UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

The Gabelli Healthcare & Wellness^Rx Trust

(Exact name of registrant as specified in charter)

One Corporate Center
Rye, New York 10580-1422

(Address of principal executive offices) (Zip code)

Agnes Mullady
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-422-3554

Date of fiscal year end: December 31

Date of reporting period: September 30, 2009

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5
(§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

Item 1. Schedule of Investments.

The Schedule(s) of Investments is attached herewith.

The Gabelli Healthcare & Wellness^Rx Trust

Third Quarter Report
September 30, 2009

To Our Shareholders,

     During the third quarter of 2009, The Gabelli Healthcare & Wellness^Rx Trust’s (the “Fund”) total return was 12.4% on a net asset value (“NAV”) basis compared with a gain of 15.6% for the Standard & Poor’s (“S&P”) 500 Index. The total return for the Fund’s publicly traded shares was 17.0% during the third quarter.

     Enclosed is the investment portfolio as of September 30, 2009.

Comparative Results

(a)		Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are sold, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The S&P 500 Index is an unmanaged indicator of stock market performance. The S&P 500 Health Care Index is an unmanaged indicator of the stock market performance of companies in health care equipment and services, pharmaceuticals, biotechnology, and life sciences. The S&P 500 Consumer Staples Index is an unmanaged indicator of the stock market performance of companies in food and staples retailing, food, beverage and tobacco, and household and personal products. Dividends are considered reinvested. You cannot invest directly in an index.
(b)		Total returns and average annual returns reflect changes in the NAV per share and reinvestment of distributions at NAV on the ex-dividend date and are net of expenses. Since inception return is based on an initial NAV of $8.00.
(c)		Total returns and average annual returns reflect changes in closing market values on the NYSE and reinvestment of distributions. Since inception return is based on an initial offering price of $8.00.
(d)		From June 30, 2007, the date closest to the Fund’s inception for which data is available.

THE GABELLI HEALTHCARE & WELLNESS^Rx TRUST
SCHEDULE OF INVESTMENTS
September 30, 2009 (Unaudited)

						Market
Shares						Value
				COMMON STOCKS — 92.4%
				Beverages — 6.6%
	45,000			Dr. Pepper Snapple Group Inc.†		$	1,293,750
	12,000			Hansen Natural Corp.†			440,880
	46,000			ITO EN Ltd.			851,691
	10,000			PepsiAmericas Inc.			285,600
	15,000			The Coca-Cola Co.			805,500
	10,000			The Pepsi Bottling Group Inc.			364,400
	250,000			Vitasoy International Holdings Ltd.			150,644
							4,192,465
				Biotechnology — 2.3%
	8,000			Biogen Idec Inc.†			404,160
	7,000			Cephalon Inc.†			407,680
	12,000			Crucell NV, ADR†			274,680
	5,000			Gilead Sciences Inc.†			232,900
	452,000			Neose Technologies Inc.			38,872
	5,000			Talecris Biotherapeutics Holdings Corp.†			95,000
							1,453,292
				Chemicals — 0.7%
	12,000			International Flavors & Fragrances Inc.			455,160
				Computer Software and Services — 1.4%
	30,000			Perot Systems Corp., Cl. A†			891,000
				Consumer Services and Supplies — 0.6%
	15,000			Weight Watchers International Inc.			411,600
				Food — 28.8%
	15,000			Cadbury plc, ADR			768,150
	40,000			Campbell Soup Co.			1,304,800
	28,191			Danone			1,698,820
	75,000			Dean Foods Co.†			1,334,250
	50,000			Del Monte Foods Co.			579,000
	13,000			Diamond Foods Inc.			412,360
	25,000			Flowers Foods Inc.			657,250
	20,000			General Mills Inc.			1,287,600
	15,000			H.J. Heinz Co.			596,250
	17,000			Kellogg Co.			836,910
	16,000			Kerry Group plc, Cl. A			456,567
	80,000			Kikkoman Corp.			996,379
	49,400			Lifeway Foods Inc.†			542,906
	13,000			MEIJI Holdings Co. Ltd.†			554,671
	15,000			Morinaga Milk Industry Co. Ltd.			74,862
	40,000			Nestlé SA			1,704,526
	10,000			Parmalat SpA			27,643
	6,000			Rock Field Co. Ltd.			84,821
	100,000			Smart Balance Inc.†			614,000
	41,000			The Hain Celestial Group Inc.†			785,970
	15,000			The J.M. Smucker Co.			795,150
	130,000			Tingyi (Cayman Islands) Holding Corp.			268,385
	11,000			Wimm-Bill-Dann Foods OJSC, ADR†			786,610
	40,000			YAKULT HONSHA Co. Ltd.			1,067,231
							18,235,111
				Food and Staples Retailing — 8.3%
	6,000			Costco Wholesale Corp.			338,760
	44,000			CVS Caremark Corp.			1,572,560
	25,000			Safeway Inc.			493,000
	15,000			SUPERVALU Inc.			225,900
	38,000			The Great Atlantic & Pacific Tea Co. Inc.†			338,580
	10,000			The Kroger Co.			206,400
	1,000			Village Super Market Inc., Cl. A			29,470
	10,000			Wal-Mart Stores Inc.			490,900
	23,000			Walgreen Co.			861,810
	23,000			Whole Foods Market Inc.†			701,270
							5,258,650
				Health Care Equipment and Supplies — 16.2%
	10,000			AngioDynamics Inc.†			137,800
	10,000			Baxter International Inc.			570,100
	8,000			Becton, Dickinson and Co.			558,000
	56,000			Boston Scientific Corp.†			593,040
	2,000			CareFusion Corp.†			43,600
	17,000			Covidien plc			735,420
	29,000			Cutera Inc.†			250,850
	30,000			Greatbatch Inc.†			674,100
	9,400			Henry Schein Inc.†			516,154
	15,000			Hologic Inc†			245,100
	19,000			Inverness Medical Innovations Inc.†			735,870
	15,000			Kinetic Concepts Inc.†			554,700
	9,095			MDS Inc.†			74,488
	15,000			Medical Action Industries Inc.†			181,050
	259,400			Medical Nutrition USA Inc.†			492,860
	9,000			Medtronic Inc.			331,200
	42,500			Micrus Endovascular Corp.†			550,375
	550,000			Northstar Neuroscience Inc.†			42,900
	15,000			Orthofix International NV†			440,850
	23,000			St. Jude Medical Inc.†			897,230
	4,000			Stryker Corp.			181,720
	7,500			Thermo Fisher Scientific Inc.†			327,525
	82,000			Vascular Solutions Inc.†			678,140
	8,000			Zimmer Holdings Inc.†			427,600
							10,240,672

See accompanying notes to schedule of investments.

THE GABELLI HEALTHCARE & WELLNESS^Rx TRUST
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2009 (Unaudited)

						Market
Shares						Value
				COMMON STOCKS (Continued)
				Health Care Providers and Services — 13.4%
	14,000			Aetna Inc.		$	389,620
	15,000			Amedisys Inc.†			654,450
	18,000			AmerisourceBergen Corp.			402,840
	4,000			Cardinal Health Inc.			107,200
	3,000			Chemed Corp.			131,670
	320,000			Continucare Corp.†			966,400
	11,000			Express Scripts Inc.†			853,380
	29,091			Genoptix Inc.†			1,011,785
	17,000			Healthways Inc.†			260,440
	10,000			McKesson Corp.			595,500
	9,000			Medco Health Solutions Inc.†			497,790
	280,000			Metropolitan Health Networks Inc.†			610,400
	25,000			Omnicare Inc.			563,000
	12,000			Owens & Minor Inc.			543,000
	14,000			PSS World Medical Inc.†			305,620
	23,200			UnitedHealth Group Inc.			580,928
							8,474,023
				Pharmaceuticals — 14.1%
	12,000			Abbott Laboratories			593,640
	21,000			Inspire Pharmaceuticals Inc.†			109,620
	40,000			Johnson & Johnson			2,435,600
	10,000			King Pharmaceuticals Inc.†			107,700
	15,000			Mead Johnson Nutrition Co., Cl. A			676,650
	40,000			Mylan Inc.†			640,400
	45,000			Pain Therapeutics Inc.†			227,700
	22,500			Schering-Plough Corp.			635,625
	43,000			Sepracor Inc.†			984,700
	13,500			Teva Pharmaceutical Industries Ltd., ADR			682,560
	10,000			Watson Pharmaceuticals Inc.†			366,400
	30,000			Wyeth			1,457,400
							8,917,995
				TOTAL COMMON STOCKS			58,529,968
				WARRANTS — 0.0%
				Health Care Equipment and Supplies — 0.0%
	80,907			Radient Pharmaceutical Corp., expire 03/05/11† (a)(b)			7,297

Principal						Market
Amount						Value
				U.S. GOVERNMENT OBLIGATIONS — 7.6%
$	4,822,000			U.S. Treasury Bills, 0.066% to 0.274%††, 10/01/09 to 02/18/10		$	4,821,288
TOTAL INVESTMENTS — 100.0% (Cost $62,551,722)						$	63,358,553
				Aggregate book cost		$	62,551,722
				Gross unrealized appreciation		$	5,320,742
				Gross unrealized depreciation			(4,513,911	)
				Net unrealized appreciation/depreciation		$	806,831

		% of
		Market				Market
Geographic Diversification		Value				Value
North America			81.7	%		$	51,734,043
Europe			11.3				7,134,976
Japan			5.7				3,629,655
Latin America			1.1				709,235
Asia/Pacific			0.2				150,644
Total Investments			100.0	%		$	63,358,553

See accompanying notes to schedule of investments.

THE GABELLI HEALTHCARE & WELLNESS^Rx TRUST
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)

1. 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 instruments with remaining maturities of sixty days or less that are not credit impaired are valued at amortized cost, 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. Debt instruments having a maturity greater than sixty days 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 security is valued using the closing bid price. Futures contracts are valued at the closing settlement price of the exchange or board of trade on which the applicable contract is traded.

     Securities and assets for which market quotations are not readily available are fair valued as determined by the Board.

     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 Fund’s determinations as to the fair value of investments).

     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 by inputs used to value the Fund’s investments as of September 30, 2009 is as follows:

		Investments in
		Securities
		(Market Value)
Valuation Inputs		Assets
Level 1 — Quoted Prices*		$	58,529,968
Level 2 — Other Significant Observable Inputs**			4,828,585
Total		$	63,358,553

     There were no Level 3 investments held at December 31, 2008 or September 30, 2009.

THE GABELLI HEALTHCARE & WELLNESS^Rx TRUST
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

2. Derivative Financial Instruments. The Fund may engage in various portfolio investment strategies by investing in a number of derivative financial instruments for the purposes of increasing the income of the Fund, hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase, or hedging against a specific transaction with respect to either the currency in which the transaction is denominated or another currency. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or that, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.

     Options. The Fund may purchase or write call or put options on securities or indices for the purpose of increasing the income of the Fund. As a writer of put options, the Fund receives a premium at the outset and then bears the risk of unfavorable changes in the price of the financial instrument underlying the option. The Fund would incur a loss if the price of the underlying financial instrument decreases between the date the option is written and the date on which the option is terminated. The Fund would realize a gain, to the extent of the premium, if the price of the financial instrument increases between those dates. If a written call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether there has been a realized gain or loss. If a written put option is exercised, the premium reduces the cost basis of the security.

     As a purchaser of put options, the Fund pays a premium for the right to sell to the seller of the put option the underlying security at a specified price. The seller of the put has the obligation to purchase the underlying security upon exercise at the exercise price. If the price of the underlying security declines, the Fund would realize a gain upon sale or exercise. If the price of the underlying security increases or stays the same, the Fund would realize a loss upon sale or at the expiration date, but only to the extent of the premium paid.

     In the case of call options, these exercise prices are referred to as “in-the-money”, “at-the-money”, and “out-of-the-money”, respectively. The Fund may write (a) in-the-money call options when the Adviser expects that the price of the underlying security will remain stable or decline during the option period, (b) at-the-money call options when the Adviser expects that the price of the underlying security will remain stable, decline or advance moderately during the option period, and (c) out-of-the-money call options when the Adviser expects that the premiums received from writing the call option will be greater than the appreciation in the price of the underlying security above the exercise price. By writing a call option, the Fund limits its opportunity to profit from any increase in the market value of the underlying security above the exercise price of the option. Out-of-the-money, at-the-money, and in-the-money put options (the reverse of call options as to the relation of exercise price to market price) may be utilized in the same market environments that such call options are used in equivalent transactions. At September 30, 2009, the Fund had no investments in options.

THE GABELLI HEALTHCARE & WELLNESS^Rx TRUST
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

     Futures Contracts. The Fund may engage in futures contracts for the purpose of hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase. Upon entering into a futures contract, the Fund is required to deposit with the broker an amount of cash or cash equivalents equal to a certain percentage of the contract amount. This is known as the “initial margin.” Subsequent payments (“variation margin”) are made or received by the Fund each day, depending on the daily fluctuations in the value of the contract, which are included in unrealized appreciation/depreciation on investments and futures contracts. The Fund recognizes a realized gain or loss when the contract is closed.

     There are several risks in connection with the use of futures contracts as a hedging instrument. The change in value of futures contracts primarily corresponds with the value of their underlying instruments, which may not correlate with the change in value of the hedged investments. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market. At September 30, 2009, there were no open futures contracts.

     Forward Foreign Exchange Contracts. The Fund may engage in forward foreign exchange contracts for the purpose of hedging a specific transaction with respect to either the currency in which the transaction is denominated or another currency as deemed appropriate by the Adviser. Forward foreign exchange contracts are valued at the forward rate and are marked-to-market daily. The change in market value is included in unrealized appreciation/depreciation on investments and foreign currency translations. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

     The use of forward foreign exchange contracts does not eliminate fluctuations in the underlying prices of the Fund’s portfolio securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign exchange contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency increase. In addition, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts. At September 30, 2009, there were no open forward foreign exchange contracts.

3. Tax Information. At December 31, 2008, the Fund had net capital loss carryforwards for federal income tax purposes of $1,540,875 which are available to reduce future required distributions of net capital gains to shareholders through 2016.

TRUSTEES AND OFFICERS

THE GABELLI HEALTHCARE & WELLNESS^Rx TRUST

One Corporate Center, Rye, NY 10580-1422

Trustees

Mario J. Gabelli, CFA
  Chairman & Chief Executive Officer,
  GAMCO Investors, Inc.

Dr. Thomas E. Bratter
  President & Founder, John Dewey Academy

Anthony J. Colavita
  President,
  Anthony J. Colavita, P.C.

James P. Conn
  Former Managing Director &
  Chief Investment Officer,
  Financial Security Assurance Holdings Ltd.

Vincent D. Enright
  Former Senior Vice President &
  Chief Financial Officer,
  KeySpan Corp.

Robert C. Kolodny, MD
  Physician,
  Principal of KBS Management LLC

Anthonie C. van Ekris
  Chairman, BALMAC International, Inc.

Salvatore J. Zizza
  Chairman, Zizza & Co., Ltd.

Officers

Bruce N. Alpert
  Secretary

Carter W. Austin
  Vice President

Peter D. Goldstein
  Chief Compliance Officer

Agnes Mullady
  President & Treasurer

David I. Schachter
  Vice President

Adam E. Tokar
  Assistant Vice President & Ombudsman

Investment Adviser
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422

Custodian
The Bank of New York Mellon

Counsel
Willkie Farr & Gallagher LLP

Transfer Agent and Registrar
Computershare Trust Company, N.A.

Stock Exchange Listing
		Common
NYSE—Symbol:		GRX
Shares Outstanding:			8,474,459

The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading “Specialized Equity Funds,” in Monday’s The Wall Street Journal. It is also listed in Barron’s Mutual Funds/Closed End Funds section under the heading “Specialized Equity Funds.”

The Net Asset Value per share may be obtained each day by calling (914) 921-5070 or visiting www.gabelli.com.

Item 2. Controls and Procedures.

	(a)		The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
	(b)		There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) The Gabelli Healthcare & Wellness^Rx Trust

By (Signature and Title)*		/s/ Agnes Mullady   Agnes Mullady, Principal Executive Officer and Principal Financial Officer

Date 11/24/09

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*		/s/ Agnes Mullady   Agnes Mullady, Principal Executive Officer and Principal Financial Officer

Date 11/24/09