UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-04700
------------
The Gabelli Equity Trust Inc.
-------------------------------------------------------------
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
-------------------------------------------------
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
-------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-800-422-3554
----------------
Date of fiscal year end: December 31
--------------
Date of reporting period: March 31, 2007
----------------
Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC
20549. The OMB has reviewed this collection of information under the clearance
requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS.
The Schedule(s) of Investments is attached herewith.
THE GABELLI EQUITY TRUST INC.
First Quarter Report
March 31, 2007
TO OUR SHAREHOLDERS,
During the first quarter of 2007, The Gabelli Equity Trust's (the "Fund")
total return gained 3.48% on a net asset value ("NAV") basis while the Standard
& Poor's ("S&P") 500 Index rose 0.64% and the Dow Jones Industrial Average
declined (0.28)%. The Fund's NAV rose 22.14% for the past twelve months,
outperforming the benchmark S&P 500 Index for this period, as well as most of
the longer term intervals shown in the comparative results table below. The
Fund's market price on March 31, 2007 was $9.87, which equates to a 3.68%
premium to its NAV of $9.52 at the end of the quarter. The Fund's market price,
adjusted for distributions, rose 7.08% during the first quarter and was up
28.23% for the twelve month period ended March 31, 2007.
Enclosed is the investment portfolio as of March 31, 2007.
COMPARATIVE RESULTS
-------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH MARCH 31, 2007 (A)
-------------------------------------------------
Since
Inception
Quarter 1 Year 3 Year 5 Year 10 Year 15 Year 20 Year (08/21/86)
------- ------ ------ ------ ------- ------- ------- ----------
GABELLI EQUITY TRUST
NAV TOTAL RETURN (B) .......... 3.48% 22.14% 17.60% 12.81% 12.40% 12.34% 12.03% 12.51%
INVESTMENT TOTAL RETURN (C) ... 7.08 28.23 16.43 8.60 12.76 12.35 12.67 12.27
S&P 500 Index ................... 0.64 11.82 10.05 6.26 8.20 10.87 10.75 11.41(d)
Dow Jones Industrial Average .... (0.28) 13.77 8.53 5.88 8.64 11.79 11.58 12.58(d)
Nasdaq Composite Index .......... 0.26 3.50 6.69 5.59 7.08 9.70 9.03 9.39
(a) RETURNS REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS.
INVESTMENT RETURNS AND THE PRINCIPAL VALUE OF AN INVESTMENT WILL
FLUCTUATE. WHEN SHARES ARE SOLD, THEY MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE
PERFORMANCE DATA PRESENTED. VISIT WWW.GABELLI.COM FOR PERFORMANCE
INFORMATION AS OF THE MOST RECENT MONTH END. PERFORMANCE RETURNS FOR LESS
THAN ONE YEAR ARE NOT ANNUALIZED. INVESTORS SHOULD CAREFULLY CONSIDER THE
INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE FUND BEFORE
INVESTING. THE DOW JONES INDUSTRIAL AVERAGE IS AN UNMANAGED INDEX OF 30
LARGE CAPITALIZATION STOCKS. THE S&P 500 AND THE NASDAQ COMPOSITE INDICES
ARE UNMANAGED INDICATORS OF STOCK MARKET PERFORMANCE. DIVIDENDS ARE
CONSIDERED REINVESTED EXCEPT FOR THE NASDAQ COMPOSITE INDEX. YOU CANNOT
INVEST DIRECTLY IN AN INDEX.
(b) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN NAV PER
SHARE, REINVESTMENT OF DISTRIBUTIONS AT NAV ON THE EX-DIVIDEND DATE, AND
ADJUSTMENTS FOR RIGHTS OFFERINGS, SPIN-OFFS, AND TAXES PAID ON
UNDISTRIBUTED LONG-TERM CAPITAL GAINS, AND ARE NET OF EXPENSES. SINCE
INCEPTION RETURN IS BASED ON AN INITIAL NAV OF $9.34.
(c) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN CLOSING MARKET
VALUES ON THE NEW YORK STOCK EXCHANGE, REINVESTMENT OF DISTRIBUTIONS, AND
ADJUSTMENTS FOR RIGHTS OFFERINGS, SPIN-OFFS, AND TAXES PAID ON
UNDISTRIBUTED LONG-TERM CAPITAL GAINS. SINCE INCEPTION RETURN IS BASED ON
AN INITIAL OFFERING PRICE OF $10.00.
(d) FROM AUGUST 31, 1986, THE DATE CLOSEST TO THE FUND'S INCEPTION DATE FOR
WHICH DATA IS AVAILABLE.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
We have separated the portfolio manager's commentary from the financial
statements and investment portfolio due to corporate governance regulations
stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that
the content of the portfolio manager's commentary is unrestricted. The financial
statements and investment portfolio are mailed separately from the commentary.
Both the commentary and the financial statements, including the portfolio of
investments, will be available on our website at www.gabelli.com.
--------------------------------------------------------------------------------
THE GABELLI EQUITY TRUST INC.
PORTFOLIO CHANGES
QUARTER ENDED MARCH 31, 2007 (UNAUDITED)
OWNERSHIP AT
MARCH 31,
SHARES 2007
------ ----------
NET PURCHASES
COMMON STOCKS
Accor SA ...................... 1,200 1,200
ADESA, Inc. ................... 400,000 400,000
Advanced Medical Optics Inc. .. 6,000 28,000
Alpharma Inc., Cl. A .......... 5,000 5,000
Altadis Sa .................... 1,000 25,000
Aquila Inc. ................... 290,000 300,000
Aruze Corp. ................... 17,000 30,000
Baldor Electric Co. ........... 155,000 155,000
Biosite Inc. .................. 10,000 10,000
British Sky Broadcasting
Group plc ................... 75,000 75,000
Brown-Forman Corp., Cl. A ..... 10,900 21,000
Cadbury Schweppes plc, ADR.... 20,000 120,000
Cermaq ASA .................... 32,000 32,000
China Mengniu Dairy Co. Ltd... 20,000 20,000
Citizens Communications
Co. (a) .................... 85,000 90,000
Clear Channel
Communications Inc. ......... 160,000 260,000
Clearwire Corp., Cl. A ........ 7,000 7,000
Cochlear Ltd. ................. 3,000 10,000
Comcast Corp., Cl. A (b)....... 20,000 75,000
Comcast Corp., Cl. A,
Special (b) ................. 42,500 127,500
Consolidated Minerals Ltd. .... 280,000 280,000
Constellation Brands Inc.,
Cl. A ....................... 3,000 3,000
Cooper Industries Ltd.,
Cl. A (c) ................... 130,000 266,000
Davide Campari-Milano SpA ..... 280,000 300,000
Dean Foods Co. ................ 50,000 50,000
Delta & Pine Land Co. ......... 30,000 100,000
Deutsche Bank AG, Germany ..... 8,000 8,000
Dow Jones & Co Inc ............ 2,500 57,500
Ferro Corp. ................... 25,000 350,000
Fortress Investment Group LLC,
Cl. A ...................... 3,000 3,000
GATX Corp. .................... 45,000 165,000
Gemstar-TV Guide
International Inc. (d) ..... 603 600,603
General Electric Co. .......... 30,000 150,000
Greif Inc., Cl. B ............. 1,000 9,000
Harrah's Entertainment Inc. ... 25,000 70,000
Home Inns & Hotels
Management Inc., ADR ....... 2,500 2,500
OWNERSHIP AT
MARCH 31,
SHARES 2007
------ ----------
Hydril Co. .................... 30,000 30,000
Hyperion Solutions Corp. ...... 500,000 500,000
Intel Corp. ................... 100,000 180,000
International Flavors &
Fragrances Inc. ............ 20,000 70,000
ITO EN Ltd. ................... 50,000 200,000
Janus Capital Group Inc. ...... 36,300 181,300
Laidlaw International Inc. .... 50,000 50,000
Lin TV Corp., Cl. A ........... 5,000 85,000
Mandarin Oriental
International Ltd. ......... 2,000,000 2,600,000
Marine Harvest ................ 300,000 950,000
Marsh & McLennan
Companies Inc. ............. 225,000 255,000
New Plan Excel Realty Trust ... 350,000 350,000
Nissin Food Products Co. Ltd. 164,000 200,000
Novelis Inc. .................. 40,000 150,000
NTT DoCoMo Inc. ............... 500 2,000
Orient-Express Hotels Ltd.,
Cl. A ...................... 3,000 15,000
Pentair Inc. .................. 1,000 1,000
PepsiAmericas Inc. ............ 58,100 558,100
Pernod-Ricard SA (e)........... 1,350 8,100
Pinnacle Entertainment Inc. ... 40,000 40,000
Rank Group plc (f)............. 1,173,240 1,173,240
Realogy Corp. ................. 600,000 600,000
Remy Cointreau SA ............. 8,000 26,000
Republic Services Inc. (b)..... 32,500 97,500
Rogers Communications Inc.,
Cl. B, New York (c)......... 285,345 580,690
Rolls-Royce Group plc,
Cl. B (g) .................. 34,340,000 71,040,000
Sealed Air Corp. (c)........... 1,000 2,000
Spectra Energy Corp. (h)....... 125,000 125,000
TD Banknorth Inc. ............. 33,200 200,000
Tele2 AB, Cl. B ............... 50,000 50,000
The E.W. Scripps Co., Cl A .... 10,000 160,000
Tokyo Broadcasting System Inc. 50,000 50,000
Tootsie Roll Industries Inc. (i) 3,461 118,821
TXU Corp. ..................... 192,800 222,800
Tyco International Ltd. ....... 100,000 100,000
Waste Management Inc. ......... 50,000 500,000
WebEx Communications Inc. ..... 20,000 20,000
YAKULT HONSHA Co. Ltd. ........ 60,000 535,000
2
THE GABELLI EQUITY TRUST INC.
PORTFOLIO CHANGES (CONTINUED)
QUARTER ENDED MARCH 31, 2007 (UNAUDITED)
OWNERSHIP AT
MARCH 31,
SHARES 2007
------ ----------
NET SALES
COMMON STOCKS
Abbott Laboratories ........... (2,000) 8,000
Acuity Brands Inc. ............ (15,000) 25,000
AGL Resources Inc. ............ (1,000) 5,000
America Movil SA de CV,
Cl. L, ADR .................. (10,000) 100,000
Ashland Inc. .................. (10,000) 50,000
Avis Budget Group Inc. ........ (5,000) 25,000
Avon Products Inc. ............ (1,000) 84,000
Aztar Corp. (j)................ (132,600) --
Banta Corp. (k)................ (70,000) --
Cablevision Systems Corp.,
Cl. A ...................... (20,000) 1,570,000
Capitalia SpA ................. (45,000) --
Columbia Equity Trust Inc. (l). (100,100) --
Commonwealth Telephone
Enterprises Inc. (a) ....... (130,000) --
Curtiss-Wright Corp. .......... (4,000) 370,000
Dana Corp. .................... (80,000) 300,000
Duke Energy Corp. ............. (10,000) 240,000
Fastweb ....................... (15,000) --
Genuine Parts Co. ............. (5,000) 345,000
Greif Inc., Cl. A ............. (3,000) 112,000
Grupo Televisa SA, ADR ........ (25,000) 625,000
ICOS Corp. (m)................. (868,800) --
Jacuzzi Brands Inc. (n)........ (250,000) --
Johnson Controls Inc. ......... (2,000) 74,000
Legg Mason Inc. ............... (3,000) 20,000
Mediobanca SpA ................ (45,000) --
Modern Times Group AB, Cl. B.. (1,000) 29,000
National Presto Industries Inc. (1,500) 21,000
Navistar International Corp. .. (195,000) 130,000
News Corp., Cl. A ............. (10,000) 1,650,000
Nikko Cordial Corp. ........... (30,000) 78,750
NIWS Co. Ltd. ................. (830) --
Penton Media Inc. (o).......... (200,000) --
Precision Castparts Corp. ..... (1,000) 114,000
OWNERSHIP AT
MARCH 31,
SHARES 2007
------ ----------
Rank Group plc (f)............. (1,629,500) --
Redback Networks Inc. (p)...... (200,000) --
Rollins Inc. .................. (10,000) 785,000
Sensient Technologies Corp. ... (5,000) 275,000
Serono SA ..................... (5,000) --
Skyline Corp. ................. (1,000) 21,000
Standard Motor Products Inc. .. (5,000) 155,000
Symbol Technologies Inc. (q) .. (1,401,900) --
The AES Corp. ................. (5,000) 60,000
The Reader's Digest
Association Inc. (r)........ (470,000) --
The Charles Schwab Corp. ...... (500) 44,500
Univision Communications Inc.,
Cl. A (s)................... (50,000) --
Viacom Inc., Cl. A ............ (5,000) 370,000
PRINCIPAL
AMOUNT
---------
CORPORATE BOND
Kaman Corp. Sub. Deb. Cv.
6.00%, 03/15/12 ............ $(64,000) 605,000
-----------
(a) Cash and Stock Merger - $31.31 for every 1 share and 0.768 share of Citizen
Communications Co. for every 1 share of Commonwealth Telephone Enterprises
Inc.
(b) 3 for 2 stock split
(c) 2 for 1 stock split
(d) 0.001005 stock dividend
(e) 0.20 stock dividend
(f) Reverse split - 18:25 and Cusip change
(g) Spin off - 59.20000 shares of Rolls-Royce Group plc, Cl. B for every 1
share of Rolls-Royce Group plc
(h) Spin off - 0.50000 shares of Spectra Energy Corp. for every 1 share of Duke
Energy Corp.
(i) 0.03 stock dividend
(j) Cash Merger - $54.3996 for every 1 share
(k) Cash Merger - $36.50 for every 1 share
(l) Cash Merger - $19.50 for every 1 share
(m) Cash Merger - $34.00 for every 1 share
(n) Cash Merger - $12.50 for every 1 share
(o) Cash Merger - $0.8058 for every 1 share
(p) Tender Offer - $25.00 for every 1 share
(q) Cash Merger - $15.00 for every 1 share
(r) Cash Merger - $17.00 for every 1 share
(s) Cash Merger - $36.25 for every 1 share
3
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS
MARCH 31, 2007 (UNAUDITED)
MARKET
SHARES VALUE
------ -------
COMMON STOCKS -- 95.2%
FOOD AND BEVERAGE -- 10.8%
85,000 Ajinomoto Co. Inc............ $ 978,106
40,000 Anheuser-Busch Companies Inc. 2,018,400
36,000 ARIAKE JAPAN Co. Ltd......... 740,835
21,000 Brown-Forman Corp., Cl. A.... 1,450,680
110,000 Cadbury Schweppes plc........ 1,411,338
120,000 Cadbury Schweppes plc, ADR... 6,164,400
72,000 Campbell Soup Co............. 2,804,400
32,000 Cermaq ASA................... 600,168
20,000 China Mengniu Dairy Co. Ltd.. 57,209
20,000 Coca-Cola Enterprises Inc.... 405,000
40,000 Coca-Cola Hellenic
Bottling Co. SA ........... 1,683,164
3,000 Constellation Brands Inc.,
Cl. A+ .................... 63,540
60,000 Corn Products
International Inc. ........ 2,135,400
300,000 Davide Campari-Milano SpA.... 2,953,553
50,000 Dean Foods Co.+.............. 2,337,000
60,000 Del Monte Foods Co........... 688,800
10,108 Denny's Corp.+............... 49,529
80,000 Diageo plc................... 1,620,717
224,000 Diageo plc, ADR.............. 18,132,800
70,000 Flowers Foods Inc............ 2,111,900
33,000 Fomento Economico Mexicano
SAB de CV, ADR ............ 3,642,870
180,000 General Mills Inc............ 10,479,600
200,000 Groupe Danone................ 32,674,762
1,000,000 Grupo Bimbo SA de CV, Cl. A.. 5,029,783
110,000 H.J. Heinz Co................ 5,183,200
20,000 Hain Celestial Group Inc.+... 601,400
10,000 Heineken NV.................. 523,117
200,000 ITO EN Ltd................... 6,517,312
105,000 Kellogg Co................... 5,400,150
75,000 Kerry Group plc, Cl. A....... 2,092,478
12,100 LVMH Moet Hennessy
Louis Vuitton SA........... 1,342,397
950,000 Marine Harvest+.............. 1,115,937
2,500 Nestle SA.................... 973,645
200,000 Nissin Food Products Co. Ltd. 7,331,976
558,100 PepsiAmericas Inc............ 12,456,792
355,000 PepsiCo Inc.................. 22,563,800
8,100 Pernod-Ricard SA............. 1,642,744
68,200 Ralcorp Holdings Inc.+....... 4,385,260
26,000 Remy Cointreau SA............ 1,754,659
300,000 Sara Lee Corp................ 5,076,000
200,000 The Coca-Cola Co............. 9,600,000
45,000 The Hershey Co............... 2,459,700
2,000 The J.M. Smucker Co.......... 106,640
118,821 Tootsie Roll Industries Inc.. 3,561,059
170,000 Wm. Wrigley Jr. Co........... 8,658,100
MARKET
SHARES VALUE
------ -------
42,500 Wm. Wrigley Jr. Co., Cl. B... $ 2,159,000
535,000 YAKULT HONSHA Co. Ltd........ 13,665,563
--------------
219,404,883
--------------
FINANCIAL SERVICES -- 9.6%
7,000 Allianz SE................... 1,437,329
575,000 American Express Co.......... 32,430,000
50,000 American International
Group Inc. ................ 3,361,000
65,000 Ameriprise Financial Inc..... 3,714,100
30,000 Argonaut Group Inc.+......... 970,800
95,000 Aviva plc.................... 1,399,285
90,000 Banco Santander Central
Hispano SA, ADR............ 1,604,700
100,000 Bank of Ireland.............. 2,157,389
70,000 Barclays plc................. 993,171
248 Berkshire Hathaway Inc.,
Cl. A+ .................... 27,029,520
7,500 Calamos Asset Management
Inc., Cl. A................ 167,400
250,000 Citigroup Inc................ 12,835,000
155,000 Commerzbank AG, ADR.......... 6,839,778
149,000 Deutsche Bank AG............. 20,046,460
8,000 Deutsche Bank AG, Germany.... 1,077,653
3,000 Fortress Investment Group LLC,
Cl. A...................... 86,040
20,000 H&R Block Inc................ 420,800
181,300 Janus Capital Group Inc...... 3,790,983
52,000 JPMorgan Chase & Co.......... 2,515,760
260,000 Landesbank Berlin Holding AG+ 2,396,505
20,000 Legg Mason Inc............... 1,884,200
133,000 Leucadia National Corp....... 3,912,860
255,000 Marsh & McLennan
Companies Inc. ............ 7,468,950
80,000 Mellon Financial Corp........ 3,451,200
65,000 Moody's Corp................. 4,033,900
78,750 Nikko Cordial Corp........... 1,124,714
2,500 Prudential Financial Inc..... 225,650
50,000 Standard Chartered plc....... 1,440,463
80,000 State Street Corp............ 5,180,000
20,000 SunTrust Banks Inc........... 1,660,800
150,000 T. Rowe Price Group Inc...... 7,078,500
200,000 TD Banknorth Inc............. 6,432,000
5,000 The Allstate Corp............ 300,300
70,000 The Bank of New York Co. Inc. 2,838,500
44,500 The Charles Schwab Corp...... 813,905
18,000 The Dun & Bradstreet Corp.... 1,641,600
189,000 The Midland Co............... 8,017,380
135,000 The Phoenix Companies Inc.... 1,873,800
80,000 The Shizuoka Bank Ltd........ 852,003
3,000 The Travelers Companies Inc.. 155,310
40,000 UBS AG....................... 2,376,661
See accompanying notes to schedule of investments.
4
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007 (UNAUDITED)
MARKET
SHARES VALUE
------ -------
COMMON STOCKS (CONTINUED)
FINANCIAL SERVICES (CONTINUED)
120,000 UniCredito Italiano SpA...... $ 1,142,147
100,000 Waddell & Reed Financial Inc.,
Cl. A ..................... 2,332,000
58,000 Westpac Banking Corp......... 1,236,549
--------------
192,747,065
--------------
ENERGY AND UTILITIES -- 8.7%
5,000 AGL Resources Inc............ 213,600
70,000 Allegheny Energy Inc.+....... 3,439,800
70,000 Apache Corp.................. 4,949,000
300,000 Aquila Inc.+................. 1,254,000
247,000 BP plc, ADR.................. 15,993,250
105,000 CH Energy Group Inc.......... 5,112,450
70,000 CMS Energy Corp.............. 1,246,000
320,000 ConocoPhillips............... 21,872,000
8,000 Constellation Energy
Group Inc. ................ 695,600
60,000 DPL Inc...................... 1,865,400
14,000 DTE Energy Co................ 670,600
240,000 Duke Energy Corp............. 4,869,600
84,000 Duquesne Light Holdings Inc.. 1,662,360
270,000 El Paso Corp................. 3,906,900
285,000 El Paso Electric Co.+........ 7,509,750
50,000 Energy East Corp............. 1,218,000
80,000 Exxon Mobil Corp............. 6,036,000
20,000 FPL Group Inc................ 1,223,400
16,000 Giant Industries Inc.+....... 1,210,400
210,000 Halliburton Co............... 6,665,400
30,000 Hydril Co.+.................. 2,887,200
27,000 Imperial Oil Ltd............. 1,000,953
350,000 Kinder Morgan Inc............ 37,257,500
10,000 Marathon Oil Corp............ 988,300
10,000 Mirant Corp.+................ 404,600
140,000 Mirant Corp. Escrow+ (a)..... 0
2,000 Niko Resources Ltd., New York 145,420
1,000 Niko Resources Ltd., Toronto. 72,707
10,000 NiSource Inc................. 244,400
240,000 Northeast Utilities.......... 7,864,800
20,000 Oceaneering
International Inc.+ ....... 842,400
2,000 PetroChina Co. Ltd., ADR..... 234,180
16,000 Petroleo Brasileiro SA, ADR.. 1,592,160
100,000 Progress Energy Inc., CVO+... 32,000
60,000 Saipem SpA................... 1,747,285
13,000 Sasol Ltd.................... 433,751
5,000 SJW Corp..................... 202,400
20,000 Southwest Gas Corp........... 777,400
125,000 Spectra Energy Corp.......... 3,283,750
60,000 The AES Corp.+............... 1,291,200
32,628 Total SA..................... 2,286,083
222,800 TXU Corp..................... 14,281,480
270,000 Westar Energy Inc............ 7,430,400
--------------
176,913,879
--------------
MARKET
SHARES VALUE
------ -------
TELECOMMUNICATIONS -- 5.6%
5,000 Alltel Corp.................. $ 310,000
220,000 BCE Inc...................... 6,221,600
30,000 Brasil Telecom
Participacoes SA,
ADR ........................ 1,352,700
1,700,000 BT Group plc................. 10,161,459
4,440,836 Cable & Wireless
Jamaica Ltd.+ ............. 64,916
800,000 Cincinnati Bell Inc.+........ 3,760,000
90,000 Citizens Communications Co... 1,345,500
110,000 Compania de Telecomunicaciones
de Chile SA, ADR........... 1,025,200
168,000 Deutsche Telekom AG, ADR..... 2,777,040
5,000 France Telecom SA, ADR....... 132,000
100,000 Koninklijke KPN NV........... 1,557,595
570,000 Qwest Communications
International Inc.+........ 5,124,300
550,000 Sprint Nextel Corp........... 10,428,000
186,554 Tele Norte Leste
Participacoes SA, ADR...... 2,581,907
50,000 Tele2 AB, Cl. B.............. 819,872
48,000 Telecom Argentina SA,
Cl. B, ADR+ ............... 1,024,320
1,470,000 Telecom Italia SpA........... 4,192,482
230,000 Telefonica SA, ADR........... 15,272,000
62,000 Telefonos de Mexico SAB de CV,
Cl. L, ADR................. 2,070,800
260,000 Telephone & Data Systems Inc. 15,501,200
370,000 Telephone & Data Systems Inc.,
Special.................... 20,683,000
15,000 TELUS Corp................... 765,266
180,000 Verizon Communications Inc... 6,825,600
5,169 Windstream Corp.............. 75,933
--------------
114,072,690
--------------
DIVERSIFIED INDUSTRIAL -- 5.6%
25,000 Acuity Brands Inc............ 1,361,000
55,000 Amano Corp................... 671,631
164,000 Ampco-Pittsburgh Corp........ 4,737,960
155,000 Baldor Electric Co........... 5,849,700
26,000 Bayer AG..................... 1,661,577
25,000 Bouygues SA.................. 1,931,965
266,000 Cooper Industries Ltd., Cl. A 11,967,340
260,000 Crane Co..................... 10,509,200
77,500 CRH plc...................... 3,312,895
400,000 Enodis plc................... 1,619,536
150,000 General Electric Co.......... 5,304,000
112,000 Greif Inc., Cl. A............ 12,444,320
9,000 Greif Inc., Cl. B............ 925,380
455,500 Honeywell International Inc.. 20,980,330
255,000 ITT Corp..................... 15,381,600
101,000 Park-Ohio Holdings Corp.+.... 1,868,500
1,000 Pentair Inc.................. 31,160
See accompanying notes to schedule of investments.
5
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007 (UNAUDITED)
MARKET
SHARES VALUE
------ -------
COMMON STOCKS (CONTINUED)
DIVERSIFIED INDUSTRIAL (CONTINUED)
2,000 Sulzer AG.................... $ 2,809,530
30,000 Technip SA................... 2,200,938
74,000 The Lamson & Sessions Co.+... 2,056,460
75,000 Trinity Industries Inc....... 3,144,000
100,000 Tyco International Ltd....... 3,155,000
--------------
113,924,022
--------------
CONSUMER PRODUCTS -- 4.9%
25,000 Altadis SA................... 1,605,351
84,000 Avon Products Inc............ 3,129,840
42,000 Christian Dior SA............ 5,105,599
15,000 Church & Dwight Co. Inc...... 755,250
32,000 Clorox Co.................... 2,038,080
10,000 Colgate-Palmolive Co......... 667,900
69,000 Compagnie Financiere
Richemont SA, Cl. A........ 3,858,413
114,000 Energizer Holdings Inc.+..... 9,727,620
60,000 Fortune Brands Inc........... 4,729,200
60,000 Gallaher Group plc........... 1,337,741
190,000 Gallaher Group plc, ADR...... 16,957,500
2,000 Givaudan SA.................. 1,849,977
60,000 Hanesbrands Inc.+............ 1,763,400
32,000 Harley-Davidson Inc.......... 1,880,000
42,000 Lenox Group Inc.+............ 276,360
15,000 Matsushita Electric Industrial
Co. Ltd., ADR.............. 301,500
15,000 Mattel Inc................... 413,550
21,000 National Presto
Industries Inc. ........... 1,294,440
10,000 Oil-Dri Corp. of America..... 167,000
300,000 Procter & Gamble Co.......... 18,948,000
60,000 Reckitt Benckiser plc........ 3,124,151
7,500 Swatch Group AG.............. 1,982,780
1,000,000 Swedish Match AB............. 17,865,326
--------------
99,778,978
--------------
CABLE AND SATELLITE -- 4.4%
1,570,000 Cablevision Systems
Corp., Cl. A+ ............. 47,775,100
75,000 Comcast Corp., Cl. A+........ 1,946,250
127,500 Comcast Corp., Cl. A, Special+ 3,247,425
55,000 EchoStar Communications
Corp., Cl. A+.............. 2,388,650
156,770 Liberty Global Inc., Cl. A+.. 5,162,436
139,001 Liberty Global Inc., Cl. C+.. 4,258,991
580,690 Rogers Communications Inc.,
Cl. B, New York............ 19,023,405
19,310 Rogers Communications Inc.,
Cl. B, Toronto ............ 632,070
80,000 Shaw Communications Inc.,
Cl. B, New York............ 2,953,600
MARKET
SHARES VALUE
------ -------
20,000 Shaw Communications Inc.,
Cl. B, Toronto ............ $ 737,635
10,000 The DIRECTV Group Inc.+...... 230,700
--------------
88,356,262
--------------
ENTERTAINMENT -- 4.3%
30,000 Aruze Corp................... 1,046,334
32,000 Canal+ Groupe................ 369,334
2,002 Chestnut Hill Ventures+ (a).. 56,897
220,000 Discovery Holding Co., Cl. A+ 4,208,600
3,000 DreamWorks Animation SKG Inc.,
Cl. A+..................... 91,740
110,000 EMI Group plc................ 492,453
79,500 EMI Group plc, ADR........... 709,474
600,603 Gemstar-TV Guide
International Inc.+ ....... 2,516,527
625,000 Grupo Televisa SA, ADR....... 18,625,000
125 Live Nation Inc.+............ 2,757
40,000 Pinnacle Entertainment Inc.+. 1,162,800
160,000 Publishing &
Broadcasting Ltd. ......... 2,569,705
1,173,240 Rank Group plc............... 4,715,631
12,000 Regal Entertainment Group,
Cl. A ..................... 238,440
75,000 Six Flags Inc.+.............. 450,750
85,000 The Walt Disney Co........... 2,926,550
810,000 Time Warner Inc.............. 15,973,200
50,000 Tokyo Broadcasting
System Inc. ............... 1,849,966
20,200 Triple Crown Media Inc.+..... 169,478
370,000 Viacom Inc., Cl. A+.......... 15,192,200
333,900 Vivendi...................... 13,568,493
--------------
86,936,329
--------------
PUBLISHING -- 4.2%
57,500 Dow Jones & Co. Inc.......... 1,982,025
9,000 Idearc Inc................... 315,900
348,266 Independent News & Media plc. 1,581,780
14,212 McClatchy Co., Cl. A......... 449,241
320,000 Media General Inc., Cl. A.... 12,211,200
122,000 Meredith Corp................ 7,001,580
50,000 New York Times Co., Cl. A.... 1,175,500
1,650,000 News Corp., Cl. A............ 38,148,000
20,000 News Corp., Cl. B............ 489,400
382,000 PRIMEDIA Inc.+............... 1,016,120
261,319 SCMP Group Ltd............... 94,314
66,585 Seat Pagine Gialle SpA....... 41,049
160,000 The E.W. Scripps Co., Cl. A.. 7,148,800
183,000 The McGraw-Hill
Companies Inc. ............ 11,507,040
45,000 Tribune Co................... 1,444,950
--------------
84,606,899
--------------
HEALTH CARE -- 3.5%
8,000 Abbott Laboratories.......... 446,400
28,000 Advanced Medical Optics Inc.+ 1,041,600
See accompanying notes to schedule of investments.
6
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007 (UNAUDITED)
MARKET
SHARES VALUE
------ -------
COMMON STOCKS (CONTINUED)
HEALTH CARE (CONTINUED)
7,023 Allergan Inc................. $ 778,289
5,000 Alpharma Inc., Cl. A......... 120,400
52,000 Amgen Inc.+.................. 2,905,760
19,146 AstraZeneca plc.............. 1,029,576
26,000 Biogen Idec Inc.+............ 1,153,880
10,000 Biosite Inc.+................ 839,700
135,000 Bristol-Myers Squibb Co...... 3,747,600
10,000 Cochlear Ltd................. 523,650
45,036 GlaxoSmithKline plc.......... 1,238,075
4,000 GlaxoSmithKline plc, ADR..... 221,040
30,000 Henry Schein Inc.+........... 1,655,400
38,300 Hisamitsu Pharmaceutical
Co. Inc. .................. 1,131,059
30,000 Hospira Inc.+................ 1,227,000
40,000 Invitrogen Corp.+............ 2,546,000
95,000 Merck & Co. Inc.............. 4,196,150
2,000 Nobel Biocare Holding AG..... 729,128
39,000 Novartis AG.................. 2,237,008
105,000 Novartis AG, ADR............. 5,736,150
430,000 Pfizer Inc................... 10,861,800
16,400 Roche Holding AG............. 2,901,699
15,108 Sanofi-Aventis............... 1,313,845
100,000 Schering-Plough Corp......... 2,551,000
80,000 Smith & Nephew plc........... 1,016,982
5,250 Straumann Holding AG......... 1,505,678
10,000 Synthes Inc.................. 1,234,416
19,000 Takeda Pharmaceutical Co. Ltd. 1,246,351
40,000 UnitedHealth Group Inc....... 2,118,800
82,000 William Demant Holding A/S+.. 7,277,128
100,000 Wyeth........................ 5,003,000
3,500 Zimmer Holdings Inc.+........ 298,935
--------------
70,833,499
--------------
HOTELS AND GAMING -- 3.2%
1,200 Accor SA..................... 114,680
190,000 Gaylord Entertainment Co.+... 10,045,300
28,000 Greek Organization of Football
Prognostics SA ............ 1,074,233
70,000 Harrah's Entertainment Inc... 5,911,500
530,000 Hilton Hotels Corp........... 19,058,800
2,500 Home Inns & Hotels Management
Inc., ADR+................. 90,850
45,000 InterContinental
Hotels Group plc .......... 1,112,226
1,344,116 Ladbrokes plc................ 10,646,173
6,000 Las Vegas Sands Corp.+....... 519,660
2,600,000 Mandarin Oriental
International Ltd. ........ 4,888,000
110,000 MGM Mirage+.................. 7,647,200
MARKET
SHARES VALUE
------ -------
15,000 Orient-Express
Hotels Ltd., Cl. A ........ $ 897,300
34,000 Starwood Hotels & Resorts
Worldwide Inc. ............ 2,204,900
--------------
64,210,822
--------------
EQUIPMENT AND SUPPLIES -- 2.8%
265,000 AMETEK Inc................... 9,153,100
2,000 Amphenol Corp., Cl. A........ 129,140
50,000 Assa Abloy AB, Cl. B......... 1,149,252
94,000 CIRCOR International Inc..... 3,355,800
200,000 Donaldson Co. Inc............ 7,220,000
65,000 Fedders Corp.+............... 58,500
110,000 Flowserve Corp............... 6,290,900
23,000 Franklin Electric Co. Inc.... 1,069,500
90,000 Gerber Scientific Inc.+...... 954,900
75,000 GrafTech International Ltd.+. 681,000
210,000 IDEX Corp.................... 10,684,800
40,000 Ingersoll-Rand Co. Ltd.,
Cl. A ..................... 1,734,800
103,000 Lufkin Industries Inc........ 5,786,540
11,000 Mueller Industries Inc....... 331,100
2,000 Sealed Air Corp.............. 63,200
2,000 The Manitowoc Co. Inc........ 127,060
100,000 The Weir Group plc........... 1,197,434
195,000 Watts Water Technologies
Inc., Cl. A ................ 7,415,850
--------------
57,402,876
--------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 2.4%
43,000 BorgWarner Inc............... 3,243,060
185,000 CLARCOR Inc.................. 5,883,000
300,000 Dana Corp.+.................. 262,500
82,500 Earl Scheib Inc.+............ 309,375
345,000 Genuine Parts Co............. 16,905,000
74,000 Johnson Controls Inc......... 7,001,880
130,000 Midas Inc.+.................. 2,804,100
317,500 Modine Manufacturing Co...... 7,270,750
180,000 Proliance International Inc.+ 680,400
155,000 Standard Motor Products Inc.. 2,645,850
35,000 Superior Industries
International Inc. ........ 729,050
27,000 TI Automotive Ltd.,
Cl. A+ (a) ................ 0
--------------
47,734,965
--------------
AVIATION: PARTS AND SERVICES -- 2.3%
370,000 Curtiss-Wright Corp.......... 14,259,800
200,000 GenCorp Inc.+................ 2,768,000
114,000 Precision Castparts Corp..... 11,861,700
73,000 Sequa Corp., Cl. A+.......... 8,743,210
74,600 Sequa Corp., Cl. B+.......... 9,026,600
205,000 The Fairchild Corp., Cl. A+.. 414,100
--------------
47,073,410
--------------
See accompanying notes to schedule of investments.
7
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007 (UNAUDITED)
MARKET
SHARES VALUE
------ -------
COMMON STOCKS (CONTINUED)
BROADCASTING -- 1.9%
75,000 British Sky Broadcasting
Group plc ................. $ 832,398
415,000 CBS Corp., Cl. A............. 12,703,150
260,000 Clear Channel
Communications Inc. ....... 9,110,400
2,000 Cogeco Inc................... 65,396
13,333 Corus Entertainment
Inc., Cl. B,
New York................... 509,320
3,333 Corus Entertainment Inc.,
Cl. B, Toronto............. 127,171
120,000 Gray Television Inc.......... 1,250,400
27,000 Gray Television Inc., Cl. A.. 282,150
200,000 ION Media Networks Inc.+..... 266,000
77,000 Liberty Media Corp. - Capital,
Cl. A+..................... 8,515,430
85,000 Lin TV Corp., Cl. A+......... 1,351,500
120,000 Mediaset SpA................. 1,305,655
29,000 Modern Times Group MTG AB,
Cl. B+..................... 1,696,526
100,000 Television Broadcasts Ltd.... 625,200
115,000 Young Broadcasting Inc.,
Cl. A+ .................... 464,600
--------------
39,105,296
--------------
CONSUMER SERVICES -- 1.8%
200,000 IAC/InterActiveCorp+......... 7,542,000
430,000 Liberty Media Corp. -
Interactive,
Cl. A+..................... 10,242,600
785,000 Rollins Inc.................. 18,062,850
--------------
35,847,450
--------------
REAL ESTATE -- 1.7%
70,000 Cheung Kong (Holdings) Ltd... 886,031
98,000 Florida East Coast
Industries Inc. ........... 6,143,620
55,500 Griffin Land &
Nurseries Inc.+ ........... 1,970,250
600,000 Realogy Corp.+............... 17,766,000
150,000 The St. Joe Co............... 7,846,500
--------------
34,612,401
--------------
COMMUNICATIONS EQUIPMENT -- 1.7%
45,000 Agere Systems Inc.+.......... 1,017,900
10,000 Andrew Corp.+................ 105,900
480,000 Corning Inc.+................ 10,915,200
90,000 Motorola Inc................. 1,590,300
200,000 Nortel Networks Corp.+....... 4,810,000
305,000 Thomas & Betts Corp.+........ 14,890,100
--------------
33,329,400
--------------
COMPUTER SOFTWARE AND SERVICES -- 1.6%
10,000 Check Point Software
Technologies Ltd.+......... 222,800
500,000 Hyperion Solutions Corp.+.... 25,915,000
12,000 John H. Harland Co........... 614,760
MARKET
SHARES VALUE
------ -------
24,100 Square Enix Co. Ltd.......... $ 621,724
25,256 Telecom Italia Media SpA..... 10,965
20,000 WebEx Communications Inc.+... 1,137,200
150,000 Yahoo! Inc.+................. 4,693,500
--------------
33,215,949
--------------
SPECIALTY CHEMICALS -- 1.5%
50,000 Ashland Inc.................. 3,280,000
5,400 Ciba Specialty
Chemicals AG, ADR ......... 178,470
20,000 E.I. du Pont de
Nemours and Co. ........... 988,600
350,000 Ferro Corp................... 7,563,500
2,000 FMC Corp..................... 150,860
50,000 H.B. Fuller Co............... 1,363,500
170,000 Hercules Inc.+............... 3,321,800
70,000 International Flavors &
Fragrances Inc............. 3,305,400
230,000 Omnova Solutions Inc.+....... 1,255,800
275,000 Sensient Technologies Corp... 7,089,500
15,000 Syngenta AG, ADR............. 570,750
165,000 Tokai Carbon Co. Ltd......... 1,358,198
4,032 Tronox Inc., Cl. B........... 56,367
--------------
30,482,745
--------------
AEROSPACE -- 1.4%
105,000 Boeing Co.................... 9,335,550
10,000 Lockheed Martin Corp......... 970,200
80,000 Northrop Grumman Corp........ 5,937,600
1,200,000 Rolls-Royce Group plc+....... 11,671,289
71,040,000 Rolls-Royce Group plc, Cl. B. 143,290
--------------
28,057,929
--------------
MACHINERY -- 1.2%
20,000 Caterpillar Inc.............. 1,340,600
220,000 Deere & Co................... 23,900,800
--------------
25,241,400
--------------
BUSINESS SERVICES -- 1.2%
7,050 ACCO Brands Corp.+........... 169,835
25,000 Avis Budget Group Inc.+...... 683,000
22,500 Canon Inc.................... 1,208,630
1,000 CheckFree Corp.+............. 37,090
100,000 Clear Channel Outdoor
Holdings Inc., Cl. A+...... 2,631,000
186,554 Contax Participacoes SA, ADR. 175,976
200,000 Group 4 Securicor plc........ 791,074
94,000 Landauer Inc................. 4,745,120
119,000 MasterCard Inc., Cl. A....... 12,642,560
72,500 Nashua Corp.+................ 645,250
25,000 Secom Co. Ltd................ 1,160,472
--------------
24,890,007
--------------
See accompanying notes to schedule of investments.
8
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007 (UNAUDITED)
MARKET
SHARES VALUE
------ -------
COMMON STOCKS (CONTINUED)
AGRICULTURE -- 1.2%
490,000 Archer-Daniels-Midland Co.... $ 17,983,000
100,000 Delta & Pine Land Co......... 4,120,000
30,000 Monsanto Co.................. 1,648,800
30,000 The Mosaic Co.+.............. 799,800
--------------
24,551,600
--------------
METALS AND MINING -- 1.2%
20,000 Alcoa Inc.................... 678,000
33,000 Anglo American plc........... 1,738,414
89,148 Barrick Gold Corp............ 2,545,175
280,000 Consolidated Minerals Ltd.... 566,371
72,500 Harmony Gold Mining Co. Ltd.+ 1,011,872
35,000 Harmony Gold
Mining Co. Ltd., ADR+...... 486,500
75,000 Ivanhoe Mines Ltd.+.......... 861,000
105,000 Newmont Mining Corp.......... 4,408,950
150,000 Novelis Inc.................. 6,616,500
18,000 Rio Tinto plc................ 1,027,923
66,666 Xstrata plc.................. 3,426,640
--------------
23,367,345
--------------
AUTOMOTIVE -- 1.1%
400,000 ADESA, Inc................... 11,052,000
35,000 General Motors Corp.......... 1,072,400
130,000 Navistar International Corp.+ 5,947,500
64,500 PACCAR Inc................... 4,734,300
--------------
22,806,200
--------------
ENVIRONMENTAL SERVICES -- 1.0%
97,500 Republic Services Inc........ 2,712,450
500,000 Waste Management Inc......... 17,205,000
--------------
19,917,450
--------------
WIRELESS COMMUNICATIONS -- 1.0%
100,000 America Movil SAB de CV,
Cl. L, ADR................. 4,779,000
7,000 Clearwire Corp., Cl. A+...... 143,290
2,000 NTT DoCoMo Inc............... 3,699,932
3,340 Tele Norte Celular
Participacoes SA,
ADR+....................... 31,396
8,350 Telemig Celular
Participacoes SA,
ADR........................ 312,875
32,165 Tim Participacoes SA, ADR.... 1,044,719
100,000 United States Cellular Corp.+ 7,345,000
270 Vivo Participacoes SA+....... 2,057
174,122 Vivo Participacoes SA, ADR... 611,168
5,845 Vivo Participacoes SA,
Preference ................ 20,313
70,000 Vodafone Group plc, ADR...... 1,880,200
--------------
19,869,950
--------------
SHARES/ MARKET
UNITS VALUE
------ -------
ELECTRONICS -- 0.7%
5,000 Advanced Micro Devices Inc.+. $ 65,300
5,000 Hitachi Ltd., ADR............ 386,050
180,000 Intel Corp................... 3,443,400
4,920 Keyence Corp................. 1,110,173
20,000 Molex Inc., Cl. A............ 497,800
7,500 NEC Corp., ADR............... 40,050
38,000 Royal Philips Electronics NV. 1,447,800
265,000 Texas Instruments Inc........ 7,976,500
--------------
14,967,073
--------------
RETAIL -- 0.7%
168,000 AutoNation Inc.+............. 3,568,320
4,000 AutoZone Inc.+............... 512,560
27,000 Coldwater Creek Inc.+........ 547,560
40,000 Costco Wholesale Corp........ 2,153,600
21,500 Hennes & Mauritz AB, Cl. B... 1,237,756
50,000 Matsumotokiyoshi Co. Ltd..... 1,145,621
30,000 Next plc..................... 1,327,705
50,000 Sally Beauty Holdings Inc.+.. 459,500
39,800 Seven & I Holdings Co. Ltd... 1,212,509
20,000 SUPERVALU Inc................ 781,400
10,000 The Home Depot Inc........... 367,400
73,000 Woolworths Ltd............... 1,605,960
--------------
14,919,891
--------------
REAL ESTATE INVESTMENT TRUSTS -- 0.6%
2,500 Camden Property Trust........ 175,775
350,000 New Plan Excel Realty Trust.. 11,560,500
2,187 Prosperity REIT.............. 495
24,984 Rayonier Inc................. 1,074,312
--------------
12,811,082
--------------
TRANSPORTATION -- 0.6%
100,000 AMR Corp.+................... 3,045,000
165,000 GATX Corp.................... 7,887,000
15,000 Grupo TMM SA, Cl. A, ADR+.... 42,150
50,000 Laidlaw International Inc.... 1,730,000
--------------
12,704,150
--------------
CLOSED-END FUNDS -- 0.4%
16,000 Bell Aliant Regional
Communications
Income Fund+ (a)(b)........ 409,280
31,500 Royce Value Trust Inc........ 695,205
105,000 The Central Europe
and Russia
Fund Inc................... 5,286,750
70,000 The New Germany Fund Inc..... 1,153,600
--------------
7,544,835
--------------
PAPER AND FOREST PRODUCTS -- 0.2%
114,000 Pactiv Corp.+................ 3,846,360
10,000 Svenska Cellulosa AB, Cl. B.. 535,602
--------------
4,381,962
--------------
See accompanying notes to schedule of investments.
9
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007 (UNAUDITED)
MARKET
SHARES VALUE
------ -------
COMMON STOCKS (CONTINUED)
MANUFACTURED HOUSING AND
RECREATIONAL VEHICLES -- 0.2%
70,000 Champion Enterprises Inc.+... $ 616,000
50,000 Fleetwood Enterprises Inc.+.. 395,500
31,000 Huttig Building
Products Inc.+............. 187,550
7,000 Martin Marietta
Materials Inc.............. 946,400
10,000 Nobility Homes Inc........... 238,500
21,000 Skyline Corp................. 708,540
--------------
3,092,490
--------------
TOTAL COMMON STOCKS.......... 1,929,713,184
--------------
CONVERTIBLE PREFERRED STOCKS -- 0.2%
AEROSPACE -- 0.1%
13,500 Northrop Grumman Corp.,
7.000% Cv. Pfd., Ser. B.... 1,910,250
--------------
TELECOMMUNICATIONS -- 0.1%
25,000 Cincinnati Bell Inc.,
6.750% Cv. Pfd., Ser. B.... 1,168,750
--------------
BROADCASTING -- 0.0%
90 Gray Television Inc.,
8.000% Cv. Pfd.,
Ser. C (a)(b)(c)........... 900,000
--------------
TOTAL CONVERTIBLE
PREFERRED STOCKS........... 3,979,000
--------------
PRINCIPAL
AMOUNT
--------
CONVERTIBLE CORPORATE BONDS -- 0.1%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.1%
$ 1,000,000 Standard Motor Products Inc.,
Sub. Deb. Cv.,
6.750%, 07/15/09........... 980,000
500,000 The Pep Boys -
Manny, Moe & Jack, Cv.,
4.250%, 06/01/07........... 501,250
--------------
1,481,250
--------------
AEROSPACE -- 0.0%
605,000 Kaman Corp., Sub. Deb. Cv.,
6.000%, 03/15/12........... 615,588
--------------
CONSUMER PRODUCTS -- 0.0%
1,000,000 Pillowtex Corp., Sub. Deb. Cv.,
9.000%, 12/15/07 (a)....... 0
--------------
TOTAL CONVERTIBLE
CORPORATE BONDS............ 2,096,838
--------------
MARKET
SHARES VALUE
------ -------
WARRANTS -- 0.0%
ENERGY AND UTILITIES -- 0.0%
12,183 Mirant Corp., Ser. A,
expire 01/03/11+........... $ 258,280
--------------
PRINCIPAL
AMOUNT
--------
SHORT-TERM OBLIGATIONS -- 4.5%
REPURCHASE AGREEMENTS -- 4.4%
$26,081,000 Barclays Capital Inc.,
5.080%, dated 03/30/07,
due 04/02/07, proceeds
at maturity,
$26,092,041 (d)............ 26,081,000
62,500,000 Daiwa Securities America Inc.,
5.130%, dated 03/30/07, due
04/02/07, proceeds
at maturity,
$62,526,719 (e)............ 62,500,000
--------------
88,581,000
--------------
U.S. TREASURY BILLS -- 0.1%
2,000,000 U.S. Treasury Bill,
5.006%++, 05/03/07 (f)..... 1,991,117
--------------
TOTAL SHORT-TERM
OBLIGATIONS................ 90,572,117
--------------
TOTAL INVESTMENTS -- 100.0%
(Cost $1,500,345,813).................. $2,026,619,419
==============
--------------
Aggregate book cost............. $1,500,345,813
==============
Gross unrealized appreciation... $ 578,263,589
Gross unrealized depreciation... (51,989,983)
--------------
Net unrealized appreciation
(depreciation) ............... $ 526,273,606
==============
NUMBER OF EXPIRATION UNREALIZED
CONTRACTS DATE DEPRECIATION
--------- ---------- ------------
FUTURES CONTRACTS -- SHORT POSITION
130 S & P 500
Index Futures .... 06/14/07 $ (985,500)
==============
See accompanying notes to schedule of investments.
10
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007 (UNAUDITED)
--------------
(a) Security fair valued under procedures established by the Board of
Directors. The procedures may include reviewing available financial
information about the company and reviewing valuation of comparable
securities and other factors on a regular basis. At March 31, 2007, the
market value of fair valued securities amounted to $1,366,177 or 0.07%
of total investments.
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933, as amended. This security may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At March
31, 2007, the market value of the Rule 144A security amounted to
$1,309,280 or 0.06% of total investments.
(c) At March 31, 2007, the Fund held an investment in a restricted and
illiquid security amounting to $900,000 or 0.04% of total investments,
which was valued under methods approved by the Board as follows:
03/31/07
ACQUISITION ACQUISITION ACQUISITION CARRYING VALUE
SHARES ISSUER DATE COST PER UNIT
------- ------- ------- ------ -------
90 Gray Television Inc.,
8.000% Cv. Pfd., Ser. C .... 04/23/02 $900,000 $10,000.0000
(d) Collateralized by $27,075,000 U.S. Treasury Bond, 4.125%, due 05/15/15,
market value $26,602,620.
(e) Collateralized by $62,956,000 U.S. Treasury Notes, 3.375% to 5.125%, due
09/30/07 to 06/30/11, market value $63,590,688.
(f) At March 31, 2007, $2,000,000 of the principal amount was pledged as
collateral for futures contracts.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR American Depository Receipt
CVO Contingent Value Obligation
REIT Real Estate Investment Trust
% OF
MARKET MARKET
VALUE VALUE
GEOGRAPHIC DIVERSIFICATION ------- -----------
North America.............. 77.4% $1,569,092,660
Europe..................... 16.4 331,783,544
Latin America.............. 3.3 65,959,614
Japan...................... 2.4 49,401,203
Asia/Pacific............... 0.4 8,450,274
South Africa............... 0.1 1,932,124
----- --------------
Total Investments.......... 100.0% $2,026,619,419
===== ==============
See accompanying notes to schedule of investments.
11
THE GABELLI EQUITY TRUST INC.
NOTES TO SCHEDULE OF INVESTMENTS (UNAUDITED)
1. SECURITY VALUATION. 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's official closing price as of the close of business on the
day the securities are being valued. If there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on 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 of Directors (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 Gabelli Funds, LLC.
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 days or less that are not
credit impaired are valued at amortized cost, unless the Board determines such
amount does not reflect the securities' fair value, in which case these
securities will be fair valued as determined by the Board. Debt instruments
having a maturity greater than 60 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.
Securities and assets for which market quotations are not readily available
are fair valued as determined by the Board.
2. SWAP AGREEMENTS. The Fund may enter into interest rate swap or cap
transactions. The use of swaps and caps is a highly specialized activity that
involves investment techniques and risks different from those associated with
ordinary portfolio transactions. Swap agreements may involve, to varying
degrees, elements of market and counterparty risk, and exposure to loss in
excess of the related amounts reflected below. 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 counterparty) 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's variable rate payment obligation on
Series C Preferred Stock. In an interest rate cap, the Fund would pay a premium
to the counterparty and, to the extent that a specified variable rate index
exceeds a predetermined fixed rate, would receive from that 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 stock dividends when due in accordance with
the Articles Supplementary even if the counterparty defaulted. If there is a
default by the counterparty to a swap contract, the Fund will be limited to
contractual remedies pursuant to the agreements related to the transaction.
There is no assurance that the swap contract counterparties will be able to meet
their obligations pursuant to a swap contract or that, in the event of default,
the Fund will succeed in pursuing contractual remedies. The Fund thus assumes
the risk that it may be delayed in or prevented from obtaining payments owed to
it pursuant to a swap contract. The creditworthiness of the swap contract
counterparties is closely monitored in order to minimize this risk. Depending on
the general state of short-term interest rates and the returns on the Fund's
portfolio securities at that point in time, such a default could negatively
affect the Fund's ability to make dividend payments for Series C Preferred
Stock. 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's ability to make dividend payments.
12
THE GABELLI EQUITY TRUST INC.
NOTES TO SCHEDULE OF INVESTMENTS (CONTINUED) (UNAUDITED)
The change in value of swaps, including the accrual of periodic amounts of
interest to be paid or received on swaps, is reported as unrealized appreciation
or depreciation.
The Fund has entered into an interest rate swap agreement with Citibank
N.A. Under the agreement, the Fund receives a floating rate of interest and pays
a respective fixed rate of interest on the nominal value of the swap. Details of
the swap at March 31, 2007 are as follows:
NOTIONAL FLOATING RATE*/ TERMINATION UNREALIZED
AMOUNT FIXED RATE (RATE RESET MONTHLY) DATE APPRECIATION
------ ---------- -------------------- ----------- ------------
$130,000,000 4.494% 5.32% July 2, 2007 $452,434
---------------------
* Based on Libor (London Interbank Offered Rate).
13
--------------------------------------------------------------------------------
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
AND YOUR PERSONAL PRIVACY
WHO ARE WE?
The Gabelli Global Multimedia Trust Inc. (the "Fund") is a closed-end
investment company registered with the Securities and Exchange Commission
under the Investment Company Act of 1940. We are managed by Gabelli Funds,
LLC, which is affiliated with GAMCO Investors, Inc. GAMCO Investors, Inc.
is a publicly held company that has subsidiaries that provide investment
advisory or brokerage services for a variety of clients.
WHAT KIND OF NON-PUBLIC INFORMATION DO WE COLLECT ABOUT YOU IF YOU BECOME A
SHAREHOLDER?
When you purchase shares of the Fund on the New York Stock Exchange, you
have the option of registering directly with our transfer agent in order,
for example, to participate in our dividend reinvestment plan.
o INFORMATION YOU GIVE US ON YOUR APPLICATION FORM. This could include
your name, address, telephone number, social security number, bank
account number, and other information.
o INFORMATION ABOUT YOUR TRANSACTIONS WITH US. This would include
information about the shares that you buy or sell, it may also include
information about whether you sell or exercise rights that we have
issued from time to time. If we hire someone else to provide
services--like a transfer agent--we will also have information about
the transactions that you conduct through them.
WHAT INFORMATION DO WE DISCLOSE AND TO WHOM DO WE DISCLOSE IT?
We do not disclose any non-public personal information about our customers
or former customers to anyone other than our affiliates, our service
providers who need to know such information, and as otherwise permitted by
law. If you want to find out what the law permits, you can read the privacy
rules adopted by the Securities and Exchange Commission. They are in volume
17 of the Code of Federal Regulations, Part 248. The Commission often posts
information about its regulations on its website, WWW.SEC.GOV.
WHAT DO WE DO TO PROTECT YOUR PERSONAL INFORMATION?
We restrict access to non-public personal information about you to the
people who need to know that information in order to provide services to
you or the Fund and to ensure that we are complying with the laws governing
the securities business. We maintain physical, electronic, and procedural
safeguards to keep your personal information confidential.
--------------------------------------------------------------------------------
DIRECTORS AND OFFICERS
THE GABELLI EQUITY TRUST INC.
ONE CORPORATE CENTER, RYE, NY 10580-1422
DIRECTORS OFFICERS
Mario J. Gabelli, CFA
CHAIRMAN & CHIEF EXECUTIVE OFFICER, Bruce N. Alpert
GAMCO INVESTORS, INC. PRESIDENT
Dr. Thomas E. Bratter Carter W. Austin
PRESIDENT & FOUNDER, JOHN DEWEY ACADEMY VICE PRESIDENT
Anthony J. Colavita Peter D. Goldstein
ATTORNEY-AT-LAW, CHIEF COMPLIANCE OFFICER
ANTHONY J. COLAVITA, P.C.
James E. McKee
James P. Conn SECRETARY
FORMER MANAGING DIRECTOR &
CHIEF INVESTMENT OFFICER, Agnes Mullady
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD. TREASURER
Frank J. Fahrenkopf, Jr. LoAn P. Nguyen
PRESIDENT & CHIEF EXECUTIVE OFFICER, VICE PRESIDENT & OMBUDSMAN
AMERICAN GAMING ASSOCIATION
INVESTMENT ADVISER
Arthur V. Ferrara Gabelli Funds, LLC
FORMER CHAIRMAN & CHIEF EXECUTIVE OFFICER, One Corporate Center
GUARDIAN LIFE INSURANCE COMPANY OF AMERICA Rye, New York 10580-1422
Anthony R. Pustorino CUSTODIAN
CERTIFIED PUBLIC ACCOUNTANT, Mellon Trust of New England, N.A.
PROFESSOR EMERITUS, PACE UNIVERSITY
COUNSEL
Salvatore J. Zizza Willkie Farr & Gallagher LLP
CHAIRMAN, ZIZZA & CO., LTD.
TRANSFER AGENT AND REGISTRAR
Computershare Trust Company, N.A.
STOCK EXCHANGE LISTING
5.875% 6.20%
Common Preferred Preferred
------ --------- ---------
NYSE-Symbol: GAB GAB PrD GAB PrF
Shares Outstanding: 169,489,166 2,949,700 6,000,000
The Net Asset Value per share appears in the Publicly Traded
Funds column, under the heading "General Equity Funds," in
Monday's The Wall Street Journal. It is also listed in
Barron's Mutual Funds/Closed End Funds section under the
heading "General Equity Funds".
The Net Asset Value per share may be obtained each day by
calling (914) 921-5070.
-------------------------------------------------------------------------------
For general information about the Gabelli Funds, call 800-GABELLI
(800-422-3554), fax us at 914-921-5118, visit Gabelli Funds' Internet homepage
at: WWW.GABELLI.COM, or e-mail us at: closedend@gabelli.com
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Fund may, from time to time,
purchase shares of its common stock in the open market when the Fund's shares
are trading at a discount of 10% or more from the net asset value of the
shares. The Fund may also, from time to time, purchase shares of its Series D
and Series F Cumulative Preferred Stock in the open market when the shares are
trading at a discount to the Liquidation Value of $25.00.
-------------------------------------------------------------------------------
THE GABELLI EQUITY TRUST INC.
ONE CORPORATE CENTER
RYE, NY 10580-1422
(914) 921-5070
WWW.GABELLI.COM
FIRST QUARTER REPORT
MARCH 31, 2007
GAB Q1/2007
ITEM 2. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial
officers, or persons performing similar functions, have concluded
that the registrant's disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940,
as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective,
as of a date within 90 days of the filing date of the report that
includes the disclosure required by this paragraph, based on their
evaluation of these controls and procedures required by Rule
30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules
13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934,
as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940
Act (17 CFR 270.30a-3(d)) that occurred during the registrant's
last fiscal quarter that have materially affected, or are
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of
the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) The Gabelli Equity Trust Inc.
---------------------------------------------------------------------
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date May 22, 2007
----------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date May 22, 2007
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Agnes Mullady
-------------------------------------------------------
Agnes Mullady, Principal Financial Officer & Treasurer
Date May 22, 2007
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.