THE
GABELLI
WESTWOOD
FUNDS
EQUITY FUND
BALANCED FUND
INTERMEDIATE BOND FUND
SMALLCAP EQUITY FUND
REALTY FUND
MIGHTY MITES(SM) FUND
SEMI-ANNUAL REPORT
MARCH 31, 2000
<PAGE>
THE GABELLI WESTWOOD FUNDS
==========================
SEMI-ANNUAL REPORT
MARCH 31, 2000
EQUITY FUND SMALLCAP EQUITY FUND
BALANCED FUND REALTY FUND
INTERMEDIATE BOND FUND MIGHTY MITES(SM) FUND
TO OUR SHAREHOLDERS,
We are pleased to provide the March 31, 2000, semi-annual report for the
Gabelli Westwood Funds, including the Equity Fund, Balanced Fund, Intermediate
Bond Fund, SmallCap Equity Fund, Realty Fund and Mighty Mites(SM) Fund.
MARKET COMMENTARY
The "new economy", which emerged in 1999, continued to be the driving
force in the equity market during most of the last six months. Reduced fears of
a Y2K disruption, strong earnings reports, and investor enthusiasm for all
things technological carried over from the fourth quarter of 1999 into the first
quarter of the new millennium. The technology-driven Nasdaq and Russell 2000
indices hit new highs early in 2000, while the "old economy" Dow Jones
Industrial Average did not fare as well. Even the Standard &Poor's ("S&P") 500
Index, which has components of both the "old" and the "new" economies, did not
perform nearly as well through February of this year. By early March, the
out-performance of three Nasdaq sectors (biotech, telecommunications and
computer) versus the S&P 500 reached historic levels, attracting tens of
billions of dollars into aggressive growth funds.
The narrow focus of equity performance abruptly reversed toward the end
of the first quarter. The rally in technology stocks began to unwind on March
14, and the Nasdaq corrected nearly 10% by quarter end. The disparity in
performance between large and small companies narrowed. The S&P 500 gained 10.3%
from March 14 to quarter end, while the Russell 2000 lost 12.7%. The Westwood
Funds were positioned to benefit from this "return to sanity" in stock
valuations.
The U.S. economy showed few signs of slowing down during the last six
months, driven by an expanding manufacturing sector and robust consumer
spending. Low unemployment and positive real inflation-adjusted wage growth
fueled continued high levels of consumer confidence and spending. To ward off
potential inflation, the Federal Reserve Board (the "Fed") maintained its 1999
gradualist approach toward raising short term interest rates, tightening 0.25%
in November, in February and again in March. U.S. Treasury interest
rates rose over 1% for maturities under two years, while rates on
intermediate maturities increased proportionately less. The yield
on the 30-year bond, however, declined 0.22%, as bonds rallied
- --------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Total returns and average
annual returns reflect changes in share price and reinvestment of dividends and
are net of expenses. The net asset value of the Fund is reduced on the
ex-dividend (payment) date by the amount of the dividend paid. Investment
returns and the principal value of an investment will fluctuate. When shares are
redeemed they may be worth more or less than their original cost. Performance of
service class shares does not reflect the effect of the maximum 4% front end
sales charge. (See performance table on page 27.)
<PAGE>
after the Treasury announced a plan to reduce the supply of longer dated issues
this year as a result of the budget surplus. The rise in short-term rates
accompanied by a decline in longer rates resulted in an inverted yield curve by
quarter end.
EQUITY FUND
For the six months ended March 31, 2000, the Equity Fund Retail Class'
total return was 13.93% and the Service Class' total return was 13.72%. The
Standard & Poor's ("S&P") 500 Index and the Lipper Multi-Cap Value Fund Average
had total returns of 17.50% and 5.64%, respectively, over the same six-month
period. The S&P 500 Index is an unmanaged indicator of stock market performance,
while the Lipper Average reflects the average performance of mutual funds
classified in this particular category. The Retail Class was up 18.22% and the
Service Class was up 17.89% over the trailing twelve-month period. The S&P 500
and Lipper Multi-Cap Value Fund Average rose 17.93% and 8.13%, respectively,
over the same twelve-month period.
For the ten-year period ended March 31, 2000, the Retail Class' total
return averaged 16.12% annually versus average annual total returns of 18.82%
and 13.40% for the S&P 500 and Lipper Multi-Cap Value Fund Average,
respectively. Since their respective inception dates of January 2, 1987 and
January 28, 1994 through March 31, 2000, the Retail Class had a cumulative total
return of 571.16% and the Service Class had a cumulative total return of
192.35%, which equate to average annual total returns of 15.45% and 18.96%,
respectively.
The Fund had been positioned for a renewal of interest in companies whose
future growth potential had not been fully priced by the market. The Fund's
holdings in consumer cyclicals, energy and healthcare were some of the strongest
drivers of performance. We have been selective in the technology sector, the
source of several top performers. The Fund also benefited from merger
announcements -- evidence of the continuation of the trend toward consolidation
to maintain a competitive edge. Some of the top performing stocks were
technology holdings Hewlett-Packard and Sterling Software (acquired by Computer
Associates), consumer cyclicals Walt Disney and Time Warner (to be purchased by
America Online), and healthcare company Pharmacia (the company resulting from
Pharmacia & Upjohn's purchase of Monsanto). The Fund's long-term performance
record continues to be recognized by financial publications such as Morningstar,
which recently featured the fund in an article entitled "Buried Treasurers".
BALANCED FUND
For the six months ended March 31, 2000, the Balanced Fund Retail Class'
total return was 8.63% and the Service Class' total return was 8.53%. A blended
composite of 60% of the Standard & Poor's ("S&P") 500 and 40% of the Lehman
Brothers Government/Corporate Bond ("LBG/C") and the Lipper Balanced Fund
Average had total returns of 10.07% and 10.27%, respectively, over the same
six-month period. Each index is an unmanaged indicator of investment
performance. The Retail Class was up 11.12% and the Service Class was up 10.78%
over the trailing twelve-month period. A blended composite of 60% of the
Standard & Poor's ("S&P") 500 and 40% of the Lehman Brothers
Government/Corporate Bond ("LBG/C") and the Lipper Balanced Fund Average had
total returns of 11.44% and 10.45%, respectively, over the same twelve-month
period. Each index is an unmanaged indicator of investor performance, while the
Lipper Average reflects the average performance of mutual funds classified in
this particular category.
2
<PAGE>
For the five-year period ended March 31, 2000, the Retail Class' total
return averaged 17.31% annually and the Service Class' total return averaged
17.04% annually, versus average annual total returns of 18.90% and 15.34% for
the blended composite of 60% of the S&P 500 and 40% of the LBG/C Index and the
Lipper Balanced Fund Average, respectively. Since their respective inception
dates of October 1, 1991 and April 6, 1993 through March 31, 2000, the Retail
Class had a cumulative total return of 211.28% and the Service Class had a
cumulative total return of 159.00%, which equate to average annual total returns
of 14.28% and 14.59%, respectively.
The Balanced Fund is designed to give an investor exposure to equities
but reduce overall risk through investments in short-to-intermediate term fixed
income securities. Strategies for the Equity and Intermediate Bond Funds that
are discussed in this letter also apply to their respective components in the
Balanced Fund.
INTERMEDIATE BOND FUND
For the six-months ended March 31, 2000, the Intermediate Bond Fund's net
asset value rose 2.48%. The Lehman Brothers Government/Corporate Bond ("LBG/C")
Index and the Lipper Intermediate Investment Grade Debt Fund Average returned
(1.07)% and 1.77%, respectively, over the same six-month period. The Lehman
Brothers Government/Corporate Bond Index is an unmanaged indicator of investment
performance, while the Lipper Average reflects the average performance of mutual
funds classified in this particular category. The Fund was up 1.25% over the
trailing twelve-month period. The LBG/C and the Lipper Intermediate Investment
Grade Debt Fund Average rose 1.70% and 1.38%, respectively, over the same
twelve-month period.
For the five-year period ended March 31, 2000, the Fund's total return
averaged 6.56% annually versus average annual total returns of 7.13% and 6.55%
for the LBG/C Index and the Lipper Intermediate Investment Grade Debt Fund
Average, respectively. Since inception on October 1, 1991 through March 31,
2000, the Fund had a cumulative total return of 66.20%, which equates to an
average annual total return of 6.15%.
Several notable reversals occurred in the U.S. bond market between the
last quarter of 1999 and the opening quarter of 2000: (1) The yield curve
inverted as the Fed raised short-term rates and the Treasury began buying back
longer-term bonds; (2) Treasuries moved from under-performing to out-performing
corporates and mortgages; (3) Bond market returns shifted from negative to
positive territory. These reversals offered opportunities to make adjustments
that were beneficial to the Fund in the areas of interest rate sensitivity and
sector commitments. The top Fund performers over the six month period were
long-maturity Treasuries, corporate notes issued by the World Bank and by Kimco
Realty, and asset-backed securities from Ford Motor Credit and General Motors
Acceptance Corp.
SMALLCAP EQUITY FUND
For the six-months ended March 31, 2000, the SmallCap Equity Fund's total
return was 32.57%. The Russell 2000 Index and the Lipper Small-Cap Growth Fund
Average had total returns of 26.83% and 68.86%, respectively, over the same
six-month period. The Russell 2000 Index is an unmanaged indicator of investment
performance, while the Lipper Average reflects the average performance of mutual
funds in this particular category. The Fund rose 70.34% over the trailing
twelve-month period. The Russell 2000 and the Lipper Small-Cap Growth Fund
Average rose 37.29% and 93.41%, respectively, over the same twelve-month period.
Since inception on April 15, 1997 through March 31, 2000, the Fund had a
cumulative total return of 151.22%, which equate to an average annual total
return of 36.44%.
3
<PAGE>
The small cap equity class out-performed the large cap for the six-month
period, despite the technology swoon in March. Consumer cyclical and interest
sensitive stocks rallied at quarter end when tech and biotech stocks began to
wane. The Fund was positioned to benefit from this paradigm shift with an
over-weighting in consumer cyclicals. After lagging as a sector toward the close
of 1999, energy stocks proved to be the stalwarts of the first quarter, as
investors demanded stocks that would benefit from rising oil prices. Some of the
Fund's top-performing stocks for the period were Protein Design Labs, Brooks
Automation, Cephalon, Credence Systems Corp. and Cytyc Corp. Many small cap
stocks are poised to benefit from the renewed interest in market breadth and
company earnings. Small cap stocks continue to report positive earnings
surprises and valuations remain attractive.
REALTY FUND
For the six-months ended March 31, 2000, the Realty Fund's net asset
value rose 5.57%. The National Association of REITs ("NAREIT") Index and the
Lipper Real Estate Fund Average rose 0.44% and 1.32%, respectively, over the
same six-month period. The NAREIT Index is an unmanaged indicator of investment
performance, while the Lipper Average reflects the average performance of mutual
funds classified in this particular category. The Fund rose 6.81% over the
trailing twelve-month period. The NAREIT Index and the Lipper Real Estate Fund
Average rose 0.76% and 2.87%, respectively, over the same twelve-month period.
Since inception on September 30, 1997 through March 31, 2000, the Fund had a
cumulative total return of (10.87)%, which equates to an average annual total
return of (4.49)%.
While investment flows remained relatively light during the first quarter
of 2000, REIT stocks started acting better. Lack of investor interest, coupled
with tax-loss selling, had contributed to weak fourth quarter performance by a
sector with strong earnings and solid fundamentals. Rising rents and high
occupancy rates have allowed real estate companies to grow steadily. Share
repurchase programs are expected to contribute positively to earnings, with
average yields approaching 10%. New deliveries in almost every property category
are likely to slow throughout 2000, a sign of generally healthy fundamentals.
Many REITs have announced or are actively pursuing new initiatives that will
allow them to unlock the technology potential of real estate for shareholders.
REIT valuations remain attractive, as many are still traded 20% below their net
asset value. We look for the share prices to more accurately reflect the
underlying values of the REITs in 2000. Out-performance is attributed to stock
selection, with the best performing stocks for the period being: Spieker
Properties, Meristar Hospitality Corp., SL Green Realty Corp., Catellus
Development Corp., and Starwood Hotels & Resorts Worldwide.
MIGHTY MITES(SM) FUND
For the six-months ended March 31, 2000, the Mighty Mites Fund's total
return was 24.30%. The Russell 2000 Index and the Lipper Small-Cap Value Fund
Average had total returns of 26.83% and 7.94%, respectively, over the same
six-month period. The Russell 2000 Index is an unmanaged indicator of investment
performance, while the Lipper Average reflects the average performance of mutual
funds in this particular category. The Fund rose 46.28% over the trailing
twelve-month period. The Russell 2000 and the Small-Cap Value Fund Average rose
37.29% and 24.01%, respectively, over the same twelve-month period. Since
inception on May 11, 1998 through March 31, 2000, the Fund had a total return of
61.81%, which equates to an average annual return of 28.95%.
4
<PAGE>
In the first quarter of 2000, small company stocks extended the rally
that began in the fourth quarter of 1999. Technology stocks were the strongest
performers, but other industry groups participated. Buoyed by two quarters of
excellent absolute and relative performance, micro-cap stocks are beginning to
attract much more investor attention. Money is flowing into this long
under-appreciated capitalization sector and providing a performance tailwind.
At issue today is whether small company stocks can continue to outperform
if the broad market cracks under pressure from rising short term interest rates.
In recent years, small company stock rallies have been short-lived, with any
whiff of economic or market problems sending investors scurrying to the exits.
We think it will be different this time around. With the exception of the hot
technology group, small company stocks remain quite reasonably priced relative
to earnings growth rates. The investment public may remain skittish, but with
large financial institutions increasing their commitments to small company
stocks, we should see more stability in this sector.
We don't spend our time or energy trying to determine what the market
will do. We keep ourselves busy identifying small companies with big potential.
If we continue to be successful, we believe the Fund will provide generous long
term returns regardless of the vagaries of the stock market. We still have
plenty of cash available to pursue evolving opportunities and continue to find
small companies that we believe have exceptionally bright business and
investment prospects.
As is usually the case, the Fund's winners this quarter came from a wide
range of industries including technology (Oak Technology and Tetra
Technologies), biotechnology (Matrix Pharmaceutical), gaming (Jackpot
Enterprises), tea (Celestial Seasonings) and auto painting (Earl Scheib). Our
losers were an equally diverse mix including a utility (Florida Public
Utilities) a paint company (Benjamin Moore) and a retailer (Schultz Sav-O
Stores).
CAPITAL MARKET OUTLOOK
Westwood's capital markets analysis remains an important tool for
assessing the risk/reward relationship for the various asset classes in which we
invest on behalf of our shareholders. We see the most likely economic scenario
for 2000 as one of "holding the line." We believe that the manufacturing sector
will continue to rebound as global demand for exports increases. We expect that
global economies, including Japan, will show positive growth. We see consumer
consumption remaining healthy, but moderating to a more sustainable pace as Fed
rate increases take effect later in the year. Inflation may tick up slightly,
but should remain modest.
MINIMUM INITIAL INVESTMENT - $1,000
The Fund's minimum initial investment for both regular and retirement
accounts is $1,000. There are no subsequent investment minimums. No initial
minimum is required for those establishing an Automatic Investment Plan.
MULTI-CLASS SHARES
The Board of Trustees has authorized The Gabelli Westwood Funds to begin
offering Class B and Class C Shares, which will be available at net asset value
and subject to a contingent deferred sales charge if sold within a designated
time period. Our Retail Class will remain no-load and will be redesignated
5
<PAGE>
as Class AAA Shares and the Service Class will be redesignated as Class A
Shares. The Board of Trustees determined that expanding the types of fund shares
available through various distribution options will enhance the ability of the
Funds to attract additional investors.
INTERNET
You can now visit us on the Internet. Our home page at
HTTP://WWW.GABELLI.COM contains information about Gabelli Asset Management Inc.,
the Gabelli Mutual Funds, IRAs, 401(k)s, quarterly reports, closing prices and
other current news. You can send us e-mail at [email protected].
Westwood maintains a website that we encourage you to visit to obtain
further information as well as to share your comments: WWW.WESTWOODGROUP.COM. We
appreciate your confidence in Westwood and our team will continue to work hard
in order to meet your investment objectives.
IN CONCLUSION
The Fund's daily net asset value is available in the financial press and
each evening after 6:00 PM (Eastern Time) by calling 1-800-GABELLI
(1-800-422-3554) or 1-800-WESTWOOD (1-800-937-8966). Please call us during the
business day for further information.
Sincerely,
/s/signature
SUSAN M. BYRNE
President and Chief Investment Officer
April 14, 2000
- -------------------------------------------------------------------------------
NASDAQ SYMBOLS TABLE
- -------------------------------------------------------------------------------
GABELLI WESTWOOD FUND NASDAQ SYMBOL
--------------------- -------------
Equity - Retail WESWX
Balanced - Retail WEBAX
Intermediate Bond WEIBX
SmallCap Equity WESCX
Realty WESRX
Mighty Mites(SM) WEMMX
Equity - Service WEECX
Balanced - Service WEBCX
6
<PAGE>
THE GABELLI WESTWOOD EQUITY FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
================================================================================
SHARES COST VALUE
------ ---- -----
COMMON STOCKS -- 98.5%
AUTOMOTIVE -- 0.8%
48,200 Lear Corp.+ ..................... $ 1,459,812 $ 1,355,625
------------ ------------
BROADCASTING -- 1.4%
40,000 AMFM Inc.+ ...................... 2,111,969 2,485,000
------------ ------------
BUSINESS SERVICES -- 2.8%
77,800 United Parcel Service Inc., Cl. B 4,974,189 4,901,400
------------ ------------
COMPUTER HARDWARE -- 8.2%
178,100 Compaq Computer Corp. ........... 4,939,447 4,741,912
34,600 Hewlett-Packard Co. ............. 2,700,694 4,586,662
43,400 International Business
Machines Corp. ................ 3,721,492 5,121,200
------------ ------------
11,361,633 14,449,774
------------ ------------
COMPUTER SOFTWARE AND SERVICES -- 7.6%
68,600 Electronic Data Systems Corp. ... 3,855,814 4,403,262
53,900 Intuit Inc.+ .................... 2,547,247 2,930,812
25,900 Oracle Corp.+ ................... 328,627 2,021,819
132,900 Sterling Software Inc.+ ......... 2,505,053 4,053,450
------------ ------------
9,236,741 13,409,343
------------ ------------
CONSUMER PRODUCTS -- 2.7%
165,000 Avon Products Inc. .............. 5,108,353 4,795,312
------------ ------------
ENERGY AND UTILITIES -- 16.5%
115,500 Apache Corp. .................... 3,353,072 5,746,125
74,400 Burlington Resources Inc. ....... 2,651,889 2,752,800
196,500 Conoco Inc., Cl. B .............. 5,167,442 5,035,313
73,506 Devon Energy Corp. .............. 2,685,124 3,569,635
30,000 Exxon Mobil Corp. ............... 2,328,333 2,334,375
101,600 Florida Progress Corp. .......... 4,116,061 4,660,900
219,700 Reliant Energy Inc. ............. 5,235,836 5,149,219
------------ ------------
25,537,757 29,248,367
------------ ------------
ENTERTAINMENT -- 5.8%
122,900 Disney (Walt) Co. ............... 3,498,226 5,084,988
51,200 Time Warner Inc. ................ 2,589,575 5,120,000
------------ ------------
6,087,801 10,204,988
------------ ------------
EQUIPMENT AND SUPPLIES -- 2.8%
131,500 Deere & Co. ..................... 5,218,640 4,997,000
------------ ------------
FINANCIAL SERVICES -- 11.0%
103,336 ABN Amro Holding NV, ADR ........ 2,058,922 2,337,977
58,400 Chase Manhattan Corp. ........... 4,230,927 5,091,750
80,675 Citigroup Inc. .................. 2,349,861 4,785,036
119,900 PNC Bank Corp. .................. 5,597,997 5,402,994
43,300 Zions Bancorp ................... 2,315,798 1,802,363
------------ ------------
16,553,505 19,420,120
------------ ------------
FOOD AND BEVERAGE -- 3.9%
78,900 Anheuser Busch Companies Inc. ... 3,839,477 4,911,525
131,300 International Home Foods Inc.+ .. 2,257,358 2,100,800
------------ ------------
6,096,835 7,012,325
------------ ------------
SHARES COST VALUE
------ ---- -----
HEALTH CARE -- 8.6%
86,700 Pharmacia & Upjohn Inc. ......... $ 4,550,835 $ 5,136,975
37,600 SmithKline Beecham plc, ADR ..... 2,073,206 2,483,950
26,000 Warner-Lambert Co. .............. 2,262,357 2,535,000
72,200 WellPoint Health Networks Inc.+ . 4,409,538 5,044,975
------------ ------------
13,295,936 15,200,900
------------ ------------
HOTELS AND GAMING -- 1.5%
98,700 Starwood Hotels & Resorts
Worldwide Inc. ................ 2,371,499 2,590,875
------------ ------------
METALS AND MINING -- 2.7%
69,850 Alcoa Inc. ...................... 3,078,725 4,906,962
------------ ------------
REAL ESTATE INVESTMENT TRUSTS -- 1.7%
35,400 Kimco Realty Corp. .............. 1,367,451 1,327,500
49,600 Vornado Realty Trust ............ 1,825,969 1,661,600
------------ ------------
3,193,420 2,989,100
------------ ------------
RETAIL -- 9.7%
126,800 Federated Department Stores Inc.+ 5,654,483 5,293,900
130,700 Limited Inc. .................... 4,622,827 5,505,738
58,300 Safeway Inc.+ ................... 2,038,672 2,638,075
44,000 Tiffany & Co. ................... 1,386,378 3,679,500
------------ ------------
13,702,360 17,117,213
------------ ------------
TELECOMMUNICATIONS -- 7.9%
65,600 GTE Corp. ....................... 3,092,898 4,657,600
109,250 MCI WorldCom Inc.+ .............. 3,478,238 4,950,391
105,600 SBC Communications Inc. ......... 3,766,969 4,435,200
------------ ------------
10,338,105 14,043,191
------------ ------------
TRANSPORTATION -- 2.9%
97,100 Delta Air Lines Inc. ............ 4,602,777 5,170,575
------------ ------------
TOTAL COMMON STOCKS ............. 144,330,057 174,298,070
------------ ------------
TOTAL INVESTMENTS -- 98.5% ...... $144,330,057 174,298,070
============
OTHER ASSETS AND
LIABILITIES (NET) -- 1.5% ...... 2,585,439
------------
NET ASSETS -- 100.0%
(16,650,265 shares outstanding) $176,883,509
============
--------------------
For Federal tax purposes:
Aggregate cost ................. $144,330,057
============
Gross unrealized appreciation .. $ 32,525,851
Gross unrealized depreciation .. (2,557,838)
------------
Net unrealized appreciation .... $ 29,968,013
============
+ Non-income producing security.
ADR - American Depositary Receipt.
See accompanying notes to financial statements.
7
<PAGE>
THE GABELLI WESTWOOD BALANCED FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
===============================================================================
SHARES COST VALUE
------ ---- -----
COMMON STOCKS -- 62.9%
AUTOMOTIVE -- 0.5%
27,400 Lear Corp.+ ...................... $1,002,196 $ 770,625
---------- ----------
BROADCASTING -- 0.9%
22,000 AMFM Inc.+ ....................... 1,181,514 1,366,750
---------- ----------
BUSINESS SERVICES -- 1.9%
44,500 United Parcel Service Inc., Cl. B 2,849,983 2,803,500
500 Valueclick Inc.+ ................. 9,500 10,469
---------- ----------
2,859,483 2,813,969
---------- ----------
COMPUTER HARDWARE -- 5.2%
84,600 Compaq Computer Corp. ............ 2,348,666 2,252,475
18,700 Hewlett-Packard Co. .............. 1,418,064 2,478,919
24,700 International Business
Machines Corp. ................. 2,201,724 2,914,600
---------- ----------
5,968,454 7,645,994
---------- ----------
COMPUTER SOFTWARE AND SERVICES -- 4.9%
200 Arrowpoint Communications Inc.+ .. 6,800 23,697
37,700 Electronic Data Systems Corp. .... 2,102,463 2,419,869
30,000 Intuit Inc.+ ..................... 1,457,708 1,631,250
14,000 Oracle Corp.+ .................... 173,552 1,092,875
70,400 Sterling Software Inc.+ .......... 1,606,139 2,147,200
---------- ----------
5,346,662 7,314,891
---------- ----------
CONSUMER PRODUCTS -- 1.7%
89,300 Avon Products Inc. ............... 2,781,288 2,595,281
---------- ----------
ENERGY AND UTILITIES -- 10.4%
52,600 Apache Corp. ..................... 1,432,145 2,616,850
42,400 Burlington Resources Inc. ........ 1,529,680 1,568,800
111,500 Conoco Inc., Cl. B ............... 2,928,877 2,857,187
49,538 Devon Energy Corp. ............... 2,312,288 2,405,689
15,000 Exxon Mobil Corp. ................ 1,162,477 1,167,187
54,700 Florida Progress Corp. ........... 2,173,591 2,509,362
100,800 Reliant Energy Inc. .............. 2,472,168 2,362,500
---------- ----------
14,011,226 15,487,575
---------- ----------
ENTERTAINMENT -- 3.6%
61,000 Disney (Walt) Co. ................ 1,678,036 2,523,875
27,700 Time Warner Inc. ................. 1,624,692 2,770,000
---------- ----------
3,302,728 5,293,875
---------- ----------
EQUIPMENT AND SUPPLIES -- 1.9%
73,600 Deere & Co. ...................... 2,844,886 2,796,800
---------- ----------
FINANCIAL SERVICES -- 6.6%
55,654 ABN Amro Holding NV, ADR ......... 1,136,482 1,259,172
28,100 Chase Manhattan Corp. ............ 2,034,226 2,449,969
42,325 Citigroup Inc. ................... 1,319,327 2,510,402
55,100 PNC Bank Corp. ................... 2,576,879 2,482,944
24,800 Zions Bancorp .................... 1,324,472 1,032,300
---------- ----------
8,391,386 9,734,787
---------- ----------
FOOD AND BEVERAGE -- 2.5%
42,300 Anheuser Busch Companies Inc. .... 2,060,022 2,633,175
70,700 International Home Foods Inc.+ ... 1,194,491 1,131,200
---------- ----------
3,254,513 3,764,375
---------- ----------
SHARES COST VALUE
------ ---- -----
HEALTH CARE -- 5.2%
44,500 Pharmacia & Upjohn Inc. .......... $2,379,255 $2,636,625
19,300 SmithKline Beecham plc, ADR ...... 1,262,289 1,275,006
13,000 Warner-Lambert Co. ............... 1,130,846 1,267,500
37,400 WellPoint Health Networks Inc.+ .. 2,274,684 2,613,325
---------- ----------
7,047,074 7,792,456
---------- ----------
HOTELS AND GAMING -- 0.9%
51,500 Starwood Hotels & Resorts
Worldwide Inc. ................. 1,604,380 1,351,875
---------- ----------
METALS AND MINING -- 1.9%
39,100 Alcoa Inc. ....................... 1,773,467 2,746,775
---------- ----------
REAL ESTATE INVESTMENT TRUSTS -- 1.8%
37,900 Kimco Realty Corp. ............... 1,484,160 1,421,250
36,700 Vornado Realty Trust ............. 1,369,664 1,229,450
---------- ----------
2,853,824 2,650,700
---------- ----------
RETAIL -- 6.0%
61,400 Federated Department Stores Inc.+ 2,721,065 2,563,450
64,300 Limited Inc. ..................... 2,304,229 2,708,637
33,500 Safeway Inc.+ .................... 1,365,745 1,515,875
25,100 Tiffany & Co. .................... 750,611 2,098,987
---------- ----------
7,141,650 8,886,949
---------- ----------
TELECOMMUNICATIONS -- 5.0%
35,600 GTE Corp. ........................ 1,852,356 2,527,600
55,400 MCI WorldCom Inc.+ ............... 1,666,576 2,510,313
56,700 SBC Communications Inc. .......... 2,115,372 2,381,400
---------- ----------
5,634,304 7,419,313
---------- ----------
TRANSPORTATION -- 2.0%
54,600 Delta Air Lines Inc. ............. 2,586,644 2,907,450
---------- ----------
TOTAL COMMON STOCKS .............. 79,585,679 93,340,440
---------- ----------
PRINCIPAL
AMOUNT
- ---------
ASSET BACKED SECURITIES -- 3.2%
$ 51,835 EQCC Home Equity Loan Trust 93-3
Cl. A, 5.15%, 09/15/08 ........... 49,849 49,929
1,680,000 Ford Motor Credit Auto Loan Master
Trust 95-1 Cl. A, 6.50%, 08/15/02 1,688,532 1,679,840
115,318 GMAC Grantor Trust 97-A Cl. A,
6.50%, 04/15/02 .................. 115,538 115,394
1,000,000 GS Mortgage Securities Corp. II
97-GL Cl. A2D, 6.94%, 07/13/30 ... 1,012,490 968,950
1,000,000 GS Mortgage Securities Corp. II
98-GLII Cl. A2, 6.56%, 04/13/31 .. 1,009,664 938,510
1,000,000 Premier Auto Trust 1998-1A4,
5.70%, 10/06/02 .................. 999,925 986,505
---------- ----------
TOTAL ASSET BACKED SECURITIES .... 4,875,998 4,739,128
---------- ----------
See accompanying notes to financial statements.
8
<PAGE>
THE GABELLI WESTWOOD BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2000 (UNAUDITED)
===============================================================================
PRINCIPAL
AMOUNT COST VALUE
- --------- ---- -----
CORPORATE BONDS -- 9.7%
DIVERSIFIED INDUSTRIAL -- 0.9%
$1,455,000 Tyco International Ltd.,
6.38%, 06/15/05 ............. $ 1,447,379 $ 1,369,955
------------ ------------
ENERGY AND UTILITIES -- 1.0%
1,500,000 Conoco Inc.,
5.90%, 04/15/04 ............. 1,417,378 1,428,003
------------ ------------
FINANCIAL SERVICES -- 1.1%
850,000 Golden State Holdings,
7.13%, 08/01/05 ............. 842,706 758,872
920,000 Nipsco Capital Markets Inc.,
7.39%, 04/01/04 ............. 941,871 878,287
------------ ------------
1,784,577 1,637,159
------------ ------------
REAL ESTATE INVESTMENT TRUSTS -- 2.0%
1,600,000 Archstone Communities Trust,
7.20%, 03/01/13 ............. 1,536,141 1,436,384
1,500,000 Kimco Realty Corp.,
7.46%, 05/29/07 ............. 1,538,312 1,462,980
------------ ------------
3,074,453 2,899,364
------------ ------------
RETAIL -- 2.6%
1,625,000 Neiman Marcus Group Inc.,
6.65%, 06/01/08 ............. 1,623,380 1,470,820
1,620,000 Staples Inc.,
7.13%, 08/15/07 ............. 1,643,561 1,557,662
870,000 Wal-Mart Stores Inc.,
7.50%, 05/15/04 ............. 928,282 884,403
------------ ------------
4,195,223 3,912,885
------------ ------------
TELECOMMUNICATIONS -- 2.1%
1,785,000 GTE Corp.,
6.46%, 04/15/08 ............. 1,808,955 1,682,684
1,515,000 MCI WorldCom Inc.,
6.40%, 08/15/05 ............. 1,475,299 1,448,120
------------ ------------
3,284,254 3,130,804
------------ ------------
TOTAL CORPORATE BONDS ......... 15,203,264 14,378,170
------------ ------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 6.2%
FEDERAL HOME LOAN BANK -- 1.0%
1,500,000 Federal Home Loan Bank,
5.88%, 09/17/01 ............. 1,498,185 1,479,144
------------ ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 5.0%
Federal National Mortgage Association,
1,700,000 6.25%, 11/15/02 ............. 1,690,860 1,668,448
2,600,000 6.50%, 08/15/04 ............. 2,588,217 2,544,461
1,500,000 6.00%, 05/15/08 ............. 1,440,110 1,392,831
1,000,000 6.50%, 04/29/09 ............. 959,203 939,950
861,763 6.00%, 05/01/11 ............. 852,221 812,193
------------ ------------
7,530,611 7,357,883
------------ ------------
PRINCIPAL
AMOUNT COST VALUE
- --------- ---- -----
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 0.2%
$ 372,257 GNMA, Pool #344946,
7.00%, 06/15/$3 ............. $ 378,606 $ 363,096
------------ ------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS ................. 9,407,402 9,200,123
------------ ------------
U.S. GOVERNMENT OBLIGATIONS -- 18.4%
U.S. TREASURY NOTES -- 18.4%
U.S. Treasury Notes,
2,510,000 6.38%, 05/15/00 ............. 2,512,408 2,513,138
645,000 7.75%, 02/15/01 ............. 656,060 652,659
2,220,000 5.75%, 06/30/01 ............. 2,222,686 2,199,882
1,575,000 6.63%, 06/30/01 ............. 1,595,459 1,575,984
1,250,000 6.25%, 01/31/02 ............. 1,242,403 1,243,750
6,300,000 6.63%, 04/30/02 ............. 6,409,111 6,311,813
1,250,000 6.38%, 08/15/02 ............. 1,267,262 1,246,875
2,000,000 6.00%, 08/15/04 ............. 2,001,117 1,974,376
1,100,000 7.50%, 02/15/05 ............. 1,155,656 1,152,594
1,445,000 6.63%, 05/15/07 ............. 1,478,514 1,473,449
3,800,000 6.13%, 08/15/07 ............. 3,749,829 3,765,564
3,320,000 6.00%, 08/15/09 ............. 3,283,036 3,278,500
------------ ------------
27,573,541 27,388,584
------------ ------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS .................. 27,573,541 27,388,584
------------ ------------
TOTAL INVESTMENTS -- 100.4% ... $136,645,884 149,046,445
============
OTHER ASSETS AND
LIABILITIES (NET) -- (0.4)% .. (580,624)
------------
NET ASSETS -- 100.0%
(12,361,781 shares outstanding) $148,465,821
============
-------------------
For Federal tax purposes:
Aggregate cost ............... $136,645,884
============
Gross unrealized appreciation $ 15,635,616
Gross unrealized depreciation (3,235,055)
------------
Net unrealized appreciation .. $ 12,400,561
============
+ Non-income producing security.
ADR - American Depositary Receipt.
See accompanying notes to financial statements.
9
<PAGE>
THE GABELLI WESTWOOD INTERMEDIATE BOND FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
===============================================================================
PRINCIPAL
AMOUNT COST VALUE
- --------- ---- -----
ASSET BACKED SECURITIES -- 5.9%
$ 19,439 EQCC Home Equity Loan Trust
93-3 Cl. A,
5.15%, 09/15/08 .................. $ 19,424 $ 18,724
100,000 Ford Motor Credit AutoLoan
Master Trust 95-1 Cl. A,
6.50%, 08/15/02 .................. 99,901 99,990
19,712 GMAC Grantor Trust 97-A Cl. A,
6.50%, 04/15/02 .................. 19,750 19,725
225,000 GS Mortgage Securities Corp. II
97-GL Cl. A2D,
6.94%, 07/13/30 .................. 231,873 218,014
---------- ----------
TOTAL ASSET BACKED
SECURITIES ....................... 370,948 356,453
---------- ----------
CORPORATE BONDS -- 27.5%
DIVERSIFIED INDUSTRIAL -- 2.4%
150,000 Tyco International Ltd.,
6.38%, 06/15/05 .................. 154,528 141,232
---------- ----------
ENERGY AND UTILITIES -- 3.5%
125,000 Conoco Inc.,
5.90%, 04/15/04 .................. 118,115 119,000
50,000 Forman Petroleum Corp.,
13.50%, 06/01/04+ (a) ............ 50,511 16,000
75,610 Niagara Mohawk Power Corp.,
7.38%, 07/01/03 .................. 76,831 73,732
---------- ----------
245,457 208,732
---------- ----------
FINANCIAL SERVICES -- 6.0%
150,000 Golden State Holdings,
7.13%, 08/01/05 .................. 149,493 133,918
200,000 International Bank for
Reconstruction & Development,
8.63%, 10/15/16 .................. 258,726 227,908
---------- ----------
408,219 361,826
---------- ----------
REAL ESTATE INVESTMENT TRUSTS -- 3.5%
150,000 Archstone Communities Trust,
7.20%, 03/01/13 .................. 144,479 134,661
75,000 Kimco Realty Corp.,
7.46%, 05/29/07 .................. 77,736 73,149
---------- ----------
222,215 207,810
---------- ----------
RETAIL -- 8.0%
120,000 Neiman Marcus Group Inc.,
6.65%, 06/01/08 .................. 119,880 108,614
175,000 Staples Inc.,
7.13%, 08/15/07 .................. 174,721 168,266
200,000 Wal-Mart Stores Inc.,
7.50%, 05/15/04 .................. 216,810 203,311
---------- ----------
511,411 480,191
---------- ----------
SPECIALTY CHEMICALS -- 0.8%
50,000 du Pont de Nemours (E.I.) & Co.,
9.15%, 04/15/00 .................. 50,042 50,029
---------- ----------
TELECOMMUNICATIONS -- 3.3%
50,000 GTE Corp.,
6.46%, 04/15/08 .................. 50,671 47,134
160,000 MCI WorldCom Inc.,
6.40%, 08/15/05 .................. 155,807 152,937
---------- ----------
206,478 200,071
---------- ----------
TOTAL CORPORATE BONDS ............. 1,798,350 1,649,891
---------- ----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 14.7%
FEDERAL HOME LOAN BANK -- 4.5%
$275,000 Federal Home Loan Bank,
5.88%, 09/17/01 .................. $ 274,667 $ 271,176
---------- ----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 10.2%
FNMA,
275,000 6.25%, 11/15/02 .................. 271,274 269,898
225,000 7.13%, 03/15/07 .................. 224,433 225,108
126,503 FNMA, Pool #344800,
6.00%, 05/01/11 .................. 125,102 119,226
---------- ----------
620,809 614,232
---------- ----------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS ............... 895,476 885,408
---------- ----------
U.S. GOVERNMENT OBLIGATIONS -- 49.9%
U.S. TREASURY BONDS -- 21.6%
U.S. Treasury Bonds,
120,000 7.13%, 02/15/23 .................. 123,894 134,288
345,000 7.25%, 05/15/16 .................. 370,443 381,441
775,000 6.13%, 11/15/27 .................. 801,259 782,508
---------- ----------
1,295,596 1,298,237
---------- ----------
U.S. TREASURY NOTES -- 28.3%
U.S. Treasury Notes,
175,000 5.75%, 11/15/00 .................. 176,569 174,453
270,000 5.75%, 06/30/01 .................. 267,584 267,553
680,000 6.25%, 06/30/02 .................. 695,444 675,750
270,000 6.25%, 02/15/03 .................. 277,034 268,650
115,000 6.00%, 08/15/04 .................. 115,292 113,527
75,000 7.50%, 02/15/05 .................. 77,684 78,586
115,000 6.63%, 05/15/07 .................. 114,808 117,264
---------- ----------
1,724,415 1,695,783
---------- ----------
TOTAL U.S. GOVERNMENT
OBLIGATIONS ...................... 3,020,011 2,994,020
---------- ----------
SHARES
------
WARRANTS -- 0.0%
ENERGY AND UTILITIES -- 0.0%
50 Forman Petroleum Corp.,
13.50%, 06/01/04+ (a) ............. 1 1
---------- ----------
TOTAL
INVESTMENTS -- 98.0% $6,084,786 5,885,773
==========
OTHER ASSETS AND
LIABILITIES (NET) -- 2.0% ......... 117,052
----------
NET ASSETS -- 100.0%
(602,201 shares outstanding) ...... $6,002,825
==========
--------------------
For Federal tax purposes:
Aggregate cost..................... $6,084,786
==========
Gross unrealized appreciation ..... $ 26,399
Gross unrealized depreciation ..... (225,412)
----------
Net unrealized depreciation ....... $ (199,013)
==========
(a) Security fair valued as determined by the Board of Trustees.
+ Non-income producing security.
See accompanying notes to financial statements.
10
<PAGE>
THE GABELLI WESTWOOD SMALLCAP EQUITY FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
===============================================================================
SHARES COST VALUE
------ ---- -----
COMMON STOCKS -- 94.3%
BROADCASTING -- 3.4%
23,300 Acme Communications Inc.+ ...... $ 688,949 $ 532,987
9,200 Radio One Inc.+ ................ 594,610 612,950
----------- -----------
1,283,559 1,145,937
----------- -----------
BUSINESS SERVICES -- 6.8%
26,900 Avis Rent A Car Inc.+ .......... 521,729 474,112
22,200 eLoyalty Corp.+ ................ 537,688 530,025
32,800 Luminant Worldwide Corp.+ ...... 942,271 545,300
13,100 Paradyne Networks Inc.+ ........ 408,116 406,100
13,200 ProBusiness Services Inc.+ ..... 378,685 340,725
----------- -----------
2,788,489 2,296,262
----------- -----------
COMMUNICATIONS EQUIPMENT -- 6.1%
17,175 Dycom Industries Inc.+ ......... 468,138 837,281
9,900 Radiant Systems Inc.+ .......... 516,767 622,462
9,800 Tut Systems Inc.+ .............. 492,113 583,712
----------- -----------
1,477,018 2,043,455
----------- -----------
COMPUTER SOFTWARE AND SERVICES -- 15.9%
10,400 4Front Technologies Inc. ....... 311,512 215,800
6,800 AppNet Inc.+ ................... 233,156 319,600
6,700 Aspen Technology Inc.+ ......... 291,457 270,513
20,700 Digital River Inc.+ ............ 519,171 445,050
3,500 DSET Corp.+ .................... 91,912 64,531
9,600 GRIC Communications Inc.+ ...... 279,323 324,000
4,300 IONA Technologies plc, ADR+ .... 207,537 318,200
17,700 iVillage Inc.+ ................. 370,200 277,392
5,900 Mission Critical Software Inc.+ 371,949 360,638
7,300 Open Market Inc.+ .............. 284,805 187,975
25,350 Pegasus Systems Inc.+ .......... 568,735 400,847
12,000 SERENA Software Inc.+ .......... 308,383 382,500
12,400 SmartForce plc, ADR+ ........... 253,719 568,850
16,800 Stamps.com Inc.+ ............... 587,707 324,450
4,900 TSI International Software Ltd.+ 194,921 407,006
7,200 Verity Inc.+ ................... 139,554 293,400
3,300 Viador Inc.+ ................... 184,214 161,288
----------- -----------
5,198,255 5,322,040
----------- -----------
ELECTRONICS -- 11.0%
7,500 Brooks Automation Inc.+ ........ 153,862 468,750
8,500 Credence Systems Corp.+ ........ 434,182 1,063,563
8,900 PRI Automation Inc.+ ........... 362,698 544,013
8,800 Semtech Corp.+ ................. 256,711 563,750
6,625 TranSwitch Corp.+ .............. 115,980 636,828
7,300 Zoran Corp.+ ................... 351,520 411,081
----------- -----------
1,674,953 3,687,985
----------- -----------
ENERGY AND UTILITIES -- 5.2%
21,300 Cabot Oil & Gas Corp., Cl. A ... 353,184 384,731
20,500 Piedmont Natural Gas Co. Inc. .. 619,650 534,281
17,000 Stone Energy Corp.+ ............ 728,051 837,250
----------- -----------
1,700,885 1,756,262
----------- -----------
EQUIPMENT AND SUPPLIES -- 1.1%
19,500 Mobile Mini Inc.+ .............. 326,005 380,250
----------- -----------
FINANCIAL SERVICES -- 3.3%
14,962 Commerce Bancorp Inc. .......... 581,223 553,594
28,700 Southwest Bancorp of Texas Inc.+ 516,476 557,856
----------- -----------
1,097,699 1,111,450
----------- -----------
SHARES COST VALUE
------ ---- -----
FOOD AND BEVERAGE -- 5.6%
43,400 CEC Entertainment Inc.+ ........ $ 935,524 $ 1,177,225
32,550 Jack in the Box Inc.+ .......... 744,964 693,722
----------- -----------
1,680,488 1,870,947
----------- -----------
HEALTH CARE -- 15.7%
37,300 Advance Paradigm Inc.+ ......... 754,865 442,938
10,800 Biovail Corp.+ ................. 413,505 478,575
11,800 Cephalon Inc.+ ................. 326,362 442,500
11,400 Coulter Pharmaceutical Inc. .... 191,518 347,700
12,200 Cytyc Corp.+ ................... 251,374 588,650
6,500 Genset SA, ADR+ ................ 298,292 211,148
9,600 ILEX Oncology Inc.+ ............ 422,477 403,200
7,100 Medicis Pharmaceutical Corp., Cl. A+ 229,222 284,000
4,700 MiniMed Inc.+ .................. 256,542 608,650
5,600 Protein Design Labs Inc. ....... 439,678 445,200
22,900 Province Healthcare Co.+ ....... 541,577 655,513
7,600 Varian Medical Systems Inc. .... 294,866 346,750
----------- -----------
4,420,278 5,254,824
----------- -----------
HOTELS AND GAMING -- 1.0%
20,200 Vail Resorts Inc.+ ............. 409,267 325,725
----------- -----------
METALS AND MINING -- 1.5%
12,800 Stillwater Mining Co.+ ......... 339,860 512,000
----------- -----------
PUBLISHING -- 1.0%
13,300 Penton Media Inc. .............. 259,537 345,800
----------- -----------
RETAIL -- 8.5%
51,400 Ames Department Stores Inc.+ ... 1,235,391 1,262,513
17,900 Barnes & Noble Inc.+ ........... 395,606 411,700
20,500 Chico's FAS Inc.+ .............. 256,355 347,539
24,225 Cost Plus Inc.+ ................ 510,548 819,108
----------- -----------
2,397,900 2,840,860
----------- -----------
TELECOMMUNICATIONS -- 5.6%
8,500 Ditech Communications Corp.+ ... 601,268 901,531
3,500 NorthEast Optic Network Inc.+ .. 337,620 295,969
16,100 Z-Tel Technologies Inc.+ ....... 522,722 676,200
----------- -----------
1,461,610 1,873,700
----------- -----------
WIRELESS COMMUNICATIONS -- 2.6%
29,600 Brightpoint Inc.+ .............. 328,299 362,600
4,000 Powerwave Technologies Inc.+ ... 291,512 500,000
----------- -----------
619,811 862,600
----------- -----------
TOTAL COMMON STOCKS ............ 27,135,614 31,630,097
----------- -----------
TOTAL INVESTMENTS -- 94.3% ..... $27,135,614 31,630,097
===========
OTHER ASSETS AND
LIABILITIES (NET) -- 5.7% ..... 1,917,431
-----------
NET ASSETS -- 100.0%
(1,481,143 shares outstanding) $33,547,528
===========
--------------------
For Federal tax purposes:
Aggregate cost ................ $27,135,614
===========
Gross unrealized appreciation . $ 6,723,633
Gross unrealized depreciation . (2,229,150)
-----------
Net unrealized appreciation ... $ 4,494,483
===========
+ Non-income producing security.
ADR - American Depositary Receipt.
See accompanying notes to financial statements.
11
<PAGE>
THE GABELLI WESTWOOD REALTY FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
================================================================================
SHARES COST VALUE
------ ---- -----
COMMON STOCKS -- 96.4%
REAL ESTATE INVESTMENT TRUSTS -- 96.4%
APARTMENTS -- 23.3%
1,500 Apartment Investment &
Management Co., Cl. A ......... $ 55,667 $ 57,281
2,600 Archstone Communities Trust .... 54,524 51,837
1,700 Avalon Bay Communities Inc. .... 60,536 62,262
1,000 BRE Properties Inc., Cl. A ..... 24,625 25,812
600 Camden Property Trust .......... 15,774 16,238
1,800 Equity Residential Properties Trust 80,196 72,338
500 Essex Property Trust Inc. ...... 15,576 18,000
800 Post Properties Inc. ........... 29,809 32,250
1,000 Smith (Charles E.) Residential
Realty Inc. ................... 34,074 36,125
----------- -----------
370,781 372,143
----------- -----------
DIVERSIFIED PROPERTY -- 17.4%
1,100 Bedford Property Investors Inc. 20,407 17,669
2,600 Catellus Development Corp.+ .... 41,570 36,075
1,000 Colonial Properties Trust ...... 28,078 23,750
2,766 Duke Realty Investments Inc. ... 60,659 52,900
1,500 Liberty Property Trust ......... 34,968 35,906
1,300 Spieker Properties Inc. ........ 48,850 57,850
1,600 Vornado Realty Trust ........... 59,879 53,600
----------- -----------
294,411 277,750
----------- -----------
FINANCIAL SERVICES -- 2.0%
1,400 Franchise Finance Corp. ........ 31,732 32,550
----------- -----------
HEALTH CARE -- 0.8%
800 Healthcare Realty Trust Inc. ... 17,201 13,400
----------- -----------
HOTELS -- 6.1%
2,800 Host Marriott Corp. ............ 33,039 24,850
1,925 Meristar Hospitality Corp. ..... 42,173 33,567
1,500 Starwood Hotels & Resorts
Worldwide Inc. ................ 44,367 39,375
----------- -----------
119,579 97,792
----------- -----------
INDUSTRIAL PROPERTY -- 6.7%
700 CenterPoint Properties Trust ... 23,924 25,506
1,400 First Industrial Realty Trust Inc. 40,416 38,150
2,300 ProLogis Trust ................. 48,379 44,275
----------- -----------
112,719 107,931
----------- -----------
MANUFACTURED HOMES -- 1.4%
1,000 Manufactured Home
Communities Inc. .............. 24,866 23,125
----------- -----------
SHARES COST VALUE
------ ---- -----
OFFICE PROPERTY -- 18.8%
900 Alexandria Real Estate
Equities Inc. ................. $ 26,590 $ 27,000
1,500 Arden Realty Inc. .............. 35,171 31,313
1,600 Boston Properties Inc. ......... 51,869 50,900
1,200 Brandywine Realty Trust ........ 20,794 20,550
3,384 Equity Office Properties Trust . 89,145 85,023
700 Highwoods Properties Inc. ...... 16,092 14,875
1,200 Mack-Cali Realty Corp. ......... 35,524 30,600
1,700 SL Green Realty Corp. .......... 39,833 40,375
----------- -----------
315,018 300,636
----------- -----------
PUBLIC STORAGE -- 3.9%
2,300 Public Storage Inc. ............ 65,978 48,300
700 Sovran Self Storage Inc. ....... 16,585 14,175
----------- -----------
82,563 62,475
----------- -----------
SHOPPING CENTERS -- 16.0%
2,100 Developers Diversified Realty Corp. 38,069 29,138
1,100 General Growth Properties Inc. . 37,704 33,481
750 JDN Realty Corp. ............... 14,464 7,781
1,300 Kimco Realty Corp. ............. 46,452 48,750
700 Macerich Co. ................... 19,084 14,438
1,700 Mills Corp. .................... 36,664 30,600
1,500 Regency Realty Corp. ........... 32,359 29,625
2,600 Simon Property Group Inc. ...... 75,858 62,400
----------- -----------
300,654 256,213
----------- -----------
TOTAL COMMON STOCKS ............ 1,669,524 1,544,015
----------- -----------
TOTAL INVESTMENTS -- 96.4% ..... $ 1,669,524 1,544,015
===========
OTHER ASSETS AND
LIABILITIES (NET) -- 3.6% ..... 57,662
-----------
NET ASSETS -- 100.0%
(205,077 shares outstanding) .. $ 1,601,677
===========
--------------------
For Federal tax purposes:
Aggregate cost ................ $ 1,669,524
===========
Gross unrealized appreciation . $ 27,497
Gross unrealized depreciation . (153,006)
-----------
Net unrealized depreciation ... ($125,509)
===========
+ Non-income producing security.
See accompanying notes to financial statements.
12
<PAGE>
THE GABELLI WESTWOOD MIGHTY MITES(SM) FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
===============================================================================
SHARES COST VALUE
------ ---- -----
COMMON STOCKS -- 90.3%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 1.7%
42,000 Scheib (Earl) Inc.+ ............ $ 231,225 $ 157,500
20,100 TransPro Inc. .................. 116,282 100,500
----------- ------------
347,507 258,000
----------- ------------
AVIATION: PARTS AND SERVICES -- 0.9%
12,000 Aviall Inc.+ ................... 179,412 101,250
3,500 Kaman Corp., Cl. A ............. 60,690 34,125
----------- ------------
240,102 135,375
----------- ------------
BROADCASTING -- 2.3%
16,800 CTN Media Group Inc.+ .......... 162,931 105,000
5,600 Granite Broadcasting
Corp.+ ........................ 36,413 39,900
9,200 Gray Communications
Systems Inc., Cl. B ........... 122,247 108,100
8,000 Salem Communications
Corp., Cl. A+ ................. 176,750 95,500
----------- ------------
498,341 348,500
----------- ------------
BUILDING AND CONSTRUCTION -- 0.5%
10 Boston Sand & Gravel Co.+ ...... 3,600 3,260
5,000 Eagle Supply Group Inc.+ ....... 20,000 20,000
3,000 Huttig Building Products Inc.+ . 11,306 13,500
8,000 Nobility Homes Inc. ............ 57,875 43,000
----------- ------------
92,781 79,760
----------- ------------
BUSINESS SERVICES -- 3.6%
4,000 Berlitz International Inc.+ .... 73,825 45,750
2,000 Lady Baltimore Foods, Cl. A+ ... 122,125 100,000
4,000 Learning Tree International Inc.+ 50,875 142,000
6,000 Nashua Corp.+ .................. 86,958 50,250
454 National Stock Yards Co.+ ...... 45,400 41,995
14,000 PubliCard Inc.+ ................ 23,858 136,500
2,600 Temco Service Industries Inc.+ . 60,650 44,512
----------- ------------
463,691 561,007
----------- ------------
CABLE -- 1.0%
13,500 Mercom Inc.+ ................... 153,360 162,000
----------- ------------
COMMUNICATIONS EQUIPMENT -- 1.8%
12,000 Allen Telecom Inc.+ ............ 72,707 191,250
10,000 Digital Recorders Inc.+ ........ 38,656 23,750
30,000 Williams Controls Inc.+ ........ 67,344 63,750
----------- ------------
178,707 278,750
----------- ------------
COMPUTER SOFTWARE AND SERVICES -- 0.9%
3,936 PSINet Inc.+ ................... 92,865 133,885
----------- ------------
CONSUMER PRODUCTS -- 3.3%
1,000 Adams Golf Inc.+ ............... 7,312 1,656
4,000 Benjamin Moore & Co.+ .......... 112,675 116,500
20,000 General Cigar Holdings Inc.+ ... 227,875 302,500
1,000 National Presto Industries Inc. 39,456 32,625
15,700 Weider Nutrition International Inc. 82,385 55,931
----------- ------------
469,703 509,212
----------- ------------
CONSUMER SERVICES -- 0.7%
13,800 Bowlin Outdoor Advertising &
Travel Centers Inc.+ .......... 94,627 71,587
10,400 Carriage Services Inc., Cl. A+ . 56,808 42,250
----------- ------------
151,435 113,837
----------- ------------
DIVERSIFIED INDUSTRIAL -- 2.4%
700 Ampco-Pittsburgh Corp. ......... 8,085 7,612
17,500 Lamson & Sessions Co.+ ......... 118,787 130,156
5,700 Matthews International Corp., Cl. A 143,736 128,962
SHARES COST VALUE
------ ---- -----
2,500 RWC Inc. ....................... $ 88,975 $ 89,688
3,000 WHX Corp.+ ..................... 38,406 20,625
----------- ------------
397,989 377,043
----------- ------------
EDUCATIONAL SERVICES -- 3.3%
23,000 ProsoftTraining.com+ ........... 163,719 518,937
----------- ------------
ELECTRONICS -- 3.7%
1,200 Allen Organ Co., Cl. B ......... 60,300 92,475
25,000 Oak Technology Inc.+ ........... 90,250 481,250
----------- ------------
150,550 573,725
----------- ------------
ENERGY AND UTILITIES -- 21.5%
6,300 Artesian Resources Corp., Cl. A 153,994 144,900
1,069 Artesian Resources Corp., Cl. B 34,146 26,725
9,900 Bangor Hydro-Electric Co. ...... 153,957 171,394
500 Berkshire Energy Resources ..... 17,527 18,078
2,000 Birmingham Utilities Inc. ...... 38,531 30,062
6,500 Cascade Natural Gas Corp. ...... 114,656 104,812
6,500 Chesapeake Utilities Corp. ..... 121,944 110,094
2,000 Connecticut Water Service Inc. . 60,000 56,750
2,500 Corning Natural Gas Corp. ...... 63,750 50,000
3,000 Delta Natural Gas Co. Inc. ..... 53,675 42,000
2,000 Dominguez Services Corp. ....... 61,330 63,500
10,000 El Paso Electric Co.+ .......... 83,536 103,750
4,000 Fall River Gas Co. ............. 64,450 86,000
7,500 Florida Public Utilities Co. ... 113,047 98,437
16,100 Home-Stake Oil & Gas Co. ....... 91,331 120,750
5,000 Maine Public Service Co. ....... 90,056 87,187
7,000 NUI Corp. ...................... 183,631 181,125
1,000 Penn Virginia Corp. ............ 17,175 17,125
4,800 Pennichuck Corp. ............... 111,975 105,600
2,500 Petroleum Geo-Services ASA+ .... 38,225 43,281
2,500 Piedmont Natural Gas Co. Inc. .. 70,554 65,156
9,000 Providence Energy Corp. ........ 276,200 341,437
4,300 RGC Resources Inc. ............. 91,106 87,075
5,000 RPC Inc. ....................... 32,125 47,187
4,500 SEMCO Energy Inc. .............. 69,187 53,437
1,900 SJW Corp. ...................... 121,745 222,300
2,500 South Jersey Industries Inc. ... 73,000 70,469
3,500 St. Joseph Light & Power Co. ... 65,244 71,094
10,000 Swift Energy Co.+ .............. 124,281 178,750
300 Torrington Water Co. ........... 12,375 12,000
4,300 Unitil Corp. ................... 121,490 127,119
16,500 Valley Resources Inc. .......... 254,844 379,500
5,000 Virginia Gas Co.+ .............. 15,937 13,125
----------- ------------
2,995,024 3,330,219
----------- ------------
ENTERTAINMENT -- 3.5%
4,000 Bowl America Inc., Cl. A ....... 28,325 31,000
1,000 Canterbury Park Holding Corp.+ . 5,125 7,000
4,982 Fair Grounds Corp.+ ............ 149,741 156,310
2,000 Fisher Companies Inc. .......... 136,870 125,000
3,000 GC Companies Inc.+ ............. 97,650 104,250
10,000 Integrity Inc., Cl. A .......... 31,563 31,250
4,000 LodgeNet Entertainment Corp. ... 44,021 80,250
----------- ------------
493,295 535,060
----------- ------------
ENVIRONMENTAL SERVICES -- 1.8%
20,700 Envirogen Inc.+ ................ 52,863 77,625
8,200 Strategic Diagnostics Inc.+ .... 67,137 62,525
56,400 Weston (Roy F.) Inc.+ .......... 127,344 137,475
----------- ------------
247,344 277,625
----------- ------------
See accompanying notes to financial statements.
13
<PAGE>
THE GABELLI WESTWOOD MIGHTY MITES(SM) FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2000 (UNAUDITED)
===============================================================================
SHARES COST VALUE
------ ---- -----
COMMON STOCKS (CONTINUED)
EQUIPMENT AND SUPPLIES -- 4.1%
7,000 Avalon Holdings Corp., Cl. A+ .. $ 46,881 $ 33,250
23,500 Barringer Technologies Inc. .... 135,863 147,609
20,000 Core Materials Corp. ........... 61,000 32,500
12,000 Docuport Inc.+ ................. 127,563 102,750
4,500 Eastern Co. .................... 76,419 63,000
10,000 Fiberstars Inc.+ ............... 58,984 75,000
9,000 Itron Inc.+ .................... 56,031 62,437
11,000 Raytech Corp.+ ................. 49,444 41,937
9,000 SL Industries Inc. ............. 113,013 83,250
----------- ------------
725,198 641,733
----------- ------------
FINANCIAL SERVICES -- 7.0%
900 Berkshire Bancorp Inc. ......... 32,400 28,294
5,000 Boston Private Financial
Holdings Inc.+ ................ 40,688 47,500
6,500 Cash America International Inc. 63,450 80,844
7,000 Crazy Woman Creek Bancorp Inc. . 98,212 71,969
3,800 Creditrust Corp.+ .............. 97,313 11,400
1,000 Danielson Holding Corp.+ ....... 5,050 6,375
12,500 Doral Financial Corp. .......... 172,646 141,406
9,000 East West Bancorp Inc. ......... 99,125 99,563
4,000 Fidelity National Corp. ........ 30,375 23,500
8,000 First Cash Financial Services Inc.+ 72,831 49,000
3,700 First Mariner Bancorp Inc.+ .... 34,556 23,588
3,100 Long Island Financial Corp. .... 34,350 33,325
6,000 NMBT Corp. ..................... 104,513 149,672
7,000 Roslyn Bancorp Inc. ............ 127,325 124,688
6,452 State Bancorp Inc. ............. 111,313 87,909
11,600 Vail Banks Inc. ................ 113,594 104,400
----------- ------------
1,237,741 1,083,433
----------- ------------
FOOD AND BEVERAGE -- 3.3%
2,000 Boston Beer Co. Inc., Cl. A+ ... 14,600 15,000
7,000 Celestial Seasonings Inc.+ ..... 122,578 240,625
1,000 Genesee Corp., Cl. B ........... 25,813 21,000
8,800 Horizon Organic Holding Corp.+ . 109,156 95,150
4,500 ICH Corp.+ ..................... 62,800 28,688
15,500 Twinlab Corp.+ ................. 132,621 110,438
----------- ------------
467,568 510,901
----------- ------------
HEALTH CARE -- 2.9%
6,000 America Service Group Inc.+ .... 84,438 90,000
19,000 Hanger Orthopedic Group Inc.+ .. 201,413 100,938
6,000 Matrix Pharmaceutical Inc.+ .... 23,313 61,125
2,000 Nymox Pharmaceutical Corp.+ .... 19,069 11,250
12,600 Span-America Medical
Systems Inc. ................... 64,613 47,250
6,000 Sterile Recoveries Inc.+ ........ 42,187 29,250
6,900 Young Innovations Inc.+ ......... 91,113 104,363
----------- ------------
526,146 444,176
----------- ------------
SHARES COST VALUE
------ ---- -----
HOME FURNISHINGS -- 0.6%
20,000 Carlyle Industries Inc.+ ........ $ 20,350 $ 15,313
5,000 Mity-Lite Inc.+ ................. 56,677 82,813
----------- ------------
77,027 98,126
----------- ------------
HOTELS AND GAMING -- 1.3%
12,000 Jackpot Enterprises Inc. ........ 112,552 199,500
----------- ------------
REAL ESTATE -- 1.9%
2,000 Biloxi Marsh Lands Corp. ........ 16,750 15,250
2,500 Blue Ridge Real Estate Co.+ ..... 28,650 22,813
1,500 Bresler & Reiner Inc.+ .......... 43,725 41,250
SHARES COST VALUE
------ ---- -----
51 Case Pomeroy & Co. Inc., Cl. B .. $ 64,525 $ 48,705
7,800 Gyrodyne Company of America Inc.+ 140,463 163,800
----------- ------------
294,113 291,818
----------- ------------
RETAIL -- 3.0%
14,500 Barnett Inc.+ ................... 134,281 159,500
1,413 Bozzuto's Inc.+ ................. 56,430 49,808
5,000 Lillian Vernon Corp. ............ 77,750 47,500
8,250 Schultz Sav-O Stores Inc. ....... 129,138 87,656
3,000 Star Struck Ltd.+ ............... 11,400 9,563
7,800 Village Super Market Inc., Cl. A+ 111,844 105,300
5,000 Yogen Fruz World-Wide Inc., Cl. A+ 6,746 5,816
----------- ------------
527,589 465,143
----------- ------------
SPECIALTY CHEMICALS -- 2.4%
14,000 Material Sciences Corp.+ ........ 136,481 189,000
5,600 Sybron Chemicals Inc.+ .......... 90,674 79,100
8,000 Tetra Technologies Inc.+ ........ 76,463 107,000
----------- ------------
303,618 375,100
----------- ------------
TELECOMMUNICATIONS -- 7.6%
4,000 Adelphia Business Solutions Inc.+ 53,688 246,500
500 Choice One Communications Inc.+ . 10,000 17,750
3,900 Conestoga Enterprises Inc. ...... 80,350 86,044
3,375 CoreComm Ltd.+ .................. 16,935 148,500
4,500 Electric Lightwave Inc., Cl. A+ . 67,750 107,438
6,000 GST Telecommunications Inc.+ .... 83,163 36,750
80 Horizon Telecom Inc.+ ........... 9,250 7,920
240 Horizon Telecom Inc., Cl. B+ .... 27,750 23,760
500 Lexcom Telephone Co. ............ 20,000 21,000
1,192 New Ulm Telecom Inc.+ ........... 38,740 35,760
3,900 Shenandoah Telecommunications Co. 90,869 157,463
9,000 Startec Global Communications Corp.+ 75,685 189,000
2,000 Viatel Inc.+ .................... 26,000 100,375
----------- ------------
600,180 1,178,260
----------- ------------
TRANSPORTATION -- 0.4%
8,000 International Shipholding Corp.+ 108,100 64,000
----------- ------------
WIRELESS COMMUNICATIONS -- 2.9%
4,500 Leap Wireless International Inc.+ 27,000 444,094
200 Tritel Inc., Cl. A+ ............. 3,600 7,650
----------- ------------
30,600 451,744
----------- ------------
TOTAL COMMON STOCKS ............. 12,146,845 13,996,869
----------- ------------
U.S. GOVERNMENT OBLIGATIONS -- 9.3%
$1,441,000 U.S. Treasury Bills, 5.35% to 5.93%++,
due 04/06/00 to 06/15/00 ....... $ 1,436,330 $ 1,436,359
----------- ------------
TOTAL INVESTMENTS -- 99.6% ...... $13,583,175 15,433,228
===========
OTHER ASSETS AND
LIABILITIES (NET) -- 0.4% ..... 63,047
------------
NET ASSETS -- 100.0%
(1,095,073 shares outstanding) . $ 15,496,275
============
--------------------
For Federal tax purposes:
Aggregate cost ................. $ 13,583,175
============
Gross unrealized appreciation .. $ 3,382,303
Gross unrealized depreciation .. (1,532,250)
------------
Net unrealized appreciation .... $ 1,850,053
============
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
See accompanying notes to financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
THE GABELLI WESTWOOD FUNDS
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000 (UNAUDITED)
=======================================================================================================================
EQUITY BALANCED INTERMEDIATE SMALLCAP REALTY MIGHTY
FUND FUND BOND FUND EQUITY FUND FUND MITES(SM) FUND
------------ ------------ ------------ ----------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $144,330,057, $136,645,884,
$6,084,786, $27,135,614,
$1,669,524 and $13,583,175,
respectively) .............. $174,298,070 $149,046,445 $5,885,773 $31,630,097 $1,544,015 $15,433,228
Cash ........................... 2,212,995 -- 54,632 1,112,215 65,450 1,471
Dividends and interest receivable 151,137 978,389 101,034 7,882 12,159 15,803
Receivable for Fund shares sold 730,672 34,326 -- 23,500 -- 58,966
Receivable for investments sold -- -- -- 1,145,537 -- --
Receivable from advisor ........ -- -- 1,668 -- 2,466 --
Deferred organizational expense -- -- -- 5,064 4,417 29,545
------------ ------------ ---------- ----------- ---------- -----------
TOTAL ASSETS ................... 177,392,874 150,059,160 6,043,107 33,924,295 1,628,507 15,539,013
------------ ------------ ---------- ----------- ---------- -----------
LIABILITIES:
Dividends payable .............. -- -- 25,532 -- -- --
Payable for Fund shares redeemed 41,168 4,260 -- -- -- --
Payable for investments purchased 232,383 212,932 -- 319,564 15,441 --
Payable for investment advisory fees 138,411 92,852 -- 35,771 -- 16,891
Payable for distribution fees .. 35,034 32,800 1,253 7,668 325 3,274
Payable to custodian ........... -- 1,216,661 800 -- 2,200 8,000
Other accrued expenses ......... 62,369 33,834 12,697 13,764 8,864 14,573
------------ ------------ ---------- ----------- ---------- -----------
TOTAL LIABILITIES .............. 509,365 1,593,339 40,282 376,767 26,830 42,738
------------ ------------ ---------- ----------- ---------- -----------
NET ASSETS ..................... $176,883,509 $148,465,821 $6,002,825 $33,547,528 $1,601,677 $15,496,275
============ ============ ========== =========== ========== ===========
NET ASSETS CONSIST OF:
Share of beneficial interest,
at par value ................ $ 16,650 $ 12,362 $ 602 $ 1,481 $ 205 $ 1,095
Additional paid-in capital ..... 128,499,936 126,988,009 6,657,024 21,185,904 2,130,733 12,368,050
Accumulated (distributions
in excess of)
net investment income ....... 34,846 (6,362) -- (197,470) (2,067) 1,257
Accumulated (distributions
in excess of) net realized
gain on investments ......... 18,364,064 9,071,251 (455,788) 8,063,130 (401,685) 1,275,820
Net unrealized appreciation
(depreciation)
on investments .............. 29,968,013 12,400,561 (199,013) 4,494,483 (125,509) 1,850,053
------------ ------------ ---------- ----------- ---------- -----------
TOTAL NET ASSETS ............... $176,883,509 $148,465,821 $6,002,825 $33,547,528 $1,601,677 $15,496,275
============ ============ ========== =========== ========== ===========
SHARES OF BENEFICIAL INTEREST:
RETAIL CLASS (CLASS AAA):
Shares of beneficial interest
outstanding ($0.001 par value) 16,456,111 11,629,465 602,201 1,481,143 205,077 1,095,073
============ ============ ========== =========== ========== ===========
NET ASSET VALUE, offering and
redemption price per share .. $10.62 $12.01 $9.97 $22.65 $7.81 $14.15
====== ====== ===== ====== ===== ======
SERVICE CLASS (CLASS A):
Shares of beneficial interest
outstanding ($0.001 par value) 194,154 732,315
======= =======
NET ASSET VALUE, offering and redemption
price per share ............. $10.61 $11.98
====== ======
Maximum sales charge ........... 4.00% 4.00%
====== ======
Maximum offering price per share
(NAV / 0.96, based on maximum
sales charge of 4.00% of the
offering price at March 31, 2000) $11.05 $12.48
====== ======
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
<TABLE>
<CAPTION>
THE GABELLI WESTWOOD FUNDS
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
=======================================================================================================================
EQUITY BALANCED INTERMEDIATE SMALLCAP REALTY MIGHTY
FUND FUND BOND FUND EQUITY FUND FUND MITES(SM) FUND
------------ ------------ ------------ ----------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends ...................... $ 1,238,747 $ 777,846 -- $ 14,583 $53,519 $ 80,305
Interest ....................... -- 1,949,705 $182,315 -- -- 43,505
----------- ----------- -------- ---------- ------- ----------
TOTAL INVESTMENT INCOME ........ 1,238,747 2,727,551 182,315 14,583 53,519 123,810
----------- ----------- -------- ---------- ------- ----------
EXPENSES:
Investment advisory fees ....... 817,487 609,799 18,012 141,843 8,067 66,137
Distribution fees -- Retail Class 201,643 191,876 7,505 35,461 2,017 16,239
Distribution fees -- Service Class 5,457 22,780 -- -- -- --
Legal and audit fees ........... 10,717 11,235 9,319 8,090 4,835 6,426
Custodian fees ................. 45,904 42,986 3,967 20,311 4,470 13,217
Shareholder services fees ...... 87,591 49,675 5,398 8,666 1,999 11,306
Registration fees .............. 16,430 13,579 7,000 8,500 5,000 9,250
Shareholder report expenses .... 3,875 2,692 346 1,606 536 2,714
Organizational expenses ........ -- -- -- 1,261 886 4,765
Miscellaneous expenses ......... 8,304 6,479 3,867 4,319 2,177 3,808
----------- ----------- -------- ---------- ------- ----------
TOTAL EXPENSES ................. 1,197,408 951,101 55,414 230,057 29,987 133,862
----------- ----------- -------- ---------- ------- ----------
LESS:
Expense reimbursements ...... -- -- (23,869) (6,504) (16,264) (36,276)
Custodian fee credits ....... (13,360) (13,393) (1,486) (11,500) (1,613) (166)
----------- ----------- -------- ---------- ------- ----------
TOTAL NET EXPENSES ............. 1,184,048 937,708 30,059 212,053 12,110 97,420
----------- ----------- -------- ---------- ------- ----------
NET INVESTMENT INCOME (LOSS) ... 54,699 1,789,843 152,256 (197,470) 41,409 26,390
----------- ----------- -------- ---------- ------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on
investments ................ 21,523,424 10,769,932 (83,786) 8,439,627 (177,346) 1,472,758
Net change in unrealized
appreciation (depreciation)
on investments .............. (144,544) 327,871 66,505 (824,289) 211,605 1,218,300
----------- ----------- -------- ---------- ------- ----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS .. 21,378,880 11,097,803 (17,281) 7,615,338 34,259 2,691,058
----------- ----------- -------- ---------- ------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ...... $21,433,579 $12,887,646 $134,975 $7,417,868 $75,668 $2,717,448
=========== =========== ======== ========== ======= ==========
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
THE GABELLI WESTWOOD FUNDS
STATEMENT OF CHANGES IN NET ASSETS
==============================================================================================================
EQUITY FUND BALANCED FUND
----------- -------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, MARCH 31, 2000 SEPTEMBER 30,
(UNAUDITED) 1999 (UNAUDITED) 1999
-------------- ------------ -------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income ................... $ 54,699 $ 731,661 $ 1,789,843 $ 3,404,673
Net realized gain on investment
transactions ......................... 21,523,424 15,111,162 10,769,932 10,229,060
Net change in unrealized appreciation
(depreciation) on investments ........ (144,544) 18,690,261 327,871 3,959,648
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations ............ 21,433,579 34,533,084 12,887,646 17,593,381
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Retail Class ......................... (324,841) (1,202,243) (1,730,955) (3,227,275)
Service Class ........................ -- (6,778) (94,047) (192,481)
------------ ------------ ------------ ------------
(324,841) (1,209,021) (1,825,002) (3,419,756)
------------ ------------ ------------ ------------
Net realized gain on investment transactions
Retail Class ......................... (17,441,544) (4,421,909) (10,466,472) (1,447,392)
Service Class ........................ (240,928) (55,551) (609,682) (121,230)
------------ ------------ ------------ ------------
(17,682,472) (4,477,460) (11,076,154) (1,568,622)
------------ ------------ ------------ ------------
Total distributions to shareholders ..... (18,007,313) (5,686,481) (12,901,156) (4,988,378)
------------ ------------ ------------ ------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares issued
Retail Class ......................... 37,723,108 47,329,910 17,580,010 68,922,349
Service Class ........................ 102,800 419,120 114,538 1,028,954
------------ ------------ ------------ ------------
37,825,908 47,749,030 17,694,548 69,951,303
------------ ------------ ------------ ------------
Proceeds from reinvestment of dividends
Retail Class ......................... 17,107,065 5,409,705 11,800,701 4,487,667
Service Class ........................ 235,889 60,421 572,357 253,939
------------ ------------ ------------ ------------
17,342,954 5,470,126 12,373,058 4,741,606
------------ ------------ ------------ ------------
Cost of shares redeemed
Retail Class ......................... (38,433,638) (101,553,974) (49,998,389) (52,811,686)
Service Class ........................ (536,204) (1,112,809) (1,315,903) (7,566,829)
------------ ------------ ------------ ------------
(38,969,842) (102,666,783) (51,314,292) (60,378,515)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from shares of beneficial
interest transactions ................ 16,199,020 (49,447,627) (21,246,686) 14,314,394
------------ ------------ ------------ ------------
Net increase (decrease) in net assets ... 19,625,286 (20,601,024) (21,260,196) 26,919,397
NET ASSETS:
Beginning of period ..................... 157,258,223 177,859,247 169,726,017 142,806,620
------------ ------------ ------------ ------------
End of period ........................... $176,883,509 $157,258,223 $148,465,821 $169,726,017
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
<TABLE>
<CAPTION>
THE GABELLI WESTWOOD FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
==============================================================================================================================
INTERMEDIATE BOND FUND SMALLCAP EQUITY FUND
---------------------- --------------------
FOR THE SIX MONTHS FOR THE FOR THE SIX MONTHS FOR THE
ENDED MARCH 31, 2000 YEAR ENDED ENDED MARCH 31, 2000 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1999 (UNAUDITED) SEPTEMBER 30, 1999
-------------------- ------------------ -------------------- ------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ............ $ 152,256 $ 343,959 $ (197,470) $ (140,696)
Net realized gain (loss) on investment
transactions ......................... (83,786) (12,165) 8,439,627 913,091
Net change in unrealized appreciation
(depreciation) on investments ........ 66,505 (504,721) (824,289) 6,427,992
------------ ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations ............ 134,975 (172,927) 7,417,868 7,200,387
------------ ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income ................... (152,256) (344,010) -- --
Net realized gain on investment transactions -- -- (1,022,838) --
------------ ------------- ------------- -------------
Total distributions to shareholders ..... (152,256) (344,010) (1,022,838) --
------------ ------------- ------------- -------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares issued ............. 530,064 2,272,144 14,889,299 8,535,699
Proceeds from reinvestment of dividends . 104,407 298,379 1,013,812 --
Cost of shares redeemed ................. (828,333) (3,457,546) (9,111,680) (7,068,548)
------------ ------------- ------------- -------------
Net increase (decrease) in net assets from
shares of beneficial interest transactions (193,862) (887,023) 6,791,431 1,467,151
------------ ------------- ------------- -------------
Net increase (decrease) in net assets ... (211,143) (1,403,960) 13,186,461 8,667,538
NET ASSETS:
Beginning of period ..................... 6,213,968 7,617,928 20,361,067 11,693,529
------------ ------------- ------------- -------------
End of period ........................... $ 6,002,825 $ 6,213,968 $ 33,547,528 $ 20,361,067
============ ============= ============= =============
REALTY FUND MIGHTY MITES(SM) FUND
----------- ---------------------
FOR THE SIX MONTHS FOR THE FOR THE SIX MONTHS FOR THE
ENDED MARCH 31, 2000 YEAR ENDED ENDED MARCH 31, 2000 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1999 (UNAUDITED) SEPTEMBER 30, 1999
-------------------- ------------------ -------------------- ------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income ................... $ 41,409 $ 83,135 $ 26,390 $ 72,301
Net realized gain (loss) on investment
transactions ......................... (177,346) (205,910) 1,472,758 1,169,303
Net change in unrealized appreciation
on investments ....................... 211,605 8,039 1,218,300 891,554
------------ ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations ............ 75,668 (114,736) 2,717,448 2,133,158
------------ ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income ................... (43,476) (71,254) (85,390) (46,367)
In excess of net investment income -- (13,527) -- --
Net realized gain on investment transactions -- -- (1,366,241) (955)
------------ ------------- ------------- -------------
Total distributions to shareholders ..... (43,476) (84,781) (1,451,631) (47,322)
------------ ------------- ------------- -------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares issued ............. 831,037 725,155 8,044,491 25,153,091
Proceeds from reinvestment of dividends . 29,568 55,657 1,430,533 46,437
Cost of shares redeemed ................. (1,074,981) (612,166) (5,449,940) (21,918,377)
------------ ------------- ------------- -------------
Net increase (decrease) in net assets
from shares of beneficial interest
transactions ......................... (214,376) 168,646 4,025,084 3,281,151
------------ ------------- ------------- -------------
Net increase (decrease) in net assets ... (182,184) (30,871) 5,290,901 5,366,987
NET ASSETS:
Beginning of period ..................... 1,783,861 1,814,732 10,205,374 4,838,387
------------ ------------- ------------- -------------
End of period ........................... $ 1,601,677 $ 1,783,861 $ 15,496,275 $ 10,205,374
============ ============= ============= =============
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
THE GABELLI WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
================================================================================
1. ORGANIZATION. The Gabelli Westwood Funds (the "Trust") are registered under
the Investment Company Act of 1940, as amended (the "1940 Act"), as a
diversified, open-end management investment company and currently consists of
six active separate investment portfolios: Equity Fund, Balanced Fund,
Intermediate Bond Fund, SmallCap Equity Fund, Realty Fund and Mighty Mites Fund
(collectively, the "Funds"), each with four classes of shares known as the Class
AAA Shares (formerly the "Retail Class"), Class A Shares (formerly the "Service
Class"), Class B Shares and Class C Shares. Effective March 31, 2000, the Funds
had no Class A, Class B or Class C Shares outstanding, with the exception of
Equity Fund Class A Shares and Balanced Fund Class A Shares. Each class of
shares outstanding bears the same voting, dividend, liquidation and other rights
and conditions, except that the expense incurred in the distribution and
marketing of such shares are different for each class. The Gabelli Westwood Cash
Management Fund has not commenced operations.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with 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 the significant accounting policies followed by
the Funds in the preparation of their financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange, quoted by the National Association of Securities
Dealers Automated Quotations, Inc. ("Nasdaq") or traded on foreign exchanges are
valued at the last sale price on that exchange 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, except for open short positions, which are
issued at the last asked price). All other portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest average of the bid and asked prices. 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 Advisers, LLC
(the "Adviser"). Securities and assets for which market quotations are not
readily available are valued at their fair value as determined in good faith
under procedures established by and under the general supervision of the Board
of Trustees. Short term debt securities with remaining maturities of 60 days or
less are valued at amortized cost, unless the Trustees determine such does not
reflect the securities' fair value, in which case these securities will be
valued at their fair value as determined by the Trustees. Debt instruments
having a maturity greater than 60 days are valued at the highest bid price
obtained from a dealer maintaining an active market in those securities.
ACCOUNTING FOR REAL ESTATE INVESTMENT TRUSTS. The Funds own shares of real
estate investment trusts ("REITS") which report information on the source of
their distributions annually. Distributions received from REITS during the year
which are known to be a return of capital are recorded as a reduction to the
cost of the individual REIT.
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 as earned.
Dividend income is recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends from net investment
income are declared and paid annually for the Equity Fund, SmallCap Equity Fund
and Mighty Mites Fund, and quarterly for the Balanced Fund and Realty Fund. The
Intermediate Bond Fund declares dividends daily and pays those dividends
monthly. Distributions of net realized gain on investments are normally declared
and paid at least annually by each Fund. Dividends and distributions to
shareholders
19
<PAGE>
THE GABELLI WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
================================================================================
are recorded on the ex-dividend date. Income distributions and capital gain
distributions are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences are
primarily due to differing treatments of income and gains on various investment
securities held by the Funds, timing differences and differing characterization
of distributions made by the Funds.
PROVISION FOR INCOME TAXES. The Funds intend to continue to qualify as regulated
investment companies under Subchapter M of the Internal Revenue Code of 1986, as
amended. By so qualifying, the Funds will not be subject to federal income taxes
to the extent that they distribute all of their taxable income for the fiscal
year.
DETERMINATION OF NET ASSET VALUE AND CALCULATION OF EXPENSES. Expenses directly
attributable to a Fund are charged to that Fund. Other expenses are allocated
proportionately among each Fund within the Trust in relation to the net assets
of each Fund or on another reasonable basis. In calculating net asset value per
share of each class, investment income, realized and unrealized gains and losses
and expenses other than class specific expenses, are allocated daily to each
class of shares based upon the proportion of net assets of each class at the
beginning of each day. Distribution expenses are solely borne by the class
incurring the expense.
CONCENTRATION RISK. The Realty Fund invests a substantial portion of its assets
in REITS, therefore it may be more affected by economic developments in the real
estate industry than would a general equity fund.
3. INVESTMENT ADVISORY AGREEMENTS. On July 27, 1994, Westwood Management Corp.
("Westwood") entered into an agreement with Gabelli Funds, LLC to form a new
limited liability company, Teton Advisers LLC ("Teton"). On October 6, 1994,
Teton entered into a sub-advisory agreement with Westwood (the "Sub-Adviser").
The terms of the sub-advisory agreement state that Westwood would continue to
manage the assets of the Funds. Teton became the investment adviser to the Funds
and is responsible for overseeing Westwood's activities. On November 7, 1997,
the members of Teton approved a change in name to Gabelli Advisers LLC.
Additionally, on November 18, 1997, the Board of Trustees approved a change in
name of The Westwood Funds to The Gabelli Westwood Funds to reflect the more
closely aligned relationship with the Gabelli family of funds. As of March 2,
1998, Gabelli Advisers LLC converted to a "C" corporation and is now known as
Gabelli Advisers, Inc. (the "Adviser").
The Funds have entered into an investment advisory agreement (the "Advisory
Agreement") with the Adviser which provides that the Funds will pay the Adviser
a fee, computed daily and paid monthly, at the annual rate of 1.00% for the
Equity Fund, SmallCap Equity Fund, Realty Fund and Mighty Mites Fund, 0.75% for
the Balanced Fund, and 0.60% for the Intermediate Bond Fund, of each Fund's
average daily net assets. The Adviser has contractually agreed to waive its
investment advisory fee and/or reimburse expenses to the Intermediate Bond Fund,
SmallCap Equity Fund, Realty Fund and Mighty Mites Fund in the event annual
expenses of such Funds exceed certain prescribed limits. Such fee
waiver/reimbursement arrangement will continue until at least September 30,
2000. For the six months ended March 31, 2000, the Adviser was entitled to fees
of $817,487; $141,843; $8,067; $66,137; $609,799 and $18,012 for the Equity,
SmallCap Equity, Realty, Mighty Mites, Balanced and Intermediate Bond Funds,
respectively. For the six months ended March 31, 2000, the Adviser reimbursed
expenses in the amount of $23,869; $6,504; $16,264 and $36,276, respectively.
20
<PAGE>
THE GABELLI WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
================================================================================
The Funds, with the exception of the Mighty Mites Fund, have also entered into a
sub-advisory agreement with the Sub-Adviser whereby the Adviser pays the
Sub-Adviser the greater of $150,000 per year on an aggregate basis for the Funds
or a fee of 35% of net revenues to the Adviser from the Funds. For the six
months ended March 31, 2000, the Adviser paid to the Sub-Adviser fees of
$235,816; $39,805; $2,271; $157,305 and $4,143 for the Equity, SmallCap Equity,
Realty, Balanced and Intermediate Bond Funds, respectively.
4. DISTRIBUTION PLAN. The Funds have adopted an amended and restated
distribution plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act.
Gabelli & Company, Inc. ("Gabelli & Company"), an affiliate of Gabelli Asset
Management Inc., serves as distributor of the Funds. The Plan authorizes payment
by the Funds to Gabelli & Company in connection with the distribution of its
Retail Class shares at an annual rate of 0.25% of the average daily net assets
of those Funds each fiscal year. Such payments are accrued daily and paid
monthly. For the six months ended March 31, 2000, the Funds incurred
distribution expenses in the amounts of $201,643; $191,876; $7,505; $35,461;
$2,017 and $16,239 for the Retail Class of the Equity, Balanced, Intermediate
Bond, SmallCap Equity, Realty and Mighty Mites Funds, respectively.
Under the Plan for the Service Class, each of the Equity and Balanced Funds
authorize payment to Gabelli & Company in connection with the distribution of
its Service Class shares at an annual rate of 0.50% of the average daily net
assets of those funds each fiscal year. Such payments are accrued daily and paid
monthly. For the six months ended March 31, 2000, the Funds incurred
distribution expenses in the amounts of $5,457 for the Equity Fund and $22,780
for the Balanced Fund.
5. ORGANIZATIONAL EXPENSES. The organizational expenses of the Funds are being
amortized on a straight-line basis over a period of 60 months from the
commencement of the respective Funds' investment operations.
6. PORTFOLIO SECURITIES. Purchases and sales of securities for the six months
ended March 31, 2000, other than short term securities, are as follows:
PURCHASES SALES
------------------- ---------------
Equity Fund ...................... $69,769,050 $72,680,614
Balanced Fund .................... 46,223,158 74,753,173
Intermediate Bond Fund ........... 1,706,981 1,346,160
SmallCap Equity Fund ............. 31,425,255 26,638,370
Realty Fund ...................... 496,470 733,739
Mighty Mites Fund ................ 6,101,114 3,526,012
7. TRANSACTIONS WITH AFFILIATES. During the six months ended March 31, 2000, the
Mighty Mites Fund paid brokerage commissions of $902 to Gabelli and Company and
its affiliates.
21
<PAGE>
THE GABELLI WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
================================================================================
8. SHARES OF BENEFICIAL INTEREST. Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
EQUITY FUND BALANCED FUND INTERMEDIATE BOND FUND
------------------------------ ------------------------------ ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30,
2000 1999 2000 1999 2000 1999
---------------- ------------ ---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C> <C> <C>
RETAIL CLASS
Shares sold .......................... 3,663,798 4,629,734 1,489,609 5,762,724 53,869 217,090
Shares issued upon
reinvestment of dividends ......... 1,736,757 552,034 1,030,796 375,455 10,610 28,905
Shares redeemed ...................... (3,760,174) (9,884,292) (4,278,929) (4,424,361) (84,048) (333,664)
---------- ---------- ---------- ---------- --------- ----------
Net increase (decrease) in
Retail Class shares ............ 1,640,381 (4,702,524) (1,758,524) 1,713,818 (19,569) 87,669
========== ========== ========== ========== ========= ==========
SERVICE CLASS
Shares sold .......................... 9,905 41,215 9,912 86,912 N/A N/A
Shares issued upon reinvestment
of dividends ...................... 23,972 6,159 50,168 21,391 N/A N/A
Shares redeemed ...................... (52,108) (110,209) (112,277) (655,052) N/A N/A
---------- ---------- ---------- ---------- --------- ----------
Net decrease in Service Class shares (18,231) (62,835) (52,197) (546,749) N/A N/A
========== ========== ========== ========== ========= ==========
</TABLE>
<TABLE>
<CAPTION>
SMALLCAP EQUITY REALTY FUND MIGHTY MITES(SM) FUND
------------------------------ ------------------------------ ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30,
2000 1999 2000 1999 2000 1999
---------------- ------------ ---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C> <C> <C>
RETAIL CLASS
Shares sold ......................... 705,772 559,530 110,664 88,324 589,138 2,294,614
Shares issued upon reinvestment
of dividends ..................... 51,436 -- 3,938 6,914 111,673 4,333
Shares redeemed ..................... (421,729) (459,943) (143,899) (76,095) (396,258) (2,007,020)
---------- ---------- ---------- ---------- --------- ----------
Net increase (decrease) in
Retail Class shares ........... 335,479 99,587 (29,297) 19,143 304,553 291,927
========== ========== ========== ========== ========= ==========
</TABLE>
9. FEDERAL INCOME TAX INFORMATION. The Intermediate Bond Fund and Realty Fund
have capital loss carryforwards for Federal income tax purposes of $261,089 and
$33,537, respectively, available through September 2003 and September 2007,
respectively. These loss carryforwards are available to reduce future
distributions of net capital gains to shareholders.
Under current tax law, capital losses realized after October 31 may be deferred
and treated as occurring on the first day of the following fiscal year. The
Intermediate Bond Fund and Realty Fund incurred losses of $83,873 and $188,410,
respectively, after October 31, 1999. Such losses will be treated, for tax
purposes, as arising on October 1, 2000.
10. NEW SHARE CLASSES. On November 16, 1999, the Board of Trustees of the Funds
approved an amended and restated Rule 18f-3 Multi-Class Plan relating to the
creation of two additional classes of shares of the Funds--Class B Shares and
Class C Shares (the "New Share Classes"). The existing Retail Class was
redesignated as Class AAA, while the existing Service Class was redesignated as
Class A. In addition, the Board also approved an Amended andRestated
Distribution Agreement, Rule 12b-1 plan for each of the New Share Classes and an
Amended and Restated Plan of Distribution for the existing classes of shares
(Class AAA Shares and Class A Shares). The Class B and Class C Shares are
currently not being offered to the public.
22
<PAGE>
<TABLE>
<CAPTION>
THE GABELLI WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
===============================================================================================================================
Selected data for a share of beneficial interest outstanding throughout each period:
FOR THE
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 ----------------------------------------------------
(UNAUDITED) 1999 1998 1997
------------------ --------------- -------------- ----------------
EQUITY FUND RETAIL SERVICE RETAIL SERVICE RETAIL SERVICE RETAIL SERVICE
OPERATING PERFORMANCE: CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
------ ------- ------ ------- ------ ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ................................... $10.46 $10.46 $ 8.99 $ 8.97 $9.57 $9.57 $7.68 $7.69
------ ------ ------ ------ ----- ----- ----- -----
Net investment income (loss) ................... 0.01 (0.01) 0.04 0.02 0.07 0.08 0.07 0.06
Net realized and unrealized gain (loss)
on investments .............................. 1.34 1.33 1.72 1.73 (0.22) (0.25) 2.72 2.71
------ ------ ------ ------ ----- ----- ----- -----
Total from investment operations ............... 1.35 1.32 1.76 1.75 (0.15) (0.17) 2.79 2.77
------ ------ ------ ------ ----- ----- ----- -----
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income .......................... (0.02) -- (0.06) (0.03) (0.06) (0.06) (0.07) (0.06)
Net realized gain on investments ............... (1.17) (1.17) (0.23) (0.23) (0.37) (0.37) (0.83) (0.83)
------ ------ ------ ------ ----- ----- ----- -----
Total distributions ............................ (1.19) (1.17) (0.29) (0.26) (0.43) (0.43) (0.90) (0.89)
------ ------ ------ ------ ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD ................. $10.62 $10.61 $10.46 $10.46 $8.99 $8.97 $9.57 $9.57
====== ====== ====== ====== ===== ===== ===== =====
Total return + ................................. 13.9% 13.7% 19.8% 19.5% (1.4)% (1.8)% 39.6% 39.3%
====== ====== ====== ====== ===== ===== ===== =====
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ........... $174,823 $2,061 $155,036 $2,222 $175,391 $2,468 $128,697 $3,338
Ratio of net investment income (loss) to
average net assets .......................... 0.07%(d) (0.18)%(d) 0.38% 0.13% 0.73% 0.46% 1.11% 0.85%
Expenses net of waivers/
reimbursements (a) .......................... 1.47%(d) 1.72%(d) 1.49% 1.74% 1.47% 1.72% 1.53% 1.78%
Expenses before waivers/
reimbursements (c) .......................... 1.47%(d) 1.72%(d) 1.49% 1.74% 1.47% 1.72% 1.59%(c) 1.84%(c)
Portfolio turnover rate ........................ 43% 43% 67% 67% 77% 77% 61% 61%
YEAR ENDED SEPTEMBER 30,
---------------------------------
1996 1995
--------------- ----------------
EQUITY FUND RETAIL SERVICE RETAIL SERVICE
OPERATING PERFORMANCE: CLASS CLASS CLASS CLASS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Net asset value, beginning
of period ................................... $6.59 $6.57 $5.50 $5.48
----- ----- ----- -----
Net investment income (loss) ................... 0.08 0.06 0.04 0.04
Net realized and unrealized gain (loss)
on investments .............................. 1.59 1.58 1.31 1.29
----- ----- ----- -----
Total from investment operations ............... 1.67 1.64 1.35 1.33
----- ----- ----- -----
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income .......................... (0.06) -- (0.06) (0.04)
Net realized gain on investments ............... (0.52) (0.52) (0.20) (0.20)
----- ----- ----- -----
Total distributions ............................ (0.58) (0.52) (0.26) (0.24)
----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD ................. $7.68 $7.69 $6.59 $6.57
===== ===== ===== =====
Total return + ................................. 26.9% 26.3% 25.9% 25.5%
===== ===== ===== =====
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ........... $29,342 $1,221 $14,903 $68
Ratio of net investment income (loss) to
average net assets .......................... 1.16% 0.92% 0.77% 0.64%
Expenses net of waivers/
reimbursements (a) .......................... 1.50% 1.74% 1.61% 1.85%
Expenses before waivers/
reimbursements (c) .......................... 1.95%(c) 2.19%(c) 2.29%(c) 2.63%(c)
Portfolio turnover rate ........................ 106% 106% 107% 107%
========================================================================================
FOR THE
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 ----------------------------------------------------
(UNAUDITED) 1999 1998 1997
------------------ --------------- -------------- ----------------
BALANCED FUND RETAIL SERVICE RETAIL SERVICE RETAIL SERVICE RETAIL SERVICE
OPERATING PERFORMANCE: CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
------ ------- ------ ------- ------ ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........... $11.98 $11.95 $10.98 $10.96 $11.49 $11.46 $ 9.71 $ 9.69
------ ------ ------ ------ ------ ------ ------ ------
Net investment income .......................... 0.13 0.12 0.25 0.22 0.26 0.26 0.25 0.24
Net realized and unrealized gain
on investments .............................. 0.85 0.85 1.12 1.11 0.05 0.02 2.36 2.33
------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations ............... 0.98 0.97 1.37 1.33 0.31 0.28 2.61 2.57
------ ------ ------ ------ ------ ------ ------ ------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income .......................... (0.14) (0.13) (0.25) (0.22) (0.26) (0.22) (0.25) (0.22)
Net realized gain on investments ............... (0.81) (0.81) (0.12) (0.12) (0.56) (0.56) (0.58) (0.58)
------ ------ ------ ------ ------ ------ ------ ------
Total distributions ............................ (0.95) (0.94) (0.37) (0.34) (0.82) (0.78) (0.83) (0.80)
------ ------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD ................. $12.01 $11.98 $11.98 $11.95 $10.98 $10.96 $11.49 $11.46
====== ====== ====== ====== ====== ====== ====== ======
Total return + ................................. 8.6% 8.5% 12.6% 12.2% 2.8% 2.6% 28.3% 28.0%
====== ====== ====== ====== ====== ====== ====== ======
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ........... $139,695 $8,771 $160,352 $9,374 $128,222 $14,585 $67,034 $14,444
Ratio of net investment income to
average net assets .......................... 2.22%(d) 1.97%(d) 2.06% 1.81% 2.37% 2.16% 2.60% 2.37%
Expenses net of waivers/
reimbursements (b) .......................... 1.16%(d) 1.41%(d) 1.20% 1.45% 1.20% 1.45% 1.28% 1.53%
Expenses before waivers/
reimbursements (c) .......................... 1.16%(d) 1.41%(d) 1.20% 1.45% 1.20% 1.45% 1.36% 1.61%
Portfolio turnover rate ........................ 29% 29% 86% 86% 77% 77% 110% 110%
YEAR ENDED SEPTEMBER 30,
---------------------------------
1996 1995
--------------- ----------------
BALANCED FUND RETAIL SERVICE RETAIL SERVICE
OPERATING PERFORMANCE: CLASS CLASS CLASS CLASS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ........... $8.47 $8.45 $7.12 $7.10
----- ----- ----- -----
Net investment income .......................... 0.22 0.20 0.19 0.17
Net realized and unrealized gain
on investments .............................. 1.37 1.37 1.35 1.35
----- ----- ----- -----
Total from investment operations ............... 1.59 1.57 1.54 1.52
----- ----- ----- -----
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income .......................... (0.22) (0.20) (0.19) (0.17)
Net realized gain on investments ............... (0.13) (0.13) -- --
----- ----- ----- -----
Total distributions ............................ (0.35) (0.33) (0.19) (0.17)
----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD ................. $9.71 $9.69 $8.47 $8.45
===== ===== ===== =====
Total return + ................................. 19.1% 18.9% 22.0% 21.7%
===== ===== ===== =====
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ........... $23,158 $11,216 $6,912 $7,212
Ratio of net investment income to
average net assets .......................... 2.62% 2.34% 2.47% 2.26%
Expenses net of waivers/
reimbursements (b) .......................... 1.32% 1.57% 1.35% 1.62%
Expenses before waivers/
reimbursements (c) .......................... 1.71% 1.96% 1.86% 2.24%
Portfolio turnover rate ........................ 111% 111% 133% 133%
</TABLE>
================================================================================
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
(a) The ratios do not include a reduction of expenses for custodian fee credits
on cash balances maintained with the custodian. Including such custodian fee
credits, the expense ratios would be 1.45% (Retail Class) and 1.70% (Service
Class) for the six months ended March 31, 2000, 1.44% (Retail Class) and
1.69% (Service Class) for 1999, 1.45% (Retail Class) and 1.70% (Service
Class) for 1998, 1.50% (Retail Class) and 1.75% (Service Class) for 1997,
1.44% (Retail Class) and 1.68% (Service Class) for 1996 and 1.50% (Retail
Class) and 1.72% (Service Class) for 1995.
(b) The ratios do not include a reduction of expenses for custodian fee credits
on cash balances maintained with the custodian. Including such custodian fee
credits, the expense ratios would be 1.14% (Retail Class) and 1.39% (Service
Class) for the six months ended March 31, 2000, 1.15% (Retail Class) and
1.40% (Service Class) for 1999, 1.17% (Retail Class) and 1.42% (Service
Class) for 1998, 1.25% (Retail Class) and 1.50% (Service Class) for 1997,
1.24% (Retail Class) and 1.49% (Service Class) for 1996 and 1.25% (Retail
Class) and 1.50% (Service Class) for 1995.
(c) During the period, certain fees were voluntarily reduced and/or reimbursed.
If such fee reductions and/or reimbursements had not occurred, the ratio
would have been as shown.
(d) Annualized.
See accompanying notes to financial statements.
23
<PAGE>
<TABLE>
<CAPTION>
THE GABELLI WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
===========================================================================================================================
Selected data for a share of beneficial interest outstanding throughout each period:
FOR THE
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 ----------------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
---------------- ------- -------- ------- ------- -------------------
RETAIL SERVICE
INTERMEDIATE BOND FUND RETAIL CLASS CLASS CLASS (C)
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING PERFORMANCE:
Net asset value, beginning
of period ...................... $9.99 $10.74 $10.29 $9.88 $9.98 $9.48 $9.48
----- ------ ------ ----- ----- ----- -----
Net investment income .............. 0.25 0.50 0.57 0.68 0.51 0.52 0.05
Net realized and unrealized gain
(loss) on investments ........... (0.02) (0.75) 0.45 0.41 (0.10) 0.50 (0.14)
----- ------ ------ ----- ----- ----- -----
Total from investment operations ... 0.23 (0.25) 1.02 1.09 0.41 1.02 (0.09)
----- ------ ------ ----- ----- ----- -----
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income .............. (0.25) (0.50) (0.57) (0.68) (0.51) (0.52) (0.05)
----- ------ ------ ----- ----- ----- -----
Total distributions ................ (0.25) (0.50) (0.57) (0.68) (0.51) (0.52) (0.05)
----- ------ ------ ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD ..... $9.97 $ 9.99 $10.74 $10.29 $9.88 $9.98 $9.34
===== ====== ====== ====== ===== ===== =====
Total return + ..................... 2.5% (2.4)% 10.2% 11.4% 4.5% 11.1% (1.0)%
===== ====== ====== ====== ===== ===== =====
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
Net assets, end of
period (in 000's) .............. $6,003 $6,214 $7,618 $5,912 $5,496 $4,729 $0
Ratio of net investment income
to average net assets .......... 5.07%(d) 4.82% 5.45% 6.71% 5.43% 5.38% 4.85%
Expenses net of waivers/
reimbursements (a) .............. 1.05%(d) 1.05% 1.08% 1.11% 1.09% 1.17% 1.45%
Expenses before waivers/
reimbursements (b) .............. 1.84%(d) 1.63% 2.08% 1.70% 2.46% 2.47% 4.07%
Portfolio turnover rate ............ 24% 108% 232% 628% 309% 165% 70%
</TABLE>
================================================================================
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
(a) The ratios do not include a reduction of expenses for custodian fee credits
on cash balances maintained with the custodian. Including such custodian fee
credits, the expense ratio would be 1.00% for each period.
(b) During the period, certain fees were voluntarily reduced and/or reimbursed.
If such fee reductions and/or reimbursements had not occurred, the ratio
would have been as shown.
(c) On November 8, 1994, all shares of the Service Class were redeemed and there
have been no further shares issued in this class since this date.
Accordingly, the NAV per share at the end of the period represents the net
asset value on November 8, 1994.
(d) Annualized.
See accompanying notes to financial statements.
24
<PAGE>
<TABLE>
<CAPTION>
THE GABELLI WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
=======================================================================================================================
Selected data for a share of beneficial interest outstanding throughout each period:
FOR THE YEAR ENDED
SIX MONTHS ENDED SEPTEMBER 30, PERIOD ENDED
MARCH 31, 2000 ------------------------- SEPTEMBER 30,
SMALLCAP EQUITY FUND (UNAUDITED) 1999 1998 1997(C)
---------------- ---------- ---------- ------------
OPERATING PERFORMANCE: RETAIL CLASS
------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ..................... $17.77 $11.18 $14.48 $10.00
------ ------ ------ ------
Net investment income (loss) ............................. (0.13) (0.12) (0.09) 0.08
Net realized and unrealized gain (loss) on investments ... 5.80 6.71 (2.39) 4.40
------ ------ ------ ------
Total from investment operations ......................... 5.67 6.59 (2.48) 4.48
------ ------ ------ ------
DISTRIBUTIONS TO SHAREHOLDERS:
In excess of net investment income ....................... -- -- (0.08) --
Net realized gain on investments ......................... (0.79) -- (0.60) --
In excess of net realized gain on investments ............ -- -- (0.14) --
------ ------ ------ ------
Total distributions ...................................... (0.79) -- (0.82) --
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD ........................... $22.65 $17.77 $11.18 $14.48
====== ====== ====== ======
Total return + ........................................... 32.6% 58.9% (17.7)% 44.8%
====== ====== ====== ======
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ..................... $33,548 $20,361 $11,694 $8,546
Ratio of net investment income (loss) to average
net assets ............................................ (1.39)%(d) (0.88)% (0.74)% 1.89%(d)
Expenses net of waivers/reimbursements (a) ............... 1.58%(d) 1.62% 1.72% 1.89%(d)
Expenses before waivers/reimbursements (b) ............... 1.63%(d) 1.72% 2.11% 2.45%(d)
Portfolio turnover rate .................................. 101% 178% 200% 146%
</TABLE>
================================================================================
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
(a) The ratios do not include a reduction of expenses for custodian fee credits
on cash balances maintained with the custodian. Including such custodian fee
credits, the expense ratios would be 1.50% for each period.
(b) During the period, certain fees were voluntarily reduced and/or reimbursed.
If such fee reductions and/or reimbursements had not occurred, the ratio
would have been as shown.
(c) Period from April 15, 1997 (inception date of fund) to September 30, 1997.
(d) Annualized.
See accompanying notes to financial statements.
25
<PAGE>
<TABLE>
<CAPTION>
THE GABELLI WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
=========================================================================================================================
Selected data for a share of beneficial interest outstanding throughout each period:
REALTY FUND MIGHTY MITES(SM) FUND
----------------------------------------- ----------------------------------------------
FOR THE YEAR ENDED FOR THE
SIX MONTHS ENDED SEPTEMBER 30, SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
MARCH 31, 2000 ----------------------- MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30,
(UNAUDITED) 1999 1998 (UNAUDITED) 1999 1998(D)
---------------- ---------- ----------- ---------------- ------------- -------------
OPERATING PERFORMANCE: RETAIL CLASS RETAIL CLASS
----------------------------------------- ----------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ...................... $7.61 $8.43 $10.00 $12.91 $ 9.70 $10.00
----- ----- ------ ------ ------ ------
Net investment income (loss) ..... 0.20 0.22 0.37 0.03 0.10 0.04
Net realized and unrealized
gain (loss) on investments ..... 0.21 (0.81) (1.37) 2.93 3.20 (0.34)
----- ----- ------ ------ ------ ------
Total from investment operations . 0.41 (0.59) (1.00) 2.96 3.30 (0.30)
----- ----- ------ ------ ------ ------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income ............ (0.21) (0.23) (0.33) (0.10) (0.09) --
In excess of net investment income -- -- -- -- -- --
Net realized gain on investments . -- -- -- (1.62) -- --
In excess of net realized gain
on investments ................. -- -- (0.24) -- -- --
----- ----- ------ ------ ------ ------
Total distributions .............. (0.21) (0.23) (0.57) (1.72) (0.09) --
----- ----- ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD ... $7.81 $7.61 $ 8.43 $14.15 $12.91 $ 9.70
===== ===== ====== ====== ====== ======
Total return + ................... 5.6% (5.7)% (10.5)% 24.3% 34.2% (3.0)%
===== ===== ====== ====== ====== ======
RATIOS TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA:
Net assets, end of
period (in 000's) .............. $1,602 $1,784 $1,815 $15,496 $10,205 $4,838
Ratio of net investment
income (loss)
to average net assets .......... 5.13%(c) 4.32% 3.87% 0.41%(c) 0.94% 1.60%(c)
Expenses net of waivers/
reimbursements (a) ............. 1.70%(c) 1.60% 1.70% 1.50%(c) 1.01% 2.05%(c)
Expenses before waivers/
reimbursements (b) ............. 3.72%(c) 3.68% 3.95% 2.04%(c) 2.32% 4.50%(c)
Portfolio turnover rate .......... 32% 55% 142% 31% 88% 18%
</TABLE>
================================================================================
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
(a) The ratios do not include a reduction of expenses for custodian fee credits
on cash balances maintained with the custodian. Including such custodian fee
credits, the expense ratios would be 1.50% and 1.50%, respectively for the
six months ended March 31, 2000. For the year ended September 30, 1999,
Realty and Mighty Mites Funds would be 1.50% and 1.00%, respectively, and
for the year ended September 30, 1998, for Realty and Mighty Mites would be
1.50% and 2.00%, respectively.
(b) During the period, certain fees were voluntarily reduced and/or reimbursed.
If such fee reductions and/or reimbursements had not occurred, the ratio
would have been as shown.
(c) Annualized.
(d) Period from May 11, 1998 (inception date of fund) to September 30, 1998.
26
<PAGE>
THE GABELLI WESTWOOD FUNDS
==========================
EQUITY FUND
BALANCED FUND
INTERMEDIATE BOND FUND
SMALLCAP EQUITY FUND
REALTY FUND
MIGHTY MITES(SM) FUND
(Unaudited)
GABELLI WESTWOOD FUNDS -- RETAIL CLASS SHARES
---------------------------------------------
Average Annual Returns -- March 31, 2000 (a)
Life of Inception
1 Year 5 Year Fund Date
--------------------------------------------------
Equity ................. 18.22% 23.03% 15.45% 01/02/87
Balanced ............... 11.12 17.31 14.28 10/01/91
Intermediate Bond ...... 1.25 6.56 6.15 10/01/91
SmallCap Equity ........ 70.34 -- 36.44 04/15/97
Realty ................. 6.81 -- (4.49) 09/30/97
Mighty Mites(SM) ....... 46.28 -- 28.95 05/11/98
GABELLI WESTWOOD FUNDS -- SERVICE CLASS SHARES
----------------------------------------------
Average Annual Returns -- March 31, 2000 (a)(b)
Life of Inception
1 Year 5 Year Fund Date
--------------------------------------------------
Equity ................. 13.18% 21.67% 18.18% 01/28/94
Balanced ............... 6.37 16.08 13.91 04/06/93
(a) Total returns and average annual returns reflect changes in share price and
reinvestment of dividends and are net of expenses. The net asset value of
the Fund is reduced on the ex-dividend (payment) date by the amount of the
dividend paid. Of course, returns represent past performance and do not
guarantee future results. Investment returns and the principal value of an
investment will fluctuate. When shares are redeemed they may be worth more
or less than their original cost.
(b) Includes the effect of the maximum 4.0% sales charge at the beginning of
the period.
<PAGE>
THE GABELLI WESTWOOD FUNDS
==========================
One Corporate Center
Rye, New York 10580-1434
GENERAL AND ACCOUNT INFORMATION:
1-800-GABELLI [1-800-422-3554]
fax: 1-914-921-5118
http://www.gabelli.com
e-mail: [email protected]
Board of Trustees
SUSAN M. BYRNE
PRESIDENT AND CHIEF
INVESTMENT OFFICER
KARL OTTO POHL
FORMER PRESIDENT
DEUTCHE BUNDESBANK
ANTHONY J. COLAVITA
ATTORNEY-AT-LAW
ANTHONY J. COLAVITA, P.C.
JAMES P. CONN
FORMER CHIEF INVESTMENT OFFICER
FINANCIAL SECURITY ASSURANCE
HOLDINGS LTD.
WERNER J. ROEDER, MD
MEDICAL DIRECTOR
LAWRENCE HOSPITAL
Officers
SUSAN M. BYRNE
PRESIDENT AND CHIEF
INVESTMENT OFFICER
LYNDA J. CALKIN, CFA
VICE PRESIDENT
JAMES E. MCKEE
SECRETARY
BRUCE N. ALPERT
VICE PRESIDENT AND TREASURER
PATRICIA R. FRAZE
VICE PRESIDENT
INVESTMENT ADVISER
Gabelli Advisers, Inc.
INVESTMENT SUB-ADVISER
Westwood Management Corporation
DISTRIBUTOR
Gabelli & Company, Inc.
CUSTODIAN
The Bank of New York
LEGAL COUNSEL
Battle Fowler LLP
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
- --------------------------------------------------------------------------------
This report is submitted for the information of the shareholders of The Gabelli
Westwood Funds. It is not authorized for distribution to prospective investors
unless preceded or accompanied by an effective prospectus.
- --------------------------------------------------------------------------------
GABWWQ100SR
