Statement of Additional Info - Gabelli

nevertheless, would be taxable to the shareholder as ordinary income or capital gain as described above, even though,
from an economic or investment standpoint, it may constitute a partial return of capital.
The Funds may invest in stocks of foreign companies that are classified under the Code as passive foreign investment
companies ("PFICs"). In general, a foreign company is classified as a PFIC under the Code if at least one-half of its
assets constitutes investment-type assets or 75% or more of its gross income is investment-type income. Under the PFIC
rules, distribution of accumulated earnings or gain from the sale of stock of the PFIC (referred to as an "excess
distribution") received with respect to PFIC stock is treated as having been realized ratably over the period during which
the Fund held the PFIC stock.
A Fund itself will be subject to tax on the portion, if any, of the excess distribution that is allocated to the Fund's holding
period in prior taxable years (and an interest factor will be added to the tax, as if the tax had actually been payable in such
prior taxable years) even though the Fund distributes the corresponding income to shareholders. All excess distributions
are taxable as ordinary income.
A Fund may be able to elect alternative tax treatment with respect to the PFIC stock it holds. One election that is
currently available, provided the appropriate information is received from the PFIC, requires a Fund to generally include
in its gross income its share of the earnings of a PFIC on a current basis, regardless of whether any distributions are
received from the PFIC. If this election is made, the special rules, discussed above, relating to the taxation of excess
distributions, would not apply. In addition, other elections may become available that would affect the tax treatment of
PFIC stock held by a Fund. Each Fund's intention to qualify annually as a regulated investment company may limit its
elections with respect to PFIC stock.
Because the application of the PFIC rules may affect, among other things, the character of gains, the amount of gain or
loss, and the timing of the recognition of income and loss with respect to PFIC stock, as well as subject a Fund itself to
tax on certain income from PFIC stock, the amount that must be distributed to shareholders by a Fund that holds PFIC
stock, which 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 invest in PFIC stock. Investors should consult their own tax advisors in
this regard.
Dividends and interest paid by foreign issuers may be subject to withholding and other foreign taxes, which may decrease
the net return on foreign investments as compared to dividends and interest paid by domestic issuers. The Funds do not
expect that they will qualify to elect to pass through to its shareholders the right to take a foreign tax credit for foreign
taxes withheld from dividends and interest payments.
The Funds will be required to report to the Internal Revenue Service all distributions of taxable income and capital gains
as well as gross proceeds from the redemption or exchange of Fund shares, except in the case of exempt shareholders,
which include most corporations. Under the backup withholding provisions, distributions of taxable income and capital
gains and proceeds from the redemption or exchange of the shares of a regulated investment company may be subject to
withholding of U.S. federal income tax at the rate of 28% in the case of non-exempt shareholders who fail to furnish the
Funds with their taxpayer identification numbers and their required certifications regarding their status under the U.S.
federal income tax law. If the withholding provisions are applicable, any such distributions and proceeds, whether taken
in cash or reinvested in additional shares, will be reduced by the amounts required to be withheld. Corporate
shareholders should provide the Funds with their taxpayer identification numbers and should certify their exempt status in
order to avoid possible erroneous application of backup withholding. Backup withholding is not an additional tax and
may be credited to a taxpayer’s overall U.S. federal tax liability if the appropriate documentation is provided.
Sale or Redemption of Shares
Upon the taxable disposition (including a sale or redemption) of shares of a Fund, a shareholder may realize a gain or loss
depending upon its basis in the shares. Such gain or loss will be treated as capital gain or loss if the shares are capital
assets in the shareholder’s hands, and will be long term or short term, generally depending upon the shareholder’s holding
period for the shares. Non-corporate shareholders are currently subject to tax at a maximum rate of 20% on capital gains
resulting from the disposition of shares held for more than twelve months (25% in the case of certain capital gains
distributions from REITs subject to depreciation recapture; zero if the taxpayer is, and would be after accounting for such
gains, subject to the tax brackets below 25% for ordinary income). However, a loss realized by a shareholder on the
disposition of Fund shares with respect to which capital gains dividends have been paid will, to the extent of such capital
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