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
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The Gabelli Equity Trust Inc.
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(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
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(Name and address of agent for service)
Registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: December 31
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Date of reporting period: September 30, 2007
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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.
[LOGO]
THE GABELLI
EQUITY TRUST INC.
THE GABELLI EQUITY TRUST INC.
Third Quarter Report
September 30, 2007
TO OUR SHAREHOLDERS,
During the third quarter of 2007, The Gabelli Equity Trust's (the "Fund")
total return was 2.05% on a net asset value ("NAV") basis while the Standard &
Poor's ("S&P") 500 Index and the Dow Jones Industrial Average rose 2.33% and
4.18%, respectively. The Fund's NAV increased 26.97% for the past twelve months,
outperforming the benchmark S&P 500 Index for this period, as well as all of the
longer intervals shown in the comparative results table below. The Fund's market
price on September 30, 2007 was $9.53, which equates to a 1.35% discount to its
NAV of $9.66 at the end of the quarter. The Fund's market price, adjusted for
distributions, declined (1.12)% during the third quarter and was up 24.21% for
the twelve month period ended September 30, 2007.
Enclosed is the investment portfolio as of September 30, 2007.
COMPARATIVE RESULTS
--------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH SEPTEMBER 30, 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) ........... 2.05% 26.97% 21.51% 23.72% 11.05% 12.75% 11.94% 12.70%
INVESTMENT TOTAL RETURN (c) .... (1.12) 24.21 17.72 18.10 11.08 12.61 12.72 12.20
S&P 500 Index ..................... 2.33 16.78 13.24 15.51 6.60 11.12 10.59 11.46(d)
Dow Jones Industrial Average ...... 4.18 21.62 13.90 15.45 7.89 12.55 11.55 12.77(d)
Nasdaq Composite Index ............ 3.77 19.62 12.51 18.18 4.83 10.76 9.45 9.72
(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
PERIODS 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, 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.
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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 SEPTEMBER 30, 2007 (UNAUDITED)
OWNERSHIP AT
SEPTEMBER 30,
SHARES 2007
----------- -------------
NET PURCHASES
COMMON STOCKS
ABG Sundal Collier ASA ......................... 62,000 62,000
Advanced Medical Optics Inc. ................... 45,000 100,000
Alcan Inc. ..................................... 70,000 70,000
Alltel Corp. ................................... 5,000 10,000
Alpharma Inc., Cl. A ........................... 1,000 7,000
Alcoa Inc. ..................................... 2,000 22,000
Anglo American plc (a) ......................... 30,030 30,030
Aquila Inc. .................................... 400,000 800,000
Argo Group International
Holdings Ltd. (b) ........................... 19,452 19,452
AXA Asia Pacific Holdings Ltd. ................. 158,600 158,600
BCE Inc. ....................................... 5,000 255,000
BERU AG ........................................ 1,000 1,000
Boston Scientific Corp. ........................ 150,000 150,000
BP plc ......................................... 90,000 90,000
China Mobile Ltd. .............................. 65,000 65,000
China Petroleum & Chemical Corp.,
Cl. H ....................................... 770,000 770,000
ChoicePoint Inc. ............................... 20,000 20,000
Citigroup Inc. ................................. 10,000 310,000
Clear Channel Outdoor Holdings Inc.,
Cl. A ....................................... 1,300 101,300
Constellation Brands Inc., Cl. A ............... 8,400 14,400
Covidien Ltd. (c) .............................. 45,000 45,000
Dade Behring Holdings Inc. ..................... 195,000 200,000
Discovery Holding Co., Cl. A ................... 49,000 269,000
Dow Jones & Co. Inc. ........................... 42,500 100,000
Flowers Foods Inc. (d) ......................... 35,000 105,000
FMC Corp. (e) .................................. 2,000 4,000
Fortress Investment Group LLC,
Cl. A ....................................... 2,000 5,000
Guangzhou R&F Properties Co. Ltd.,
Cl. H ....................................... 140,000 140,000
Home Inns & Hotels
Management Inc., ADR ........................ 15,000 20,000
ITO EN Ltd., Preference (f) .................... 60,000 60,000
Jarden Corp. ................................... 2,000 2,000
Jardine Matheson Holdings Ltd. ................. 12,000 57,000
Johnson & Johnson .............................. 20,000 20,000
Legg Mason Inc. ................................ 22,000 42,000
Lenox Group Inc. ............................... 3,000 45,000
Macy's Inc. .................................... 20,000 20,000
Marsh & McLennan Companies Inc. ................ 10,000 265,000
OWNERSHIP AT
SEPTEMBER 30,
SHARES 2007
----------- -------------
Meiji Seika Kaisha Ltd. ........................ 10,000 10,000
Morinaga Milk Industry Co. Ltd. ................ 10,000 70,000
Nestle SA ...................................... 2,500 5,000
Nissin Food Products Co. Ltd. .................. 100,000 300,000
Petroleo Brasileiro SA, ADR (e) ................ 11,000 27,000
Pinnacle Entertainment Inc. .................... 3,000 43,000
Schroders plc .................................. 25,000 25,000
Shaw Communications Inc., Cl. B,
New York (e) ................................ 80,000 160,000
Shaw Communications Inc., Cl. B,
Toronto (e) .................................... 20,000 40,000
Standard Motor Products Inc. ................... 20,000 175,000
Synthes Inc. ................................... 1,000 12,500
Tenaris SA, ADR ................................ 20,000 70,000
Tesco plc ...................................... 35,000 100,000
The Bank Of New York
Mellon Corp. (h) ............................ 146,038 146,038
The Blackstone Group LP ........................ 1,900 2,000
The DIRECTV Group Inc. ......................... 140,000 150,000
The Fairchild Corp., Cl. A ..................... 10,000 220,000
The Great Atlantic &
Pacific Tea Co. Inc. ........................ 30,000 30,000
The Manitowoc Co. Inc. (e) ..................... 2,000 4,000
The New York Times Co., Cl. A .................. 5,000 55,000
The Swatch Group AG ............................ 30,000 37,500
Tokyo Broadcasting System Inc. ................. 20,000 90,000
TXU Corp. ...................................... 22,200 245,000
Tyco Electronics Ltd. (c) ...................... 62,000 62,000
Tyco International Ltd. (c) .................... 98,900 160,000
Whole Foods Market Inc. ........................ 10,000 10,000
Yahoo! Inc. .................................... 5,000 165,000
Yahoo! Japan Corp. ............................. 2,000 2,000
YAKULT HONSHA Co. Ltd. ......................... 15,000 550,000
NET SALES
COMMON STOCKS
Acuity Brands Inc. ............................. (2,000) 20,000
Altadis SA ..................................... (5,000) 20,000
Amano Corp. .................................... (55,000) --
Ameriprise Financial Inc. ...................... (55,000) 10,000
Anglo American plc (a) ......................... (33,000) --
aQuantive Inc. (i) ............................. (50,000) --
Argonaut Group Inc. (b) ........................ (30,000) --
Bank of Ireland ................................ (75,000) --
Barclays plc ................................... (90,000) --
See accompanying notes to schedule of investments.
2
THE GABELLI EQUITY TRUST INC.
PORTFOLIO CHANGES (CONTINUED)
QUARTER ENDED SEPTEMBER 30, 2007 (UNAUDITED)
OWNERSHIP AT
SEPTEMBER 30,
SHARES 2007
----------- -------------
NET SALES (CONTINUED)
COMMON STOCKS (CONTINUED)
Bayer AG ....................................... (2,000) 24,000
Berkshire Hathaway Inc. Cl. A .................. (2) 246
Biomet Inc. (j) ................................ (100,000) --
Cablevision Systems Corp., Cl. A ............... (20,000) 1,550,000
Coca-Cola Hellenic Bottling Co. SA ............. (2,000) 38,000
Colgate-Palmolive Co. .......................... (10,000) --
Comcast Corp., Cl. A ........................... (10,000) 65,000
ConocoPhillips ................................. (5,000) 315,000
Cooper Industries Ltd., Cl. A .................. (19,000) 247,000
Corn Products International Inc. ............... (5,000) 55,000
Dana Corp. ..................................... (40,000) 230,000
Deutsche Bank AG, Germany ...................... (9,000) --
Deutsche Bank AG ............................... (1,000) 148,000
Donaldson Co. Inc. ............................. (5,100) 194,900
Duke Energy Corp. .............................. (10,000) 230,000
El Paso Electric Co. ........................... (5,000) 280,000
EMI Group plc (l) .............................. (110,000) --
Florida East Coast Industries Inc. (k) ......... (92,000) --
Genuine Parts Co. .............................. (5,000) 340,000
Greif Inc., Cl. A .............................. (5,000) 215,000
H.J. Heinz Co. ................................. (5,000) 100,000
Harmony Gold Mining Co. Ltd. ................... (20,000) 52,500
Hercules Inc. .................................. (5,000) 165,000
Hilton Hotels Corp. ............................ (525,000) --
ITT Corp. ...................................... (2,000) 253,000
Kellogg Co. .................................... (3,000) 102,000
Ladbrokes plc .................................. (50,000) 1,294,116
MasterCard Inc., Cl. A ......................... (8,000) 110,000
Mellon Financial Corp. (h) ..................... (80,000) --
MGM Mirage ..................................... (96,000) 14,000
News Corp., Cl. A .............................. (10,000) 1,570,000
Next plc ....................................... (3,000) 27,000
Nortel Networks Corp. .......................... (5,000) 195,000
Pactiv Corp. ................................... (2,000) 112,000
Partners Group ................................. (4,000) --
PepsiAmericas Inc. ............................. (10,000) 540,000
Precision Castparts Corp. ...................... (10,000) 100,000
PRIMEDIA Inc. (g) .............................. (318,334) 63,666
Qwest Communications
International Inc. .......................... (30,000) 540,000
Rinker Group Ltd., ADR (m) ..................... (120,000) --
Rogers Communications Inc., Cl. B,
New York .................................... (15,000) 565,690
OWNERSHIP AT
SEPTEMBER 30,
SHARES 2007
----------- -------------
Rollins Inc. ................................... (10,000) 760,000
Rolls-Royce Group plc, Cl. B ................... (71,040,000) --
Sanofi-Aventis ................................. (2,000) 10,000
Sasol Ltd. ..................................... (13,000) --
Skyline Corp. .................................. (1,000) 20,000
Standard Chartered plc ......................... (5,000) 55,000
Telephone & Data Systems Inc. .................. (4,000) 254,000
The Bank of New York Co. Inc. (h) .............. (70,000) --
The Home Depot Inc. ............................ (10,000) --
The Lamson & Sessions Co. ...................... (2,000) 72,000
The Midland Co. ................................ (1,000) 188,000
The Walt Disney Co. ............................ (5,000) 75,000
Thomas & Betts Corp. ........................... (65,000) 240,000
TI Automotive Ltd. (n) ......................... (27,000) --
Total SA ....................................... (8,500) 24,128
Tyco International Ltd. (c) .................... (300,000) --
UBS AG ......................................... (15,000) 25,000
Viacom Inc., Cl. A ............................. (5,000) 365,000
Westpac Banking Corp. .......................... (13,000) 50,000
----------
(a) Merger - 0.91 share of Anglo American plc (B1XZS82) for every 1 share of
Anglo American plc (0490151)
(b) Merger - 0.6484 share of Argo Group International Holdings for every 1
share of Argonaut Group Inc.
(c) Spin-off - 0.25 share of Covidien Ltd. (G2552X108) and 0.25 share of Tyco
Electronics Ltd. (G9144P105) for every share of Tyco International Ltd.
(902124106) and a reverse 1 for 4 stock split of Tyco International Ltd.
(G9143X208)
(d) 3 for 2 stock split
(e) 2 for 1 stock split
(f) Spin-off - 0.3 share of Preferred share for every 1 Common share held.
(g) Reverse Split - 1:6 and cusip change
(h) Merger - 0.9434 share of The Bank of New York Mellon Corp. for every share
of The Bank of New York Co. Inc. and 1 share of The Bank of New York
Mellon Corp. for every 1 share of Mellon Financial Corp.
(i) Cash Merger - $66.50 for every 1 share
(j) Tender Offer - $46.00 for every 1 share held
(k) Cash Merger - $62.50 for every 1 share
(l) Tender Offer - 2.65 British Pounds for every 1 share held
(m) Tender Offer - $79.25 for every 1 share held
(n) Tender Offer - $0.0113467 for every 1 share
See accompanying notes to schedule of investments.
3
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2007 (UNAUDITED)
MARKET
SHARES VALUE
----------- --------------
COMMON STOCKS -- 95.3%
FOOD AND BEVERAGE -- 11.9%
85,000 Ajinomoto Co. Inc. ............................. $ 1,065,599
40,000 Anheuser-Busch Companies Inc. .................. 1,999,600
36,000 ARIAKE JAPAN Co. Ltd. .......................... 741,218
24,000 Brown-Forman Corp., Cl. A ...................... 1,872,000
110,000 Cadbury Schweppes plc .......................... 1,276,087
183,400 Cadbury Schweppes plc, ADR ..................... 8,531,768
72,000 Campbell Soup Co. .............................. 2,664,000
32,000 Cermaq ASA ..................................... 593,554
40,000 China Mengniu Dairy Co. Ltd. ................... 174,174
20,000 Coca-Cola Enterprises Inc. ..................... 484,400
38,000 Coca-Cola Hellenic Bottling Co. SA ............. 2,194,527
14,400 Constellation Brands Inc., Cl. A+ .............. 348,624
55,000 Corn Products International Inc. ............... 2,522,850
300,000 Davide Campari-Milano SpA ...................... 3,080,038
60,000 Del Monte Foods Co. ............................ 630,000
80,000 Diageo plc ..................................... 1,757,918
224,000 Diageo plc, ADR ................................ 19,651,520
105,000 Flowers Foods Inc. ............................. 2,289,000
99,000 Fomento Economico Mexicano
SAB de CV, ADR .............................. 3,702,600
180,000 General Mills Inc. ............................. 10,441,800
380,000 Groupe Danone .................................. 29,910,593
1,000,000 Grupo Bimbo SAB de CV, Cl. A ................... 5,577,194
100,000 H.J. Heinz Co. ................................. 4,620,000
20,000 Hain Celestial Group Inc.+ ..................... 642,600
10,000 Heineken NV .................................... 656,219
200,000 ITO EN Ltd. .................................... 4,875,288
60,000 ITO EN Ltd., Preference+ ....................... 1,193,575
102,000 Kellogg Co. .................................... 5,712,000
75,000 Kerry Group plc, Cl. A ......................... 2,212,957
215,000 Kraft Foods Inc., Cl. A ........................ 7,419,650
12,100 LVMH Moet Hennessy
Louis Vuitton SA ............................ 1,450,537
950,000 Marine Harvest+ ................................ 1,208,811
10,000 Meiji Seika Kaisha Ltd. ........................ 50,320
70,000 Morinaga Milk Industry Co. Ltd. ................ 280,329
5,000 Nestle SA ...................................... 2,246,081
300,000 Nissin Food Products Co. Ltd. .................. 10,708,223
540,000 PepsiAmericas Inc. ............................. 17,517,600
350,000 PepsiCo Inc. ................................... 25,641,000
8,100 Pernod-Ricard SA ............................... 1,767,518
68,200 Ralcorp Holdings Inc.+ ......................... 3,806,924
26,000 Remy Cointreau SA .............................. 1,883,386
300,000 Sara Lee Corp. ................................. 5,007,000
100,000 Tesco plc ...................................... 898,703
200,000 The Coca-Cola Co. .............................. 11,494,000
45,000 The Hershey Co. ................................ 2,088,450
2,000 The J.M. Smucker Co. ........................... 106,840
MARKET
SHARES VALUE
----------- --------------
118,820 Tootsie Roll Industries Inc. ................... $ 3,152,295
170,000 Wm. Wrigley Jr. Co. ............................ 10,919,100
42,500 Wm. Wrigley Jr. Co., Cl. B ..................... 2,703,425
550,000 YAKULT HONSHA Co. Ltd. ......................... 12,521,221
--------------
244,293,116
--------------
FINANCIAL SERVICES -- 9.4%
62,000 ABG Sundal Collier ASA ......................... 164,452
7,000 Allianz SE ..................................... 1,635,486
575,000 American Express Co. ........................... 34,137,750
50,000 American International Group Inc. .............. 3,382,500
10,000 Ameriprise Financial Inc. ...................... 631,100
19,452 Argo Group International
Holdings Ltd.+ .............................. 846,357
95,000 Aviva plc ...................................... 1,430,559
158,600 AXA Asia Pacific Holdings Ltd. ................. 1,097,724
90,000 Banco Santander SA, ADR ........................ 1,737,900
246 Berkshire Hathaway Inc., Cl. A+ ................ 29,153,460
7,500 Calamos Asset
Management Inc., Cl. A ...................... 211,725
310,000 Citigroup Inc. ................................. 14,467,700
155,000 Commerzbank AG, ADR ............................ 6,275,749
148,000 Deutsche Bank AG ............................... 19,001,720
5,000 Fortress Investment
Group LLC, Cl. A ............................ 106,600
20,000 H&R Block Inc. ................................. 423,600
25,000 Interactive Brokers
Group Inc., Cl. A+ .......................... 656,500
180,000 Janus Capital Group Inc. ....................... 5,090,400
52,000 JPMorgan Chase & Co. ........................... 2,382,640
260,000 Landesbank Berlin Holding AG ................... 2,509,946
42,000 Legg Mason Inc. ................................ 3,540,180
133,000 Leucadia National Corp. ........................ 6,413,260
265,000 Marsh & McLennan
Companies Inc. .............................. 6,757,500
65,000 Moody's Corp. .................................. 3,276,000
30,000 Nuveen Investments Inc., Cl. A ................. 1,858,200
2,500 Prudential Financial Inc. ...................... 243,950
25,000 Schroders plc .................................. 709,448
55,000 Standard Chartered plc ......................... 1,800,475
80,000 State Street Corp. ............................. 5,452,800
20,000 SunTrust Banks Inc. ............................ 1,513,400
150,000 T. Rowe Price Group Inc. ....................... 8,353,500
5,000 The Allstate Corp. ............................. 285,950
146,038 The Bank of New York
Mellon Corp. ................................ 6,446,117
2,000 The Blackstone Group LP+ ....................... 50,160
44,500 The Charles Schwab Corp. ....................... 961,200
18,000 The Dun & Bradstreet Corp. ..................... 1,774,980
188,000 The Midland Co. ................................ 10,332,480
See accompanying notes to schedule of investments.
4
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007 (UNAUDITED)
MARKET
SHARES VALUE
----------- --------------
COMMON STOCKS (CONTINUED)
FINANCIAL SERVICES (CONTINUED)
135,000 The Phoenix Companies Inc. ..................... $ 1,904,850
80,000 The Shizuoka Bank Ltd. ......................... 777,260
3,000 The Travelers Companies Inc. ................... 151,020
25,000 UBS AG ......................................... 1,344,213
150,000 UniCredito Italiano SpA ........................ 1,283,349
100,000 Waddell & Reed Financial Inc., Cl. A ........... 2,703,000
50,000 Westpac Banking Corp. .......................... 1,264,475
--------------
194,541,635
--------------
ENERGY AND UTILITIES -- 7.3%
5,000 AGL Resources Inc. ............................. 198,100
70,000 Allegheny Energy Inc.+ ......................... 3,658,200
70,000 Apache Corp. ................................... 6,304,200
800,000 Aquila Inc.+ ................................... 3,208,000
90,000 BP plc ......................................... 1,044,991
247,000 BP plc, ADR .................................... 17,129,450
105,000 CH Energy Group Inc. ........................... 5,019,000
770,000 China Petroleum &
Chemical Corp., Cl. H ....................... 961,776
70,000 CMS Energy Corp. ............................... 1,177,400
315,000 ConocoPhillips ................................. 27,647,550
8,000 Constellation Energy Group Inc. ................ 686,320
60,000 DPL Inc. ....................................... 1,575,600
14,000 DTE Energy Co. ................................. 678,160
230,000 Duke Energy Corp. .............................. 4,298,700
270,000 El Paso Corp. .................................. 4,581,900
280,000 El Paso Electric Co.+ .......................... 6,476,400
50,000 Energy East Corp. .............................. 1,352,500
80,000 Exxon Mobil Corp. .............................. 7,404,800
20,000 FPL Group Inc. ................................. 1,217,600
210,000 Halliburton Co. ................................ 8,064,000
32,000 Imperial Oil Ltd. .............................. 1,585,764
20,000 Marathon Oil Corp. ............................. 1,140,400
10,000 Mirant Corp.+ .................................. 406,800
140,000 Mirant Corp., Escrow+ (a) ...................... 0
2,000 Niko Resources Ltd., New York .................. 195,546
1,000 Niko Resources Ltd., Toronto ................... 97,773
10,000 NiSource Inc. .................................. 191,400
240,000 Northeast Utilities ............................ 6,856,800
20,000 Oceaneering International Inc.+ ................ 1,516,000
2,000 PetroChina Co. Ltd., ADR ....................... 370,220
27,000 Petroleo Brasileiro SA, ADR .................... 2,038,500
100,000 Progress Energy Inc., CVO+ (a) ................. 33,000
65,000 Saipem SpA ..................................... 2,773,175
5,000 SJW Corp. ...................................... 170,700
20,000 Southwest Gas Corp. ............................ 565,800
115,000 Spectra Energy Corp. ........................... 2,815,200
60,000 The AES Corp.+ ................................. 1,202,400
SHARES/ MARKET
UNITS VALUE
----------- --------------
24,128 Total SA ........................................ $ 1,961,783
245,000 TXU Corp. ....................................... 16,775,150
270,000 Westar Energy Inc. .............................. 6,631,200
--------------
150,012,258
--------------
TELECOMMUNICATIONS -- 6.4%
10,000 Alltel Corp. ................................... 696,800
255,000 BCE Inc. ....................................... 10,212,750
16,000 Bell Aliant Regional Communications
Income Fund (a)(b) .......................... 515,397
30,000 Brasil Telecom
Participacoes SA, ADR ....................... 2,238,600
1,700,000 BT Group plc ................................... 10,678,043
4,440,836 Cable & Wireless Jamaica Ltd.+ (c) ............. 49,276
850,000 Cincinnati Bell Inc.+ .......................... 4,199,000
90,000 Citizens Communications Co. .................... 1,288,800
110,000 Compania de Telecomunicaciones
de Chile SA, ADR ............................ 905,300
168,000 Deutsche Telekom AG, ADR ....................... 3,297,840
5,000 France Telecom SA, ADR ......................... 167,200
100,000 Koninklijke KPN NV ............................. 1,735,373
540,000 Qwest Communications
International Inc.+ ......................... 4,946,400
550,000 Sprint Nextel Corp. ............................ 10,450,000
186,554 Tele Norte Leste
Participacoes SA, ADR ....................... 4,190,003
60,000 Tele2 AB, Cl. B ................................ 1,296,535
48,000 Telecom Argentina SA, ADR+ ..................... 1,178,400
1,470,000 Telecom Italia SpA ............................. 4,470,013
230,000 Telefonica SA, ADR ............................. 19,269,400
62,000 Telefonos de Mexico SAB de CV,
Cl. L, ADR .................................. 2,037,940
254,000 Telephone & Data Systems Inc. .................. 16,954,500
368,000 Telephone & Data Systems Inc.,
Special ..................................... 22,816,000
15,000 TELUS Corp. .................................... 867,139
180,000 Verizon Communications Inc. .................... 7,970,400
5,169 Windstream Corp. ............................... 72,986
--------------
132,504,095
--------------
DIVERSIFIED INDUSTRIAL -- 6.4%
20,000 Acuity Brands Inc. ............................. 1,009,600
164,000 Ampco-Pittsburgh Corp. ......................... 6,458,320
155,000 Baldor Electric Co. ............................ 6,192,250
24,000 Bayer AG ....................................... 1,910,308
25,000 Bouygues SA .................................... 2,156,383
247,000 Cooper Industries Ltd., Cl. A .................. 12,619,230
260,000 Crane Co. ...................................... 12,472,200
77,500 CRH plc ........................................ 3,077,721
400,000 Enodis plc ..................................... 1,428,104
See accompanying notes to schedule of investments.
5
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007 (UNAUDITED)
MARKET
SHARES VALUE
----------- --------------
COMMON STOCKS (CONTINUED)
DIVERSIFIED INDUSTRIAL (CONTINUED)
150,000 General Electric Co. ........................... $ 6,210,000
215,000 Greif Inc., Cl. A .............................. 13,046,200
18,000 Greif Inc., Cl. B .............................. 1,017,000
450,000 Honeywell International Inc. ................... 26,761,500
253,000 ITT Corp. ...................................... 17,186,290
101,000 Park-Ohio Holdings Corp.+ ...................... 2,620,950
1,000 Pentair Inc. ................................... 33,180
2,000 Sulzer AG ...................................... 2,868,800
30,000 Technip SA ..................................... 2,682,200
72,000 The Lamson & Sessions Co.+ ..................... 1,941,120
75,000 Trinity Industries Inc. ........................ 2,815,500
160,000 Tyco International Ltd. ........................ 7,094,400
--------------
131,601,256
--------------
CABLE AND SATELLITE -- 5.3%
1,550,000 Cablevision Systems Corp., Cl. A+ .............. 54,157,000
65,000 Comcast Corp., Cl. A+ .......................... 1,571,700
127,500 Comcast Corp., Cl. A, Special+ ................. 3,054,900
55,000 EchoStar Communications
Corp., Cl. A+ ............................... 2,574,550
156,770 Liberty Global Inc., Cl. A+ .................... 6,430,705
139,001 Liberty Global Inc., Cl. C+ .................... 5,373,779
565,690 Rogers Communications Inc.,
Cl. B, New York ............................. 25,755,866
19,310 Rogers Communications Inc.,
Cl. B, Toronto .............................. 879,060
160,000 Shaw Communications Inc.,
Cl. B, New York ............................. 3,974,400
40,000 Shaw Communications Inc.,
Cl. B, Toronto .............................. 993,314
150,000 The DIRECTV Group Inc.+ ........................ 3,642,000
--------------
108,407,274
--------------
HEALTH CARE -- 4.5%
8,000 Abbott Laboratories ............................ 428,960
100,000 Advanced Medical Optics Inc.+ .................. 3,059,000
14,046 Allergan Inc. .................................. 905,546
7,000 Alpharma Inc., Cl. A ........................... 149,520
52,000 Amgen Inc.+ .................................... 2,941,640
19,146 AstraZeneca plc ................................ 959,662
26,000 Biogen Idec Inc.+ .............................. 1,724,580
150,000 Boston Scientific Corp.+ ....................... 2,092,500
135,000 Bristol-Myers Squibb Co. ....................... 3,890,700
12,000 Cochlear Ltd. .................................. 830,135
45,000 Covidien Ltd.+ ................................. 1,867,500
200,000 Dade Behring Holdings Inc. ..................... 15,270,000
45,036 GlaxoSmithKline plc ............................ 1,195,100
4,000 GlaxoSmithKline plc, ADR ....................... 212,800
MARKET
SHARES VALUE
----------- --------------
30,000 Henry Schein Inc.+ ............................. $ 1,825,200
30,000 Hospira Inc.+ .................................. 1,243,500
40,000 Invitrogen Corp.+ .............................. 3,269,200
20,000 Johnson & Johnson .............................. 1,314,000
95,000 Merck & Co. Inc. ............................... 4,910,550
2,000 Nobel Biocare Holding AG ....................... 541,550
39,000 Novartis AG .................................... 2,152,244
105,000 Novartis AG, ADR ............................... 5,770,800
430,000 Pfizer Inc. .................................... 10,504,900
16,400 Roche Holding AG ............................... 2,973,623
10,000 Sanofi-Aventis ................................. 846,725
100,000 Schering-Plough Corp. .......................... 3,163,000
80,000 Smith & Nephew plc ............................. 977,985
50,000 SSL International plc .......................... 434,774
5,250 Straumann Holding AG ........................... 1,474,554
12,500 Synthes Inc. ................................... 1,398,969
19,000 Takeda Pharmaceutical Co. Ltd. ................. 1,336,525
40,000 UnitedHealth Group Inc. ........................ 1,937,200
82,000 William Demant Holding A/S+ .................... 7,246,504
100,000 Wyeth .......................................... 4,455,000
3,500 Zimmer Holdings Inc.+ .......................... 283,465
--------------
93,587,911
--------------
CONSUMER PRODUCTS -- 4.4%
20,000 Altadis SA ..................................... 1,407,121
84,000 Avon Products Inc. ............................. 3,152,520
42,000 Christian Dior SA .............................. 5,374,496
15,000 Church & Dwight Co. Inc. ....................... 705,600
32,000 Clorox Co. ..................................... 1,951,680
69,000 Compagnie Financiere
Richemont SA, Cl. A ......................... 4,572,343
114,000 Energizer Holdings Inc.+ ....................... 12,636,900
60,000 Fortune Brands Inc. ............................ 4,889,400
2,000 Givaudan SA .................................... 1,848,400
60,000 Hanesbrands Inc.+ .............................. 1,683,600
32,000 Harley-Davidson Inc. ........................... 1,478,720
2,000 Jarden Corp.+ .................................. 61,880
45,000 Lenox Group Inc.+ .............................. 216,000
15,000 Matsushita Electric Industrial
Co. Ltd., ADR ............................... 278,250
15,000 Mattel Inc. .................................... 351,900
21,000 National Presto Industries Inc. ................ 1,113,000
2,500 Nintendo Co. Ltd. .............................. 1,301,528
10,000 Oil-Dri Corp. of America ....................... 184,000
300,000 Procter & Gamble Co. ........................... 21,102,000
60,000 Reckitt Benckiser plc .......................... 3,525,657
30,000 Svenska Cellulosa
Aktiebolaget, Cl. B ......................... 559,814
1,000,000 Swedish Match AB ............................... 20,794,215
37,500 The Swatch Group AG ............................ 2,401,224
--------------
91,590,248
--------------
See accompanying notes to schedule of investments.
6
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007 (UNAUDITED)
MARKET
SHARES VALUE
----------- --------------
COMMON STOCKS (CONTINUED)
ENTERTAINMENT -- 4.3%
100,000 Aruze Corp. .................................... $ 4,457,406
32,000 Canal+ Groupe .................................. 356,372
2,002 Chestnut Hill Ventures+ (a) .................... 91,115
269,000 Discovery Holding Co., Cl. A+ .................. 7,760,650
3,000 DreamWorks Animation SKG
Inc., Cl. A+ ................................ 100,260
79,500 EMI Group plc, ADR ............................. 830,775
600,603 Gemstar-TV Guide
International Inc.+ ......................... 4,180,197
615,000 Grupo Televisa SA, ADR ......................... 14,864,550
125 Live Nation Inc.+ .............................. 2,656
43,000 Pinnacle Entertainment Inc.+ ................... 1,170,890
100,000 Publishing and Broadcasting Ltd. ............... 1,748,081
1,150,000 Rank Group plc ................................. 3,805,805
12,000 Regal Entertainment Group, Cl. A ............... 263,400
75,000 Six Flags Inc.+ ................................ 259,500
75,000 The Walt Disney Co. ............................ 2,579,250
810,000 Time Warner Inc. ............................... 14,871,600
90,000 Tokyo Broadcasting System Inc. ................. 2,522,962
20,200 Triple Crown Media Inc.+ ....................... 124,634
365,000 Viacom Inc., Cl. A+ ............................ 14,216,750
333,900 Vivendi ........................................ 14,093,228
--------------
88,300,081
--------------
PUBLISHING -- 3.8%
100,000 Dow Jones & Co. Inc. ........................... 5,970,000
9,000 Idearc Inc. .................................... 283,230
348,266 Independent News & Media plc ................... 1,296,146
20,000 McClatchy Co., Cl. A ........................... 399,600
320,000 Media General Inc., Cl. A ...................... 8,803,200
122,000 Meredith Corp. ................................. 6,990,600
1,570,000 News Corp., Cl. A .............................. 34,524,300
20,000 News Corp., Cl. B .............................. 467,800
63,666 PRIMEDIA Inc. .................................. 893,871
261,319 SCMP Group Ltd. ................................ 87,399
66,585 Seat Pagine Gialle SpA ......................... 37,124
160,000 The E.W. Scripps Co., Cl. A .................... 6,720,000
182,000 The McGraw-Hill Companies Inc. ................. 9,265,620
55,000 The New York Times Co., Cl. A .................. 1,086,800
19,030 Tribune Co. .................................... 519,900
--------------
77,345,590
--------------
EQUIPMENT AND SUPPLIES -- 3.3%
265,000 AMETEK Inc. .................................... 11,453,300
4,000 Amphenol Corp., Cl. A .......................... 159,040
50,000 Assa Abloy AB, Cl. B ........................... 1,037,771
94,000 CIRCOR International Inc. ...................... 4,268,540
194,900 Donaldson Co. Inc. ............................. 8,139,024
MARKET
SHARES VALUE
----------- --------------
60,000 Fedders Corp.+ ................................. $ 2,760
110,000 Flowserve Corp. ................................ 8,379,800
23,000 Franklin Electric Co. Inc. ..................... 945,530
90,000 Gerber Scientific Inc.+ ........................ 976,500
75,000 GrafTech International Ltd.+ ................... 1,338,000
315,000 IDEX Corp. ..................................... 11,462,850
40,000 Ingersoll-Rand Co. Ltd., Cl. A ................. 2,178,800
103,000 Lufkin Industries Inc. ......................... 5,667,060
11,000 Mueller Industries Inc. ........................ 397,540
2,000 Sealed Air Corp. ............................... 51,120
70,000 Tenaris SA, ADR ................................ 3,683,400
4,000 The Manitowoc Co. Inc. ......................... 177,120
100,000 The Weir Group plc ............................. 1,686,922
190,000 Watts Water Technologies
Inc., Cl. A ................................. 5,833,000
--------------
67,838,077
--------------
AVIATION: PARTS AND SERVICES -- 3.0%
370,000 Curtiss-Wright Corp. ........................... 17,575,000
200,000 GenCorp Inc.+ .................................. 2,392,000
100,000 Precision Castparts Corp. ...................... 14,798,000
73,000 Sequa Corp., Cl. A+ ............................ 12,101,940
84,600 Sequa Corp., Cl. B+ ............................ 14,085,900
220,000 The Fairchild Corp., Cl. A+ .................... 440,000
--------------
61,392,840
--------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 2.4%
1,000 BERU AG ........................................ 104,094
43,000 BorgWarner Inc. ................................ 3,935,790
182,000 CLARCOR Inc. ................................... 6,226,220
230,000 Dana Corp.+ .................................... 44,850
82,500 Earl Scheib Inc.+ .............................. 309,375
340,000 Genuine Parts Co. .............................. 17,000,000
70,000 Johnson Controls Inc. .......................... 8,267,700
130,000 Midas Inc.+ .................................... 2,453,100
317,500 Modine Manufacturing Co. ....................... 8,451,850
180,000 Proliance International Inc.+ .................. 379,800
175,000 Standard Motor Products Inc. ................... 1,645,000
35,000 Superior Industries International Inc. ......... 759,150
--------------
49,576,929
--------------
HOTELS AND GAMING -- 2.1%
1,200 Accor SA ....................................... 106,535
190,000 Gaylord Entertainment Co.+ ..................... 10,111,800
70,000 Harrah's Entertainment Inc. .................... 6,085,100
20,000 Home Inns & Hotels
Management Inc., ADR+ ....................... 696,000
46,160 InterContinental Hotels Group plc .............. 916,570
1,294,116 Ladbrokes plc .................................. 11,431,676
6,000 Las Vegas Sands Corp.+ ......................... 800,520
See accompanying notes to schedule of investments.
7
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007 (UNAUDITED)
MARKET
SHARES VALUE
----------- --------------
COMMON STOCKS (CONTINUED)
HOTELS AND GAMING (CONTINUED)
3,761,000 Mandarin Oriental International Ltd. ........... $ 8,462,250
14,000 MGM Mirage+ .................................... 1,252,160
16,000 Orient-Express Hotels Ltd., Cl. A .............. 820,320
34,000 Starwood Hotels &
Resorts Worldwide Inc. ...................... 2,065,500
--------------
42,748,431
--------------
BROADCASTING -- 2.1%
95,000 British Sky Broadcasting Group plc ............. 1,350,867
415,000 CBS Corp., Cl. A ............................... 13,076,650
6,143 Citadel Broadcasting Corp. ..................... 25,555
300,000 Clear Channel Communications Inc. .............. 11,232,000
2,000 Cogeco Inc. .................................... 76,007
13,333 Corus Entertainment Inc.,
Cl. B, New York ............................. 633,051
3,333 Corus Entertainment Inc.,
Cl. B, Toronto .............................. 157,795
120,000 Gray Television Inc. ........................... 1,018,800
27,000 Gray Television Inc., Cl. A .................... 231,930
77,000 Liberty Media Corp. - Capital, Cl. A+ .......... 9,611,910
85,000 Lin TV Corp., Cl. A+ ........................... 1,105,850
120,000 Mediaset SpA ................................... 1,238,860
29,000 Modern Times Group
MTG AB, Cl. B ............................... 1,872,100
100,000 Television Broadcasts Ltd. ..................... 600,732
110,000 Young Broadcasting Inc., Cl. A+ ................ 242,000
--------------
42,474,107
--------------
MACHINERY -- 1.7%
20,000 Caterpillar Inc. ............................... 1,568,600
220,000 Deere & Co. .................................... 32,652,400
8,000 SMC Corp. ...................................... 1,095,547
--------------
35,316,547
--------------
BUSINESS SERVICES -- 1.5%
7,050 ACCO Brands Corp.+ ............................. 158,202
18,000 Avis Budget Group Inc.+ ........................ 412,020
30,500 Canon Inc. ..................................... 1,664,867
1,000 CheckFree Corp.+ ............................... 46,540
20,000 ChoicePoint Inc.+ .............................. 758,400
101,300 Clear Channel Outdoor
Holdings Inc., Cl. A+ ....................... 2,583,150
186,554 Contax Participacoes SA, ADR ................... 275,783
200,000 G4S plc ........................................ 826,582
57,000 Jardine Matheson Holdings Ltd. ................. 1,630,200
94,000 Landauer Inc. .................................. 4,790,240
110,000 MasterCard Inc., Cl. A ......................... 16,276,700
MARKET
SHARES VALUE
----------- --------------
72,500 Nashua Corp.+ .................................. $ 804,750
25,000 Secom Co. Ltd. ................................. 1,203,587
--------------
31,431,021
--------------
CONSUMER SERVICES -- 1.5%
200,000 IAC/InterActiveCorp+ ........................... 5,934,000
265,131 Liberty Media Corp. -
Interactive, Cl. A+ ......................... 5,093,166
760,000 Rollins Inc. ................................... 20,284,400
--------------
31,311,566
--------------
SPECIALTY CHEMICALS -- 1.5%
40,000 Ashland Inc. ................................... 2,408,400
5,400 Ciba Specialty Chemicals AG, ADR ............... 137,172
20,000 E.I. du Pont de Nemours and Co. ................ 991,200
350,000 Ferro Corp. .................................... 6,993,000
4,000 FMC Corp. ...................................... 208,080
50,000 H.B. Fuller Co. ................................ 1,484,000
165,000 Hercules Inc. .................................. 3,468,300
70,000 International Flavors &
Fragrances Inc. ............................. 3,700,200
230,000 Omnova Solutions Inc.+ ......................... 1,329,400
275,000 Sensient Technologies Corp. .................... 7,939,250
15,000 Syngenta AG, ADR ............................... 649,950
165,000 Tokai Carbon Co. Ltd. .......................... 1,870,283
4,032 Tronox Inc., Cl. B ............................. 36,409
--------------
31,215,644
--------------
AEROSPACE -- 1.5%
105,000 Boeing Co. ..................................... 11,023,950
10,000 Lockheed Martin Corp. .......................... 1,084,900
80,000 Northrop Grumman Corp. ......................... 6,240,000
1,200,000 Rolls-Royce Group plc+ ......................... 12,828,382
--------------
31,177,232
--------------
COMMUNICATIONS EQUIPMENT -- 1.5%
10,000 Andrew Corp.+ .................................. 138,500
480,000 Corning Inc. ................................... 11,832,000
90,000 Motorola Inc. .................................. 1,667,700
195,000 Nortel Networks Corp.+ ......................... 3,311,100
240,000 Thomas & Betts Corp.+ .......................... 14,073,600
--------------
31,022,900
--------------
METALS AND MINING -- 1.5%
70,000 Alcan Inc. ..................................... 7,005,600
22,000 Alcoa Inc. ..................................... 860,640
30,030 Anglo American plc ............................. 2,020,801
89,148 Barrick Gold Corp. ............................. 3,590,882
280,000 Consolidated Minerals Ltd. ..................... 1,219,930
See accompanying notes to schedule of investments.
8
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007 (UNAUDITED)
MARKET
SHARES VALUE
----------- --------------
COMMON STOCKS (CONTINUED)
METALS AND MINING (CONTINUED)
52,500 Harmony Gold Mining Co. Ltd.+ .................. $ 621,758
35,000 Harmony Gold Mining Co. Ltd.,
ADR+ ........................................ 416,850
75,000 Ivanhoe Mines Ltd.+ ............................ 978,750
52,000 New Hope Corp. Ltd. ............................ 110,741
155,000 Newmont Mining Corp. ........................... 6,933,150
23,000 Rio Tinto plc .................................. 1,989,606
69,666 Xstrata plc .................................... 4,623,875
--------------
30,372,583
--------------
WIRELESS COMMUNICATIONS -- 1.2%
98,000 America Movil SAB de CV,
Cl. L, ADR .................................. 6,272,000
65,000 China Mobile Ltd. .............................. 1,064,402
8,000 Clearwire Corp., Cl. A+ ........................ 195,520
2,000 NTT DoCoMo Inc. ................................ 2,855,526
3,340 Tele Norte Celular
Participacoes SA, ADR+ ...................... 48,263
8,350 Telemig Celular
Participacoes SA, ADR .......................... 489,310
32,165 Tim Participacoes SA, ADR ...................... 1,304,612
100,000 United States Cellular Corp.+ .................. 9,820,000
270 Vivo Participacoes SA+ ......................... 2,192
174,122 Vivo Participacoes SA, ADR ..................... 863,645
5,845 Vivo Participacoes SA, Preference .............. 28,412
70,000 Vodafone Group plc, ADR ........................ 2,541,000
--------------
25,484,882
--------------
ELECTRONICS -- 1.1%
5,000 Advanced Micro Devices Inc.+ ................... 66,000
13,000 Fanuc Ltd. ..................................... 1,325,295
5,000 Hitachi Ltd., ADR .............................. 330,700
180,000 Intel Corp. .................................... 4,654,800
4,920 Keyence Corp. .................................. 1,092,239
80,000 LSI Corp.+ ..................................... 593,600
20,000 Molex Inc., Cl. A .............................. 507,200
7,500 NEC Corp., ADR ................................. 36,386
38,000 Royal Philips Electronics NV ................... 1,707,720
265,000 Texas Instruments Inc. ......................... 9,696,350
62,000 Tyco Electronics Ltd. .......................... 2,196,660
--------------
22,206,950
--------------
ENVIRONMENTAL SERVICES -- 1.1%
97,500 Republic Services Inc. ......................... 3,189,225
500,000 Waste Management Inc. .......................... 18,870,000
--------------
22,059,225
--------------
MARKET
SHARES VALUE
----------- --------------
AGRICULTURE -- 1.0%
490,000 Archer-Daniels-Midland Co. ..................... $ 16,209,200
30,000 Monsanto Co. ................................... 2,572,200
30,000 The Mosaic Co.+ ................................ 1,605,600
--------------
20,387,000
--------------
AUTOMOTIVE -- 0.7%
50,000 General Motors Corp. ........................... 1,835,000
125,000 Navistar International Corp.+ .................. 7,712,500
64,500 PACCAR Inc. .................................... 5,498,625
--------------
15,046,125
--------------
RETAIL -- 0.7%
100,000 AutoNation Inc.+ ............................... 1,772,000
4,000 AutoZone Inc.+ ................................. 464,560
27,000 Coldwater Creek Inc.+ .......................... 293,220
40,000 Costco Wholesale Corp. ......................... 2,454,800
25,000 CVS Caremark Corp. ............................. 990,750
10,108 Denny's Corp.+ ................................. 40,432
21,500 Hennes & Mauritz AB, Cl. B ..................... 1,362,913
20,000 Macy's Inc. .................................... 646,400
27,000 Next plc ....................................... 1,084,950
50,000 Sally Beauty Holdings Inc.+ .................... 422,500
39,800 Seven & I Holdings Co. Ltd. .................... 1,023,889
20,000 SUPERVALU Inc. ................................. 780,200
30,000 The Great Atlantic & Pacific
Tea Co. Inc.+ ............................... 913,800
10,000 Whole Foods Market Inc. ........................ 489,600
73,000 Woolworths Ltd. ................................ 1,924,513
--------------
14,664,527
--------------
TRANSPORTATION -- 0.6%
100,000 AMR Corp.+ ..................................... 2,229,000
70,000 Asciano Group+ ................................. 557,168
165,000 GATX Corp. ..................................... 7,053,750
15,000 Grupo TMM SA, Cl. A, ADR+ ...................... 47,400
50,000 Laidlaw International Inc. ..................... 1,761,000
70,000 Toll Holdings Ltd. ............................. 814,322
--------------
12,462,640
--------------
REAL ESTATE -- 0.4%
70,000 Cheung Kong (Holdings) Ltd. .................... 1,154,383
55,500 Griffin Land & Nurseries Inc.+ ................. 2,026,860
140,000 Guangzhou R&F Properties
Co. Ltd., Cl. H ............................. 660,934
150,000 The St. Joe Co. ................................ 5,041,500
--------------
8,883,677
--------------
See accompanying notes to schedule of investments.
9
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007 (UNAUDITED)
MARKET
SHARES VALUE
----------- --------------
COMMON STOCKS (CONTINUED)
CLOSED-END FUNDS -- 0.4%
31,500 Royce Value Trust Inc. ......................... $ 608,580
104,000 The Central Europe and
Russia Fund Inc. ............................ 5,825,040
70,000 The New Germany Fund Inc. ...................... 1,230,600
--------------
7,664,220
--------------
COMPUTER SOFTWARE AND SERVICES -- 0.3%
10,000 Check Point Software
Technologies Ltd.+ .......................... 251,800
24,100 Square Enix Co. Ltd. ........................... 797,284
25,256 Telecom Italia Media SpA+ ...................... 9,849
165,000 Yahoo! Inc.+ ................................... 4,428,600
2,000 Yahoo! Japan Corp. ............................. 757,411
--------------
6,244,944
--------------
PAPER AND FOREST PRODUCTS -- 0.2%
112,000 Pactiv Corp.+ .................................. 3,209,920
--------------
MANUFACTURED HOUSING AND
RECREATIONAL VEHICLES -- 0.2%
70,000 Champion Enterprises Inc.+ ..................... 768,600
50,000 Fleetwood Enterprises Inc.+ .................... 427,500
31,000 Huttig Building Products Inc.+ ................. 166,780
7,000 Martin Marietta Materials Inc. ................. 934,850
10,000 Nobility Homes Inc. ............................ 190,000
20,000 Skyline Corp. .................................. 601,600
--------------
3,089,330
--------------
REAL ESTATE INVESTMENT TRUSTS -- 0.1%
2,000 Camden Property Trust .......................... 128,500
2,187 Prosperity REIT ................................ 464
24,984 Rayonier Inc. .................................. 1,200,232
--------------
1,329,196
--------------
TOTAL COMMON STOCKS ............................ 1,960,793,977
--------------
CONVERTIBLE PREFERRED STOCKS -- 0.2%
AEROSPACE -- 0.1%
13,500 Northrop Grumman Corp.,
7.000% Cv. Pfd., Ser. B ..................... 1,950,075
--------------
MARKET
SHARES VALUE
----------- --------------
TELECOMMUNICATIONS -- 0.1%
25,000 Cincinnati Bell Inc.,
6.750% Cv. Pfd., Ser. B ..................... $ 1,137,250
--------------
TOTAL CONVERTIBLE
PREFERRED STOCKS ............................ 3,087,325
--------------
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 ............................ 957,500
--------------
AEROSPACE -- 0.0%
605,000 Kaman Corp., Sub. Deb. Cv.,
6.000%, 03/15/12 ............................ 894,644
--------------
CONSUMER PRODUCTS -- 0.0%
1,000,000 Pillowtex Corp., Sub. Deb. Cv.,
9.000%, 12/15/07 (a) ........................ 0
--------------
TOTAL CONVERTIBLE
CORPORATE BONDS ............................. 1,852,144
--------------
SHARES
-----------
WARRANTS -- 0.0%
ENERGY AND UTILITIES -- 0.0%
12,183 Mirant Corp., Ser. A,
expire 01/03/11+ ............................ 258,889
--------------
PRINCIPAL
AMOUNT
-----------
SHORT-TERM OBLIGATIONS -- 4.4%
REPURCHASE AGREEMENTS -- 4.1%
$51,580,000 Barclays Capital Inc.,
3.900%, dated 09/28/07,
due 10/01/07,
proceeds at maturity,
$51,596,764 (d) ............................. 51,580,000
33,000,000 Daiwa Securities America Inc.,
3.850%, dated 09/28/07,
due 10/01/07,
proceeds at maturity,
$33,010,588 (e) ............................. 33,000,000
--------------
84,580,000
--------------
See accompanying notes to schedule of investments.
10
THE GABELLI EQUITY TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
----------- --------------
SHORT-TERM OBLIGATIONS (CONTINUED)
U.S. TREASURY BILLS -- 0.3%
$ 5,500,000 U.S. Treasury Bills,
3.684% to 4.065%++,
12/27/07 to 03/20/08 (f) .................... $ 5,421,826
--------------
TOTAL SHORT-TERM
OBLIGATIONS ................................. 90,001,826
--------------
TOTAL INVESTMENTS -- 100.0%
(Cost $1,418,283,991) ..................................... $2,055,994,161
==============
---------------
Aggregate book cost ............................... $1,418,283,991
==============
Gross unrealized appreciation ..................... $ 703,533,342
Gross unrealized depreciation ..................... (65,823,172)
--------------
Net unrealized appreciation (depreciation) ........ $ 637,710,170
==============
NUMBER OF EXPIRATION UNREALIZED
CONTRACTS DATE DEPRECIATION
----------- ---------- --------------
FUTURES CONTRACTS -- SHORT POSITION
250 S & P 500 Index Futures ........... 12/20/07 $ (2,512,500)
==============
----------
(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 September 30, 2007,
the market value of fair valued securities amounted to $639,512 or 0.03%
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 September 30,
2007, the market value of the Rule 144A security amounted to $515,397 or
0.03% of total investments.
(c) At September 30, 2007, the Fund held an investment in a restricted
security amounting to $49,276 or 0.00% of total investments, which was
valued under methods approved by the Board as follows:
09/30/07
ACQUISITION ACQUISITION ACQUISITION CARRYING VALUE
SHARES ISSUER DATE COST PER UNIT
----------- ------ ----------- ----------- --------------
4,440,836 Cable & Wireless Jamaica Ltd. ..... 03/29/01 $101,639 $0.0111
(d) Collateralized by $49,285,000 U.S. Treasury Bond, 5.25%, due 11/15/28,
market value $52,611,600.
(e) Collateralized by $10,347,000 and $23,000,000 U.S. Treasury Notes, 4.875%
and 3.375%, due 10/31/08 and 10/15/09, market value $10,631,543 and
$23,028,075, respectively.
(f) At September 30, 2007, $5,500,000 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
% OF
MARKET MARKET
VALUE VALUE
------ --------------
GEOGRAPHIC DIVERSIFICATION
North America ..................................... 76.6% $1,574,024,705
Europe ............................................ 16.3 335,712,241
Latin America ..................................... 3.1 64,409,265
Japan ............................................. 2.7 56,163,182
Asia/Pacific ...................................... 1.2 24,646,160
South Africa ...................................... 0.1 1,038,608
------ --------------
100.0% $2,055,994,161
====== ==============
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.
12
--------------------------------------------------------------------------------
THE GABELLI EQUITY TRUST INC.
AND YOUR PERSONAL PRIVACY
WHO ARE WE?
The Gabelli Equity Trust Inc. (the "Fund") is a closed-end management 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.
--------------------------------------------------------------------------------
[This page intentionally left blank.]
DIRECTORS AND OFFICERS
THE GABELLI EQUITY TRUST INC.
ONE CORPORATE CENTER, RYE, NY 10580-1422
DIRECTORS
Mario J. Gabelli, CFA
CHAIRMAN & CHIEF EXECUTIVE OFFICER,
GAMCO INVESTORS, INC.
Dr. Thomas E. Bratter
PRESIDENT & FOUNDER, JOHN DEWEY ACADEMY
Anthony J. Colavita
ATTORNEY-AT-LAW,
ANTHONY J. COLAVITA, P.C.
James P. Conn
FORMER MANAGING DIRECTOR &
CHIEF INVESTMENT OFFICER,
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.
Frank J. Fahrenkopf, Jr.
PRESIDENT & CHIEF EXECUTIVE OFFICER,
AMERICAN GAMING ASSOCIATION
Arthur V. Ferrara
FORMER CHAIRMAN & CHIEF EXECUTIVE OFFICER,
GUARDIAN LIFE INSURANCE COMPANY OF AMERICA
Anthony R. Pustorino
CERTIFIED PUBLIC ACCOUNTANT,
PROFESSOR EMERITUS, PACE UNIVERSITY
Salvatore J. Zizza
CHAIRMAN, ZIZZA & CO., LTD.
OFFICERS
Bruce N. Alpert
PRESIDENT
Carter W. Austin
VICE PRESIDENT
Peter D. Goldstein
CHIEF COMPLIANCE OFFICER
James E. McKee
SECRETARY
Agnes Mullady
TREASURER
LoAn P. Nguyen
VICE PRESIDENT & OMBUDSMAN
INVESTMENT ADVISER
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
CUSTODIAN
Mellon Trust of New England, N.A.
COUNSEL
Willkie Farr & Gallagher LLP
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: 170,948,248 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
or visiting www.gabelli.com.
--------------------------------------------------------------------------------
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
THIRD QUARTER REPORT
SEPTEMBER 30, 2007
GAB Q3/2007
--------------------------------------------------------------------------------
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 November 29, 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 November 29, 2007
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Agnes Mullady
-------------------------------------------------------
Agnes Mullady,
Principal Financial Officer and Treasurer
Date November 29, 2007
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.