Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. You can obtain more information about the Fund by calling 1-800-GABELLI (1-800-422-3554). Closed-end funds involve risk for investors. Closed-end funds are traded on the secondary market through a stock exchange. A closed-end fund’s investment return and principal value will fluctuate so that an investor’s shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (premium) or below (discount) the
net asset value (NAV) of the fund’s portfolio. The distribution rate on the Series A Preferred Shares is based on the $40 liquidation preference; therefore the 8% distribution rate for the Series A Preferred Shares during the Fund’s first year of operations represents 3.2% of a shareholder’s total Combination investment. Additionally, the Fund might not pay periodic distributions to common shareholders during the Fund’s first year of operations. Payment of distributions is not assured and is made only when declared by the Fund’s Board of Trustees. A portion of any planned distributions may be a return of capital, which may have the effect of increasing the Fund’s leverage ratio. The distributions that include a return of capital should not be considered as dividend yield nor as part of the total return of an investment in the Fund. The Series A Preferred Shares are entitled to a certain level of distributions, which will reduce the assets attributable to the common shares to the extent that investment returns on assets attributable to the Series A Preferred Shares are less than the amount of those distributions. Therefore, there is a significant risk that the common shares will trade at a discount to net asset value once. The risk of loss due to this discount may be greater for investors expecting to sell their common shares (or a Combination) in a relatively short period after completion of the public offering. The Series A Preferred Shares and the common shares are designed primarily for long term investors, and investors should not purchase Series A Preferred Shares or the common shares of the Fund if they intend to sell them shortly after purchase. The total annual expenses of the Fund attributable to the common shares are expected to be 3.12%. However, the solicitation fee for this offering, the cost of distributions on the Series A Preferred Shares, the offering costs and other Fund expenses are paid from assets attributable to the common shares. In the aggregate, these expenses are expected to be 8.45% of common shares assets for the Fund’s first year of operations. The market price for a closed-end fund is based on supply and demand which fluctuates daily based on many factors, such as economic conditions and global events, investor sentiment, and security specific factors. The possibility of a market decline should be considered market risk. There is no assurance that the Fund will achieve its investment objective and you can lose money by investing in a closed-end fund. Past performance does not guarantee future results. Leverage Risk. The use of leverage, which can be described as exposure to changes in price at a ratio greater than the amount of equity invested, through the issuance of preferred shares, magnifies both the favorable and unfavorable effects of price movements in the investments made by the Fund. The Fund’s use of leverage in its investment operations subjects it to substantial risk of loss.