Gabelli Utilities Fund Class AAA (GABUX)

Overview

The fund is an investment vehicle that primarily focuses on sectors critical to utility and infrastructure services. It allocates a majority of its net assets, at least 80%, in securities of domestic and foreign companies engaged extensively in the generation or distribution of electricity, gas, and water. Additionally, it invests in firms providing infrastructure operations or telecommunications services. This fund is designed for investors seeking to capitalize on the growth and operational stability within the utility and infrastructure sectors. To diversify its portfolio further and capture global growth opportunities, the fund may invest up to 40% of its total assets in non-U.S. issuers, including those in emerging markets. This strategy aims to provide investors with exposure to companies essential for day-to-day utilities and foundational services on a global scale, all while negotiating the risk-return profile associated with international investment, particularly in potentially high-growth emerging markets.

Products and Services

• Electricity Generation and Distribution

Investments in companies that produce and supply electricity, encompassing a broad range of power generation methods, from traditional fossil fuels to renewable energy sources. This segment serves as a crucial part of the fund's portfolio, given the universal demand for electrical power and the growing emphasis on sustainable energy.

• Gas

The fund invests in entities involved in the extraction, production, and distribution of natural gas. This sector remains a significant component of the global energy mix, providing a cleaner alternative to coal and oil for heating, electricity generation, and fuel for vehicles.

• Water

Investment in water supply and treatment companies highlights the fund's commitment to sustainable utilities. This area includes water utilities that ensure the delivery of fresh water to residential and commercial areas and the treatment of wastewater, an essential service for maintaining public health and environmental standards.

• Infrastructure Operations

Allocations are made to companies involved in the operation, maintenance, and development of infrastructure critical for economic development and societal welfare. This can include transportation networks, hospitals, schools, and energy infrastructure, providing a stable investment due to constant demand.

• Telecommunications Services

Investing in telecommunications firms allows the fund to incorporate companies facilitating digital communication, such as internet service providers, mobile network operators, and satellite communication firms. This sector is instrumental for global connectivity and information exchange, offering growth potential as technology advances.