The Fund will seek to achieve its objective by investing substantially all, and in any case, no less than 80% of its assets in common stocks and preferred stocks of companies that meet the Fund's guidelines for social responsibility at the time of investment. The Fund may also invest in foreign securities and in securities that are convertible into common stocks. The Fund focuses on investments in companies whose securities appear to be underpriced relative to their private market value ("PMV"). PMV is the value the Fund's investment adviser, Gabelli Funds, LLC, believes informed investors would be willing to pay for a company. There can be no assurance that the Fund will be able to achieve its investment objective.

Socially Responsible Investing. The Adviser employs a social screening overlay process on a pro-active basis at the time of investment to identify companies that meet the Fund's social guidelines. Pursuant to these guidelines, the Fund will not invest in the top 50 defense/weapons contractors or in companies that derive more than 5% of their revenues from the following areas: Tobacco, Alcohol, Gaming, defense/weapons production and companies involved in the manufacture of Abortifacients. In addition, the Fund will employ an environmental screen in order to avoid the worst polluters and identify companies that have a positive overall environmental record. The Adviser's environmental screening process is a proprietary process whereby the Adviser, based on its in-depth knowledge of companies and their lines of business, determines those companies that should be excluded from the Fund's portfolio as discussed above.

The Adviser will monitor each holding of a socially responsible company on a continuous basis to ensure its compliance with the Fund's social guidelines. Securities that no longer meet these guidelines will be sold within a reasonable period of time after the Adviser makes such a determination. Securities may also be sold if the Adviser believes the securities no longer appear to be underpriced relative to their PMV.