Statement of Additional Info - Gabelli

dividends (as defined in the Code) received by the Fund from domestic corporations for the taxable year. In addition, the
dividends-received deduction for a corporate shareholder will be disallowed for shareholders who do not hold their
shares in a Fund for at least 46 days during the 91-day period beginning 45 days before a share in the Fund becomes ex
dividend with respect to such dividend and will be disallowed with respect to an investment in the Fund that is debt
financed. Shareholders will be notified at the end of the year as to the amount of the dividends that qualify for the
dividends-received deduction.
Alternative minimum tax (“AMT”) is imposed in addition to, but only to the extent it exceeds, the regular tax. For
purposes of the corporate AMT, the corporate dividends-received deduction is not itself an item of tax preference that
must be added back to taxable income or is otherwise disallowed in determining a corporation’s alternative minimum tax
income (“AMTI”). However, a corporate shareholder will generally be required to take the full amount of any dividend
received from the Fund into account (without a dividends-received deduction) in determining its adjusted current
earnings, which are used in computing an additional corporate preference item (i.e., 75% of the excess of a corporate
taxpayer’s adjusted current earnings over its AMTI, determined without regard to this item and the AMT net operating
loss deduction) includable in AMTI.
Distributions are taxable to shareholders whether received in cash or reinvested in additional shares of the Fund.
Shareholders receiving a distribution in the form of additional shares will be treated as receiving a distribution in an
amount equal to the amount of the cash dividend that otherwise would have been distributable (where the additional
shares are purchased in the open market), or the fair market value of the shares received, determined as of the
reinvestment date. Shareholders electing to receive distributions in the form of additional shares will have a cost basis for
U.S. federal income tax purposes in each share so received equal to the value of a share on the reinvestment date.
In general, gain or loss recognized by a Fund on the disposition of an asset will be a capital gain or loss. However, gain
recognized on the disposition of a debt obligation purchased by the Fund at a market discount (generally, at a price less
than its principal amount) will be treated as ordinary income to the extent of the portion of the market discount which
accrued during the period of time the Fund held the debt obligation.
Certain of the options, futures contracts, and forward foreign currency exchange contracts in which certain of the Funds
may invest are so-called "section 1256 contracts." With certain exceptions, realized gains or losses on section 1256
contracts generally are considered 60% long term and 40% short term capital gains or losses ("60/40"). Also, section
1256 contracts held by a Fund at the end of each taxable year (and, generally, for purposes of the nondeductible 4%
excise tax, on October 31 of each year) are "marked-to-market" with the result that unrealized gains or losses are treated
as though they were realized and the resulting gain or loss is treated as 60/40 gain or loss. Investors should consult their
own tax advisers in this regard.
Generally, the hedging transactions undertaken by a Fund may result in "straddles" for U.S. federal income tax purposes.
The straddle rules may affect the character of gains (or losses) realized by a Fund. In addition, losses realized by a Fund
on a position that is part of a straddle may be deferred under the straddle rules, rather than being taken into account in
calculating the taxable income for the taxable year in which such losses are realized. Since only a few regulations
implementing the straddle rules have been promulgated, the tax consequences to a Fund of hedging transactions are not
entirely clear. A Fund may make one or more of the elections applicable to straddles available under the Code. If an
election is made, the amount, character, and timing of the recognition of gains or losses from the affected straddle
positions will be determined pursuant to the rules applicable to the election(s) made, which may accelerate the
recognition of gains or losses from the affected straddle positions.
Because application of the straddle rules may affect the character of gains or losses, defer losses, and/or accelerate the
recognition of gains or losses from the affected straddle positions, the amount which must be distributed to shareholders,
and will be taxed to shareholders as ordinary income or long term capital gain, may be increased or decreased
substantially as compared to a Fund that did not engage in such hedging transactions.
Gains or losses attributable to fluctuations in exchange rates resulting from transactions in a foreign currency generally
are treated as ordinary income or ordinary loss. These gains or losses may increase, decrease, or eliminate the amount of
a Fund's investment company taxable income to be distributed to its shareholders as ordinary income.
Investors should carefully consider the tax implications of buying shares prior to a distribution by the Funds. The price
of shares purchased at that time includes the amount of the forthcoming distributions. Distributions by a Fund reduce the
NAV of the Fund’s shares, and if a distribution reduces the NAV below a stockholder’s cost basis, such distribution,
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