<PAGE>
THE GABELLI GROWTH FUND
One Corporate Center
Rye, New York 10580-1434
ANNUAL REPORT
DECEMBER 31, 1995
TO OUR SHAREHOLDERS:
It is hard to find fault with the stock market's performance in 1995. By most
measures it was one of the best years on record. Stock prices rose to successive
new highs in each quarter and we became accustomed to higher prices almost every
week of the year. Investing in 1995 was like living in a place where the sun
shines every day. Of course, we aren't complaining. We would gladly endure many
more years similar to the one just ended. The Gabelli Growth Fund posted strong
results each quarter to finish the year with a competitive return for
shareholders.
INVESTMENT RESULTS (a)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
Quarter
-----------------------------------------
1st 2nd 3rd 4th Year
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
1995: Net Asset Value..................... $20.86 $22.99 $24.91 $22.16 $22.16
Total Return........................ 6.0% 10.2% 8.4% 4.9% 32.7%
- ----------------------------------------------------------------------------------------------------------
1994: Net Asset Value..................... $21.90 $21.23 $22.58 $19.68 $19.68
Total Return........................ (5.8)% (3.1)% 6.4% (0.5)% (3.4)%
- ----------------------------------------------------------------------------------------------------------
1993: Net Asset Value..................... $21.71 $21.84 $23.43 $23.26 $23.26
Total Return........................ 0.6% 0.6% 7.3% 2.5% 11.3%
- ----------------------------------------------------------------------------------------------------------
1992: Net Asset Value..................... $20.27 $19.72 $20.50 $21.59 $21.59
Total Return........................ (4.7)% (2.7)% 4.0% 8.5% 4.5%
- ----------------------------------------------------------------------------------------------------------
1991: Net Asset Value..................... $18.18 $18.02 $19.51 $21.28 $21.28
Total Return........................ 11.7% (0.9)% 8.3% 12.0% 34.3%
- ----------------------------------------------------------------------------------------------------------
1990: Net Asset Value..................... $16.74 $17.80 $15.75 $16.27 $16.27
Total Return........................ (1.9)% 6.3% (11.5)% 6.2% (2.0)%
- ----------------------------------------------------------------------------------------------------------
1989: Net Asset Value..................... $13.99 $15.73 $17.46 $17.07 $17.07
Total Return........................ 10.6% 12.4% 11.0% 1.5% 40.1%
- ----------------------------------------------------------------------------------------------------------
1988: Net Asset Value..................... $10.87 $12.40 $12.71 $12.65 $12.65
Total Return........................ 16.1% 14.1% 2.5% 2.5% 39.2%
- ----------------------------------------------------------------------------------------------------------
1987: Net Asset Value..................... $10.00 $10.84 $11.28 $9.51 $9.51
Total Return........................ - 8.4%(b) 4.1% (15.7)% (4.9)%(b)
- ----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------
Average Annual Returns - December 31, 1995 (a)
- ----------------------------------------------
<S> <C>
1 Year.......................... 32.7%
5 Year.......................... 14.9%
Life of Fund (b)................ 15.9%
- ----------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Dividend History
- ---------------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
- ----------------- -------------- ------------------
<S> <C> <C>
December 29, 1995 $3.960 $22.16
December 30, 1994 $2.790 $19.68
December 31, 1993 $0.760 $23.26
December 31, 1992 $0.646 $21.59
December 31, 1991 $0.573 $21.28
December 31, 1990 $0.460 $16.27
December 29, 1989 $0.654 $17.07
December 30, 1988 $0.377 $12.65
January 4, 1988 $0.152 $9.58
</TABLE>
(a) Average annual and total 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) From commencement of operations on April 10, 1987.
<PAGE>
[GRAPH - COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE GABELLI
GROWTH FUND AND THE S&P 500 INDEX]
<TABLE>
Gabelli Growth Fund vs S&P 500 Index
Growth of $10,000 Investment
<CAPTION>
Gabelli Growth
S&P 500 Index Fund
------------- --------------
<S> <C> <C>
04/10/87 $10,000 $10,000
12/31/87 $ 8,490 $ 9,510
12/31/88 $ 9,891 $13,238
12/31/89 $13,016 $18,546
12/31/90 $12,612 $18,175
12/31/91 $16,459 $24,409
12/31/92 $17,282 $25,507
12/31/93 $19,027 $28,389
12/31/94 $19,274 $27,424
12/31/95 $26,521 $36,380
</TABLE>
INVESTMENT RESULTS
For the three months ended December 31, 1995, The Gabelli Growth Fund's total
return was 4.9%. Reflecting both the Fund's positive return during the quarter
and the $3.96 per share dividend paid on December 29, 1995, the Fund's net asset
value ended the year at $22.16, compared with $24.91 per share on September 30,
1995. The unmanaged Standard and Poor's 500 Index ("S&P 500"), a broad indicator
of stock market performance, returned 6.0% over the same period. For the full
calendar year, the Fund provided a total rate of return of 32.7%, vs. 37.6% for
the S&P 500.
For the five years ended December 31, 1995, the Fund had an average annual
return of 14.9%, which compares to an average annual return of 16.6% for the S&P
500 over the same period. The Fund's total return since inception on April 10,
1987 through December 31, 1995 was 263.8%, which is equivalent to an average
annual total return of 15.9%. This compares favorably to a total return of
165.2% for the S&P 500 over the same period, which is equivalent to an average
annual total return of 11.8%. On December 31, 1995 the shareholder base stood at
40,700 shareholders and total net assets of the Fund were $533.0 million.
ECONOMIC BACKGROUND
In our last report we stated "while it is too early to fear recession, lower
interest rates may be required to jump-start what looks like a slowing economy".
This comment remains valid. In stock market parlance, the economy finished the
year on a down-tick. Retail sales in the important Christmas season were weak
with few exceptions. Housing sales were similarly subdued, despite lower
mortgage rates. Moreover, the auto makers are boosting promotions in an effort
to revive flagging auto sales. Clearly, the economy's big engines are in low
gear.
Moving to address the deceleration in overall growth, the Federal Reserve
Board (Fed), chaired by Alan Greenspan, moved to ease monetary policy in
mid-December. The Fed reduced the targeted federal funds rate by 25 basis
points, to 5.50%. This followed a similar reduction implemented in July. In both
instances, the Fed left the discount rate unchanged at 5.25%. Time will tell
whether additional Fed easings are needed.
While we continue to believe a recession will be avoided in 1996, our
conviction in this outcome has declined. Given the new conservatism in
Washington, using fiscal policy as a stimulative tool to counteract a slowing
economy is highly unlikely if not practically impossible.
2
<PAGE>
In all likelihood, growth in 1996 will be stronger than in 1995. The silver
lining in this forecast of slow growth continues to be a low and unthreatening
rate of inflation. This is good news for financial assets.
FINANCIAL MARKETS OBSERVATIONS
The market's path to new highs narrowed in the fourth quarter. The technology
sector, which led the market's advance earlier in the year, fell victim to
concerns about slowing demand for personal computers and cellular phones.
Excitement generated by the Internet was insufficient to keep the whole sector
moving higher. The economy was slowing, along with demand for technology
products.
Mergers and acquisitions continued to support stock prices in what was a
record year for takeover activity. During the fourth quarter, the Fund benefited
from the Bank of Boston's (BKB - $46.25 - NYSE) pending acquisition of BayBanks
Inc. (BBNK - $98.25 - NASDAQ), a holding the Fund had purchased earlier in the
quarter. The consolidation trend in banking is alive and well. We note that
Wells Fargo's (WFC - $216.00 - NYSE) recent hostile bid for First Interstate
Bancorp (I - $136.50 - NYSE) is one of the few unfriendly attempts at a bank
acquisition. More are likely to follow.
Concerns about the economy, which led to weakness in technology and other
economically sensitive issues, gave strength to financial services, healthcare
and consumer staples issues. You may recall that these sectors have gone through
difficult periods in recent years. The banks experienced credit quality problems
with leveraged buy-outs, real estate, and loans to developing countries. The
healthcare industry lost its pricing power and needed to become leaner and more
disciplined, while the consumer brands fought off the challenge of generic and
low priced competition culminating in "Marlboro Friday". Now, it looks like the
time for retailing to restructure and downsize. Current income and spending
levels cannot profitably support the numerous retailing ventures now in
operation. The looming shake-out in retailing should result in some attractive
investment opportunities.
COMMENTARY
A number of important developments took place in 1995. We would like to
highlight several such developments which are likely to play an ongoing role in
influencing the course of the financial markets.
First, investors' love affair with mutual funds was instrumental in driving
the stock market to new highs in 1995. Mutual funds have empowered individuals
to invest with confidence in professionally managed portfolios across asset
classes and market segments. Individuals are becoming smarter investors and a
new generation of savers is becoming more comfortable investing in stocks. The
net cash flow into equity mutual funds averaged about $9 billion per month last
year. Stocks won't go up every year and some mutual funds will disappoint;
nevertheless, this is a powerful set of conditions.
Second, the record rate of mergers and acquisitions in 1995 resulted in a
shrinkage in the overall equity supply of approximately $80 billion. In other
words, the corporate demand for equities absorbed over $200 billion of supply
due to buybacks and cash acquisitions. This exceeded the level of new supply by
about $80 billion. While mergers and acquisitions will continue, the rapid pace
seen in 1995
3
<PAGE>
may slow. It is highly unusual to have a net reduction in the
equity supply during a year when initial public offerings added over $100
billion to the equity supply. Acquisitions kept the new equity supply from
weighing too heavily on the market.
Finally, as of this writing, the White House and Congress are negotiating a
deal to balance the Federal Budget over seven years. If successful, this has
positive implications for lower interest rates and hence, higher stock prices.
Part of this deal may involve a reduction in capital gains tax rates. This too,
has positive long-term implications for stock prices, although the short-term
effect may prove negative as investors unload low cost holdings.
LOOKING AHEAD
It would be tough for 1996 to best 1995. Don't count on it. Importantly, in
1996 we will see a Presidential election, raising the possibility that Alan
Greenspan will not be reappointed as Fed Chairman. Don't forget a budget that
may or may not move closer to being balanced and a capital gains tax rate which
may change. We will start the new year with a sluggish economy and increased
risk of recession. Any of these variables may rattle investors.
We will continue to emphasize stocks of companies with strong prospects for
above average long- term earnings growth. Our primary investment themes remain
economic globalization, the technology revolution and the aging of the developed
world's population. Since accurate market forecasting is an exercise in
futility, we encourage you to view The Gabelli Growth Fund as a long-term
investment in a diversified portfolio of America's finest established growth
companies.
LET'S TALK STOCKS
The following are stock specifics on selected holdings of our Fund's
investments. Favorable earnings prospects do not necessarily translate into
higher stock prices, but they do express a positive trend which we believe will
develop over time.
American International Group, Inc. (AIG - $92.50 - NYSE), headquartered in New
York City, is one of the world's leading insurance organizations, providing
property, casualty, marine, life and financial guaranteed insurance. AIG is a
global company with approximately one-half of its premium revenue derived from
foreign sources. The company's record of delivering relatively consistent
double-digit growth in earnings per share is without peer in the insurance
world. We expect earnings to rise by roughly 13% this year.
Citicorp (CCI - $67.25 - NYSE) is the holding company for a global network of
banks operating under the familiar Citibank brand. With operations in 32 states
and 92 foreign countries, Citibank's global footprint is the largest in
commercial banking. Management's goal is to be the leading retail bank in the
world and, at this point, they are well ahead of competitors in aggressively
pursuing this goal. We expect earnings to increase by a low double-digit rate
this year and shareholders should benefit from more stock repurchase activity
and a further dividend hike.
4
<PAGE>
First Data Corporation (FDC - $66.875 - NYSE) is a leading information
processing company. The company benefits from the increase in credit card usage,
as it processes credit and debit card transactions for over 1,400 financial
institutions. The company is also a leader in funds transfer services as well as
in processing information for the mutual fund and healthcare industries. First
Data's earnings per share are likely to increase approximately 20% this year.
Gillette Company (G - $52.125 - NYSE), along with Coca Cola, is the other
premier example of a consumer company that is well-situated to exploit
opportunities on a global basis. The company is aggressively pursuing foreign
markets and developing an impressive number of new products. Earnings should
advance at nearly a 20% rate this year, reflecting strong results both
domestically and abroad.
Home Depot, Inc. (HD - $47.875 - NYSE) is the undisputed leader of the home
improvement warehouse retailers. Declining mortgage rates should stimulate home
sales and enable the company to increase earnings per share by about 20% this
year. Led by Bernie Marcus, the company's founder, Home Depot is testing new
store formats which appeal to new markets (farming equipment and upscale
furnishings) providing incremental growth to what remains a terrific franchise
in do-it-yourself home hardware and supplies.
Mellon Bank Corporation (MEL - $53.75 - NYSE), with the acquisitions in recent
years of Dreyfus Corporation and The Boston Company, has become a powerhouse in
money management services. We believe the rising contribution to earnings from
predictable fee sources will enhance the company's valuation. We expect low
double-digit growth in earnings and an expansion of the company's share
repurchase program in 1996.
Merck & Co., Inc. (MRK - $65.75 - NYSE), is one of the world's largest
healthcare companies and a leader in pharmaceutical research and development.
With the acquisition of Medco Containment Services, Merck operates the largest
of the Pharmacy Benefit Managers. Merck's research effort has produced a
potential new blockbuster drug in Fosamax, for treatment of osteoporosis.
Fosamax was approved by the FDA in September. Earnings are likely to rise at a
low double-digit rate this year. We expect the company to use some of its
significant free cash flow to buy back stock and increase the dividend.
Nabisco Holdings Corp. (NA - $32.625 - NYSE) is the nation's largest
manufacturer of cookies and crackers and one of the biggest food companies in
the world. Some of its major brands include: Oreo, Chips Ahoy!, Newton,
Snackwell, Ritz, Grey Poupon, Milkbone and Life Savers. While foreign operations
currently represent about one-fourth of sales, we see a giant opportunity for
Nabisco in emerging markets. Management is moving vigorously to capitalize on
these and other global opportunities.
Philip Morris Companies Inc. (MO - $90.50 - NYSE) is a leading consumer products
company concentrating on tobacco (44% of revenues), food (49% of revenues) and
beverages (6% of revenues). The company's Marlboro brand commands about a 30%
share of the domestic cigarette market and Miller beer is second (behind
Anheuser Busch) in its market. Food brands include Jell-O, Kool-Aid, Kraft,
Sealtest and Post cereals. The company generates significant amounts of excess
cash which are used to repurchase stock and to support a healthy and rising
dividend payment to shareholders. We expect earnings per share to rise at about
a 15% rate this year.
5
<PAGE>
United Technologies (UTX - $94.875 - NYSE) is a manufacturing conglomerate
primarily serving the aerospace, automotive and construction markets. The
company is best known for its Pratt and Whitney jet engines, Carrier air
conditioners and Otis elevators. The company is benefiting from the upturn in
the commercial aircraft market and good demand for construction-related products
(elevators and air conditioners) domestically and abroad. Earnings per share
should grow at a low double-digit rate this year.
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.
GABELLI U.S. TREASURY MONEY MARKET FUND
Shareholders of any of the Gabelli Funds may invest in The Gabelli U.S.
Treasury Money Market Fund with an initial investment of $3,000 or more. The
Fund provides checkwriting and exchange privileges. The Fund's expenses are
capped at .30% of average net assets, making it one of the most attractive U.S.
Treasury-only money market funds. With dividends that are exempt from state and
local income taxes in all states, the Fund is an excellent vehicle in which to
store idle cash. An investment in The Gabelli U.S. Treasury Money Market Fund is
neither insured nor guaranteed by the U.S. Government. There can be no assurance
that the Fund will maintain a stable $1 per share net asset value. Call us at
1-800-GABELLI (1-800-422-3554) for a prospectus which gives a more complete
description of the Fund, including management fees and expenses. Read it
carefully before you invest or send money.
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).
The Fund's NASDAQ symbol is GABGX. Please call us during the day for further
information.
In closing, we thank you for the trust you have shown in our investment
capabilities and express our dedication to achieving our shared financial goal:
to increase the value of the assets you have entrusted to us.
Sincerely,
/s/Howard F. Ward /s/Donald C. Jenkins
-------------------------- --------------------------
HOWARD F. WARD, CFA DONALD C. JENKINS, CFA
Portfolio Manager Associate Portfolio Manager
January 31, 1996
NOTE: The views expressed in this report reflect those of the portfolio
manager only through the end of the period of this report as stated on the
cover. The manager's views are subject to change at any time based on
market and other conditions.
6
<PAGE>
THE GABELLI GROWTH FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
- ------------ ------------ ------------
<S> <C> <C> <C>
COMMON STOCKS--98.0%
ADVERTISING--1.1%
137,700 Interpublic Group of
Companies.................. $ 4,896,236 $ 5,972,738
------------ ------------
AEROSPACE--6.5%
134,700 Allied-Signal Inc........... 6,443,083 6,398,250
61,000 Boeing Co................... 3,567,676 4,780,875
131,000 Rockwell International
Corp....................... 6,323,427 6,926,625
43,000 Sundstrand Corp............. 2,720,763 3,026,125
68,000 TRW, Inc.................... 4,828,575 5,270,000
87,000 United Technologies......... 7,955,788 8,254,125
------------ ------------
31,839,312 34,656,000
------------ ------------
BROADCASTING--0.7%
106,000 Infinity Broadcasting Corp.,
Class A+................... 3,450,025 3,948,500
------------ ------------
BUILDING AND CONSTRUCTION--1.5%
63,000 Fluor Corporation........... 2,597,602 4,158,000
86,000 Foster Wheeler
Corporation................ 2,848,408 3,655,000
------------ ------------
5,446,010 7,813,000
------------ ------------
BUSINESS SERVICES--10.1%
84,000 Automatic Data Processing,
Inc........................ 5,177,520 6,237,000
137,500 Ceridian Corporation+....... 4,909,412 5,671,875
65,000 DSC Communications
Corporation+............... 2,595,083 2,396,875
255,900 First Data Corporation...... 12,897,825 17,113,312
172,000 General Motors Corporation,
Class E.................... 7,334,363 8,944,000
43,000 Honeywell, Inc.............. 2,045,525 2,090,875
74,000 Oracle Systems Corp.+....... 3,251,129 3,135,750
92,000 Reuters Holdings plc, Class
B, ADR..................... 4,342,125 5,071,500
39,000 U.S. Robotics............... 3,643,567 3,422,250
------------ ------------
46,196,549 54,083,437
------------ ------------
CABLE--1.1%
120,000 Cox Communications Inc.,
Class A, New+.............. 2,018,934 2,340,000
190,000 Tele-Communications, Inc.,
Class A+................... 585,879 3,776,250
------------ ------------
2,604,813 6,116,250
------------ ------------
CONGLOMERATES--1.8%
192,000 General Motors Corporation,
Class H.................... 7,252,288 9,432,000
------------ ------------
CONSUMER PRODUCTS--7.5%
31,000 CUC International Inc.+..... 1,091,575 1,057,875
75,000 Duracell International
Inc........................ 3,200,938 3,881,250
1,800 Estee Lauder Companies+..... 46,800 62,775
80,000 General Electric Company.... 3,819,838 5,760,000
264,000 Gillette Company............ 8,953,776 13,761,000
27,000 Kimberly-Clark Corp......... 2,147,600 2,234,250
126,000 Procter & Gamble Company.... 8,278,281 10,458,000
40,000 Ralston Purina Group........ 1,625,938 2,495,000
------------ ------------
29,164,746 39,710,150
------------ ------------
ENTERTAINMENT--3.2%
72,500 Time Warner Inc............. 2,564,275 2,745,937
18,000 Viacom Inc., Class A+....... 607,725 825,750
119,000 Viacom Inc., Class B+....... 5,396,713 5,637,625
132,000 Walt Disney Company......... 6,606,127 7,788,000
------------ ------------
15,174,840 16,997,312
------------ ------------
FINANCIAL SERVICES--17.8%
174,000 American Express Company.... $ 5,114,078 $ 7,199,250
92,000 American International
Group, Inc................. 6,028,918 8,510,000
1,500 Amerin Corp.+............... 24,000 40,125
157,000 BankAmerica Corp............ 8,832,272 10,165,750
142,000 Barnett Banks Inc........... 6,735,314 8,378,000
24,500 BayBanks Inc................ 2,022,059 2,407,125
134,000 Citicorp.................... 6,436,489 9,011,500
9,000 Federal National Mortgage
Association................ 1,117,950 1,117,125
80,000 First Tennessee National
Corporation................ 3,918,736 4,840,000
49,000 General Re Corporation...... 6,641,328 7,595,000
91,000 H&R Block Inc............... 4,096,300 3,685,500
219,000 Mellon Bank Corporation..... 8,691,003 11,771,250
230,000 Norwest Corporation......... 5,426,126 7,590,000
241,400 State Street Boston
Corporation................ 7,819,484 10,863,000
32,000 T. Rowe Price Associates
Inc........................ 1,678,069 1,576,000
------------ ------------
74,582,126 94,749,625
------------ ------------
FOOD, BEVERAGE AND TOBACCO--9.4%
152,000 Coca-Cola Company........... 6,283,922 11,286,000
267,000 Nabisco Holdings Corp.,
Class A.................... 7,388,815 8,710,875
149,000 PepsiCo, Inc................ 5,350,838 8,325,375
160,000 Philip Morris Companies
Inc........................ 10,098,739 14,480,000
82,400 Tootsie Roll Industries,
Inc........................ 2,531,782 3,265,100
76,000 Wrigley (Wm.) Jr. Company... 2,250,922 3,990,000
------------ ------------
33,905,018 50,057,350
------------ ------------
HEALTH CARE--12.3%
85,000 Amgen Inc.+................. 1,545,381 5,046,875
5,000 Biogen, Inc.+............... 305,820 307,500
68,700 Bristol-Myers Squibb Co..... 5,350,885 5,899,613
1,000 Chiron Corporation+......... 86,720 110,500
1,000 Genzyme Corp.+.............. 54,665 62,375
136,000 Johnson & Johnson........... 6,528,483 11,645,000
158,000 Lilly (Eli) & Co............ 5,352,848 8,887,500
207,000 Merck & Co., Inc............ 8,908,587 13,610,250
105,000 Pfizer Inc.................. 5,447,138 6,615,000
245,000 Schering-Plough
Corporation................ 9,102,070 13,413,750
------------ ------------
42,682,597 65,598,363
------------ ------------
HOTELS/CASINOS--0.3%
18,100 HFS Inc.+................... 1,200,480 1,479,675
------------ ------------
INDUSTRIAL EQUIPMENT AND SUPPLIES--1.2%
107,000 Illinois Tool Works, Inc.... 2,687,995 6,313,000
------------ ------------
MEDIA--0.1%
35,000 K-III Communications
Corp.+..................... 414,113 424,375
------------ ------------
PUBLISHING--1.1%
92,000 Tribune Co.................. 5,774,850 5,623,500
------------ ------------
RESTAURANTS--1.3%
157,000 McDonald's Corporation...... 5,053,475 7,084,625
------------ ------------
RETAIL--4.2%
188,906 Home Depot, Inc............. 7,057,101 9,043,875
155,200 Mattel, Inc................. 3,815,910 4,772,400
212,000 Office Depot Inc.+.......... 5,237,963 4,187,000
140,000 Walgreen Co................. 2,673,766 4,182,500
------------ ------------
18,784,740 22,185,775
------------ ------------
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
THE GABELLI GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
- ------------ ------------ ------------
<S> <C> <C> <C>
COMMON STOCKS (CONTINUED)
TECHNOLOGY--13.5%
40,000 AVX Corporation............. $ 1,187,895 $ 1,060,000
38,500 Bay Networks Inc.+.......... 1,588,132 1,583,312
45,000 Cisco Systems+.............. 3,437,954 3,358,125
145,000 Computer Associates
International, Inc......... 6,496,534 8,246,875
135,000 Digital Equipment Corp.+.... 6,202,817 8,656,875
70,000 Hewlett-Packard Co.......... 3,778,052 5,862,500
83,000 Intel Corporation........... 2,477,212 4,710,250
46,500 International Business
Machines Corporation....... 4,197,862 4,266,375
190,000 Loral Corporation........... 2,709,076 6,721,250
62,500 Molex Incorporated.......... 1,265,972 1,984,375
249,062 Molex Incorporated, Class
A.......................... 6,633,705 7,627,524
10,000 Raytheon Co................. 460,250 472,500
83,000 Silicon Graphics Inc.+...... 3,173,025 2,282,500
176,000 Sun Microsystems Inc.+...... 4,925,548 8,030,000
90,000 Texas Instruments, Inc...... 3,861,633 4,657,500
17,600 Xerox Corporation........... 2,292,055 2,411,200
------------ ------------
54,687,722 71,931,161
------------ ------------
TELECOMMUNICATIONS--2.7%
112,900 AT&T Corp................... 4,521,895 7,310,275
214,000 Ericsson (L.M.) Telephone
Company, Class B, ADR...... 2,989,692 4,173,000
25,000 Globalstar
Telecommunications+........ 500,000 943,750
58,000 Tellabs, Inc.+.............. 2,181,626 2,146,000
------------ ------------
10,193,213 14,573,025
------------ ------------
WIRELESS COMMUNICATIONS--0.6%
121,900 AirTouch Communications
Inc.+...................... $ 2,712,475 $ 3,443,675
------------ ------------
TOTAL COMMON STOCKS........................ 398,703,623 522,193,536
------------ ------------
<CAPTION>
PRINCIPAL
AMOUNT
- ------------
<S> <C> <C> <C>
U.S. TREASURY BILL--1.2%
$ 6,505,000 5.22% ++ due 02/08/1996..... 6,473,827 6,473,827
------------ ------------
TOTAL INVESTMENTS.................. 99.2% $405,177,450(a) 528,667,363
=============
OTHER ASSETS AND
LIABILITIES (NET)................. 0.8 4,373,762
----- ------------
NET ASSETS......................... 100.0% $533,041,125
===== =============
</TABLE>
- ---------------
(a) Aggregate cost for Federal tax purposes was $405,471,099. Net unrealized
appreciation for Federal tax purposes was $123,196,264 (gross unrealized
appreciation was $126,513,052 and gross unrealized depreciation was
$3,316,788).
+ Non-income producing security
++ Represents annualized yield at date of purchase.
ADR -- American Depositary Receipt
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
DECEMBER 31, 1995
<TABLE>
<S> <C>
First Data Corporation Mellon Bank Corporation
Philip Morris Companies Inc. Johnson & Johnson
Gillette Company Coca-Cola Company
Merck & Co., Inc. State Street Boston Corporation
Schering-Plough Corporation Procter & Gamble Company
</TABLE>
- -
- --------------------------------------------------------------------------------
- -
See Notes to Financial Statements
8
<PAGE>
THE GABELLI GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
- ----------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments, at value
(Cost $405,177,450)................ $528,667,363
Cash................................. 13,901
Receivable for investments sold...... 10,236,343
Dividends receivable................. 823,527
Receivable for Fund shares sold...... 879,760
Other assets......................... 1,548,600
------------
Total Assets..................... 542,169,494
------------
LIABILITIES:
Payable for investments purchased.... 4,512,118
Dividend payable..................... 3,757,752
Payable for investment advisory
fee................................ 456,875
Payable for distribution fees........ 261,138
Payable for transfer agent fees...... 99,000
Accrued expenses and other payables.. 41,486
------------
Total Liabilities................ 9,128,369
------------
Net assets applicable to
24,059,631 shares of beneficial
interest
outstanding.................... $533,041,125
===============
NET ASSETS CONSIST OF:
Shares of beneficial interest at par
value.............................. $ 240,596
Additional paid-in capital........... 409,736,588
Distributions in excess of net
realized gain on investments....... (425,972)
Net unrealized appreciation of
investments........................ 123,489,913
------------
Total Net Assets................. $533,041,125
============
Net Asset Value, offering and
redemption price per share
($533,041,125 / 24,059,631
shares outstanding; unlimited
number of shares authorized of
$0.01 par value)............... $22.16
=====
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
- ----------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividend income (net of foreign
withholding taxes of $19,229)....... $ 7,735,331
Interest income....................... 549,634
------------
Total Investment Income........... 8,284,965
------------
EXPENSES:
Investment advisory fee............... 4,985,525
Distribution fees..................... 1,246,381
Transfer agent fees................... 591,682
Shareholder communications expense.... 109,928
Trustees' fees........................ 80,568
Legal and audit fees.................. 41,371
Other................................. 111,682
------------
Total Expenses.................... 7,167,137
------------
NET INVESTMENT INCOME.................. 1,117,828
------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investments
sold................................ 80,758,385
------------
Net unrealized appreciation of
investments:
Beginning of year..................... 65,395,180
End of year........................... 123,489,913
------------
Change in net unrealized
appreciation of investments..... 58,094,733
------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS........................... 138,853,118
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS....................... $139,970,946
============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
12/31/95 12/31/94
------------- -------------
<S> <C> <C>
Net investment income....................................................................... $ 1,117,828 $ 1,771,347
Net realized gain on investments............................................................ 80,758,385 59,552,832
Net change in unrealized appreciation of investments........................................ 58,094,733 (84,422,105)
------------- -------------
Net increase/(decrease) in net assets resulting from operations............................. 139,970,946 (23,097,926)
Distributions to shareholders from:
Net investment income..................................................................... (1,002,446) (1,697,277)
Distributions in excess of net investment income.......................................... -- (167,272)
Net realized gain on investments.......................................................... (80,041,525) (58,588,684)
Distributions in excess of net realized gain on investments............................... -- (27,643)
Net decrease in net assets from Fund share transactions..................................... (8,356,403) (128,963,907)
------------- -------------
Net increase/(decrease) in net assets....................................................... 50,570,572 (212,542,709)
NET ASSETS:
Beginning of year........................................................................... 482,470,553 695,013,262
------------- -------------
End of year................................................................................. $ 533,041,125 $ 482,470,553
============= =============
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
THE GABELLI GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES. The Gabelli Growth Fund (the "Fund") was
organized on October 24, 1986 as a Massachusetts business trust. The Fund is a
diversified, open-end management investment company registered under the
Investment Company Act of 1940, as amended (the "1940 Act") whose primary
objective is capital appreciation. The Fund commenced operations on April 10,
1987. 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 significant accounting policies followed by the Fund in the
preparation of its financial statements.
SECURITY VALUATION. Portfolio securities which are traded only on a nationally
recognized securities exchange or in the over-the-counter market which are
National Market System Securities are valued at the last sale price as of the
close of business on the day the securities are being valued or, lacking any
sales, at the mean between closing bid and asked prices. Other over-the-counter
securities are valued at the mean between current bid and asked prices as
reported by NASDAQ, the National Quotation Bureau or such other comparable
sources as the Board of Trustees deems appropriate to reflect their fair value.
Portfolio securities which are traded both in the over-the-counter market and on
a stock exchange are valued according to the broadest and most representative
market, as determined by Gabelli Funds, Inc. (the "Adviser"). Securities and
assets for which market quotations are not readily available are valued at fair
value as determined in good faith by or under the direction of the Board of
Trustees of the Fund. Short-term investments that mature in more than 60 days
are valued at the highest bid price obtained from a dealer maintaining an active
market in that security. Short-term investments that mature in 60 days or fewer
are valued at amortized cost, unless the Board of Trustees determines that such
valuation does not constitute fair value.
FOREIGN CURRENCY. The books and records of the Fund are maintained in United
States (U.S.) dollars. Foreign currencies, investments and other assets and
liabilities are translated into U.S. dollars at the exchange rates prevailing at
the end of the period, and purchases and sales of investment securities, income
and expenses are translated on the respective dates of such transactions.
Unrealized gains and losses, not relating to securities, which result from
changes in foreign currency exchange rates have been included in unrealized
appreciation/depreciation of foreign currency and other assets and liabilities.
Unrealized gains and losses of securities, which result from changes in foreign
exchange rates as well as changes in market prices of securities, have been
included in unrealized appreciation/depreciation of investment securities. Net
realized foreign currency gains and losses resulting from changes in exchange
rates include foreign currency gains and losses between trade date and
settlement date on investment securities transactions, foreign currency
transactions and the difference between the amounts of interest and dividends
recorded on the books of the Fund and the amounts actually received. The portion
of foreign currency gains and losses related to fluctuation in exchange rates
between the initial trade date and subsequent sale trade date is included in
realized gain/(loss) on investments sold.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined using specific identification as the cost method. Interest income
(including amortization of premium and accretion of discount) is recorded as
earned.
10
<PAGE>
THE GABELLI GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividend income and dividends and
distributions to shareholders 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 Fund, timing
differences and differing characterization of distributions made by the Fund.
PROVISION FOR INCOME TAXES. The Fund has qualified and intends to continue to
qualify as a regulated investment company under Subchapter M of the Internal
Revenue Code of 1986, as amended. As a result, a Federal income tax provision is
not required.
2. AGREEMENTS WITH AFFILIATED PARTIES. The Fund has entered into an investment
advisory agreement (the "Advisory Agreement") with the Adviser which provides
that the Fund will pay the Adviser a fee, computed daily and paid monthly, at
the annual rate of 1.00 percent of the value of the Fund's average daily net
assets, to provide a continuous investment program for the Fund's portfolio,
provide all facilities and personnel, including offices, required for its
administrative management and pay the compensation of all officers and Trustees
of the Fund who are its affiliates. The Adviser is obligated to reimburse the
Fund in the event the Fund's expenses exceed the most restrictive expense ratio
limitation imposed by any state. No such reimbursement was required during the
year ended December 31, 1995.
3. DISTRIBUTION PLAN. The Fund has adopted a plan of distribution (the "Plan")
pursuant to Rule 12b-1 under the 1940 Act. Pursuant to this Plan, the
Distributor, Gabelli & Company, Inc. ("Gabelli & Company"), an indirect
majority-owned subsidiary of the Adviser, is authorized to purchase advertising,
sales literature and other promotional material and to pay its own salespeople.
The Fund will reimburse the Distributor for these expenditures up to 0.25
percent on an annual basis of the value of the Fund's average daily net assets.
In addition, if and to the extent that the fee the Fund pays to the Adviser, as
well as other payments the Fund makes, are considered as indirectly financing
any activity which is primarily intended to result in the sale of the Fund's
shares, such payments are authorized under the Plan. For the year ended December
31, 1995, the Fund incurred distribution costs under the Plan of $1,246,381,
representing 0.25 percent of the value of the Fund's average daily net assets.
4. PORTFOLIO SECURITIES. Cost of purchases and proceeds from sales of
securities for the year ended December 31, 1995, other than U.S. government and
short-term securities, aggregated $685,007,880 and $780,465,467, respectively.
5. TRANSACTIONS WITH AFFILIATES. During the year ended December 31, 1995, the
Fund paid brokerage commissions of $82,790 to Gabelli & Company and its
affiliates.
6. SHARES OF BENEFICIAL INTEREST. Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
12/31/95 12/31/94
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold................................................. 7,723,981 $ 177,580,810 8,826,361 $ 197,041,813
Shares issued upon reinvestment of dividends................ 3,489,327 77,284,488 2,929,789 57,657,339
Shares redeemed............................................. (11,667,885) (263,221,701) (17,122,413) (383,663,059)
----------- ------------- ----------- -------------
Net decrease................................................ (454,577) $ (8,356,403) (5,366,263) $(128,963,907)
=========== ============== =========== ==============
</TABLE>
11
<PAGE>
THE GABELLI GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Per share amounts for a Fund share outstanding throughout each period/year ended
December 31,
<TABLE>
<CAPTION>
1995 1994 1993 1992 1991 1990 1989 1988 1987*
--------- --------- --------- --------- --------- --------- --------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATING PERFORMANCE:
Net asset value, beginning of
year............................ $ 19.68 $ 23.26 $ 21.59 $ 21.28 $ 16.27 $ 17.07 $ 12.65 $ 9.51 $ 10.00
--------- --------- --------- --------- --------- --------- --------- -------- -------
Net investment income(a).......... 0.05 0.07 0.06 0.08 0.16 0.37 0.18 0.05 0.15
Net realized and unrealized gain
(loss) on investments........... 6.39 (0.86) 2.37 0.88 5.42 (0.71) 4.89 3.62 (0.64)
--------- --------- --------- --------- --------- --------- --------- -------- -------
Total from investment
operations...................... 6.44 (0.79) 2.43 0.96 5.58 (0.34) 5.07 3.67 (0.49)
--------- --------- --------- --------- --------- --------- --------- -------- -------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income........... (0.05) (0.08) (0.05) (0.09) (0.15) (0.39) (0.17) (0.20) --
Distributions in excess of net
investment income............. -- (0.01) -- -- -- -- -- -- --
Net realized gains.............. (3.91) (2.39) (0.67) (0.56) (0.42) (0.07) (0.48) (0.33) --
Distributions in excess of net
realized gains................ -- (0.31) (0.04) -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- -------- -------
Total distributions............... (3.96) (2.79) (0.76) (0.65) (0.57) (0.46) (0.65) (0.53) --
--------- --------- --------- --------- --------- --------- --------- -------- -------
Net asset value, end of year...... $ 22.16 $ 19.68 $ 23.26 $ 21.59 $ 21.28 $ 16.27 $ 17.07 $ 12.65 $ 9.51
========= ========= ========= ========= ========= ========= ========= ======== ========
Total return**.................... 32.7% (3.4)% 11.3% 4.5% 34.3% (2.0)% 40.1% 39.2% (4.9)%
========= ========= ========= ========= ========= ========= ========= ======== ========
RATIOS TO AVERAGE NET
ASSETS/SUPPLEMENTAL DATA:
Net assets, end of year (in
000's).......................... $ 533,041 $ 482,471 $ 695,013 $ 625,050 $ 422,589 $ 202,971 $ 113,187 $ 11,968 $ 3,532
Ratio of net investment income
to average net assets......... 0.22% 0.31% 0.22% 0.46% 0.97% 2.67% 2.24% 0.72% 2.94%+
Ratio of operating expenses to
average net assets(b)......... 1.44% 1.36% 1.41% 1.41% 1.45% 1.50% 1.85% 2.30% 2.00%+
Portfolio turnover rate........... 140.2% 40.3% 80.7% 45.9% 49.9% 74.7% 47.8% 81.7% 80.0%
</TABLE>
- ---------------
* The Fund commenced operations on April 10, 1987.
** 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.
+ Annualized.
(a) Net investment loss before expenses reimbursed by Adviser for the year ended
December 31, 1988 and the period ended December 31, 1987 was $(0.09) and
$(0.08), respectively.
(b) Operating expense ratios before expenses reimbursed by Adviser for the year
ended December 31, 1988 and the period ended December 31, 1987 were 4.38%
and 6.45%, respectively.
12
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
THE GABELLI GROWTH FUND
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Gabelli Growth Fund (the
"Fund") at December 31, 1995, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended and the financial highlights for each of the eight years in the
period then ended and for the period from April 10, 1987 (commencement of
operations) through December 31, 1987, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1995 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York
February 13, 1996
- --------------------------------------------------------------------------------
1995 TAX NOTICE TO SHAREHOLDERS (UNAUDITED)
For the fiscal year ended December 31, 1995, the Fund paid to shareholders, on
December 29, 1995, ordinary income dividends (comprised of net investment income
and short-term capital gains) totaling $1.29 per share. Additionally, on that
date, the Fund paid $2.67 per share in long-term capital gains. For fiscal year
1995, 29.2% of the ordinary income dividend qualifies for the dividend received
deduction available to corporations.
U.S. GOVERNMENT INCOME:
The percentage of the ordinary income dividend paid by the Fund during fiscal
1995 which was derived from U.S. Treasury securities was 0.06%. Such income is
exempt from state and local income tax in all states. However, many states,
including New York and California, allow a tax exemption for a portion of the
income earned only if a mutual fund has invested at least 50% of its assets at
the end of each quarter of the Fund's fiscal year in U.S. Government securities.
The Gabelli Growth Fund did not meet this strict requirement in 1995. Due to the
diversity in state and local tax law, it is recommended that you consult your
personal tax advisor for the applicability of the information provided as to
your own situation.
- --------------------------------------------------------------------------------
13
<PAGE>
This page left intentionally blank
<PAGE>
GABELLI FAMILY OF FUNDS
Distributed by Gabelli & Company, Inc.
One Corporate Center, Rye, NY 10580-1435
GABELLI ASSET FUND ------------------------------------------------------------
Invests in a diversified portfolio of companies selling below their private
market value. The Fund's primary objective is to seek growth of capital.
(No-load)
Portfolio Manager: Mario J. Gabelli, CFA
GABELLI GROWTH FUND -----------------------------------------------------------
Invests in a diversified portfolio of common stocks that have favorable, yet
undervalued, prospects for earnings growth. The Fund's primary objective is to
seek capital appreciation by employing an earnings-driven investment approach.
(No-load)
Portfolio Manager: Howard F. Ward, CFA
GABELLI VALUE FUND ------------------------------------------------------------
Invests in a concentrated portfolio of securities of companies which are selling
below their private market value. The Fund's primary objective is long-term
capital appreciation. $250 initial minimum for IRAs.
Portfolio Manager: Mario J. Gabelli, CFA
Max. Sales charge: 5 1/2%
GABELLI SMALL CAP GROWTH FUND -------------------------------------------------
Invests primarily in equity securities of smaller companies (companies with a
total market capitalization of less than $500 million) which are believed likely
to have rapid growth in revenues and earnings. The Fund's primary objective is
to seek capital appreciation.
Portfolio Manager: Mario J. Gabelli, CFA
Max. Sales charge: 4 1/2%
GABELLI EQUITY INCOME FUND ----------------------------------------------------
Invests primarily in a portfolio of income producing equity securities. Pays
quarterly dividends. The Fund's primary objective is to seek a high level of
total return.
Portfolio Manager: Mario J. Gabelli, CFA
Max. Sales charge: 4 1/2%
GABELLI'S WESTWOOD FUNDS ------------------------------------------------------
Three investment portfolios, designed to pursue a variety of investment
objectives: Equity Fund seeks capital appreciation, Balanced Fund seeks income
and growth, and Intermediate Bond Fund seeks current income. (No-load)
Portfolio Managers: Susan Byrne & Pat Fraze
GABELLI GLOBAL SERIES ---------------------------------------------------------
GABELLI GLOBAL TELECOMMUNICATIONS FUND
Invests in telecommunications companies throughout the world. Targets
undervalued companies with strong earnings per share and cash flow dynamics.
The Fund's primary objective is to seek capital appreciation.(No-load)
Team Manager: Mario J. Gabelli, CFA
GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
Invests principally in bonds and preferred stocks which are convertible into
common stock of foreign and domestic companies. The Fund's primary objective
is to seek a high level of total return through a combination of current
income and capital appreciation. (No-load)
Portfolio Manager: Hart Woodson
GABELLI GLOBAL INTERACTIVE COUCH POTATO(R) FUND
Invests in companies involved in communications, creativity and copyright
throughout the world. The Fund will also invest in companies participating
in emerging technological advances in interactive services and products. The
Fund's primary objective is to seek capital appreciation. (No-load)
Portfolio Manager: Mario J. Gabelli, CFA
GABELLI GOLD FUND -------------------------------------------------------------
Invests in a global portfolio of equity securities of gold mining and related
companies. The Fund's primary objective is to seek capital appreciation.
Investment in gold stocks is considered speculative and is affected by a variety
of worldwide economic, financial and political factors. (No-load)
Portfolio Manager: Caesar Bryan
GABELLI INTERNATIONAL GROWTH FUND ---------------------------------------------
Invests in a diversified portfolio of equity securities of companies outside of
the U.S. Seeks to achieve international diversification and capital
appreciation, and to serve as a complement to a domestic investment portfolio.
(No-load)
Portfolio Manager: Caesar Bryan
The five funds above invest in foreign securities which involves risks not
ordinarily associated with investments in domestic issues, including currency
fluctuation, economic and political risks.
GABELLI U.S. TREASURY MONEY MARKET FUND ---------------------------------------
Invests exclusively in short-term U.S. Treasury securities. The Fund's primary
objective is to provide high current income consistent with the preservation of
principal and liquidity. Features low expenses, free checkwriting, telephone
exchange and redemption privileges.
Portfolio Manager: Ronald Eaker
To request a prospectus, call 1-800-GABELLI (1-800-422-3554)
Or, visit our Internet homepage at: http://www.gabelli.com
The prospectus(es) contain more complete information, including fees and
expenses, and should be read carefully prior to investing.
<PAGE>
THE GABELLI GROWTH FUND
One Corporate Center
Rye, New York 10580-1434
1-800-GABELLI
[1-800-422-3554]
FAX: 1-914-921-5118
http://www.gabelli.com
e-mail: [email protected]
(Net Asset Value may be obtained daily by calling
1-800-GABELLI after 6:00 P.M.)
[PHOTO]
BOARD OF TRUSTEES
Mario J. Gabelli, CFA Karl Otto Pohl
Chairman and Chief Former President
Investment Officer Deutsche Bundesbank
Gabelli Funds, Inc.
Felix J. Christiana Anthony R. Pustorino
Former Senior Certified Public Accountant
Vice President Professor, Pace University
Dollar Dry Dock Savings
Bank Anthony Torna
Herzog, Heine & Geduld,
Anthony J. Colavita Inc.
Attorney-at-Law
Anthony J. Colavita, P.C. Anthonie C. van Ekris
Managing Director
James P. Conn BALMAC International,
Managing DIrector and Inc.
Chief Investment Officer
Financial Security Salvatore J. Zizza
Assurance Holdings, Ltd. Chairman, Chief Executive
Officer
Dugald A. Fletcher The Lehigh Group, Inc.
President
Fletcher & Company, Inc.
OFFICERS AND PORTFOLIO MANAGERS
Bruce N. Alpert Howard F. Ward, CFA
President and Treasurer Portfolio Manager
James E. McKee Donald C. Jenkins, CFA
Secretary Associate Portfolio Manager
DISTRIBUTOR
Gabelli & Company, Inc.
CUSTODIAN, TRANSFER AGENT AND DIVIDEND AGENT
State Street Bank and Trust Company
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom
- --------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of The
Gabelli Growth Fund. It is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective prospectus.
- --------------------------------------------------------------------------------
THE
GABELLI
GROWTH
FUND
ANNUAL REPORT
DECEMBER 31, 1995
