UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM N-CSR

              CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
                              INVESTMENT COMPANIES

                  Investment Company Act file number 811-22021

                   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: December 31, 2007
                                            ------------------


Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the  transmission to stockholders of
any report that is required to be transmitted to  stockholders  under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1).  The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.

A registrant  is required to disclose the  information  specified by Form N-CSR,
and the  Commission  will make this  information  public.  A  registrant  is not
required to respond to the  collection  of  information  contained in Form N-CSR
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  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. ss. 3507.





ITEM 1. REPORTS TO STOCKHOLDERS.

The Report to Shareholders is attached herewith.


                                                              [LOGO]
                                                              THE GABELLI
                                                              HEALTHCARE &
                                                              WELLNESS(RX) TRUST

                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST

                                  Annual Report
                               December 31, 2007

TO OUR SHAREHOLDERS,

      The Sarbanes-Oxley Act requires a fund's principal executive and financial
officers  to  certify  the  entire   contents  of  the  semi-annual  and  annual
shareholder  reports in a filing with the Securities and Exchange  Commission on
Form N-CSR. This certification  would cover the portfolio  manager's  commentary
and  subjective  opinions  if they are  attached  to or a part of the  financial
statements. Many of these comments and opinions would be difficult or impossible
to certify.

      Because we do not want our portfolio  managers to eliminate their opinions
and/or  restrict their  commentary to historical  facts, we have separated their
commentary from the financial  statements and investment portfolio and have sent
it to  you  separately.  Both  the  commentary  and  the  financial  statements,
including  the  portfolio  of  investments,  will be available on our website at
www.gabelli.com.

      Enclosed are the audited financial statements and the investment portfolio
as of December 31, 2007.

COMPARATIVE RESULTS
--------------------------------------------------------------------------------

                      RETURNS THROUGH DECEMBER 31, 2007 (a)
                      -------------------------------------

                                                                       Since
                                                                     Inception
                                                           Quarter   (06/28/07)
                                                           -------   ----------
GABELLI HEALTHCARE & WELLNESS(RX) TRUST
   NAV TOTAL RETURN (b) ................................    (0.86)%     1.00%
   INVESTMENT TOTAL RETURN (c) .........................   (11.30)    (10.75)
S&P 500 Index ..........................................    (3.33)     (1.52)(d)
S&P 500 Health Care Index ..............................    (0.03)      0.60
S&P 500 Consumer Staples Index .........................     3.84       8.75

(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 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,  S&P 500 HEALTH  CARE,  AND S&P 500
      CONSUMER  STAPLES  INDICES  ARE  UNMANAGED   INDICATORS  OF  STOCK  MARKET
      PERFORMANCE.  DIVIDENDS  ARE  CONSIDERED  REINVESTED.  YOU  CANNOT  INVEST
      DIRECTLY IN AN INDEX.

(b)   TOTAL RETURNS AND AVERAGE ANNUAL RETURNS  REFLECT CHANGES IN THE NET ASSET
      VALUE ("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 NEW YORK STOCK EXCHANGE 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.

--------------------------------------------------------------------------------

                                Sincerely yours,

                                /s/ Agnes Mullady

                                Agnes Mullady
                                President

February 22, 2008



                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST
                    SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)

The  following  table  presents   portfolio  holdings  as  a  percent  of  total
investments as of December 31, 2007:

U.S. Treasury Bills ..................................................    26.4%
Food .................................................................    22.0%
Health Care Equipment and Supplies ...................................    16.1%
Pharmaceuticals ......................................................    10.4%
Food and Staples Retailing ...........................................     8.6%
Health Care Providers and Services ...................................     7.2%
Beverages ............................................................     5.4%
Biotechnology ........................................................     2.4%
Computer Software and Services .......................................     0.8%
Chemicals ............................................................     0.7%
                                                                         -----
                                                                         100.0%
                                                                         =====

      THE GABELLI  HEALTHCARE  &  WELLNESS(RX)  TRUST (THE  "FUND")  WILL FILE A
COMPLETE  SCHEDULE  OF  PORTFOLIO  HOLDINGS  WITH THE  SECURITIES  AND  EXCHANGE
COMMISSION  (THE "SEC") FOR THE FIRST AND THIRD  QUARTERS OF EACH FISCAL YEAR ON
FORM N-Q, THE LAST OF WHICH WAS FILED FOR THE QUARTER ENDED  SEPTEMBER 30, 2007.
SHAREHOLDERS  MAY OBTAIN THIS INFORMATION AT  WWW.GABELLI.COM  OR BY CALLING THE
FUND AT  800-GABELLI  (800-422-3554).  THE FUND'S FORM N-Q IS  AVAILABLE  ON THE
SEC'S  WEBSITE AT  WWW.SEC.GOV  AND MAY ALSO BE REVIEWED AND COPIED AT THE SEC'S
PUBLIC  REFERENCE  ROOM IN WASHINGTON,  DC.  INFORMATION ON THE OPERATION OF THE
PUBLIC REFERENCE ROOM MAY BE OBTAINED BY CALLING 1-800-SEC-0330.

PROXY VOTING

      The Fund files Form N-PX with its complete  proxy voting record for the 12
months ended June 30th, no later than August 31st of each year. A description of
the Fund's proxy voting  policies,  procedures,  and how the Fund voted  proxies
relating to portfolio  securities is available without charge,  upon request, by
(i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One
Corporate  Center,  Rye, NY 10580-1422;  and (iii) visiting the SEC's website at
www.sec.gov.


                                        2



                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST
                             SCHEDULE OF INVESTMENTS
                                DECEMBER 31, 2007

                                                                      MARKET
   SHARES                                               COST           VALUE
------------                                        ------------   ------------
               COMMON STOCKS -- 73.4%
               BEVERAGES -- 5.4%
      20,000   Cadbury Schweppes
                  plc, ADR ......................   $    976,810   $    987,400
      10,000   Hansen Natural Corp.+ ............        428,307        442,900
      46,000   ITO EN Ltd. ......................      1,076,114        874,994
       7,500   ITO EN Ltd., Preference ..........        172,236        107,215
      10,000   PepsiCo Inc. .....................        671,995        759,000
       3,000   Sapporo Holdings Ltd. ............         18,226         24,169
      10,000   The Coca-Cola Co. ................        533,701        613,700
                                                    ------------   ------------
                                                       3,877,389      3,809,378
                                                    ------------   ------------
               BIOTECHNOLOGY -- 2.4%
         200   Alnylam
                  Pharmaceuticals Inc.+ .........          3,216          5,816
         200   Arena Pharmaceuticals Inc.+ ......          2,222          1,566
      40,000   Array Biopharma Inc.+ ............        456,689        336,800
       8,000   Cephalon Inc.+ ...................        562,578        574,080
       6,500   Crucell NV, ADR+ .................        130,137        107,510
       6,000   Gilead Sciences Inc.+ ............        236,811        276,060
      20,000   Monogram Biosciences Inc.+ .......         32,650         29,000
       4,000   Myriad Genetics Inc.+ ............        191,878        185,680
      20,000   Vanda Pharmaceuticals Inc.+ ......        314,078        137,600
                                                    ------------   ------------
                                                       1,930,259      1,654,112
                                                    ------------   ------------
               CHEMICALS -- 0.7%
      10,000   International Flavors &
                  Fragrances Inc. ...............        485,229        481,300
                                                    ------------   ------------
               COMPUTER SOFTWARE AND SERVICES -- 0.8%
      10,000   Cognos Inc.+ .....................        575,250        575,700
                                                    ------------   ------------
               FOOD -- 22.0%
      35,000   Campbell Soup Co. ................      1,282,812      1,250,550
      52,000   Dean Foods Co. ...................      1,401,670      1,344,720
     120,000   Del Monte Foods Co. ..............      1,337,701      1,135,200
      22,000   Flowers Foods Inc. ...............        463,990        515,020
      20,000   General Mills Inc. ...............      1,136,982      1,140,000
      22,000   Groupe Danone ....................      1,698,163      1,974,940
       2,000   Groupe Danone, ADR ...............         32,442         36,100
      10,000   H.J. Heinz Co. ...................        445,882        466,800
      25,000   Hain Celestial Group Inc.+ .......        742,156        800,000
      10,000   Kellogg Co. ......................        526,790        524,300
      16,000   Kerry Group plc, Cl. A ...........        419,845        513,238
      39,000   Kikkoman Corp. ...................        517,240        536,571
      27,000   Lifeway Foods Inc.+ ..............        308,430        319,410
     100,000   Meiji Seika Kaisha Ltd. ..........        491,785        425,189
      10,000   Morinaga Milk
                  Industry Co. Ltd. .............         34,539         29,271
       3,900   Nestle SA ........................      1,571,277      1,791,282
         200   Nestle SA, ADR ...................         19,094         22,900
       5,000   Parmalat SpA .....................         19,559         19,445
      14,000   Rock Field Co. Ltd. ..............        215,739        202,014
      15,000   Smart Balance Inc.+ ..............        173,392        163,950
      12,000   The J.M. Smucker Co. .............        621,782        617,280
       4,300   Wimm-Bill-Dann Foods
                  OJSC, ADR .....................        407,915        563,472
      40,000   YAKULT HONSHA
                  Co. Ltd. ......................        963,651        925,570
                                                    ------------   ------------
                                                      14,832,836     15,317,222
                                                    ------------   ------------

               FOOD AND STAPLES RETAILING -- 8.6%
       6,000   Costco Wholesale Corp. ...........        347,483        418,560
      31,000   CVS Caremark Corp. ...............      1,129,421      1,232,250
       8,000   SUPERVALU Inc. ...................        287,959        300,160

                                                                      MARKET
   SHARES                                               COST           VALUE
------------                                        ------------   ------------
      40,777   The Great Atlantic &
                  Pacific Tea Co. Inc.+ .........   $  1,251,705   $  1,277,543
         500   Village Super Market Inc.,
                  Cl. A .........................         23,378         25,445
      10,000   Wal-Mart Stores Inc. .............        458,576        475,300
      19,000   Walgreen Co. .....................        745,476        723,520
      38,000   Whole Foods Market Inc. ..........      1,621,995      1,550,400
                                                    ------------   ------------
                                                       5,865,993      6,003,178
                                                    ------------   ------------
               HEALTH CARE EQUIPMENT AND SUPPLIES -- 15.9%
      10,000   Advanced Medical
                  Optics Inc.+ ..................        292,051        245,300
     161,813   AMDL Inc.+ (a) ...................        351,597        624,113
      40,000   AngioDynamics Inc.+ ..............        729,281        761,600
      15,000   Boston Scientific Corp.+ .........        207,830        174,450
       8,000   Covidien Ltd. ....................        328,920        354,320
      17,000   Cutera Inc.+ .....................        344,122        266,900
      68,000   E-Z-Em, Inc.+ ....................      1,395,973      1,409,640
      21,200   ev3 Inc.+ ........................        347,405        269,452
      27,000   Greatbatch Inc.+ .................        677,232        539,730
      12,200   Kinetic Concepts Inc.+ ...........        723,408        653,432
      74,200   Lifecore Biomedical Inc.+ ........      1,068,987      1,072,190
      15,000   Medical Action
                  Industries Inc.+ ..............        270,907        312,750
       9,000   Medtronic Inc. ...................        470,816        452,430
       2,200   Mentor Corp. .....................         90,259         86,020
      25,000   Micrus Endovascular Corp.+ .......        574,532        492,000
       3,000   Orthofix International NV+ .......        129,810        173,910
      10,000   Respironics Inc.+ ................        653,800        654,800
      14,000   St. Jude Medical Inc.+ ...........        581,586        568,960
      30,000   Thoratec Corp.+ ..................        560,717        545,700
      85,000   Vascular Solutions Inc.+ .........        782,390        552,500
      12,900   Zimmer Holdings Inc.+ ............      1,067,775        853,335
                                                    ------------   ------------
                                                      11,649,398     11,063,532
                                                    ------------   ------------
               HEALTH CARE PROVIDERS AND SERVICES -- 7.2%
      12,000   Aetna Inc. .......................        601,586        692,760
      11,000   Amedisys Inc.+ ...................        413,801        533,720
      30,000   American Dental
                  Partners Inc.+ ................        275,274        300,900
       7,000   AmerisourceBergen Corp. ..........        314,391        314,090
      40,000   HLTH Corp.+ ......................        555,404        536,000
      12,000   IMS Health Inc. ..................        324,227        276,480
       1,000   MedAssets Inc.+ ..................         16,000         23,940
      25,000   NightHawk Radiology
                  Holdings Inc.+ ................        513,756        526,250
      20,000   Omnicare Inc. ....................        670,713        456,200
       1,000   Owens & Minor Inc. ...............         35,498         42,430
         200   PSS World Medical Inc.+ ..........          3,722          3,914
       6,000   Sierra Health Services Inc.+ .....        255,240        251,760
      18,200   UnitedHealth Group Inc. ..........        967,558      1,059,240
                                                    ------------   ------------
                                                       4,947,170      5,017,684
                                                    ------------   ------------
               PHARMACEUTICALS -- 10.4%
      11,000   Abbott Laboratories ..............        581,052        617,650
      10,000   Adams Respiratory
                  Therapeutics Inc.+ ............        594,344        597,400
         200   Alpharma Inc., Cl. A+ ............          5,280          4,030
      55,000   Aspreva
                  Pharmaceuticals Corp.+ ........      1,400,325      1,430,000
      12,000   Barr Pharmaceuticals Inc.+........        615,480        637,200
      16,800   Inspire
                  Pharmaceuticals Inc.+ .........         94,204        100,464
      17,000   Johnson & Johnson ................      1,086,585      1,133,900

                 See accompanying notes to financial statements.


                                        3



                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST
                       SCHEDULE OF INVESTMENTS (CONTINUED)
                               DECEMBER 31, 2007

                                                                      MARKET
   SHARES                                               COST           VALUE
------------                                        ------------   ------------
               COMMON STOCKS (CONTINUED)
               PHARMACEUTICALS (CONTINUED)
      20,000   K-V Pharmaceutical Co.,
                  Cl. A+ ........................   $    546,631   $    570,800
      18,000   Matrixx Initiatives Inc.+ ........        336,264        250,380
       5,000   Merck & Co. Inc. .................        250,026        290,550
      37,000   MGI Pharma Inc.+ .................      1,490,795      1,499,610
       2,200   Pain Therapeutics Inc.+ ..........         19,007         23,320
       2,000   Wyeth ............................         92,780         88,380
                                                    ------------   ------------
                                                       7,112,773      7,243,684
                                                    ------------   ------------
               TOTAL
                  COMMON STOCKS .................     51,276,297     51,165,790
                                                    ------------   ------------
               WARRANTS -- 0.2%
               HEALTH CARE EQUIPMENT AND SUPPLIES -- 0.2%
      80,907   AMDL Inc.,
                  expire 03/01/08+ (a) ..........        148,405        120,197
                                                    ------------   ------------
  PRINCIPAL
   AMOUNT
------------
               U.S. GOVERNMENT OBLIGATIONS -- 26.4%
$ 18,589,000   U.S. Treasury Bills,
                  2.869% to 3.988%++,
                  01/03/08 to 03/27/08 ..........     18,454,542     18,451,864
                                                    ------------   ------------
TOTAL INVESTMENTS -- 100.0% .....................   $ 69,879,244     69,737,851
                                                    ============
OTHER ASSETS AND LIABILITIES (NET) .............................     (1,668,592)
                                                                   ------------
NET ASSETS -- COMMON SHARES
   (8,474,459 common shares outstanding) .......................   $ 68,069,259
                                                                   ============
NET ASSET VALUE PER COMMON SHARE
   ($68,069,259 / 8,474,459 shares outstanding) ................   $       8.03
                                                                   ============

----------
(a)   Security fair valued under procedures established by the Board of
      Trustees. The procedures may include reviewing available financial
      information about the company and reviewing the valuation of comparable
      securities and other factors on a regular basis. At December 31, 2007, the
      market value of fair valued securities amounted to $744,310 or 1.07% of
      total investments.

+     Non-income producing security.

++    Represents annualized yield at date of purchase.

ADR   American Depository Receipt

                                                           % OF
                                                          MARKET      MARKET
                                                          VALUE        VALUE
                                                          ------   ------------
GEOGRAPHIC DIVERSIFICATION
North America .........................................     86.1%  $ 60,068,341
Europe ................................................      8.6      6,016,288
Japan .................................................      4.5      3,124,992
Latin America .........................................      0.8        528,230
                                                          ------   ------------
                                                           100.0%  $ 69,737,851
                                                          ======   ============

                 See accompanying notes to financial statements.


                                        4



                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST

                       STATEMENT OF ASSETS AND LIABILITIES
                                DECEMBER 31, 2007

ASSETS:
   Investments, at value (cost $69,879,244) ...................   $  69,737,851
   Foreign currency, at value (cost $5,882) ...................           5,868
   Cash .......................................................             653
   Dividends and interest receivable ..........................          30,696
   Prepaid expense ............................................           2,995
                                                                  -------------
   TOTAL ASSETS ...............................................      69,778,063
                                                                  -------------
LIABILITIES:
   Payable for investments purchased ..........................       1,404,583
   Distributions payable ......................................          40,903
   Payable for investment advisory fees .......................          58,238
   Payable for payroll expenses ...............................          31,976
   Payable for accounting fees ................................          11,250
   Payable for shareholder communications expenses ............         110,785
   Other accrued expenses .....................................          51,069
                                                                  -------------
   TOTAL LIABILITIES ..........................................       1,708,804
                                                                  -------------
   NET ASSETS applicable to 8,474,459
      shares outstanding ......................................   $  68,069,259
                                                                  =============
NET ASSETS CONSIST OF:
   Paid-in capital, at $0.001 par value .......................   $  67,795,672
   Accumulated net investment income ..........................          96,466
   Accumulated net realized gain on investments and foreign
      currency transactions ...................................         318,346
   Net unrealized depreciation on investments .................        (141,393)
   Net unrealized appreciation on foreign currency
      translations ............................................             168
                                                                  -------------
   NET ASSETS .................................................   $  68,069,259
                                                                  =============
NET ASSET VALUE PER COMMON SHARE:
   ($68,069,259 / 8,474,459 shares outstanding:
      unlimited number of shares authorized) ..................   $        8.03
                                                                  =============

                             STATEMENT OF OPERATIONS
                   FOR THE PERIOD ENDED DECEMBER 31, 2007 (a)

INVESTMENT INCOME:
   Dividends (net of foreign taxes of $1,239) .................   $     135,753
   Interest ...................................................         744,035
                                                                  -------------
   TOTAL INVESTMENT INCOME ....................................         879,788
                                                                  -------------
EXPENSES:
   Investment advisory fees ...................................         347,944
   Shareholder communications expenses ........................         114,415
   Payroll expenses ...........................................          53,978
   Legal and audit fees .......................................          42,290
   Shareholder services fees ..................................          39,655
   Trustees' fees .............................................          31,073
   Accounting fees ............................................          22,750
   Custodian fees .............................................          16,301
   Interest expense ...........................................             414
   Miscellaneous expenses .....................................          17,810
                                                                  -------------
   TOTAL EXPENSES .............................................         686,630
   Less: Custodian fee credits ................................            (766)
   NET EXPENSES ...............................................         685,864
                                                                  -------------
   NET INVESTMENT INCOME ......................................         193,924
                                                                  -------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
   INVESTMENTS AND FOREIGN CURRENCY:
   Net realized gain on investments ...........................         644,613
   Net realized loss on foreign currency transactions .........              (2)
                                                                  -------------
   Net realized gain on investments and foreign currency
      transactions ............................................         644,611
                                                                  -------------
   Net unrealized appreciation/depreciation:
      on investments ..........................................        (141,393)
      on foreign currency translations ........................             168
                                                                  -------------
   Net unrealized appreciation/depreciation on investments
      and foreign currency translations .......................        (141,225)
                                                                  -------------
   NET REALIZED AND UNREALIZED GAIN (LOSS)
      ON INVESTMENTS AND FOREIGN CURRENCY .....................         503,386
                                                                  -------------
   NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .......   $     697,310
                                                                  =============

----------
(a)   The Gabelli Healthcare & Wellness(RX) Trust commenced investment
      operations on June 28, 2007.

                 See accompanying notes to financial statements.


                                        5



                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST
                       STATEMENT OF CHANGES IN NET ASSETS



                                                                                          PERIOD ENDED
                                                                                      DECEMBER 31, 2007 (a)
                                                                                      ---------------------
                                                                                       
OPERATIONS:
   Net investment income ..........................................................       $     193,924
   Net realized gain on investments and foreign currency transactions .............             644,611
   Net change in unrealized appreciation/depreciation on investments
      and foreign currency translations ...........................................            (141,225)
                                                                                          -------------
   NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ...........................             697,310
                                                                                          -------------
DISTRIBUTIONS TO COMMON SHARES:
   Net investment income ..........................................................             (97,456)
   Net realized short-term gain on investments and foreign currency transactions ..            (326,267)
                                                                                          -------------
   TOTAL DISTRIBUTIONS TO COMMON SHARES ...........................................            (423,723)
                                                                                          -------------
FUND SHARE TRANSACTIONS:
   Net increase in net assets from common shares issued in offering ...............          67,695,672
                                                                                          -------------
   NET INCREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS ........................          67,695,672
                                                                                          -------------
   NET INCREASE IN NET ASSETS .....................................................          67,969,259

NET ASSETS:
   Beginning of period ............................................................             100,000
                                                                                          -------------
   End of period (including undistributed net investment income of $96,466) .......       $  68,069,259
                                                                                          =============


----------
(a)   The Gabelli Healthcare & Wellness(RX) Trust commenced investment
      operations on June 28, 2007.

                 See accompanying notes to financial statements.


                                        6



                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST
                          NOTES TO FINANCIAL STATEMENTS

1.  ORGANIZATION.  The Gabelli Healthcare & Wellness(RX) Trust (the "Fund") is a
non-diversified closed-end management investment company organized as a Delaware
statutory trust on February 20, 2007 and registered under the Investment Company
Act of 1940 as amended (the "1940 Act"),  whose objective is long-term growth of
capital.  Investment  operations  commenced  on June 28,  2007.  The Fund had no
operations  prior to June 28, 2007,  other than the sale of 12,500 common shares
for $100,000 to The Gabelli Equity Trust Inc. (the "Equity Trust").  On June 28,
2007, the Equity Trust contributed $67,695,672 in cash in exchange for shares of
the Fund,  and on the same date  distributed  such  shares to the  Equity  Trust
holders  of record as of June 21,  2007 at the rate of one share of the Fund for
every twenty shares of the Equity Trust common stock.

      Under normal market  conditions,  the Fund will invest at least 80% of its
assets in equity  securities  and income  producing  securities  of domestic and
foreign companies in the healthcare and wellness industries.

2. SIGNIFICANT  ACCOUNTING POLICIES.  The preparation of financial statements in
accordance with United States ("U.S.") generally accepted accounting  principles
requires  management to make estimates and assumptions  that affect the reported
amounts and disclosures in the financial statements. 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 60 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 60 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.   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  to the  valuation  and changes in valuation of similar  securities,
including a comparison of foreign securities to 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.

      In September 2006, the Financial  Accounting  Standards Board (the "FASB")
issued  Statement of Financial  Accounting  Standards  ("SFAS")  157, Fair Value
Measurements,  which  clarifies  the  definition  of  fair  value  and  requires
companies  to expand  their  disclosure  about the use of fair  value to measure
assets and  liabilities  in interim  and annual  periods  subsequent  to initial
recognition.  Adoption of SFAS 157  requires  the use of the price that would be
received  to sell  an  asset  or paid to  transfer  a  liability  in an  orderly
transaction  between market  participants at the  measurement  date. SFAS 157 is
effective  for  financial  statements  issued for fiscal years  beginning  after
November 15, 2007, and interim  periods within those fiscal years. At this time,
management is in the process of reviewing the  requirements  of SFAS 157 against
its current valuation policies to determine future applicability.

      REPURCHASE AGREEMENTS.  The Fund may enter into repurchase agreements with
primary  government  securities dealers recognized by the Federal Reserve Board,
with  member  banks of the  Federal  Reserve  System,  or with other  brokers or
dealers that meet credit  guidelines  established by the Adviser and reviewed by
the Board.  Under the terms of a typical  repurchase  agreement,  the Fund takes
possession  of an  underlying  debt  obligation  subject to an obligation of the
seller to repurchase,  and the Fund to resell,  the obligation at an agreed-upon
price and time, thereby  determining the yield during the Fund's holding period.
The Fund will always receive and maintain  securities as collateral whose market
value, including accrued interest,  will be at least equal to 102% of the dollar
amount  invested by the Fund in each  agreement.  The Fund will make payment for
such  securities  only upon  physical  delivery  or upon  evidence of book entry
transfer of the collateral to the account of the  custodian.  To the extent that
any repurchase transaction exceeds one business day, the value of the collateral
is marked-to-market on a daily basis to maintain the adequacy of the


                                        7



                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

collateral.  If the seller defaults and the value of the collateral  declines or
if  bankruptcy  proceedings  are  commenced  with  respect  to the seller of the
security,  realization  of the collateral by the Fund may be delayed or limited.
At December 31, 2007, there were no open repurchase agreements.

      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. For the period ended December 31, 2007, the Fund's pro rata
portion of the periodic expenses charged by the Acquired Funds was less than one
basis point.

      OPTIONS.  The Fund may purchase or write call or put options on securities
or  indices.  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 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 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  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 December 31, 2007, 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,     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 December 31, 2007 there were no open
futures contracts.

      FORWARD FOREIGN EXCHANGE CONTRACTS. The Fund may engage in forward foreign
exchange contracts for 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 December  31,  2007,  there were no open  forward
foreign exchange contracts in the Fund.


                                        8



                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

      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  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 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 ability 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.

      CONCENTRATION  RISKS.  The Fund will invest a  significant  portion of its
assets in companies in the healthcare and wellness industries.  As a result, the
Fund may be more susceptible to economic, political, and regulatory developments
in  this  particular  sector  of the  market,  positive  or  negative,  and  may
experience  increased volatility to the Fund's NAV and a magnified effect in its
total return.

      SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted  for on the  trade  date  with  realized  gain or loss on  investments
determined  by using the  identified  cost method.  Interest  income  (including
amortization  of premium and  accretion  of discount) is recorded on the accrual
basis.  Premiums  and  discounts  on debt  securities  are  amortized  using the
effective  yield  to  maturity  method.  Dividend  income  is  recorded  on  the
ex-dividend date except for certain  dividends which are recorded as soon as the
Fund is informed of the dividend.

      CUSTODIAN  FEE  CREDITS  AND  INTEREST  EXPENSE.  When cash  balances  are
maintained in the custody  account,  the Fund receives credits which are used to
offset custodian fees. The gross expenses paid under the custody arrangement are
included in custodian fees in the Statement of Operations with the corresponding
expense offset, if any, shown as "custodian fee credits." When cash balances are
overdrawn,  the Fund is  charged  an  overdraft  fee equal to 110% of the 90 day
Treasury Bill rate on outstanding balances.  This amount, if any, would be shown
as "interest expense" in the Statement of Operations.

      DISTRIBUTIONS  TO SHAREHOLDERS.  Distributions to common  shareholders are
recorded on the ex-dividend  date.  Distributions  to shareholders  are based on
income and capital gains as determined  in  accordance  with federal  income tax
regulations,  which may differ from income and capital gains as determined under
U.S. generally accepted accounting  principles.  These differences are primarily
due to differing treatments of income and gains on various investment securities
and foreign currency  transactions  held by the Fund,  timing  differences,  and
differing  characterizations  of distributions  made by the Fund.  Distributions
from net  investment  income  include  net  realized  gains on foreign  currency
transactions.  These book/tax  differences are either  temporary or permanent in
nature. To the extent these  differences are permanent,  adjustments are made to
the appropriate capital accounts in the period when the differences arise. These
reclassifications  have no impact on the NAV of the Fund.  For the period  ended
December  31,  2007,  reclassifications  were made to decrease  accumulated  net
investment  income  by  $2  and  increase   accumulated  net  realized  gain  on
investments and foreign currency transactions by $2.


                                        9



                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

      The tax character of  distributions  paid during the period ended December
31, 2007 was as follows:

          DISTRIBUTIONS PAID FROM:
          Ordinary income
             (inclusive of short-term capital gains) ......   $ 423,723
                                                              ---------
          Total distributions paid. .......................   $ 423,723
                                                             =========

      PROVISION FOR INCOME TAXES. The Fund intends to elect to be treated and to
qualify as a regulated  investment  company  under  Subchapter M of the Internal
Revenue Code of 1986, as amended (the  "Code").  It is the policy of the Fund to
comply with the  requirements  of the Code  applicable  to regulated  investment
companies  and to distribute  substantially  all of its net  investment  company
taxable  income and net capital  gains.  Therefore,  no  provisions  for federal
income taxes are required.

      At December  31,  2007,  the  difference  between book basis and tax basis
unrealized  depreciation was primarily due to deferral of losses from wash sales
for tax purposes.

      As of December 31, 2007, the components of accumulated  earnings  (losses)
on a tax basis were as follows:

          Undistributed ordinary income
             (inclusive of short-term capital gain) .......   $ 423,078
          Net unrealized depreciation on investments and
              foreign currency transactions ...............    (149,491)
                                                              ---------
          Total ...........................................   $ 273,587
                                                              =========

      The  following  summarizes  the tax cost of  investments  and the  related
unrealized appreciation (depreciation) at December 31, 2007:



                                                       GROSS           GROSS
                                                     UNREALIZED      UNREALIZED     NET UNREALIZED
                                        COST        APPRECIATION    DEPRECIATION     DEPRECIATION
                                     -----------   -------------   -------------   ---------------
                                                                          
 Investments ....................    $69,887,510     $2,411,438     $(2,561,097)      $(149,659)
                                                     ==========     ===========       ==========


      FASB  Interpretation  No. 48, "Accounting for Uncertainty in Income Taxes,
an Interpretation of FASB Statement No. 109" (the "Interpretation")  established
a minimum  threshold  for  financial  statement  recognition  of the  benefit of
positions taken in filing tax returns  (including whether the Fund is taxable in
a particular  jurisdiction)  and required certain expanded tax disclosures.  The
Fund has  adopted  the  Interpretation  for the  current  tax year and it had no
impact on the amounts reported in the financial statements.

3. AGREEMENTS AND  TRANSACTIONS  WITH  AFFILIATES.  The Fund has entered into an
investment advisory agreement (the "Advisory  Agreement") with the Adviser which
provides  that the Fund will pay the  Adviser a fee,  computed  weekly  and paid
monthly,  equal on an annual  basis to 1.00% of the value of the Fund's  average
weekly net  assets.  In  accordance  with the  Advisory  Agreement,  the Adviser
provides a continuous  investment  program for the Fund's portfolio and oversees
the administration of all aspects of the Fund's business and affairs.

      During  the  period  ended  December  31,  2007,  the Fund paid  brokerage
commissions on security trades of $30,830 to Gabelli & Company, Inc. ("Gabelli &
Company"), an affiliate of the Adviser.

      The  cost of  calculating  the  Fund's  NAV per  share  is a Fund  expense
pursuant to the Advisory Agreement between the Fund and the Adviser.  During the
period ended December 31, 2007, the Fund paid or accrued  $22,750 to the Adviser
in connection with the cost of computing the Fund's NAV.

      As per the  approval of the Board,  the Fund  compensates  officers of the
Fund, who are employed by the Fund and are not employed by the Adviser (although
the officers may receive  incentive based variable  compensation from affiliates
of the Adviser) and pays its affiliated  portion of the cost of the Fund's Chief
Compliance  Officer.  For the period  ended  December  31,  2007,  the Fund paid
$53,978, which is included in payroll expenses in the Statement of Operations.

      The Fund pays  each  Trustee  who is not  considered  to be an  affiliated
person an annual retainer of $3,000 plus $1,000 for each Board meeting  attended
in person and $500 per telephonic  meeting,  and they are reimbursed for any out
of pocket  expenses  incurred in  attending  meetings.  In  addition,  the Audit
Committee  Chairman  receives  an  annual  fee of  $3,000,  and  the  Nominating
Committee Chairman receives an annual fee of $3,000.  Trustees who are directors
or employees of the Adviser or an affiliated  company receive no compensation or
expense reimbursement from the Fund.

4. PORTFOLIO SECURITIES. Purchases and proceeds from the sales of securities for
the period ended December 31, 2007, other than short-term securities, aggregated
$72,011,995 and $9,369,349, respectively.


                                       10



                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

5. CAPITAL.  The Fund is  authorized  to issue an unlimited  number of shares of
beneficial interest (par value $0.001).  The Board has authorized the repurchase
of its shares on the open  market  when the shares are  trading on the NYSE at a
discount  of 10% or more (or such other  percentage  as the Board may  determine
from time to time) from the NAV of the shares.  During the period ended December
31,  2007,  the Fund did not  repurchase  any of its  common  shares in the open
market.

      Transactions in common shares were as follows:

                                                           PERIOD ENDED
                                                       DECEMBER 31, 2007 (a)
                                                     ------------------------
                                                      SHARES        AMOUNT
                                                     ---------   ------------
    Initial seed capital .........................      12,500   $   100,000
    Additional shares issued immediately prior
       to the spin-off from the Equity Trust .....   8,461,959    67,695,672
                                                     ---------   -----------
    Net increase .................................   8,474,459   $67,795,672
                                                     =========   ===========

----------
(a)   The  Gabelli   Healthcare  &  Wellness(RX)   Trust  commenced   investment
      operations on June 28, 2007.

6. INDEMNIFICATIONS.   The Fund enters into  contracts that contain a variety of
indemnifications.  The Fund's  maximum  exposure  under  these  arrangements  is
unknown.  However, the Fund has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.

7. OTHER MATTERS.  The Adviser  and/or  affiliates  received  subpoenas from the
Attorney General of the State of New York and the SEC requesting  information on
mutual fund share  trading  practices  involving  certain  funds  managed by the
Adviser.  GAMCO  Investors,   Inc.  ("GAMCO"),  the  Adviser's  parent  company,
responded to these  requests for documents and  testimony.  In June 2006,  GAMCO
began discussions with the SEC regarding a possible resolution of their inquiry.
In February  2007,  the Adviser made an offer of  settlement to the staff of the
SEC for  communication  to the Commission for its  consideration to resolve this
matter.  This offer of settlement is subject to agreement regarding the specific
language of the SEC's administrative order and other settlement documents.  On a
separate matter, in September 2005, the Adviser was informed by the staff of the
SEC that the staff may recommend to the Commission that an administrative remedy
and a monetary penalty be sought from the Adviser in connection with the actions
of two of nine closed-end funds managed by the Adviser relating to Section 19(a)
and Rule 19a-1 of the 1940 Act. These provisions require  registered  investment
companies to provide written  statements to shareholders when a dividend is made
from a source other than net investment  income.  While the two closed-end funds
sent annual statements and provided other materials containing this information,
the funds did not send written statements to shareholders with each distribution
in 2002  and  2003.  The  Adviser  believes  that  all of the  funds  are now in
compliance.  The Adviser believes that these matters would have no effect on the
Fund or any material  adverse effect on the Adviser or its ability to manage the
Fund. The staff's notice to the Adviser did not relate to the Fund.


                                       11



                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST
                              FINANCIAL HIGHLIGHTS

SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT THE PERIOD:



                                                                                                           PERIOD ENDED
                                                                                                       DECEMBER 31, 2007 (a)
                                                                                                       ---------------------
                                                                                                           
OPERATING PERFORMANCE:
   Net asset value, beginning of period ............................................................          $  8.00
                                                                                                              -------
   Net investment income ...........................................................................             0.02
   Net realized and unrealized gain on investments and foreign currency transactions ...............             0.06
                                                                                                              -------
   Total from investment operations ................................................................             0.08
                                                                                                              -------
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
   Net investment income. ..........................................................................            (0.01)
   Net realized short-term gain on investments and foreign currency transactions ...................            (0.04)
                                                                                                              -------
   Total distributions to common shareholders ......................................................            (0.05)
                                                                                                              -------
   NET ASSET VALUE, END OF PERIOD ..................................................................          $  8.03
                                                                                                              =======
   Net asset value total return + ..................................................................             1.00%
                                                                                                              =======
   Market value, end of period .....................................................................          $  7.09
                                                                                                              =======
   Total investment return ++ ......................................................................           (10.75)%
                                                                                                              =======
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
   Net assets end of period (in 000's) .............................................................          $68,069
   Ratio of net investment income to average net assets ............................................             0.56%(b)
   Ratio of operating expenses to average net assets ...............................................             1.97%(b)
   Portfolio turnover rate .........................................................................             26.7%


----------
+     Based on net asset value per share at  commencement of operations of $8.00
      per share,  adjusted for  reinvestment of  distributions  at the net asset
      value per share on the  ex-dividend  dates.  Total  return for a period of
      less than one year is not annualized.

++    Based on market  value per share at  initial  offering  price of $8.00 per
      share, adjusted for reinvestment of distributions at prices obtained under
      the Fund's dividend  reinvestment  plan. Total return for a period of less
      than one year is not annualized.

(a)   The  Gabelli   Healthcare  &  Wellness(RX)   Trust  commenced   investment
      operations on June 28, 2007.

(b)   Annualized.

                 See accompanying notes to financial statements.


                                       12



                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST
             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders of
The Gabelli Healthcare & Wellness(RX) Trust:

In our opinion, the accompanying statement of assets and liabilities,  including
the schedule of  investments,  and the related  statements of operations  and of
changes  in net assets  and the  financial  highlights  present  fairly,  in all
material   respects,   the  financial  position  of  The  Gabelli  Healthcare  &
Wellness(RX)  Trust (hereafter  referred to as the "Trust") at December 31, 2007
and the  results  of its  operations,  the  changes  in its net  assets  and the
financial  highlights for the period June 28, 2007  (commencement of operations)
through  December 31, 2007, in conformity with accounting  principles  generally
accepted in the United States of America. The financial statements and financial
highlights   (hereafter   referred  to  as  "financial   statements")   are  the
responsibility of the Trust's  management.  Our  responsibility is to express an
opinion on these financial statements based on our audit. We conducted our audit
of these  financial  statements in  accordance  with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain  reasonable  assurance about whether the
financial  statements  are free of  material  misstatement.  An  audit  includes
examining,  on a test basis,  evidence supporting the amounts and disclosures in
the  financial   statements,   assessing  the  accounting  principles  used  and
significant  estimates made by management,  and evaluating the overall financial
statement  presentation.  We believe that our audit, which included confirmation
of  securities  at December 31, 2007 by  correspondence  with the  custodian and
brokers, provides a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
New York, New York
February 29, 2008


                                       13



                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST
                     ADDITIONAL FUND INFORMATION (UNAUDITED)

      The  business and affairs of the Fund are managed  under the  direction of
the  Fund's  Board of  Trustees.  Information  pertaining  to the  Trustees  and
officers of the Fund is set forth  below.  The Fund's  Statement  of  Additional
Information  includes  additional  information  about the Fund's Trustees and is
available,  without charge, upon request, by calling 800-GABELLI  (800-422-3554)
or by writing to The Gabelli  Healthcare &  Wellness(RX)  Trust at One Corporate
Center, Rye, NY 10580-1422.



                                                  NUMBER OF
                                 TERM OF        FUNDS IN FUND
    NAME, POSITION(S)          OFFICE AND          COMPLEX
        ADDRESS(1)              LENGTH OF        OVERSEEN BY             PRINCIPAL OCCUPATION(S)              OTHER DIRECTORSHIPS
         AND AGE             TIME SERVED(2)        TRUSTEE                DURING PAST FIVE YEARS               HELD BY TRUSTEE(4)
--------------------------   --------------   ----------------   ---------------------------------------   -------------------------
                                                                                               
INTERESTED TRUSTEES(3):

MARIO J. GABELLI              Since 2007***          26          Chairman and Chief Executive Officer of   Director of Morgan Group
Trustee and                                                      GAMCO Investors, Inc. and Chief           Holdings, Inc. (holding
Chief Investment Officer                                         Investment Officer - Value Portfolios     company); Chairman of the
Age: 65                                                          of Gabelli Funds, LLC and GAMCO Asset     Board of LICT Corp.
                                                                 Management Inc.; Director/Trustee or      (multimedia and
                                                                 Chief Investment Officer of other         communication services
                                                                 registered investment companies in the    company)
                                                                 Gabelli/GAMCO Funds complex; Chairman
                                                                 and Chief Executive Officer of GGCP,
                                                                 Inc.

INDEPENDENT TRUSTEES (5):

THOMAS E. BRATTER             Since 2007**            4          Director, President, and Founder of The               --
Trustee                                                          John Dewey Academy (residential college
Age: 68                                                          preparatory therapeutic high school)

ANTHONY J. COLAVITA            Since 2007*           35          Partner in the law firm of                            --
Trustee                                                          Anthony J. Colavita, P.C.
Age: 72

JAMES P. CONN                 Since 2007**           16          Former Managing Director and Chief                    --
Trustee                                                          Investment Officer of Financial
Age: 69                                                          Security Assurance Holdings Ltd.
                                                                 (insurance holding company) (1992-1998)

VINCENT D. ENRIGHT            Since 2007***          15          Former Senior Vice President and Chief                --
Trustee                                                          Financial Officer of KeySpan
Age: 64                                                          Corporation (public utility)
                                                                 (1994-1998)

ROBERT C. KOLODNY, MD          Since 2007*            2          Physician, author, and lecturer (self-                --
Trustee                                                          employed) since 1983; General Partner
Age: 63                                                          of KBS Partnership, KBS II Investment
                                                                 Partnership, KBS III Investment
                                                                 Partnership, KBS IV Limited
                                                                 Partnership, KBS New Dimensions, L.P.,
                                                                 KBS Global Opportunities, L.P. and KBS
                                                                 VII Limited Partnership (private
                                                                 investment partnerships) since 1981;
                                                                 Medical Director and Chairman of the
                                                                 Board of the Behavioral Medicine
                                                                 Institute since 1983

ANTHONIE C. VAN EKRIS         Since 2007***          19          Chairman of BALMAC International, Inc.                --
Trustee                                                          (commodities and futures trading)
Age: 73

SALVATORE J. ZIZZA             Since 2007*           26          Chairman of Zizza & Co., Ltd.             Director of Hollis-Eden
Trustee                                                          (consulting)                              Pharmaceuticals
Age: 62                                                                                                    (biotechnology) and Earl
                                                                                                           Scheib, Inc. (automotive
                                                                                                           services)



                                       14



                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST
               ADDITIONAL FUND INFORMATION (CONTINUED) (UNAUDITED)



                                 TERM OF
    NAME, POSITION(S)          OFFICE AND
        ADDRESS(1)              LENGTH OF                                PRINCIPAL OCCUPATION(S)
         AND AGE             TIME SERVED(2)                               DURING PAST FIVE YEARS
--------------------------   --------------   ------------------------------------------------------------------------------
                                        
OFFICERS:

AGNES MULLADY                  Since 2007     Vice President of Gabelli Funds, LLC since 2007; Officer of all of the
President and Treasurer                       registered investment companies in the Gabelli/GAMCO Funds complex; Senior
Age: 49                                       Vice President of U.S. Trust Company, N.A. and Treasurer and Chief Financial
                                              Officer of Excelsior Funds from 2004 through 2005; Chief Financial Officer of
                                              AMIC Distribution Partners from 2002 through 2004; Controller of Reserve
                                              Management Corporation and Reserve Partners, Inc. and Treasurer of Reserve
                                              Funds from 2000 through 2002

CARTER W. AUSTIN               Since 2007     Vice President of the Gabelli Equity Trust Inc. since 2000, Vice President of
Vice President                                The Gabelli Dividend & Income Trust since 2003, The Gabelli Global Gold,
Age: 41                                       Natural Resources & Income Trust since 2005, The Gabelli Global Deal Fund
                                              since 2006, and the Fund since 2007; Vice President of Gabelli Funds, LLC
                                              since 1996

JAMES E. MCKEE                 Since 2007     Vice President, General Counsel, and Secretary of GAMCO Investors, Inc. since
Secretary                                     1999 and GAMCO Asset Management Inc. since 1993; Secretary of all of the
Age: 44                                       registered investment companies in the Gabelli/GAMCO Funds complex

PETER D. GOLDSTEIN             Since 2007     Director of Regulatory Affairs at GAMCO Investors, Inc. since 2004; Chief
Chief Compliance Officer                      Compliance Officer of all of the registered investment companies in the
Age: 54                                       Gabelli/GAMCO Funds complex; Vice President of Goldman Sachs Asset Management
                                              from 2000 through 2004

DAVID I. SCHACHTER             Since 2007     Vice President of The Gabelli Utility Trust since 1999, The Gabelli Global
Vice President                                Utility & Income Trust since 2004, The Gabelli Global Deal Fund since 2006,
Age: 54                                       and the Fund since 2007; Vice President of Gabelli & Company, Inc. since
                                              1999.

ADAM E. TOKAR                  Since 2007     Assistant Vice President of the Fund since 2007; Portfolio Administrator for
Assistant Vice President                      GAMCO Asset Management, Inc. since 2003; Student at Gettysburg College prior
& Ombudsman                                   to 2003.
Age: 27


----------
(1)   Address: One Corporate Center, Rye, NY 10580-1422, unless otherwise noted.

(2)   The Fund's  Board of Trustees is divided  into three  classes,  each class
      having a term of three  years.  Each  year the term of office of one class
      expires and the successor or successors  elected to such class serve for a
      three year term. The three year term for each class expires as follows:

      *     - Term expires at the Fund's 2009 Annual Meeting of  Shareholders or
              until their successors are duly elected and qualified.

      **    - Term expires at the Fund's 2010 Annual Meeting of  Shareholders or
              until their successors are duly elected and qualified.

      ***   - Term expires at the Fund's 2008 Annual Meeting of  Shareholders or
              until their successors are duly elected and qualified.

      Each officer will hold office for an indefinite  term until the date he or
      she  resigns  or  retires or until his or her  successor  is  elected  and
      qualified.

(3)   "Interested person" of the Fund as defined in the 1940 Act. Mr. Gabelli is
      considered an "interested  person" of the Fund because of his  affiliation
      with Gabelli Funds, LLC which acts as the Fund's investment adviser.

(4)   This column includes only directorships of companies required to report to
      the SEC under the Securities Exchange Act of 1934, as amended (i.e. public
      companies) or other investment companies registered under the 1940 Act.

(5)   Trustees  who are not  interested  persons  are  considered  "Independent"
      Trustees.

CERTIFICATIONS

      The Fund's  Chief  Executive  Officer has  certified to the New York Stock
Exchange  ("NYSE")  that, as of June 8, 2007, she was not aware of any violation
by the Fund of applicable NYSE corporate governance listing standards.  The Fund
reports to the SEC on Form N-CSR  which  contains  certifications  by the Fund's
principal  executive officer and principal  financial officer that relate to the
Fund's  disclosure in such reports and that are required by Rule 30a-2(a)  under
the 1940 Act.


                                       15



                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST
                       INCOME TAX INFORMATION (UNAUDITED)
                                DECEMBER 31, 2007

CASH DIVIDENDS AND DISTRIBUTIONS

                                       TOTAL AMOUNT    ORDINARY      DIVIDEND
                 PAYABLE    RECORD         PAID       INVESTMENT   REINVESTMENT
                  DATE       DATE     PER SHARE (a)   INCOME (a)       PRICE
                --------   --------   -------------   ----------   ------------
COMMON SHARES
                12/28/07   12/21/07      $ 0.0500      $ 0.0500      $ 7.0903
                                         --------      --------      --------

      A Form  1099-DIV  has been  mailed to all  shareholders  of record for the
distributions  mentioned above, setting forth specific amounts to be included in
the 2007 tax  returns.  Ordinary  income  distributions  include net  investment
income and realized net short-term capital gains. Ordinary income is reported in
box 1a of Form 1099-DIV.

CORPORATE  DIVIDENDS  RECEIVED  DEDUCTION,  QUALIFIED  DIVIDEND INCOME, AND U.S.
TREASURY SECURITIES INCOME

      The Fund paid to common  shareholders an ordinary income dividend of $0.05
per  share in 2007.  For the  period  ended  December  31,  2007,  13.36% of the
ordinary dividend qualified for the dividends  received  deduction  available to
corporations,  and 15.77% of the  ordinary  income  distribution  was  qualified
dividend  income.  The percentage of ordinary income  dividends paid by the Fund
during 2007 derived from U.S.  Treasury  Securities  was 38.39%.  Such income is
exempt from state and local tax in all states.  However, many states,  including
New York and  California,  allow a tax  exemption  for a portion  of the  income
earned only if a mutual fund has  invested at least 50% of its assets at the end
of each quarter of its fiscal year in U.S. Government  Securities.  The Fund did
not meet this strict  requirement  in 2007. The percentage of net assets of U.S.
Government Securities held as of December 31, 2007 was 27.11%.

                         HISTORICAL DISTRIBUTION SUMMARY

COMMON SHARES

                                          SHORT-TERM
                           INVESTMENT       CAPITAL          TOTAL
                           INCOME (a)      GAINS (a)     DISTRIBUTIONS
                           ----------     ----------     -------------
2007 ...................    $ 0.0115       $ 0.0385         $ 0.0500

----------
(a)   Taxable as ordinary income for federal tax purposes.






----------
     Effective  July 9, 2007,  Kevin V. Dreyer and  Jeffrey J.  Jonas,  CFA were
named  Associate  Portfolio  Managers of The Gabelli  Healthcare &  Wellness(Rx)
Trust (the "Healthcare  Trust"). Mr. Dryer and Mr. Jonas manage a portion of the
assets of the portfolio and report to Mario J. Gabelli, Portfolio Manager of the
Healthcare  Trust  and  Chief  Investment  Officer  - Value  Portfolios  for the
Adviser.

     Mr. Dryer joined Gabelli & Company, Inc. in 2005 as a research analyst upon
earning an MBA from Columbia Business School.  Mr. Dryer previously worked as an
investment  banking  analyst  at  Banc  of  America  Securities   following  his
graduation from the University of Pennsylvania.

     Mr. Jonas  joined  Gabelli & Company,  Inc. in 2003 as a research  analyst.
Prior to his appointment as Associate Portfolio Manager of the Healthcare Trust,
Mr. Jonas served as co-portfolio manager of GAMCO Medical  Opportunities LP. Mr.
Jonas was a  Presidential  Scholar at Boston  College  where he received a BS in
finance and management information systems.



--------------------------------------------------------------------------------
The Annual Meeting of The Gabelli Healthcare & Wellness(RX) Trust's shareholders
will be held on Monday,  May 19,  2008 at the  Greenwich  Library in  Greenwich,
Connecticut.
--------------------------------------------------------------------------------


                                       16



                         AUTOMATIC DIVIDEND REINVESTMENT
                        AND VOLUNTARY CASH PURCHASE PLAN

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  reregistered  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 shares 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.

      The Fund  reserves the right to amend or terminate  the Plan 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.


                                       17



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.


                                       18



                              TRUSTEES AND OFFICERS
                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST
                    ONE CORPORATE CENTER, RYE, NY 10580-1422



                                                     
TRUSTEES                                                OFFICERS

Mario J. Gabelli, CFA                                   Agnes Mullady
   CHAIRMAN & CHIEF EXECUTIVE OFFICER,                     PRESIDENT AND TREASURER
   GAMCO INVESTORS, INC.
                                                        Carter W. Austin
Dr. Thomas E. Bratter                                      VICE PRESIDENT
   PRESIDENT & FOUNDER, JOHN DEWEY ACADEMY
                                                        Peter D. Goldstein
Anthony J. Colavita                                        CHIEF COMPLIANCE OFFICER
   ATTORNEY-AT-LAW,
   ANTHONY J. COLAVITA, P.C.                            James E. McKee
                                                           SECRETARY
James P. Conn
   FORMER MANAGING DIRECTOR &                           David I. Schachter
   CHIEF INVESTMENT OFFICER,                               VICE PRESIDENT
   FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.
                                                        Adam E. Tokar
Vincent D. Enright                                         ASSISTANT VICE PRESIDENT & OMBUDSMAN
   FORMER SENIOR VICE PRESIDENT &
   CHIEF FINANCIAL OFFICER,                             INVESTMENT ADVISER
   KEYSPAN CORP.                                        Gabelli Funds, LLC
                                                        One Corporate Center
Robert C. Kolodny, MD                                   Rye, New York 10580-1422
   PHYSICIAN, AUTHOR, AND LECTURER,
   GENERAL PARTNER OF KBS PARTNERSHIP                   CUSTODIAN
                                                        Mellon Trust of New England, N.A.
Anthonie C. van Ekris
   CHAIRMAN, BALMAC INTERNATIONAL, INC.                 COUNSEL
                                                        Willkie Farr & Gallagher LLP
Salvatore J. Zizza
   CHAIRMAN, ZIZZA & CO., LTD.                          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.



--------------------------------------------------------------------------------
For   general   information   about  the   Gabelli   Funds,   call   800-GABELLI
(800-422-3554),  fax us at 914-921-5118,  visit Gabelli Funds' Internet homepage
at: WWW.GABELLI.COM, or e-mail us at: closedend@gabelli.com
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Notice  is hereby  given in  accordance  with  Section  23(c) of the  Investment
Company Act of 1940, as amended,  that the Fund may, from time to time, purchase
its common  shares in the open  market  when the Fund's  shares are trading at a
discount of 10% or more from the net asset value of the shares.
--------------------------------------------------------------------------------



--------------------------------------------------------------------------------

                   THE GABELLI HEALTHCARE & WELLNESS(RX) TRUST

                    ONE CORPORATE CENTER, RYE, NY 10580-1422

                        PHONE: 800-GABELLI (800-422-3554)
                   FAX: 914-921-5118 INTERNET: WWW.GABELLI.COM
                          E-MAIL: CLOSEDEND@GABELLI.COM              GRX Q4/2007

--------------------------------------------------------------------------------



ITEM 2. CODE OF ETHICS.

     (a)  The  registrant,  as of the end of the period  covered by this report,
          has  adopted  a code  of  ethics  that  applies  to  the  registrant's
          principal executive officer,  principal  financial officer,  principal
          accounting  officer  or  controller,  or  persons  performing  similar
          functions, regardless of whether these individuals are employed by the
          registrant or a third party.

     (c)  There  have been no  amendments,  during  the  period  covered by this
          report,  to a  provision  of the code of ethics  that  applies  to the
          registrant's principal executive officer, principal financial officer,
          principal  accounting  officer or  controller,  or persons  performing
          similar  functions,   regardless  of  whether  these  individuals  are
          employed by the  registrant or a third party,  and that relates to any
          element of the code of ethics description.

     (d)  The  registrant  has not granted any  waivers,  including  an implicit
          waiver,  from a provision  of the code of ethics  that  applies to the
          registrant's principal executive officer, principal financial officer,
          principal  accounting  officer or  controller,  or persons  performing
          similar  functions,   regardless  of  whether  these  individuals  are
          employed by the  registrant  or a third party,  that relates to one or
          more  of  the  items  set  forth  in  paragraph  (b)  of  this  item's
          instructions.


ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

As of the end of the period  covered by the report,  the  registrant's  Board of
Trustees  has  determined  that  Vincent D.  Enright is qualified to serve as an
audit committee  financial  expert serving on its audit committee and that he is
"independent," as defined by Item 3 of Form N-CSR.


ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

AUDIT FEES

     (a)  The  aggregate  fees billed for each of the last two fiscal  years for
          professional  services  rendered by the principal  accountant  for the
          audit of the registrant's annual financial statements or services that
          are normally  provided by the accountant in connection  with statutory
          and regulatory  filings or  engagements  for those fiscal years are $0
          for 2006 and $47,000 for 2007.

AUDIT-RELATED FEES

     (b)  The  aggregate  fees  billed in each of the last two fiscal  years for
          assurance and related  services by the principal  accountant  that are
          reasonably related to the performance of the audit of the registrant's
          financial  statements and are not reported under paragraph (a) of this
          Item are $0 for 2006 and $0 for 2007.


TAX FEES

     (c)  The  aggregate  fees  billed in each of the last two fiscal  years for
          professional  services  rendered by the principal  accountant  for tax
          compliance,  tax advice,  and tax  planning are $0 for 2006 and $4,350
          for 2007.  Tax fees  represent  tax  compliance  services  provided in
          connection with the review of the Registrant's tax returns.

ALL OTHER FEES

     (d)  The  aggregate  fees  billed in each of the last two fiscal  years for
          products and services provided by the principal accountant, other than
          the services  reported in paragraphs  (a) through (c) of this Item are
          $0 for 2006 and $0 for 2007

  (e)(1)  Disclose the audit committee's  pre-approval  policies and  procedures
          described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

          Pre-Approval   Policies   and   Procedures.    The   Audit   Committee
          ("Committee") of the registrant is responsible for  pre-approving  (i)
          all audit and  permissible  non-audit  services  to be provided by the
          independent  registered  public  accounting firm to the registrant and
          (ii)  all  permissible  non-audit  services  to  be  provided  by  the
          independent registered public accounting firm to the Adviser,  Gabelli
          Funds,  LLC, and any affiliate of Gabelli Funds,  LLC ("Gabelli") that
          provides services to the registrant (a "Covered Services Provider") if
          the independent registered public accounting firm's engagement related
          directly to the operations and financial  reporting of the registrant.
          The Committee may delegate its  responsibility to pre-approve any such
          audit and  permissible  non-audit  services to the  Chairperson of the
          Committee,  and the Chairperson  must report to the Committee,  at its
          next regularly scheduled meeting after the Chairperson's  pre-approval
          of such  services,  his or her  decision(s).  The  Committee  may also
          establish   detailed   pre-approval   policies  and   procedures   for
          pre-approval  of such services in  accordance  with  applicable  laws,
          including  the   delegation   of  some  or  all  of  the   Committee's
          pre-approval responsibilities to the other persons (other than Gabelli
          or the  registrant's  officers).  Pre-approval by the Committee of any
          permissible  non-audit  services  is not  required so long as: (i) the
          permissible  non-audit  services were not recognized by the registrant
          at the time of the engagement to be non-audit services;  and (ii) such
          services are promptly  brought to the  attention of the  Committee and
          approved by the Committee or  Chairperson  prior to the  completion of
          the audit.


   (e)(2) The  percentage  of  services  described  in  each of  paragraphs  (b)
          through  (d) of this Item that were  approved  by the audit  committee
          pursuant to paragraph  (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are
          as follows:

                           (b) Not applicable

                           (c) 100%

                           (d) Not applicable

     (f)  The  percentage  of  hours  expended  on  the  principal  accountant's
          engagement to audit the registrant's financial statements for the most
          recent fiscal year that were  attributed to work  performed by persons
          other than the principal accountant's  full-time,  permanent employees
          was zero percent (0%).


     (g)  The aggregate non-audit fees billed by the registrant's accountant for
          services rendered to the registrant,  and rendered to the registrant's
          investment  adviser  (not  including  any  sub-adviser  whose  role is
          primarily  portfolio  management and is subcontracted with or overseen
          by another investment adviser), and any entity controlling, controlled
          by, or under common  control with the adviser  that  provides  ongoing
          services to the  registrant  for each of the last two fiscal  years of
          the registrant was $0 for 2006 and $0 for 2007

     (h)  The  registrant's  audit  committee  of the  board  of  directors  has
          considered  whether the  provision  of  non-audit  services  that were
          rendered to the  registrant's  investment  adviser (not  including any
          sub-adviser  whose  role  is  primarily  portfolio  management  and is
          subcontracted with or overseen by another investment adviser), and any
          entity  controlling,  controlled  by, or under common control with the
          investment  adviser that provides  ongoing  services to the registrant
          that were not  pre-approved  pursuant to paragraph  (c)(7)(ii) of Rule
          2-01 of Regulation S-X is compatible  with  maintaining  the principal
          accountant's independence.



ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

          The registrant has a separately  designated audit committee consisting
          of the following members: Anthony J. Colavita, Vincent D. Enright, and
          Salvatore J. Zizza.



ITEM 6. SCHEDULE OF INVESTMENTS.

Schedule of Investments in securities of unaffiliated issuers as of the close of
the  reporting  period is included as part of the report to  shareholders  filed
under Item 1 of this form.



ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
        MANAGEMENT INVESTMENT COMPANIES.

The Proxy Voting Policies are attached herewith.

                   THE VOTING OF PROXIES ON BEHALF OF CLIENTS

         Rules 204(4)-2 and 204-2 under the Investment  Advisers Act of 1940 and
Rule 30b1-4 under the Investment Company Act of 1940 require investment advisers
to adopt  written  policies and  procedures  governing  the voting of proxies on
behalf of their clients.

         These procedures will be used by GAMCO Asset  Management Inc.,  Gabelli
Funds, LLC, Gabelli Securities,  Inc., and Teton Advisors,  Inc.  (collectively,
the  "Advisers")  to  determine  how  to  vote  proxies  relating  to  portfolio
securities held by their clients, including the procedures that the Advisers use
when a vote presents a conflict  between the interests of the shareholders of an
investment company managed by one of the Advisers, on the one hand, and those of
the  Advisers;  the  principal  underwriter;  or any  affiliated  person  of the
investment company, the Advisers, or the principal underwriter. These procedures
will not apply where the  Advisers do not have  voting  discretion  or where the
Advisers have agreed to with a client to vote the client's proxies in accordance
with specific  guidelines  or  procedures  supplied by the client (to the extent
permitted by ERISA).

I.       PROXY VOTING COMMITTEE

         The Proxy Voting Committee was originally  formed in April 1989 for the
purpose of formulating  guidelines  and reviewing  proxy  statements  within the
parameters set by the substantive proxy voting guidelines  originally  published
in 1988 and updated periodically, a copy of which are appended as Exhibit A. The
Committee will include representatives of Research,  Administration,  Legal, and
the  Advisers.  Additional  or  replacement  members  of the  Committee  will be
nominated by the Chairman and voted upon by the entire Committee.

         Meetings  are held as needed basis to form views on the manner in which
the Advisers should vote proxies on behalf of their clients.

         In general,  the  Director of Proxy  Voting  Services,  using the Proxy
Guidelines,  recommendations of Institutional  Shareholder  Corporate Governance
Service  ("ISS"),  other  third-party  services  and the  analysts  of Gabelli &
Company,  Inc., will determine how to vote on each issue. For  non-controversial
matters, the Director of Proxy Voting Services may vote the proxy if the vote is
(1) consistent with the  recommendations  of the issuer's Board of Directors and
not contrary to the Proxy Guidelines; (2) consistent with the recommendations of
the issuer's Board of Directors and is a non-controversial  issue not covered by
the Proxy Guidelines;  or (3) the vote is contrary to the recommendations of the
Board of  Directors  but is  consistent  with  the  Proxy  Guidelines.  In those
instances,  the  Director  of  Proxy  Voting  Services  or the  Chairman  of the
Committee may sign and date the proxy  statement  indicating how each issue will
be voted.

         All matters  identified by the Chairman of the Committee,  the Director
of Proxy Voting Services or the Legal Department as  controversial,  taking into
account  the  recommendations  of ISS or  other  third  party  services  and the
analysts  of Gabelli & Company,  Inc.,  will be  presented  to the Proxy  Voting
Committee.  If the  Chairman of the  Committee,  the  Director  of Proxy  Voting
Services or the Legal  Department  has  identified the matter as one that (1) is
controversial;   (2)  would  benefit  from  deliberation  by  the  Proxy  Voting
Committee;  or (3) may give rise to a conflict of interest  between the Advisers
and their clients,  the Chairman of the Committee will initially  determine what
vote to recommend  that the  Advisers  should cast and the matter will go before
the Committee.

         A.       CONFLICTS OF INTEREST.

                  The Advisers have implemented these proxy voting procedures in
                  order to prevent  conflicts of interest from influencing their
                  proxy voting decisions. By following the Proxy Guidelines,  as
                  well as the recommendations of ISS, other third-party services
                  and the  analysts of Gabelli & Company,  the Advisers are able
                  to  avoid,  wherever  possible,  the  influence  of  potential
                  conflicts of interest.  Nevertheless,  circumstances may arise
                  in which one or more of the Advisers are faced with a conflict
                  of  interest  or the  appearance  of a conflict of interest in
                  connection  with its vote. In general,  a conflict of interest
                  may arise  when an Adviser  knowingly  does  business  with an
                  issuer, and may appear to have a material conflict between its
                  own  interests  and the  interests of the  shareholders  of an
                  investment  company  managed by one of the Advisers  regarding
                  how the proxy is to be voted.  A conflict  also may exist when
                  an  Adviser  has  actual  knowledge  of  a  material  business
                  arrangement between an issuer and an affiliate of the Adviser.

                  In  practical  terms,  a conflict of interest  may arise,  for
                  example,  when a proxy is voted for a company that is a client
                  of one of the Advisers,  such as GAMCO Asset Management Inc. A
                  conflict  also may arise when a client of one of the  Advisers
                  has made a shareholder proposal in a proxy to be voted upon by
                  one or more of the  Advisers.  The  Director  of Proxy  Voting
                  Services,  together with the Legal Department, will scrutinize
                  all proxies for these or other  situations  that may give rise
                  to a  conflict  of  interest  with  respect  to the  voting of
                  proxies.

         B.       OPERATION OF PROXY VOTING COMMITTEE

                  For matters  submitted  to the  Committee,  each member of the
                  Committee  will receive,  prior to the meeting,  a copy of the
                  proxy statement,  any relevant third party research, a summary
                  of any views provided by the Chief Investment  Officer and any
                  recommendations by Gabelli & Company, Inc. analysts. The Chief
                  Investment Officer or the Gabelli & Company, Inc. analysts may
                  be invited to present  their  viewpoints.  If the  Director of
                  Proxy Voting Services or the Legal Department believe that the
                  matter  before the  committee  is one with  respect to which a
                  conflict of interest may exist  between the Advisers and their
                  clients,  counsel  will  provide an  opinion to the  Committee
                  concerning  the  conflict.  If the  matter is one in which the
                  interests  of the  clients  of one or  more  of  Advisers  may
                  diverge,  counsel  will so advise and the  Committee  may make
                  different  recommendations  as to different  clients.  For any
                  matters where the recommendation may trigger appraisal rights,
                  counsel  will provide an opinion  concerning  the likely risks
                  and merits of such an appraisal action.

         Each matter  submitted to the Committee  will be determined by the vote
of a majority of the members present at the meeting.  Should the vote concerning
one or more recommendations be tied in a vote of the Committee,  the Chairman of
the Committee  will cast the deciding  vote. The Committee will notify the proxy
department of its decisions and the proxies will be voted accordingly.

         Although the Proxy  Guidelines  express the normal  preferences for the
voting of any shares not covered by a contrary investment  guideline provided by
the client, the Committee is not bound by the preferences set forth in the Proxy
Guidelines and will review each matter on its own merits. Written minutes of all
Proxy Voting Committee  meetings will be maintained.  The Advisers  subscribe to
ISS, which supplies  current  information on companies,  matters being voted on,
regulations,  trends in proxy voting and  information  on  corporate  governance
issues.

         If  the  vote  cast  either  by  the  analyst  or as a  result  of  the
deliberations of the Proxy Voting Committee runs contrary to the  recommendation
of the Board of  Directors  of the issuer,  the matter will be referred to legal
counsel to determine  whether an amendment to the most recently  filed  Schedule
13D is appropriate.

II.      SOCIAL ISSUES AND OTHER CLIENT GUIDELINES

         If a client has provided special instructions relating to the voting of
proxies,  they should be noted in the client's account file and forwarded to the
proxy department.  This is the responsibility of the investment  professional or
sales  assistant  for  the  client.  In  accordance  with  Department  of  Labor
guidelines,  the Advisers'  policy is to vote on behalf of ERISA accounts in the
best interest of the plan  participants  with regard to social issues that carry
an economic impact. Where an account is not governed by ERISA, the Advisers will
vote  shares  held on  behalf  of the  client  in a manner  consistent  with any
individual  investment/voting  guidelines provided by the client.  Otherwise the
Advisers will abstain with respect to those shares.

III.     CLIENT RETENTION OF VOTING RIGHTS

         If a client  chooses to retain the right to vote proxies or if there is
any  change  in voting  authority,  the  following  should  be  notified  by the
investment professional or sales assistant for the client.

         - Operations
         - Legal Department
         - Proxy Department
         - Investment professional assigned to the account

         In the event that the Board of  Directors  (or a Committee  thereof) of
one or more of the  investment  companies  managed  by one of the  Advisers  has
retained  direct voting control over any security,  the Proxy Voting  Department
will provide each Board  Member (or  Committee  member) with a copy of the proxy
statement together with any other relevant information including recommendations
of ISS or other third-party services.

IV.      VOTING RECORDS

         The Proxy Voting  Department will retain a record of matters voted upon
by the Advisers for their clients.  The Advisers will supply  information on how
an account voted its proxies upon request.

         A letter  is sent to the  custodians  for all  clients  for  which  the
Advisers  have  voting  responsibility  instructing  them to  forward  all proxy
materials to:

                  [Adviser name]
                  Attn: Proxy Voting Department
                  One Corporate Center
                  Rye, New York 10580-1433

The  sales  assistant  sends  the  letters  to the  custodians  along  with  the
trading/DTC  instructions.  Proxy voting  records will be retained in compliance
with Rule 204-2 under the Investment Advisers Act.

V.       VOTING PROCEDURES

1. Custodian banks,  outside  brokerage firms and clearing firms are responsible
for forwarding proxies directly to the Advisers.

Proxies are received in one of two forms:

o    Shareholder  Vote  Authorization  Forms  ("VAFs")  - Issued  by  Broadridge
     Financial  Solutions,  Inc.  ("Broadridge")  VAFs must be voted through the
     issuing  institution  causing a time lag.  Broadridge is an outside service
     contracted by the various institutions to issue proxy materials.

o    Proxy cards which may be voted directly.

2. Upon  receipt of the  proxy,  the number of shares  each form  represents  is
logged into the proxy system according to security.

3. In  the case of a  discrepancy  such as an  incorrect  number of  shares,  an
improperly  signed or dated card,  wrong class of  security,  etc.,  the issuing
custodian is notified by phone. A corrected proxy is requested. Any arrangements
are  made to  insure  that a  proper  proxy  is  received  in  time to be  voted
(overnight delivery, fax, etc.). When securities are out on loan on record date,
the custodian is requested to supply written verification.

4. Upon receipt of instructions  from the proxy committee (see  Administrative),
the votes are cast and recorded for each account on an individual basis.

Records have been  maintained on the Proxy Edge system.  The system is backed up
regularly.

Proxy Edge records include:
         Security Name and Cusip Number
         Date and Type of Meeting (Annual, Special, Contest)
         Client Name
         Adviser or Fund Account Number
         Directors' Recommendation
         How GAMCO voted for the client on each issue

5. VAFs are kept  alphabetically  by  security.  Records for the  current  proxy
season are located in the Proxy Voting Department office. In preparation for the
upcoming  season,  files are transferred to an offsite  storage  facility during
January/February.

6.  Shareholder  Vote  Authorization  Forms issued by Broadridge are always sent
directly to a specific individual at Broadridge.

7. If a proxy card or VAF is received  too late to be voted in the  conventional
matter, every attempt is made to vote on one of the following manners:

o  VAFs can be faxed to  Broadridge  up until  the time of the  meeting. This is
   followed up by mailing the original form.

o  When  a  solicitor  has  been  retained,  the  solicitor  is  called.  At the
   solicitor's direction, the proxy is faxed.

8. In the case of a proxy  contest,  records are  maintained  for each  opposing
entity.

9. Voting in Person

a) At times it may be  necessary  to vote the shares in person.  In this case, a
"legal proxy" is obtained in the following manner:

o  Banks and brokerage firms using the services at Broadridge:

      The back of the VAF is stamped  indicating that we wish to vote in person.
The forms are then sent overnight to Broadridge.  Broadridge  issues  individual
legal  proxies  and  sends  them  back via  overnight  (or the  Adviser  can pay
messenger  charges).  A lead-time  of at least two weeks prior to the meeting is
needed to do this.  Alternatively,  the procedures  detailed below for banks not
using Broadridge may be implemented.

o  Banks and brokerage firms issuing proxies directly:

   The bank is called and/or faxed and a legal proxy is requested.

All legal proxies should appoint:

"REPRESENTATIVE OF [ADVISER NAME] WITH FULL POWER OF SUBSTITUTION."

b) The legal  proxies are given to the person  attending  the meeting along with
the following supplemental material:

o  A  limited   Power  of   Attorney   appointing   the   attendee   an  Adviser
   representative.

o  A list of all shares being voted by custodian only.  Client names and account
   numbers  are not  included.  This  list  must be  presented,  along  with the
   proxies,  to the Inspectors of Elections  and/or  tabulator at least one-half
   hour  prior  to the  scheduled  start  of the  meeting.  The  tabulator  must
   "qualify" the votes (i.e. determine if the vote have previously been cast, if
   the votes have been rescinded, etc. vote have previously been cast, etc.).

o  A sample ERISA and Individual contract.

o  A sample of the annual authorization to vote proxies form.

o  A copy of our most recent Schedule 13D filing (if applicable).






                                   APPENDIX A
                                PROXY GUIDELINES




PROXY VOTING GUIDELINES

GENERAL POLICY STATEMENT

It is the policy of GAMCO INVESTORS, INC. to vote in the best economic interests
of our  clients.  As we  state  in  our  Magna  Carta  of  Shareholders  Rights,
established in May 1988, we are neither FOR nor AGAINST  management.  We are for
shareholders.

At our first proxy  committee  meeting in 1989,  it was decided  that each proxy
statement  should be  evaluated  on its own merits  within the  framework  first
established by our Magna Carta of Shareholders  Rights. The attached  guidelines
serve to enhance that broad framework.

We do not  consider any issue  routine.  We take into  consideration  all of our
research on the company, its directors,  and their short and long-term goals for
the  company.  In cases  where  issues that we  generally  do not approve of are
combined with other issues,  the negative aspects of the issues will be factored
into the evaluation of the overall  proposals but will not necessitate a vote in
opposition to the overall proposals.



BOARD OF DIRECTORS

The  advisers do not  consider  the election of the Board of Directors a routine
issue. Each slate of directors is evaluated on a case-by-case basis.

Factors taken into consideration include:

o        Historical responsiveness to shareholders
            This may include such areas as:
            -Paying greenmail
            -Failure to adopt shareholder  resolutions  receiving  a majority of
             shareholder votes
o        Qualifications
o        Nominating committee in place
o        Number of outside directors on the board
o        Attendance at meetings
o        Overall performance



SELECTION OF AUDITORS

In general, we support the Board of Directors' recommendation for auditors.



BLANK CHECK PREFERRED STOCK

We oppose the issuance of blank check preferred stock.

Blank check  preferred  stock  allows the  company to issue stock and  establish
dividends, voting rights, etc. without further shareholder approval.



CLASSIFIED BOARD

A  classified  board is one where the  directors  are divided  into classes with
overlapping terms. A different class is elected at each annual meeting.

While a classified  board  promotes  continuity of directors  facilitating  long
range  planning,  we feel directors  should be accountable to shareholders on an
annual basis. We will look at this proposal on a case-by-case  basis taking into
consideration   the  board's   historical   responsiveness   to  the  rights  of
shareholders.

Where a classified  board is in place we will generally not support  attempts to
change to an annually elected board.

When an  annually  elected  board is in place,  we  generally  will not  support
attempts to classify the board.



INCREASE AUTHORIZED COMMON STOCK

The request to increase  the amount of  outstanding  shares is  considered  on a
case-by-case basis.

Factors taken into consideration include:

o        Future use of additional shares
            -Stock split
            -Stock option or other executive  compensation  plan
            -Finance growth of company/strengthen balance sheet
            -Aid in restructuring
            -Improve credit rating
            -Implement a poison pill or other takeover defense
o        Amount of stock currently authorized but not yet issued or reserved for
         stock option plans
o        Amount of additional stock to be authorized and its dilutive effect

We will support this proposal if a detailed and  verifiable  plan for the use of
the additional shares is contained in the proxy statement.



CONFIDENTIAL BALLOT

We support  the idea that a  shareholder's  identity  and vote should be treated
with confidentiality.

However, we look at this issue on a case-by-case basis.

In order to promote confidentiality in the voting process, we endorse the use of
independent Inspectors of Election.



CUMULATIVE VOTING

In general, we support cumulative voting.

Cumulative voting is a process by which a shareholder may multiply the number of
directors being elected by the number of shares held on record date and cast the
total  number  for one  candidate  or  allocate  the  voting  among  two or more
candidates.

Where  cumulative  voting is in place,  we will vote  against  any  proposal  to
rescind this shareholder right.

Cumulative voting may result in a minority block of stock gaining representation
on the board.  When a  proposal  is made to  institute  cumulative  voting,  the
proposal will be reviewed on a case-by-case basis. While we feel that each board
member should represent all  shareholders,  cumulative  voting provides minority
shareholders an opportunity to have their views represented.



DIRECTOR LIABILITY AND INDEMNIFICATION

We support  efforts to attract  the best  possible  directors  by  limiting  the
liability and increasing the indemnification of directors, except in the case of
insider dealing.



EQUAL ACCESS TO THE PROXY

The SEC's rules provide for shareholder  resolutions.  However,  the resolutions
are  limited  in scope  and  there is a 500 word  limit on  proponents'  written
arguments.  Management has no such limitations. While we support equal access to
the  proxy,  we would  look at such  variables  as  length of time  required  to
respond, percentage of ownership, etc.



FAIR PRICE PROVISIONS

Charter  provisions  requiring a bidder to pay all shareholders a fair price are
intended to prevent two-tier tender offers that may be abusive. Typically, these
provisions do not apply to board-approved transactions.

We support  fair price  provisions  because we feel all  shareholders  should be
entitled to receive the same benefits.

Reviewed on a case-by-case basis.



GOLDEN PARACHUTES

Golden parachutes are severance payments to top executives who are terminated or
demoted after a takeover.

We support any proposal that would assure  management of its own welfare so that
they may  continue  to make  decisions  in the best  interest of the company and
shareholders  even if the decision  results in them losing their job. We do not,
however, support excessive golden parachutes.  Therefore,  each proposal will be
decided on a case-by-case basis.

NOTE: CONGRESS HAS IMPOSED A TAX ON ANY PARACHUTE  THAT IS MORE THAN THREE TIMES
THE EXECUTIVE'S AVERAGE ANNUAL COMPENSATION.



ANTI-GREENMAIL PROPOSALS

We do not support  greenmail.  An offer  extended to one  shareholder  should be
extended to all shareholders equally across the board.



LIMIT SHAREHOLDERS' RIGHTS TO CALL SPECIAL MEETINGS

We support the right of shareholders to call a special meeting.



CONSIDERATION OF NONFINANCIAL EFFECTS OF A MERGER

This proposal  releases the directors from only looking at the financial effects
of a merger and allows them the opportunity to consider the merger's  effects on
employees, the community, and consumers.

As a fiduciary,  we are obligated to vote in the best economic  interests of our
clients. In general, this proposal does not allow us to do that.  Therefore,  we
generally cannot support this proposal.

Reviewed on a case-by-case basis.



MERGERS, BUYOUTS, SPIN-OFFS, RESTRUCTURINGS

Each of the  above is  considered  on a  case-by-case  basis.  According  to the
Department of Labor,  we are not required to vote for a proposal  simply because
the offering price is at a premium to the current market price. We may take into
consideration the long term interests of the shareholders.



MILITARY ISSUES

Shareholder  proposals  regarding  military  production  must be  evaluated on a
purely economic set of criteria for our ERISA clients.  As such,  decisions will
be made on a case-by-case basis.

In voting on this proposal for our non-ERISA clients,  we will vote according to
the client's  direction when  applicable.  Where no direction has been given, we
will vote in the best economic  interests of our clients.  It is not our duty to
impose our social judgment on others.



NORTHERN IRELAND

Shareholder  proposals requesting the signing of the MacBride principles for the
purpose of countering the  discrimination  of Catholics in hiring practices must
be evaluated on a purely  economic  set of criteria  for our ERISA  clients.  As
such, decisions will be made on a case-by-case basis.

In voting on this proposal for our non-ERISA clients,  we will vote according to
client  direction when  applicable.  Where no direction has been given,  we will
vote in the best economic interests of our clients. It is not our duty to impose
our social judgment on others.



OPT OUT OF STATE ANTI-TAKEOVER LAW

This shareholder proposal requests that a company opt out of the coverage of the
state's  takeover  statutes.  Example:  Delaware law requires  that a buyer must
acquire  at least 85% of the  company's  stock  before  the  buyer can  exercise
control unless the board approves.

We consider  this on a  case-by-case  basis.  Our decision  will be based on the
following:

o        State of Incorporation
o        Management history of responsiveness to shareholders
o        Other mitigating factors



POISON PILL

In general, we do not endorse poison pills.

In certain cases where management has a history of being responsive to the needs
of shareholders and the stock is very liquid, we will reconsider this position.



REINCORPORATION

Generally,  we support  reincorporation  for well-defined  business reasons.  We
oppose  reincorporation if proposed solely for the purpose of reincorporating in
a state with more stringent  anti-takeover  statutes that may negatively  impact
the value of the stock.



STOCK OPTION PLANS

Stock option plans are an excellent way to attract,  hold and motivate directors
and  employees.  However,  each stock  option plan must be  evaluated on its own
merits, taking into consideration the following:

o        Dilution of voting power or earnings per share by more than 10%
o        Kind of stock to be awarded, to whom, when and how much
o        Method of payment
o        Amount of stock already authorized  but not yet  issued  under existing
         stock option plans



SUPERMAJORITY VOTE REQUIREMENTS

Supermajority vote requirements in a company's charter or bylaws require a level
of voting approval in excess of a simple majority of the outstanding  shares. In
general, we oppose supermajority-voting requirements. Supermajority requirements
often  exceed  the  average  level  of  shareholder  participation.  We  support
proposals' approvals by a simple majority of the shares voting.



LIMIT SHAREHOLDERS RIGHT TO ACT BY WRITTEN CONSENT

Written  consent  allows  shareholders  to initiate  and carry on a  shareholder
action without having to wait until the next annual meeting or to call a special
meeting.  It  permits  action  to be taken by the  written  consent  of the same
percentage of the shares that would be required to effect  proposed  action at a
shareholder meeting.

Reviewed on a case-by-case basis.


ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

PORTFOLIO MANAGERS
------------------

Mr.  Mario  J.  Gabelli,  CFA,  is  primarily  responsible  for  the  day-to-day
management of Gabelli Healthcare & Wellness(Rx)  Trust, (the Trust). Mr. Gabelli
has served as Chairman,  Chief Executive  Officer,  and Chief Investment Officer
-Value  Portfolios  of GAMCO  Investors,  Inc.  and its  affiliates  since their
organization.

Kevin V. Dreyer  joined  Gabelli & Company,  Inc. in 2005 as a research  analyst
upon earning an MBA from Columbia  Business School.  Mr. Dryer previously worked
as an investment  banking  analyst at Banc of America  Securities  following his
graduation from the University of Pennsylvania.




Mr. Jeffrey J. Jonas,  CFA joined Gabelli & Company,  Inc. in 2003 as a research
analyst.  Prior  to his  appointment  as  Associated  Portfolio  Manager  of the
Healthcare  Trust,  Mr. Jonas served as  co-portfolio  manager of GAMCO  Medical
Opportunities  LP. Mr. Jonas was a Presidential  Scholar at Boston College where
he received a BS in finance and management information systems.

MANAGEMENT OF OTHER ACCOUNTS

The table  below  shows the number of other  accounts  managed by the  portfolio
managers and the total assets in each of the  following  categories:  registered
investment  companies,  other paid investment  vehicles and other accounts.  For
each category,  the table also shows the number of accounts and the total assets
in the  accounts  with  respect  to which the  advisory  fee is based on account
performance.







------------------------- ------------------- ------------------- -------------- ----------------- ----------------
                                                                                                    Total Assets
                                                                                 No. of Accounts     in Accounts
   Name of Portfolio                                Total                         where Advisory   where Advisory
      Manager or               Type of          No. of Accounts       Total      Fee is Based on    Fee is Based
      Team Member              Accounts             Managed           Assets       Performance     on Performance
------------------------- ------------------- ------------------- -------------- ----------------- ----------------
                                                                                           
------------------------- ------------------- ------------------- -------------- ----------------- ----------------
1.  Mario Gabelli           Registered                23             $15.8B             7               $5.6B
                            Investment
                            Companies:
------------------------- ------------------- ------------------- -------------- ----------------- ----------------
                            Other Pooled              12             $269.6M            11             $118.6M
                            Investment
                            Vehicles:
------------------------- ------------------- ------------------- -------------- ----------------- ----------------
                            Other Accounts:          1991            $10.6B             6               $1.6B
------------------------- ------------------- ------------------- -------------- ----------------- ----------------
2.  Kevin Dreyer            Registered                1               $23M              0                $0
                            Investment
                            Companies:
------------------------- ------------------- ------------------- -------------- ----------------- ----------------
                            Other Pooled              0                $0               0                $0
                            Investment
                            Vehicles:
------------------------- ------------------- ------------------- -------------- ----------------- ----------------
                            Other Accounts:           0                $0               0                $0
------------------------- ------------------- ------------------- -------------- ----------------- ----------------
3.  Jeff Jonas              Registered                0                $0               0                $0
                            Investment
                            Companies:
------------------------- ------------------- ------------------- -------------- ----------------- ----------------
                            Other Pooled              0                $0               0                $0
                            Investment
                            Vehicles:
------------------------- ------------------- ------------------- -------------- ----------------- ----------------
                            Other Accounts:           0                $0               0                $0
------------------------- ------------------- ------------------- -------------- ----------------- ----------------


POTENTIAL CONFLICTS OF INTEREST

Actual or apparent conflicts of interest may arise when a Portfolio Manager also
has  day-to-day  management  responsibilities  with respect to one or more other
accounts. These potential conflicts include:

ALLOCATION OF LIMITED TIME AND ATTENTION.  Because the portfolio managers manage
many  accounts,  they may not be able to  formulate  as  complete a strategy  or
identify equally attractive investment  opportunities for each of those accounts
as might be the  case if they  were to  devote  all of  their  attention  to the
management of only a few accounts.

ALLOCATION  OF  LIMITED  INVESTMENT  OPPORTUNITIES.  If the  portfolio  managers
identify an investment  opportunity that may be suitable for multiple  accounts,
the Fund may not be able to take full advantage of that opportunity  because the
opportunity  may be  allocated  among  all or many of  these  accounts  or other
accounts managed primarily by other portfolio managers of the Adviser, and their
affiliates.


PURSUIT OF DIFFERING STRATEGIES.  At times, the portfolio managers may determine
that an investment  opportunity may be appropriate for only some of the accounts
for which they exercises investment  responsibility,  or may decide that certain
of these accounts  should take differing  positions with respect to a particular
security.  In these  cases,  the  portfolio  managers  may execute  differing or
opposite transactions for one or more accounts which may affect the market price
of the security or the execution of the  transaction,  or both, to the detriment
of one or more of their accounts.

VARIATION IN COMPENSATION.  A conflict of interest may arise where the financial
or other benefits  available to the portfolio  manager differ among the accounts
that they  manage.  If the  structure  of the  Adviser's  management  fee or the
portfolio manager's  compensation  differs among accounts (such as where certain
accounts pay higher management fees or  performance-based  management fees), the
portfolio  managers may be motivated to favor certain accounts over others.  The
portfolio managers also may be motivated to favor accounts in which they have an
investment interest,  or in which the Adviser, or its affiliates have investment
interests.  In Mr.  Gabelli's case, the Adviser's  compensation and expenses for
the Fund are marginally greater as a percentage of assets than for certain other
accounts and are less than for certain other  accounts  managed by Mr.  Gabelli,
while his personal compensation structure varies with near-term performance to a
greater   degree  in  certain   performance   fee  based   accounts   than  with
on-performance  based  accounts.  In addition,  he has  investment  interests in
several of the funds managed by the Adviser and its affiliates.

The Adviser,  and the Funds have adopted compliance policies and procedures that
are designed to address the various conflicts of interest that may arise for the
Adviser  and their  staff  members.  However,  there is no  guarantee  that such
policies and  procedures  will be able to detect and prevent every  situation in
which an actual or potential conflict may arise.


COMPENSATION STRUCTURE FOR MARIO J. GABELLI
-------------------------------------------

Mr. Gabelli receives incentive-based variable compensation based on a percentage
of net revenues received by the Adviser for managing the Trust. Net revenues are
determined  by  deducting  from  gross  investment  management  fees the  firm's
expenses (other than Mr. Gabelli's  compensation)  allocable to this Trust. Five
closed-end registered investment companies (including this Trust) managed by Mr.
Gabelli have  arrangements  whereby the Adviser will only receive its investment
advisory fee  attributable  to the  liquidation  value of outstanding  preferred
stock (and Mr.  Gabelli would only receive his  percentage of such advisory fee)
if  certain  performance  levels  are met.  Additionally,  he  receives  similar
incentive  based variable  compensation  for managing other accounts  within the
firm and its  affiliates.  This method of  compensation  is based on the premise
that superior  long-term  performance in managing a portfolio should be rewarded
with higher  compensation  as a result of growth of assets through  appreciation
and net investment  activity.  The level of  compensation is not determined with
specific  reference  to the  performance  of any account  against  any  specific
benchmark.  One of the other  registered  investment  companies  managed  by Mr.
Gabelli has a performance  (fulcrum) fee arrangement for which his  compensation
is  adjusted  up or down  based on the  performance  of the  investment  company
relative to an index. Mr. Gabelli manages other accounts with performance  fees.
Compensation  for managing these accounts has two  components.  One component is
based on a percentage of net revenues to the investment adviser for managing the
account.  The second component is based on absolute  performance of the account,
with  respect  to  which a  percentage  of such  performance  fee is paid to Mr.
Gabelli.  As an executive  officer of the  Adviser's  parent  company,  GBL, Mr.
Gabelli  also  receives ten percent of the net  operating  profits of the parent
company. He receives no base salary, no annual bonus, and no stock options.


COMPENSATION STRUCTURE FOR PORTFOLIO MANAGERS OF THE ADVISER OTHER THAN
-----------------------------------------------------------------------
MARIO GABELLI
-------------

The  compensation of the Portfolio  Managers for the Fund is structure to enable
the  Adviser  to  attract  and  retain  highly  qualified   professionals  in  a
competitive  environment.  The Portfolio Managers receive a compensation package
that includes a minimum draw or base salary, equity-based incentive compensation
via awards of stock options, and incentive-based  variable compensation based on
a percentage  of net revenue  received by the Adviser for managing a Fund to the
extent that the amount exceeds a minimum level of compensation. Net revenues are
determined by deducting  from gross  investment  management  fees certain of the
firm's expenses  (other than the respective  Portfolio  Manager's  compensation)
allocable to the respective Fund (the incentive-based  variable compensation for
managing  other  accounts is also based on a  percentage  of net revenues to the
investment  adviser for managing the account).  This method of  compensation  is
based on the premise that superior long-term performance in managing a portfolio
should be  rewarded  with  higher  compensation  as a result of growth of assets
through  appreciation  and net investment  activity.  The level of  equity-based
incentive and incentive-based variable compensation is based on an evaluation by
the  Adviser's  parent,   GBL,  of  quantitative  and  qualitative   performance
evaluation  criteria.  This evaluation takes into account, in a broad sense, the
performance of the accounts managed by the Portfolio  Manager,  but the level of
compensation is not determined with specific reference to the performance of any
account against any specific  benchmark.  Generally,  greater  consideration  is
given to the performance of larger accounts and to longer term  performance over
smaller accounts and short-term performance.

OWNERSHIP OF SHARES IN THE FUND
-------------------------------

Mario Gabelli, Kevin Dreyer, and Jeff Jonas owned $500,001 - $1,000,000;  $0 and
$10,001 - $50,000, respectively, of shares of the Trust as of December 31, 2007.

(B)  Not applicable.



ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
        COMPANY AND AFFILIATED PURCHASERS.

                    REGISTRANT PURCHASES OF EQUITY SECURITIES



============= ========================= ============================= ========================== ===============================
                                                                         (C) TOTAL NUMBER OF         (D) MAXIMUM NUMBER (OR
                                                                          SHARES (OR UNITS)       APPROXIMATE DOLLAR VALUE) OF
                (A) TOTAL NUMBER OF                                     PURCHASED AS PART OF       SHARES (OR UNITS) THAT MAY
                 SHARES (OR UNITS)       (B) AVERAGE PRICE PAID PER   PUBLICLY ANNOUNCED PLANS     YET BE PURCHASED UNDER THE
   PERIOD            PURCHASED                SHARE (OR UNIT)                OR PROGRAMS               PLANS OR PROGRAMS
============= ========================= ============================= ========================== ===============================
                                                                                     
Month #1      Common - N/A              Common - N/A                  Common - N/A               Common - 8,474,459
07/01/07
through       Preferred - N/A           Preferred - N/A               Preferred - N/A            Preferred - N/A
07/31/07
============= ========================= ============================= ========================== ==============================
Month #2      Common - N/A              Common - N/A                  Common - N/A               Common - 8,474,459
08/01/07
through       Preferred - N/A           Preferred - N/A               Preferred - N/A            Preferred - N/A
08/31/07
============= ========================= ============================= ========================== ==============================
Month #3      Common - N/A              Common - N/A                  Common - N/A               Common - 8,474,459
09/01/07
through       Preferred - N/A           Preferred - N/A               Preferred - N/A            Preferred - N/A
09/30/07
============= ========================= ============================= ========================== ==============================
Month #4      Common - N/A              Common - N/A                  Common - N/A               Common - 8,474,459
10/01/07
through       Preferred - N/A           Preferred - N/A               Preferred - N/A            Preferred - N/A
10/31/07




                                                                                     

============= ========================= ============================= ========================== ==============================
Month #5      Common - N/A              Common - N/A                  Common - N/A               Common - 8,474,459
11/01/07
through       Preferred - N/A           Preferred - N/A               Preferred - N/A            Preferred - N/A
11/30/07
============= ========================= ============================= ========================== ==============================
Month #6      Common - N/A              Common - N/A                  Common - N/A               Common - 8,474,459
12/01/07
through       Preferred - N/A           Preferred - N/A               Preferred - N/A            Preferred - N/A
12/31/07
============= ========================= ============================= ========================== ==============================
Total         Common - N/A              Common - N/A                  Common - N/A               N/A

              Preferred - N/A           Preferred - N/A               Preferred - N/A
============= ========================= ============================= ========================== ==============================


Footnote  columns  (c)  and  (d) of  the  table,  by  disclosing  the  following
information in the aggregate for all plans or programs publicly announced:

a.   The date each plan or program was  announced - The notice of the  potential
     repurchase  of common and preferred  shares occurs  quarterly in the Fund's
     quarterly report in accordance with Section 23(c) of the Investment Company
     Act of 1940, as amended.
b.   The dollar  amount (or share or unit  amount)  approved - Any or all common
     shares  outstanding  may be  repurchased  when the Fund's common shares are
     trading  at a  discount  of 10% or more  from  the net  asset  value of the
     shares.
     Any or all preferred shares  outstanding may be repurchased when the Fund's
     preferred  shares are  trading at a discount  to the  liquidation  value of
     $25.00.
c.   The  expiration  date  (if  any)  of  each  plan or  program  - The  Fund's
     repurchase plans are ongoing.
d.   Each plan or program  that has  expired  during  the period  covered by the
     table - The Fund's repurchase plans are ongoing.
e.   Each plan or program the registrant  has  determined to terminate  prior to
     expiration,  or under which the registrant  does not intend to make further
     purchases. - The Fund's repurchase plans are ongoing.


ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material  changes to the procedures by which the shareholders
may  recommend  nominees  to the  registrant's  Board of  Trustees,  where those
changes were  implemented  after the  registrant  last  provided  disclosure  in
response to the  requirements  of Item  407(c)(2)(iv)  of Regulation S-K (17 CFR
229.407) (as required by Item  22(b)(15) of Schedule 14A (17 CFR  240.14a-101)),
or this Item.


ITEM 11. 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  second fiscal quarter
     of the period  covered by this report that has materially  affected,  or is
     reasonably likely to materially affect,  the registrant's  internal control
     over financial reporting.


ITEM 12. EXHIBITS.

  (a)(1)  Code of ethics,  or any  amendment  thereto,  that  is  the subject of
          disclosure required by Item 2 is attached hereto.

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

  (a)(3)  Not applicable.

     (b)  Certifications  pursuant  to Rule  30a-2(b)  under  the  1940  Act and
          Section 906 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     03/07/08
    ----------------------------------------------------------------------------


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     03/07/08
    ----------------------------------------------------------------------------


* Print the name and title of each signing officer under his or her signature.