[Photograph of
Mario Gabelli]
The
Gabelli
Global
Convertible
Securities
Fund
SEMI-ANNUAL REPORT
JUNE 30, 1996
<PAGE>
Gabelli Global Series Funds, Inc.
The Gabelli Global
Convertible Securities Fund
Semi-Annual Report - June 30, 1996
[Photo of Hart Wooodson]
To Our Shareholders:
The Fund's total return for the six month period ended June 30, 1996, was
7.0%. For the twelve month period ended June 30, 1996, the Fund's net asset
value increased 12.5%. Global convertible markets, measured by the Jeffries
Global Convertible Bond Index, returned 5.6% over the last six months and 12.0%
over the past twelve months. The Lipper Analytical Services, Inc. Convertible
Securities Index increased 7.1% over the last six months and 15.6% over the last
twelve months. The Lipper Index consists primarily of domestic convertible
funds, therefore we believe the Jeffries Index is a more appropriate benchmark
by which to judge our Fund's performance which has approximately 66% of its
assets invested outside the United States. The Fund's cumulative return since
its inception on February 3, 1994 was 21.6%, which equates to an average annual
return of 8.5%.
INVESTMENT RESULTS (a)
- --------------------------------------------------------------------------------
Quarter
--------------------------------------
1st 2nd 3rd 4th Year
------ ------ ------ ------ ------
1996: Net Asset Value..... $11.34 $11.55 -- -- --
Total Return........ 5.1% 1.9% -- -- --
- --------------------------------------------------------------------------------
1995: Net Asset Value..... $10.09 $10.64 $11.05 $10.79 $10.79
Total Return........ 1.6% 5.5% 3.9% 1.2% 12.6%
- --------------------------------------------------------------------------------
1994: Net Asset Value..... $10.38 $10.37 $10.64 $ 9.93 $ 9.93
Total Return........ 3.8%(b) (0.1)% 2.6% (5.2)% 0.9%(b)
- --------------------------------------------------------------------------------
- ------------------------------------------
Average Annual Returns - June 30, 1996 (a)
- ------------------------------------------
1 Year ............................. 12.5%
Life of Fund (b) ................... 8.5%
- ------------------------------------------
Dividend History
- ---------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
- ----------------- -------------- ------------------
December 29, 1995 $0.393 $10.79
December 30, 1994 $0.160 $ 9.93
(a) Average annual and total returns reflect changes in share price,
reinvestment of dividends and are net of expenses. 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 February 3, 1994. Note: Investing in foreign securities involves
risks not ordinarily associated with investments in domestic issues, including
currency fluctuation, economic and political risks.
- --------------------------------------------------------------------------------
<PAGE>
Our Investment Objective
The Fund's objective is to obtain a high rate of total return by investing
in global convertible securities. We expect to achieve an above-average rate of
return by investing primarily in coupon paying convertible securities which meet
our selective investment criteria.
Our Approach
We weigh both country-specific and company-specific factors to make our
investment decisions. Country-specific factors include political stability,
economic growth, inflation and trends in interest rates. With regard to
companies, we seek firms which are undervalued in relation to their long-term
potential value. We then look for some dynamic in the country or company which
can unlock this value. In the case of global telecommunications, the dynamic is
the privatization of state-owned monopolies. In developing countries, it is the
need to provide the infrastructure for growth. In Japan, it is the change from
an industrial to a consumer-oriented economy. In commodities, it is the pick-up
in industrial demand.
What are Global Convertible Securities?
Global convertible securities are bonds, preferred shares and warrants of
domestic or foreign issuers which may be converted into a fixed number of shares
of the underlying company. Convertibles are hybrid securities which combine the
capital appreciation potential of equities with the higher yield of fixed income
instruments. They can be thought of as a straight bond together with an embedded
call option (or warrant) on the underlying equity.
Market makers maintain an active market of $413 billion in global
convertible securities. Growth continues to come from both Europe and Asia.
Despite a pick-up of new issue activity in the U.S., redemptions have continued
to outpace new issues by over $2 billion year-to-date. Recent noteworthy
transactions include the world's first sovereign issue by Italy into INA ($2
billion), and the first corporate issues from Turkey (Medya Holdings) and
Vietnam (REE Refrigeration).
What Are the Benefits of Global Convertible Securities?
Reduced volatility is foremost. Investing in foreign equity markets can be
rewarding but volatile. Our goal is to earn a high, risk-adjusted rate of
return. Due to its fixed income characteristics, a convertible security will
provide more stability than its underlying common stock. In the current market
environment, in which investors are seeking alternatives to bond funds in favor
of global or international funds, the Gabelli Global Convertible Securities Fund
provides an attractive alternative by combining the capital appreciation
potential of global equity investing with the higher current income usually
associated with bonds.
Thailand: Beauty or Beast?
With a population of 60 million and an average annual growth rate of 9.5%
over the last ten years, Thailand's economy has long-term potential for
investors. Opportunities have grown substantially as the number of companies
listed on the Thai market have more than quadrupled since 1986. Thailand's total
market capitalization has grown to $145 billion, representing 10% of the
non-Japan Asia region. As U.S. interest rates rise, Thailand's growth will
continue unabated because of the low correlation to the U.S. In
2
<PAGE>
fact, over the last five years, the correlation between the two markets has been
a low 0.15. Although short-term performance has lagged, rates of return have
averaged 33.0% over the last ten years versus only 13% in the U.S. Your fund has
7% of its assets in Thailand.
Thailand's economic challenges are inflation and a current account
deficit. In 1995, inflation was 5.8%. Inflation rose due to high food prices
caused by flooding. This problem is expected to subside and inflation estimates
for 1996 predict a decrease to 5.0% in 1997. The current account deficit as a
percentage of GDP reached a high of 6.5% in 1995, but has since fallen to 6.3%
through 1996. Foreign reserves rose by 35% in 1995, to approximately $37
billion.
An important factor for investors is political stability. A reshuffling of
Prime Minister Banharn Silpa-Archa's cabinet caused stock prices to rise because
the new cabinet will be able to move forward on a number of important economic
policy questions. The new cabinet has already approved a number of
infrastructure projects which will benefit your fund holdings like Banpu Public
Company and Hemaraj Land Development Co.
THE PORTFOLIO
Global Allocation
The chart at the right represents the Fund's holdings by geographic region
on June 30, 1996. The geographic allocation will change based on current global
market conditions. Countries and/or regions represented in the chart and below
may or may not be included in the Fund's future portfolio.
[The following table appeared as a pie chart in the printed materials.]
HOLDINGS BY GEOGRAPHIC REGION 6/30/96
Asia/Pacific Rim 24.1%
United States 34.0%
Europe 19.5%
Japan 11.3%
Canada 2.0%
Latin America 5.1%
South Africa 4.0%
Let's Talk Converts
The following are specifics on selected holdings of our Fund's
investments. Favorable EBITDA (earnings before interest, taxes, depreciation and
amortization) prospects do not necessarily translate into higher prices, but
they do express a positive trend which we believe will develop over time.
Banpu Public Company (Sub Deb. Cv., 2.75%, 4/10/03) is Thailand's largest
private sector mining company engaged in the construction and operation of
CoGeneration electricity plants. Banpu owns 55% of CoGeneration Company (COCO),
an independent power supplier to the Electricity Generating Authority of
Thailand (EGAT). Banpu is in the final stages of a competitive bid to acquire
additional licensing rights to expand its electric production capabilities.
Banpu is well-positioned to acquire such rights because of its large coal
reserves and EGAT's plans to buy more power from private producers, as the
estimated demand for electricity in Thailand will nearly double by 2006. Banpu's
debt/equity ratio is 173%.
With the stock at 780 Baht, the convertible notes ($103.625) have a yield
to maturity of 6.8% and a low 8.0% premium.
3
<PAGE>
Hemaraj Land Development Co. (Sub. Deb. Cv., 3.50%, 9/09/03) develops industrial
estates in Thailand. Hemaraj should be a beneficiary of the continuing economic
growth in Thailand. The company is also bidding in partnership with Bectel on a
number of independent power plant projects. A specific example of the growing
need for industrial space is GM's decision to build a $750 million auto plant
outside Bangkok. Hemaraj has a solid balance sheet with a debt/equity ratio of
50% and an interest coverage ratio of 4.3 times.
With the stock at 163 Baht, the convertible bonds ($98.50) offer good
participation with only a 15% premium. The bonds have excellent downside
protection because of an attractive 10.6% yield to their September 1995 put
price of $116.50.
Total Access Communications plc (Sub. Deb. Cv., 2.00%, 11/26/05) is the leader
of cellular telecommunications in Thailand. Over the last four and a half years,
the company has managed to grow more than 50% a year. TAC's subscriber base has
grown by 8,000 in the last six months to a total of 28,500. TAC owns a large
part of the frequency band which is used for cellular radio services. With the
expectation that the Thai government will further deregulate the industry, TAC
has sold a portion of its frequency band rights to International Engineering
(IEC), an affiliate of TAC. TAC owns 6.3% of IEC. Proceeds from the sale will
strengthen TAC's balance sheet, and allow it to further expand its cellular
network. TAC's debt/equity ratio is 45% and its pre-tax interest coverage ratio
is 4.7 times.
With the stock at 8.4 Baht, the convertible bonds ($99.625) offer an
attractive risk-reward trade-off with a 25% premium and an 8.0% yield to its May
2001 put price of $133.85.
Robinson Department Store (Sub Deb. Cv., 3.25%, 7/27/00) After merging with
Central, Thailand's largest department store, Robinson is on track to become
Thailand's leading retailer. Serving middle income consumers with increasing
disposable income, Robinson plans to more than double its total number of stores
to twenty-six by 1998. The GDP per-capita in Thailand has grown 13% from 1994 to
1995 as compared to only 3.7% in the U.S., and a recent government tax cut on
luxury items should help stimulate sales. The net debt/equity ratio was 1.18% in
1995.
With the stock at 60.0 Baht, the convertible bonds ($109.00) will enjoy
nearly full participation with the stock because of a low 5.0% premium. The
yield to its short July 2000 maturity is 6.1% versus a dividend yield of 1.21%
on the stock.
Tanayong Ltd. (Sub. Deb. Cv., 3.50%, 3/01/04) is a Thai property developer. Its
major project is the creation of the Bangkok Mass Transit System Corp. (BTSC)
for the Bangkok Metropolitan Administration. This elevated rail system is
expected to be completed by early 1999 and should generate substantial cash
flow. The project has an estimated net present value of Baht 30 billion ($1.18
billion) which would double the company's total assets. Tanayong is expected to
spin off a portion of the project to the public in the near future. In
recognition of the importance of developing infrastructure, the International
Finance Corp. recently increased its loan commitment to the BTSC by $20 million,
bringing the total to $70 million. Tanayong generates most of its revenue from
Thana City, a residential community outside of Bangkok. The company's
debt/equity ratio is 61%, with an interest coverage ratio of 14.35 times.
With the stock at 36.1 Baht, the convertible bonds ($78.00) are out of the
money, or "busted" with a 126.0% premium. Investors are being paid to wait for
the recovery of Tanayong stock with an attractive 20.8% yield to the bonds March
1999 put price of $118.03.
Minimum Initial Investment - $1,000
The minimum initial investment will be $1,000 until the Fund has grown to
over $100,000,000 in assets under management, at which time the minimum will
increase to $25,000 for new investors. There is no initial minimum investment
for accounts established through our Automatic Investment Plan. Shares
4
<PAGE>
of the Fund are currently being offered at no load indefinitely. Furthermore,
The Gabelli Global Convertible Securities Fund and many of our other Funds are
available through the no-transaction fee programs at many major discount
brokerage firms.
Internet
You can now visit us on the Internet. Our home page at
http://www.gabelli.com contains information about Gabelli Funds, Inc., the
Gabelli Mutual Funds, quarterly reports, closing prices, IRAs, 401(k)s and other
current news. You can also send us e-mail at [email protected].
In Conclusion
The future for global convertible investing promises to be rewarding. We
appreciate your confidence in our investment abilities and promise to continue
working to find the best investment opportunities in the world.
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 GAGCX. Please call us during the
day for further information.
We thank you for your investment with us and will strive to achieve our
shared investment objective of strong risk adjusted returns.
Sincerely,
/S/ Hart Woodson
A. Hartswell Woodson, III
Vice President and Portfolio Manager
August 1, 1996
------------------------------------------------------------------
TOP TEN HOLDINGS
June 30, 1996
-------------
Tele 2000 S.A. Metro Pacific Capital Ltd.
Yang Ming Marine Transport Stillwater Mining Ltd.
Thermo Electron Corporation Tjiwi Kimia, PT
International CableTel Incorporated Telekom Malaysia Berhad
Finaxa Liberty Property Trust
------------------------------------------------------------------
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.
5
<PAGE>
The Gabelli Global Convertible Securities Fund
Portfolio of Investments -- June 30, 1996 (Unaudited)
================================================================================
Principal Market
Amount Cost Value
------ ---- -----
CONVERTIBLE SECURITIES -- 91.19%
CONVERTIBLE CORPORATE BONDS -- 73.41%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 1.54%
1,147,500(a) Michelin France Sub. Deb. Cv.
2.50%, 01/01/01............... $ 225,692 $249,636
---------- ----------
BUILDING AND CONSTRUCTION -- 2.77%
$ 250,000 Bacnotan Consolidated
Sub. Deb. Cv.
5.50%, 06/21/04.............. 243,497 237,500
200,000 New World Infrastructure Ltd.
Sub. Deb. Cv.
5.00%, 07/15/01.............. 200,000 212,000
---------- ----------
443,497 449,500
---------- ----------
CABLE -- 4.55%
300,000 Comcast Corporation Sub. Deb. Cv.
1.125%, 04/15/07.............. 165,401 148,125
250,000 International CableTel Incorporated
Sub. Deb. Cv.
7.25%, 04/15/05(g)........... 252,373 302,500
150,000 News American Holdings
Incorporated Sub. Deb. Cv.
Zero Cpn., 03/11/13.......... 64,875 72,938
250,000 Tele Communications
International, Inc.
Sub. Deb. Cv.
4.50%, 02/15/06.............. 250,000 215,000
---------- ----------
732,649 738,563
---------- ----------
CONSUMER PRODUCTS -- 5.67%
20,000,000(b) Matsushita Electric Industrial Co., Ltd.
Sub. Deb. Cv.
1.30%, 03/29/02.............. 224,492 233,897
20,000,000(b) Matsushita Electric Work, Ltd.
Sub. Deb. Cv.
2.70%, 05/31/02.............. 242,283 233,897
20,000,000(b) Sony Corporation Sub. Deb. Cv.
0.15%, 03/30/01.............. 200,482 203,563
250,000 U.S. Office Products Co.
Sub. Deb. Cv.
5.50%, 02/01/01.............. 250,000 249,063
---------- ----------
917,257 920,420
---------- ----------
DIVERSIFIED INDUSTRIAL -- 5.99%
100,000(c) Cookson Group plc Sub. Deb. Cv.
7.00%, 11/02/04.............. 164,516 173,160
20,000,000(b) Kawasaki Heavy Industries Ltd.
Sub. Deb. Cv.
0.80%, 09/28/01 ............. 216,550 222,385
10,000,000(b) Kokusai Electric Co. Ltd.
Sub. Deb. Cv.
1.30%, 09/30/02 ............. 110,072 100,594
100,000 President Enterprises
Sub. Deb. Cv.
Zero Coupon, 07/22/01........ 112,750 163,750
100,000 PT Eka Gunatama Mandiri Sub.
Deb. Cv. 4.00%, 10/04/97..... 97,517 164,000
150,000 Samancor Ltd. Sub. Deb. Cv.
7.00%, 06/30/04.............. 143,087 147,000
---------- ----------
844,492 970,889
---------- ----------
ENERGY -- 0.90%
100,000 Pennzoil Company Sub. Deb. Cv.
6.50%, 01/15/03.............. 137,113 146,000
---------- ----------
FINANCIAL SERVICES -- 8.08%
1,328,900(a) Finaxa Sub. Deb. Cv.
3.00%, 01/01/01.............. 286,062 288,684
150,000 Investec O/S Finance BVI
Sub. Deb. Cv.
6.375%, 11/30/02............. 153,383 153,000
250,000 Medya Holding Sub. Deb. Cv.
10.00% 06/28/01(g)........... 249,500 252,500
100,000 Metrobank International
Finance Ltd. Sub. Deb. Cv.
2.75%, 09/10/00.............. 100,000 122,000
250,000 Metro Pacific Capital Ltd.
Sub. Deb. Cv.
2.50%, 04/11/03.............. 278,716 280,000
20,000,000(b) Mitsui & Co. Ltd.
Sub. Deb. Cv.
1.50%, 03/31/03.............. 218,608 213,796
---------- ----------
1,286,269 1,309,980
---------- ----------
FOOD AND BEVERAGES -- 2.41%
270,000(a) BSN SA Unsub. Deb. Cv.
6.60%, 01/01/00.............. 52,777 62,900
500,000(e) Danisco A/S Sub. Deb. Cv.
5.00%, 02/21/04.............. 92,980 98,578
997,500(a) Groupe Saint Louis
Sub. Deb. Cv.
7.00%, 01/01/00.............. 220,402 228,878
---------- ----------
366,159 390,356
---------- ----------
HEALTH CARE -- 2.91%
500,000 Roche Holding Ltd. Sub. Deb. Cv.
Zero Coupon, 04/20/10(g)..... 193,392 216,875
250,000 TheraTx Inc. Sub. Deb. Cv.
8.00%, 02/01/02.............. 228,600 255,000
---------- ----------
421,992 471,875
---------- ----------
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
The Gabelli Global Convertible Securities Fund
Portfolio of Investments (Continued) -- June 30, 1996 (Unaudited)
================================================================================
Principal Market
Amount Cost Value
------ ---- -----
INDUSTRIAL EQUIPMENT AND SUPPLIES -- 4.62%
$ 200,000 Alfa S.A. de C.V. Sub. Deb. Cv.
8.00%, 09/15/00(g)............ $ 201,271 $ 214,250
250,000 Polymax Sub. Deb. Cv.
2.00%, 02/27/06............... 229,390 231,250
250,000 Thermo Electron Corporation
Sub. Deb. Cv.
4.25%, 01/01/03............... 303,412 304,375
---------- ----------
734,073 749,875
---------- ----------
METALS AND MINING -- 8.15%
250,000 Banpu Public Co., Ltd. Sub. Deb. Cv.
2.75%, 04/10/03............... 256,254 259,063
100,000 Coeur d'Alene Mines Corporation
Sub. Deb. Cv.
6.375%, 01/31/04.............. 100,853 98,125
300,000(d) Hoogovens Groep BV Sub. Deb. Cv.
4.50%, 04/11/01............... 187,683 184,318
150,000 Inco Ltd. Sub. Deb. Cv.
5.75%, 07/01/04............... 166,360 188,813
100,000(c) Lonrho Finance Public Sub. Deb. Cv.
6.00%, 02/27/04............... 141,745 158,794
150,000 Pegasus Gold Inc. Sub. Deb. Cv.
6.25%, 04/30/02............... 185,393 155,438
250,000 Stillwater Mining Ltd. Sub. Deb. Cv.
7.00%, 05/01/03(g)............ 250,000 277,500
---------- ----------
1,288,288 1,322,051
---------- ----------
PAPER AND FOREST PRODUCTS -- 2.18%
500,000(f) Kymmene Corporation Sub. Deb. Cv.
8.25%, 11/18/43............... 110,912 120,664
250,000 Sappi BVI Finance Ltd. Sub. Deb. Cv.
7.50%, 08/01/02............... 238,256 233,125
---------- ----------
349,168 353,789
---------- ----------
REAL ESTATE / DEVELOPMENT -- 7.45%
20,000,000(b) Heiwa Real Estate Sub. Deb. Cv.
2.50%, 03/29/02............... 230,842 217,816
250,000 Hemaraj Land Development Co.
Sub. Deb. Cv.
3.50% 09/09/2003.............. 253,100 246,250
250,000 Liberty Property Trust Sub. Deb. Cv.
8.00%, 07/01/01............... 250,000 259,375
100,000 Regal Hotels International Holdings
Sub. Deb. Cv.
5.25%, 12/13/08............... 92,354 98,750
200,000 Sino Land Company, Ltd. Sub. Deb. Cv.
5.00%, 02/26/01............... 192,012 192,000
250,000 Tanayong Company Ltd. Sub. Deb. Cv.
3.50%, 03/01/04............... 194,469 195,000
---------- ----------
1,212,777 1,209,191
---------- ----------
RETAIL -- 4.05%
100,000(c) ASDA Finance Ltd. Sub. Deb. Cv.
10.75%, 10/21/05.............. 155,854 195,096
100,000 Federated Department Stores
Sub. Deb. Cv.
5.00%, 10/01/03............... 100,000 115,500
100,000 Robinson Department Store
Sub. Deb. Cv.
3.25%, 07/27/00............... 102,222 109,000
250,000 Far Eastern Department Stores Co.
Sub. Deb. Cv.
3.00% 07/06/2001.............. 235,116 237,500
---------- ----------
593,192 657,096
---------- ----------
TELECOMMUNICATIONS -- 7.50%
250,000 Rogers Communications Inc.
Sub. Deb. Cv.
2.00%, 11/26/05............... 135,790 130,625
200,000 Scandinavian Broadcasting
System SA Sub. Deb. Cv.
7.25%, 08/01/05............... 213,687 215,250
357,000 Tele 2000 S.A. Sub. Deb. Cv.
9.75%, 04/14/97(g)............ 337,686 358,785
250,000 Telekom Malaysia Berhad
Sub. Deb. Cv.
4.00%, 10/03/04............... 242,870 263,438
250,000 Total Access Communications plc
Sub. Deb. Cv.
2.00%, 05/15/06............... 246,253 249,063
---------- ----------
1,176,286 1,217,161
---------- ----------
TRANSPORTATION -- 4.64%
150,000 British Airways plc Sub. Deb. Cv.
5.75%, 03/29/06............... 230,640 236,444
100,000 International Container Terminal
Services Sub. Deb.
Cv. 5.00%, 09/15/01........... 80,505 92,000
10,000,000(b) Nippon Yusen Kabushiki
Kaisha Sub. Deb. Cv.
2.00%, 09/29/00............... 109,714 111,466
250,000 Yang Ming Marine Transport
Sub. Deb. Cv.
2.00%, 10/06/01............... 257,500 313,125
---------- ----------
678,359 753,035
---------- ----------
TOTAL CONVERTIBLE
CORPORATE BONDS.............. 11,407,263 11,909,417
---------- ----------
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
The Gabelli Global Convertible Securities Fund
Portfolio of Investments (Continued) -- June 30, 1996 (Unaudited)
================================================================================
Principal
Amount Market
or Shares Cost Value
--------- ---- -----
CONVERTIBLE PREFERRED STOCKS -- 17.78%
BROADCASTING -- 2.06%
2,000 Granite Broadcasting
Company Pfd.................. $ 110,500 $ 133,719
20,000 Triathlon Broad-
casting Co. Pfd.............. 210,000 200,000
---------- ----------
320,500 333,719
---------- ----------
CABLE -- 0.88%
5,500 Cablevision Systems
Corporation Pfd.............. 153,275 143,000
---------- ----------
ENERGY -- 2.42%
5,000 Atlantic Richfield Company..... 123,750 121,875
5,000 Enron Corporation Pfd.......... 120,250 139,375
2,500 Valero Energy Corp............. 117,963 131,250
---------- ----------
361,963 392,500
---------- ----------
FINANCIAL SERVICES -- 0.92%
2,500 Ahmanson (H.F.) & Co.
Pfd. D....................... 102,650 148,438
---------- ----------
INDUSTRIAL EQUIPMENT & SUPPLIES -- 1.71%
800 Case Corp. Pfd. A.............. 105,400 95,128
11,000 Cooper Industries, Inc.
6% Cv. Pfd................... 180,613 184,250
---------- ----------
286,013 279,378
---------- ----------
METALS AND MINING -- 2.74%
10,000 Durban Roodeport
Deep, Ltd. Pfd............... 90,761 92,593
10,000 Kaiser Aluminum Corp. Pfd...... 159,250 106,250
5,000 Freeport-McMoRan Copper &
Gold Inc. Series A Cv. Pfd... 141,238 136,250
5,000 Freeport-McMoRan
Copper & Gold Inc. Series D.. 95,925 109,375
---------- ----------
487,174 444,468
---------- ----------
REAL ESTATE / DEVELOPMENT -- 1.46%
9,000 Security Capital Pacific Trust
Pfd. Ser. A.................. 189,439 236,250
---------- ----------
TELECOMMUNICATIONS -- 5.59%
15,000 Ericsson (L.M.) Telephone Company
4.25% Cv. Pfd................ 26,250 43,593
5,000 Globalstar Telecommunications
6.5% Cv. Pfd.(g)............. 250,000 217,500
3,000 MFS Communications, Inc.
Pfd.......................... 100,500 190,500
5,000 Nortel Inversora SA Pfd........ 210,000 230,000
5,600 Sprint Corporation
8.25% Cv. Pfd................ 186,175 225,400
---------- ----------
772,925 906,993
---------- ----------
TOTAL CONVERTIBLE
PREFERRED STOCKS ............ 2,578,014 2,775,371
---------- ----------
CORPORATE BONDS -- 1.70%
PAPER AND FOREST PRODUCTS -- 1.70%
$ 250,000 Tjiwi Kimia, PT Sub. Deb.
13.25%, 08/01/01............. 275,269 275,000
---------- ----------
TOTAL CORPORATE BONDS ......... 275,269 275,000
---------- ----------
COMMON STOCKS -- 2.55%
ADVERTISING -- 0.35%
700 Havas.......................... 51,063 57,212
---------- ----------
BROADCASTING -- 0.73%
5,000 EZ Communications, Inc......... 95,124 118,750
---------- ----------
ENTERTAINMENT -- 0.24%
1,000 Time Warner Inc................ 40,550 39,250
---------- ----------
METALS & MINING -- 0.34%
5,000 Kaiser Aluminum Corp........... 57,400 55,000
---------- ----------
SPECIALTY CHEMICALS -- 0.58%
2,500 IMC Global Inc................. 96,062 94,062
---------- ----------
TELECOMMUNICATIONS -- 0.31%
60 MFS Communications, Inc. ...... 2,010 2,261
5,000 Rogers Communications, Inc.
Cl. B........................ 51,882 46,920
---------- ----------
53,892 49,181
---------- ----------
TOTAL COMMON STOCKS............ 394,091 413,455
---------- ----------
WARRANTS -- 1.49%
AUTO RELATED -- 0.20%
50 NGK Spark Plug Co. Ltd.
01/20/98+.................... 62,500 31,875
---------- ----------
DIVERSIFIED INDUSTRIAL -- 0.53%
50 Kyocera Corp. 01/23/98+........ 69,375 57,500
50 Nishimatsu Construc-
tion Co., Ltd. 12/03/96+..... 47,500 28,750
---------- ----------
116,875 86,250
---------- ----------
METAL & MINING -- 0.76%
50 Sumitomo Metal
Mining Co., Ltd. 12/24/97+... 80,625 123,750
---------- ----------
TOTAL WARRANTS................. 260,000 241,875
---------- ----------
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
The Gabelli Global Convertible Securities Fund
Portfolio of Investments (Continued) -- June 30, 1996 (Unaudited)
================================================================================
Principal
Amount Market
or Shares Cost Value
--------- ---- -----
U.S. GOVERNMENT OBLIGATIONS -- 0.61%
$100,000 U.S. Treasury Bills, 4.90% to 5.02%
Due 08/22/96.................. $ 99,292 $ 99,292
---------- ----------
TOTAL U.S. GOVERNMENT
OBLIGATIONS.................. 99,292 99,292
---------- ----------
TOTAL INVEST-
MENTS -- 97.54%............. $15,109,854* 15,823,785
========== ----------
Cash and Other Assets,
in excess of
Liabilities -- 2.46%......... 398,257
----------
NET ASSETS -- 100.00%
(1,403,953 shares outstanding) $16,222,042
==========
Net Asset Value and Redemption
Price Per Share.............. $11.55
======
Number of Market
Contracts Cost Value
- --------- ---- -----
PUT OPTIONS
50 S & P 500 July 1996 $665.00.... $ 47,650 $ 25,625
========== ==========
PUT OPTIONS WRITTEN
50 S & P 500 July 1996 $655.00.... $ 31,099 $ 13,750
========== ==========
- --------------------------------------------------------------------------------
(a) -- Principal amount denoted in French Francs.
(b) -- Principal amount denoted in Japanese Yen.
(c) -- Principal amount denoted in British Pounds.
(d) -- Principal amount denoted in Netherlands Guilders.
(e) -- Principal amount denoted in Danish Krone.
(f) -- Principal amount denoted in Finnish Markka.
(g) -- Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified
institutional buyers. At June 30, 1996, Rule 144A securities
amounted to $1,839,910 or 11.34% of net assets.
+ -- Non income producing security.
*For Federal Income Tax purposes:
Aggregate cost........................... $15,109,854
===========
Gross unrealized appreciation............ $ 1,079,547
Gross unrealized depreciation............ (365,616)
-----------
Net unrealized appreciation.............. $ 713,931
===========
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
The Gabelli Global Convertible Securities Fund
Statement of Assets and Liabilities (Unaudited)
June 30, 1996
================================================================================
Assets:
Investments in securities, at value
(Cost $15,109,854) .................................... $ 15,823,785
Options purchased, at value (Cost $47,650) .............. 25,625
Cash .................................................... 177,150
Receivable for Fund shares sold ......................... 140,052
Receivable for investments sold ......................... 1,162,098
Dividends and interest receivable ....................... 183,760
Deferred organizational expenses ........................ 48,356
------------
Total Assets .......................................... 17,560,826
------------
Liabilities:
Options written, at value
(Premiums received: $31,099) ............................ 13,750
Payable to advisor ...................................... 13,330
Payable to custodian .................................... 170,073
Payable for distribution fees ........................... 3,228
Payable for investments purchased ....................... 953,462
Payable for Fund shares redeemed ........................ 119,258
Dividends payable ....................................... 445
Other accrued expenses .................................. 65,238
------------
Total liabilities ..................................... 1,338,784
------------
Net Assets (applicable to 1,403,953
shares outstanding) ................................. $ 16,222,042
============
Net asset value and redemption
price per share ..................................... $ 11.55
============
Net Assets Consist of:
Capital Stock, at par value ............................. $ 1,404
Additional paid-in capital .............................. 14,405,764
Accumulated undistributed net investment
income ................................................ 159,169
Distributions in excess of net
investment income ..................................... (64,539)
Accumulated net realized gain on
investments ........................................... 1,041,446
Net unrealized appreciation on investments
and assets and liabilities denominated
in foreign currencies ................................. 678,798
------------
Net Assets ............................................ $ 16,222,042
============
Statement of Operations (Unaudited)
For the Six Months Ended June 30, 1996
================================================================================
Income:
Interest (Net of foreign taxes of $1,002) ............... $ 283,838
Dividends ............................................... 67,171
------------
Total Income .......................................... 351,009
------------
Expenses:
Investment advisory fees ................................ 81,351
Shareholder services .................................... 40,553
Distribution fees ....................................... 20,334
Legal and audit ......................................... 14,920
Printing and mailing .................................... 11,669
Amortization of organization expenses ................... 6,444
Registration ............................................ 4,892
Custodian ............................................... 4,849
Directors' fees and expenses ............................ 2,853
Miscellaneous ........................................... 3,975
------------
Total Expenses ........................................ 191,840
------------
Net investment income ................................... 159,169
------------
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign
Currency Transactions:
Net realized gain on investments ........................ 1,100,285
Net change in unrealized appreciation ................... (155,083)
------------
Net gain on investments ............................... 945,202
------------
Net increase in net assets resulting from
operations .............................................. $ 1,104,371
============
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
=============================================================================================
Six Months Ended Year
June 30, 1996 Ended
Increase (decrease) in Net Assets: (Unaudited) December 31,1995
---------------- ----------------
<S> <C> <C>
Net Investment Income ................................ $ 159,169 $ 493,628
Net realized gain/(loss) on investments .............. 1,100,285 (28,739)
Net change in unrealized appreciation ................ (155,083) 1,630,775
------------ ------------
Net increase in net assets resulting from operations 1,104,371 2,095,664
------------ ------------
Distributions from net investment income ............. -- (493,628)
Distributions in excess of net investment income ..... -- (62,592)
------------ ------------
-- (556,220)
------------ ------------
Share transactions -- net ............................ (624,421) (1,370,857)
------------ ------------
Net increase in net assets ......................... 479,950 168,587
Net Assets:
Beginning of period ................................ 15,742,092 15,573,505
------------ ------------
End of period ...................................... $ 16,222,042 $ 15,742,092
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
The Gabelli Global Convertible Securities Fund
Notes to Financial Statements (Unaudited)
================================================================================
1. Significant Accounting Policies. The objective of The Gabelli Global
Convertible Securities Fund (the "Fund") is to obtain a high rate of total
return. The Fund is a series of Gabelli Global Series Funds, Inc. (the
"Corporation"), incorporated in Maryland on July 16, 1993. The Fund is a
no-load, open-end, non-diversified management investment company and one of five
separately managed portfolios of the Corporation. The Fund commenced investment
operations on February 3, 1994. 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.
Security Valuation. Portfolio securities listed or traded on the New York or
American Stock Exchanges, 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 (if there were no sales that day,
the security is valued at the average of the bid and asked prices). All other
portfolio securities for which over-the-counter market quotations are readily
available are valued at the latest average of their bid and asked prices. When
market quotations are not readily available, portfolio securities are valued at
their fair value as determined in good faith under procedures established by and
under the general supervision of the Corporation's Directors. Short-term debt
securities with remaining maturities of 60 days or less are valued at amortized
cost, unless the Directors 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 Directors. Options are valued at the last sale price on the
exchange on which they are listed, unless no sales of such options have taken
place that day, in which case they will be valued at the mean between their
closing bid and asked prices.
Foreign Currency Transactions. The books and records of the Fund are maintained
in U.S. dollars as follows:
(i) market value of investment securities and other assets and liabilities are
recorded at the exchange rate on the valuation date.
(ii) purchases and sales of investment securities, income and expenses are
recorded at the exchange rate prevailing on the respective date of such
transactions.
Forward Foreign Currency Contracts. The Fund may hold currencies to meet
settlement requirements for foreign securities and may engage in currency
exchange transactions to hedge against changes in exchange rates. Forward
foreign currency contracts are valued at the forward rate and are
marked-to-market daily. The change in market value is recorded by the Fund as an
unrealized gain or loss. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed. The use of
forward foreign currency contracts does not eliminate fluctuations in the
underlying prices of the Fund's portfolio securities, but it does establish a
rate of exchange that can be achieved in the future. Although forward foreign
currency contracts limit the risk of loss due to a decline in the value of the
hedged currency, they also limit any potential gain that might result should the
value of the currency increase. In addition, the Fund could be exposed to risks
if the counterparties to the contracts are unable to meet the terms of their
contracts.
At June 30, 1996, the Fund had sold short the following forward foreign currency
contracts:
11
<PAGE>
The Gabelli Global Convertible Securities Fund
Notes to Financial Statements (Unaudited)(Continued)
================================================================================
Amount/Currency Settlement Dates Value Unrealized Loss
------------------------ --------------------- ---------- ---------------
495,933 British Pound 11/29/96 $ 769,540 $ (19,540)
3,887,375 French Franc 11/29/96 and 12/11/96 760,982 (10,982)
---------- ---------
$1,530,522 $ (30,522)
========== =========
Security Transactions and Investment Income. Security transactions are accounted
for on the dates the securities are purchased or sold (the trade dates), with
realized gain or loss on investments determined by using specific identification
as the cost method. Interest income (including amortization of premium and
discount) is recorded as earned. Dividend income and dividend and capital gain
distributions to shareholders are recorded on the ex-dividend date.
Federal Income Taxes. The Fund intends to continue to qualify as a "regulated
investment company" under Subchapter M of the Internal Revenue Code of 1986 and
distribute all of its taxable income to its shareholders. Therefore, no Federal
income tax provision is required.
Dividends and interest from non-U.S. sources received by the Fund are generally
subject to non-U.S. withholding taxes at rates ranging up to 30%. Such
withholding taxes may be reduced or eliminated under the terms of applicable
U.S. income tax treaties, and the Fund intends to undertake any procedural steps
required to claim the benefits of such treaties. If more than 50% in value of
the Fund's total assets at the close of any taxable year consists of stocks or
securities of non-U.S. corporations, the Fund is permitted and may elect to
treat any non-U.S. taxes paid by it as paid by its shareholders.
2. Capital Stock Transactions. The Articles of Incorporation, dated July 16,
1993, permit the Fund to issue 200,000,000 shares (par value $0.001).
Transactions in shares of common stock were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1996 December 31, 1995
------------------------- -------------------------
Shares Amount Shares Amount
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Shares sold ................................ 164,337 $ 1,858,916 464,817 $ 4,735,331
Shares issued upon reinvestment of dividends -- -- 48,399 522,244
Shares redeemed ............................ (219,079) (2,483,337) (623,259) (6,628,432)
----------- ----------- ----------- -----------
Net increase ............................... (54,742) $ (624,421) (110,043) $(1,370,857)
=========== =========== =========== ===========
</TABLE>
3. Purchases and Sales of Securities. Purchases and sales of securities for the
six months ended June 30, 1996, other than U.S. government obligations and
short-term securities, aggregated $12,430,122 and $12,390,813, respectively.
Futures Contracts. The Fund may engage in futures contracts for the purpose of
hedging against changes in the value of its portfolio securities and in the
value of securities it intends to purchase. Such investments will only be made
if they are, in the opinion of management, economically appropriate to the
reduction of risks involved in the management of the Fund. Upon entering into a
futures contract, the Fund is required to deposit with the broker an amount of
cash or cash equivalents equal to a certain percentage of the contract amount.
This is known as the "initial margin". Subsequent payments ("variation margin")
are made or received by the Fund each day, depending on the daily fluctuation of
the value of the contract. The daily changes in the contract's value are
recorded as unrealized gains or losses. The Fund recognizes a realized gain or
loss when the contract is closed. The net unrealized appreciation/depreciation
is shown in the financial statements. During the six months ended June 30, 1996,
the Fund did not engage in any futures contracts.
12
<PAGE>
The Gabelli Global Convertible Securities Fund
Notes to Financial Statements (Unaudited)(Continued)
================================================================================
Options. The Fund may purchase or write call or put options on securities or
indices. During the first six months of 1996, the Fund utilized put options to
hedge the value of the Fund's portfolio. As a writer of put options, the Fund
receives a premium at the outset and then bears the market risk of unfavorable
changes in the price of the financial instrument underlying the option. The Fund
would incur a loss if the price of the underlying financial instrument decreases
between the date the option is written and the date on which the option is
terminated. The Fund would realize a gain, to the extent of the premiums, if the
price of the financial instrument increases between those dates.
As a purchaser of put options, the Fund pays a premium for the right to sell to
the seller of the put option the underlying security at a specified price. The
seller of the put has the obligation to purchase the underlying security upon
exercise at the exercise price.
Transactions in written put options and purchased put options for the six months
ended June 30, 1996:
<TABLE>
<CAPTION>
Written Put Options Purchased Put Options
--------------------------- ---------------------------
Number of Number of
Contracts Premium Contracts Premium
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Options outstanding at January 1, 1996 50 $ 20,099 50 $ 39,525
Options written ...................... 670 363,790 690 612,013
Options closed ....................... (245) (152,322) (440) (409,700)
Options expired ...................... (425) (200,468) (250) (194,188)
------------ ------------ ------------ ------------
Options outstanding at June 30, 1996 . 50 $ 31,099 50 $ 47,650
------------ ------------ ------------ ------------
</TABLE>
Repurchase Agreements. The Fund may enter into repurchase agreements with
government securities dealers recognized by the Federal Reserve Board, with
member banks of the Federal Reserve System or with other brokers or dealers that
meet the credit guidelines established by the Directors. The Fund will always
receive and maintain securities as collateral whose market value, including
accrued interest, will be at least equal to 100% of the dollar amount invested
by the Fund in each agreement, and the Fund will make payment for such
securities only upon physical delivery or upon evidence of book entry transfer,
of the collateral to the account of the custodian. To the extent that any
repurchase transaction exceeds one business day, the value of the collateral is
marked-to-market on a daily basis to maintain the adequacy of the collateral. If
the seller defaults and the value of the collateral declines, or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited.
4. Investment Advisory Contract. The Fund employs Gabelli Funds, Inc., (the
"Advisor") to provide a continuous investment program for the Fund's portfolio,
provide all facilities and personnel, including officers, required for its
administrative management, and to pay the compensation of all officers and
Directors of the Fund who are its affiliates. As compensation for the services
rendered and related expenses borne by the Advisor, the Fund pays the Advisor a
fee, computed and accrued daily and payable monthly, equal to 1.00% per annum of
the Fund's average daily net assets. The Advisor is obligated to reimburse the
Fund in the event the Fund's expenses exceed the most restrictive expense ratio
limitation imposed by any state, currently believed to be 2.5% of the first $30
million of the Fund's average daily net assets (excluding taxes, interest,
distribution expenses and extraordinary items). No such reimbursement was
required during the six months ended June 30, 1996.
13
<PAGE>
The Gabelli Global Convertible Securities Fund
Notes to Financial Statements (Unaudited)(Continued)
================================================================================
5. Organization Expenses. The organization expenses of the Fund are being
amortized on a straight-line basis over a period of 60 months. The Advisor has
agreed that in the event that any of the initial 10,000 shares it owns are
redeemed during the period of amortization of the Fund's organization and
start-up expenses, the redemption proceeds will be reduced by any such
unamortized organization expenses in the same proportion as the number of
initial shares redeemed to the number of initial shares outstanding at the time
of redemption.
6. Distribution Plan. The Fund's Board of Directors has adopted a distribution
plan (the "Plan") under Section 12(b) of the Investment Company Act of 1940 and
Rule 12b-1 thereunder. For the six months ended June 30, 1996, the Fund has
incurred distribution costs of $20,334, or 0.25% of average net assets, the
annual limitation under the Plan. The Board of Directors has approved that
Distribution costs incurred by Gabelli & Co., Inc. of $273,616, which are in
excess of the 0.25% limitation, may be recovered from the Fund in future
periods, subject to such limitation.
7. Transactions with Affiliates. The Fund paid brokerage commissions to Gabelli
& Company, Inc., an affiliate of the Advisor, during the six months ended June
30, 1996 of $50.
Financial Highlights (Unaudited)
================================================================================
Selected data for a share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
February 3, 1994
Six Months (Commencement of
Ended Year Ended Operations) Through
June 30, 1996 December 31, 1995 December 31, 1994
-------------- ----------------- -------------------
<S> <C> <C> <C>
Operating Performance:
Net asset value, beginning of period ... $ 10.79 $ 9.93 $ 10.00
------------ ------------ ------------
Net investment income .................. 0.11 0.39 0.16
Net realized and unrealized gain/(loss)
on investments ....................... 0.65 .86 (0.07)
------------ ------------ ------------
Total from investment operations ....... 0.76 1.25 0.09
Less Distributions:
Dividends from net investment income ... -- (0.39) (0.16)
------------ ------------ ------------
Net asset value, end of period ................. $ 11.55 $ 10.79 $ 9.93
============ ============ ============
Total Return ........................... 7.04% 12.62% 0.90%
Ratios to average net assets/supplemental data:
Net assets, end of period (in thousands) $ 16,222 $ 15,742 $ 15,574
Ratio of operating expenses to
average net assets ................... 2.36%(a) 2.41% 2.49%(a)
Ratio of net investment income to
average net assets ................... 1.95%(a) 2.90% 2.80%(a)
Portfolio turnover ..................... 25.36% 152.27% 329%
Average commission rate ................ $ 0.0397 -- --
</TABLE>
- ---------------
(a) Annualized.
14
<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. (No-load)
Portfolio Manager: Mario J. Gabelli, CFA
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. (No-load)
Portfolio Manager: Mario J. Gabelli, CFA
Gabelli/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 Manager: Susan Byrne
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>
Gabelli Global Series Funds, Inc.
The Gabelli Global Convertible Securities 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.)
Board of Directors
Mario J. Gabelli, CFA John D. Gabelli
Chairman and Chief Vice President
Investment Officer Gabelli & Company,Inc.
Gabelli Funds, Inc.
Karl Otto Pohl
Felix J. Christiana Former President
Former Senior Deutsche Bundesbank
Vice President
Dollar Dry Dock Savings Bank Werner J. Roeder, MD
Director of Surgery
Anthony J. Colavita Lawrence Hospital
Attorney-at-Law
Anthony J. Colavita, P.C. Anthonie C. van Ekris
Managing Director
BALMAC International, Inc.
Officers
Mario J. Gabelli, CFA A. Hartswell Woodson, III
President Vice President and
Portfolio Manager
Bruce N. Alpert
Vice President James E. McKee
and Treasurer Secretary
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 Global Convertible Securities Fund. It is not authorized for
distribution to prospective investors unless preceded or accompanied by an
effective prospectus.
- --------------------------------------------------------------------------------
