Summary

• In the first quarter of 2026, the S&P 500 Utilities Index gained 8.3%, significantly outperforming the broader market, with the S&P 500 Index declining 4.3% and the Nasdaq composite falling 7.1%.
• Utilities continue to deliver solid earnings growth, with most companies guiding to 6%–8% EPS CAGR or better, supported by increasing electric demand and accelerating data center development.
• The Gabelli Utilities Fund outlook remains constructive, with prospects for stronger EPS growth, easing macro pressures, and rising infrastructure asset values driving M&A interest.
• On March 2, 2026, AES Corp. agreed to be acquired for $15 per share in an all-cash deal led by Global Infrastructure Partners and EQT Infrastructure.

The Gabelli Utilities Fund is a diversified fund whose investment objectives are long-term growth of capital and income. The Fund invests in companies that provide products, services, or equipment for the generation or distribution of electricity, gas, and water. Additionally, the Fund