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, 2010

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, 2010

		Mario J. Gabelli, CFA		Kevin V. Dreyer		Jeffrey J. Jonas, CFA

To Our Shareholders,

     During the third quarter of 2010, The Gabelli Healthcare & Wellness^Rx Trust’s (the “Fund”) total return was 4.2% on a net asset value (“NAV”) basis compared with 8.9% for the Standard & Poor’s (“S&P”) 500 Health Care Index. The total return for the Fund’s publicly traded shares was 3.6% during the third quarter of 2010.

     Enclosed is the investment portfolio as of September 30, 2010.

Comparative Results

Average Annual Returns through September 30, 2010 (a) (Unaudited)

																		Since
						Year to												Inception
		Quarter				Date				1 Year				3 Year				(06/28/07)
Gabelli Healthcare & WellnessRx Trust
NAV Total Return (b)			4.17	%			(0.26	)%			4.45	%			(1.23	)%			(0.57	)%
Investment Total Return (c)			3.56				(4.48	)			7.93				(6.83	)			(6.13	)
S&P 500 Index			11.30				3.91				10.18				(7.15	)			(6.09	)(d)
S&P 500 Health Care Index			8.86				(0.71	)			8.31				(2.84	)			(2.44	)
S&P 500 Consumer Staples Index			10.63				7.54				12.94				2.76				4.00

						Market
Shares						Value
				COMMON STOCKS — 77.2%
				Beverages — 4.8%
	35,000			Dr. Pepper Snapple Group Inc.		$	1,243,200
	12,000			Hansen Natural Corp.†			559,440
	46,000			ITO EN Ltd.			755,462
	15,000			Morinaga Milk Industry Co. Ltd.			64,327
	100,000			Parmalat SpA			256,564
	25,000			The Coca-Cola Co.			1,463,000
	400,000			Vitasoy International Holdings Ltd.			314,995
							4,656,988
				Biotechnology — 2.9%
	10,000			Biogen Idec Inc.†			561,200
	7,000			Cephalon Inc.†			437,080
	42,000			Crucell NV, ADR†			1,396,920
	12,000			Gilead Sciences Inc.†			427,320
							2,822,520
				Computer Software and Services — 0.9%
	18,500			McAfee Inc.†			874,310
				Consumer Services and Supplies — 0.7%
	20,000			Weight Watchers International Inc.			623,800
				Food — 24.8%
	40,000			Campbell Soup Co.			1,430,000
	30,000			Danone			1,794,381
	55,000			Dean Foods Co.†			561,550
	50,000			Del Monte Foods Co.			655,500
	65,000			Dole Food Co. Inc.†			594,750
	30,000			Flowers Foods Inc.			745,200
	45,000			General Mills Inc.			1,644,300
	20,000			H.J. Heinz Co.			947,400
	25,000			Kellogg Co.			1,262,750
	16,000			Kerry Group plc, Cl. A			564,932
	110,000			Kikkoman Corp.			1,213,584
	40,000			Kraft Foods Inc., Cl. A			1,234,400
	65,000			Lifeway Foods Inc.†			683,800
	10,000			MEIJI Holdings Co. Ltd.			470,771
	40,000			Nestlé SA			2,130,972
	6,000			Rock Field Co. Ltd.			94,082
	120,000			Sara Lee Corp.			1,611,600
	180,000			Smart Balance Inc.†			698,400
	62,000			The Hain Celestial Group Inc.†			1,486,760
	22,000			The J.M. Smucker Co.			1,331,660
	110,000			Tingyi (Cayman Islands) Holding Corp.			303,396
	44,000			Wimm-Bill-Dann Foods OJSC, ADR			995,280
	45,000			YAKULT HONSHA Co. Ltd.			1,389,674
							23,845,142
				Food and Staples Retailing — 7.5%
	48,000			CVS Caremark Corp.			1,510,560
	25,000			Ingles Markets Inc., Cl. A			415,250
	40,000			Safeway Inc.			846,400
	50,000			SUPERVALU Inc.			576,500
	25,000			The Great Atlantic & Pacific Tea Co. Inc.†			99,000
	30,000			The Kroger Co.			649,800
	30,000			United Natural Foods Inc.†			994,200
	21,000			Walgreen Co.			703,500
	38,000			Whole Foods Market Inc.†			1,410,180
							7,205,390
				Health Care Equipment and Supplies — 13.0%
	25,000			American Medical Systems Holdings Inc.†			489,500
	12,000			Baxter International Inc.			572,520
	8,000			Becton, Dickinson and Co.			592,800
	45,000			Boston Scientific Corp.†			275,850
	33,000			Covidien plc			1,326,270
	33,000			Cutera Inc.†			267,300
	4,000			Exactech Inc.†			65,280
	30,000			Greatbatch Inc.†			695,700
	9,400			Henry Schein Inc.†			550,652
	35,000			Hologic Inc.†			560,350
	35,000			Immucor Inc.†			694,050
	12,000			IRIS International Inc.†			115,200
	14,000			Kinetic Concepts Inc.†			512,120
	5,000			Medical Action Industries Inc.†			45,250
	12,000			Medtronic Inc.			402,960
	550,000			Northstar Neuroscience Inc.			27,500
	32,500			Orthofix International NV†			1,021,150
	155,504			Osteotech Inc.†			1,004,556
	22,000			Rochester Medical Corp.†			240,020
	28,000			St. Jude Medical Inc.†			1,101,520
	4,000			Stryker Corp.			200,200
	17,000			Thermo Fisher Scientific Inc.†			813,960
	45,000			Vascular Solutions Inc.†			516,600
	8,000			Zimmer Holdings Inc.†			418,640
							12,509,948
				Health Care Providers and Services — 11.6%
	17,000			Aetna Inc.			537,370
	19,000			Alere Inc.†			587,670
	10,000			Amedisys Inc.†			238,000
	25,000			AmerisourceBergen Corp.			766,500
	6,000			Chemed Corp.			341,820
	20,000			CIGNA Corp.			715,600
	310,000			Continucare Corp.†			1,302,000

See accompanying notes to schedule of investments.

THE GABELLI HEALTHCARE & WELLNESS^Rx TRUST
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2010 (Unaudited)

						Market
Shares						Value
				COMMON STOCKS (Continued)
				Health Care Providers and Services (Continued)
	14,000			Express Scripts Inc.†		$	681,800
	38,000			Genoptix Inc.†			539,600
	30,000			Healthways Inc.†			349,200
	18,500			McKesson Corp.			1,142,930
	30,000			Medco Health Solutions Inc.†			1,561,800
	125,000			NightHawk Radiology Holdings Inc.†			797,500
	20,250			Owens & Minor Inc.			576,315
	14,000			PSS World Medical Inc.†			299,320
	19,500			UnitedHealth Group Inc.			684,645
							11,122,070
				Pharmaceuticals — 11.0%
	21,000			Abbott Laboratories			1,097,040
	25,000			Bristol-Myers Squibb Co.			677,750
	50,000			Cypress Bioscience Inc.†			192,500
	25,000			Inspire Pharmaceuticals Inc.†			148,750
	31,000			Johnson & Johnson			1,920,760
	10,000			King Pharmaceuticals Inc.†			99,600
	37,000			Mead Johnson Nutrition Co.			2,105,670
	20,000			Merck & Co. Inc.			736,200
	50,000			Mylan Inc.†			940,500
	7,400			NBTY Inc.†			406,852
	45,000			Pain Therapeutics Inc.†			278,100
	22,000			Pfizer Inc.			377,740
	15,000			Teva Pharmaceutical Industries Ltd., ADR			791,250
	20,000			Watson Pharmaceuticals Inc.†			846,200
							10,618,912
				TOTAL COMMON STOCKS			74,279,080
				WARRANTS — 0.0%
				Health Care Equipment and Supplies — 0.0%
	80,907			Radient Pharmaceutical Corp., expire 03/05/11† (a)			9,744
Principal
Amount
				U.S. GOVERNMENT OBLIGATIONS — 22.8%
$	21,994,000			U.S. Treasury Bills, 0.110% to 0.145%††, 10/21/10 to 11/18/10			21,992,273
TOTAL INVESTMENTS — 100.0% (Cost $92,785,016)						$	96,281,097
				Aggregate tax cost		$	93,543,580
				Gross unrealized appreciation		$	8,057,451
				Gross unrealized depreciation			(5,319,934	)
				Net unrealized appreciation/depreciation		$	2,737,517

		% of
		Market				Market
Geographic Diversification		Value				Value
North America			84.5	%		$	81,397,086
Europe			9.6				9,256,569
Japan			4.2				3,987,901
Latin America			1.4				1,324,546
Asia/Pacific			0.3				314,995
Total Investments			100.0	%		$	96,281,097

See accompanying notes to schedule of investments.

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

     The Fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), which may require the use of management estimates and assumptions. 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.

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. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. 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.

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

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

     A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in 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 September 30, 2010 is as follows:

		Investments in
		Securities
		(Market Value)
Valuation Inputs		Assets
Level 1 – Quoted Prices*		$	74,279,080
Level 2 – Other Significant Observable Inputs*			22,002,017
Total		$	96,281,097

     The Fund did not have significant transfers between Level 1 and Level 2 during the period ended September 30, 2010.

     There were no Level 3 investments held at September 30, 2010 or December 31, 2009.

     In January 2010, the Financial Accounting Standards Board (“FASB”) issued amended guidance to improve disclosure about fair value measurements which requires additional disclosures about transfers between Levels 1 and 2 and separate disclosures about purchases, sales, issuances, and settlements in the reconciliation of fair value measurements using significant unobservable inputs (Level 3). FASB also clarified existing disclosure requirements relating to the levels of disaggregation of fair value measurement and inputs and valuation techniques used to measure fair value. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2009 and interim periods within those fiscal years. Management has adopted the amended guidance and determined that there was no material impact to the Fund’s financial statements except for additional disclosures made in the notes. Disclosures about purchases, sales, issuances, and settlements in the rollforward of activity in Level 3 fair value measurements are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years. Management is currently evaluating the impact of the additional disclosure requirements on the Fund’s financial statements.

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. As a shareholder in the Fund, you would bear the pro rata portion of the periodic expenses of the Acquired Funds in addition to the Fund’s expenses. At September 30, 2010, the Fund did not hold any investments in Acquired Funds.

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 the 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

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

transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually 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 those of 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.

Restricted and Illiquid Securities. The Fund may invest without limit in illiquid securities. Illiquid securities include securities the disposition of which is subject to substantial legal or contractual restrictions. The sale of illiquid securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. The Fund held no restricted or illiquid securities at September 30, 2010.

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.

     The Fund’s derivative contracts held at September 30, 2010, if any, are not accounted for as hedging instruments under GAAP.

     Options. The Fund may purchase or write call or put options on securities or indices for the purpose of achieving additional return or for hedging the value of the Fund’s portfolio. 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

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

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. During the period ended September 30, 2010, the Fund had no investments in options.

     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, and are included in unrealized appreciation/depreciation 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. During the period ended September 30, 2010, the Fund had no investments in 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 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

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

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. During the period ended September 30, 2010, the Fund had no investments in forward foreign exchange contracts.

Tax Information. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended.

     At December 31, 2009, the Fund had net capital loss carryforwards for federal income tax purposes of $3,501,073 which are available to reduce future required distributions of net capital gains to shareholders. $1,540,875 is available through 2016; and $1,960,198 is available through 2017.

AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLANS

Enrollment in the Plan

     It is the policy of The Gabelli Healthcare & Wellness^Rx Trust (the “Fund”) to automatically reinvest dividends. As a “registered” shareholder you automatically become a participant in the Fund’s Automatic Dividend Reinvestment Plan (the “Plan”). The Plan authorizes the Fund to credit common shares to participants upon an income dividend or a capital gains distribution regardless of whether the shares are trading at a discount or a premium to net asset value. All distributions to shareholders whose shares are registered in their own names will be automatically reinvested pursuant to the Plan in additional shares of the Fund. Plan participants may send their shares certificates to Computershare Trust Company, N.A. (“Computershare”) to be held in their dividend reinvestment account. Registered shareholders wishing to receive their distribution in cash must submit this request in writing to:

The Gabelli Healthcare & Wellness^Rx Trust
c/o Computershare
P.O. Box 43010
Providence, RI 02940-3010

     Shareholders requesting this cash election must include the shareholder’s name and address as they appear on the share certificate. Shareholders with additional questions regarding the Plan, or requesting a copy of the terms of the Plan, may contact Computershare at (800) 336-6983.

     If your shares are held in the name of a broker, bank, or nominee, you should contact such institution. If such institution is not participating in the Plan, your account will be credited with a cash dividend. In order to participate in the Plan through such institution, it may be necessary for you to have your shares taken out of “street name” and re-registered in your own name. Once registered in your own name your dividends will be automatically reinvested. Certain brokers participate in the Plan. Shareholders holding shares in “street name” at participating institutions will have dividends automatically reinvested. Shareholders wishing a cash dividend at such institution must contact their broker to make this change.

     The number of common shares distributed to participants in the Plan in lieu of cash dividends is determined in the following manner. Under the Plan, whenever the market price of the Fund’s common shares is equal to or exceeds net asset value at the time shares are valued for purposes of determining the number of shares equivalent to the cash dividends or capital gains distribution, participants are issued common shares valued at the greater of (i) the net asset value as most recently determined or (ii) 95% of the then current market price of the Fund’s common shares. The valuation date is the dividend or distribution payment date or, if that date is not a New York Stock Exchange (“NYSE”) trading day, the next trading day. If the net asset value of the common shares at the time of valuation exceeds the market price of the common shares, participants will receive shares from the Fund valued at market price. If the Fund should declare a dividend or capital gains distribution payable only in cash, Computershare will buy common shares in the open market, or on the NYSE or elsewhere, for the participants’ accounts, except that Computershare will endeavor to terminate purchases in the open market and cause the Fund to issue shares at net asset value if, following the commencement of such purchases, the market value of the common shares exceeds the then current net asset value.

     The automatic reinvestment of dividends and capital gains distributions will not relieve participants of any income tax which may be payable on such distributions. A participant in the Plan will be treated for federal income tax purposes as having received, on a dividend payment date, a dividend or distribution in an amount equal to the cash the participant could have received instead of shares.

Voluntary Cash Purchase Plan

     The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders to increase their investment in the Fund. In order to participate in the Voluntary Cash Purchase Plan, shareholders must have their shares registered in their own name.

     Participants in the Voluntary Cash Purchase Plan have the option of making additional cash payments to Computershare for investments in the Fund’s shares at the then current market price. Shareholders may send an amount from $250 to $10,000. Computershare will use these funds to purchase shares in the open market on or about the 1st and 15th of each month. Computershare will charge each shareholder who participates $0.75, plus a pro rata share of the brokerage commissions. Brokerage charges for such purchases are expected to be less than the usual brokerage charge for such transactions. It is suggested that any voluntary cash payments be sent to Computershare, P.O. Box 43010, Providence, RI 02940–3010 such that Computershare receives such payments approximately 10 days before the 1st and 15th of the month. Funds not received at least five days before the investment date shall be held for investment until the next purchase date. A payment may be withdrawn without charge if notice is received by Computershare at least 48 hours before such payment is to be invested.

     Shareholders wishing to liquidate shares held at Computershare must do so in writing or by telephone. Please submit your request to the above mentioned address or telephone number. Include in your request your name, address, and account number. The cost to liquidate shares is $2.50 per transaction as well as the brokerage commission incurred. Brokerage charges are expected to be less than the usual brokerage charge for such transactions.

     For more information regarding the Dividend Reinvestment Plan and Voluntary Cash Purchase Plan, brochures are available by calling (914) 921-5070 or by writing directly to the Fund.

     The Fund reserves the right to amend or terminate the Plans as applied to any voluntary cash payments made and any dividend or distribution paid subsequent to written notice of the change sent to the members of the Plan at least 90 days before the record date for such dividend or distribution. The Plan also may be amended or terminated by Computershare on at least 90 days written notice to participants in the Plan.

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

						5.76%
		Common				Preferred
NYSE-Symbol:		GRX				GRX PrA
Shares Outstanding:			8,470,459				1,200,000

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.

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 & WellnessRx Trust

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

Date 11/26/10

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 11/26/10