;&#95;&#95;. The net
asset value of the Fund&#146;s
common shares at the close of
business on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> &#95;&#95;&#95;, 2009
was $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per share.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>The Offering</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We may offer, from time to
time, in one or more offerings,
our common shares, $0.001 par
value per share. The shares
may be offered at prices and on
terms to be set forth in one or
more supplements to this
Prospectus (each a &#147;Prospectus
Supplement&#148;). The offering
price of our common shares will
not be less than the net asset
value of our common shares at
the time we make the offering,
exclusive of any underwriting
commissions or discounts. You
should read this Prospectus and
the applicable Prospectus
Supplement carefully before you
invest in our shares. Our
shares may be offered directly
to one or more purchasers,
through agents designated from
time to time by us, or to or
through underwriters or
dealers. The Prospectus
Supplement relating to the
offering will identify any
agents, underwriters or dealers
involved in the sale of our
shares, and will set forth any
applicable purchase price, fee,
commission or discount
arrangement between us and our
agents or underwriters, or
among our underwriters, or the
basis upon which such amount
may be calculated. We may not
sell any of our shares through
agents, underwriters or dealers
without delivery of a
Prospectus Supplement
describing the method and terms
of the particular offering of
our shares.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Investment Objective and Policies</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Fund&#146;s primary investment
objective is long-term growth
of capital and income. The Fund
will invest at least 80% of its
assets, under normal market
conditions, in common stocks
and other securities of foreign
and domestic companies involved
in providing products,
services, or equipment for (i)
the generation or distribution
of electricity, gas, and water
and (ii)&nbsp;telecommunications
services or infrastructure
operations (collectively, the
&#147;Utility Industry&#148;). A company
will be considered to be in the
Utility Industry if it derives
at least 50% of its revenues or
earnings from, or devotes at
least 50% of its assets to, the
indicated activities or
utility-related activities.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No assurance can be given that
the Fund&#146;s investment objective
will be</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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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 style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">achieved. See
&#147;Investment Objective and
Policies.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Common Shares</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Fund is authorized to issue
an unlimited number of shares
of beneficial interest, par
value $0.001 per share, in
multiple classes and series
thereof as determined from time
to time by the Board of
Trustees of the Fund (the
&#147;Board&#148;). The Board has
authorized issuance of an
unlimited number of shares of
two classes, the common shares
and preferred shares. Each
share within a particular class
or series thereof has equal
voting, dividend, distribution
and liquidation rights. The
common shares are not
redeemable and have no
preemptive, conversion or
cumulative voting rights. In
the event of liquidation, each
common share is entitled to its
proportion of the Fund&#146;s assets
after payment of debts and
expenses and the amounts
payable to holders of the
Fund&#146;s preferred shares ranking
senior to the common shares of
the Fund as described below.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Preferred Shares</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Currently, an unlimited number
of the Fund&#146;s shares have been
classified by the Board as
preferred shares, par value
$0.001 per share. The terms of
each series of preferred shares
may be fixed by the Board and
may materially limit and/or
qualify the rights of holders
of the Fund&#146;s common shares. If
the Board determines that it
may be advantageous to the
holders of the Fund&#146;s common
shares for the Fund to utilize
additional leverage, the Fund
may issue additional series of
fixed rate preferred shares
(&#147;Fixed Rate Preferred Shares&#148;)
or additional series of
variable rate preferred shares
(&#147;Variable Rate Preferred
Shares&#148;). Only common shares
are offered in this Prospectus
and one or more applicable
Prospectus Supplements. Any
Fixed Rate Preferred Shares or
Variable Rate Preferred Shares
issued by the Fund will pay, as
applicable, distributions at a
fixed rate or at rates that
will be reset frequently based
on short-term interest rates.
(As of December&nbsp;31, 2008,
1,173,024 shares of Series&nbsp;A
Preferred and 900 shares of
Series&nbsp;B Preferred were
outstanding.) Leverage creates
a greater risk of loss as well
as a potential for more gains
for the common shares than if
leverage were not used. See
&#147;Risk Factors and Special
Considerations&#151;Leverage Risk&#148;
and &#147;Certain Investment
Practices&#151;Leveraging.&#148; The
Fund may also engage in
investment management
techniques, which will not be
considered senior securities if
the Fund establishes in a
segregated account cash or
other liquid securities equal
to the Fund&#146;s obligations in
respect of such techniques. The
Fund may borrow money in
accordance with its investment
restrictions, including as a
temporary measure for
extraordinary or emergency
purposes. The Fund will not
borrow for investment purposes.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Dividends and Distributions</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Common Share Distributions</I>. In
order to allow its common
shareholders to realize a
predictable, but not assured,
level of cash flow and some
liquidity periodically on their
investment without having to
sell shares, the Fund has
adopted a managed distribution
policy, which may be modified
at any time by the Board. The
Fund pays to its common
shareholders a distribution of
$0.06 per share each month and,
if necessary, an adjusting
distribution in December which
includes any additional income
and net realized capital gains
in excess of the monthly
distributions for that year to
satisfy the minimum
distribution requirements of
the Internal Revenue Code of
1986, as amended (the &#147;Code&#148;).
In the event the Fund does not
generate a total return from
dividends and interest received
and net realized capital gains
in an amount equal to or in
excess of its stated
distribution in a given year,
the Fund may return capital as
part of such distribution,
which may have the effect of
decreasing the asset coverage
per share with respect to the
Fund&#146;s preferred shares. Any
return of capital that is a
component of a distribution is
not sourced from realized or
unrealized profits of the Fund
and that portion</TD>
</TR>
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</TABLE>
</DIV>


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</DIV>

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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 style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">should not be
considered by investors as
yield or total return on their
investment in the Fund.
Shareholders should not assume
that a distribution from the
Fund is comprised exclusively
of net profits.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">For the fiscal year ended
December&nbsp;31, 2008, the Fund
made distributions of
$0.72 per
common share, of which $0.56712
per share is deemed a return of
capital. The Fund has made
monthly distributions with
respect to its common shares
since October&nbsp;1999. The
composition of each
distribution is estimated based
on the earnings of the Fund as
of the record date for each
distribution. The actual
composition of each
distribution may change based
on the Fund&#146;s investment
activity through the end of the
calendar year. The Board
monitors and reviews the Fund&#146;s
common share distribution
policy on a regular basis.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Limitations on Distributions.</I>
If at any time the Fund has
borrowings outstanding, the
Fund will be prohibited from
paying any distributions on any
of its common shares (other
than in additional shares), and
from repurchasing any of its
common shares or preferred
shares, unless the value of its
total assets, less certain
ordinary course liabilities,
exceed 300% of the amount of
the debt outstanding and exceed
200% of the sum of the amount
of the debt and preferred
shares outstanding. In
addition, in such circumstances
the Fund will be prohibited
from paying any sister
distributions on its preferred
shares unless the value of its
total assets, less certain
ordinary course liabilities,
exceed 200% of the amount of
the debt outstanding. See
&#147;Dividends and Distributions.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Use of Proceeds</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Fund will use the net
proceeds from the offering to
purchase portfolio securities
in accordance with its
investment objective and
policies. See &#147;Use of
Proceeds.&#148; Proceeds will be
invested as appropriate
investment opportunities are
identified, which is
anticipated to be substantially
completed within three months;
however, changes in market
conditions could result in the
Fund&#146;s anticipated investment
period extending as long as six
months.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Exchange Listing</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Fund&#146;s outstanding common
shares are listed on the NYSE,
under the trading or &#147;ticker&#148;
symbol &#147;GUT.&#148; Currently, the
Series&nbsp;A Preferred is listed on
the NYSE under the symbol &#147;GUT
PrA.&#148; See &#147;Description of the
Shares.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Market Price of Shares</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Common shares of closed-end
investment companies often
trade at prices lower than
their net asset value. Common
shares of closed-end investment
companies may trade during some
periods at prices higher than
their net asset value and
during other periods at prices
lower than their net asset
value. The Fund cannot assure
you that its common shares will
continue to trade at a price
higher than or equal to net
asset value. The Fund&#146;s net
asset value will be reduced
immediately following this
offering by the sales load and
the amount of the offering
expenses paid by the Fund. See
&#147;Use of Proceeds.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In addition to net asset value,
the market price of the Fund&#146;s
common shares may be affected
by such factors as the Fund&#146;s
dividend and distribution
levels (which are affected by
expenses) and stability, market
liquidity, market supply and
demand, unrealized gains,
general market and economic
conditions and other factors.
See &#147;Risk Factors and Special
Considerations,&#148; &#147;Description
of the Shares&#148; and &#147;Repurchase
of Common Shares.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The common shares are designed
primarily for long-term
investors, and you should not
purchase common shares of the
Fund if you intend to sell them
shortly after purchase.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Risk Factors and Special</B> <B>Considerations</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Risk is inherent in all
investing. Therefore, before
investing in shares of the Fund, you should consider the
risks carefully. See &#147;Risk
Factors and Special
Considerations.&#148;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Industry Risk</I>. The Fund invests
a significant portion of its
assets in foreign and domestic
companies in the Utility
Industry (as defined under
&#147;Investment Objective and
Policies&#148;) and, as a result,
the value of the Fund&#146;s shares
will be more susceptible to the
factors affecting those
particular types of companies,
including government
regulation, inflation cost
increases in fuel and other
operating expenses,
technological innovations that
may render existing products
and equipment obsolete, and
increasing interest rates
resulting in high interest
costs on borrowings needed for
capital construction programs,
including costs associated with
compliance with environmental
and other regulations. As a
consequence of its
concentration policy, the
Fund&#146;s investments may be
subject to greater risk and
market fluctuation than a fund
that has securities
representing a broader range of
alternatives. See &#147;Risk Factors
and Special
Considerations&#151;Industry
Risks.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Non-Diversified Status</I>. As a
non-diversified, closed-end
management investment company
under the 1940 Act, the Fund
may invest a greater portion of
its assets in a more limited
number of issuers than may a
diversified fund, and
accordingly, an investment in
the Fund may, under certain
circumstances, present greater
risk to an investor than an
investment in a diversified
company. See &#147;Risk Factors and
Special
Considerations&#151;Non-Diversified
Status.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Lower Grade Securities.</I> The
Fund may invest up to 25% of
its total assets in
fixed-income securities rated
in the lower rating categories
of recognized statistical
rating agencies, such as
securities rated &#147;CCC&#148; or lower
by Standard &#038; Poor&#146;s Ratings
Services, a Division of The
McGraw-Hill Companies, Inc.
(&#147;S&#038;P&#148;) or &#147;Caa&#148; or lower by
Moody&#146;s Investors Services,
Inc. (&#147;Moody&#146;s&#148;), or non-rated
securities of comparable
quality. These debt securities
are predominantly speculative
and involve major risk exposure
to adverse conditions. Debt
securities that are not rated
or rated lower than &#147;BBB&#148; by
S&#038;P or &#147;Baa&#148; by Moody&#146;s are
often referred to in the
financial press as &#147;junk
bonds.&#148; See &#147;Risk Factors and
Special Considerations&#151;Lower
Grade Securities.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Foreign Securities</I>. There is no
limitation on the amount of
foreign securities in which the
Fund may invest. Investing in
securities of foreign companies
(or foreign governments), which
are generally denominated in
foreign currencies, may involve
certain risks and opportunities
not typically associated with
investing in domestic companies
and could cause the Fund to be
affected favorably or
unfavorably by changes in
currency exchange rates and
revaluation of currencies. See
&#147;Risk Factors and Special
Considerations&#151;Foreign
Securities.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Dependence on Key Personnel</I>.
The Investment Adviser is
dependent upon the expertise of
Mr.&nbsp;Mario J. Gabelli in
providing advisory services
with respect to the Fund&#146;s
investments. If the Investment
Adviser were to lose the
services of Mr.&nbsp;Gabelli, its
ability to service the Fund
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
the Investment Adviser. See
&#147;Risk Factors and Special
Considerations&#151;Dependence on
Key Personnel.&#148;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Leverage Risk</I>. The Fund
currently uses, and intends to
continue to use, financial
leverage for investment
purposes by issuing preferred
shares. As of December&nbsp;31,
2008, the amount of leverage
represented approximately 25%
of the Fund&#146;s total assets. The
Fund&#146;s leveraged capital
structure creates special risks
not associated with unleveraged
funds having a similar
investment objective and
policies. These include the
possibility of greater loss and
the likelihood of higher
volatility of the net asset
value of the Fund and the asset
coverage for preferred shares.
Such volatility may increase
the likelihood of the Fund
having to sell investments in
order to meet its obligations
to make distributions on the
preferred shares, or to redeem
preferred shares when it may be
disadvantageous to do so. Also,
if the Fund is utilizing
leverage, a decline in net
asset value could affect the
ability of the Fund to make
distributions and such a
failure to pay dividends or
make distributions could result
in the Fund ceasing to qualify
as a regulated investment
company under the Code. See
&#147;Taxation.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Common Share Distribution
Policy Risk</I>. The Fund has
adopted a policy, which may be
changed at any time by the
Board, of paying distributions
on its common shares of $0.06
per share per month. In the
event the Fund does not
generate a total return from
dividends and interest received
and net realized capital gains
in an amount equal to or in
excess of its stated
distribution in a given year,
the Fund may return capital as
part of such distribution,
which may have the effect of
decreasing the asset coverage
per share with respect to the
Fund&#146;s preferred shares. Any
return of capital should not be
considered by investors as
yield or total return on their
investment in the Fund. For the
fiscal year ended December&nbsp;31,
2008, the Fund made
distributions of $0.72 per
common share, of which $0.56712
per share is deemed a return of
capital. The Fund has made
monthly distributions with
respect to its common shares
since October&nbsp;1999. A portion
of the distributions to holders
of common shares during five of
the ten fiscal years since the
Fund&#146;s inception has
constituted a return of
capital. The composition of
each distribution is estimated
based on the earnings of the
Fund as of the record date for
each distribution. The actual
composition of each of the
current year&#146;s distributions
will be based on the Fund&#146;s
investment activity through the
end of the calendar year.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Taxation</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Fund has qualified, and
intends to remain qualified,
for federal income tax purposes
as a regulated investment
company. Qualification
requires, among other things,
compliance by the Fund with
certain distribution
requirements. Statutory
limitations on distributions on
the common shares if the Fund
fails to satisfy the 1940 Act&#146;s
asset coverage requirements
could jeopardize the Fund&#146;s
ability to meet such
distribution requirements. The
Fund presently intends,
however, to purchase or redeem
preferred shares to the extent
necessary in order to maintain
compliance with such asset
coverage requirements. See
&#147;Taxation&#148; for a more complete
discussion of these and other
federal income tax
considerations.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Management and Fees</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Gabelli Funds, LLC serves as
the Fund&#146;s investment adviser.
The Investment Adviser&#146;s fee is
computed weekly and paid
monthly, equal on an annual
basis to 1.00% of the Fund&#146;s
average weekly net assets
including the liquidation value
of preferred shares. The fee
paid by the Fund may be higher
when leverage in the form of
preferred shares are utilized,
giving the Investment Adviser
an incentive to utilize such
leverage. However, the
Investment Adviser has agreed
to reduce the management fee on
the incremental assets
attributable to the preferred
shares during the fiscal year
if the total return of the net
asset value of the common
shares of the Fund, including
distributions</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

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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 style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">and advisory fees
subject to reduction for that
year, does not exceed the
stated dividend rate or
corresponding swap rate of each
particular series of preferred
shares for the period. In other
words, if the effective cost of
the leverage for any series of
preferred shares exceeds the
total return (based on net
asset value) on the Fund&#146;s
common shares, the Investment
Adviser will waive that portion
of its management fee on the
incremental assets attributable
to the leverage for that series
of preferred shares to mitigate
the negative impact of the
leverage on the common
shareholder&#146;s total return.
This fee waiver is voluntary
and, except in connection with
the waiver applicable to the
portion of the Fund&#146;s assets
attributable to Series&nbsp;A
Preferred and Series&nbsp;B
Preferred, may be discontinued
at any time. For Series&nbsp;A
Preferred and Series&nbsp;B
Preferred, the waiver will
remain in effect as long as any
shares in a series are
outstanding. The Fund&#146;s total
return on the net asset value
of the 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 preferred
shares for the period. The test
to confirm the accrual of the
management fee on the assets
attributable to each particular
series of preferred shares is
annual. The Fund will accrue
for the management fee on these
assets during the fiscal year
if it appears probable that the
Fund will incur the management
fee on those additional assets.
See &#147;Management of the Fund.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">For the year ended December&nbsp;31,
2008, the Fund&#146;s total return
on the net asset value of the
common shares did not exceed
the stated dividend rate or net
swap expense on any of the
outstanding preferred shares.
Thus, management fees with
respect to the liquidation
value of the preferred share
assets were reduced by
$542,062.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">A discussion regarding the
basis for the Board&#146;s approval
of the continuation of the
investment advisory contract of
the Fund is available in the
Fund&#146;s semi-annual report to
shareholders dated June&nbsp;30,
2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Repurchase of Common Shares</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Fund is authorized, subject
to maintaining required asset
coverage on its preferred
shares, to repurchase its
common shares in the open
market when the common shares
are trading at a discount of
10% or more (or such other
percentage as the Board may
determine from time to time)
from net asset value. Although
the Board has authorized such
repurchases, the Fund is not
required to repurchase its
common shares. The Board has
not established a limit on the
amount of common shares that
could be repurchased. Through
December&nbsp;31, 2008, the Fund had
not repurchased any common
shares in the open market. Such
repurchases are subject to
certain notice and other
requirements under the 1940
Act. See &#147;Repurchase of Common
Shares.&#148; Through December&nbsp;31,
2008 the Fund has redeemed
100 shares of the Series&nbsp;B
Preferred and repurchased  26,976 shares of
the Series&nbsp;A Preferred.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Anti-Takeover Provisions</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certain provisions of the
Fund&#146;s Charter and the By-Laws,
as amended from time to time
(the &#147;By-Laws&#148; and together
with the Charter, the
&#147;Governing Documents&#148;), may be
regarded as &#147;anti-takeover&#148;
provisions. Pursuant to these
provisions, only one of the
three classes of trustees is
elected each year, and the
affirmative vote of the holders
of 75% of the outstanding
voting shares of the Fund
(together with a separate class
vote by the holders of any
preferred shares outstanding)
is necessary to authorize
amendments to the Fund&#146;s
Declaration of Trust that would
be necessary to convert the
Fund from a closed-end to an
open-end investment company.
In addition, the affirmative
vote of the holders of 80% of
the outstanding voting shares
of each class of the Fund,
voting as a class, is generally
required to authorize certain
business</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">transactions with the
beneficial owner of more than
5% of the outstanding shares of
the Fund. In addition, the
holders of the preferred shares
have the authority to elect two
trustees at all times and would
have separate class voting
rights on specified matters
including conversion of the
Fund to open-end status and
certain reorganizations of the
Fund. 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 Fund to open-end status.
These provisions may have the
effect of depriving Fund
shareholders of an opportunity
to sell their shares at a
premium above the prevailing
market price. See
&#147;Anti-Takeover Provisions of
the Fund&#146;s Governing
Documents.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Custodian, Transfer Agent, Auction Agent
and Dividend Disbursing Agent</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Bank of New York Mellon
Corporation, located at 135
Santilli Highway, Everett,
Massachusetts 02149, serves as
the custodian (the &#147;Custodian&#148;)
of the Fund&#146;s assets pursuant
to a custody agreement. Under
the custody agreement, the
Custodian holds the Fund&#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 Fund, plus
certain charges for securities
transactions.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Computershare Trust Company,
N.A. (&#147;Computershare&#148;), located
at 250 Royall Street, Canton,
Massachusetts 02021, serves as
the Fund&#146;s dividend disbursing
agent, as agent under the
Fund&#146;s automatic dividend
reinvestment and voluntary cash
purchase plan (the &#147;Plan&#148;), and
as transfer agent and registrar
with respect to the common
shares of the Fund.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Computershare also serves as
the transfer agent, registrar,
dividend paying agent and
redemption agent with respect
to the Series&nbsp;A Preferred.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Bank of New York, located
at 100 Church Street, New York,
New York 10286, serves as the
auction agent, transfer agent,
registrar, dividend paying
agent and redemption agent with
respect to the Series&nbsp;B
Preferred. See &#147;Custodian,
Transfer Agent, Auction Agent
and Dividend Disbursing Agent.&#148;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>




<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUMMARY OF FUND EXPENSES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables are intended to assist you in understanding the various costs and
expenses directly or indirectly associated with investing in our common shares as a percentage of
net assets attributable to common shares. Amounts are for the current fiscal year after giving
effect to anticipated net proceeds of the offering, assuming that we incur the estimated offering
expenses, including preferred share offering expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Shareholder Transaction Expenses</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sales Load (as a percentage of offering price)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.00</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering Expenses (as a percentage of offering price)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.11</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividend Reinvestment Plan Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">None</TD>
    <TD colspan="1" nowrap align="center"><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)(2)</B></SUP></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of Net Assets</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Attributable to Common</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Annual Expenses</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Management Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest Payments on Borrowed Funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">None</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.53</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Annual Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.73</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</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 nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Estimated maximum amount based on offering of $100&nbsp;million in common
shares. The actual amounts in connection with any offering will be
set forth in the Prospectus Supplement if applicable.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>You will be charged a $1.00 service charge and pay brokerage charges
if you direct the plan agent to sell your common shares held in a
dividend reinvestment account.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>The Investment Adviser&#146;s fee is 1.00% annually of the Fund&#146;s average
weekly net assets, with no deduction for the liquidation preference of
any outstanding preferred shares. Consequently, if the Fund has
preferred shares outstanding, the investment management fees and other
expenses as a percentage of net assets attributable to common shares
will be higher than if the Fund does not utilize a leveraged capital
structure. &#147;Other Expenses&#148; are based on estimated amounts for the
current year assuming completion of the proposed issuances.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The purpose of the table above and the example below is to help you understand all fees and
expenses that you, as a holder of common shares, would bear directly or indirectly.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Example</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following example illustrates the expenses (including the maximum estimated sales load of
$30 and estimated offering expenses of $1 from issuance of $100&nbsp;million in common shares) you would
pay on a $1,000 investment in common shares, assuming a 5% annual portfolio total return.* The
actual amounts in connection with any offering will be set forth in the Prospectus Supplement if
applicable.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>1 Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>3 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>5 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>10 Years</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Expenses Incurred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">229</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</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 nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD><B>The example should not be considered a representation of future
expenses</B>. The example assumes that the amounts set forth in the
Annual Expenses table are accurate and that all distributions are
reinvested at net asset value. Actual expenses may be greater or less
than those assumed. Moreover, the Fund&#146;s actual rate of return may be
greater or less than the hypothetical 5% return shown in the example</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FINANCIAL HIGHLIGHTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selected data below sets forth the per share operating performance and ratios for the
period presented. The financial information was derived from and should be read in conjunction with
the Financial Statements of the Fund and Notes thereto, which are incorporated by reference into
this Prospectus and the SAI. The financial information for the fiscal years ended December&nbsp;31,
2008, 2007, 2006, 2005 and 2004 has been audited by &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;, the Fund&#146;s independent registered
public accounting firm, whose unqualified report on such Financial Statements is incorporated by
reference into the SAI.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Selected data for a common share outstanding throughout each</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>Year Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>period:</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating Performance:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net asset value, beginning of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6.83</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net realized and unrealized gain/(loss) on investments, swap contracts,
and foreign currency transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.48</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.99</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><B>Total from investment operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Distributions to Preferred Shareholders: (a)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.06</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.03</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.06</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net realized gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.03</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.07</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.08</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.07</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.03</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total distributions to preferred shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.09</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.10</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.10</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.09</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.09</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net Increase/(Decrease) in Net Assets Attributable to Common
Shareholders Resulting from Operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.39</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.06</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Distributions to Common Shareholders:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.10</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.16</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.16</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.14</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.10</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net realized gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.04</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.33</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.56</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.58</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.05</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.58</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.23</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.57</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total distributions to common shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.72</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.72</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.72</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.72</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.72</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Fund Share Transactions:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Increase in net asset value from common share transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.03</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Decrease in net asset value from shares issued in rights offering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.06</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Increase in net asset value from repurchase of preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>(f)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>(f)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>(f)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Offering costs for preferred shares charged to paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>(f)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>(f)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Offering costs for issuance of rights charged to paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.00</TD>
    <TD nowrap>)(f)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.00</TD>
    <TD nowrap>)(f)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.00</TD>
    <TD nowrap>)(f)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.00</TD>
    <TD nowrap>)(f)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total fund share transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.03</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><B>Net Asset Value Attributable to Common Shareholders, End of Period</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7.14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>

<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net asset value total return&#134;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(31.68</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.08</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">27.46</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.71</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.43</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>

<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Market value, end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>

<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investment total return&#134;&#134;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(31.81</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">16.47</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.11</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>

<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Ratios and Supplemental Data:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net assets including liquidation value of preferred shares,
end of period (in 000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">206,724</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">300,310</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">297,511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">259,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">261,563</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net assets attributable to common shares, end of period (in 000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">154,898</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">245,617</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">242,906</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">204,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">206,958</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Ratio of net investment income to average net assets attributable to
common
shares before preferred share distributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.24</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.42</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.32</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Ratio of operating expenses to average net assets attributable to
common
shares before fee waived</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Selected data for a common share outstanding throughout each</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>Year Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>period:</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Ratio of operating expenses to average net assets attributable to
common shares net of advisory fee reduction, if any (b)(c)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.63</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.85</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.04</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Ratio of operating expenses to average net assets including liquidation
value of preferred shares before fee waived</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Ratio of operating expenses to average net assets including liquidation
value of preferred shares net of advisory fee reduction, if any (b)(c)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.34</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.40</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.47</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.52</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Portfolio turnover rate&#134;&#134;&#134;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">33</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Preferred Shares:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px"><B>5.625% Series&nbsp;A Cumulative Preferred Shares</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Liquidation value, end of period (in 000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,326</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,593</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,605</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,605</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,605</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total shares outstanding (in 000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,184</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Liquidation preference per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Average market value (d)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Asset coverage per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">99.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">137.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">136.21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">118.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">119.75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px"><B>Series&nbsp;B Auction Market Cumulative Preferred Shares</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Liquidation value, end of period (in 000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total shares outstanding (in 000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Liquidation preference per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Average market value (d)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Asset coverage per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">99,721</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">137,478</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">136,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">118,718</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">119,752</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px"><B>Asset Coverage (e)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">399</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">550</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">545</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">475</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">479</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</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 nowrap align="left">&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>Based on net asset value per share, adjusted for reinvestment of distributions at
prices obtained under the Fund&#146;s dividend reinvestment plan, including the effect of
shares issued pursuant to 2004 rights offerings, assuming full subscription by
shareholder.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">&#134;&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>Based on market value per share, adjusted for reinvestment of distributions at prices
obtained under the Fund&#146;s dividend reinvestment plan, including the effect of shares
issued pursuant to 2004 rights offerings, assuming full subscription by shareholder.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">&#134;&#134;&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>Effective in 2008, a change in accounting policy was adopted with regard to the
calculation of the portfolio turnover rate to include cash proceeds due to mergers.
Had this policy been adopted retroactively, the portfolio turnover rate for the years
ended December&nbsp;31, 2007, 2006, 2005, and 2004, would have been 29%, 34%, 29%, and 30%,
respectively.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(a)</TD>
    <TD>&nbsp;</TD>
    <TD>Calculated based upon average common shares outstanding on the record dates throughout the
period.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(b)</TD>
    <TD>&nbsp;</TD>
    <TD>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, 2007, the ratios of operating expenses to average net assets
attributable to common shares net of advisory fee reduction would have been 1.63% and the
ratios of operating expenses to average net assets including liquidation value of
preferred shares net of fee reduction would have been 1.33%. For the years ended December
31, 2008, 2006, 2005, and 2004, the effect of the custodian fee credits was minimal.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(c)</TD>
    <TD>&nbsp;</TD>
    <TD>The Fund incurred interest expense during the year ended December&nbsp;31, 2007. If interest
expense had not been incurred, the ratio of operating expenses to average net assets
attributable to common shares would have been 1.62% and the ratio of operating expenses to
average net assets including liquidation value of preferred shares would have been 1.33%.
For the year ended December&nbsp;31, 2008, the effect of interest expense was minimal.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(d)</TD>
    <TD>&nbsp;</TD>
    <TD>Based on weekly prices.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(e)</TD>
    <TD>&nbsp;</TD>
    <TD>Asset coverage is calculated by combining all series of preferred shares.</TD>
</TR>

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

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

</TABLE>


<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>USE OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser expects that it will initially invest the proceeds of the offering in
high quality short-term debt securities and instruments. The Investment Adviser anticipates that
the investment of the proceeds will be made in accordance with the Fund&#146;s investment objective and
policies as appropriate investment opportunities are identified, which is expected to substantially
be completed within three months; however, changes in market conditions could result in the Fund&#146;s
anticipated investment period extending to as long as six months.
</DIV>
<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE FUND</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is a non-diversified, closed-end management investment company registered under the
1940 Act. The Fund was organized under the laws of the State of Delaware on February&nbsp;25, 1999. The
Fund had no operations prior to July&nbsp;9, 1999, other than the sale of 7,579,739 common shares to The
Gabelli Equity Trust Inc. in exchange for approximately $75&nbsp;million of cash and short-term fixed
income instruments. The Fund&#146;s principal office is located at One Corporate Center, Rye, New York
10580-1422.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INVESTMENT OBJECTIVE AND POLICIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Objective</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s primary investment objective is long-term growth of capital and income. The Fund
will invest at least 80% of its assets, under normal market conditions, in common stocks and other
securities of foreign and domestic companies involved in providing products, services, or equipment
for (i)&nbsp;the generation or distribution of electricity, gas, and water and (ii)&nbsp;telecommunications
services or infrastructure operations (collectively, the &#147;Utility Industry&#148;). A company will be
considered to be in the Utility Industry if it derives at least 50% of its revenues or earnings
from, or devotes at least 50% of its assets to, the indicated activities or utility-related
activities. The remaining 20% of its assets may be invested in other securities including stocks,
equity securities, debt obligations and money market instruments, as well as certain derivative
instruments in the Utility Industry or other industries. Moreover, should extraordinary conditions
affecting such sectors or securities markets as a whole warrant, the Fund may temporarily be
primarily invested in money market instruments. When the Fund is invested in these instruments for
temporary or defensive purposes it may not achieve its investment objective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The investment policy of the Fund relating to the type of securities in which at least 80% of
the Fund&#146;s total assets must be invested may be changed by the Board without shareholder approval.
Shareholders will, however, receive at least 60&nbsp;days prior notice of any change in this policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although many companies in the Utility Industry traditionally pay above average dividends, the
Fund intends to focus on those companies whose securities have the potential to increase in value.
The Fund&#146;s performance is expected to reflect conditions affecting public utility industries.
These industries are sensitive to factors such as interest rates, local and national government
regulations, the price and availability of fuel, environmental protection or energy conservation
regulations, weather, the level of demand for services, and the risks associated with constructing
and operating nuclear power facilities. These factors may change rapidly. The Fund emphasizes
quality in selecting utility investments, and generally looks for companies that have proven
dividend records and sound financial structures. Believing that the industry is under consolidation
due to changes in regulation, the Fund intends to position itself to take advantage of trends in
consolidation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under normal circumstances the Fund will invest in securities of issuers located in countries
other than the United States and may invest in such foreign securities without limitation.
Investing in securities of foreign issuers, which generally are denominated in foreign currencies,
may involve certain risk and opportunity considerations not typically associated with investing in
domestic companies and could cause the Fund to be affected favorably or unfavorably by changes in
currency exchange rates and revaluations of currencies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No assurance can be given that the Fund&#146;s investment objective will be achieved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Methodology of the Fund</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In selecting securities for the Fund, the Investment Adviser normally will consider the
following factors, among others:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Investment Adviser&#146;s own evaluations of the private market value (as defined below),
cash flow, earnings per share and other fundamental aspects of the underlying assets and
business of the company;</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the potential for capital appreciation of the securities;</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the interest or dividend income generated by the securities;</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the prices of the securities relative to other comparable securities;</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether the securities are entitled to the benefits of call protection or other protective
covenants;</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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



</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the existence of any anti-dilution protections or guarantees of the security; and</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the diversification of the portfolio of the Fund as to issuers.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser&#146;s investment philosophy with respect to equity securities is to
identify assets that are selling in the public market at a discount to their private market value.
The Investment Adviser defines private market value as the value informed purchasers are willing to
pay to acquire assets with similar characteristics. The Investment Adviser also normally evaluates
an issuer&#146;s free cash flow and long-term earnings trends. Finally, the Investment Adviser 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"><B>Certain Investment Practices</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Corporate Reorganizations</I></B>. The Fund may invest without limit in securities of companies for
which a tender or exchange offer has been made or announced and in securities of companies for
which a merger, consolidation, liquidation or similar reorganization proposal has been announced
if, in the judgment of the Investment Adviser, there is a reasonable prospect of capital
appreciation significantly greater than the added portfolio turnover expenses inherent in the short
term nature of such transactions. The principal risk is that such offers or proposals may not be
consummated within the time and under the terms contemplated at the time of the investment, in
which case, unless such offers or proposals are replaced by equivalent or increased offers or
proposals that are consummated, the Fund may sustain a loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Temporary Defensive Investments</I></B>. Subject to the Fund&#146;s investment restrictions, when a
temporary defensive period is believed by the Investment Adviser to be warranted (&#147;temporary
defensive periods&#148;), the Fund may, without limitation, hold cash or invest its assets in securities
of United States government sponsored instrumentalities, in repurchase agreements in respect of
those instruments, and in certain high-grade commercial paper instruments. During temporary
defensive periods, the Fund may also invest in money market mutual funds that invest primarily in
securities of United States government sponsored instrumentalities and repurchase agreements in
respect of those instruments. Obligations of certain agencies and instrumentalities of the United
States government, such as the Government National Mortgage Association, are supported by the &#147;full
faith and credit&#148; of the United States government; others, such as those of the Export-Import Bank
of the United States, are supported by the right of the issuer to borrow from the United States
Treasury; others, such as those of the Federal National Mortgage Association, are supported by the
discretionary authority of the United States 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. No assurance can be given that the United States government would
provide financial support to United States government sponsored instrumentalities if it is not
obligated to do so by law. During temporary defensive periods, the Fund may not achieve its
investment objective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Lower Grade Securities</I></B>. The Fund may invest up to 25% of its total assets in fixed income
securities rated below investment grade by recognized statistical rating agencies or unrated
securities of comparable quality. These securities, which may be preferred stock or debt, are
predominantly speculative and involve major risk exposure to adverse conditions. Debt securities
that are not rated or that are rated lower than &#147;BBB&#148; by S&#038;P or lower than &#147;Baa&#148; by Moody&#146;s are
referred to in the financial press as &#147;junk bonds.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, such lower grade 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 rating 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 in economic
conditions than higher quality securities. In addition, such 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 grade 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, the Investment Adviser, 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
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">history, financial resources and 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the market value of securities in lower grade securities is more volatile than
that of higher quality securities, and the markets in which such lower grade 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 Fund 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 Fund to purchase and may
also have the effect of limiting the ability of the Fund to sell securities at their fair value in
response to changes in the economy or the financial markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lower grade securities also present risks based on payment expectations. If an issuer calls
the obligation for redemption (often a feature of fixed income securities), the Fund may have to
replace the security with a lower yielding security, resulting in a decreased return for investors.
Also, as the principal value of nonconvertible bonds and preferred stocks moves inversely with
movements in interest rates, in the event of rising interest rates, the value of the securities
held by the Fund 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 regular income streams.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of its investment in lower grade securities, the Fund may invest in securities of
issuers in default. The Fund will make an investment in securities of issuers in default only when
the Investment Adviser believes that such issuers will honor their obligations or emerge from
bankruptcy protection under a plan pursuant to which the securities received by the Fund in
exchange for its defaulted securities will have a value in excess of the Fund&#146;s investment. By
investing in securities of issuers in default, the Fund 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 otherwise appreciate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to using recognized rating agencies and other sources, the Investment Adviser also
performs its own analysis of issues in seeking investments that it believes to be underrated (and
thus higher yielding) in light of the financial condition of the issuer. Its analysis of issuers
may include, among other things, current and anticipated cash flow and borrowing requirements,
value of assets in relation to historical cost, strength of management, responsiveness to business
conditions, credit standing, and current anticipated results of operations. In selecting
investments for the Fund, the Investment Adviser may also consider general business conditions,
anticipated changes in interest rates, and the outlook for specific industries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent to its purchase by the Fund, an issue of securities may cease to be rated or its
rating may be reduced. In addition, it is possible that statistical rating agencies may change
their ratings of a particular issue to reflect subsequent events. Moreover, such ratings do not
assess the risk of a decline in market value. None of these events will require the sale of the
securities by the Fund, although the Investment Adviser will consider these events in determining
whether the Fund should continue to hold the securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market for lower grade and comparable unrated securities has experienced several periods
of significantly adverse price and liquidity, particularly at or around times of economic
recessions. Past market recessions have adversely affected the value of such securities as well as
the ability of certain issuers of such securities to repay principal and pay interest thereon or to
refinance such securities. The market for those securities may react in a similar fashion in the
future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Options. </I></B>On behalf of the Fund, the Investment Adviser may, subject to the guidelines of the
Board, 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. over-the-counter
(&#147;OTC&#148;) markets as a means of achieving additional return or of hedging the value of the Fund&#146;s
portfolio. The Fund 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 Fund owns or may acquire through the conversion or exchange of other
securities that it owns.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 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 upon
payment of the exercise price during the option period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A put option is a contract that gives the holder of the option the right to sell to the writer
(seller), in return for the premium, the underlying security at a specified price during the term
of the option. The writer of the put, who receives the premium, has the obligation to buy the
underlying security upon exercise, at the exercise price during the option period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund 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 Fund so desires.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Fund 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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Futures Contracts and Options on Futures</I></B>. On behalf of the Fund, the Investment Adviser may,
subject to the Fund&#146;s investment restrictions and guidelines of the Board, 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,
United States 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser 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 Fund&#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 Fund&#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 Fund&#146;s
outstanding preferred shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Forward Currency Exchange Contracts</I></B>. Subject to guidelines of the Board, the Fund 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 Fund may enter into such contracts on a
&#147;spot&#148; (i.e., cash) basis at the rate then prevailing in 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 Fund&#146;s dealings in forward contracts generally will be
limited to hedging involving either specific transactions or portfolio positions. The Fund does not
have an independent limitation on its investments in foreign currency futures contracts and options
on foreign currency futures contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>When Issued, Delayed Delivery Securities and Forward Commitments</I></B>. The Fund 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 Fund may sell the security
before the settlement date if it is deemed advisable.
</DIV>


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</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities purchased under a forward commitment are subject to market fluctuation, and no
interest (or dividends) accrues to the Fund prior to the settlement date. The Fund 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Short Sales Against the Box</I></B><B>. </B>The Fund may from time to time make short sales of securities.
The market value for the securities sold short by any one issuer will not exceed 5% of the Fund&#146;s
total assets or 5% of such issuer&#146;s voting securities. The Fund may not make short sales or
maintain a short position if it would cause more than 25% of the Fund&#146;s total assets, taken at
market value, to be held as collateral for such sales. The Fund may also make short sales &#147;against
the box.&#148; A short sale is &#147;against the box&#148; to the extent that the Fund contemporaneously owns or
has the right to obtain at no added cost securities identical to those sold short. In a short sale,
the Fund does not immediately deliver the securities sold or receive the proceeds from the sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To secure its obligations to deliver the securities sold short, the Fund will deposit in
escrow in a separate account with its custodian an equal amount to the securities sold short or
securities convertible into, or exchangeable for such securities. The Fund may close out a short
position by purchasing and delivering an equal amount of the securities sold short, rather than by
delivering securities already held by the Fund, because the Fund may want to continue to receive
interest and dividend payments on securities in its portfolio that are convertible into the
securities sold short.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may make a short sale in order to hedge against market risks when it believes that
the price of a security may decline, causing a decline in the value of a security owned by the Fund
or a security convertible into, or exchangeable for, such security, or when the Fund does not want
to sell the security it owns. Such short sale transactions may be subject to special tax rules, one
of the effects of which may be to accelerate income to the Fund. Additionally, the Fund may use
short sales in conjunction with the purchase of a convertible security when it is determined that a
convertible security can be bought at a small conversion premium and has a yield advantage relative
to the underlying common stock sold short.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Repurchase Agreements</I></B>. The Fund may enter into repurchase agreements with banks and non-bank
dealers of United States 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 Fund 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 Securities and Exchange Commission (the &#147;SEC&#148;) 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 Fund&#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 Fund might
be delayed in or prevented from selling the collateral. In the event of a default or bankruptcy by
a seller, the Fund 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 Fund will experience a loss. If the financial institution that is a party to
the repurchase agreement petitions for bankruptcy or becomes subject to the United States
Bankruptcy Code, the law regarding the rights of the Fund is unsettled. As a result, under extreme
circumstances, there may be a restriction on the Fund&#146;s ability to sell the collateral and the Fund
could suffer a loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Leveraging</I></B><B>. </B>As provided in the 1940 Act, and subject to compliance with the Fund&#146;s investment
limitations, the Fund 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 Fund. The use of leverage generally increases the
volatility of returns to the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Investment Restrictions</I></B>. The Fund has adopted certain investment restrictions as fundamental
policies of the Fund. Under the 1940 Act, a fundamental policy may not be changed without the vote
of a majority, as defined
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">in the 1940 Act, of the outstanding voting securities of the Fund (voting together as a single
class). The Fund&#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: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Portfolio Turnover</I></B>. The Fund will buy and sell securities to accomplish its investment
objective. The investment policies of the Fund may lead to frequent changes in investments,
particularly in periods of rapidly fluctuating interest or currency exchange rates. The portfolio
turnover may be higher than that of other investment companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover generally involves some expense to the Fund, including brokerage
commissions or dealer mark-ups and other transaction costs on the sale of securities and
reinvestment in other securities. The portfolio turnover rate is computed by dividing the lesser of
the amount of the securities purchased or securities sold by the average monthly value of
securities owned during the year (excluding securities whose maturities at acquisition were one
year or less). 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 United States federal income tax purposes. The Fund&#146;s portfolio turnover
rates for the fiscal years ended December&nbsp;31, 2007 and 2008 were 13% and 14%, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Long-Term Objective</I></B>. The Fund is intended for investors seeking long-term capital growth and
income. The Fund is not meant to provide a vehicle for those who wish to benefit from short-term
swings in the stock market. An investment in shares of the Fund should not be considered a
complete investment program. Each shareholder should take into account the shareholder&#146;s
investment objectives as well as the shareholder&#146;s other investments when considering investing in
the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Loans of Portfolio Securities</I></B>. To increase income, the Fund 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the borrower fails to maintain the requisite amount of collateral, the loan automatically
terminates and the Fund 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. While these loans of portfolio
securities will be made in accordance with guidelines approved by the Board, 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 Fund, and any gain or loss in the market price during the
loan would inure to the Fund. If the counterparty to the loan petitions for bankruptcy or becomes
subject to the United States Bankruptcy Code, the law regarding the Fund&#146;s rights is unsettled. As
a result, under these circumstances, there may be a restriction on the Fund&#146;s ability to sell the
collateral and it would suffer a loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Borrowing</I></B><B>. </B>The Fund 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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Investment Objective and Policies&#151;Investment Practices&#148; in the SAI.
</DIV>
<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RISK FACTORS AND SPECIAL CONSIDERATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investors should consider the following risk factors and special considerations associated
with investing in the Fund:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Industry Risks</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under normal market conditions, the Fund will invest at least 80% of its total assets in
foreign and domestic companies involved in the Utility Industry and, as a result, the value of the
common shares will be more susceptible to factors affecting those particular types of companies,
including governmental regulation, inflation,
cost increases in fuel and other operating expenses, technological innovations that may render
existing products and
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">equipment obsolete and increasing interest rates resulting in high interest
costs on borrowings needed for capital construction programs, including costs associated with
compliance with environmental and other regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Sector Risk</I></B><B>. </B>The Fund concentrates its investments in the Utility Industry. As a result, the
Fund&#146;s investments may be subject to greater risk and market fluctuation than a fund that had
securities representing a broader range of investment alternatives. The prices of securities
issued by traditional utility companies may change in response to interest rate changes. There is
no guarantee that this relationship will continue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Government Regulation</I></B>. There are substantial differences between the regulatory practices and
policies in various jurisdictions, and any given regulatory agency may make major shifts in policy
from time to time. There is no assurance that regulatory authorities will, in the future, permit
rate increases or that such increases will be adequate to permit the payment of dividends on common
shares by companies subject to such regulatory provisions. Additionally, existing and possible
future regulatory legislation may make it even more difficult for these utilities to obtain
adequate relief.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Various regulatory regimes also impose limitations on the percentage of the stock of a public
utility held by a fund as an investment. These limitations may unfavorably restrict the ability of
the Fund to make certain investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Deregulation</I></B><B>. </B>Changing regulation constitutes one of the industry-specific risks for the
Fund, especially with respect to its investments in traditionally regulated public utilities and
partially regulated utility companies. Domestic and foreign regulators monitor and control utility
revenues and costs, and therefore may limit utility profits and dividends paid to investors, which
could result in reduced income to the Fund. Regulatory authorities also may restrict a company&#146;s
access to new markets, thereby diminishing the company&#146;s long-term prospects. The deregulation of
certain utility companies may eliminate restrictions on profits and dividends, but may also subject
these companies to greater risks of loss. Deregulation of the utility industry could have a
positive or negative impact on the Fund. The Investment Adviser believes that certain utility
companies&#146; fundamentals should continue to improve as the industry undergoes deregulation.
Companies may seek to strengthen their competitive positions through mergers and takeovers. The
loosening of the government regulation of utilities should encourage convergence within the
industry. Improving earnings prospects, strong cash flows, share repurchases and takeovers from
industry consolidation may tend to boost share prices. However, as has occurred in California and
elsewhere, certain companies may be less able to meet the challenge of deregulation as competition
increases and investments in these companies would not be likely to perform well. Individual
sectors of the utility market are subject to additional risks. These risks can apply to all
utility companies &#151; regulated or fully or partially deregulated and unregulated. For example,
telecommunications companies have been affected by technological developments leading to increased
competition, as well as changing regulation of local and long-distance telephone services and other
telecommunications businesses. Certain telecommunications companies have been adversely affected
by the new competitive climate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Financing</I></B><B>. </B>Currently, companies in the Utility Industry have encountered difficulties in
obtaining financing for construction programs during inflationary periods. Issuers experiencing
difficulties in financing construction programs may also experience lower profitability, which can
result in reduced income to the Fund. Historically, companies in the Utility Industry have also
encountered such financing difficulties during inflationary periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Equipment and Supplies</I></B><B>. </B>Traditional utility companies face the risk of lengthy delays and
increased costs associated with the design, construction, licensing and operation of their
facilities. Moreover, technological innovations may render existing plants, equipment or products
obsolete. Increased costs and a reduction in the availability of fuel (such as oil, coal, nuclear
or natural gas) also may adversely affect the profitability of utility companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Electric utilities may be burdened by unexpected increases in operating costs. They may also
be negatively affected when long-term interest rates rise. Long-term borrowings are used to
finance most utility investments, and rising interest rates lead to higher financing costs and
reduced earnings. There are also the considerable costs associated with environmental compliance,
nuclear waste clean-up, cap and trade or other programs designed to
reduce carbon dioxide and other greenhouse emissions, and safety regulation. Increasingly,
regulators are calling
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">upon electric utilities to bear these added costs, and there is a risk that
these costs will not be fully recovered through an increase in revenues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Among gas companies, there has been a move to diversify into oil and gas exploration and
development, making investment returns more sensitive to energy prices. In the case of the water
utility sector, the industry is highly fragmented, and most water supply companies find themselves
in mature markets, although upgrading of fresh water and waste water systems is an expanding
business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Long-Term Objective: Not a Complete Investment Program</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is intended for investors seeking long-term capital growth and income. The Fund is
not meant to provide a vehicle for those who wish to exploit short-term swings in the stock market.
An investment in shares of the Fund should not be considered a complete investment program. Each
shareholder should take into account the Fund&#146;s investment objective as well as the shareholder&#146;s
other investments when considering an investment in the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Non-Diversified Status</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund 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. As a non-diversified investment company, the Fund may invest in the
securities of individual issuers to a greater degree than a diversified investment company. As a
result, the Fund 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 Fund may present greater risk to an investor than an investment in a diversified company. To
qualify as a &#147;regulated investment company,&#148; or &#147;RIC,&#148; for purposes of the Code, the Fund has in
the past conducted and intends to conduct its operations in a manner that will relieve it of any
liability for federal income tax to the extent its earnings are distributed to shareholders. To so
qualify as a &#147;regulated investment company,&#148; among other requirements, the Fund will limit its
investments so that, at the close of each quarter of the taxable year:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not more than 25% of the market value of its total assets will be invested in the
securities (other than United States government securities or the securities of other
RICs) of a single issuer, any two or more issuers in which the fund owns 20% or more of
the voting securities 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" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at least 50% of the market value of the Fund&#146;s assets will be represented by cash,
securities of other regulated investment companies, United States 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 the its assets and not more than 10%
of the outstanding voting securities of such issuer.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Market Value and Net Asset Value</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is a non-diversified, closed-end management investment company. Shares of closed-end
funds are bought and sold in the securities markets and may trade at either a premium to or
discount from net asset value. Listed shares of closed-end investment companies often trade at
discounts from net asset value. This characteristic of shares of a closed-end fund is a risk
separate and distinct from the risk that its net asset value may decrease. The Fund cannot predict
whether its listed shares will trade at, below or above net asset value. Shortly after the
inception of the Fund, the market price of the Fund exceeded the net asset value (the &#147;NAV&#148;) and
the premium continues today. Shareholders desiring liquidity may, subject to applicable securities
laws, trade their Fund shares on the NYSE or other markets on which such shares may trade at the
then-current market value, which may differ from the then-current NAV. Shareholders will incur
brokerage or other transaction costs to sell shares.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Lower Grade Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest up to 25% of its total assets in fixed income securities rated below
investment grade by recognized statistical rating agencies or unrated securities of comparable
quality. These securities, which may be preferred stock or debt, are predominantly speculative and
involve major risk exposure to adverse conditions. Debt securities that are not rated or that are
rated lower than &#147;BBB&#148; by S&#038;P or lower than &#147;Baa&#148; by Moody&#146;s are referred to in the financial press
as &#147;junk bonds.&#148; Such securities are subject to greater risks than investment grade securities,
which reflect their speculative character, including the following:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>greater volatility;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>greater credit risk;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potentially greater sensitivity to general economic or industry conditions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potential lack of attractive resale opportunities (illiquidity); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>additional expenses to seek recovery from issuers who default.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed income securities purchased by the Fund may be rated as low as C by Moody&#146;s or D by S&#038;P
or may be unrated securities considered to be of equivalent quality. Securities that are rated C
by Moody&#146;s are the lowest rated class and can be regarded as having extremely poor prospects of
ever obtaining investment-grade standing. Debt rated D by S&#038;P is in default or is expected to
default upon maturity of payment date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratings are relative and subjective, and are 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of its investment in lower grade securities, the Fund may invest in securities of
issuers in default. The Fund will make an investment in securities of issuers in default only when
the Investment Adviser believes that such issuers will honor their obligations or emerge from
bankruptcy protection under a plan pursuant to which the securities received by the Fund in
exchange for its defaulted securities will have a value in excess of the Fund&#146;s investment. By
investing in securities of issuers in default, the Fund 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 otherwise appreciate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Foreign Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 United States 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 Fund held in foreign countries.
Dividend income that the Fund receives from foreign securities may not be eligible for the special
tax treatment applicable to qualified dividend income.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There may be less publicly available information about a foreign company than a United States
company. Foreign securities markets may have substantially less volume than United States
securities markets and some foreign company securities are less liquid than securities of otherwise
comparable United States 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 Fund to encounter difficulties in purchasing and selling securities
on such markets and may result in the Fund 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-United States securities
markets and the increased costs of maintaining the custody of foreign securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund also may purchase sponsored American Depositary Receipts (&#147;ADRs&#148;) or United States
dollar 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
depositary receipts, particularly unsponsored or unregistered depositary receipts, are under no
obligation to distribute shareholder 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"><B>Special Risks of Derivative Transactions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participation in the options or futures markets and in currency exchange transactions involves
investment risks and transaction costs to which the Fund would not be subject absent the use of
these strategies. If the Investment Adviser&#146;s prediction of movements in the direction of the
securities, foreign currency and interest rate markets are inaccurate, the consequences to the Fund
may leave the Fund in a worse position than if such strategies were not used. Risks inherent in the
use of options, foreign currency, futures contracts and options on futures contracts, securities
indices and foreign currencies include:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>dependence on the Investment Adviser&#146;s ability to predict correctly movements in the
direction of interest rates, securities prices and currency markets;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>imperfect correlation between the price of options and futures contracts and options
thereon and movements in the prices of the securities or currencies being hedged;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the fact that skills needed to use these strategies are different from those needed
to select portfolio securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the possible absence of a liquid secondary market for any particular instrument at
any time;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the possible need to defer closing out certain hedged positions to avoid adverse tax
consequences; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the possible inability of the Fund to purchase or sell a security at a time that
otherwise would be favorable for it to do so, or the possible need for the Fund to sell
a security at a disadvantageous time due to a need for the Fund to maintain &#147;cover&#148; or
to segregate securities in connection with the hedging techniques.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See &#147;Risk Factors and Special Considerations&#151;Futures Transactions.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Futures Transactions</B>
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no assurance that futures contracts or options on futures can be offset at favorable
prices;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


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



</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>possible reduction of the yield of the Fund due to the use of hedging;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>losses from investing in futures transactions that are potentially unlimited and the
segregation requirements for such transactions.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a further description, see &#147;Investment Objective and Policies&#151;Investment Practices&#148; in
the SAI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Forward Currency Exchange Contracts</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The use of forward currency exchange 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 Objective and Policies&#151;Investment
Practices&#148; in the SAI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Dependence on Key Personnel</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser is dependent upon the expertise of Mr.&nbsp;Mario J. Gabelli in providing
advisory services with respect to the Fund&#146;s investments. If the Investment Adviser were to lose
the services of Mr.&nbsp;Gabelli, its ability to service the Fund 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 the Investment Adviser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Market Disruption Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain events have a disruptive effect on the securities markets, such as terrorist attacks,
war and other geopolitical events. The Fund cannot predict the effects of similar events in the
future on the U.S. economy. Lower rated securities and securities of issuers with smaller market
capitalizations tend to be more volatile than higher rated securities and securities of issuers
with larger market capitalizations so that these events and any actions resulting from them may
have a greater impact on the prices and volatility of lower rated securities and securities of
issuers with smaller market capitalizations than on higher rated securities and securities of
issuers with larger market capitalizations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Anti-Takeover Provisions of the Fund&#146;s Governing Documents</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Governing Documents include provisions that could limit the ability of other
entities or persons to acquire control of the Fund or convert the Fund to an open-end fund. See
&#147;Anti-Takeover Provisions of the Fund&#146;s Governing Documents.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Special Risks Related to Preferred Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are special risks associated with the Fund&#146;s investing in preferred securities,
including:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Deferral</I></B><B>. </B>Preferred securities may include provisions that permit the issuer, at its
discretion, to defer dividends or distributions for a stated period without any adverse
consequences to the issuer. If the Fund owns a preferred security that is deferring its
dividends or distributions, the Fund may be required to report income for tax purposes
although it has not yet received such income.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


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



</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Non-Cumulative Dividends</I></B>. Some preferred securities are non-cumulative, meaning that
the dividends do not accumulate and need not ever be paid. A portion of the portfolio
may include investments in non-cumulative preferred securities, whereby the issuer does
not have an obligation to make up any arrearages to its shareholders. Should an issuer
of a non-cumulative preferred security held by the Fund determine not to pay dividends
or distributions on such security, the Fund&#146;s return from that security may be
adversely affected. There is no assurance that dividends or distributions on
non-cumulative preferred securities in which the Fund invests will be declared or
otherwise made payable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Subordination</I></B><B>. </B>Preferred securities are subordinated to bonds and other debt
instruments in an issuer&#146;s capital structure in terms of priority to corporate income
and liquidation payments, and therefore will be subject to greater credit risk than
more senior debt security instruments.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Liquidity</I></B>. Preferred securities may be substantially less liquid than many other
securities, such as common stocks or U.S. government securities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Limited Voting Rights</I></B>. Generally, preferred security holders (such as the Fund) have
no voting rights with respect to the issuing company unless preferred dividends have
been in arrears for a specified number of periods, at which time the preferred security
holders may be entitled to elect a number of directors to the issuer&#146;s board.
Generally, once all the arrearages have been paid, the preferred security holders no
longer have voting rights.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Special Redemption Rights</I></B><B>. </B>In certain varying circumstances, an issuer of preferred
securities may redeem the securities prior to a specified date. For instance, for
certain types of preferred securities, a redemption may be triggered by a change in
federal income tax or securities laws. A redemption by the issuer may negatively impact
the return of the security held by the Fund.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Companies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest in the securities of other investment companies to the extent permitted by
law. To the extent the Fund invests in the common equity of investment companies, the Fund will
bear its ratable share of any such investment company&#146;s expenses, including management fees. The
Fund will also remain obligated to pay management fees to the Investment Adviser with respect to
the assets invested in the securities of other investment companies. In these circumstances holders
of the Fund&#146;s common shares will be subject to duplicative investment expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Counterparty Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will be subject to credit risk with respect to the counterparties to the derivative
contracts purchased by the Fund. If a counterparty becomes bankrupt or otherwise fails to perform
its obligations under a derivative contract due to financial difficulties, the Fund may experience
significant delays in obtaining any recovery under the derivative contract in bankruptcy or other
reorganization proceeding. The Fund may obtain only a limited recovery or may obtain no recovery in
such circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Loans of Portfolio Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consistent with applicable regulatory requirements and the Fund&#146;s investment restrictions, the
Fund may lend its portfolio securities to securities broker-dealers or financial institutions,
provided that such loans are callable at any time by the Fund (subject to notice provisions
described in the SAI) and are at all times secured by cash or cash equivalents, which are
maintained in a segregated account pursuant to applicable regulations and that are at least equal
to the market value, determined daily, of the loaned securities. The advantage of such loans is
that the Fund continues to receive the income on the loaned securities while at the same time
earning interest on the cash amounts deposited as collateral, which will be invested in short-term
obligations. The Fund will not lend its portfolio securities if such loans are not permitted by the
laws or regulations of any state in which its shares are qualified for sale. The Fund&#146;s loans of
portfolio securities will be collateralized in accordance with applicable regulatory requirements.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a further description of such loans of portfolio securities, see &#147;Investment Objective and
Policies&#151;Certain Investment Practices&#151;Loans of Portfolio Securities.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Management Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is subject to management risk because it is an actively managed portfolio. The
Investment Adviser will apply investment techniques and risk analyses in making investment
decisions for the Fund, but there can be no guarantee that these will produce the desired results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Status as a Regulated Investment Company</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has qualified, and intends to remain qualified, for federal income tax purposes as a
regulated investment company under Subchapter M of the Code. Qualification requires, among other
things, compliance by the Fund with certain distribution requirements. Statutory limitations on
distributions on the common shares if the Fund fails to satisfy the 1940 Act&#146;s asset coverage
requirements could jeopardize the Fund&#146;s ability to meet such distribution requirements. The Fund
presently intends, however, to purchase or redeem preferred shares to the extent necessary in order
to maintain compliance with such asset coverage requirements. See &#147;Taxation&#148; for a more complete
discussion of these and other federal income tax considerations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Leverage Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund uses financial leverage for investment purposes by issuing preferred shares. As of
December&nbsp;31, 2008, the amount of leverage represented approximately 25% of the Fund&#146;s total assets.
The Series&nbsp;A Preferred and Series&nbsp;B Preferred have the same seniority with respect to
distributions and liquidation preference. Preferred shares have seniority over common shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s use of leverage, which can be described as exposure to changes in price at a ratio
greater than the amount of equity invested, either through the issuance of preferred shares or
other forms of market exposure, magnifies both the favorable and unfavorable effects of price
movements in the investments made by the Fund. The Fund&#146;s leveraged capital structure creates
special risks not associated with unleveraged funds having similar investment objective and
policies.
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Preferred Share Risk. </B>The issuance of preferred shares causes the net asset value
and market value of the common shares to become more volatile. If the dividend rate on
the preferred shares approaches the net rate of return on the Fund&#146;s investment
portfolio, the benefit of leverage to the holders of the common shares would be
reduced. If the dividend rate on the preferred shares plus the management fee annual
rate of 1.00% (as applicable) exceeds the net rate of return on the Fund&#146;s portfolio,
the leverage will result in a lower rate of return to the holders of common shares than
if the Fund had not issued preferred shares.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any decline in the net asset value of the Fund&#146;s investments would be borne entirely
by the holders of common shares. Therefore, if the market value of the Fund&#146;s
portfolio declines, the leverage will result in a greater decrease in net asset
value to the holders of common shares than if the Fund were not leveraged. This
greater net asset value decrease will also tend to cause a greater decline in the
market price for the common shares. The Fund might be in danger of failing to
maintain the required asset coverage of the preferred shares or of losing its
ratings on the preferred shares or, in an extreme case, the Fund&#146;s current
investment income might not be sufficient to meet the dividend requirements on the
preferred shares. In order to counteract such an event, the Fund might need to
liquidate investments in order to fund a redemption of some or all of the preferred
shares.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition, the Fund would pay (and the holders of common shares will bear) all
costs and expenses relating to the issuance and ongoing maintenance of the preferred
shares, including the advisory fees on the incremental assets attributable to such
shares.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


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



</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Holders of preferred shares may have different interests than holders of common
shares and may at times have disproportionate influence over the Fund&#146;s affairs.
Holders of preferred shares, voting separately as a single class, would have the
right to elect two members of the Board at all times and in the event dividends
become two full years in arrears would have the right to elect a majority of the
Trustees until such arrearage is completely eliminated. In addition, preferred
shareholders have class voting rights on certain matters, including changes in
fundamental investment restrictions and conversion of the fund to open-end status,
and accordingly can veto any such changes.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Restrictions imposed on the declarations and payment of dividends or other
distributions to the holders of the Fund&#146;s common shares and preferred shares, both
by the 1940 Act and by requirements imposed by rating agencies, might impair the
Fund&#146;s ability to maintain its qualification as a regulated investment company for
federal income tax purposes. While the Fund intends to redeem its preferred shares
to the extent necessary to enable the Fund 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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Portfolio Guidelines of Rating Agencies for Preferred Shares and/or Credit Facility</I>.
In order to obtain and maintain attractive credit quality ratings for preferred shares
or borrowings, the Fund must comply with investment quality, diversification and other
guidelines established by the relevant rating agencies. These guidelines could affect
portfolio decisions and may be more stringent than those imposed by the 1940 Act.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Impact on Common Shares. </I>The following table is furnished in response to
requirements of the SEC. It is designed to illustrate the effect of leverage on common
share total return, assuming investment portfolio total returns (comprised of net
investment income of the Fund, realized gains or losses of the Fund and changes in the
value of the securities held in the Fund&#146;s portfolio) of -10%, -5%, 0%, 5% and 10%.
These assumed investment portfolio returns are hypothetical figures and are not
necessarily indicative of the investment portfolio returns experienced or expected to
be experienced by the Fund. See &#147;Risks.&#148; The table further reflects leverage
representing 17% of the Fund&#146;s total assets, the Fund&#146;s current projected blended
annual average leverage dividend or interest rate of 3.90%, a management fee at an
annual rate of 1.00% of the liquidation preference of any outstanding preferred shares
and estimated annual incremental expenses attributable to any outstanding preferred
shares of 0.01% of the Fund&#146;s net assets attributable to common shares.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assumed Portfolio Total Return (Net of Expenses)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(10</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(5</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common Share Total Return</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(13.05</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7.02</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1.00</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.02</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">11.05</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Common share total return is composed of two elements&#151;the common share
distributions paid by the Fund (the amount of which is largely determined by the
taxable income of the Fund (including realized gains or losses) after paying
interest on any debt and/or dividends on any preferred shares) and unrealized gains
or losses on the value of the securities the Fund owns. As required by SEC rules,
the table assumes that the Fund is more likely to suffer capital losses than to
enjoy total return. For example, to assume a total return of 0% the Fund must assume
that the income it receives on its investments is entirely offset by expenses and
losses in the value of those investments. The Fund&#146;s shares are leveraged, and the
risks and special considerations related to leverage described in this prospectus
apply. Such leveraging of the shares cannot be fully achieved until the proceeds
resulting from the use of leverage have been invested in accordance with the Fund&#146;s
investment objectives and policies.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->24<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Common Share Distribution Policy Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has adopted a policy, which may be changed at any time by the Board, of paying
distributions on its common shares of $0.06 per share per month. In the event the Fund does not
generate a total return from dividends and interest received and net realized capital gains in an
amount equal to or in excess of its stated distribution in a given year, the Fund may return
capital as part of such distribution, which may have the effect of decreasing the asset coverage
per share with respect to the Fund&#146;s preferred shares. Any return of capital should not be
considered by investors as yield or total return on their investment in the Fund. Shareholders
should not assume that a distribution from the Fund is comprised exclusively of net profits. For
the fiscal year ended December&nbsp;31, 2008, the Fund made distributions of $0.72 per common share, of
which $0.56712 per share is deemed a return of capital. The Fund has made monthly distributions
with respect to its common shares since October&nbsp;1999. A portion of the distributions to holders of
common shares during five of the ten fiscal years since the Fund&#146;s inception has constituted a
return of capital. The composition of each distribution is estimated based on the earnings of the
Fund as of the record date for each distribution. The actual composition of each of the current
year&#146;s distributions will be based on the Fund&#146;s investment activity through the end of the
calendar year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Restrictions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has adopted certain investment limitations designed to limit investment risk and
maintain portfolio diversification. These limitations are fundamental and may not be changed
without the approval of the holders of a majority, as defined in the 1940 Act, of the outstanding
shares of common shares and preferred shares voting together as a single class. The Fund may become
subject to guidelines that are more limiting than the investment restrictions set forth above in
order to obtain and maintain ratings from Moody&#146;s or S&#038;P on its preferred shares. See &#147;Investment
Restrictions&#148; in the SAI for a complete list of the fundamental and non-fundamental investment
policies of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Interest Rate Transactions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has entered into an interest rate swap transaction with respect to its outstanding
Series&nbsp;B Preferred in order to manage the impact on its portfolio of changes in the dividend rate
of such shares. Through these transactions the Fund may, for example, obtain the equivalent of a
fixed rate for such Variable Rate Preferred Shares that is lower than the Fund would have to pay if
it issued Fixed Rate Preferred Shares. The use of interest rate swaps and caps is a highly
specialized activity that involves certain risks to the Fund including, among others, counterparty
risk and early termination risk.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Fund 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 Fund periodically a variable rate payment that
is intended to approximate the Fund&#146;s variable rate payment obligation on its Variable Rate
Preferred Shares. In an interest rate cap, the Fund would pay a premium to the counterparty to the
interest rate cap 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
Fund would remain obligated to pay preferred shares dividends or distributions when due in
accordance with the Statement of Preferences of the relevant series of the Variable Rate Preferred
Shares even if the counterparty defaulted. Depending on the general state of short-term interest
rates and the returns on the Fund&#146;s portfolio securities at that point in time, such a default
could negatively affect the Fund&#146;s ability to make dividend or distribution payments on the
Variable Rate Preferred Shares. In addition, at the time an interest rate swap or cap transaction
reaches its scheduled termination date, there is a risk that the Fund will not be able to obtain a
replacement transaction or that the terms of the replacement will not be as favorable as on the
expiring transaction. If this occurs, it could have a negative impact on the Fund&#146;s ability to make
dividend or distribution payments on the Variable Rate Preferred Shares. To the extent there is a
decline in interest rates, the value of the interest rate swap or cap could decline, resulting in a
decline in the asset coverage for the Variable Rate Preferred Shares. A sudden and dramatic decline
in interest rates may result in a significant decline in the asset coverage. Under the Statement of
Preferences for each series of the preferred shares, if the Fund fails to maintain the required
asset coverage on the outstanding preferred shares or fails to comply with other covenants, the
Fund may be
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">required to redeem some or all of these shares. The Fund generally may redeem any series of
Variable Rate Preferred Shares, in whole or in part, at its option at any time (usually on a
dividend or distribution payment date), other than during a non-call period. Such redemption would
likely result in the Fund seeking to terminate early all or a portion of any swap or cap
transactions. Early termination of a swap could result in a termination payment by the Fund to the
counterparty, while early termination of a cap could result in a termination payment to the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund 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 Fund receiving or paying, as the case may be, only the net amount of the two
payments. The Fund intends to segregate cash or liquid securities having a value at least equal to
the value of the Fund&#146;s net payment obligations under any swap transaction, marked to market daily.
The Fund will monitor any such swap with a view to ensuring that the Fund remains in compliance
with all applicable regulatory investment policy and tax requirements.
</DIV>


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</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MANAGEMENT OF THE FUND</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board (who, with its officers, are described in the SAI) has overall responsibility for
the management of the Fund. The Board decides upon matters of general policy and reviews the
actions of the Investment Adviser, Gabelli Funds, LLC, located at One Corporate Center, Rye, New
York 10580-1422, and the Sub-Administrator (as defined below). Pursuant to an Investment Advisory
Contract with the Fund, the Investment Adviser, under the supervision of the Board, provides a
continuous investment program for the Fund&#146;s portfolio; provides investment research and makes and
executes recommendations for the purchase and sale of securities; and provides all facilities and
personnel, including officers required for its administrative management and pays the compensation
of all officers and trustees of the Fund who are its affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Investment Adviser</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gabelli Funds, LLC acts as the Fund&#146;s Investment Adviser pursuant to the Investment Advisory
Agreement with the Fund. The Investment Adviser is a New York limited liability company with
principal offices located at One Corporate Center, Rye, New York 10580-1422. The Investment Adviser
was organized in 1999 and is the successor to Gabelli Funds, Inc., which was organized in 1980. As
of December&nbsp;31, 2008, the Investment Adviser acted as registered investment adviser to 25
management investment companies with aggregate net assets of $11.4&nbsp;billion. The Investment Adviser,
together with the other affiliated investment advisers noted below had assets under management
totaling approximately $20.7&nbsp;billion as of December&nbsp;31, 2008. GAMCO Asset Management Inc., an
affiliate of the Investment Adviser, 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 $8.5&nbsp;billion under management as of December&nbsp;31, 2008. Gabelli
Securities, Inc., an affiliate of the Investment Adviser, acts as investment adviser for investment
partnerships and entities having aggregate assets of approximately $295&nbsp;million as of December&nbsp;31,
2008. Gabelli Fixed Income LLC, an affiliate of the Investment Adviser, acts as investment adviser
for separate accounts having aggregate assets of approximately $22&nbsp;million under management as of
December&nbsp;31, 2008. Teton Advisors, Inc., an affiliate of the Investment Adviser, acts as investment
manager to the GAMCO Westwood Funds having aggregate assets of approximately $450&nbsp;million under
management as of December&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser 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 the Investment Adviser 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" style="font-size: 10pt; margin-top: 12pt"><B>Payment of Expenses</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser is obligated to pay expenses associated with providing the services
contemplated by the Investment Advisory Agreement between the Fund and the Investment Adviser (the
&#147;Advisory Agreement&#148;) including compensation of and office space for its officers and employees
connected with investment and economic research, trading and investment management and
administration of the Fund, as well as the fees of all trustees of the Fund who are affiliated with
the Investment Adviser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the fees of the Investment Adviser, the Fund is responsible for the payment of
all its other expenses incurred in the operation of the Fund, which include, among other things,
expenses for legal and independent accountant&#146;s services, stock exchange listing fees, expenses
relating to the offering of preferred shares, rating agency fees, costs of printing proxies, share
certificates and shareholder reports, charges of the custodian, any subcustodian, auction agent,
transfer agent(s) and dividend disbursing agent expenses in connection with its respective
automatic dividend reinvestment and voluntary cash purchase plan, SEC fees, fees and expenses of
unaffiliated trustees, accounting and printing costs, the Fund&#146;s pro rata portion of membership
fees in trade organizations, fidelity bond coverage for the Fund&#146;s officers and employees,
interest, brokerage costs, taxes, expenses of qualifying the Fund for sale in various states,
expenses of personnel performing shareholder servicing functions, litigation and other
extraordinary or non-recurring expenses and other expenses properly payable by the Fund.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Advisory Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of the Advisory Agreement, the Investment Adviser manages the portfolio of the
Fund in accordance with its stated investment objective and policies, makes investment decisions
for the Fund, and places orders to purchase and sell securities on behalf of the Fund and manages
the Fund&#146;s other business and affairs, all subject to the supervision and direction of its Board.
In addition, under the Advisory Agreement, the Investment Adviser oversees the administration of
all aspects of the Fund&#146;s business and affairs and provides, or arranges for others to provide, at
the Investment Adviser&#146;s expense, certain enumerated services, including maintaining the Fund&#146;s
books and records, preparing reports to its shareholders and supervising the calculation of the net
asset value of its shares. All expenses of computing the Fund&#146;s net asset value, including any
equipment or services obtained solely for the purpose of pricing shares or valuing the Fund&#146;s
investment portfolio, will be an expense of the Fund under the Advisory Agreement unless the
Investment Adviser voluntarily assumes responsibility for such expense. During fiscal year 2008,
the Fund reimbursed the Investment Adviser $45,000 in connection with the cost of computing the
Fund&#146;s net asset value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Advisory Agreement combines investment advisory and administrative responsibilities in one
agreement. For services rendered by the Investment Adviser on behalf of the Fund under the Advisory
Agreement, the Fund pays the Investment Adviser a fee computed weekly and paid monthly, equal on an
annual basis to 1.00% of the Fund&#146;s average weekly net assets including the liquidation value of
preferred shares. The fee paid by the Fund may be higher when leverage in the form of preferred
shares are utilized, giving the Investment Adviser an incentive to utilize such leverage. However,
the Investment Adviser has agreed to reduce the management fee on the incremental assets
attributable to the preferred shares during the fiscal year if the total return of the net asset
value of the common shares of the Fund, including distributions and advisory fees subject to
reduction for that year, does not exceed the stated dividend rate or corresponding swap rate of
each particular series of preferred shares for the period. In other words, if the effective cost of
the leverage for any series of preferred shares exceeds the total return (based on net asset value)
on the Fund&#146;s common shares, the Investment Adviser will waive that portion of its management fee
on the incremental assets attributable to the leverage for that series of preferred shares to
mitigate the negative impact of the leverage on the common shareholder&#146;s total return. This fee
waiver is voluntary and, except in connection with the waiver applicable to the portion of the
Fund&#146;s assets attributable to Series&nbsp;A Preferred and Series&nbsp;B Preferred, may be discontinued at any
time. For Series&nbsp;A Preferred and Series&nbsp;B Preferred, the waiver will remain in effect as long as
any shares in a series are outstanding. The Fund&#146;s total return on the net asset value of the
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 preferred shares for the period. The test to confirm the accrual of the
management fee on the assets attributable to each particular series of preferred shares is annual.
The Fund will accrue for the management fee on these assets during the fiscal year if it appears
probable that the Fund will incur the management fee on those additional assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the year ended December&nbsp;31, 2008, the Fund&#146;s total return on the net asset value of the
common shares did not exceed the stated dividend rate or corresponding swap rate on any of the
outstanding preferred shares. Thus, management fees with respect to the liquidation value of the
preferred share assets were reduced by $542,062.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to its terms, the Advisory Agreement will remain in effect with respect to the Fund
from year to year if approved annually (i)&nbsp;by the Board or by the holders of a majority of the
Fund&#146;s outstanding voting securities and (ii)&nbsp;by a majority of the Trustees 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A discussion regarding the basis of the Board&#146;s approval of the Advisory Agreement is
available in the Fund&#146;s semi-annual report to shareholders for the six months ended June&nbsp;30, 2008.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Selection of Securities Brokers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Advisory Agreement contains provisions relating to the selection of securities brokers to
effect the portfolio transactions of the Fund. Under those provisions, the Investment Adviser may
(i)&nbsp;direct Fund portfolio brokerage to Gabelli &#038; Company, Inc. (&#147;Gabelli &#038; Company&#148;) or other
broker-dealer affiliates of the Investment Adviser and (ii)&nbsp;pay commissions to brokers other than
Gabelli &#038; Company that are higher than might be charged by another qualified broker to obtain
brokerage and/or research services considered by the Investment Adviser to be useful or desirable
for its investment management of the Fund 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
Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Portfolio Manager</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mario J. Gabelli is currently and has been primarily responsible for the day-to-day management
of the Fund since its inception. Mr.&nbsp;Gabelli has served as Chairman and Chief Executive Officer of
GAMCO Investors, Inc. and its predecessors since 1976. Mr.&nbsp;Gabelli is the Chief Investment Officer
&#151; Value Portfolios for the Investment Adviser and GAMCO Asset Management Inc. Mr.&nbsp;Gabelli serves
as portfolio manager for several funds in the Gabelli fund family and is a director of several
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 of the Fund. Mr.&nbsp;Gabelli is
also Chief Executive Officer of GGCP, Inc., as well as Chairman of the Board of Lynch Interactive
Corporation, a multimedia and communication services company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SAI provides additional information about the Portfolio Manager&#146;s compensation, other
accounts managed by the Portfolio Manager and the Portfolio Manager&#146;s ownership of securities in
the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Sub-Administrator</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PNC Global Investment Servicing (&#147;PNC&#148;), with its principal office located at 400 Bellevue
Parkway, Wilmington, Delaware 19809, serves as sub-administrator for the Fund. The
Sub-Administrator provides certain administrative services necessary for the Fund&#146;s operations
which do not include the investment advisory and portfolio management services provided by the
Investment Adviser. For these services and the related expenses borne by PNC, the Investment
Adviser pays a prorated monthly fee at the annual rate of 0.0275% of the first $10&nbsp;billion of the
aggregate average net assets of the Fund and all other funds advised by the Investment Adviser and
administered by PNC, 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" style="font-size: 10pt; margin-top: 12pt"><B>Regulatory Matters</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April&nbsp;24, 2008, the Investment Adviser entered into an administrative settlement with the
SEC to resolve the SEC&#146;s inquiry regarding prior frequent trading activity in shares of the GAMCO
Global Growth Fund (the &#147;Global Growth Fund&#148;) by one investor who was banned from the Global Growth
Fund in August&nbsp;2002. In the settlement, the SEC found that the Investment Adviser had violated
Section&nbsp;206(2) of the Investment Advisers Act, Section 17(d) of the 1940 Act and Rule&nbsp;17d-1
thereunder, and had aided and abetted and caused violations of Section&nbsp;12(d)(1)(B)(i) of the 1940
Act. Under the terms of the settlement, the Investment Adviser, while neither admitting nor
denying the SEC&#146;s findings and allegations, agreed, among other things, to pay the previously
reserved total of $16&nbsp;million (including a $5&nbsp;million penalty), of which at least $11&nbsp;million will
be distributed to shareholders of the Global Growth Fund in accordance with a plan to be developed
by an independent distribution consultant and approved by the independent directors of the Global
Growth Fund and the staff of the SEC, and to cease and desist from future violations of the above
referenced federal securities laws. The settlement will not have a material adverse impact on the
Investment Adviser or its ability to fulfill its obligations under the Advisory Agreement. On the
same day, the SEC filed a civil action against the Executive Vice President and Chief Operating
Officer of the Investment Adviser, alleging violations of certain federal securities laws arising
from the same matter. The officer is also an officer of the Fund, the Global Growth Fund and other
funds in the Gabelli/GAMCO fund complex. The officer denies the allegations and is continuing in
his positions with the Investment Adviser and the funds. The
Investment Adviser currently expects that any resolution of the action against the officer
will not have a
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->29<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">material adverse impact on the Investment Adviser or its ability to fulfill its
obligations under the Advisory Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In a separate matter, on January&nbsp;12, 2009, the SEC issued an administrative action approving a
final settlement of a previously disclosed matter with the Investment Adviser involving compliance
with Section 19(a) of the Investment Company of 1940 and Rule&nbsp;19a-1 thereunder by two closed-end
funds. These provisions require registered investment companies when making a distribution in the
nature of a dividend from sources other than net investment income to contemporaneously provide
written statements to shareholders that adequately disclose the source or sources of such
distribution. While the two funds sent annual statements and provided other materials containing
this information, the shareholders did not receive the notices required by Rule&nbsp;19a-1 with any of
the distributions that were made for 2002 and 2003. The Investment Adviser believes that the funds
have been in compliance with Section 19(a) and Rule&nbsp;19a-1 since the beginning of 2004. As part of
the settlement, in which the Investment Adviser neither admits nor denies the findings by the SEC,
the Investment Adviser agreed to pay a civil monetary penalty of $450,000 and to cease and desist
from causing violations of Section 19(a) and Rule&nbsp;19a-1. In connection with the settlement, the SEC
noted the remedial actions previously undertaken by the Investment Adviser.
</DIV>
<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PORTFOLIO TRANSACTIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal transactions are not entered into with affiliates of the Fund. However, Gabelli &#038;
Company, an affiliate of the Investment Adviser, may execute portfolio transactions on stock
exchanges and in the over-the-counter markets on an agency basis and receive a stated commission
therefor. For a more detailed discussion of the Fund&#146;s brokerage allocation practices, see
&#147;Portfolio Transactions&#148; in the SAI.
</DIV>
<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DIVIDENDS AND DISTRIBUTIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has a policy, which may be modified at any time by its Board, of paying distributions
on its common shares of $0.06 per share per month. This policy permits common shareholders 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 their shares. A portion of the Fund&#146;s
distributions on its common shares to date have included or have been estimated to include a return
of capital. Any return of capital that is a component of a distribution is not sourced from
realized or unrealized profits of the Fund and that portion should not be considered by investors
as yield or total return on their investment in the Fund. Shareholders should not assume that a
distribution from the Fund is comprised exclusively of net profits. The Fund pays on its common
shares a distribution of $0.06 per share each month and, if necessary, an adjusting distribution in
December which includes any additional income and net realized capital gains in excess of the
monthly distributions for that year to satisfy the minimum distribution requirements of the Code.
Each quarter, the Board reviews the amount of any potential distribution and the income, capital
gain or capital available. The Fund may retain for reinvestment, and pay the resulting federal
income taxes on, its net capital gain, if any. To avoid paying income tax at the corporate level,
the Fund distributes substantially all of its investment company taxable income and net capital
gain.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, for any calendar year, the total distributions exceed current and accumulated earnings and
profits, the excess will generally be treated as a tax-free return of capital up to the amount of a
shareholder&#146;s tax basis in the shares. The amount treated as a tax-free return of capital will
reduce a shareholder&#146;s tax basis in the shares, thereby increasing such shareholder&#146;s potential
gain or reducing his or her potential loss on the sale of the shares. Any amounts distributed to a
shareholder in excess of the basis in the shares will be taxable to the shareholder as capital
gain.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event the Fund distributes amounts in excess of its investment company taxable income
and net capital gain, such distributions will decrease the Fund&#146;s total assets more than otherwise
and, therefore, have the likely effect of increasing its expense ratio more than otherwise, as the
Fund&#146;s fixed expenses will become a larger percentage of the Fund&#146;s average net assets. In
addition, in order to make such distributions, the Fund might have to sell a portion of its
investment portfolio at a time when independent investment judgment might not dictate such action.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->30<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund, along with other closed-end registered investment companies advised by the
Investment Adviser, has obtained an exemption from Section 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 Fund 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 Fund&#146;s average NAV 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 Fund to make distributions with respect to its
preferred shares in accordance with such shares&#146; terms. If the total distributions required by the
proposed periodic pay-out policy exceeds the Fund&#146;s current and accumulated earnings and profits,
the excess will be treated as a return of capital. If the Fund&#146;s net investment income (including
net short-term capital gains) and net long-term capital gains for any year exceed the amount
required to be distributed under the periodic pay-out policy, the Fund generally intends to pay
such excess once a year, but may, in its discretion, retain and not distribute net long-term
capital gains to the extent of such excess. The Fund reserves the right, but does not currently
intend, to retain for reinvestment and pay the resulting U.S. federal income taxes on the excess of
its net realized long-term capital gains over its net short-term capital losses, if any.
</DIV>
<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AUTOMATIC DIVIDEND REINVESTMENT AND VOLUNTARY CASH PURCHASE PLAN</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Fund&#146;s Automatic Dividend Reinvestment and Voluntary Cash Purchase Plan (the
&#147;Plan&#148;), a shareholder whose common shares are registered in his or her own name will have all
distributions reinvested automatically by Computershare, which is agent under the Plan, unless the
shareholder 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 shareholder 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" style="font-size: 10pt; margin-top: 12pt"><B>Enrollment in the Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is the policy of the Fund to automatically reinvest dividends payable to common
shareholders. As a &#147;registered&#148; shareholder, you automatically become a participant in the Fund&#146;s
Plan. The Plan authorizes the Fund to credit common shares to participants upon an income dividend
or a capital gains distribution regardless of whether the shares are trading at a discount or a
premium to NAV. All distributions to shareholders whose shares are registered in their own names
will be automatically reinvested pursuant to the Plan in additional shares of the Fund. Plan
participants may send their share certificates to Computershare to be held in their dividend
reinvestment account. Registered shareholders wishing to receive their distribution in cash must
submit this request in writing to:
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">The Gabelli Utility Trust

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">c/o Computershare

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">P.O. Box 43010

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Providence, RI 02940-3010

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders requesting this cash election must include the shareholder&#146;s name and address as
they appear on the share certificate. Shareholders with additional questions regarding the Plan,
or requesting a copy of the terms of the Plan may contact Computershare at (800)&nbsp;336-6983.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If your shares are held in the name of a broker, bank, or nominee, you should contact such
institution. If such institution is not participating in the Plan, your account will be credited
with a cash dividend. In order to participate in the Plan through such institution, it may be
necessary for you to have your shares taken out of &#147;street name&#148; and re-registered in your own
name. Once registered in your own name, your dividends will be automatically reinvested. Certain
brokers participate in the Plan. Shareholders holding shares in &#147;street name&#148; at
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->31<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">participating
institutions will have dividends automatically reinvested. Shareholders wishing a cash
dividend at such institution must contact their broker to make this change.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of common shares distributed to participants in the Plan in lieu of cash dividends
is determined in the following manner. Under the Plan, whenever the market price of the Fund&#146;s
common shares is equal to or exceeds NAV at the time shares are valued for purposes of determining
the number of shares equivalent to the cash dividends or capital gains distribution, participants
are issued common shares valued at the greater of (i)&nbsp;the NAV as most recently determined or (ii)
95% of the then current market price of the Fund&#146;s common shares. The valuation date is the
dividend or distribution payment date or, if that date is not a NYSE trading day, the next trading
day. If the NAV of the common shares at the time of valuation exceeds the market price of the
common shares, participants will receive shares from the Fund valued at market price. If the Fund
should declare a dividend or capital gains distribution payable only in cash, Computershare will
buy common shares in the open market, or 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
Fund to issue shares at NAV if, following the commencement of such purchases, the market value of
the common shares exceed the then current NAV.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The automatic reinvestment of dividends and capital gains distributions will not relieve
participants of any income tax which may be payable on such distributions. A participant in the
Plan will be treated for U.S. federal income tax purposes as having received, on a dividend payment
date, a dividend or distribution in an amount equal to the cash the participant could have received
instead of shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund reserves the right to amend or terminate the 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 the 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 participants in the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Voluntary Cash Purchase Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders to increase their
investment in the Fund. In order to participate in the Voluntary Cash Purchase Plan, shareholders
must have their shares registered in their own name.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participants in the Voluntary Cash Purchase Plan have the option of making additional cash
payments to Computershare for investments in the Fund&#146;s shares at the then current market price.
Shareholders may send an amount from $250 to $10,000. Computershare will use these funds to
purchase shares in the open market on or about the 1st and 15th of each month. Computershare will
charge each shareholder who participates $0.75, plus a pro rata share of the brokerage commissions.
Brokerage charges for such purchases may be less than the usual brokerage charge for such
transactions. It is suggested that any voluntary cash payments be sent to Computershare, P.O. Box
43010, Providence, RI 02940-3010 such that Computershare receives such payments approximately 10
days before the 1st and 15th of the month. Funds not received at least five days before the
investment date shall be held for investment until the next purchase date. A payment may be
withdrawn without charge if notice is received by Computershare at least 48 hours before such
payment is to be invested.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders wishing to liquidate shares held at Computershare must do so in writing or by
telephone. Please submit your request to the above mentioned address or telephone number. Include
in your request your name, address and account number. The cost to liquidate shares is $2.50 per
transaction as well as the brokerage commission incurred. Brokerage charges may be less than the
usual brokerage charge for such transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For more information regarding the Plan, brochures are available by calling (914)&nbsp;921-5070 or
by writing directly to the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund reserves the right to amend or terminate the 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 the 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 participants in the Plan.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->32<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="112"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF THE SHARES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The following is a brief description of the terms of the Fund&#146;s shares. This description does
not purport to be complete and is qualified by reference to the Fund&#146;s Governing Documents. For
complete terms of the shares, please refer to the actual terms of such series, which are set forth
in the Governing Documents.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Common Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is authorized to issue an unlimited number of shares of beneficial interest, par
value $0.001 per share, in multiple classes and series thereof as determined from time to time by
the Board. The Board has authorized issuance of an unlimited number of shares of two classes, the
common shares and preferred shares. Each share within a particular class or series thereof has
equal voting, dividend, distribution and liquidation rights. The common shares are not redeemable
and have no preemptive, conversion or cumulative voting rights. In the event of liquidation, each
common share is entitled to its proportion of the Fund&#146;s assets after payment of debts and expenses
and the amounts payable to holders of the Fund&#146;s preferred shares ranking senior to the common
shares of the Fund as described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The common shares of the Fund are listed on the NYSE under the symbol &#147;GUT&#148; and began trading
July&nbsp;9, 1999. The average weekly trading volume of the common shares on the NYSE during the period
from January&nbsp;1, 2007 through December&nbsp;31, 2007 was 31,689 shares. The average weekly trading volume
of the common shares on the NYSE during the period from January&nbsp;1, 2008 through December&nbsp;31, 2008
was 44,304 shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of closed-end investment companies often trade on an exchange at prices lower than NAV.
Over the Fund&#146;s nine year history, the range fluctuated from a 59% premium in July&nbsp;2003 to a 3%
discount in November&nbsp;2000. Shortly after the inception of the Fund, the market price of the Fund
exceeded the NAV and the premium continues today. As of December&nbsp;31, 2008, the Fund trades at a
15.9% premium to its NAV. Because the market value of the common shares may be influenced by such
factors as dividend and distribution levels (which are in turn affected by expenses), dividend and
distribution stability, NAV, market liquidity, relative demand for and supply of such shares in the
market, unrealized gains, general market and economic conditions and other factors beyond the
control of the Fund, the Fund cannot assure you that common shares will trade at a price equal to
or higher than NAV in the future. The common shares are designed primarily for long-term investors
and you should not purchase the common shares if you intend to sell them soon after purchase.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is a closed-end, management investment company and, as such, its shareholders do not,
and will not, have the right to redeem their shares. The Fund, however, may repurchase its common
shares from time to time as and when it deems such a repurchase advisable. The Board has
determined that such repurchase may be made when the common shares are trading at a discount of 10%
(or such other percentage as the Board may determine from time to time) or more from NAV. Pursuant
to the 1940 Act, the Fund may repurchase its shares on a securities exchange (provided that the
Fund has informed its shareholders within the preceding six months of its intention to repurchase
such shares) or as otherwise permitted in accordance with Rule&nbsp;23c-1 under the 1940 Act. Under Rule
23c-1, certain conditions must be met for such alternative purchases regarding, among other things,
distribution of net income for the preceding fiscal year, asset coverage with respect to the Fund&#146;s
senior debt and equity securities, identity of the sellers, price paid, brokerage commissions,
prior notice to shareholders of an intention to purchase shares and purchasing in a manner and on a
basis which does not discriminate unfairly against the other shareholders through their interest in
the Fund. In addition, Rule&nbsp;23c-1 requires the Fund to file notices of such purchase with the SEC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When the Fund repurchases its common shares for a price below its NAV, the NAV of the common
shares that remains outstanding will be enhanced. This does not, however, necessarily mean that the
market price of the Fund&#146;s remaining outstanding common shares will be affected, either positively
or negatively. Further, interest on any borrowings made to finance the repurchase of common shares
will reduce the net income of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders whose common shares are registered in their own name will have all distributions
reinvested pursuant to the Plan. For a more detailed discussion of the Plan, see &#147;Automatic
Dividend Reinvestment and Voluntary Cash Purchase Plan.&#148;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->33<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Book Entry</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The common shares sold through this offering will initially be held in the name of Cede &#038; Co.
as nominee for the Depository Trust Company (&#147;DTC&#148;). The Fund will treat Cede &#038; Co. as the holder
of record of the common shares for all purposes. In accordance with the procedures of DTC,
however, purchasers of common shares will be deemed the beneficial owners of shares purchased for
purposes of distributions, voting and liquidation rights. Purchasers of common shares may obtain
registered certificates by contacting the transfer agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Preferred Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently, an unlimited number of the Fund&#146;s shares have been classified by the Board as
preferred shares, par value $0.001 per share. The terms of each series of preferred shares may be
fixed by the Board and may materially limit and/or qualify the rights of the holders of the Fund&#146;s
common shares. As of December&nbsp;31, 2008, the Fund had outstanding 1,173,024 shares of Series&nbsp;A
Preferred and 900 shares of Series&nbsp;B Preferred.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At all times, holders of shares of the Fund&#146;s preferred shares outstanding, voting as a single
class, will be entitled to elect two members of the Board, and holders of the preferred shares and
common shares, voting as a single class, will elect the remaining directors. See &#147;Anti-Takeover
Provisions of the Fund&#146;s Governing Documents.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions on the Series&nbsp;A Preferred accumulate at an annual rate of 5.625% 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 of each year. The
Series&nbsp;A Preferred is rated &#147;Aaa&#148; by Moody&#146;s. The Fund&#146;s outstanding Series&nbsp;A Preferred is
redeemable at the liquidation preference plus accumulated but unpaid dividends (whether or not
earned or declared) at the option of the Fund beginning July&nbsp;31, 2008. The Series&nbsp;A Preferred is
listed and traded on the NYSE under the symbol &#147;GUT PrA.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions on the Series&nbsp;B Preferred accumulate at a variable rate, usually set at a weekly
auction. The Series&nbsp;B Preferred is rated &#147;Aaa&#148; by Moody&#146;s and &#147;AAA&#148; by S&#038;P. The liquidation
preference of the Series&nbsp;B Preferred is $25,000 per share. The Fund generally may redeem the
outstanding Series&nbsp;B Preferred, in whole or in part, at any time other than during a non-call
period. The Series&nbsp;B Preferred is not traded on any public exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows (i)&nbsp;the classification of shares, (ii)&nbsp;the number of shares
authorized in each class and (iii)&nbsp;the number of shares outstanding in each class as of December
31, 2008.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Amount</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Amount</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Title Of Class</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Authorized</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Outstanding</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common Shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">unlimited</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,430,021</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Series&nbsp;A Preferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">unlimited</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,173,024</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Series&nbsp;B Preferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">unlimited</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">900</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2008, the Fund does not hold any shares for its account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon a liquidation, each holder of preferred shares will be entitled to receive out of the
assets of the Fund available for distribution to shareholders (after payment of claims of the
Fund&#146;s creditors but before any distributions with respect to the Fund&#146;s common shares or any other
class of capital shares of the Fund ranking junior to the preferred shares as to liquidation
payments) an amount per share equal to such share&#146;s liquidation preference plus any accumulated but
unpaid distributions (whether or not earned or declared, excluding interest thereon) to the date of
distribution, and such shareholders shall be entitled to no further participation in any
distribution or payment in connection with such liquidation. Each series of preferred shares ranks
on a parity with any other series of preferred shares of the Fund as to the payment of
distributions and the distribution of assets upon liquidation, and is junior to the Fund&#146;s
obligations with respect to any outstanding senior securities representing
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->34<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">debt. The preferred
shares carries one vote per share on all matters on which such shares are entitled to vote. The
preferred shares will, upon issuance, be fully paid and nonassessable and will have no preemptive,
exchange or conversion rights. The Board may by resolution classify or reclassify any authorized
but unissued capital shares of the Fund from time to time by setting or changing the preferences,
conversion or other rights, voting powers, restrictions, limitations as to
distributions or terms or conditions of redemption. The Fund will not issue any class of
capital shares senior to the preferred shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Recent Market Events</I></B>. Since February&nbsp;2008, most auction-rate preferred shares, including our
Series&nbsp;B Preferred, have been unable to hold successful auctions and holders of such shares have
suffered reduced liquidity. The number of Series&nbsp;B Preferred subject to bid orders by potential
holders has been less than the number of Series&nbsp;B Preferred subject to sell orders. Therefore, the
weekly auctions have failed, and the dividend rate has been the maximum rate. Holders that have
submitted sell orders have not been able to sell any or all of the Series&nbsp;B Preferred for which
they have submitted sell orders. The current maximum rate is 125% of the seven day Telerate/British
Bankers Association LIBOR on the day of such auction. These failed auctions have been an industry
wide problem and may continue to occur in the future. Any current or potential holder of
auction-rate preferred shares faces the risk that auctions will continue to fail, or will fail
again at some point in the future, and that he or she may not be able to sell his or her shares
through the auction process.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Asset Maintenance Requirements</I></B>. In addition to maintaining agency guidelines established by
Moody&#146;s and S&#038;P, the Fund must also satisfy asset maintenance requirements under the 1940 Act with
respect to its preferred shares. Under the 1940 Act, debt or additional preferred shares may be
issued only if immediately after such issuance the value of the Fund&#146;s total assets (less ordinary
course liabilities) is at least 300% of the amount of any debt outstanding and at least 200% of the
amount of any preferred shares and debt outstanding. The Fund is required under the Statement of
Preferences of each series of preferred shares to determine whether it has, as of the last business
day of each March, June, September and December of each year, an &#147;asset coverage&#148; (as defined in
the 1940 Act) of at least 200% (or such higher or lower percentage as may be required at the time
under the 1940 Act) with respect to all outstanding senior securities of the Fund that are debt or
shares, including any outstanding preferred shares. If the Fund fails to maintain the asset
coverage required under the 1940 Act on such dates and such failure is not cured on or before 60
days, in the case of the Fixed Rate Preferred Shares, or 10 business days, in the case of the
Variable Rate Preferred Shares, the Fund may, and in certain circumstances will be required to,
mandatorily redeem shares of preferred shares sufficient to satisfy such asset coverage.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Liquidation Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of any voluntary or involuntary liquidation, dissolution or winding up of the
Fund, the holders of preferred shares then outstanding will be entitled to receive a preferential
liquidating distribution, which is expected to equal the original purchase price per preferred
share plus accumulated and unpaid dividends, whether or not declared, before any distribution of
assets is made to holders of common shares. After payment of the full amount of the liquidating
distribution to which they are entitled, the holders of preferred shares will not be entitled to
any further participation in any distribution of assets by the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Voting Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise stated in this Prospectus, specified in the Fund&#146;s Governing Documents or
resolved by the Board or as otherwise required by applicable law, holders of preferred shares shall
be entitled to one vote per share held on each matter submitted to a vote of the shareholders of
the Fund and will vote together with holders of common shares and of any other preferred shares
then outstanding as a single class.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the election of the Fund&#146;s Trustees, holders of the outstanding preferred
shares, voting together as a single class, will be entitled at all times to elect two of the Fund&#146;s
Trustees, and the remaining Trustees will be elected by holders of common shares and holders of
preferred shares, voting together as a single class. In addition, if (i)&nbsp;at any time dividends and
distributions on outstanding preferred shares are unpaid in an amount equal to at least two full
years&#146; dividends and distributions thereon and sufficient cash or specified securities have not
been deposited with the applicable paying agent for the payment of such accumulated dividends and
distributions or (ii)&nbsp;at any time holders of any other series of preferred shares are entitled to
elect a majority of the Trustees of the Fund under the 1940 Act or the applicable Statement of
Preferences creating such shares, then the number of Trustees
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->35<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">constituting the Board will be
adjusted such that, when added to the two Trustees elected exclusively by the holders of preferred
shares as described above, would then constitute a simple majority of the Board as so adjusted.
Such additional Trustees will be elected by the holders of the outstanding preferred shares, voting
together as a single class, at a special meeting of shareholders which will be called as soon as
practicable and will be held not less than
ten nor more than twenty days after the mailing date of the meeting notice. If the Fund fails
to send such meeting notice or to call such a special meeting, the meeting may be called by any
preferred shareholder on like notice. The terms of office of the persons who are Trustees at the
time of that election will continue. If the Fund thereafter pays, or declares and sets apart for
payment in full, all dividends and distributions payable on all outstanding preferred shares for
all past dividend periods or the holders of other series of preferred shares are no longer entitled
to elect such additional Trustees, the additional voting rights of the holders of the preferred
shares as described above will cease, and the terms of office of all of the additional Trustees
elected by the holders of the preferred shares (but not of the Trustees with respect to whose
election the holders of common shares were entitled to vote or the two Trustees the holders of
preferred shares have the right to elect as a separate class in any event) will terminate at the
earliest time permitted by law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So long as any preferred shares are outstanding, the Fund will not, without the affirmative
vote of the holders of a majority (as defined in the 1940 Act) of the preferred shares outstanding
at the time, and present and voting on such matter, voting separately as one class, amend, alter or
repeal the provisions of the Fund&#146;s Governing Documents whether by merger, consolidation or
otherwise, so as to materially adversely affect any of the rights, preferences or powers expressly
set forth in the Governing Documents with respect to such preferred shares, unless the Fund obtains
written confirmation from Moody&#146;s, S&#038;P or any such other rating agency then rating the preferred
shares that such amendment, alteration or repeal would not impair the rating then assigned by such
rating agency to the preferred shares, in which case the vote or consent of the holders of the
preferred shares are not required. Also, to the extent permitted under the 1940 Act, in the event
shares of more than one series of preferred shares are outstanding, the Fund will not approve any
of the actions set forth in the preceding sentence which materially adversely affect the rights,
preferences or powers expressly set forth in the Charter with respect to such shares of a series of
preferred shares differently than those of a holder of shares of any other series of preferred
shares without the affirmative vote of the holders of at least a majority of the preferred shares
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 rights are affected
differently). For purposes of this paragraph, no matter shall be deemed to adversely affect any
right, preference or power unless such matter (i)&nbsp;adversely alters or abolishes any preferential
right of such series; (ii)&nbsp;creates, adversely alters or abolishes any right in respect of
redemption of such series; or (iii)&nbsp;creates or adversely alters (other than to abolish) any
restriction on transfer applicable to such series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless a higher percentage is required under the Governing Documents or applicable provisions
of the Delaware Statutory Trust Act or the 1940 Act, 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, will be required to approve any plan of reorganization adversely affecting the preferred
shares or any action requiring a vote of security holders under Section 13(a) of the 1940 Act,
including, among other things, changes in the Fund&#146;s investment objective or changes in the
investment restrictions described as fundamental policies under &#147;Investment Objective and Policies&#148;
and &#147;Investment Restrictions&#148; in this Prospectus and the SAI. For purposes of the preferred share
voting rights described in the foregoing sentence, except as otherwise required under the 1940 Act,
the phrase &#147;vote of the holders of a majority of the outstanding preferred shares&#148; (or any like
phrase) means, in accordance with Section&nbsp;2(a)(42) of the 1940 Act, the vote, at the annual or a
special meeting of the shareholders of the Fund duly called (i)&nbsp;of 67% or more of the preferred
shares present at such meeting, 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. The class vote of holders of preferred shares described above in each case will
be in addition to a separate vote of the requisite percentage of common shares, and any other
preferred shares, voting together as a single class, that may be necessary to authorize the action
in question. An increase in the number of authorized preferred shares pursuant to the Governing
Documents or the issuance of additional shares of any series of preferred shares pursuant to the
Governing Documents shall not in and of itself be considered to adversely affect the rights and
preferences of the preferred shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&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 without further action by the shareholders if the
Board determines that such modification is necessary to prevent a reduction in rating of the
preferred shares by Moody&#146;s and/or S&#038;P (or such
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->36<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">other rating agency then rating the preferred
shares at the request of the Fund), 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 shares in view of advice to the
Fund by the relevant rating agencies that such modification would not adversely affect its
then-current rating of the preferred shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing voting provisions will not apply to any series of 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: 12pt"><B>Limitation on Issuance of Preferred Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So long as the Fund has preferred shares outstanding, subject to receipt of approval from the
rating agencies of each series of preferred shares outstanding, and subject to compliance with the
Fund&#146;s investment objective, policies and restrictions, the Fund may issue and sell shares of one
or more other series of additional preferred shares provided that the Fund will, immediately after
giving effect to the issuance of such additional preferred shares and to its receipt and
application of the proceeds thereof (including, without limitation, to the redemption of preferred
shares to be redeemed out of such proceeds), have an &#147;asset coverage&#148; for all senior securities of
the Fund which are shares, as defined in the 1940 Act, of at least 200% of the sum of the
liquidation preference of the shares of preferred shares of the Fund then outstanding and all
indebtedness of the Fund constituting senior securities and no such additional preferred shares
will have any preference or priority over any other preferred shares of the Fund upon the
distribution of the assets of the Fund or in respect of the payment of dividends or distributions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will consider from time to time whether to offer additional preferred shares or
securities representing indebtedness and may issue such additional securities if the Board
concludes that such an offering would be consistent with the Fund&#146;s Charter and applicable law, and
in the best interest of existing common shareholders.
</DIV>
<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ANTI-TAKEOVER PROVISIONS OF THE FUND&#146;S GOVERNING DOCUMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund presently has provisions in its Governing Documents which could have the effect of
limiting, in each case, (i)&nbsp;the ability of other entities or persons to acquire control of the
Fund, (ii)&nbsp;the Fund&#146;s freedom to engage in certain transactions, or (iii)&nbsp;the ability of the Fund&#146;s
trustees or shareholders to amend the Governing Documents or effectuate changes in the Fund&#146;s
management. These provisions of the Governing Documents of the Fund may be regarded as
&#147;anti-takeover&#148; provisions. The Board is divided into three classes, each having a term of no more
than three years (except, to ensure that the term of a class of the Fund&#146;s trustees expires each
year, one class of the Fund&#146;s trustees will serve an initial one-year term and three-year terms
thereafter and another class of its trustees will serve an initial two-year term and three-year
terms thereafter). Each year the term of one class of trustees will expire. Accordingly, only
those trustees in one class may be changed in any one year, and it would require a minimum of two
years to change a majority of the Board. Such system of electing trustees may have the effect of
maintaining the continuity of management and, thus, make it more difficult for the shareholders of
the Fund to change the majority of trustees. See &#147;Trustees and Officers.&#148; A trustee of the Fund
may be removed with or without cause by 66 2/3% of the votes entitled to be cast for the election
of such trustees. Special voting requirements also apply to mergers into or a sale of all or
substantially all of the Fund&#146;s assets and conversion of the Fund into an open-end fund (or other
closed-end fund commonly known as an &#147;interval fund&#148;). These special voting requirements are 75%
of the outstanding voting shares (together with a separate vote by the holders of any preferred
shares outstanding). In addition, 80% of the holders of the outstanding voting securities of the
Fund voting as a class is generally required in order to authorize any of the following
transactions:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the merger or consolidation of the Fund with or into any other corporation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the issuance of any securities of the Fund to any person or entity for cash;
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->37<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the sale, lease or exchange of all or any substantial part of the assets of the Fund
to 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 valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the sale, lease or exchange to the Fund, in exchange for securities of the Fund, 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 valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the purchase of the Fund&#146;s common shares by the Fund from any other person or
entity;</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">if such corporation, person or entity is directly, or indirectly through affiliates, the beneficial
owner of more than 5% of the outstanding shares of the Fund. However, such vote would not be
required when, under certain conditions, the Board approves the transaction. Reference is made to
the Governing Documents of the Fund, on file with the SEC, for the full text of these provisions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of the Governing Documents described above could have the effect of depriving
the owners of shares in the Fund 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 Fund 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 shareholder.
</DIV>
<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CLOSED-END FUND STRUCTURE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is a non-diversified, closed-end management investment company (commonly referred to
as a closed-end fund). Closed-end funds differ from open-end funds (which are generally referred to
as mutual funds) in that closed-end funds generally list their shares for trading on a stock
exchange and do not redeem their shares at the request of the shareholder. This means that if you
wish to sell your shares of a closed-end fund you must trade them on the market like any other
shares at the prevailing market price at that time. In a mutual fund, if the shareholder wishes to
sell shares of the Fund, the mutual fund will redeem or buy back the shares at NAV. Also, mutual
funds generally offer new shares on a continuous basis to new investors, and closed-end funds
generally do not. The continuous inflows and outflows of assets in a mutual fund can make it
difficult to manage the Fund&#146;s investments. By comparison, closed-end funds are generally able to
stay more fully invested in securities that are consistent with their investment objective, to have
greater flexibility to make certain types of investments and to use certain investment strategies
such as financial leverage and investments in illiquid securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of closed-end funds often trade at a discount to their NAV. Because of this possibility
and the recognition that any such discount may not be in the interest of shareholders, the Board
might consider from time to time engaging in open-market repurchases, tender offers for shares or
other programs intended to reduce a discount. We cannot guarantee or assure, however, that the
Board will decide to engage in any of these actions. Nor is there any guarantee or assurance that
such actions, if undertaken, would result in the shares trading at a price equal or close to NAV
per share. The Board might also consider converting the Fund to an open-end mutual fund, which
would also require a supermajority vote of the shareholders of the Fund and a separate vote of any
outstanding preferred shares. We cannot assure you that the Fund&#146;s common shares will not trade at
a discount.
</DIV>
<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>NET ASSET VALUE</B>
</DIV>


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

<P align="center" style="font-size: 10pt"><!-- Folio -->38<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portfolio securities primarily traded on a foreign market are generally valued at the
preceding closing values of such securities on the relevant market, but may be fair valued pursuant
to procedures established by the Board if market conditions change significantly after the close of
the foreign market but prior to the close of business on the day the securities are being valued.
Debt instruments with remaining maturities of 60&nbsp;days or less that are not credit impaired are
valued at amortized cost, unless the Board determines such amount does not reflect the securities&#146;
fair value, in which case these securities will be fair valued as determined by the Board. Debt
instruments having a maturity greater than 60&nbsp;days for which market quotations are readily
available are valued at the average of the latest bid and asked prices. If there were no asked
prices quoted on such day, the security is valued using the closing bid price. 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" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities and assets for which market quotations are not readily available are fair valued as
determined by the Board. Fair valuation methodologies and procedures may include, but are not
limited to: analysis and review of available financial and 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. dollar value ADR securities at the close of
the U.S. exchange; and evaluation of any other information that could be indicative of the value of
the security.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund obtains valuation on the basis of prices provided by one or more pricing services
approved by the Board. All other investment assets, including restricted and not readily marketable
securities, are valued at their fair value as determined in good faith under procedures established
by and under the general supervision of the Board. 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 Fund determines its NAV would, if such developments
had been reflected in such principal markets, likely have had more than a minimal effect on the
Fund&#146;s asset value per share, the Fund may fair value such portfolio securities based on available
market information as of the time the Fund determines its NAV.
</DIV>
<DIV align="left">
<A name="116"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TAXATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion is a brief summary of certain U.S. federal income tax considerations
affecting the Fund and its shareholders. This discussion reflects applicable tax laws of the United
States as of the date of this Prospectus, 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. No attempt is made to present a detailed explanation of all U.S. federal, state,
local and foreign tax concerns affecting the Fund and its shareholders (including shareholders
owning a large position in the Fund), and the discussions set forth herein do not constitute tax
advice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The discussion set forth herein does not constitute tax advice and potential investors are
urged to consult their own tax advisers to determine the tax consequences to them of investing in
the Fund.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Taxation of the Fund</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has elected to be treated and has qualified, and intends to continue to qualify, as a
regulated investment company under Subchapter M of the Code. Accordingly, the Fund must, among
other things, meet the following requirements regarding the source of its income and the
diversification of its assets:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Fund must derive in each taxable year at least 90% of its gross income from
the following sources, which are referred to herein as &#147;Qualifying Income&#148;: (a)
dividends, interest (including tax-exempt interest), payments with respect to certain
securities loans, and gains from the sale or other disposition of shares, securities or
foreign currencies, and 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 foreign currencies; and (b)&nbsp;interests in publicly traded
partnerships that are treated as partnerships for U.S. federal income tax purposes and
that derive less than 90% of their gross income from the items described in (a)&nbsp;above
(each a &#147;Qualified Publicly Traded Partnership&#148;).</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->39<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


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


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Fund must 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 the Fund&#146;s total assets is
represented by cash and cash items, U.S. 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
the Fund&#146;s 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 the Fund&#146;s total assets is
invested
in the securities (other than U.S. government securities and the securities of other
regulated investment companies) of (I)&nbsp;any one issuer, (II)&nbsp;any two or more issuers
that the Fund 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 Qualified Publicly
Traded Partnerships.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a regulated investment company, the Fund generally will not be subject to U.S. federal
income tax on income and gains that the Fund distributes to its shareholders, provided that it
distributes each taxable year at least the sum of (i)&nbsp;90% of the Fund&#146;s investment company taxable
income (which includes, among other items, dividends, interest and the excess of any net short-term
capital gain over net long-term capital loss and other taxable income, other than any net long-term
capital gain, reduced by deductible expenses) determined without regard to the deduction for
dividends paid and (ii)&nbsp;90% of the Fund&#146;s net tax-exempt interest (the excess of its gross
tax-exempt interest over certain disallowed deductions). The Fund intends to distribute
substantially all of such income at least annually. The Fund will be subject to income tax at
regular corporation 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Code imposes a 4% nondeductible excise tax on the Fund to the extent the Fund does not
distribute by the end of any calendar year an amount at least equal to the sum of (i)&nbsp;98% of its
ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii)
98% of its capital gain in excess of its capital loss (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 the Fund&#146;s fiscal year). In addition, the minimum amounts that must be distributed in any year
to avoid the excise tax will be increased or decreased to reflect any under-distribution or
over-distribution, as the case may be, from the previous year. While the Fund intends to distribute
any income and capital gain in the manner necessary to minimize imposition of the 4% excise tax,
there can be no assurance that sufficient amounts of the Fund&#146;s taxable income and capital gain
will be distributed to entirely avoid the imposition of the excise tax. In that event, the Fund
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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If for any taxable year the Fund 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 shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Taxation of Shareholders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions paid to you by the Fund from its net realized long-term capital gains, if any,
that the Fund designates as capital gains dividends (&#147;capital gain dividends&#148;) are taxable as
long-term capital gains, regardless of how long you have held your shares. All other dividends paid
to you by the Fund (including dividends from short-term capital gains) from its current or
accumulated earnings and profits (&#147;ordinary income dividends&#148;) are generally subject to tax as
ordinary income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special rules apply, however, to ordinary income dividends paid to individuals with respect to
taxable years beginning on or before December&nbsp;31, 2010. If you are an individual, any such ordinary
income dividend that you receive from the Fund generally will be eligible for taxation at the
Federal rates applicable to long-term capital gains (currently at a maximum rate of 15%) to the
extent that (i)&nbsp;the ordinary income dividend is attributable to &#147;qualified dividend income&#148; (i.e.,
generally dividends paid by U.S. corporations and certain foreign corporations) received by the
Fund, (ii)&nbsp;the Fund satisfies certain holding period and other requirements with respect to the
stock on which such qualified dividend income was paid and (iii)&nbsp;you satisfy certain holding period
and other requirements with respect to your shares. There can be no assurance as to what portion of
the Fund&#146;s ordinary income dividends will constitute qualified dividend income.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->40<!-- /Folio -->
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any distributions you receive that are in excess of the Fund&#146;s current or accumulated earnings
and profits will be treated as a tax-free return of capital to the extent of your adjusted tax
basis in your shares, and thereafter as capital gain from the sale of shares. The amount of any
Fund distribution that is treated as a tax-free return of capital will reduce your adjusted tax
basis in your shares, thereby increasing your potential gain or reducing your potential loss on any
subsequent sale or other disposition of your shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends and other taxable distributions are taxable to you even if they are reinvested in
additional common shares of the Fund. Dividends and other distributions paid by the Fund are
generally treated under the Code as received by you at the time the dividend or distribution is
made. If, however, the Fund pays you a dividend in January that was declared in the previous
October, November or December and you were the shareholder 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 Fund and
received by you on December&nbsp;31 of the year in which the dividend was declared.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will send you information after the end of each year setting forth the amount and tax
status of any distributions paid to you by the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sale or other disposition of shares of the Fund will generally result in capital gain or
loss to you, and will be long-term capital gain or loss if you have held such shares for more than
one year at the time of sale. Any loss upon the sale or exchange of 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) by you with respect to such
shares. Any loss you realize on a sale or exchange of shares will be disallowed if you acquire
other shares (whether through the automatic reinvestment of dividends or otherwise) within a 61-day
period beginning 30&nbsp;days before and ending 30&nbsp;days after your sale or exchange of the shares. In
such case, your tax basis in the shares acquired will be adjusted to reflect the disallowed loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may be required to withhold, for U.S. federal backup withholding tax purposes, a
portion of the dividends, distributions and redemption proceeds payable to shareholders who fail to
provide the Fund (or its agent) with their correct taxpayer identification number (in the case of
individuals, generally, their social security number) or to make required certifications, or who
have been notified by the IRS that they are subject to backup withholding. Certain shareholders are
exempt from backup withholding. Backup withholding is not an additional tax and any amount withheld
may be refunded or credited against your U.S. federal income tax liability, if any, provided that
you furnish the required information to the IRS.
</DIV>
<DIV align="left">
<A name="117"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CUSTODIAN, TRANSFER AGENT, AUCTION AGENT AND DIVIDEND DISBURSING AGENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank of New York Mellon Corporation, located at 135 Santilli Highway, Everett,
Massachusetts 02149, serves as the custodian of the Fund&#146;s assets pursuant to a custody agreement.
Under the custody agreement, the Custodian holds the Fund&#146;s assets in compliance with the 1940 Act.
For its services, the Custodian receives a monthly fee based upon the average weekly value of the
total assets of the Fund, plus certain charges for securities transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Computershare, located at 250 Royall Street, Canton, Massachusetts 02021, serves as the Fund&#146;s
dividend disbursing agent, as agent under the Plan and as transfer agent and registrar with respect
to the common shares of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Computershare also serves as the Fund&#146;s transfer agent, registrar, dividend paying agent and
redemption agent with respect to the Series&nbsp;A Preferred.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank of New York, located at 100 Church Street, New York, New York 10286, also serves as
the Fund&#146;s auction agent, transfer agent, registrar, dividend paying agent and redemption agent
with respect to the Series&nbsp;B Preferred.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->41<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="118"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PLAN OF DISTRIBUTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may sell shares through underwriters or dealers, directly to one or more purchasers,
through agents, to or through underwriters or dealers, or through a combination of any such methods
of sale. The applicable Prospectus Supplement will identify any underwriter or agent involved in
the offer and sale of our shares, any sales loads, discounts, commissions, fees or other
compensation paid to any underwriter, dealer or agent, the offering price, net proceeds and use of
proceeds and the terms of any sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The distribution of our shares may be effected from time to time in one or more transactions
at a fixed price or prices, which may be changed, at prevailing market prices at the time of sale,
at prices related to such prevailing market prices, or at negotiated prices, provided, however,
that the offering price per share in the case of common shares, must equal or exceed the NAV per
share, exclusive of any underwriting commissions or discounts, of our common shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may sell our shares directly to, and solicit offers from, institutional investors or others
who may be deemed to be underwriters as defined in the Securities Act of 1933 (the &#147;Securities
Act&#148;) for any resales of the securities. In this case, no underwriters or agents would be involved.
We may use electronic media, including the Internet, to sell offered securities directly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the sale of our shares, underwriters or agents may receive compensation
from us in the form of discounts, concessions or commissions. Underwriters may sell our shares to
or through dealers, and such dealers may receive compensation in the form of discounts, concessions
or commissions from the underwriters and/or commissions from the purchasers for whom they may act
as agents. Underwriters, dealers and agents that participate in the distribution of our shares may
be deemed to be underwriters under the Securities Act, and any discounts and commissions they
receive from us and any profit realized by them on the resale of our shares may be deemed to be
underwriting discounts and commissions under the Securities Act. Any such underwriter or agent will
be identified and any such compensation received from us will be described in the applicable
Prospectus Supplement. The maximum commission or discount to be received by any FINRA member or
independent broker-dealer will not exceed eight percent. We will not pay any compensation to any
underwriter or agent in the form of warrants, options, consulting or structuring fees or similar
arrangements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a Prospectus Supplement so indicates, we may grant the underwriters an option to purchase
additional shares at the public offering price, less the underwriting discounts and commissions,
within 45&nbsp;days from the date of the Prospectus Supplement, to cover any over-allotments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under agreements into which we may enter, underwriters, dealers and agents who participate in
the distribution of our shares may be entitled to indemnification by us against certain
liabilities, including liabilities under the Securities Act. Underwriters, dealers and agents may
engage in transactions with us, or perform services for us, in the ordinary course of business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If so indicated in the applicable Prospectus Supplement, we will ourselves, or will authorize
underwriters or other persons acting as our agents to solicit offers by certain institutions to
purchase our shares from us pursuant to contracts providing for payment and delivery on a future
date. Institutions with which such contacts may be made include commercial and savings banks,
insurance companies, pension funds, investment companies, educational and charitable institutions
and others, but in all cases such institutions must be approved by us. The obligation of any
purchaser under any such contract will be subject to the condition that the purchase of the shares
shall not at the time of delivery be prohibited under the laws of the jurisdiction to which such
purchaser is subject. The underwriters and such other agents will not have any responsibility in
respect of the validity or performance of such contracts. Such contracts will be subject only to
those conditions set forth in the Prospectus Supplement, and the Prospectus Supplement will set
forth the commission payable for solicitation of such contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent permitted under the 1940 Act and the rules and regulations promulgated
thereunder, the underwriters may from time to time act as brokers or dealers and receive fees in
connection with the execution of our portfolio transactions after the underwriters have ceased to
be underwriters and, subject to certain restrictions, each may act as a broker while it is an
underwriter.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->42<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Prospectus and accompanying Prospectus Supplement in electronic form may be made available
on the websites maintained by underwriters. The underwriters may agree to allocate a number of
securities for sale to their online brokerage account holders. Such allocations of securities for
Internet distributions will be made on the same basis as other allocations. In addition, securities
may be sold by the underwriters to securities dealers who resell securities to online brokerage
account holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to comply with the securities laws of certain states, if applicable, our shares
offered hereby will be sold in such jurisdictions only through registered or licensed brokers or
dealers.
</DIV>


<DIV align="left">
<A name="119"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain legal matters will be passed on by Willkie Farr &#038; Gallagher LLP, 787 Seventh Avenue,
New York, New York 10019 in connection with the offering of the preferred shares. Counsel for the
Fund will rely, as to certain matters of Delaware law, on &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;.
</DIV>

<DIV align="left">
<A name="120"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; serves as the Independent Registered Public Accounting Firm of the Fund and
audits the financial statements of the Fund. &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; is located at &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;.
</DIV>
<DIV align="left">
<A name="121"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ADDITIONAL INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is subject to the informational requirements of the Securities Act of 1934 (the &#147;1934
Act&#148;) and the 1940 Act and in accordance therewith files, or will file, reports and other
information with the SEC. Reports, proxy statements and other information filed by the Fund with
the SEC pursuant to the informational requirements of the 1934 Act and the 1940 Act can be
inspected and copied at the public reference facilities maintained by the SEC, 100 F Street, N.E.,
Washington, D.C. 20549. The SEC maintains a web site at http://www.sec.gov containing reports,
proxy and information statements and other information regarding registrants, including the Fund,
that file electronically with the SEC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s common shares and Series&nbsp;A Preferred are listed on the NYSE. Reports, proxy
statements and other information concerning the Fund and filed with the SEC by the Fund will be
available for inspection at the NYSE, 20 Broad Street, New York, New York, 10005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Prospectus constitutes part of a Registration Statement filed by the Fund with the SEC
under the Securities Act and the 1940 Act. This Prospectus omits certain of the information
contained in the Registration Statement, and reference is hereby made to the Registration Statement
and related exhibits for further information with respect to the Fund and the shares offered
hereby. Any statements contained herein concerning the provisions of any document are not
necessarily complete, and, in each instance, reference is made to the copy of such document filed
as an exhibit to the Registration Statement or otherwise filed with the SEC. Each such statement is
qualified in its entirety by such reference. The complete Registration Statement may be obtained
from the SEC upon payment of the fee prescribed by its rules and regulations or free of charge
through the SEC&#146;s web site (http://www.sec.gov).
</DIV>
<DIV align="left">
<A name="122"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PRIVACY PRINCIPLES OF THE FUND</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is committed to maintaining the privacy of its shareholders and to safeguarding their
non-public personal information. The following information is provided to help you understand what
personal information the Fund collects, how the Fund protects that information and why, in certain
cases, the Fund may share information with select other parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, the Fund does not receive any non-public personal information relating to its
shareholders, although certain non-public personal information of its shareholders may become
available to the Fund. The Fund does not disclose any non-public personal information about its
shareholders or former shareholders to anyone,
except as permitted by law or as is necessary in order to service shareholder accounts (for
example, to a transfer agent or third party administrator).
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->43<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund restricts access to non-public personal information about its shareholders to
employees of the Fund&#146;s Investment Adviser and its affiliates with a legitimate business need for
the information. The Fund maintains physical, electronic and procedural safeguards designed to
protect the non-public personal information of its shareholders.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->44<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="123"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An SAI dated as of &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> &#95;&#95;&#95;&#093;, 2009, 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 Fund at its
address at One Corporate Center, Rye, New York 10580-1422 or by calling the Fund toll-free at (800)
GABELLI (422-3554). The Table of Contents of the SAI is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="95%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Page</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#124">THE FUND
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A-1</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#125">INVESTMENT OBJECTIVE AND POLICIES
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A-1</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#126">INVESTMENT RESTRICTIONS
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A-11</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#127">MANAGEMENT OF THE FUND
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A-12</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#128">PORTFOLIO TRANSACTIONS
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A-21</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#129">REPURCHASE OF COMMON SHARES
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A-22</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#130">PORTFOLIO TURNOVER
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A-23</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#131">TAXATION
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A-23</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#132">BENEFICIAL OWNERS
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A-27</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#133">GENERAL INFORMATION
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A-28</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#134">Appendix&nbsp;A &#151; Proxy Voting Policies and Procedures
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A-31</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->45<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No person has been authorized to give any information or to make any representations in
connection with this offering other than those contained in this Prospectus in connection with the
offer contained herein, and, if given or made, such other information or representations must not
be relied upon as having been authorized by the Fund, the Investment Adviser or the underwriters.
Neither the delivery of this Prospectus nor any sale made hereunder will, under any circumstances,
create any implication that there has been no change in the affairs of the Fund since the date
hereof or that the information contained herein is correct as of any time subsequent to its date.
This Prospectus does not constitute an offer to sell or a solicitation of an offer to buy any
securities other than the securities to which it relates. This Prospectus does not constitute an
offer to sell or the solicitation of an offer to buy such securities in any circumstance in which
such an offer or solicitation is unlawful.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->46<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>$100,000,000</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><IMG src="y75448y7544800.gif" alt="GABELLI LOGO">
</DIV>



<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>The Gabelli Utility Trust<BR>
Common Shares of Beneficial Interest</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PROSPECTUS</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>&#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> &#95;&#95;&#95;&#093;, 2009</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->47<!-- /Folio -->
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Filed Pursuant to Rule&nbsp;497
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 6pt">Registration
Statement No.&nbsp;333-
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PROSPECTUS SUPPLEMENT</B><BR>
(To Prospectus dated &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;, 2009)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <B>Shares</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">&#091;GRAPHIC OMITTED&#093;

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Common Shares of Beneficial Interest</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are offering for sale <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;shares of our common shares. Our common shares are traded
on the New York Stock Exchange under the symbol &#147;GUT.&#148; Our 5.625% Series&nbsp;A Cumulative Preferred
Shares are listed on the New York Stock Exchange under the symbol &#147;GUTPrA&#148;. The last reported sale
price for our common shares on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> was $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per share. The net asset value of the
Fund&#146;s common shares at the close of business on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, was $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should review the information set forth under &#147;Risk Factors and Special Considerations&#148; on
page <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> of the accompanying Prospectus before investing in our common shares.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Per Share</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Total (1)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Public offering price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Underwriting discounts and commissions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds, before expenses, to us</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left">

<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt">(1)&nbsp;&nbsp;&nbsp;&nbsp;The aggregate expenses of the offering are estimated to be $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, which represents
approximately $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per share.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The underwriters may also purchase up to an additional <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> common shares from us at
the public offering price, less underwriting discounts and commissions, to cover over-allotments,
if any, within 30&nbsp;days after the date of this Prospectus Supplement. If the over-allotment option
is exercised in full, the total proceeds, before expenses, to the Fund would be $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and the
total underwriting discounts and commissions would be $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>. The common shares will be ready
for delivery on or about <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> , <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should read this Prospectus Supplement and the accompanying Prospectus before deciding
whether to invest in our common shares and retain it for future reference. The Prospectus
Supplement and the accompanying Prospectus contain important information about us. Material that
has been incorporated by reference and other information about us can be obtained from us by
calling 1-800-GABELLI (422-3554) or from the Securities and Exchange Commission&#146;s (&#147;SEC&#148;) website
(http://www.sec.gov).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the SEC nor any state securities commission has approved or disapproved these
securities or determined if this Prospectus Supplement is truthful or complete. Any representation
to the contrary is a criminal offense.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> , <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->P-1<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Prospectus Supplement

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="95%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center" style="border-bottom: 1px solid #000000">Page</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#135">TABLE OF FEES AND EXPENSES
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP align="right" valign="top">P-3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#136">USE OF PROCEEDS
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">P-4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#137">PRICE RANGE OF COMMON SHARES
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">P-4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#138">UNDERWRITING
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">P-4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#139">LEGAL MATTERS
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">P-5</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->P-2<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="135"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF FEES AND EXPENSES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables are intended to assist you in understanding the various costs and
expenses directly or indirectly associated with investing in our common shares as a percentage of
net assets attributable to common shares. Amounts are for the current fiscal year after giving
effect to anticipated net proceeds of the offering, assuming that we incur the estimated offering
expenses, including preferred share offering expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Shareholder Transaction Expenses</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Sales Load (as a percentage of offering price)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="RIGHT" valign="top">&#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Offering Expenses (as a percentage of offering price)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="RIGHT" valign="top">&#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dividend Reinvestment Plan Fees
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="RIGHT" valign="top">None<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage of Net Assets</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Attributable to Common</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR>    <TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Annual Expenses</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Management Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">%</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest on Borrowed Funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">None</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">%</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Annual Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">%</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</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 nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>You will be charged a $1.00 service charge and pay brokerage charges
if you direct the plan agent to sell your common shares held in a
dividend reinvestment account.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The Investment Adviser&#146;s fee is 1.00% annually of the Fund&#146;s average
weekly net assets, with no deduction for the liquidation preference of
any outstanding preferred shares. Consequently, if the Fund has
preferred shares outstanding, the investment management fees and other
expenses as a percentage of net assets attributable to common shares
will be higher than if the Fund does not utilize a leveraged capital
structure. &#147;Other Expenses&#148; are based on estimated amounts for the
current year assuming completion of the proposed issuances.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Example</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following example illustrates the expenses you would pay on a $1,000 investment in common
shares, assuming a 5% annual portfolio total return.*
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>1 Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>3 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>5 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>10 Years</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Expenses Incurred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD ALIGN="CENTER">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD ALIGN="CENTER">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD ALIGN="CENTER">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD ALIGN="CENTER">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</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 nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD><B>The example should not be considered a representation of future
expenses</B>. The example assumes that the amounts set forth in the
Annual Expenses table are accurate and that all distributions are
reinvested at net asset value. Actual expenses may be greater or less
than those assumed. Moreover, the Fund&#146;s actual rate of return may be
greater or less than the hypothetical 5% return shown in the example</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->P-3<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="136"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>USE OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We estimate the total net proceeds of the offering to be $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> , based on the public
offering price of $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per share and after deducting underwriting discounts and commissions and
estimated offering expenses payable by us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser expects that it will initially invest the proceeds of the offering in
high-quality short-term debt securities and instruments. The Investment Adviser anticipates that
the investment of the proceeds will be made in accordance with the Fund&#146;s investment objectives and
policies as appropriate investment opportunities are identified, which is expected to be
substantially completed within three months; however, changes in market conditions could result in
the Fund&#146;s anticipated investment period extending to as long as six months.
</DIV>
<DIV align="left">
<A name="137"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PRICE RANGE OF COMMON SHARES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth for the quarters indicated, the high and low sale prices on the
New York Stock Exchange per share of our common shares and the net asset value and the premium or
discount from net asset value per share at which the common shares were trading, expressed as a
percentage of net asset value, at each of the high and low sale prices provided.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">Corresponding</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">Net Asset Value</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">Corresponding Premium or</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">Market Price</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">(&#147;NAV&#148;) Per Share</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">Discount as a % of NAV</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="CENTER" style="border-bottom: 1px solid #000000">Quarter Ended</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">High</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Low</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">High</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Low</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">High</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Low</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
    <TR><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">March&nbsp;31, 2007
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">10.20</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">9.61</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">8.41</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">8.08</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">21.284</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18.936</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">June&nbsp;30, 2007
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">10.28</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">9.35</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">8.61</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">8.28</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19.396</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.923</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">September&nbsp;30, 2007
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">9.83</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">8.71</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">8.13</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">7.59</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">20.910</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">14.756</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">December&nbsp;30, 2007
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">9.50</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">8.95</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">8.18</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">8.15</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">16.137</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9.816</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">March&nbsp;31, 2008
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">9.60</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">8.83</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">7.45</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">7.24</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28.859</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">21.961</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">June&nbsp;30, 2008
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">9.41</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">9.16</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">7.27</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">7.13</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29.436</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28.471</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">September&nbsp;30, 2008
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">9.59</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">9.12</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">6.58</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">6.07</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">45.763</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50.247</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">December&nbsp;30, 2008
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">9.12</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">5.35</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">6.07</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">4.28</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50.247</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">25.003</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">First Quarter
through March&nbsp;19, 2009
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">7.50</TD>
    <TD nowrap valign="top"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">4.39</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">4.36</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">3.35</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">72.018</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31.045</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The last reported price for our common shares on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> was $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per share. The net asset value on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
was $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per share
</DIV>
<DIV align="left">
<A name="138"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>UNDERWRITING</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;&#095;&#095;&#095;&#095;&#095;&#095;&#095;&#095;&#093;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->P-4<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="139"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain legal matters will be passed on by Willkie Farr &#038; Gallagher LLP, 787 Seventh Avenue,
New York, New York 10019, counsel to the Fund in connection with the offering of the common shares.
Counsel for the Fund will rely, as to certain matters of Delaware law, on &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;.
Certain legal matters in connection with this offering will be passed upon for the underwriters by
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->P-5<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUBJECT TO COMPLETION</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Dated &#091;</B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>&#093;, 2009</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>THE GABELLI UTILITY TRUST</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>STATEMENT OF ADDITIONAL INFORMATION</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE INFORMATION IN THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT COMPLETE AND MAY BE
CHANGED. THE FUND MAY NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT AN
OFFER TO SELL THESE SECURITIES AND IT IS NOT SOLICITING AN OFFER TO BUY THESE SECURITIES IN ANY
STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Gabelli Utility Trust (the &#147;Fund&#148;) 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
Fund&#146;s primary investment objective is long-term growth of capital and income. The Fund will invest
at least 80% of its assets, under normal market conditions, in common stocks and other securities
of foreign and domestic companies involved in providing products, services, or equipment for (i)
the generation or distribution of electricity, gas, and water and (ii)&nbsp;telecommunications services
or infrastructure operations (collectively, the &#147;Utility Industry&#148;). The Fund commenced investment
operations on July&nbsp;9, 1999. Gabelli Funds, LLC (the &#147;Investment Adviser&#148;) serves as investment
adviser to the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Statement of Additional Information (the &#147;SAI&#148;) does not constitute a prospectus, but
should be read in conjunction with the Fund&#146;s Prospectus relating thereto dated &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;, 2009,
and as it may be supplemented. This SAI does not include all information that a prospective
investor should consider before investing in the Fund&#146;s shares, and investors should obtain and
read the Fund&#146;s prospectus prior to purchasing such shares. A copy of the Fund&#146;s Registration
Statement, including the prospectus and any supplement, may be obtained from the SEC upon payment
of the fee prescribed, or inspected at the SEC&#146;s office or via its website (http://www.sec.gov) at
no charge.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This SAI is dated &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;, 2009.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="96%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center" style="border-bottom: 1px solid #000000">Page</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#124">THE FUND
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">A-1</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#125">INVESTMENT OBJECTIVE AND POLICIES
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">A-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#126">INVESTMENT RESTRICTIONS
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">A-11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#127">MANAGEMENT OF THE FUND
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">A-12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#128">PORTFOLIO TRANSACTIONS
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">A-21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#129">REPURCHASE OF COMMON SHARES
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">A-22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#130">PORTFOLIO TURNOVER
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP align="right" valign="top">A-23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#131">TAXATION
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">A-23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#132">BENEFICIAL OWNERS
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">A-27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#133">GENERAL INFORMATION
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">A-28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#134">Appendix&nbsp;A &#151; Proxy Voting Policies and Procedures
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">A-31</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Prospectus and this SAI omit certain information contained in the registration statement
filed with the SEC, Washington D.C. The registration statement may be obtained from the SEC upon
payment of the fee prescribed, or inspected at the SEC&#146;s office at no charge.
</DIV>
<DIV align="left">
<A name="124"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE FUND</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund was organized under the laws of the State of Delaware on February&nbsp;25, 1999 and is a
non-diversified, closed-end management investment company registered under the 1940 Act. The Fund&#146;s
investment operations commenced on July&nbsp;9, 1999. The common shares of the Fund are listed and
traded on the New York Stock Exchange (the &#147;NYSE&#148;) under the symbol &#147;GUT.&#148; The Fund&#146;s 5.625% Series
A Cumulative Preferred Shares (the &#147;Series&nbsp;A Preferred&#148;) are listed and traded on the NYSE under
the symbol &#147;GUT PrA.&#148;
</DIV>
<DIV align="left">
<A name="125"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INVESTMENT OBJECTIVE AND POLICIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Objective</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s primary investment objective is long-term growth of capital and income. The Fund
will invest at least 80% of its assets, under normal market conditions, in common stocks and other
securities of foreign and domestic companies involved in providing products, services, or equipment
for (i)&nbsp;the generation or distribution of electricity, gas, and water and (ii)&nbsp;telecommunications
services or infrastructure operations (collectively, the &#147;Utility Industry&#148;). See &#147;Investment
Objective and Policies&#148; in the Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Practices</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Securities Subject to Reorganization</I>. The Fund may invest without limit in securities of
companies for which a tender or exchange offer has been made or announced and in securities of
companies for which a merger, consolidation, liquidation or reorganization proposal has been
announced if, in the judgment of the Investment Adviser, there is a reasonable prospect of high
total return significantly greater than the brokerage and other transaction expenses involved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, securities which are the subject of such an offer or proposal sell at a premium to
their historic market price immediately prior to the announcement of the offer or may also discount
what the stated or appraised value of the security would be if the contemplated transaction were
approved or consummated. Such investments may be advantageous when the discount significantly
overstates the risk of the contingencies involved; significantly undervalues the securities, assets
or cash to be received by shareholders of the prospective portfolio company as a result of the
contemplated transaction; or fails adequately to recognize the possibility that the offer or
proposal may be replaced or superseded by an offer or proposal of greater value. The evaluation of
such contingencies requires unusually broad knowledge and experience on the part of the Adviser
which must appraise not only the value of the issuer and its component businesses as well as the
assets or securities to be received as a result of the contemplated transaction but also the
financial resources and business motivation of the offer and/or the dynamics and business climate
when the offer or proposal is in process. Since such investments are ordinarily short-term in
nature, they will tend to increase the turnover ratio of the Fund, thereby increasing its brokerage
and other transaction expenses. The Adviser intends to select investments of the type described
which, in its view, have a reasonable prospect of capital appreciation which is significant in
relation to both risk involved and the potential of available alternative investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Temporary Investments</I>. Although under normal market conditions at least 80% of the Fund&#146;s
total assets will consist of common stock and other securities of foreign and domestic companies
involved in the Utility Industry, when a temporary defensive posture is believed by the Investment
Adviser to be warranted (&#147;temporary defensive periods&#148;), the Fund may without limitation hold cash
or invest its assets in money market instruments and repurchase agreements in respect of those
instruments. The money market instruments in which the Fund may invest are obligations of the
United States government, its agencies or instrumentalities (&#147;U.S. Government Securities&#148;);
commercial paper rated A-1 or higher by Standard &#038; Poor&#146;s, a Division of The McGraw-Hill Companies,
Inc. (&#147;S&#038;P&#148;) or Prime-1 by Moody&#146;s Investors Service, Inc. (&#147;Moody&#146;s&#148;); and certificates of deposit
and bankers&#146; acceptances issued by domestic branches of U.S. banks that are members of the Federal
Deposit Insurance
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Corporation. During temporary defensive periods, the Fund may also invest to the extent
permitted by applicable law in shares of money market mutual funds. Money market mutual funds are
investment companies and the investments in those companies in some cases by the Fund are subject
to certain fundamental investment restrictions and applicable law. See &#147;Investment Restrictions.&#148;
As a shareholder in a mutual fund, the Fund will bear its ratable share of its expenses, including
management fees, and will remain subject to payment of the fees to the Investment Adviser, with
respect to assets so invested.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Lower Grade Securities</I>. The Fund may invest up to 25% of its total assets in fixed income
securities rated below investment grade by recognized statistical rating agencies or unrated
securities of comparable quality. These securities, which may be preferred stock or debt, are
predominantly speculative and involve major risk exposure to adverse conditions. Debt securities
that are not rated or that are rated lower than &#147;BBB&#148; by S&#038;P or lower than &#147;Baa&#148; by Moody&#146;s are
referred to in the financial press as &#147;junk bonds.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, such lower grade 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 rating 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 in economic
conditions than higher quality securities. In addition, such 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 grade 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, the Investment Adviser, 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 and 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the market value of securities in lower grade securities is more volatile than
that of higher quality securities, and the markets in which such lower grade 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 Fund to obtain accurate market quotations for
purposes of valuing its portfolio and calculating its net asset value (&#147;NAV&#148;). Moreover, the lack
of a liquid trading market may restrict the availability of securities for the Fund to purchase and
may also have the effect of limiting the ability of the Fund to sell securities at their fair value
in response to changes in the economy or the financial markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lower grade securities also present risks based on payment expectations. If an issuer calls
the obligation for redemption (often a feature of fixed income securities), the Fund may have to
replace the security with a lower yielding security, resulting in a decreased return for investors.
Also, as the principal value of nonconvertible bonds and preferred stocks moves inversely with
movements in interest rates, in the event of rising interest rates, the value of the securities
held by the Fund 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 regular income streams.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest up to 10% of its total assets in securities of issuers in default. The
Fund will make an investment in securities of issuers in default only when the Investment Adviser
believes that such issuers will honor their obligations or emerge from bankruptcy protection under
a plan pursuant to which the securities received by the Fund in exchange for its defaulted
securities will have a value in excess of the Fund&#146;s investment. By investing in securities of
issuers in default, the Fund 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
otherwise appreciate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to using recognized rating agencies and other sources, the Investment Adviser also
performs its own analysis of issues in seeking investments that it believes to be underrated (and
thus higher yielding) in light of the financial condition of the issuer. Its analysis of issuers
may include, among other things, current and anticipated cash flow and borrowing requirements,
value of assets in relation to historical cost, strength of management, responsiveness to business
conditions, credit standing, and current anticipated results of operations. In selecting
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">investments for the Fund, the Investment Adviser may also consider general business
conditions, anticipated changes in interest rates, and the outlook for specific industries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent to its purchase by the Fund, an issue of securities may cease to be rated or its
rating may be reduced. In addition, it is possible that statistical rating agencies may change
their ratings of a particular issue to reflect subsequent events. Moreover, such ratings do not
assess the risk of a decline in market value. None of these events will require the sale of the
securities by the Fund, although the Investment Adviser will consider these events in determining
whether the Fund should continue to hold the securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market for lower grade and comparable unrated securities has experienced several periods
of significantly adverse price and liquidity, particularly at or around times of economic
recessions. Past market recessions have adversely affected the value of such securities as well as
the ability of certain issuers of such securities to repay principal and pay interest thereon or to
refinance such securities. The market for those securities may react in a similar fashion in the
future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Options</I>. The Fund may, subject to guidelines of the Board of Trustees of the Fund (the
&#147;Board&#148;), 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 United States
over-the-counter (&#147;OTC&#148;) markets as a means of achieving additional return or of hedging the value
of the Fund&#146;s portfolio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund 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 Fund so desires.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An exchange-traded option may be closed out only on an exchange that provides a secondary
market for an option of the same series. Although the Fund 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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A call option is &#147;covered&#148; if the Fund 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 Fund holds a call on the 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)
greater than the exercise price of the call written if the difference is maintained by the Fund in
cash, 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 or other high-grade short-term obligations in a segregated account
with its custodian. A put option is &#147;covered&#148; if the Fund 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 Fund 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 Fund has been assigned an exercise notice, the Fund will be unable to effect a
closing purchase transaction. Similarly, if the Fund is the holder of an option it may liquidate
its position by
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 Fund so desires.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund 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 Fund 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 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
the Investment Adviser 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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An option position may be closed out only on an exchange that provides a secondary market for
an option of the same series or in a private transaction. Although the Fund 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 the
Fund 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 Fund, 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 until the Fund delivers the underlying security
upon exercise or otherwise covers the position.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to options on securities, the Fund 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Fund is obligated,
in return for the premium received, to make delivery of this amount. The Fund 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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Fund will
not purchase these options unless the Investment Adviser is satisfied with the development, depth
and liquidity of the market and the Investment Adviser believes the options can be closed out.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Price movements in the portfolio of the Fund may not correlate precisely with the movements in
the level of an index and, therefore, the use of options on indices cannot serve as a complete
hedge and will depend, in part, on the ability of the Investment Adviser to predict correctly
movements in the direction of the stock market generally or of a particular industry. Because
options on securities indices require settlement in cash, the Fund may be forced to liquidate
portfolio securities to meet settlement obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund 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. or other exchanges may be subject to position limits which may
limit the ability of the Fund to reduce foreign currency risk using such options. Over-the-counter
options differ from exchange-traded options in that they are two-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 considered illiquid securities.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the Investment Adviser will attempt to take appropriate measures to minimize the
risks relating to the Fund&#146;s writing of put and call options, there can be no assurance that the
Fund will succeed in any option writing program it undertakes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Futures Contracts and Options on Futures</I>. The Fund will 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 its assets and (ii)&nbsp;the aggregate market value of its outstanding
futures contracts and the market value of the currencies and futures contracts subject to
outstanding options written by the Fund do not exceed 50% of the market value of its total assets.
It is anticipated that these investments, if any, will be made by the Fund solely for the purpose
of hedging against changes in the value of its portfolio securities and in the value of securities
it intends to purchase. Such investments will only be made if they are economically appropriate to
the reduction of risks involved in the management of the Fund. In this regard, the Fund may enter
into futures contracts or options on futures for the purchase or sale of securities indices or
other financial instruments including but not limited to U.S. government securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Fund upon the
purchase or sale of a futures contract. Initially, the Fund 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 Fund may close the position by taking an
opposite position, which will operate to terminate its existing position in the contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Fund 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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event the Fund 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. government and its
agencies and instrumentalities or other liquid securities equal to the market value of the contract
must be deposited and maintained in a segregated account with the custodian of the Fund 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 Fund 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
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">instruments or currency underlying the futures contract or call option or the market price at
which the short positions were established.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Forward Currency Exchange Contracts</I>. The Fund may engage in currency transactions other than
on futures exchanges to protect against future changes in the level of future currency exchange
rates. The Fund will conduct such currency exchange transactions either on a &#147;spot&#148; (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. 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 Fund generally
arising in connection with the purchase or sale of its portfolio securities and accruals of
interest receivable and Fund 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund 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 Fund enters into a position hedging transaction, the Fund&#146;s custodian or
subcustodian will place cash or other liquid securities in a segregated account of the Fund in an
amount equal to the value of the Fund&#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 Fund&#146;s commitment with respect to the forward contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At or before the maturity of a forward sale contract, the Fund 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 Fund will
obtain, on the same maturity date, the same amount of the currency which it is obligated to
deliver. If the Fund retains the portfolio security and engages in an offsetting transaction, the
Fund, 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 Fund&#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 Fund 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 Fund 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cost to the Fund 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a decline in any currency is generally anticipated by the Investment Adviser, the Fund 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Interest Rate Futures Contracts and Options Thereon</I>. The Fund may purchase or sell interest
rate futures contracts to take advantage of, or to protect the Fund against fluctuations in
interest rates affecting the value of debt securities which the Fund holds or intends to acquire.
For example, if interest rates are expected to increase, the Fund might sell futures contracts on
debt securities the values of which historically have a high degree of positive correlation to the
values of the Fund&#146;s portfolio securities. Such a sale would have an effect similar to selling an
equivalent value of the Fund&#146;s portfolio securities. If interest rates increase, the value of the
Fund&#146;s portfolio securities will decline, but the value of the futures contracts to the Fund will
increase at approximately an equivalent rate, thereby keeping the NAV of the Fund from declining as
much as it otherwise would have. The Fund could
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 Fund to maintain a defensive position without having to sell
its portfolio securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Similarly, the Fund 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
Fund 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 Fund can take
advantage of the anticipated rise in the cost of the debt securities without actually buying them.
Subsequently, the Fund can make its intended purchase of the debt securities in the cash market and
concurrently liquidate its futures position. To the extent the Fund enters into futures contracts
for this purpose, it will maintain, in a segregated asset account with the Fund&#146;s custodian, assets
sufficient to cover the Fund&#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 Fund with its custodian with respect to such futures contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Fund 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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purchase of a put option on a futures contract is similar to the purchase of protective
put options on portfolio securities. The Fund will purchase a put option on a futures contract to
hedge its portfolio against the risk of rising interest rates and consequent reduction in the value
of portfolio securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The writing of a call option on a futures contract constitutes a partial hedge against
declining prices of the securities that are deliverable upon exercise of the futures contract. If
the futures price at expiration of the option is below the exercise price, the Fund will retain the
full amount of the option premium, which provides a partial hedge against any decline that may have
occurred in the its 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 Fund will retain the full amount of the option premium, which provides a
partial hedge against any increase in the price of debt securities that it intends to purchase. If
a put or call option the Fund has written is exercised, the Fund 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 Fund&#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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 Fund will seek to establish
the rate at which it will be entitled to exchange U.S. dollars for another currency at a future
time. By selling currency futures, the Fund 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 Fund
anticipates a decline in the value of a foreign currency against the U.S. dollar, the Fund can
attempt to &#147;lock in&#148; the U.S. dollar value of some or all of the securities held in its portfolio
that are denominated in that currency. By purchasing currency futures, the Fund 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 Fund intends to buy securities in the future and expects the U.S. dollar
to decline against the relevant foreign currency during the period before the purchase is effected,
the Fund can attempt to lock in the price in U.S. dollars of the securities it intends to acquire.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purchase of options on currency futures will allow the Fund, 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
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">expires. If the Investment Adviser, 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.
dollar, the Fund 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 Fund. If exchange rates move in a
way the Fund did not anticipate, however, the Fund 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 Fund&#146;s profits on its underlying securities transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 Fund&#146;s current or
intended investments from broad fluctuations in stock or bond prices. For example, the Fund 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 its 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 Fund 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 it intends to purchase. As such purchases are made, the corresponding positions in
securities index futures contracts will be closed out. The Fund may write put and call options on
securities index futures contracts for hedging purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Limitations on the Purchase and Sale of Futures Contracts and Options on Futures Contracts</I>.
The Investment Adviser 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 Fund&#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
Fund&#146;s investment restrictions place certain limitations and prohibitions on the Fund&#146;s ability to
purchase or sell commodities or commodity contracts. See &#147;Investment Restrictions.&#148; Under these
restrictions, the Fund 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
Fund&#146;s total assets and (ii)&nbsp;the aggregate market value of the Fund&#146;s outstanding futures contracts
and the market value of the currencies and futures contracts subject to outstanding options written
by the Fund, as the case may be, do not exceed 50% of the market value of the Fund&#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 Fund&#146;s preferred shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Special Risk Considerations Relating to Futures and Options Thereon</I>. The 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 Fund 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 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event no liquid market exists for a particular futures contract or option thereon in
which the Fund 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 Fund 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 Fund
has written and which the Fund is unable to close, the Fund 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Successful use of futures contracts and options thereon and forward contracts by the Fund is
subject to the ability of the Investment Adviser to predict correctly movements in the direction of
interest and foreign currency rates. If the Investment Adviser&#146;s expectations are not met, the Fund
will be in a worse position than if a hedging strategy had not been pursued. For example, if the
Fund 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 Fund 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 Fund
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
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">not necessarily be, at increased prices which reflect the rising market. The Fund 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">&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. of data on which to make trading decisions, (iii)&nbsp;delays in the Fund&#146;s ability to act
upon economic events occurring in the foreign markets during non-business hours in the U.S., (iv)
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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exchanges on which options, futures and options on futures are traded may impose limits on the
positions that the Fund may take in certain circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&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 Fund 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Repurchase Agreements</I>. The Fund may engage in repurchase agreements as set forth in the
Prospectus. A repurchase agreement is an instrument under which the purchaser, i.e., the Fund,
acquires a debt security and the seller agrees, at the time of the sale, to repurchase the
obligation at a mutually agreed upon time and price, thereby determining the yield during the
purchaser&#146;s holding period. This results in a fixed rate of return insulated from market
fluctuations during such period. The underlying securities are ordinarily U.S. Treasury or other
government obligations or high quality money market instruments. The Fund will require that the
value of such underlying securities, together with any other collateral held by the Fund, always
equals or exceeds the amount of the repurchase obligations of the counter party. The Fund&#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 are less than the repurchase price. If
the seller becomes insolvent, the Fund might be delayed in or prevented from selling the
collateral. In the event of a default or bankruptcy by a seller, the Fund will promptly seek to
liquidate the collateral. To the extent that the proceeds from any sale of such collateral upon a
default in the obligation to repurchase are less than the repurchase price, the Fund will
experience a loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the financial institution which is a party to the repurchase agreement petitions for
bankruptcy or becomes subject to the United States Bankruptcy Code, the law regarding the rights of
the Fund is unsettled. As a result, under extreme circumstances, there may be a restriction on the
Fund&#146;s ability to sell the collateral and the Fund would suffer a loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Loans of Portfolio Securities</I>. Consistent with applicable regulatory requirements and the
Fund&#146;s investment restrictions, the Fund may lend its portfolio securities to securities
broker-dealers or financial institutions, <I>provided </I>that such loans are callable at any time by the
Fund (subject to notice provisions described below), and are at all times secured by cash or cash
equivalents, which are maintained in a segregated account pursuant to applicable regulations and
that are at least equal to the market value, determined daily, of the loaned securities. The
advantage of such loans is that the Fund continues to receive the income on the loaned securities
while at the same time earns interest on the cash amounts deposited as collateral, which will be
invested in short-term obligations. The Fund will not lend its portfolio securities if such loans
are not permitted by the laws or regulations of any state in which its shares are qualified for
sale. The Fund&#146;s loans of portfolio securities will be collateralized in accordance with applicable
regulatory requirements and no loan will cause the value of all loaned securities to exceed 20% of
the value of the Fund&#146;s total assets. The Fund&#146;s ability to lend portfolio securities will be
limited by the rating agency guidelines applicable to any of the Fund&#146;s outstanding preferred
shares.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A loan may generally be terminated by the borrower on one business day notice, or by the Fund
on five business days notice. If the borrower fails to deliver the loaned securities within five
days after receipt of notice, the Fund could use the collateral to replace the securities while
holding the borrower liable for any excess of replacement cost over collateral. As with any
extensions of credit, there are risks of delay in recovery and in some cases even loss of rights in
the collateral should the borrower of the securities fail financially. However, these loans of
portfolio securities will only be made to firms deemed by the Fund&#146;s management to be creditworthy
and when the income which can be earned from such loans justifies the attendant risks. The Board
will oversee the creditworthiness of the contracting parties on an ongoing basis. Upon termination
of the loan, the borrower is required to return the securities to the Fund. Any gain or loss in the
market price during the loan period would inure to the Fund. The risks associated with loans of
portfolio securities are substantially similar to those associated with repurchase agreements.
Thus, if the counter party to the loan petitions for bankruptcy or becomes subject to the United
States Bankruptcy Code, the law regarding the rights of the Fund is unsettled. As a result, under
extreme circumstances, there may be a restriction on the Fund&#146;s ability to sell the collateral and
the Fund would suffer a loss. When voting or consent rights which accompany loaned securities pass
to the borrower, the Fund will follow the policy of calling the loaned securities, to be delivered
within one day after notice, to permit the exercise of such rights if the matters involved would
have a material effect on the Fund&#146;s investment in such loaned securities. The Fund will pay
reasonable finder&#146;s, administrative and custodial fees in connection with a loan of its securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>When Issued, Delayed Delivery Securities and Forward Commitments</I>. The Fund 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 Fund may sell the security
before the settlement date if it is deemed advisable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities purchased under a forward commitment are subject to market fluctuation, and no
interest (or dividends) accrues to the Fund prior to the settlement date. The Fund 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Short Sales</I>. The Fund may make short sales of securities. A short sale is a transaction in
which the Fund sells a security it does not own in anticipation that the market price of that
security will decline. The market value of the securities sold short of any one issuer will not
exceed either 5% of the Fund&#146;s total assets or 5% of such issuer&#146;s voting securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will not make a short sale, if, after giving effect to such sale, the market value of
all securities sold short exceeds 25% of the value of its assets or the Fund&#146;s aggregate short
sales of a particular class of securities exceeds 25% of the outstanding securities of that class.
The Fund may also make short sales &#147;against the box&#148; without respect to such limitations. In this
type of short sale, at the time of the sale, the Fund owns, or has the immediate and unconditional
right to acquire at no additional cost, the identical security. The Fund expects to make short
sales both to obtain capital gains from anticipated declines in securities and as a form of hedging
to offset potential declines in long positions in the same or similar securities. The short sale of
a security is considered a speculative investment technique. Short sales &#147;against the box&#148; may be
subject to special tax rules, one of the effects of which may be to accelerate income to the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When the Fund makes a short sale, it must borrow the security sold short and deliver it to the
broker-dealer through which it made the short sale in order to satisfy its obligation to deliver
the security upon conclusion of the sale. The Fund may have to pay a fee to borrow particular
securities and is often obligated to pay over any payments received on such borrowed securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s obligation to replace the borrowed security will be secured by collateral deposited
with the broker-dealer, usually cash, U.S. government securities or other highly liquid debt
securities. The Fund will also be required to deposit similar collateral with its custodian to the
extent, if any, necessary so that the value of both collateral deposits in the aggregate is at all
times equal to the greater of the price at which the security is sold short
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-10<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or 100% of the current market value of the security sold short. Depending on arrangements made
with the broker-dealer from which it borrowed the security regarding payment over of any payments
received by the Fund on such security, the Fund may not receive any payments (including interest)
on its collateral deposited with such broker-dealer. If the price of the security sold short
increases between the time of the short sale and the time the Fund replaces the borrowed security,
the Fund will incur a loss; conversely, if the price declines, the Fund will realize a capital
gain. Any gain will be decreased, any loss increased, by the transaction costs described above.
Although the Fund&#146;s gain is limited to the price at which it sold the security short, its potential
loss is theoretically unlimited.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To secure its obligations to deliver the securities sold short, the Fund will deposit in
escrow in a separate account with its custodian, State Street Bank and Trust Company (&#147;State
Street&#148;), an amount at least equal to the securities sold short or securities convertible into, or
exchangeable for, the securities. The Fund may close out a short position by purchasing and
delivering an equal amount of securities sold short, rather than by delivering securities already
held by the Fund, because the Fund may want to continue to receive interest and dividend payments
on securities in its portfolio that are convertible into the securities sold short.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Repurchase Agreements</I>. The Fund may engage in repurchase agreement transactions involving
money market instruments with banks, registered broker-dealers and government securities dealers
approved by the Adviser. The Fund will not enter into repurchase agreements with the Investment
Adviser or any of its affiliates. Under the terms of a typical repurchase agreement, the Fund would
acquire an underlying debt obligation for a relatively short period (usually not more than one
week) subject to an obligation of the seller to repurchase, and the Fund to resell, the obligation
at an agreed price and time, thereby determining the yield during its holding period. Thus,
repurchase agreements may be seen to be loans by the Fund collateralized by the underlying debt
obligation. This arrangement results in a fixed rate of return that is not subject to market
fluctuations during the holding period. The value of the underlying securities will be at least
equal to at all times to the total amount of the repurchase obligation, including interest. The
Fund bears a risk of loss in the event that the other party to a repurchase agreement defaults on
its obligations and the Fund is delayed in or prevented from exercising its rights to dispose of
the collateral securities, including the risk of a possible decline in the value of the underlying
securities during the period in which it seeks to assert these rights. The Investment Adviser,
acting under the supervision of the Board, reviews the creditworthiness of those banks and dealers
with which the Fund enters into repurchase agreements to evaluate these risks and monitors on an
ongoing basis the value of the securities subject to repurchase agreements to ensure that the value
is maintained at the required level.
</DIV>
<DIV align="left">
<A name="126"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INVESTMENT RESTRICTIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund 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 Fund 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;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 Fund may not:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 other than the Utility Industry. This
restriction does not apply to investments in U.S. government securities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>purchase or sell commodities or commodity contracts except that the Fund 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 Fund do not exceed 50% of the market value of
its total assets. The Fund may not purchase or sell real estate,</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->A-11<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


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



</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provided that the Fund 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 style="font-size:3pt"><TD>&nbsp;</TD></TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make loans of money, except by the purchase of a portion of private or publicly distributed
debt obligations or the entering into of repurchase agreements. The Fund 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 will only be made upon
approval of, and subject to any conditions imposed by, the Board. Because these loans are
required to be fully collateralized at all times, the risk of loss in the event of default of
the borrower should be slight.</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>borrow money except to the extent permitted by applicable law. The 1940 Act currently
requires that the Fund have 300% asset coverage with respect to all borrowings other than
temporary borrowings of up to 5% of the value of its total assets.</TD>
</TR>

</TABLE>
</DIV>

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


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>issue senior securities, except to the extent permitted by applicable law.
</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>underwrite securities of other issuers except insofar as the Fund may be deemed an
underwriter under the Securities Act 1933, (the &#147;1933 Act&#148;) in selling portfolio securities;
provided, however, this restriction shall not apply to securities of any investment company
organized by the Fund that are to be distributed pro rata as a dividend to its shareholders.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">With respect to (1)&nbsp;above, the Fund invests 25% or more of its total assets in the securities of
issuers in the Utility Industry.
</DIV>

<DIV align="left">
<A name="127"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MANAGEMENT OF THE FUND</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Trustees and Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The business and affairs of the Fund are managed under the direction of its Board, and the
day-to-day operations are conducted through or under the direction of its officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The names and business addresses of the Trustees and principal officers of the Fund 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 Trustees, their positions with certain other
organizations and companies. Trustees who are &#147;interested persons&#148; of the Fund, as defined by the
1940 Act, are listed under the caption &#147;Interested Trustee.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Trustees</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>TERM OF</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>OFFICE AND</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>NUMBER OF</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>NAME, POSITION WITH</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>LENGTH OF</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>PORTFOLIOS IN FUND</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>THE FUND, AGE AND</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>TIME</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>PRINCIPAL OCCUPATION(S)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>OTHER DIRECTORSHIPS</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>COMPLEX OVERSEEN</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>BUSINESS ADDRESS</B><SUP style="font-size: 85%; vertical-align: text-top"><B>1</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>SERVED</B><SUP style="font-size: 85%; vertical-align: text-top"><B>2</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>DURING PAST FIVE YEARS</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>HELD BY TRUSTEE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>BY TRUSTEE</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="3" valign="top" align="left"><B>INTERESTED TRUSTEES</B><SUP style="font-size: 85%; vertical-align: text-top"><B>3</B></SUP><B>:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mario J. Gabelli<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP><BR>
Trustee and Chief Investment<BR>
Officer<BR>
Age: 66
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 1999*
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman and Chief
Executive Officer
of GAMCO Investors,
Inc.; Chief
Investment
Officer&#151;Value
Portfolios of
Gabelli Funds, LLC
and GAMCO Asset
Management Inc.;
Director/Trustee or
Chief Investment
Officer of other
registered
investment
companies in the
GAMCO/Gabelli Funds
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director of Morgan
Group Holdings,
Inc. (holding
company); Chairman
of the Board of
LICT Corporation
(multimedia and
communication
services company)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->A-12<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>TERM OF</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>OFFICE AND</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>NUMBER OF</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>NAME, POSITION WITH</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>LENGTH OF</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>PORTFOLIOS IN FUND</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>THE FUND, AGE AND</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>TIME</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>PRINCIPAL OCCUPATION(S)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>OTHER DIRECTORSHIPS</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>COMPLEX OVERSEEN</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>BUSINESS ADDRESS</B><SUP style="font-size: 85%; vertical-align: text-top"><B>1</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>SERVED</B><SUP style="font-size: 85%; vertical-align: text-top"><B>2</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>DURING PAST FIVE YEARS</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>HELD BY TRUSTEE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>BY TRUSTEE</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">complex; Chairman
and Chief Executive
Officer of GGCP,
Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John D. Gabelli<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP><BR>
Trustee<BR>
Age: 64
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 1999**
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Vice
President of
Gabelli &#038; Company,
Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director of GAMCO
Investors, Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>NON-INTERESTED TRUSTEES:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Thomas E. Bratter<BR>
Trustee<BR>
Age: 69
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 1999*
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director, President
and Founder of The
John Dewey Academy
(residential
college preparatory
therapeutic high
school).
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Anthony J. Colavita<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP><BR> Trustee<BR>
Age: 73
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 1999***
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President of the
law firm of Anthony
J. Colavita, P.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">36</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">James P. Conn<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP><BR>
Trustee<BR>
Age: 70
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 1994**
</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">None
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Vincent D. Enright<BR>
Trustee<BR>
Age: 65
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 1999*
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Former Senior Vice
President and Chief
Financial Officer
of KeySpan Energy
Corporation (public
utility)
(1994-1998).
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director of Echo
Therapeutics, Inc.
(therapeutics and
diagnostics)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">16</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Frank J. Fahrenkopf, Jr.<BR>
Trustee<BR> Age: 69
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 1999***
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief
Executive Officer
of the American
Gaming Association;
Co-Chairman of the
Commission on
Presidential
Debates; Chairman
of the Republican
National Committee
(1983-1989).
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Robert J. Morrissey<BR>
Trustee <BR>
Age: 69
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 1999***
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Partner in the law
firm of Morrissey,
Hawkins &#038; Lynch.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Anthony R. Pustorino<BR>
Trustee<BR>Age: 83
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 1999**
</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 The LGL
Group, Inc.
(diversified
manufacturing)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Salvatore J. Zizza<BR>
Trustee<BR>
Age: 63
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 1994***
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of Zizza &#038;
Co., Ltd.
(consulting).
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director of
Hollis-Eden
Pharmaceuticals
(biotechnology)&nbsp;and
Earl Scheib, Inc.
(automotive
services)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->A-13<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Officers</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="57%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name, Positions with the</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Fund, Age, and Business</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Length of time</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Address</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Served</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Principal Occupation(s) During Past Five Years</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bruce N. Alpert<BR>
President<BR>
Age: 57
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 2003
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President and Chief Operating Officer of Gabelli
Funds, LLC since 1988; Officer of all of the registered investment
companies in the Gabelli/GAMCO Funds complex.&#043;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Peter D. Goldstein<BR>
Chief Compliance Officer<BR>
Age: 55
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 2004
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director of Regulatory Affairs for GAMCO Investors, Inc. since
2004; Chief Compliance Officer of all of the registered investment
companies in the Gabelli/GAMCO Funds complex; Vice President of
Goldman Sachs Asset Management from 2000 to 2004.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Agnes Mullady<BR>
Treasurer and Principal
Financial Officer<BR>
Age: 50
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 2006
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President of Gabelli Funds, LLC since 2007; Officer of all
registered investment companies in the Gabelli/GAMCO Funds complex;
Senior Vice President of U.S. Trust Company, N.A. and Treasurer and
Chief Financial Officer of Excelsior Funds from 2004-2005.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">David I. Schachter<BR>
Vice President and
Ombudsman<BR>
Age: 55
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 1999
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President of the Fund since 1999; Vice President of The Gabelli
Global Utility &#038; Income Trust since 2004.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</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 nowrap align="left">1</TD>
    <TD>&nbsp;</TD>
    <TD>Address: One Corporate Center, Rye, NY 10580, unless otherwise noted.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">2</TD>
    <TD>&nbsp;</TD>
    <TD>The Board is divided into three classes, each class having a term of three years. Each year
the term of office of one class expires and the successor or successors elected to such class
serve for a three year term. The three year term for each class expires as follows:</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Term expires at the Fund&#146;s 2010 Annual Meeting of Shareholders and until his successors is
duly elected and qualified.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Term expires at the Fund&#146;s 2012 Annual Meeting of Shareholders and until his successors is
duly elected and qualified.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">***</TD>
    <TD>&nbsp;</TD>
    <TD>Term expires at the Fund&#146;s 2011 Annual Meeting of Shareholders and until his successors is
duly elected and qualified.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">&#043;</TD>
    <TD>&nbsp;</TD>
    <TD>Chairman of Teton Advisors Inc. (formerly Gabelli Advisors, Inc.) since 2008; Director and President from 1998 to 2008.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">3</TD>
    <TD>&nbsp;</TD>
    <TD>&#147;Interested person&#148; of the Fund is defined in the 1940 Act. Mr.&nbsp;Mario J. Gabelli is
considered an &#147;interested person&#148; of the Fund because of his affiliation with the Investment
Adviser and Gabelli &#038; Company, which executes portfolio transactions for the Fund, and as a
controlling shareholder because of the level of his ownership of common shares of the Fund.
Mr.&nbsp;John D. Gabelli is considered an &#147;interested person&#148; of the Fund because of his
affiliation with Gabelli &#038; Company. Mr.&nbsp;Mario J. Gabelli and Mr.&nbsp;John D. Gabelli are
brothers.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">4</TD>
    <TD>&nbsp;</TD>
    <TD>As a Trustee, elected solely by holders of the Fund&#146;s preferred shares.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Beneficial Ownership of Shares Held in the Fund and the Fund Complex for Each Trustee</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set forth in the table below is the dollar range of equity securities in the Fund beneficially
owned by each Trustee and the aggregate dollar range of equity securities in the Fund complex
beneficially owned by each Trustee.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->A-14<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Aggregate Dollar</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Range of Equity</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Securities in all</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Dollar Range of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Registered Investment</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Equity</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Companies in the</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Securities in the</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gabelli Fund</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name of Trustee</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fund(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Complex(1)(2)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interested Trustees</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mario J. Gabelli</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John D. Gabelli</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">None</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Disinterested Trustees</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas E. Bratter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">None</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Anthony J. Colavita</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD nowrap align="right">10,001-$50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">James P. Conn</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD nowrap align="right">50,001-$100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vincent D. Enright</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">None</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Frank J. Fahrenkopf, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">None</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">None</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Robert J. Morrissey</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">None</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Anthony R. Pustorino</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD nowrap align="right">10,001-$50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Salvatore J. Zizza</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD nowrap align="right">10,001-$50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</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 nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>This information has been furnished by each Trustee as of December&nbsp;31, 2008. &#147;Beneficial
Ownership&#148; is determined in accordance with Section&nbsp;16a-1(a)(2) of the Securities Exchange Act
of 1934, as amended.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The &#147;Fund Complex&#148; includes all the funds that are considered part of the same fund complex
as the Fund because they have a common or affiliated investment adviser.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustees serving on the Fund&#146;s Nominating Committee are Messrs.&nbsp;Zizza (Chairman),
Colavita, and Enright. The Nominating Committee is responsible for recommending qualified
candidates to the Board in the event that a position is vacated or created. The Nominating
Committee would consider recommendations by shareholders if a vacancy were to exist. Such
recommendations should be forwarded to the Secretary of the Fund. The Nominating Committee met once
during the year ended December&nbsp;31, 2008. The Fund does not have a standing compensation committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Messrs.&nbsp;Pustorino (Chairman), Colavita and Enright serve on the Fund&#146;s Audit Committee and
these Trustees are not &#147;interested persons&#148; of the Fund as defined in the 1940 Act. The Audit
Committee generally is responsible for reviewing and evaluating issues related to the accounting
and financial reporting policies and, as appropriate, internal controls of the Fund and the
internal controls of certain service providers, overseeing the quality and objectivity of the
Fund&#146;s financial statements and the audit thereof and to act as a liaison between the Board and the
Fund&#146;s independent registered public accounting firm. During the year ended December&nbsp;31, 2008, the
Audit Committee met twice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Remuneration of Trustees and Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund pays each Trustee who is not affiliated with the Investment Adviser or its affiliates
a fee of $6,000 per year plus $1,000 per meeting attended in person and $500 per telephonic meeting
or Committee meeting, together with the Trustee&#146;s actual out-of-pocket expenses relating to his
attendance at such meetings. In addition, the Lead Trustee receives an annual fee of $1,000, the
Audit Committee Chairman receives an annual fee of $3,000 and the Nominating Committee Chairman
receives an annual fee of $2,000. Trustees who are trustees or employees of the Adviser or an
affiliated company receive no compensation or expense reimbursement from the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows the compensation that the Trustees earned in their capacity as
Trustees and in their capacity as Directors/Trustees for other funds in the Gabelli Fund Complex
during the year ended December&nbsp;31, 2008. The table also shows, for the year ended December&nbsp;31,
2008, the compensation paid to the Fund&#146;s officer (in excess of $60,000).
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-15<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Compensation Table for the Year Ended December&nbsp;31, 2008</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Aggregate</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Compensation</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>From the Fund</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>and</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fund Complex</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name of Trustee/Officer</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>From the Fund</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Paid to Trustees*</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interested Trustee:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mario J. Gabelli</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John Gabelli</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Disinterested Trustees:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas E. Bratter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">41,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Anthony J. Colavita</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,843</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">251,034</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">James P. Conn</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">122,590</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vincent D. Enright</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,767</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">123,423</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Frank J. Fahrenkopf, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">64,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Robert J. Morrissey</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">44,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Anthony R. Pustorino</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">147,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Salvatore J. Zizza</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,806</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">187,326</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Officer:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">David I. Schachter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">180,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</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 nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the total compensation paid to such persons during the year ended December&nbsp;31, 2008 by
investment companies (including the Fund) or portfolios thereof from which such person receives
compensation that are considered part of the same fund complex as the Fund because they have common
or affiliated investment advisers.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Limitation of Trustees&#146; and Officers&#146; Liability</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to limitations imposed by the 1940 Act, the Governing Documents of the Fund provide
that the Fund will indemnify its trustees 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 positions with the Fund, to the fullest extent permitted by law. However,
nothing in the Governing Documents of the Fund protects or indemnifies a trustee, officer, employee
or agent of the Fund against any liability to which such person would otherwise be subject in the
event of such person&#146;s willful misfeasance, bad faith, gross negligence or reckless disregard of
the duties involved in the conduct of his or her position.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Management</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gabelli Funds, LLC acts as the Fund&#146;s Investment Adviser pursuant to the Investment Advisory
Agreement with the Fund. The Investment Adviser is a New York limited liability company with
principal offices located at One Corporate Center, Rye, New York 10580-1422. The Investment Adviser
was organized in 1999 and is the successor to Gabelli Funds, Inc., which was organized in 1980. As
of December&nbsp;31, 2008, the Investment Adviser acted as registered investment adviser to 25
management investment companies with aggregate net assets of $11.4&nbsp;billion. The Investment Adviser,
together with the other affiliated investment advisers noted below had assets under management
totaling approximately $20.7&nbsp;billion as of December&nbsp;31, 2008. GAMCO Asset Management Inc., an
affiliate of the Investment Adviser, 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 $8.5&nbsp;billion under management as of December&nbsp;31, 2008. Gabelli
Securities, Inc., an affiliate of the Investment Adviser, acts as investment adviser for investment
partnerships and entities having aggregate assets of approximately $295&nbsp;million as of December&nbsp;31,
2008. Gabelli Fixed Income LLC, an affiliate of the Investment Adviser, acts as investment adviser
for separate accounts having aggregate assets of approximately $22&nbsp;million under management as of
December&nbsp;31, 2008. Teton Advisors, Inc., an affiliate of the Investment Adviser, acts as investment
manager to the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-16<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">GAMCO Westwood Funds having aggregate assets of approximately $450&nbsp;million under management as
of December&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser 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 the Investment Adviser 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" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser will provide a continuous investment program for the portfolios of the
Fund and oversee the administration of all aspects of the Fund&#146;s business and affairs. The
Investment Adviser has sole investment discretion for the assets of the Fund under the supervision
of the Board and in accordance with the Fund&#146;s stated policies. The Investment Adviser will select
investments for the Fund and will place purchase and sale orders on behalf of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Advisory Agreements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliates of the Investment Adviser may, in the ordinary course of their business, acquire
for their own account or for the accounts of their advisory clients, significant (and possibly
controlling) positions in the securities of companies that may also be suitable for investment by
the Fund. The securities in which the Fund might invest may thereby be limited to some extent. For
instance, many companies in the past several years have adopted so-called &#147;poison pill&#148; or other
defensive measures designed to discourage or prevent the completion of non-negotiated offers for
control of the company. Such defensive measures may have the effect of limiting the shares of the
company that might otherwise be acquired by the Fund if the affiliates of the Investment Adviser or
their advisory accounts have or acquire a significant position in the same securities. However, the
Investment Adviser does not believe that the investment activities of its affiliates will have a
material adverse effect upon each the Fund in seeking to achieve its investment objective.
Securities purchased or sold pursuant to contemporaneous orders entered on behalf of the investment
company accounts of the Investment Adviser or the advisory accounts managed by its affiliates for
their unaffiliated clients are allocated pursuant to principles believed to be fair and not
disadvantageous to any such accounts. In addition, all such orders are accorded priority of
execution over orders entered on behalf of accounts in which the Investment Adviser or its
affiliates have a substantial pecuniary interest. The Fund may on occasion give advice or take
action with respect to other clients that differs from the actions taken with respect to the Fund.
The Fund may invest in the securities of companies that are investment management clients of GAMCO
Asset Management Inc. In addition, portfolio companies or their officers or trustees may be
minority shareholders of the Investment Adviser or its affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of the Advisory Agreement, the Investment Adviser manages the portfolio of the
Fund in accordance with its stated investment objective and policies, makes investment decisions
for the Fund, places orders to purchase and sell securities on behalf of the Fund and manages its
other business and affairs, all subject to the supervision and direction of the Board. In addition,
under the Advisory Agreement, the Investment Adviser oversees the administration of all aspects of
the Fund&#146;s business and affairs and provides, or arranges for others to provide, at the Investment
Adviser&#146;s expense, certain enumerated services, including maintaining the Fund&#146;s books and records,
preparing reports to the Fund&#146;s shareholders and supervising the calculation of the NAV of its
shares. All expenses of computing the NAV of the Fund, including any equipment or services obtained
solely for the purpose of pricing shares or valuing its investment portfolio, will be an expense of
the Fund under its Advisory Agreement unless the Investment Adviser voluntarily assumes
responsibility for such expense. During fiscal year 2008, the Fund paid or accrued $45,000 to the
Investment Adviser in connection with the cost of computing the Fund&#146;s NAV.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Advisory Agreement combines investment advisory and administrative responsibilities in one
agreement. For services rendered by the Investment Adviser on behalf of the Fund under the Advisory
Agreement, the Fund pays the Investment Adviser a fee computed weekly and paid monthly, equal on an
annual basis to 1.00% of the Fund&#146;s average weekly net assets including the liquidation value of
preferred shares. The fee paid by the Fund may be higher when leverage in the form of preferred
shares are utilized, giving the Investment Adviser an incentive to utilize such leverage. However,
the Investment Adviser has agreed to reduce the management fee on the incremental assets
attributable to the preferred shares during the fiscal year if the total return of the NAV of the
common shares of the Fund, including distributions and advisory fees subject to reduction for that
year, does not exceed the stated dividend rate or corresponding swap rate of each particular series
of preferred shares for the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-17<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">period. In other words, if the effective cost of the leverage for any series of preferred
shares exceeds the total return (based on NAV) on the Fund&#146;s common shares, the Investment Adviser
will waive that portion of its management fee on the incremental assets attributable to the
leverage for that series of preferred shares to mitigate the negative impact of the leverage on the
common shareholder&#146;s total return, except in connection with the waiver applicable to the portion
of the Fund&#146;s assets attributable to Series&nbsp;A Preferred and Series&nbsp;B Auction Market Preferred
Shares (&#147;Series&nbsp;B Preferred&#148;), this fee waiver is voluntary and may be discontinued at any time.
For Series&nbsp;A Preferred and Series&nbsp;B Preferred, the waiver will remain in effect as long as any
shares in a series are outstanding. The Fund&#146;s total return on the NAV of the common shares is
monitored on a monthly basis to assess whether the total return on the NAV of the common shares
exceeds the stated dividend rate or corresponding swap rate of each particular series of preferred
shares for the period. The test to confirm the accrual of the management fee on the assets
attributable to each particular series of preferred shares is annual. The Fund will accrue for the
management fee on these assets during the fiscal year if it appears probable that the Fund will
incur the management fee on those additional assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&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, the Investment Adviser
is not liable for any error or judgment or mistake of law or for any loss suffered by the Fund. As
part of the Advisory Agreement, the Fund has agreed that the name &#147;Gabelli&#148; is the Investment
Adviser&#146;s property, and that in the event the Investment Adviser ceases to act as an investment
adviser to the Fund, the Fund will change its name to one not including &#147;Gabelli.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to its terms, the Advisory Agreement will remain in effect with respect to the Fund
until the second anniversary of shareholder approval of such Agreement, and from year to year
thereafter if approved annually (i)&nbsp;by the Board or by the holders of a majority of its outstanding
voting securities and (ii)&nbsp;by a majority of the trustees 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. The Advisory Agreement was approved most
recently by the Board on February&nbsp;26, 2009. The Advisory Agreement terminates automatically on its
assignment and may be terminated without penalty on 60&nbsp;days&#146; written notice at the option of either
party thereto or by a vote of a majority (as defined in the 1940 Act) of the Fund&#146;s outstanding
shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A discussion regarding the basis of the Board&#146;s approval of the Advisory Agreement for the
Fund is available in the semi-annual report to shareholders for the six months ended June&nbsp;30, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For each of the years ended, December&nbsp;31, 2006, December&nbsp;31, 2007, and December&nbsp;31, 2008, the
Investment Adviser was paid $2,739,387, $3,002,900, and $1,983,694 respectively, for advisory and
administrative services rendered to the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Portfolio Manager Information</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Other Accounts Managed</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information below lists other accounts for which the portfolio manager was primarily
responsible for the day-to-day management during the year ended December&nbsp;31, 2008.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B># of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Total</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Managed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Assets</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>with</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>with</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Advisory</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Advisory</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Fee</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Fee</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name of Portfolio</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B># of Accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Based on</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Based on</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Manager</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Type of Accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Managed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Performance</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Performance</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mario J. Gabelli</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registered Investment Companies:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">24</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">$10.3&nbsp;billion</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">6</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">$3.2&nbsp;billion</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Pooled Investment Vehicles:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">22</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">$355.1&nbsp;million</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">19</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">$316.4&nbsp;million</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->A-18<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B># of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Total</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Managed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Assets</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>with</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>with</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Advisory</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Advisory</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Fee</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Fee</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name of Portfolio</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B># of Accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Based on</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Based on</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Manager</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Type of Accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Managed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Performance</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Performance</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Accounts:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">2,049</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">$8.1&nbsp;billion</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">6</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">$994.1&nbsp;million</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Potential Conflicts of Interest</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&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">&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">&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 Fund 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 or other accounts primarily managed by other portfolio managers of the
Investment Adviser and its affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&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 the 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Selection of Broker/Dealers. </I>The portfolio manager may be able to select or influence the
selection of the brokers and dealers that are used to execute securities transactions for the funds
or accounts that he supervises. In addition to providing execution of trades, some brokers and
dealers provide the Investment Adviser with brokerage and research services. These services may be
more beneficial to certain funds or accounts of the Investment Adviser and its affiliates than to
others. Although the payment of brokerage commissions is subject to the requirement that the
Investment Adviser determine in good faith that the commissions are reasonable in relation to the
value of the brokerage and research services provided to the Fund, the portfolio manager&#146;s decision
as to the selection of brokers and dealers could yield disproportionate costs and benefits among
the funds or other accounts that the Investment Adviser and its affiliates manage. In addition,
with respect to certain types of accounts (such as pooled investment vehicles and other accounts
managed for organizations and individuals), the Investment Adviser may be limited by the client
concerning the selection of brokers or may be instructed to direct trades to particular brokers.
In these cases, the Investment Adviser or its affiliates may place separate, non-simultaneous
transactions in the same security for the Fund and another account that may temporarily affect the
market price of the security or the execution of the transaction, or both, to the detriment of the
Fund or the other account. Because of Mr.&nbsp;Gabelli&#146;s position with, and his indirect majority
ownership interest in, an affiliated broker dealer, Gabelli &#038; Company, he may have an incentive to
use Gabelli &#038; Company to execute portfolio transactions for the Fund even if using Gabelli &#038;
Company is not in the best interest of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&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 the Investment Adviser&#146;s management fee or the portfolio manager&#146;s compensation
differs among accounts (such as where certain accounts
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-19<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">pay higher management fees or performance-based management fees), the portfolio manager may be
motivated to favor certain accounts over others. The portfolio manager also may be motivated to
favor accounts in which he has an investment interest, or in which the Investment Adviser or its
affiliates have investment interests. In Mr.&nbsp;Gabelli&#146;s case, the Investment Adviser&#146;s compensation
(and expenses) for the Fund 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 the Investment Adviser and its affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser and the Fund have adopted compliance policies and procedures that are
designed to address the various conflicts of interest that may arise for the Investment Adviser 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&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 the Investment Adviser for managing the Fund. 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 Fund. 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. Five closed-end registered investment companies managed by Mr.
Gabelli have arrangements whereby the Investment Adviser will only receive its investment advisory
fee attributable to the liquidation value of outstanding preferred shares (and Mr.&nbsp;Gabelli would
only receive his percentage of such advisory fee) if certain performance levels are met. 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 the Investment Adviser for managing the account. The
second component is based on absolute performance of the account, with respect to which a
percentage of such performance fee is paid to Mr.&nbsp;Gabelli. As an executive officer of the
Investment Adviser&#146;s 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Ownership of Shares in the Fund</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2008, the portfolio manager of the Fund owned the following amounts of
equity securities of the Fund.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">Dollar Range of Equity Securities Held in Fund</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mario J. Gabelli
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Over $1,000,000</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Portfolio Holdings Information</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employees of the Investment Adviser and its affiliates will often have access to information
concerning the portfolio holdings of the Fund. The Fund and the Investment Adviser have adopted
policies and procedures that require all employees to safeguard proprietary information of the
Fund, which includes information relating to the Fund&#146;s portfolio holdings as well as portfolio
trading activity of the Investment Adviser with respect to the Fund (collectively, &#147;Portfolio
Holdings Information&#148;). In addition, the Fund and the Investment Adviser have adopted policies and
procedures providing that Portfolio Holdings Information may not be disclosed except to the extent
that it is (a)&nbsp;made available to the general public by posting on the Fund&#146;s website or filed as a
part of a required filing on Form N-Q or N-CSR or (b)&nbsp;provided to a third party for legitimate
business purposes or regulatory purposes, that has agreed to keep such data confidential under
forms approved by the Investment Adviser&#146;s legal department or outside counsel, as described below.
The Investment Adviser will examine each situation under (b)&nbsp;with a view to determine that release
of the information is in the best interest of the Fund and its shareholders and, if a potential
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-20<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">conflict between the Investment Adviser&#146;s interests and the Fund&#146;s interests arises, to have
such conflict resolved by the Chief Compliance Officer or the independent Board. These policies
further provide that no officer of the Fund or employee of the Investment Adviser shall communicate
with the media about the Fund without obtaining the advance consent of the Chief Executive Officer,
Chief Operating Officer, or General Counsel of the Investment Adviser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the foregoing policies, the Fund currently may disclose Portfolio Holdings Information
in the circumstances outlined below. Disclosure generally may be either on a monthly or quarterly
basis with no time lag in some cases and with a time lag of up to 60&nbsp;days in other cases (with the
exception of proxy voting services which require a regular download of data):
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To regulatory authorities in response to requests for such information and with
the approval of the Chief Compliance Officer of the Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To mutual fund rating and statistical agencies and to persons performing
similar functions where there is a legitimate business purpose for such disclosure and
such entity has agreed to keep such data confidential at least until it has been made
public by the Investment Adviser;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To service providers of the Fund, as necessary for the performance of their
services to the Fund and to the Board; the Fund&#146;s anticipated service providers are its
administrator, transfer agent, custodian, independent registered public accounting
firm, and legal counsel;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To firms providing proxy voting and other proxy services, provided such entity
has agreed to keep such data confidential until at least it has been made public by the
Investment Adviser;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To certain broker dealers, investment advisers, and other financial
intermediaries for purposes of their performing due diligence on the Fund and not for
dissemination of this information to their clients or use of this information to
conduct trading for their clients. Disclosure of Portfolio Holdings Information in
these circumstances requires the broker, dealer, investment adviser, or financial
intermediary to agree to keep such information confidential and is further subject to
prior approval of the Chief Compliance Officer of the Fund and to reporting to the
Board at the next quarterly meeting; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To consultants for purposes of performing analysis of the Fund, which analysis
(but not the Portfolio Holdings Information) may be used by the consultant with its
clients or disseminated to the public, provided that such entity shall have agreed to
keep such information confidential until at least it has been made public by the
Investment Adviser.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclosures made pursuant to a confidentiality agreement are subject to periodic confirmation
by the Chief Compliance Officer of the Fund that the recipient has utilized such information solely
in accordance with the terms of the agreement. Neither the Fund nor the Investment Adviser, nor any
of the Investment Adviser&#146;s affiliates will accept on behalf of itself, its affiliates, or the Fund
any compensation or other consideration in connection with the disclosure of portfolio holdings of
the Fund. The Board will review such arrangements annually with the Fund&#146;s Chief Compliance
Officer.
</DIV>
<DIV align="left">
<A name="128"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PORTFOLIO TRANSACTIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to policies established by the Board, the Investment Adviser is responsible for
placing purchase and sale orders and the allocation of brokerage on behalf of the Fund.
Transactions in equity securities are in most cases effected on U.S. 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 Fund. However, Gabelli &#038; Company 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 SEC thereunder,
as well as other regulatory requirements, the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-21<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Board has determined that portfolio transactions may be executed through Gabelli &#038; Company and
its broker-dealer affiliates if, in the judgment of the Investment Adviser, 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, and if, in particular transactions, the affiliated broker-dealers charge
the Fund a rate consistent with that charged to comparable unaffiliated customers in similar
transactions. The Fund has no obligations to deal with any broker or group of brokers in executing
transactions in portfolio securities. In executing transactions, the Investment Adviser seeks to
obtain the best price and execution for the Fund, 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 the Investment Adviser generally seeks reasonably
competitive commission rates, the Fund does not necessarily pay the lowest commission available.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to obtaining the best price and execution, brokers who provide supplemental research,
market and statistical information, or other services (e.g., wire services) to the Investment
Adviser or its affiliates may receive orders for transactions by the Fund. 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 the Investment Adviser under the Advisory Agreement and the expenses of the Investment
Adviser will not necessarily be reduced as a result of the receipt of such supplemental
information. Such information may be useful to the Investment Adviser and its affiliates in
providing services to clients other than the Fund, and not all such information is used by the
Investment Adviser in connection with the Fund. Conversely, such information provided to the
Investment Adviser and its affiliates by brokers and dealers through whom other clients of the
Investment Adviser and its affiliates effect securities transactions may be useful to the
Investment Adviser in providing services to the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although investment decisions for the Fund are made independently from those of the other
accounts managed by the Investment Adviser and its affiliates, investments of the kind made by the
Fund may also be made for those other accounts. When the same securities are purchased for or sold
by the Fund and any of such other accounts, it is the policy of the Investment Adviser and its
affiliates to allocate such purchases and sales in a manner deemed fair and equitable over time to
all of the accounts, including the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the fiscal years ended December&nbsp;31, 2006, December&nbsp;31, 2007 and December&nbsp;31, 2008, the
Fund paid a total of $114,097, $114,926, and $38,268, respectively, in brokerage commissions, of
which Gabelli &#038; Company and its affiliates received, $63,264, $62,379, and $29,726, respectively.
The amount received by Gabelli &#038; Company and its affiliates from the Fund in respect of brokerage
commissions for the fiscal year ended December&nbsp;31, 2008 represented approximately 77.68% of the
aggregate dollar amount of brokerage commissions paid by the Fund for such period and approximately
70.56% of the aggregate dollar amount of transactions by the Fund for such period.
</DIV>


<DIV align="left">
<A name="129"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>REPURCHASE OF COMMON SHARES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is a non-diversified, closed-end, management investment company and as such its
shareholders do not, and will not, have the right to redeem their shares. The Fund, however, may
repurchase its common shares from time to time as and when it deems such a repurchase advisable.
Such repurchases will be made when the Fund&#146;s common shares are trading at a discount of 10% (or
such other percentage as the Board may determine from time to time) or more from NAV. Pursuant to
the 1940 Act, the Fund may repurchase its common shares on a securities exchange (provided that the
Fund has informed its shareholders within the preceding six months of its intention to repurchase
such shares) 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
shareholders of an intention to purchase shares and purchasing in a manner and on a basis that does
not discriminate unfairly against the other shareholders through their interest in the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When the Fund repurchases its common shares for a price below NAV, the NAV 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.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-22<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="130"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PORTFOLIO TURNOVER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The portfolio turnover rates of the Fund for the fiscal years ending December&nbsp;31, 2007 and
December&nbsp;31, 2008 were 13% and 14%, respectively. Portfolio turnover rate is calculated by dividing
the lesser of an investment company&#146;s annual sales or purchases of portfolio securities by the
monthly average value of securities in its portfolio during the year, excluding portfolio
securities the maturities of which at the time of acquisition were one year or less. A high rate of
portfolio turnover involves correspondingly greater brokerage commission expense than a lower rate,
which expense must be borne by the Fund and its shareholders, as applicable. A higher rate of
portfolio turnover may also result in taxable gains being passed to shareholders.
</DIV>
<DIV align="left">
<A name="131"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TAXATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion is a brief summary of certain U.S. federal income tax considerations
affecting the Fund and its shareholders. This 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) retroactively or prospectively. No attempt
is made to present a detailed explanation of all U.S. federal, state, local and foreign tax
concerns affecting the Fund and its shareholders (including shareholders owning a large position in
the Fund), and the discussions set forth herein do not constitute tax advice. Investors are urged
to consult their own tax advisers to determine the tax consequences to them of investing in the
Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Taxation of the Fund</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has qualified, and intends to continue to qualify, as a regulated investment company
under Subchapter M of the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;) (a &#147;RIC&#148;).
Accordingly, the Fund will, among other things, (i)&nbsp;derive in each taxable year at least 90% of its
gross income from (a)&nbsp;dividends, interest (including tax-exempt interest), payments with respect to
certain securities loans, and gains from the sale or other disposition of stock, securities or
foreign currencies, or 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 (b)&nbsp;net income derived from interests in certain publicly traded partnerships that
are treated as partnerships for U.S. federal income tax purposes and that derive less than 90% of
their gross income from the items described in (a)&nbsp;above (each a &#147;Qualified Publicly Traded
Partnership&#148;); 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 value of its total assets is represented by cash and cash items, U.S.
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 the Fund&#146;s total assets and not more than 10% of the outstanding voting securities
of such issuer and (b)&nbsp;not more than 25% of the value of the Fund&#146;s total assets is invested in the
securities of (I)&nbsp;any one issuer (other than U.S. government securities and the securities of other
RICs), (II)&nbsp;any two or more issuers in which the Fund owns more than 20% or more of the voting
securities 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 Qualified Publicly Traded Partnerships.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The investments of the Fund in partnerships, including Qualified Publicly Traded Partnerships,
may result in the Fund being subject to state, local, or foreign income, franchise or withholding
tax liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a RIC, the Fund generally is not or will not be, as the case may be, subject to U.S.
federal income tax on income and gains that it distributes each taxable year to shareholders, if it
distributes at least 90% of the sum of the Fund&#146;s (i)&nbsp;investment company taxable income (which
includes, among other items, dividends, interest and the excess of any net short-term capital gain
over net long-term capital loss and other taxable income, other than any net long-term capital
gain, reduced by deductible expenses) 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 Fund intends to distribute at least annually substantially all of such
income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&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 tax, the
Fund 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 gain or loss) for the calendar year, (ii)
98% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a
one-year period generally ending on October&nbsp;31 of the calendar year (unless an election is
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-23<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">made to use the fund&#146;s fiscal year), and (iii)&nbsp;certain undistributed amounts from previous
years on which a fund paid no federal income tax. While the Fund intends to distribute any income
and capital gain in the manner necessary to minimize imposition of the 4% excise tax, there can be
no assurance that sufficient amounts of the Fund&#146;s taxable income and capital gain will be
distributed to avoid entirely the imposition of the tax. In that event, the Fund will be liable for
the 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A distribution will be treated as paid during the calendar year if it is paid during the
calendar year or declared by the Fund in October, November or December of the year, payable to
shareholders of record on a date during such a month and paid by the Fund during January of the
following year. Any such distributions paid during January of the following year will be deemed to
be received no later than December&nbsp;31 of the year the distributions are declared, rather than when
the distributions are received.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund 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 Fund&#146;s shareholders would not be deductible by the Fund in computing its
taxable income. To qualify again to be taxed as a RIC in a subsequent year, the Fund would be
required to distribute to its shareholders its earnings and profits attributable to non-RIC years.
In addition, if the Fund failed to qualify as a RIC for a period greater than two taxable years,
then the Fund would be required to elect to recognize and pay tax on any net built-in gain (the
excess of aggregate gain, including items of income, over aggregate loss that would have been
realized if the Fund had been liquidated) or, alternatively, be subject to taxation on such
built-in gain 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain or loss on the sales of securities by the Fund will generally be long-term capital gain
or loss if the securities have been held by the Fund 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency gain or loss on non-U.S. dollar-denominated securities and on any non-U.S.
dollar-denominated futures contracts, options and forward contracts that are not section 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments by the Fund in certain &#147;passive foreign investment companies&#148; (&#147;PFICs&#148;) could
subject such fund 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 shareholders. Elections may be available to the Fund to mitigate the effect of this tax provided
that the PFIC complies with certain reporting requirements, 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 Shareholders.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest in debt obligations purchased at a discount with the result that the Fund
may be required to accrue income for U.S. federal income tax purposes before amounts due under the
obligations are paid. The Fund 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 certain U.S. federal income tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&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
Fund, the Fund 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 Fund and therefore would be subject to the
distribution requirements of the Code. This might prevent the Fund from distributing 90% of its
investment company taxable income as is required in order to avoid Fund-level federal income
taxation on all of its income, or might prevent the Fund from distributing enough ordinary income
and capital gain net income to avoid completely the imposition of the excise tax. To avoid this
result, the Fund may be required to borrow money or dispose of securities to be able to make
distributions to its shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund does not meet the asset coverage requirements of the 1940 Act and the Statement of
Preferences, the Fund will be required to suspend distributions to the holders of common shares
until the asset coverage is restored. Such a suspension of distributions might prevent the Fund
from distributing 90% of its investment company taxable income as is required in order to avoid
fund-level federal income taxation on all of its
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">income, or might prevent the fund from distributing enough income and capital gain net income
to avoid completely imposition of the excise tax.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain of the Fund&#146;s investment practices are subject to special and complex U.S. federal
income tax provisions that may, among other things, (i)&nbsp;disallow, suspend or otherwise limit the
allowance of certain losses or deductions, (ii)&nbsp;convert lower taxed long-term capital gains into
higher taxed short-term capital gains or ordinary income, (iii)&nbsp;convert ordinary loss or a
deduction into capital loss (the deductibility of which is more limited), (iv)&nbsp;cause a fund to
recognize income or gain without a corresponding receipt of cash, (v)&nbsp;adversely affect the time as
to when a purchase or sale of stock or securities is deemed to occur, (vi)&nbsp;adversely alter the
characterization of certain complex financial transactions and (vii)&nbsp;produce income that will not
qualify as good income for purposes of the 90% annual gross income requirement described above. The
Fund will monitor its transactions and may make certain tax elections to mitigate the effect of
these rules and prevent disqualification of the fund as a regulated investment company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Foreign Taxes</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since the Fund may invest in foreign securities, income from such securities may be subject to
non-U.S. taxes. The Fund expects to invest less than 35% of its total assets in foreign securities.
As long as the Fund continues to invest less than 35% of its assets in foreign securities it will
not be eligible to elect to &#147;pass-through&#148; to shareholders of a fund 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"><B>Taxation of Shareholders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will determine either to distribute or to retain for reinvestment all or part of its
net capital gain. If any such gain is retained, the Fund will be subject to a tax of 35% of such
amount. In that event, the Fund expects to designate the retained amount as undistributed capital
gain in a notice to its shareholders, 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 Fund against its federal income
tax liability and to claim refunds to the extent that the credit exceeds such liability and (iii)
will increase its basis in its shares of the Fund by an amount equal to 65% of the amount of
undistributed capital gain included in such shareholder&#146;s gross income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions paid by the Fund from its investment company taxable income, which includes net
short-term capital gain, generally are taxable as ordinary income to the extent of the Fund&#146;s
earnings and profits. Such distributions, if designated by the Fund, may, however, qualify
(provided holding period and other requirements are met by the Fund and its shareholders) (i)&nbsp;for
the dividends received deduction available to corporations, but only to the extent that the Fund&#146;s
income consists of dividend income from U.S. corporations and (ii)&nbsp;for taxable years beginning on
or before December&nbsp;31, 2010, as qualified dividend income eligible for the reduced maximum federal
tax rate to individuals of generally 15% (currently 0% for individuals in lower tax brackets) to
the extent that the Fund receives qualified dividend income. Qualified dividend income is, in
general, dividend income from taxable domestic corporations and certain qualified foreign
corporations (e.g., generally, foreign corporations incorporated in a possession of the United
States or in certain countries with a qualifying comprehensive tax treaty with the United States,
or whose shares with respect to which such dividend is paid is readily tradable on an established
securities market in the United States). A qualified foreign corporation does not include a foreign
corporation which for the taxable year of the corporation in which the dividend was paid, or the
preceding taxable year, is a PFIC. If the Fund engages in certain securities lending transactions,
the amount received by the Fund that is the equivalent of the dividends paid by the issuer on the
securities loaned will not be eligible for qualified dividend income treatment. Distributions of
net capital gain designated as capital gain distributions, if any, are taxable to shareholders at
rates applicable to long-term capital gain, whether paid in cash or in shares, and regardless of
how long the shareholder has held the Fund&#146;s shares. Capital gain distributions are not eligible
for the dividends received deduction. The maximum federal tax rate on net long-term capital gain is
currently 15% (for individuals in lower brackets). The maximum rate on long-term capital gain is
scheduled to rise to 20% for gains realized in taxable years beginning after December&nbsp;31, 2010.
Unrecaptured Section&nbsp;1250 gain distributions, if any, will be subject to a 25% tax. Distributions
in excess of the Fund&#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 shares
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-25<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">are held as a capital asset). 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an individual receives a dividend that is eligible for qualified dividend income treatment,
and such dividend constitutes an &#147;extraordinary dividend,&#148; any loss on the sale or exchange of
shares in respect of which the extraordinary dividend was paid, then the loss will be long-term
capital loss to the extent of such extraordinary dividend. An &#147;extraordinary dividend&#148; for this
purpose is generally a dividend (i)&nbsp;in an amount greater than or equal to 5% of the taxpayer&#146;s tax
basis (or trading value) in a share of stock, aggregating dividends with ex-dividend dates within
an 85-day period or (ii)&nbsp;in an amount greater than 20% of the taxpayer&#146;s tax basis (or trading
value) in a share of stock, aggregating dividends with ex-dividend dates within a 365-day period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The IRS currently requires that a registered investment company that has two or more classes
of stock allocate to each such class proportionate amounts of each type of its income (such as
ordinary income, capital gains, dividends qualifying for the dividends received deduction (&#147;DRD&#148;)
and qualified dividend income) based upon the percentage of total dividends paid out of current or
accumulated earnings and profits to each class for the tax year. Accordingly, the Fund intends each
year to allocate capital gain dividends, dividends qualifying for the DRD and dividends that
constitute qualified dividend income, if any, between its common shares and preferred shares in
proportion to the total dividends paid out of current or accumulated earnings and profits to each
class with respect to such tax year. Distributions in excess of the Fund&#146;s current and accumulated
earnings and profits, if any, however, will not be allocated proportionately among the common
shares and preferred shares. Since the Fund&#146;s current and accumulated earnings and profits will
first be used to pay dividends on its preferred shares, distributions in excess of such earnings
and profits, if any, will be made disproportionately to holders of common shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders may be entitled to offset their capital gain distributions (but not distributions
eligible for qualified dividend income treatment) with capital loss. There are a number of
statutory provisions affecting when capital loss may be offset against capital gain, and limiting
the use of loss from certain investments and activities. Accordingly, shareholders with capital
loss are urged to consult their tax advisers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The price of shares purchased at any time may reflect the amount of a forthcoming
distribution. Those purchasing shares 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain types of income received by the Fund from real estate investment trusts (&#147;REITs&#148;),
real estate mortgage investment conduits (&#147;REMICs&#148;), taxable mortgage pools or other investments
may cause the Fund to designate some or all of its distributions as &#147;excess inclusion income.&#148; To
Fund shareholders such excess inclusion income may (1)&nbsp;constitute taxable income, as &#147;unrelated
business taxable income&#148; (&#147;UBTI&#148;) for those shareholders who would otherwise be tax-exempt such as
individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable
entities; (2)&nbsp;not be offset by otherwise allowable deductions for tax purposes; (3)&nbsp;not be eligible
for reduced U.S. withholding for non-U.S. shareholders even from tax treaty countries; and (4)
cause the Fund to be subject to tax if certain &#147;disqualified organizations&#148; as defined by the Code
are Fund shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon a sale, exchange, redemption or other disposition of shares, a shareholder will generally
realize a taxable gain or loss equal to the difference between the amount of cash and the fair
market value of other property received and the shareholder&#146;s adjusted tax basis in the shares.
Such gain or loss will be treated as long-term capital gain or loss if the shares have been held
for more than one year. Any loss realized on a sale or exchange will be disallowed to the extent
the shares disposed of are replaced by substantially identical shares within a 61-day period
beginning 30&nbsp;days before and ending 30&nbsp;days after the date that the shares are disposed of. In such
a case, the basis of the shares acquired will be adjusted to reflect the disallowed loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any loss realized by a shareholder on the sale of Fund shares held by the shareholder for six
months or less will be treated for tax purposes as a long-term capital loss to the extent of any
capital gain distributions received by the shareholder (or amounts credited to the shareholder as
an undistributed capital gain) with respect to such shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ordinary income distributions and capital gain distributions also may be subject to state and
local taxes. Shareholders are urged to consult their own tax advisers regarding specific questions
about federal (including the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-26<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">application of the alternative minimum tax rules), state, local or foreign tax consequences to
them of investing in the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders will receive, if appropriate, various written notices after the close of each of
the Fund&#146;s taxable years regarding the U.S. federal income tax status of certain dividends,
distributions and deemed distributions that were paid (or that are treated as having been paid) by
the Fund to its shareholders during the preceding taxable year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a shareholder recognizes a loss with respect to the Fund&#146;s shares of $2&nbsp;million or more for
an individual shareholder or $10&nbsp;million or more for a corporate shareholder, the shareholder must
file with the IRS a disclosure statement on Form&nbsp;8886. Direct shareholders of portfolio securities
are in many cases exempted from this reporting requirement, but under current guidance,
shareholders of a regulated investment company are not exempted. 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. Shareholders 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: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends paid or distributions made by the Fund to shareholders who are non-resident aliens
or foreign entities (&#147;foreign investors&#148;) 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 foreign
investor will be required to provide an IRS Form W-8BEN certifying its entitlement to benefits
under a treaty. The withholding tax does not apply to regular dividends paid or distributions made
to a foreign investor who provides a Form W-8ECI, certifying that the dividends or distributions
are effectively connected with the foreign investor&#146;s conduct of a trade or business within the
United States. Instead, the effectively connected dividends or distributions will be subject to
regular U.S. income tax as if the foreign investor were a U.S. shareholder. A non-U.S. corporation
receiving effectively connected dividends or distributions may also be subject to additional
&#147;branch profits tax&#148; imposed at a rate of 30% (or lower treaty rate). A foreign investor who fails
to provide an IRS Form W-8BEN or other applicable form may be subject to backup withholding at the
appropriate rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, United States federal withholding tax will not apply to any gain or income
realized by a foreign investor 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: 12pt"><B>Backup Withholding</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may be required to withhold U.S. federal income tax on all taxable distributions and
redemption proceeds payable to non-corporate shareholders who fail to provide the Fund 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 shareholder&#146;s U.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: 6pt">&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 shares of the Fund
should consult their own tax advisers regarding the purchase, ownership and disposition of shares
of the Fund.
</DIV>
<DIV align="left">
<A name="132"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BENEFICIAL OWNERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2008, there were no persons known to the Fund to be beneficial owners of
more than 5% of the Fund&#146;s outstanding common shares or preferred shares. The following person was
known to the Fund to be beneficial owner of more than 5% of the Fund&#146;s outstanding shares of
preferred shares as of the record date:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-27<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name and Address of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>and Nature of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Beneficial Owner(s)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title of Class</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Ownership</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Percent of Class</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Merrill Lynch, Pierce
Fenner &#038; Smith, Inc.<BR>

4 World Financial Center <BR>

250 Vesey Street <BR>

New York, NY 10080
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Series&nbsp;B Preferred
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#151;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2008, the Trustees and Officers of the Fund as a group beneficially owned
approximately 2% of the Fund&#146;s outstanding common shares and less than 1% of the Fund&#146;s outstanding
Series&nbsp;A Preferred.
</DIV>

<DIV align="left">
<A name="133"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Book-Entry-Only Issuance</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Depository Trust Company (&#147;DTC&#148;) will act as securities depository for the securities
offered pursuant to the Prospectus. The information in this section concerning DTC and DTC&#146;s
book-entry system is based upon information obtained from DTC. The securities offered hereby
initially will be issued only as fully-registered securities registered in the name of Cede &#038; Co.
(as nominee for DTC). One or more fully-registered global security certificates initially will be
issued, representing in the aggregate the total number of securities, and deposited with DTC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DTC is a limited-purpose trust company organized under the New York Banking Law, a &#147;banking
organization&#148; within the meaning of the New York Banking Law, a member of the Federal Reserve
System, a &#147;clearing corporation&#148; within the meaning of the New York Uniform Commercial Code and a
&#147;clearing agency&#148; registered pursuant to the provisions of Section&nbsp;17A of the Securities Exchange
Act of 1934. DTC holds securities that its participants deposit with DTC. DTC also facilities the
settlement among participants of securities transactions, such as transfers and pledges, in
deposited securities through electronic computerized book-entry changes in participants&#146; accounts,
thereby eliminating the need for physical movement of securities certificates. Direct DTC
participants include securities brokers and dealers, banks, trust companies, clearing corporations
and certain other organizations. Access to the DTC system is also available to others such as
securities brokers and dealers, banks and trust companies that clear through or maintain a
custodial relationship with a direct participant, either directly or indirectly through other
entities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of securities within the DTC system must be made by or through direct participants,
which will receive a credit for the securities on DTC&#146;s records. The ownership interest of each
actual purchaser of a security, a beneficial owner, is in turn to be recorded on the direct or
indirect participants&#146; records. Beneficial owners will not receive written confirmation from DTC of
their purchases, but beneficial owners are expected to receive written confirmations providing
details of the transactions, as well as periodic statements of their holdings, from the direct or
indirect participants through which the beneficial owners purchased securities. Transfers of
ownership interests in securities are to be accomplished by entries made on the books of
participants acting on behalf of beneficial owners. Beneficial owners will not receive certificates
representing their ownership interests in securities, except as provided herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DTC has no knowledge of the actual beneficial owners of the securities being offered pursuant
to the prospectus; DTC&#146;s records reflect only the identity of the direct participants to whose
accounts such securities are credited, which may or may not be the beneficial owners. The
participants will remain responsible for keeping account of their holdings on behalf of their
customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conveyance of notices and other communications by DTC to direct participants, by direct
participants to indirect participants, and by direct participants and indirect participants to
beneficial owners will be governed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on the securities will be made to DTC. DTC&#146;s practice is to credit direct
participants&#146; accounts on the relevant payment date in accordance with their respective holdings
shown on DTC&#146;s records unless DTC has
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-28<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">reason to believe that it will not receive payments on such payment date. Payments by
participants to beneficial owners will be governed by standing instructions and customary practices
and will be the responsibility of such participant and not of DTC or the Fund, subject to any
statutory or regulatory requirements as may be in effect from time to time. Payment of
distributions to DTC is the responsibility of the Fund, disbursement of such payments to direct
participants is the responsibility of DTC, and disbursement of such payments to the beneficial
owners is the responsibility of direct and indirect participants. Furthermore each beneficial owner
must rely on the procedures of DTC to exercise any rights under the securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DTC may discontinue providing its services as securities depository with respect to the
securities at any time by giving reasonable notice to the Fund. Under such circumstances, in the
event that a successor securities depository is not obtained, certificates representing the
securities will be printed and delivered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Proxy Voting Procedures</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has adopted the proxy voting procedures of the Investment Adviser and has directed
the Investment Adviser to vote all proxies relating to the Fund&#146;s voting securities in accordance
with such procedures. The proxy voting procedures are attached. They are also on file with the
Securities and Exchange Commission and can be reviewed and copied at the Securities and Exchange
Commission&#146;s Public Reference Room in Washington, D.C., and information on the operation of the
Public Reference Room may be obtained by calling the Securities and Exchange Commission at
202-551-8090. The proxy voting procedures are also available on the EDGAR Database on the
Securities and Exchange Commission&#146;s internet site (http://www.sec.gov) and copies of the proxy
voting procedures may be obtained, after paying a duplicating fee, by electronic request at the
follow E-mail address: publicinfo@sec.gov, or by writing the Securities and Exchange Commission&#146;s
Public Reference Section, Washington, D.C. 20549-0102.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Code of Ethics</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund and the Investment Adviser have adopted a code of ethics (the &#147;Code of Ethics&#148;) under Rule
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 Fund. The Code of Ethics can be reviewed and copied at the SEC&#146;s Public Reference Room
in Washington, D.C. Information on the operations of the Reference Room may be obtained by calling
the SEC at 202-551-8090. The Code of Ethics is also available on the EDGAR database on the SEC&#146;s
Internet 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 SEC&#146;s Public Reference Room, Washington, D.C. 20549-0102.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Joint Code of Ethics for Chief Executive and Senior Financial Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund and the Investment Adviser have adopted a code of conduct for the principal executive
and financial officers. This code of conduct sets forth policies to guide the principal executive
and financial officers in the performance of their duties. The code of conduct is on file with the
SEC and can be reviewed and copied at the SEC&#146;s Public Reference Room in Washington, D.C., and
information on the operation of the Public Reference Room may be obtained by calling the Commission
at 202-551-8090. The code of conduct is also available on the EDGAR Database on the SEC&#146;s Internet
web site at http://www.sec.gov, and copies of the code of conduct may be obtained, after paying a
duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov, or by
writing the SEC&#146;s Public Reference Room, Washington, D.C. 20549-0102.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Financial Statements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The audited financial statements included in the annual report to the Fund&#146;s shareholders for
the year ended December&nbsp;31, 2008, together with the report of &#091;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>&#093;, are incorporated
herein by reference to the Fund&#146;s annual report. All other portions of the annual report are not
incorporated herein by reference and are not part of the registration statement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-29<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Independent Registered Public Accounting Firm</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>&#093; serves as the Independent Registered Public Accounting Firm of the Fund and
audits the financial statements of the Fund. &#091;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>&#093; is located at &#091;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>&#093;.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-30<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left">
<A name="134"></A>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">APPENDIX A
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">GAMCO INVESTORS, INC. and AFFILIATES
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">The Voting of Proxies on Behalf of Clients

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rules&nbsp;204(4)-2 and 204-2 under the Investment Advisers Act of 1940 and Rule&nbsp;30b1-4 under the
Investment Company Act of 1940 require investment advisers to adopt written policies and procedures
governing the voting of proxies on behalf of their clients.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These procedures will be used by GAMCO Asset Management Inc., Gabelli Funds, LLC, Gabelli
Securities, Inc., 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 to 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>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>I. </B>Proxy Voting Committee
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Proxy Voting Committee was originally formed in April&nbsp;1989 for the purpose of formulating
guidelines and reviewing proxy statements within the parameters set by the substantive proxy voting
guidelines originally published by GAMCO Investors, Inc. in 1988 and updated periodically, a copy
of which are appended as Exhibit&nbsp;A. The Committee will include representatives of Research,
Administration, Legal, and the Advisers. Additional or replacement members of the Committee will
be nominated by the Chairman and voted upon by the entire Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, the Director of Proxy Voting Services, using the Proxy Guidelines, recommendations
of Institutional Shareholder Corporate Governance Service (&#147;ISS&#148;), other third-party services, and
the analysts of Gabelli &#038; 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 &#038; 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.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%">&nbsp;</TD>
    <TD width="3%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Conflicts of Interest.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Advisers have implemented these proxy voting procedures in order to prevent
conflicts of interest from influencing their proxy voting decisions. By following
the Proxy Guidelines, as well as the recommendations of ISS, other third-party
services and the analysts of Gabelli &#038; Company, the Advisers are able to avoid,
wherever possible, the influence of potential conflicts of interest. Nevertheless,
circumstances may arise in which one or more of the Advisers are faced with a
conflict of interest or the appearance of a conflict of interest in connection with
its vote. In general, a conflict of interest may arise when an Adviser knowingly
does business with an issuer, and may appear to have a material conflict between its
own interests and the interests of the shareholders of an investment company managed
by one of the Advisers regarding how the proxy is to be voted. A conflict also may
exist when an Adviser has actual knowledge of a material business arrangement between
an issuer and an affiliate of the Adviser.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In practical terms, a conflict of interest may arise, for example, when a proxy is
voted for a company that is a client of one of the Advisers, such as GAMCO Asset
Management Inc. A conflict also may arise when a client of one of the Advisers has
made a shareholder proposal in a proxy to be voted upon by one or more of the
Advisers. The Director of Proxy Voting Services, together with the Legal Department,
will scrutinize all proxies for these or other situations that may give rise to a
conflict of interest with respect to the voting of proxies.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%">&nbsp;</TD>
    <TD width="3%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Operation of Proxy Voting Committee</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 &#038; Company, Inc. analysts. The Chief Investment Officer or
the Gabelli &#038; Company, Inc. analysts may be invited to present their viewpoints. If
the Director of Proxy Voting Services or the Legal Department believe that the matter
before the committee is one with respect to which a conflict of interest may exist
between the Advisers and their clients, counsel will provide an opinion to the
Committee concerning the conflict. If the matter is one in which the interests of
the clients of one or more of Advisers may diverge, counsel will so advise and the
Committee may make different recommendations as to different clients. For any
matters where the recommendation may trigger appraisal rights, counsel will provide
an opinion concerning the likely risks and merits of such an appraisal action.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>II. </B>Social Issues and Other Client Guidelines
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&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>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>III. </B>Client Retention of Voting Rights
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&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.
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Operations</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Legal Department</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Proxy Department</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Investment professional assigned to the account</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>IV. </B>Voting Records
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Adviser name&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attn: Proxy Voting Department
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Corporate Center
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rye, New York 10580-1422
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>V. </B>Voting Procedures
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. Custodian banks, outside brokerage firms and First Clearing Corporation are responsible for
forwarding proxies directly to GAMCO.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Proxies are received in one of two forms:
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Shareholder Vote Authorization Forms (VAFs) &#151; Issued by Broadridge. VAFs must be voted
through the issuing institution causing a time lag. Broadridge is an outside service
contracted by the various institutions to issue proxy materials.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Proxy cards which may be voted directly.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. Upon receipt of the proxy, the number of shares each form represents is logged into the
proxy system according to security.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. In the case of a discrepancy such as an incorrect number of shares, an improperly signed or
dated card, wrong class of security, etc., the issuing custodian is notified by phone. A corrected
proxy is requested. 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4. Upon receipt of instructions from the proxy committee (see Administrative), the votes are
cast and recorded for each account on an individual basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">PROXY EDGE records include:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security Name and Cusip Number
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date and Type of Meeting (Annual, Special, Contest) Client Name
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adviser or Fund Account Number
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors&#146; Recommendation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;How GAMCO voted for the client on each issue The rationale for the vote when it is appropriate
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Records prior to the institution of the PROXY EDGE system include:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security name
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Type of Meeting (Annual, Special, Contest)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date of Meeting
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name of Custodian
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name of Client
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Custodian Account Number
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adviser or Fund Account Number
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors&#146; recommendation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;How the Adviser voted for the client on each issue
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date the proxy statement was received and by whom Name of person posting the vote
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date and method by which the vote was cast
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5. VAFs are kept alphabetically by security. Records for the current proxy season are located
in the Proxy Voting Department office. In preparation for the upcoming season, files are
transferred to an offsite storage facility during January/February.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6. Shareholder Vote Authorization Forms issued by Broadridge are always sent directly to a
specific individual at Broadridge.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7. If a proxy card or VAF is received too late to be voted in the conventional matter, every
attempt is made to vote on one of the following ways:
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>VAFs can be faxed to Broadridge up until the time of the meeting. This is followed up by the
mailing of the original form.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>When a solicitor has been retained, that person is called. At the solicitor&#146;s direction, the
proxy is faxed.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8. In the case of a proxy contest, records are maintained for each opposing entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9. Voting in Person
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">a) 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:
</DIV>

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


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Banks and brokerage firms using the services at Broadridge:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The back of the VAF is stamped indicating that we wish to vote in person. The forms are then sent
overnight to Broadridge. Broadridge issues individual legal proxies and sends them back via
overnight (or the Adviser can pay messenger charges). Lead time of at least two weeks prior to the
meeting is needed to do this. Alternatively, the procedures detailed below for banks not using
Broadridge may be implemented.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Banks and brokerage firms issuing proxies directly:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The bank is called and/or faxed and a legal proxy is requested. All legal proxies should
appoint:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Representative of &#091;Adviser name&#093; with full power of substitution.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">b) The legal proxies are given to the person attending the meeting, along with the following
supplemental material:
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A limited Power of Attorney appointing the attendee an Adviser representative.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


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



</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 votes have previously been cast, if
the votes have been rescinded, etc.).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A sample ERISA and Individual contract.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A sample of the annual authorization to vote proxies form.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A copy of our most recent Schedule&nbsp;13D filing (if applicable).</TD>
</TR>

</TABLE>
</DIV>


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<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Appendix&nbsp;A
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Proxy Guidelines

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">PROXY VOTING GUIDELINES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>GENERAL POLICY STATEMENT</I>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&nbsp;1988, we are neither <I>for</I>
nor <I>against </I>management. We are for shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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"><I>BOARD OF DIRECTORS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Factors taken into consideration include:
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Historical responsiveness to shareholders</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This may include such areas as:</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Paying greenmail</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Failure to adopt shareholder resolutions receiving a majority of shareholder votes</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Qualifications</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Nominating committee in place</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Number of outside directors on the board</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Attendance at meetings</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Overall performance</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>SELECTION OF AUDITORS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In general, we support the Board of Directors&#146; recommendation for auditors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>BLANK CHECK PREFERRED STOCK</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We oppose the issuance of blank check preferred stock.
</DIV>


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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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"><I>CLASSIFIED BOARD</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A classified board is one where the directors are divided into classes with overlapping terms. A
different class is elected at each annual meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Where a classified board is in place we will generally not support attempts to change to an
annually elected board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">When an annually elected board is in place, we generally will not support attempts to classify the
board.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>INCREASE AUTHORIZED COMMON STOCK</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The request to increase the amount of authorized shares is considered on a case-by-case basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Factors taken into consideration include:
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Future use of additional shares</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stock split</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stock option or other executive compensation plan</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Finance growth of company/strengthen balance sheet</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Aid in restructuring</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Improve credit rating</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Implement a poison pill or other takeover defense</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amount of additional stock to be authorized and its dilutive effect</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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"><I>CONFIDENTIAL BALLOT</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We support the idea that a shareholder&#146;s identity and vote should be treated with confidentiality.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">However, we look at this issue on a case-by-case basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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"><I>CUMULATIVE VOTING</I>
</DIV>



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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In general, we support cumulative voting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Where cumulative voting is in place, we will vote against any proposal to rescind this shareholder
right.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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"><I>DIRECTOR LIABILITY AND INDEMNIFICATION</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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"><I>EQUAL ACCESS TO THE PROXY</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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"><I>FAIR PRICE PROVISIONS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We support fair price provisions because we feel all shareholders should be entitled to receive the
same benefits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Reviewed on a case-by-case basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>GOLDEN PARACHUTES</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Golden parachutes are severance payments to top executives who are terminated or demoted after a
takeover.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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"><I>ANTI-GREENMAIL PROPOSALS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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"><I>LIMIT SHAREHOLDERS&#146; RIGHTS TO CALL SPECIAL MEETINGS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We support the right of shareholders to call a special meeting.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>CONSIDERATION OF NONFINANCIAL EFFECTS OF A MERGER</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Reviewed on a case-by-case basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>MERGERS, BUYOUTS, SPIN-OFFS, RESTRUCTURINGS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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"><I>MILITARY ISSUES</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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"><I>NORTHERN IRELAND</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Shareholder proposals requesting the signing of the MacBride principles for the purpose of
countering the discrimination of Catholics in hiring practices must be evaluated on a purely
economic set of criteria for our ERISA clients. As such, decisions will be made on a case-by-case
basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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"><I>OPT OUT OF STATE ANTI-TAKEOVER LAW</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This shareholder proposal requests that a company opt out of the coverage of the state&#146;s
anti-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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consider this on a case-by-case basis. Our decision will be based on the following:
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>State of Incorporation</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Management history of responsiveness to shareholders</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Other mitigating factors</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>POISON PILL</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In general, we do not endorse poison pills.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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"><I>REINCORPORATION</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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"><I>STOCK OPTION PLANS</I>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Method of payment</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amount of stock already authorized but not yet issued under existing stock option plans</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>SUPERMAJORITY VOTE REQUIREMENTS</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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"><I>LIMIT SHAREHOLDERS RIGHT TO ACT BY WRITTEN CONSENT</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Reviewed on a case-by-case basis.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">PART C
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">OTHER INFORMATION

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ITEM 25. FINANCIAL STATEMENTS AND EXHIBITS
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial Statements(1)</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Statement of Assets and Liabilities</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Statement of Operations</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Statement of Changes in Net Assets</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notes to Financial Statements</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Report of Independent Registered Public Accounting Firm</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Exhibits</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(1)&nbsp;Amended and Restated Agreement and Declaration of Trust of Registrant(2)</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Statement of Preferences with respect to the 5.625% Series&nbsp;A Cumulative Preferred
Shares(3)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Statement of Preferences with respect to the Series&nbsp;B Auction Rate Cumulative
Preferred Shares(3)</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amended and Restated By-Laws of Registrant(4)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(1)&nbsp;Form of Registrant&#146;s Common Share Certificate(5)</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Registrant&#146;s 5.625% Series&nbsp;A Cumulative Preferred Share Certificate(3)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Registrant&#146;s Series&nbsp;B Auction Market Preferred Share Certificate(3)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Subscription Certificate(5)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Notice of Guaranteed Delivery(5)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Subscription, Distribution and Escrow Agency Agreement(5)</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Automatic Dividend Reinvestment and Voluntary Cash Purchase Plan of
Registrant(6)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Investment Advisory Agreement between Registrant and Gabelli Funds,
LLC(6)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Underwriting Agreement(11)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(1)&nbsp;Form of Custodian Contract between Registrant and Boston Safe Deposit and
Trust Company (later assigned to State Street Bank &#038; Trust Company)(6)(8)</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Custodian Fee Schedule between Registrant and Boston Safe Deposit and
Trust Company(6)(8)</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(1)Form of Registrar, Transfer Agency and Service Agreement between Registrant
and Equiserve Trust Company, N.A. (6)</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Auction Agency Agreement(3)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of Broker-Dealer Agreement(3)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form of DTC Agreement(3)</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(l)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(1)Opinion and Consent of Willkie Farr &#038; Gallagher LLP with respect to
legality(7)</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Opinion and Consent of &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;(7)</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(m)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(n)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(1)&nbsp;Consent of Independent Registered Public Accounting firm(7)</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Powers of Attorney(10)</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(o)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(p)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(q)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(r)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Codes of Ethics of the Trust and the Advisor(9)</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</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 nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to the Registrant&#146;s semi-annual report filed September&nbsp;5, 2008 on
Form N-CSRS (File No.&nbsp;811-09243) and the Registrant&#146;s annual report filed March&nbsp;9, 2009 on Form
N-CSR (File No.&nbsp;811-09243).</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference from the Registrant&#146;s Registration Statement on Form N-2, filed with
the Securities and Exchange Commission on May&nbsp;21, 1999.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">





<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 nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference from the Registrant&#146;s Registration Statement on Form N-2, filed with
the Securities and Exchange Commission on July&nbsp;24, 2003.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference from the Registrant&#146;s Registration Statement on Form N-2, filed with
the Securities and Exchange Commission on August&nbsp;19, 1999.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference from the Registrant&#146;s Registration Statement on Form N-2, filed with
the Securities and Exchange Commission on October&nbsp;14, 2004.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference from Pre-Effective Amendment No.&nbsp;1 to the Registrant&#146;s Registration
Statement on Form N-14, filed with the Securities and Exchange Commission on March&nbsp;31, 1999.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>To be filed by amendment.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>Subsequently assigned to State Street Bank and Trust Company.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference from the Registrant&#146;s Registration Statement on Form N-2, filed with
the Securities and Exchange Commission on May&nbsp;10, 2002.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(10)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference from the Registrant&#146;s Registration Statement on Form N-2, File Nos.
333-149415 and 811-09243, as filed with the Securities and Exchange Commission on February&nbsp;27,
2008.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(11)</TD>
    <TD>&nbsp;</TD>
    <TD>To be filed by amendment.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;26. Marketing Arrangements
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Exhibit 2(h) to this Registration Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;27. Other Expenses of Issuance and Distribution
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the estimated expenses to be incurred in connection with the
offering described in this Registration Statement:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SEC registration fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,580</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">New York Stock Exchange listing fee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Printing expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounting fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Legal fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Blue Sky fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Miscellaneous</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,420</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">290,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;28. Persons Controlled by or Under Common Control with Registrant
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NONE
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;29. Number of Holders of Securities as of December&nbsp;31, 2008
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Number of Record</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Title of Class Holders</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common Shares of Beneficial Interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">7,125 Registered</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">29,432 Beneficial</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5.625% Series&nbsp;A Cumulative Preferred Shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">6 Registered</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">1,672 Beneficial</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Series&nbsp;B Auction Market Preferred Shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;30. Indemnification
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The response of this Item is incorporated by reference to the caption &#147;Limitation of Officers&#146;
and Trustees Liability&#148; in the Part&nbsp;B of this Registration Statement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar as indemnification for liability arising under the 1933 Act may be permitted to
trustees, officers and controlling persons of Registrant pursuant to the foregoing provisions, or
otherwise, Registrant has been advised that, in the opinion of the Commission, such indemnification
is against public policy as expressed in the 1933 Act, and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities (other than the payment by
Registrant of expenses incurred or paid by a trustee, officer or controlling person of Registrant
in the successful defense of any action, suit or proceeding) is asserted by such trustee, officer
or controlling person in connection with the securities being registered. Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling precedent, submit to a
court of appropriate jurisdiction the question whether such indemnification by it is against public
policy as expressed in the 1933 Act and will be governed by the final adjudication of such issue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;31. Business and Other Connections of Investment Adviser
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser, a limited liability company organized under the laws of the State of
New York, acts as investment adviser to the Registrant. The Registrant is fulfilling the
requirement of this Item&nbsp;31 to provide a list of the officers and directors of the Investment
Adviser, together with information as to any other business, profession, vocation or employment of
a substantial nature engaged in by the Investment Adviser or those officers and directors during
the past two years, by incorporating by reference the information contained in the Form&nbsp;ADV of the
Investment Adviser filed with the SEC pursuant to the 1940 Act (Commission File No.&nbsp;801-26202).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;32. Location of Accounts and Records
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accounts and records of the Registrant are maintained in part at the office of the
Investment Adviser at One Corporate Center, Rye, New York 10580-1422, in part at the offices of
the Custodian, The Bank of New York Mellon Corporation, 135 Santilli Highway, Massachusetts 02149,
at the offices of the Fund&#146;s Administrator, PNC Global Investment Servicing, 400 Bellevue Parkway,
Wilmington, Delaware, 19809, and in part at the offices of Computershare Trust Company, N.A., 250
Royall Street, Canton, Massachusetts 02021.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;33. Management Services
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;34. Undertakings
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Registrant undertakes to suspend the offering of shares until the prospectus is amended,
if subsequent to the effective date of this registration statement, its net asset value declines
more than ten percent from its net asset value as of the effective date of the registration
statement or its net asset value increases to an amount greater than its net proceeds as stated in
the prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;Registrant undertakes:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to file, during and period in which offers or sales are being made, a
post-effective amendment to this Registration Statement:</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to include any prospectus required by Section&nbsp;10(a)(3) of the
Securities Act;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to reflect in the prospectus any facts or events after the
effective date of the Registration Statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a
fundamental change in the information set forth in the Registration Statement;
and</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


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


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to include any material information with respect to the plan of
distribution not previously disclosed in the Registration Statement or any
material change to such information in the Registration Statement.</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that for the purpose of determining any liability under the Securities Act,
each post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities at
that time shall be deemed to be the initial bona fide offering thereof;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to remove from registration by means of a post-effective amendment any of
the securities being registered which remain unsold at the termination of the
offering; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that, for the purpose of determining liability under the Securities Act to
any purchaser, if the Registrant is subject to Rule&nbsp;430C: Each prospectus filed
pursuant to Rule&nbsp;497(b), (c), (d)&nbsp;or (e)&nbsp;under the Securities Act as part of a
registration statement relating to an offering, other than prospectuses filed in
reliance on Rule&nbsp;430A under the Securities Act shall be deemed to be part of and
included in the registration statement as of the date it is first used after
effectiveness. Provided, however, that no statement made in a registration statement
or prospectus that is part of the registration or made in a document incorporated or
deemed incorporated by reference into the registration statement or prospectus that
is part of the registration statement will, as to a purchaser with a time of contract
of sale prior to such first use, supersede or modify any statement that was made in
the registration statement or prospectus that was part of the registration statement
or made in any such document immediately prior to such date of first use.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that for the purpose of determining liability of the Registrant under the
Securities Act to any purchaser in the initial distribution of securities:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The undersigned Registrant undertakes that in a primary offering of securities of the
undersigned Registrant pursuant to this registration statement, regardless of the
underwriting method used to sell the securities to the purchaser, if the securities
are offered or sold to such purchaser by means of any of the following
communications, the undersigned Registrant will be a seller to the purchaser and will
be considered to offer or sell such securities to the purchaser:</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any preliminary prospectus or prospectus of the undersigned
Registrant relating to the offering required to be filed pursuant to Rule&nbsp;497
under the Securities Act.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the portion of any advertisement pursuant to Rule&nbsp;482 under the
Securities Act relating to the offering containing material information about
the undersigned Registrant or its securities provided by or on behalf of the
undersigned Registrant; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other communication that is an offer in the offering made by
the undersigned Registrant to the purchaser.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Registrant undertakes:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that, for the purpose of determining any liability under the Securities Act
the information omitted from the form of prospectus filed as part of the Registration
Statement in reliance upon Rule&nbsp;430A and contained in the form of prospectus filed by
the Registrant pursuant to Rule 497(h) will be deemed to be a part of the
Registration Statement as of the time it was declared effective.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that, for the purpose of determining any liability under the Securities
Act, each post-effective amendment that contains a form of prospectus will be deemed
to be a new Registration Statement relating to the securities offered therein, and
the offering of such securities at that time will be deemed to be the initial bona
fide offering thereof.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


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



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;Registrant undertakes to send by first class mail or other means designed to ensure
equally prompt delivery, within two business days of receipt of a written or oral request, any
Statement of Additional Information constituting Part&nbsp;B of this Registration Statement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SIGNATURES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As required by the Securities Act of 1933, this Registrant&#146;s Registration Statement has been
signed on behalf of the Registrant, in the City of Rye, State of New York, on the 20th day of
March, 2009.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">THE GABELLI UTILITY TRUST<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Bruce N. Alpert
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Bruce N. Alpert&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As required by the Securities Act of 1933 and the Investment Company Act of 1940, this
Registration Statement has been signed below by the following persons in the capacities and on the
dates indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center">Signature</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Title</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Date</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Anthony J. Colavita
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trustee&nbsp;&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;20, 2009&nbsp;&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
James P. Conn
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trustee&nbsp;&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;20, 2009&nbsp;&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Vincent D. Enright
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trustee&nbsp;&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;20, 2009&nbsp;&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
John D. Gabelli
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trustee&nbsp;&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;20, 2009&nbsp;&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Agnes Mullady
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Agnes Mullady
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Treasurer&nbsp;&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;20, 2009&nbsp;&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Anthony R. Pustorino
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trustee&nbsp;&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;20, 2009&nbsp;&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Salvatore J. Zizza
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trustee&nbsp;&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;20, 2009&nbsp;&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Bruce N. Alpert
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Bruce N. Alpert<BR>
Attorney-in-Fact
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President&nbsp;&nbsp;&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;20, 2009&nbsp;&nbsp;&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</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 nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Pursuant to a Power of Attorney.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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