Gabelli Global Series Funds, Inc.
The Gabelli Global
Convertible Securities Fund
First Quarter Report - March 31, 1997
[Photo of Hart Woodson]
Investment Results(a)
- --------------------------------------------------------------------------------
Quarter
----------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
1997: Net Asset Value $10.27 -- -- -- --
Total Return ....... 0.9% -- -- -- --
- --------------------------------------------------------------------------------
1996: Net Asset Value $11.34 $11.55 $11.41 $10.18 $10.18
Total Return ....... 5.1% 1.9% (1.2)% (0.3)% 5.5%
- --------------------------------------------------------------------------------
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 - March 31, 1997(a)
------------------------------------------
1 Year ............................... 5.5%
Life of Fund(b) ...................... 6.4%
- --------------------------------------------
Dividend History
- --------------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
- ----------------- -------------- ------------------
December 31, 1996 $1.200 $10.18
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.
- --------------------------------------------------------------------------------
To Our Shareholders:
For the first quarter ended March 31, 1997, The Gabelli Global Convertible
Securities Fund's total return was 0.9%. This compares to a 1.0% decline in the
Merrill Lynch Global 300 Convertible Index over the same period. Since
convertibles are a hybrid security combining the current income characteristics
of bonds with the capital gains potential of stocks, it is useful to compare
your Fund's performance to these broader asset classes. During the first
quarter, global bond markets, as measured by the Merrill Lynch Global Bond
Index, fell 3.0% while global equity markets, as measured by the Morgan Stanley
Capital International World Free Index, rose by 0.4%. After a good start to the
year,
<PAGE>
financial assets suffered when the U.S. Federal Reserve Board raised short-term
interest rates in a "preemptive" strike against inflation. A strong dollar also
hampered returns for U.S.-based investors. Your Fund outperformed due to its
strong performance in Latin America, relative underweighting in Japan, and
reduced currency exposure.
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.
The total capitalization of the global convertible market is about $380
billion. About 51% ($193 billion) has been issued by Japanese companies, 27%
($103 billion) by U.S. issuers, 16% ($60 billion) by European, 5% ($19 billion)
by Asian, and 1% ($3.8 billion) by Latin American issuers. The size of the
market compares favorably to other low volatility, higher yielding asset
classes, such as real estate investment trusts (REITs) which enjoy only a $63
billion market capitalization.
Commentary: First Quarter 1997
He did it. Alan Greenspan took away the punch bowl. After much
forewarning, the Federal Reserve (Fed) Chairman, fearing strong job growth and
rising wage rates, increased short-term interest rates in a preemptive strike
against inflation. And so financial markets fell. Greenspan should be pleased.
Before the U.S. stock market reached truly bubble like proportions, irrational
exuberance was wrung from share prices. We see this as a healthy (and long
overdue) correction rather than the start of
2
<PAGE>
a secular bear market. As discussed in our previous report, we believe 1997 will
be a year of consolidation in the U.S. market following two years of abnormal
gains. We expect markets to remain volatile as investors grapple with
forthcoming earnings and economic data. Consequently, we believe that our value
approach to stock pricing combined with a convertible securities overlay
provides an attractive investment approach.
Economic activity outside the U.S. remains sluggish. Recovery in Japan is
still fragile against a backdrop of fiscal tightening (i.e. increased sales
taxes). The weak yen and low interest rates have benefited exporters (i.e. Sony,
Kawasaki Heavy). As domestic demand picks up, we expect this trend to reverse,
favoring companies with a local focus. According to the Financial Times (FTA),
Japanese stocks fell 12% in U.S. dollar terms during this quarter.
Asian stocks, ex-Japan, were also weak, falling 4.4% on interest rate
jitters. The exception was Taiwan, whose market rose 8.4% on better corporate
earnings and expectations of a rebound in export growth (i.e. Yang Ming). We
expect good GDP growth in China (10% in 1997) with lower interest rates to favor
investments such as Quingling Motors Ltd. and New World Infrastructure Ltd.
In the U.K., the fear of increased interest rates after a presumed Labor
victory in the May general elections kept a damper on the market, which was up
only 0.9%. Mainland Europe fared better, up 6.7%, as cost savings, low interest
rates and a weak dollar combined to improve share prices.
Latin America was the best performing region of the quarter with a gain of
18.7%. The Argentine economy is expected to show impressive growth of 5.2% in
1997 with low inflation due to the currency peg with the U.S. dollar. Compelling
company valuations should provide a cushion to our investments in Nortel
Inversora SA and IRSA, even if U.S. interest rates rise further.
Over the remainder of 1997, we expect international markets to outperform
the U.S.-based on superior company fundamentals and a more favorable point in
the interest rate cycle.
THE PORTFOLIO
Global Allocation
The chart at the right represents the Fund's holdings by geographic region
on March 31, 1997. 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 WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL]
HOLDINGS BY GEOGRAPHIC REGION - 3/31/97
Asia/Pacific Rim 29.5%
Europe 18.7%
Japan 12.8%
Latin America 4.3%
Other 2.5%
United States 32.2%
3
<PAGE>
Let's Talk Converts
Quingling Motors Ltd. (Sub. Deb. Cv. 3.50% 1/1/2002) is one of China's leading
manufacturers of light-duty trucks, with a 24% market share. The company
produces a variety of these trucks, including pick-up trucks and minibuses,
which it sells under the Isuzu brand name. Isuzu owns 7.3% of Quingling, which
has a market capitalization of over $1 billion. Earnings rose 139% in 1996
because of a 15% increase in unit sales, an estimated 2.5% rise in average
selling prices and a 10% yen devaluation against the renminbi. Over 50% of the
company's component parts are sourced from Isuzu of Japan. Growth is expected to
continue with the roll out of the new T- series pick-up trucks. The balance
sheet is strong with a ratio of net debt to equity of only 8%.
At $98.875, Quingling's 3.50% mandatory convertible of January 2002 has an
11% premium and a current yield of 3.50% versus a dividend yield of 1.1% on the
stock. In the event that the stock price does not rise above its original
conversion price of HK $4.5 after five years, the conversion price can be
adjusted downward by up to 30%. This so-called downside reset feature offers
additional protection to the convertible holder.
Kawasaki Heavy Industries Ltd. (Sub. Deb. Cv. 0.80% 9/28/01) is a manufacturer
and developer of transport equipment and industrial heavy machinery for military
and commercial purposes in Japan. The company's products range from aerospace
and shipbuilding products to railroad cars and motorcycles. In the fiscal year
1996, operating profits rose 35% on a 5% increase in sales. Sales at the
aerospace division, which account for 19% of total sales, rose by 10% as mass
production began for the Boeing 777. The weaker yen also helped increase
profitability as nearly 30% of group sales are derived from overseas markets. In
the future, we expect continued good earnings growth as the company's new
chairman, Hiroshi Oba focuses on improving margins and reducing costs. A 10%
reduction in the workforce is planned over the next five years.
At $110.50, Kawasaki's 0.8% yen denominated convertible bond due September
2001, trades at a low 7% premium and will enjoy much of the equity's upside
potential. On the downside, the convertible's bond floor or investment value is
estimated at $95.50 or 50 basis points over the equivalent Japanese government
bond yield. This represents about a 15% downside risk for the convertible bond
which is rated Baa1 by Moody's Investors Service, Inc., assuming interest rates
and credit spreads remain constant.
Tanayong Public Company Ltd. (TYONG - $0.66 - Thailand) is a developer of real
estate and infrastructure projects in Thailand. It's main project is the Bangkok
Transit System Company (BTSC), in which it owns a 74% stake. By recently
reducing its stake from 100%, Tanayong raised sufficient cash to meet its future
capital expenditure needs and strengthen its balance sheet. We expect the BTSC
project to be spun off in an initial public offering later this year. At the
proposed price of Baht 25 per share, Tanayong's stake would be worth $500
million or about four times its current stock market capitalization.
4
<PAGE>
United News and Media (Sub. Deb. Cv. 6.125% 12/03/03) (UNWS), the U.K. based
information and publication group, was formed in early 1996 as the merger
between United News and MAI. Over the last year, a number of disposals and
acquisitions were made. The restructured company, under Lord Hollick's
leadership, consists of four divisions engaged in Consumer Publishing (The
Express), Broadcasting and Entertainment (Channel 5), Financial Services
(Garvin), and Business Services (Blenheim). During the fiscal year ended March
31, 1997, operating profits grew by over 35% in the Broadcasting and Business
Services divisions. Results in the Consumer Publishing area suffered due to
higher newsprint prices which peaked last year. Financial Services were down in
lower trading volume. The balance sheet is strong with interest coverage at over
8 times estimated 1998 free cash flow.
At 104%, UNWS's 6.125% sterling bond due 2003 has a modest 12.6% premium
and 5.89% current yield versus a 4% yield on the stock. The convertible cannot
be called until December 2001. With a bond floor of approximately 86% (20%
downside), the convertible offers an attractive risk adjusted investment
alternative to the common.
Nortel Inversora SA (NRT - $45.00 - NYSE) was organized by a union of Argentine
and international investors to acquire a controlling interest in the common
stock of Telecom Argentina STET- France S.A. (`Telecom'). Telecom Argentina
provides local, long distance and internet telecommunication services. The
company has a monopoly on these services in Northern Argentina until the year
2000. In the first quarter of 1997, the government finally implemented a tariff
re-balancing plan lifting a key uncertainty from the stock. On a valuation
basis, the stock is cheap, trading at an enterprise value to 1997 EBITDA
multiple of 5.4 times or a 6.2% discount to other Latin American Telcos. We
believe that the resolution of the tariff re-balancing question could lead to
multiple expansion and have set a one year price target of $55.
At a price of $45, Nortel's 10% Mandatory Exchangeable Debt Securities of
December 2000, have a 10% premium and current yield of over 9% versus a dividend
yield of 4.7% on the common stock.
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 of the
Fund are being offered at no load. 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].
5
<PAGE>
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
May 1, 1997
- --------------------------------------------------------------------------------
Top Ten Holdings
March 31, 1997
--------------
Finaxa Far Eastern Department Stores Co.
Metro Pacific Capital Ltd. British Airport Authority
IRSA Speedway Motorsports
Michelin France Alfa S.A.
Mahindra & Mahindra International CableTel Incorporated
- --------------------------------------------------------------------------------
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 Global Convertible Securities Fund
Portfolio of Investments -- March 31, 1997 (Unaudited)
================================================================================
Principal Market
Amount Value
------ -----
CONVERTIBLE SECURITIES -- 91.19%
CONVERTIBLE CORPORATE BONDS -- 73.48%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 2.31%
$ 250,000 Mahindra & Mahindra
Sub. Deb. Cv. 5.00%, 07/09/01.................... $ 262,750
----------
BUILDING AND CONSTRUCTION -- 2.82%
250,000 Bacnotan Consolidated Sub. Deb. Cv
5.50%, 06/21/04.................................. 205,000
100,000 New World Infrastructure Ltd. Sub. Deb. Cv.
5.00%, 07/15/01(e)............................... 115,850
----------
320,850
----------
CABLE -- 2.19%
250,000 International CableTel Incorporated Sub. Deb. Cv.
7.25%, 04/15/05 (e).............................. 248,750
----------
CONSUMER PRODUCTS -- 6.62%
150,000 Central Garden and Pet Company
6.00 11/15/03(e)................................. 142,500
20,000,000(b) Matsushita Electric Industrial Co., Ltd.
Sub. Deb. Cv. 1.30%, 03/29/02.................... 195,666
20,000,000(b) Matsushita Electric Work, Ltd.
Sub. Deb. Cv. 2.70%, 05/31/02.................... 201,326
20,000,000(b) Sony Corporation Sub. Deb. Cv.
0.15%, 03/30/01.................................. 213,615
----------
753,107
----------
DIVERSIFIED INDUSTRIAL -- 10.37%
150,000 First International Computer
1.00%, 3/12/04................................... 155,952
100,000 Grand Metropolitan Ind. Plc
6.5%, 1/31/00.................................... 118,750
20,000,000(b) Kawasaki Heavy Industries Ltd. Sub.
Deb. Cv. 0.80%, 09/28/01......................... 178,526
10,000,000(b) Kokusai Electric Co. Ltd. Sub. Deb. Cv.
1.30%, 09/30/02.................................. 83,603
1,134,000(a) La Rochette Deb. Cv.
5.00%, 01/01/02.................................. 207,913
100,000 President Enterprises Sub. Deb. Cv.
Zero Coupon, 07/22/01............................ 164,750
100,000 PT Eka Gunatama Mandiri Sub. Deb. Cv
4.00%, 10/04/97.................................. 118,750
150,000 U.S. Filter Corp.
4.50%, 01/22/02.................................. 151,125
----------
1,179,369
----------
ENERGY -- 1.51%
100,000 Pennzoil Company Sub. Deb. Cv.
6.50%, 01/15/03.................................. 172,250
----------
ENTERTAINMENT -- 2.26%
250,000 Speedway Motorsports
5.75%, 09/30/03.................................. 256,875
----------
FINANCIAL SERVICES -- 9.80%
1,328,900(a) Finaxa Sub. Deb. Cv.
3.00%, 01/01/01.................................. 297,746
200,000 MBI Finance Ltd. zero coupon,
12/18/01(e)...................................... 144,000
250,000 Medya Holding Sub. Deb. Cv.
10.00%, 06/28/01................................. 205,000
250,000 Metro Pacific Capital Ltd. Sub. Deb. Cv.
2.50%, 04/11/03.................................. 292,500
20,000,000(b) Mitsui & Co. Ltd. Sub. Deb. Cv.
1.50%, 03/31/03.................................. 175,453
----------
1,114,699
----------
INDUSTRIAL EQUIPMENT AND SUPPLIES -- 6.28%
200,000 Alfa S.A. de C.V. Sub. Deb. Cv.
8.00%, 09/15/00(e)............................... 253,000
250,000 Qingling Motors Ltd.
3.50%, 01/22/02.................................. 247,188
200,000 Thermo Electron Corporation Sub. Deb. Cv
4.25%, 01/01/03.................................. 214,000
----------
714,188
----------
METALS AND MINING -- 5.65%
300,000(d) Hoogovens Groep BV Sub. Deb. Cv.
4.50%, 04/11/01.................................. 189,691
200,000 Randgold Finance
7.00%, 10/03/01(e)............................... 207,000
250,000 Stillwater Mining Ltd. Sub. Deb. Cv.
7.00%, 05/01/03.................................. 246,250
----------
642,941
----------
REAL ESTATE / DEVELOPMENT -- 8.02%
150,000 Hemaraj Land Development Co. Sub.
Deb. Cv. 3.50% 09/09/03.......................... 156,937
250,000 IRSA 4.50%,
08/02/03(e)...................................... 269,687
150,000 Liberty Property Trust Sub. Deb. Cv.
8.00%, 07/01/01.................................. 184,313
100,000 Paliburg International
3.50%, 02/06/01(e)............................... 100,000
200,000 Sino Land Company
5.00%, 02/26/01.................................. 201,000
----------
911,937
----------
7
<PAGE>
The Gabelli Global Convertible Securities Fund
Portfolio of Investments (Continued) -- March 31, 1997 (Unaudited)
================================================================================
Principal
Amount Market
of Shares Value
--------- -----
CONVERTIBLE CORPORATE BONDS (continued)
RETAIL -- 3.33%
$ 250,000 Far Eastern Department Stores Co. Sub
Deb. Cv. 3%, 07/06/01............................ $ 261,250
100,000 Federated Department Stores Sub. Deb. Cv.
5.00%, 10/01/03.................................. 117,250
----------
378,500
----------
TELECOMMUNICATIONS -- 6.85%
200,000 Scandinavian Broadcasting System SA
Sub. Deb. Cv. 7.25%, 08/01/05.................... 182,500
250,000 Tele-Communications International, Inc.
4.50%, 02/15/06.................................. 186,250
250,000 Telekom Malaysia Berhad Sub. Deb. Cv.
4.00%, 10/03/04.................................. 237,812
100,000(c) United News & Media plc
6.125%, 12/03/03................................. 173,840
----------
780,402
----------
TRANSPORTATION -- 5.47%
150,000(c) British Airport Authority plc Sub. Deb. Cv.
5.75%, 03/29/06.................................. 257,071
107,000 International Container Terminal Services
Sub. Deb. Cv. 5.00%, 09/15/01(e)................. 107,000
10,000,000(b) Nippon Yusen Kabushiki Kaisha
Sub. Deb. Cv. 2.00%, 09/29/00.................... 84,815
150,000 Yang Ming Marine Transport Sub. Deb. Cv.
2.00%, 10/06/01.................................. 174,000
----------
622,886
----------
TOTAL CONVERTIBLE CORPORATE BONDS 8,359,504
----------
CONVERTIBLE PREFERRED STOCKS -- 17.71%
BROADCASTING -- 2.38%
2,000 Granite Broadcasting Company Pfd................... 98,000
20,000 Triathlon Broadcasting Co. Pfd..................... 172,500
----------
270,500
----------
CABLE -- 1.00%
5,500 Cablevision Systems Corporation Pfd................ 113,438
----------
FINANCIAL SERVICES -- 1.47%
3,000 Banco Comercial Portugues, SA...................... 167,250
----------
INDUSTRIAL EQUIPMENT & SUPPLIES -- 3.61%
5,000 Atlantic Richfield (Arco) 9.00% Cv. Pfd............ 110,000
800 Case Corp. Pfd. A.................................. 100,122
11,000 Cooper Industries, Inc. 6.00% Cv. Pfd.............. 200,750
----------
410,872
----------
Market
Shares Value
------ -----
METALS AND MINING -- 1.94%
10,000 Durban Roodepoort Deep, Ltd. Pfd................... $ 79,185
5,000 Freeport-McMoRan Copper & Gold Inc.
7% Cv. Pfd....................................... 141,250
----------
220,435
----------
PRINTING & PUBLISHING -- 0.91%
2,000 Golden Books Family Entertainment, Inc............. 104,000
----------
REAL ESTATE / DEVELOPMENT -- 1.71%
6,000 Security Capital Pacific Trust Pfd. Ser A.......... 195,000
----------
TELECOMMUNICATIONS -- 4.69%
3,000 Globalstar Telecommunications
6.5% Cv. Pfd.(e)................................. 151,500
5,000 Nortel Inversora SA Pfd............................ 225,000
2,000 Worldcom Inc....................................... 157,000
----------
533,500
----------
TOTAL CONVERTIBLE PREFERRED STOCKS................. 2,014,995
----------
COMMON STOCKS -- 5.27%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 2.35%
4,545 Michelin -B New.................................... 267,732
----------
REAL ESTATE DEVELOPMENT -- 1.41%
19,700 Hemaraj Land Development Co........................ 70,519
135,000 Tanayong Co. Ltd................................... 89,636
----------
160,155
----------
SPECIALTY CHEMICALS -- 0.79%
2,500 IMC Global Inc..................................... 90,313
----------
TELECOMMUNICATIONS -- 0.72%
13,000 Total Access Communications, plc................... 81,250
----------
TOTAL COMMON STOCKS................................ 599,450
----------
WARRANTS -- 0.68%
DIVERSIFIED INDUSTRIAL -- 0.53%
500 Cosmo Oil Warrants *.............................. 12,750
100 Fujikura Warrants *................................ 20,000
100 Mori Seiki Warrants *.............................. 27,500
----------
60,250
----------
ENTERTAINMENT -- 0.15%
50 Shochiku Warrant *................................ 17,500
----------
TOTAL WARRANTS..................................... 77,750
----------
TOTAL INVESTMENTS -- 97.14%........................ 11,051,699
----------
8
<PAGE>
The Gabelli Global Convertible Securities Fund
Portfolio of Investments (Continued) -- March 31, 1997 (Unaudited)
================================================================================
Market
Value
-----
Cash and Other Assets,
Less Liabilities -- 2.86% ...................... $ 325,501
-----------
NET ASSETS -- 100.00%
(1,107,638 shares outstanding) ................. $11,377,200
===========
Net Asset Value and Redemption Price
Per Share ...................................... $10.27
===========
Number of
Contracts
---------
PUT OPTIONS
2,000 S & P 500 April 1997 $665.00 ..................... $ 46,000
-----------
TOTAL PUT OPTIONS ................................ $ 46,000
===========
PUT OPTIONS WRITTEN
4,000 S & P 500 April 1997 $655.00 ..................... $ 114,000
-----------
TOTAL PUT OPTIONS WRITTEN ........................ $ 114,000
===========
FORWARD FOREIGN
CURRENCY EXCHANGE
2,576,500(a) Sold French Francs .............................. ($458,713)
at Foreign Exchange Rate 5.6186 .................
due 05/30/97 ....................................
1,314,250(a) Sold French Francs at Foreign
Exchange Rate 5.6122 due 06/11/97 ............... (234,177)
300,000(c) Sold British Pound at Foreign
Exchange Rate 1.6316 due 05/30/97 ............... (490,830)
-----------
TOTAL FORWARD FOREIGN
CURRENCY EXCHANGE ............................... ($1,183,720)
===========
- ----------
(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 Dutch Guilders.
(e) - 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.
* - Non-Income producing security.
9
<PAGE>
This page intentionally left blank.
<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 Karl Otto Pohl
Chairman and Chief Former President
Investment Officer Deutsche Bundesbank
Gabelli Funds, Inc.
Werner J. Roeder, MD
Felix J. Christiana Director of Surgery
Former Senior Lawrence Hospital
Vice President
Dollar Dry Dock Savings Bank Anthonie C. van Ekris
Managing DIrector
Anthony J. Colavita BALMAC International, Inc.
Attorney-at-Law
Anthony J. Colavita, P.C.
John D. Gabelli
Vice President
Gabelli & Company, Inc.
Officers
Mario J. Gabelli, CFA A. Hartswell Woodson, III
President Vice President and
Portfolio Manager
Bruce N. Alpert
Vice President and James E. McKee
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 LLP
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
[PHOTO]
The
Gabelli
Global
Convertible
Securities
Fund
FIRST QUARTER REPORT
MARCH 31, 1997
