The
Gabelli Healthcare & WellnessRx Trust
Schedule
of Investments (Continued) — June 30, 2021 (Unaudited)
|
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Market
|
|
Shares
|
|
|
|
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Cost
|
|
|
Value
|
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|
|
|
|
COMMON STOCKS (Continued)
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|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals (Continued)
|
|
|
|
|
|
|
|
|
|
1,365
|
|
|
Aclaris Therapeutics Inc.†
|
|
$
|
31,931
|
|
|
$
|
23,969
|
|
|
101,555
|
|
|
Bausch Health Cos. Inc.†
|
|
|
2,274,974
|
|
|
|
2,977,593
|
|
|
77,138
|
|
|
Bristol-Myers Squibb Co.
|
|
|
3,615,513
|
|
|
|
5,154,361
|
|
|
37,000
|
|
|
Cigna Corp.
|
|
|
5,319,764
|
|
|
|
8,771,590
|
|
|
7,000
|
|
|
Intercept Pharmaceuticals
|
|
|
|
|
|
|
|
|
|
|
|
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Inc.†
|
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184,091
|
|
|
|
139,790
|
|
|
38,287
|
|
|
Johnson & Johnson
|
|
|
4,072,762
|
|
|
|
6,307,400
|
|
|
70,830
|
|
|
Merck & Co. Inc.
|
|
|
3,983,303
|
|
|
|
5,508,449
|
|
|
228
|
|
|
Novavax Inc.†
|
|
|
54,459
|
|
|
|
48,407
|
|
|
2,500
|
|
|
Odonate Therapeutics Inc.†
|
|
|
47,171
|
|
|
|
8,725
|
|
|
5,000
|
|
|
OPKO Health Inc.†
|
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|
22,499
|
|
|
|
20,250
|
|
|
7,083
|
|
|
Organon & Co.†
|
|
|
178,845
|
|
|
|
214,332
|
|
|
10,000
|
|
|
Paratek Pharmaceuticals
|
|
|
|
|
|
|
|
|
|
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|
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Inc.†
|
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|
72,418
|
|
|
|
68,200
|
|
|
95,187
|
|
|
Perrigo Co. plc
|
|
|
4,761,842
|
|
|
|
4,364,324
|
|
|
57,000
|
|
|
Pfizer Inc.
|
|
|
1,216,284
|
|
|
|
2,232,120
|
|
|
505
|
|
|
Reata Pharmaceuticals Inc.,
|
|
|
|
|
|
|
|
|
|
|
|
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Cl.A†
|
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|
60,026
|
|
|
|
71,473
|
|
|
12,000
|
|
|
Roche Holding AG, ADR
|
|
|
250,094
|
|
|
|
563,880
|
|
|
90,415
|
|
|
Takeda Pharmaceutical Co.
|
|
|
|
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|
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|
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Ltd., ADR
|
|
|
1,748,626
|
|
|
|
1,521,684
|
|
|
48,020
|
|
|
Teva Pharmaceutical
|
|
|
|
|
|
|
|
|
|
|
|
|
Industries Ltd., ADR†
|
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|
553,121
|
|
|
|
475,398
|
|
|
585
|
|
|
TG Therapeutics Inc.†
|
|
|
30,554
|
|
|
|
22,692
|
|
|
4,650
|
|
|
Vertex Pharmaceuticals
|
|
|
|
|
|
|
|
|
|
|
|
|
Inc.†
|
|
|
908,578
|
|
|
|
937,580
|
|
|
30,000
|
|
|
Viatris Inc.
|
|
|
457,101
|
|
|
|
428,700
|
|
|
20,000
|
|
|
Zoetis Inc.
|
|
|
935,310
|
|
|
|
3,727,200
|
|
|
|
|
|
|
|
|
34,435,255
|
|
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|
48,993,027
|
|
|
|
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|
Specialty Chemicals — 1.6%
|
|
|
|
|
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|
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33,000
|
|
|
International Flavors &
|
|
|
|
|
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|
|
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|
Fragrances Inc.
|
|
|
3,306,621
|
|
|
|
4,930,200
|
|
|
|
|
|
TOTAL COMMON STOCKS..
|
|
|
165,205,049
|
|
|
|
291,631,858
|
|
|
|
|
|
PREFERRED STOCKS — 0.1%
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Biotechnology — 0.1%
|
|
|
|
|
|
|
|
|
|
5,000
|
|
|
XOMA Corp., Ser.A, 8.625%
|
|
|
123,310
|
|
|
|
133,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXCHANGE TRADED FUNDS — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Biotechnology — 0.0%
|
|
|
|
|
|
|
|
|
|
310
|
|
|
SPDR S&P Biotech ETF
|
|
|
40,674
|
|
|
|
41,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANDATORY CONVERTIBLE SECURITIES(a) — 0.8%
|
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|
|
|
|
|
|
|
|
|
|
Health Care Providers and Services — 0.8%
|
|
|
|
|
|
|
|
|
|
22,500
|
|
|
Avantor Inc., Ser.A,
|
|
|
|
|
|
|
|
|
|
|
|
|
6.250%, 05/15/22
|
|
|
1,207,057
|
|
|
|
2,465,100
|
|
|
|
|
|
|
|
|
|
Market
|
|
Shares
|
|
|
|
|
Cost
|
|
|
Value
|
|
|
|
|
|
RIGHTS — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Biotechnology — 0.0%
|
|
|
|
|
|
|
|
|
|
6,907
|
|
|
Tobira Therapeutics Inc.,
|
|
|
|
|
|
|
|
|
|
|
|
|
CVR†(b)
|
|
$
|
414
|
|
|
$
|
0
|
|
|
|
|
|
Pharmaceuticals — 0.0%
|
|
|
|
|
|
|
|
|
|
3,500
|
|
|
Ipsen SA/Clementia,
|
|
|
|
|
|
|
|
|
|
|
|
|
CVR†(b)
|
|
|
4,725
|
|
|
|
0
|
|
|
|
|
|
TOTAL RIGHTS
|
|
|
5,139
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WARRANTS — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Care Providers and Services — 0.0%
|
|
|
|
|
|
|
|
|
|
420
|
|
|
Option Care Health Inc.,
|
|
|
|
|
|
|
|
|
|
|
|
|
Cl.A, expire 07/27/25†
|
|
|
384
|
|
|
|
853
|
|
|
420
|
|
|
Option Care Health Inc.,
|
|
|
|
|
|
|
|
|
|
|
|
|
Cl.B, expire 07/27/25†
|
|
|
363
|
|
|
|
687
|
|
|
|
|
|
|
|
|
747
|
|
|
|
1,540
|
|
Principal
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
U.S.
GOVERNMENT OBLIGATIONS — 2.2%
|
|
|
|
|
|
|
|
|
$
|
479,000
|
|
U.S.
Cash Management Bill,
|
|
|
|
|
|
|
|
|
|
|
0.041%††,
09/28/21
|
|
|
478,952
|
|
|
|
478,954
|
|
6,230,000
|
|
U.S.
Treasury Bills,
|
|
|
|
|
|
|
|
|
|
|
0.004%
to 0.045%††,
|
|
|
|
|
|
|
|
|
|
|
07/08/21
to 10/28/21
|
|
|
6,229,776
|
|
|
|
6,229,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
U.S. GOVERNMENT
|
|
|
|
|
|
|
|
|
|
|
OBLIGATIONS
|
|
|
6,708,728
|
|
|
|
6,708,559
|
|
TOTAL
INVESTMENTS — 100.0%
|
$
|
173,290,704
|
|
|
|
300,982,431
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Assets and Liabilities (Net)
|
|
|
|
|
|
689,870
|
|
|
|
|
|
|
|
|
|
PREFERRED
SHAREHOLDERS
|
|
|
|
|
|
|
|
(2,000,000 preferred shares outstanding)
|
|
|
|
|
|
(40,000,000
|
)
|
|
|
|
|
|
|
|
|
NET
ASSETS — COMMON SHAREHOLDERS
|
|
|
|
|
|
|
|
(17,226,492 common shares outstanding)
|
|
|
|
|
$
|
261,672,301
|
|
|
|
|
|
|
|
|
|
NET
ASSET VALUE PER COMMON SHARE
|
|
|
|
|
|
|
|
($261,672,301 ÷ 17,226,492 shares outstanding)
|
|
|
|
|
$
|
15.19
|
|
|
(a)
|
Mandatory
convertible securities are required to be converted on the dates listed; they generally
may be converted prior to these dates at the option of the holder.
|
|
(b)
|
Security
is valued using significant unobservable inputs and is classified as Level 3 in the fair
value hierarchy.
|
|
†
|
Non-income
producing security.
|
|
††
|
Represents
annualized yield(s) at date(s) of purchase.
|
ADR
|
American Depositary Receipt
|
CVR
|
Contingent Value Right
|
REIT
|
Real Estate Investment Trust
|
See
accompanying notes to financial statements.
The
Gabelli Healthcare & WellnessRx Trust
Schedule
of Investments (Continued) — June 30, 2021 (Unaudited)
|
|
% of Total
|
|
|
Market
|
|
Geographic Diversification
|
|
Investments
|
|
|
Value
|
|
North America
|
|
|
83.4
|
%
|
|
$
|
250,928,709
|
|
Europe
|
|
|
10.7
|
|
|
|
32,358,158
|
|
Japan
|
|
|
5.2
|
|
|
|
15,517,724
|
|
Asia/Pacific
|
|
|
0.7
|
|
|
|
2,177,840
|
|
|
|
|
|
|
|
|
|
|
Total Investments
|
|
|
100.0
|
%
|
|
$
|
300,982,431
|
|
See
accompanying notes to financial statements.
The
Gabelli Healthcare & WellnessRx Trust
Statement
of Assets and Liabilities
June
30, 2021 (Unaudited)
Assets:
|
|
|
|
Investments, at value (cost $173,290,704)
|
|
$
|
300,982,431
|
|
Foreign currency, at value (cost $2,716)
|
|
|
2,715
|
|
Receivable for investments sold
|
|
|
955,279
|
|
Dividends and interest receivable
|
|
|
413,677
|
|
Deferred offering expense
|
|
|
140,908
|
|
Prepaid expenses
|
|
|
3,605
|
|
Total Assets
|
|
|
302,498,615
|
|
Liabilities:
|
|
|
|
|
Payable to bank
|
|
|
92,205
|
|
Distributions payable
|
|
|
22,222
|
|
Payable for investments purchased
|
|
|
245,957
|
|
Payable for Fund shares repurchased
|
|
|
12,168
|
|
Payable for investment advisory fees
|
|
|
248,059
|
|
Payable for payroll expenses
|
|
|
40,993
|
|
Payable for accounting fees
|
|
|
3,750
|
|
Payable for preferred offering expenses.
|
|
|
8,429
|
|
Series C Cumulative Preferred Shares (4.000%, $20
|
|
|
|
|
liquidation value, $0.001 par value,
|
|
|
|
|
2,000,000 shares authorized, issued, and
|
|
|
|
|
outstanding)
|
|
|
40,000,000
|
|
Other accrued expenses
|
|
|
152,531
|
|
Total Liabilities
|
|
|
40,826,314
|
|
Net Assets Attributable to Common
|
|
|
|
|
Shareholders
|
|
$
|
261,672,301
|
|
Net Assets Attributable to Common Shareholders
|
|
|
|
|
Consist of:
|
|
|
|
|
Paid-in capital
|
|
$
|
127,433,502
|
|
Total distributable earnings
|
|
|
134,238,799
|
|
Net Assets
|
|
$
|
261,672,301
|
|
|
|
|
|
|
Net Asset Value per Common Share:
|
|
|
|
|
($261,672,301 ÷ 17,226,492 shares outstanding
|
|
|
|
|
at $0.001 par value; unlimited number of shares
|
|
|
|
|
authorized)
|
|
$
|
15.19
|
|
Statement
of Operations
For
the Six Months Ended June 30, 2021 (Unaudited)
Investment Income:
|
|
|
|
Dividends (net of foreign withholding taxes of $60,395)
|
|
$
|
1,788,293
|
|
Interest
|
|
|
2,428
|
|
Total Investment Income
|
|
|
1,790,721
|
|
Expenses:
|
|
|
|
|
Investment advisory fees
|
|
|
1,453,487
|
|
Interest expense on preferred shares
|
|
|
800,000
|
|
Shareholder communications expenses
|
|
|
93,948
|
|
Payroll expenses
|
|
|
62,017
|
|
Shareholder services fees
|
|
|
45,789
|
|
Legal and audit fees
|
|
|
36,733
|
|
Trustees’ fees
|
|
|
30,087
|
|
Accounting fees
|
|
|
22,500
|
|
Custodian fees
|
|
|
12,924
|
|
Interest expense
|
|
|
7
|
|
Miscellaneous expenses
|
|
|
39,221
|
|
Total Expenses
|
|
|
2,596,713
|
|
Less:
|
|
|
|
|
Expenses paid indirectly by broker (See Note 3).
|
|
|
(1,520
|
)
|
Net Expenses
|
|
|
2,595,193
|
|
Net Investment Loss
|
|
|
(804,472
|
)
|
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency:
|
|
|
|
|
Net realized gain on investments
|
|
|
12,760,965
|
|
Net realized loss on foreign currency transactions
|
|
|
(390
|
)
|
|
|
|
|
|
Net realized gain on investments and foreign currency transactions
|
|
|
12,760,575
|
|
Net change in unrealized
appreciation/depreciation:
|
|
|
|
|
on investments
|
|
|
16,560,192
|
|
on foreign currency translations
|
|
|
(8,390
|
)
|
|
|
|
|
|
Net change in unrealized appreciation/depreciation on investments and foreign currency translations.
|
|
|
16,551,802
|
|
Net Realized and Unrealized Gain on Investments and Foreign Currency
|
|
|
29,312,377
|
|
Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations
|
|
$
|
28,507,905
|
|
See
accompanying notes to financial statements.
The
Gabelli Healthcare & WellnessRx Trust
Statement
of Changes in Net Assets Attributable to Common Stockholders
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
|
|
June
30, 2021
|
|
|
|
|
Year
Ended
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
December
31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations:
|
|
|
|
|
|
|
|
|
|
|
Net
investment loss
|
|
|
$
|
(804,472
|
)
|
|
|
|
$
|
(45,527
|
)
|
|
Net
realized gain on investments and foreign currency transactions
|
|
|
|
12,760,575
|
|
|
|
|
|
13,039,962
|
|
|
Net
change in unrealized appreciation/depreciation on investments and foreign
|
|
|
|
|
|
|
|
|
|
|
|
|
currency
translations
|
|
|
|
16,551,802
|
|
|
|
|
|
11,187,570
|
|
|
Net
Increase in Net Assets Resulting from Operations
|
|
|
|
28,507,905
|
|
|
|
|
|
24,182,005
|
|
|
Distributions
to Preferred Shareholders
|
|
|
|
—
|
|
|
|
|
|
(2,603,961
|
)
|
|
Net
Increase in Net Assets Attributable to Common Shareholders Resulting from
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations
|
|
|
|
28,507,905
|
|
|
|
|
|
21,578,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Common
Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
earnings
|
|
|
|
(5,176,823
|
)*
|
|
|
|
|
(10,418,876
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Distributions to Common Shareholders
|
|
|
|
(5,176,823
|
)
|
|
|
|
|
(10,418,876
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund Share Transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
decrease from repurchase of common shares.
|
|
|
|
(3,802,006
|
)
|
|
|
|
|
(7,596,055
|
)
|
|
Offering
costs for preferred shares charged to paid-in capital
|
|
|
|
(30,646
|
)
|
|
|
|
|
(128,086
|
)
|
|
Net
Decrease in Net Assets from Fund Share Transactions
|
|
|
|
(3,832,652
|
)
|
|
|
|
|
(7,724,141
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Increase in Net Assets Attributable to Common Shareholders
|
|
|
|
19,498,430
|
|
|
|
|
|
3,435,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets Attributable
to Common Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
of year
|
|
|
|
242,173,871
|
|
|
|
|
|
238,738,844
|
|
|
End
of period
|
|
|
$
|
261,672,301
|
|
|
|
|
$
|
242,173,871
|
|
|
|
|
|
|
*
|
Based
on year to date book income. Amounts are subject to change and recharacterization at
year end.
|
See
accompanying notes to financial statements.
The
Gabelli Healthcare & WellnessRx Trust
Statement
of Cash Flows
For
the Six Months Ended June 30, 2021 (Unaudited)
Net increase in net assets attributable to common shareholders resulting from operations
|
|
$
|
28,507,905
|
|
|
|
|
|
|
Adjustments to Reconcile Net Increase in Net Assets Resulting from Operations to Net Cash from Operating Activities:
|
|
|
|
|
Purchase of long term investment securities
|
|
|
(29,963,184
|
)
|
Proceeds from sales of long term investment securities
|
|
|
35,975,101
|
|
Net sales of short term investment securities
|
|
|
3,632,615
|
|
Net realized gain on investments
|
|
|
(12,760,965
|
)
|
Net change in unrealized appreciation on investments
|
|
|
(16,560,192
|
)
|
Net amortization of discount
|
|
|
(2,428
|
)
|
Decrease in receivable for investments sold
|
|
|
3,748,973
|
|
Increase in dividends and interest receivable
|
|
|
(8,593
|
)
|
Increase in deferred offering expense
|
|
|
(81,091
|
)
|
Decrease in prepaid expenses
|
|
|
3,845
|
|
Decrease in payable for investments purchased
|
|
|
(3,341,399
|
)
|
Decrease in distributions payable
|
|
|
(35,556
|
)
|
Increase in payable for investment advisory fees
|
|
|
6,141
|
|
Decrease in payable for payroll expenses
|
|
|
(11,933
|
)
|
Increase in payable for preferred offering expenses
|
|
|
8,429
|
|
Decrease in other accrued expenses
|
|
|
(115,382
|
)
|
Increase in payable to custodian
|
|
|
92,205
|
|
Net cash provided by operating activities
|
|
|
9,094,491
|
|
|
|
|
|
|
Net decrease in net assets resulting from financing activities:
|
|
|
|
|
Offering costs for preferred shares charged to paid-in capital
|
|
|
(30,646
|
)
|
Distributions to Common Shareholders
|
|
|
(5,176,823
|
)
|
Decrease in payable for Fund shares redeemed
|
|
|
(94,087
|
)
|
Decrease from repurchase of common shares
|
|
|
(3,802,006
|
)
|
Net cash used in financing activities
|
|
|
(9,103,562
|
)
|
Net decrease in cash
|
|
|
(9,071
|
)
|
Cash (including foreign currency):
|
|
|
|
|
Beginning of year
|
|
|
11,786
|
|
End of period
|
|
$
|
2,715
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information and non-cash activities:
|
|
|
|
|
Interest paid on preferred shares
|
|
$
|
835,556
|
|
Interest paid on bank overdrafts
|
|
|
7
|
|
See
accompanying notes to financial statements.
The
Gabelli Healthcare & WellnessRx Trust
Financial
Highlights
Selected
data for a common share of beneficial interest outstanding throughout each period:
|
|
Six
Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30, 2021
|
|
|
Year
Ended December 31,
|
|
|
|
(Unaudited)
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Performance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, beginning of year
|
|
$
|
13.81
|
|
|
$
|
13.10
|
|
|
$
|
10.95
|
|
|
$
|
11.74
|
|
|
$
|
10.86
|
|
|
$
|
11.79
|
|
Net
investment income/(loss)
|
|
|
(0.05
|
)
|
|
|
(0.00
|
)(a)
|
|
|
0.02
|
|
|
|
0.07
|
|
|
|
(0.01
|
)
|
|
|
(0.02
|
)
|
Net
realized and unrealized gain/(loss) on investments and foreign currency transactions
|
|
|
1.70
|
|
|
|
1.38
|
|
|
|
2.87
|
|
|
|
(0.23
|
)
|
|
|
1.61
|
|
|
|
(0.21
|
)
|
Total
from investment operations
|
|
|
1.65
|
|
|
|
1.38
|
|
|
|
2.89
|
|
|
|
(0.16
|
)
|
|
|
1.60
|
|
|
|
(0.23
|
)
|
Distributions
to Preferred Shareholders: (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income
|
|
|
—
|
|
|
|
(0.00
|
)(a)
|
|
|
(0.01
|
)
|
|
|
(0.02
|
)
|
|
|
(0.01
|
)
|
|
|
—
|
|
Net
realized gain
|
|
|
—
|
|
|
|
(0.14
|
)
|
|
|
(0.20
|
)
|
|
|
(0.18
|
)
|
|
|
(0.19
|
)
|
|
|
(0.19
|
)
|
Total
distributions to preferred shareholders
|
|
|
—
|
|
|
|
(0.14
|
)
|
|
|
(0.21
|
)
|
|
|
(0.20
|
)
|
|
|
(0.20
|
)
|
|
|
(0.19
|
)
|
Net
Increase/(Decrease) in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to Common Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resulting
from Operations
|
|
|
1.65
|
|
|
|
1.24
|
|
|
|
2.68
|
|
|
|
(0.36
|
)
|
|
|
1.40
|
|
|
|
(0.42
|
)
|
Distributions
to Common Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income
|
|
|
—
|
|
|
|
(0.01
|
)
|
|
|
(0.02
|
)
|
|
|
(0.05
|
)
|
|
|
(0.00
|
)(a)
|
|
|
—
|
|
Net
realized gain
|
|
|
(0.30
|
)*
|
|
|
(0.57
|
)
|
|
|
(0.53
|
)
|
|
|
(0.47
|
)
|
|
|
(0.51
|
)
|
|
|
(0.52
|
)
|
Return
of capital
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.01
|
)
|
|
|
—
|
|
|
|
(0.01
|
)
|
|
|
—
|
|
Total
distributions to common shareholders
|
|
|
(0.30
|
)
|
|
|
(0.58
|
)
|
|
|
(0.56
|
)
|
|
|
(0.52
|
)
|
|
|
(0.52
|
)
|
|
|
(0.52
|
)
|
Fund
Share Transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
in net asset value from repurchase of common shares
|
|
|
0.03
|
|
|
|
0.06
|
|
|
|
0.03
|
|
|
|
0.09
|
|
|
|
0.00
|
(a)
|
|
|
—
|
|
Offering
costs for preferred shares charged to paid-in capital
|
|
|
(0.00
|
)(a)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Offering
costs and adjustment to offering costs for common shares charged to paid-in capital
|
|
|
—
|
|
|
|
(0.01
|
)
|
|
|
—
|
|
|
|
0.00
|
(a)
|
|
|
—
|
|
|
|
—
|
|
Increase
in net asset value from offering of preferred shares
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
Total
Fund share transactions
|
|
|
0.03
|
|
|
|
0.05
|
|
|
|
0.03
|
|
|
|
0.09
|
|
|
|
0.00
|
(a)
|
|
|
0.01
|
|
Net
Asset Value Attributable to Common Shareholders, End of Period
|
|
$
|
15.19
|
|
|
$
|
13.81
|
|
|
$
|
13.10
|
|
|
$
|
10.95
|
|
|
$
|
11.74
|
|
|
$
|
10.86
|
|
NAV
total return †
|
|
|
12.24
|
%
|
|
|
10.82
|
%
|
|
|
25.22
|
%
|
|
|
(2.65
|
)%
|
|
|
13.02
|
%
|
|
|
(3.63
|
)%
|
Market
value, end of period
|
|
$
|
13.50
|
|
|
$
|
11.95
|
|
|
$
|
11.52
|
|
|
$
|
9.25
|
|
|
$
|
10.33
|
|
|
$
|
9.43
|
|
Investment
total return ††
|
|
|
15.60
|
%
|
|
|
9.94
|
%
|
|
|
31.16
|
%
|
|
|
(5.78
|
)%
|
|
|
15.17
|
%
|
|
|
(3.15
|
)%
|
Ratios
to Average Net Assets and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets including liquidation value of preferred shares, end of period (in 000’s)
|
|
$
|
301,672
|
|
|
$
|
282,174
|
|
|
$
|
305,775
|
|
|
$
|
271,649
|
|
|
$
|
299,680
|
|
|
$
|
282,611
|
|
Net
assets attributable to common shares, end of period (in 000’s)
|
|
$
|
261,672
|
|
|
$
|
242,174
|
|
|
$
|
238,739
|
|
|
$
|
204,613
|
|
|
$
|
232,644
|
|
|
$
|
215,575
|
|
Ratio
of net investment income/(loss) to average net assets attributable to common shares before preferred share distributions
|
|
|
(0.64
|
)%(c)
|
|
|
(0.02
|
)%
|
|
|
0.20
|
%
|
|
|
0.60
|
%
|
|
|
(0.07
|
)%
|
|
|
(0.20
|
)%
|
Ratio
of operating expenses to average net assets attributable to common shares (d)(e)
|
|
|
2.07
|
%(c)
|
|
|
1.60
|
%
|
|
|
1.57
|
%
|
|
|
1.61
|
%
|
|
|
1.65
|
%
|
|
|
1.62
|
%
|
Portfolio
turnover rate
|
|
|
11
|
%
|
|
|
15
|
%
|
|
|
25
|
%
|
|
|
32
|
%
|
|
|
34
|
%
|
|
|
32
|
%
|
See
accompanying notes to financial statements.
The
Gabelli Healthcare & WellnessRx Trust
Financial
Highlights (Continued)
Selected
data for a common share of beneficial interest outstanding throughout each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
June 30, 2021
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|
|
(Unaudited)
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative Preferred Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.760% Series A Preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation value, end of period (in 000’s)
|
|
|
—
|
|
|
|
—
|
|
|
$
|
30,000
|
|
|
$
|
30,000
|
|
|
$
|
30,000
|
|
|
$
|
30,000
|
|
Total shares outstanding (in 000’s)
|
|
|
—
|
|
|
|
—
|
|
|
|
1,200
|
|
|
|
1,200
|
|
|
|
1,200
|
|
|
|
1,200
|
|
Liquidation preference per share
|
|
|
—
|
|
|
|
—
|
|
|
$
|
25.00
|
|
|
$
|
25.00
|
|
|
$
|
25.00
|
|
|
$
|
25.00
|
|
Average market value (f)
|
|
|
—
|
|
|
|
—
|
|
|
$
|
25.86
|
|
|
$
|
25.43
|
|
|
$
|
25.89
|
|
|
$
|
26.12
|
|
Asset coverage per share (g)
|
|
|
—
|
|
|
|
—
|
|
|
$
|
114.03
|
|
|
$
|
101.31
|
|
|
$
|
111.76
|
|
|
$
|
105.40
|
|
5.875% Series B Preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation value, end of period (in 000’s)
|
|
|
—
|
|
|
|
—
|
|
|
$
|
37,036
|
|
|
$
|
37,036
|
|
|
$
|
37,036
|
|
|
$
|
37,036
|
|
Total shares outstanding (in 000’s)
|
|
|
—
|
|
|
|
—
|
|
|
|
1,481
|
|
|
|
1,481
|
|
|
|
1,481
|
|
|
|
1,481
|
|
Liquidation preference per share
|
|
|
—
|
|
|
|
—
|
|
|
$
|
25.00
|
|
|
$
|
25.00
|
|
|
$
|
25.00
|
|
|
$
|
25.00
|
|
Average market value (f)
|
|
|
—
|
|
|
|
—
|
|
|
$
|
26.03
|
|
|
$
|
25.83
|
|
|
$
|
26.67
|
|
|
$
|
26.76
|
|
Asset coverage per share (g)
|
|
|
—
|
|
|
|
—
|
|
|
$
|
114.03
|
|
|
$
|
101.31
|
|
|
$
|
111.76
|
|
|
$
|
105.40
|
|
4.000% Series C Preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation value, end of period (in 000’s)
|
|
$
|
40,000
|
|
|
$
|
40,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total shares outstanding (in 000’s)
|
|
|
2,000
|
|
|
|
2,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Liquidation preference per share
|
|
$
|
20.00
|
|
|
$
|
20.00
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Average market value (f)
|
|
$
|
20.00
|
|
|
$
|
20.00
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Asset coverage per share (g)
|
|
$
|
150.84
|
|
|
$
|
141.08
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Asset Coverage (h)
|
|
|
754
|
%
|
|
|
705
|
%
|
|
|
456
|
%
|
|
|
405
|
%
|
|
|
447
|
%
|
|
|
422
|
%
|
|
†
|
Based
on net asset value per share, adjusted for reinvestment of distributions at the net asset
value per share on ex-dividend dates including the effect of shares issued pursuant to
the rights offerings, assuming full subscription by shareholders. Total return for a
period of less than one year is not annualized.
|
|
††
|
Based
on market value per share, adjusted for reinvestment of distributions at prices determined
under the Fund’s dividend reinvestment plan including the effect of shares issued
pursuant to the rights offerings, assuming full subscription by shareholders. Total return
for a period of less than one year is not annualized.
|
|
*
|
Based on
year to date book income. Amounts are subject to change and recharacterization at year
end.
|
|
(a)
|
Amount
represents less than $0.005 per share.
|
|
(b)
|
Calculated
based on average common shares outstanding on the record dates throughout the periods.
|
|
(d)
|
The
Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For all years presented, there
was no impact on the expense ratios.
|
|
(e)
|
Ratio
of operating expenses to average net assets including liquidation value of preferred shares for the six months ended June 30,
2021 and the years ended December 31, 2020, 2019, 2018, 2017, and 2016 would have been 1.79%, 1.33%, 1.21%, 1.25%, 1.27%, and
1.26%, respectively.
|
|
(f)
|
Based
on weekly prices.
|
|
(g)
|
Asset
coverage per share is calculated by combining all series of preferred shares.
|
|
(h)
|
Asset
coverage is calculated by combining all series of preferred shares.
|
See
accompanying notes to financial statements.
The
Gabelli Healthcare & WellnessRx Trust
Notes
to Financial Statements (Unaudited)
1.
Organization. The Gabelli Healthcare & WellnessRx Trust (the Fund) currently operates as a diversified closed-end management
investment company organized as a Delaware statutory trust on February 20, 2007 and registered under the Investment Company Act
of 1940 as amended (the 1940 Act). Investment operations commenced on June 28, 2007.
The
Fund’s investment objective is long term growth of capital. The Fund will invest at least 80% of its assets, under normal
market conditions, in equity securities and income producing securities of domestic and foreign companies in the healthcare and
wellness industries. As a result, the Fund may be more susceptible to economic, political, and regulatory developments in this
particular sector of the market, positive or negative, and may experience increased volatility to the Fund’s NAV and a magnified
effect in its total return.
2.
Significant Accounting Policies.
As an investment company, the Fund follows the
investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (GAAP) that
may require the use of management estimates and assumptions in the preparation of its financial statements. Actual results could
differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation
of its financial statements.
The
global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations,
regions and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially
impact the value and performance of the Fund, its ability to buy and sell fund investments at appropriate valuations, and its
ability to achieve its investment objectives.
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 Trustees (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 (the Adviser).
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 obligations
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 securities are valued using the closing bid price, 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.
Certain securities are valued principally using dealer quotations. Futures contracts are valued at the closing settlement price
of the exchange or board of trade on which the applicable contract is traded. OTC futures and options on futures for which market
quotations are readily available will be valued by quotations received from a pricing
The
Gabelli Healthcare & WellnessRx Trust
Notes
to Financial Statements (Unaudited) (Continued)
service
or, if no quotations are available from a pricing service, by quotations obtained from one or more dealers in the instrument in
question by the Adviser.
Securities
and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies
and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about
the company; comparisons with the valuation and changes in valuation of similar securities, including a comparison of foreign
securities with the equivalent U.S. dollar value American Depositary Receipt securities at the close of the U.S. exchange; and
evaluation of any other information that could be indicative of the value of the security.
The
inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as
described in the hierarchy below:
|
●
|
Level
1 — quoted prices in active markets for identical securities;
|
|
●
|
Level
2 — other significant observable inputs (including quoted prices for similar securities,
interest rates, prepayment speeds, credit risk, etc.); and
|
|
●
|
Level
3 — significant unobservable inputs (including the Board’s determinations
as to the fair value of investments).
|
A
financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually
and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities
are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments
in securities by inputs used to value the Fund’s investments as of June 30, 2021 is as follows:
|
Valuation Inputs
|
|
|
|
|
|
Level
1
|
|
Level
2 Other Significant
|
|
Level 3 Significant
|
|
Total
Market Value
|
|
|
Quoted
Prices
|
|
Observable Inputs
|
|
Unobservable
Inputs (a)
|
|
at 06/30/21
|
INVESTMENTS
IN SECURITIES:
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
(Market Value):
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stocks:
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals
|
$
|
48,992,402
|
|
$
|
625
|
|
|
—
|
|
$
|
48,993,027
|
Other
Industries (b)
|
|
242,638,831
|
|
|
—
|
|
|
—
|
|
|
242,638,831
|
Total
Common Stocks
|
|
291,631,233
|
|
|
625
|
|
|
—
|
|
|
291,631,858
|
Preferred
Stocks (b)
|
|
133,400
|
|
|
—
|
|
|
—
|
|
|
133,400
|
Exchange
Traded Funds (b)
|
|
41,974
|
|
|
—
|
|
|
—
|
|
|
41,974
|
Mandatory
Convertible Securities (b)
|
|
2,465,100
|
|
|
—
|
|
|
—
|
|
|
2,465,100
|
Rights
(b)
|
|
—
|
|
|
—
|
|
$
|
0
|
|
|
0
|
Warrants
(b)
|
|
—
|
|
|
1,540
|
|
|
—
|
|
|
1,540
|
U.S.
Government Obligations
|
|
—
|
|
|
6,708,559
|
|
|
—
|
|
|
6,708,559
|
TOTAL
INVESTMENTS IN SECURITIES
|
|
|
|
|
|
|
|
|
|
|
|
–
ASSETS
|
$
|
294,271,707
|
|
$
|
6,710,724
|
|
$
|
0
|
|
$
|
300,982,431
|
|
(a)
|
Level
3 securities are valued at last available closing price. The inputs for these securities
are not readily available and are derived based on the judgment of the Adviser according
to procedures approved by the Board of Trustees.
|
|
(b)
|
Please
refer to the Schedule of Investments for the industry classifications of these portfolio
holdings.
|
The
Gabelli Healthcare & WellnessRx Trust
Notes
to Financial Statements (Unaudited) (Continued)
During
the six months ended June 30, 2021, the Fund did not have transfers into or out of Level 3.
Additional
Information to Evaluate Qualitative Information.
General.
The Fund uses recognized
industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities,
and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several
different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities,
and fixed income securities. The data within these feeds are ultimately sourced from major stock exchanges and trading systems
where these securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction
prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from
another pricing service or from a broker/dealer that trades that security or similar securities.
Fair
Valuation. Fair valued
securities may be common or preferred equities, warrants, options, rights, or fixed income obligations. Where appropriate, Level
3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which
current bids are not available, or which are restricted as to transfer. When fair valuing a security, factors to consider include
recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of
valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do
not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The
circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.
The
Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These may include
backtesting the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.
Investments
in Other Investment Companies. The Fund may invest, from time to time, in shares of other investment companies (or entities
that would be considered investment companies but are excluded from the definition pursuant to certain exceptions under the 1940
Act) (the Acquired Funds) in accordance with the 1940 Act and related rules. Shareholders in the Fund would bear the pro rata
portion of the periodic expenses of the Acquired Funds in addition to the Fund’s expenses. For the six months ended June
30, 2021, the Fund’s pro rata portion of the periodic expenses charged by the Acquired Funds was less than one basis point.
Foreign
Currency Translations. The
books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities
are translated into U.S. dollars at current exchange rates. Purchases and sales of investment securities, income, and expenses
are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that
result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation
on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange
rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions,
foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund
and the amounts actually
The
Gabelli Healthcare & WellnessRx Trust
Notes
to Financial Statements (Unaudited) (Continued)
received.
The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date
and subsequent sale trade date is included in realized gain/(loss) on investments.
Foreign
Securities. The Fund may
directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically
associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to
repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments.
Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities
of comparable U.S. issuers.
Foreign
Taxes. The Fund may be
subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The
Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that
exist in the markets in which it invests.
Securities
Transactions and Investment Income. Securities
transactions are accounted for on the trade date with realized gain/(loss) on investments determined by using the identified cost
method. Interest income (including amortization of premium and accretion of discount) is recorded on an accrual basis. Premiums
and discounts on debt securities are amortized using the effective yield to maturity method or amortized to earliest call date,
if applicable. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that
are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.
Custodian
Fee Credits and Interest Expense. When
cash balances are maintained in the custody account, the Fund receives credits which are used to offset custodian fess. The gross
expenses paid under the custody arrangement are included in custodian fees in the Statement of Operations with the corresponding
expense offset, if any, shown as “Custodian fee credits.” When cash balances are overdrawn, the Fund is charged an
overdraft fee of 110% of the 90 day U.S. Treasury Bill rate on outstanding balances. This amount, if any, would be included in
the Statement of Operations.
Distributions
to Stockholders. Distributions to common stockholders are recorded on the ex-dividend date. Distributions to stockholders
are based on income and capital gains as determined in accordance with federal income tax regulations, which may differ from income
and capital gains as determined under GAAP. These differences are primarily due to differing treatments of income and gains on
various investment securities and foreign currency transactions held by the Fund, timing differences, and differing characterizations
of distributions made by the Fund. Distributions from net investment income for federal income tax purposes include net realized
gains on foreign currency transactions. These book/tax differences are either temporary or permanent in nature. To the extent
these differences are permanent, adjustments are made to the appropriate capital accounts in the period when the differences arise.
These reclassifications have no impact on the NAV of the Fund.
Distributions
to shareholders of the Fund’s 4.00% Series C Cumulative Preferred Shares (Series C Preferred) are recorded on a daily basis
and are determined as described in Note 5.
The
Fund declares and pays quarterly distributions from net investment income, capital gains, and paid-in capital. The actual source
of the distribution is determined after the end of the year. Distributions during the year may be made in excess of required distributions.
To the extent such distributions are made from current earnings
The
Gabelli Healthcare & WellnessRx Trust
Notes
to Financial Statements (Unaudited) (Continued)
and
profits, they are considered ordinary income or long term capital gains. Distributions sourced from paid-in capital should not
be considered as dividend yield or the total return from an investment in the Fund. The Board will continue to monitor the Fund’s
distribution level, taking into consideration the Fund’s NAV and the financial market environment. The Fund’s distribution
policy is subject to modification by the Board at any time.
The
tax character of distributions paid during the year ended December 31, 2020 was as follows:
|
|
Common
|
|
|
Preferred
|
|
Distributions paid from:
|
|
|
|
|
|
|
|
|
Ordinary income (inclusive of short term capital gains)
|
|
$
|
92,540
|
|
|
$
|
23,128
|
|
Net long term capital gains
|
|
|
10,326,336
|
|
|
|
2,580,833
|
|
Total distributions paid
|
|
$
|
10,418,876
|
|
|
$
|
2,603,961
|
|
Provision
for Income Taxes. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the
Internal Revenue Code of 1986, as amended (the Code). It is the policy of the Fund to comply with the requirements of the Code
applicable to regulated investment companies and to distribute substantially all of its net investment company taxable income
and net capital gains. Therefore, no provision for federal income taxes is required.
The
following summarizes the tax cost of investments and the related net unrealized appreciation at June
30, 2021:
|
|
|
Gross
|
|
Gross
|
|
|
|
|
|
Unrealized
|
|
Unrealized
|
|
Net
Unrealized
|
|
Cost
|
|
Appreciation
|
|
Depreciation
|
|
Appreciation
|
Investments
|
$173,874,051
|
|
$131,072,428
|
|
$(3,964,048)
|
|
$127,108,380
|
The
Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns
to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority.
Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if
the tax positions were deemed not to meet the more-likely-than-not threshold. For the six months ended June 30, 2021, the Fund
did not incur any income tax, interest, or penalties. As of June 30, 2021, the Adviser has reviewed all open tax years and concluded
that there was no impact to the Fund’s net assets or results of operations. The Fund’s federal and state tax returns
for the prior three fiscal years remain open, subject to examination. On an ongoing basis, the Adviser will monitor the Fund’s
tax positions to determine if adjustments to this conclusion are necessary.
3.
Investment Advisory Agreement and Other Transactions. The Fund has entered into an investment advisory agreement (the Advisory
Agreement) with the Adviser which provides that the Fund will pay the Adviser a fee, computed weekly and paid monthly, equal on
an annual basis to 1.00% of the value of the Fund’s average weekly net assets including the liquidation value of preferred
shares. In accordance with the Advisory Agreement, the Adviser provides a continuous investment program for the Fund’s portfolio
and oversees the administration of all aspects of the Fund’s business and affairs.
During
the six months ended June 30, 2021, the Fund paid $1,154 in brokerage commissions on security trades to G.research, LLC, an affiliate
of the Adviser.
The
Gabelli Healthcare & WellnessRx Trust
Notes
to Financial Statements (Unaudited) (Continued)
During
the six months ended June 30, 2021, the Fund received credits from a designated broker who agreed to pay certain Fund operating
expenses. The amount of such expenses paid through this directed brokerage arrangement during this period was $1,520.
The
cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement between the Fund and the
Adviser. Under the sub-administration agreement with Bank of New York Mellon, the fees paid include the cost of calculating the
Fund’s NAV. The Fund reimburses the Adviser for this service. During the six months ended June 30, 2021, the Fund accrued
$22,500 in accounting fees in the Statement of Operations.
As
per the approval of the Board, the Fund compensates officers of the Fund, who are employed by the Fund and are not employed by
the Adviser (although the officers may receive incentive based variable compensation from affiliates of the Adviser). During the
six months ended June 30, 2021, the Fund accrued $62,017 in payroll expenses in the Statement of Operations.
The
Fund pays retainer and per meeting fees to Trustees not affiliated with the Adviser, plus specified amounts to the Lead Trustee
and Audit Committee Chairman. Trustees are also reimbursed for out of pocket expenses incurred in attending meetings. Trustees
who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the
Fund.
4.
Portfolio Securities. Purchases and sales of securities during the six months ended June 30, 2021, other than short term securities
and U.S. Government obligations, aggregated to $29,976,653 and $35,742,692, respectively. Purchases and sales of U.S. Government
Obligations for the six months ended June 30, 2021, aggregated $24,217,781 and $27,850,396, respectively.
5.
Capital. The Fund is authorized to issue an unlimited number of shares of beneficial interest (par value $0.001). The Board
has authorized the repurchase of its shares on the open market when the shares are trading on the NYSE at a discount of 10% or
more (or such other percentage as the Board may determine from time to time) from the NAV of the shares. During the six months
ended June 30, 2021 and the year ended December 31, 2020 the Fund repurchased and retired 307,539 and 690,429 common shares in
the open market at an investment of $3,802,006 and $7,596,055, respectively, an average discount of approximately 13.38% and 15.00%
from its NAV.
Transactions
in shares of beneficial interest were as follows:
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
June 30, 2021
|
|
|
Year Ended
|
|
|
|
(Unaudited)
|
|
|
December 31, 2020
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease from repurchase of common shares
|
|
|
(307,539
|
)
|
|
$
|
(3,802,006
|
)
|
|
|
(690,429
|
)
|
|
$
|
(7,596,055
|
)
|
The
Fund’s Declaration of Trust, as amended, authorizes the issuance of an unlimited number of shares of $0.001 par value Preferred
Shares. The Preferred Shares are senior to the common shares and result in the financial leveraging of the common shares. Such
leveraging tends to magnify both the risks and opportunities to common shareholders. Dividends on Preferred Shares are cumulative.
The Fund is required by the 1940 Act and
The
Gabelli Healthcare & WellnessRx Trust
Notes
to Financial Statements (Unaudited) (Continued)
by
the Statement of Preferences to meet certain asset coverage tests with respect to the Preferred Shares. If the Fund fails to meet
these requirements and does not correct such failure, the Fund may be required to redeem, in part or in full, the Preferred Shares
at their liquidation preference plus an amount equal to the accumulated and unpaid dividends whether or not declared on such shares
in order to meet these requirements. Additionally, failure to meet the foregoing asset coverage requirements could restrict the
Fund’s ability to pay dividends to common shareholders and could lead to sales of portfolio securities at inopportune times.
The income received on the Fund’s assets may vary in a manner unrelated to the fixed rates, which could have either a beneficial
or detrimental impact on net investment income and gains available to common shareholders.
As
of June 30, 2021 the Fund had an effective shelf registration authorizing the issuance of $200 million in common or preferred
shares.
On
April 9, 2020, the Fund redeemed and retired all of the 1,200,000 shares of the Series A Preferred at the liquidation preference
of $25 per share plus accrued and unpaid dividends.
On
December 18, 2020, the Fund issued 2,000,000 shares of Series C 4.00% Cumulative Preferred Shares receiving $39,871,914 after
the deduction of estimated offering expenses of $128,086. The Series C Preferred has a liquidation value of $20 per share, an
annual dividend rate of 4.00%, and is subject to mandatory redemption by the Fund on December 18, 2024. At June 30, 2021, 2,000,000
shares of Series C Preferred were outstanding and accrued dividends amounted to $22,222.
The
Series C Preferred Shares are puttable during the 30-day period prior to each of December 26, 2022 and December 26, 2023, and
are callable at the Fund’s option at any time commencing on December 18, 2023 and thereafter. On December 18, 2024, the
Fund will redeem all outstanding Series C Preferred at the liquidation preference plus any accumulated and unpaid dividends. The
proceeds from the issuance of the Series C Preferred were used to redeem and retire all of the 1,481,443 remaining 5.875% Series
B Preferred Shares on December 24, 2020 at the liquidation value of $25 per share plus accrued and unpaid dividends. On December
24, 2020, the Fund redeemed and retired all of the Series B Preferred at the liquidation value of $25 per share plus accrued and
unpaid dividends.
The
holders of Preferred Shares generally are entitled to one vote per share held on each matter submitted to a vote of shareholders
of the Fund and will vote together with holders of common stock as a single class. The holders of Preferred Shares voting together
as a single class also have the right currently to elect two Trustees and under certain circumstances are entitled to elect a
majority of the Board. In addition, the affirmative vote of a majority of the votes entitled to be cast by holders of all outstanding
shares of the Preferred Shares, voting as a single class, will be required to approve any plan of reorganization adversely affecting
the Preferred Shares, and the approval of two-thirds of each class, voting separately, of the Fund’s outstanding voting
stock must approve the conversion of the Fund from a closed-end to an open-end investment company. The approval of a majority
(as defined in the 1940 Act) of the outstanding Preferred Shares and a majority (as defined in the 1940 Act) of the Fund’s
outstanding voting securities are required to approve certain other actions, including changes in the Fund’s investment
objectives or fundamental investment policies.
6.
Industry Concentration. Because the Fund primarily invests in common stocks and other securities of foreign and domestic companies
in the health care, pharmaceuticals, and food and beverage industries, its
The
Gabelli Healthcare & WellnessRx Trust
Notes
to Financial Statements (Unaudited) (Continued)
portfolio
may be subject to greater risk and market fluctuations than a portfolio of securities representing a broad range of investments.
7.
Indemnifications. The Fund
enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is
unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund’s
existing contracts and expects the risk of loss to be remote.
8.
Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events occurring through the date the
financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in
the financial statements.