[PHOTO OMITTED]
The
Gabelli
Global
Telecommunications
Fund
FIRST QUARTER REPORT
MARCH 31, 1998
<PAGE>
[FLAG GRAPHIC OMITTED]
Gabelli Global Series Funds, Inc.
One Corporate Center
Rye, New York 10580 - 1434
The Gabelli Global Telecommunications Fund
First Quarter Report
March 31, 1998
To Our Shareholders,
Driven by low inflation, low interest rates, solid corporate earnings
growth, deals and liquidity (the continuing strong flow of cash into equity
funds), U.S. and European stock market indices posted strong gains in the first
quarter of 1988. Investors continued to favor global telecommunications stocks
as evidenced by the Gabelli Global Telecommunications Fund's strong absolute and
relative performance.
Investment Performance
For the first quarter ended March 31, 1998, The Gabelli Global
Telecommunications Fund's total return was 19.4%. The Lipper Analytical Services
Telecommunications Fund Average and Salomon Smith Barney Global
Telecommunications Index had returns of 23.0% and 22.2%, respectively, over the
same period. Each index is an unmanaged indicator of investment performance. The
Fund was up 57.4% over the trailing twelve month period. The Lipper
Telecommunications Fund Average and Salomon Smith Barney Global
Telecommunications Index rose 61.0% and 49.3%, respectively, over the same
twelve month period. Since inception on November 1, 1993 through March 31, 1998,
the Fund has a total return of 97.9%, which equates to an average annual return
of 16.7%.
Global Allocation
The accompanying chart presents the Fund's holdings by geographic region
as of March 31, 1998. 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.
HOLDINGS BY GEOGRAPHIC REGION - 3/31/98
[The following table was depicted as a pie chart in the printed material.]
United States 52.5%
Europe 19.8%
Asia/Pacific Rim 6.5%
Canada 9.5%
South America 7.2%
Other 4.5%
<PAGE>
Investment results(a)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Quarter
---------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
<S> <C> <C> <C> <C> <C>
1998: Net Asset Value ........ $15.91 -- -- -- --
Total Return ........... 19.4% -- -- -- --
- ------------------------------------------------------------------------------------------
1997: Net Asset Value ........ $11.29 $13.17 $14.22 $13.32 $13.32
Total Return ........... 0.1% 16.7% 7.9% 4.6% 31.9%
- ------------------------------------------------------------------------------------------
1996: Net Asset Value ........ $11.72 $12.16 $11.73 $11.28 $11.28
Total Return ........... 5.4% 3.8% (3.5)% 3.3% 9.0%
- ------------------------------------------------------------------------------------------
1995: Net Asset Value ........ $9.77 $10.29 $11.12 $11.12 $11.12
Total Return ........... 0.4% 5.3% 8.1% 1.6% 16.2%
- ------------------------------------------------------------------------------------------
1994: Net Asset Value ........ $9.68 $9.62 $10.38 $9.73 $9.73
Total Return ........... (5.1)% (0.6)% 7.9% (5.3)% (3.7)%
- ------------------------------------------------------------------------------------------
1993: Net Asset Value ........ -- -- -- $10.20 $10.20
Total Return ........... -- -- -- 3.0%(b) 3.0%(b)
- ------------------------------------------------------------------------------------------
</TABLE>
- ------------------------------------------
Average Annual Return - March 31, 1998(a)
- ------------------------------------------
1 Year 57.4%
3 Year 25.7%
Life of Fund(b) 16.7%
- ------------------------------------------
Dividend History
- --------------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
- ----------------- -------------- ------------------
December 30, 1997 $1.550 $13.28
December 31, 1996 $0.840 $11.28
December 29, 1995 $0.182 $11.12
December 30, 1994 $0.095 $ 9.73
December 31, 1993 $0.102 $10.20
(a) Total returns and average annual returns reflect changes in share price and
reinvestment of dividends and are net of expenses. The net asset value of the
Fund is reduced on the ex-dividend (payment) date by the amount of the dividend
paid. Of course, returns represent past performance and do not guarantee future
results. Investment returns and the principal value of an investment will
fluctuate. When shares are redeemed they may be worth more or less than their
original cost. (b) From commencement of operations on November 1, 1993. Note:
Investing in foreign securities involves risks not ordinarily associated with
investments in domestic issues, including currency fluctuation, economic and
political risks.
- --------------------------------------------------------------------------------
Commentary
Ringing Up Profits
The telecommunications group's exceptional performance this quarter may be
partly explained by WorldCom and British Telecom's battle over MCI and to a
lesser extent, SBC Communications' bid for Southern New England
Telecommunications, which helped raise the valuation standards in the industry.
However, there are more powerful long term trends that we believe will continue
to fuel selected telephone stocks.
You will note that our list of winners has a distinct international
flavor. There are three factors that make international telephone stocks
intriguing. To compete on the global economic stage, a modern telecommunications
system is essential. So, those companies operating in less developed countries
2
<PAGE>
and regions (most notably, Cable & Wireless, which is the majority owner of Hong
Kong Telecommunications, and Telefonica de Espana, which owns significant chunks
of Latin American telephone companies in addition to its domestic operations in
Spain) have exceptional growth potential. The second factor is privatization.
Formerly government-owned telephone companies in Europe and Latin America are
passing into the hands of profit oriented investors and are being run more
efficiently by private sector managements. Finally, international boundaries are
crumbling and companies are jockeying for global market share. This means
continued consolidation throughout the industry and an increased number of joint
venture partnerships that will surface value for shareholders.
As evidence that telephone stocks can be attractive even in difficult
economic and stock market environments, portfolio holdings such as Thai
Telephone, Telecom Asia and Telekom Malaysia were outstanding performers during
a quarter in which Southeast Asian economies and stock markets remained under a
great deal of pressure.
Increasing evidence that established cellular operators can prosper
despite competition from alternative wireless providers and Alltel's proposed
acquisition of 360(degree) Communications buoyed cellular telephone stocks this
quarter. In addition to our big gain in 360(degree) Communications, portfolio
holdings including Vanguard Cellular Systems, Rural Cellular Corp., Cellular
Communications International and AirTouch were up sharply. Despite the prospects
for reduced sales in Southeast Asia, cellular telephone equipment manufacturers
Nokia and Ericsson performed well.
Building the Information Superhighway
The Regional Bell Operating Companies (RBOCs) and GTE are not going to
stay on the sideline in the rush to provide high speed Internet access to homes
and businesses. In fact, GTE and US West have announced deployment of digital
subscriber lines (DSL), a technology that allows comparable band-with to cable
using existing copper wire telephone lines. This new development, if successful,
may considerably enhance the rate of return on plain old telephone lines and
provide new profits and margins for the RBOCs.
Eventually, many data network solutions may come from satellite service
providers, as evidenced by COMSAT's recent announcement of ATM satellite-based
Internet access via a proprietary software technology. COMSAT is also on the
verge of a complete restructuring and the effects of deregulation could
considerably brighten the company's future. Two other low orbit satellite
service providers, Iridium and Globalstar, respectively part-owned by Motorola
and Loral, are nearing final deployment of their constellation of satellites.
Within the next year, these companies will begin offering the most advanced
wireless satellite telephone service, which will bring wireless service to many
now unreachable parts of the world.
3
<PAGE>
Cable television operators, which will play an increasingly important role
in transmitting Internet and other digital data worldwide, also posted solid
gains, with General Cable, Metromedia International Group, Comcast U.K. Cable
Partners and United International Holdings making significant contributions to
the Fund's returns this quarter.
Quips on Management
Our Chief Investment Officer, Mario J. Gabelli, was recently interviewed
by a leading investor relations consulting firm to discuss how we, as securities
analysts, evaluate corporate managements. We would like to share with you
excerpts from this interview . . .
"Ideally, we like to own great companies with great management. Our second
choice is great companies with mediocre management. Occasionally, we will take a
chance on mediocre companies with talented new management that we believe can
dramatically improve the business. Our rational is simple - we believe a
princess who kisses a frog is more likely to turn into a frog than the frog is
to turn into a prince.
We don't feel we ask too much from corporate managements. We want them to
have vision as to how the world is changing and a sensible plan to position
their companies to take advantage of change rather than be overwhelmed by it. We
want them to be focused on competitive issues in their industry and be proactive
rather than reactive in meeting challenges from their competitors. We expect
CEOs and CFOs, who in our opinion, should be joined at the hip, to know their
companies intimately. If I or another one of our analysts spots something
unusual in an annual report or 10-K, I expect management to be able to explain
it. We want management to be honest with us. We always ask them to detail their
company's strengths and weaknesses. When we hear a lot about the former and
virtually nothing about the latter, we tend to be a little suspicious. Finally,
and most importantly, we expect them to serve the interest of their companies'
real owners - the shareholders. Managements that build a wall around themselves
and their companies' values are betraying shareholders."
We are not for or against corporate managements. We are for shareholders -
our clients. We don't encourage managements to run their companies to maximize
short term returns and sacrifice long term value. In fact, we respect managers
that are willing to suffer through a few bad quarters for the greater long term
good of their companies. Unlike many Wall Street research teams, we don't ask
management to assess the value of their companies or to forecast future cash
flows and earnings. That's our job. We ask only that they do their jobs--build
the value of their businesses in a manner that benefits long term shareholders."
Let's Talk Stocks
The following are stock specifics on selected holdings of our Fund.
Favorable earnings prospects do not necessarily translate into higher stock
prices, but they do express a positive trend which we
4
<PAGE>
believe will develop over time. The share prices of foreign holdings are stated
in U.S. dollar equivalent terms as of March 31, 1998.
360(degree) Communications Co. (XO - $31.25 - NYSE) is the second largest
publicly traded cellular company in the United States. The company offers
cellular, residential long distance and paging services and has 2.6 million
customers in 15 states. On March 16, Alltel Corp. (AT - $43.6875 - NYSE) offered
to acquire 360(degree) in a transaction totaling close to $6 billion.
BC Telecom Inc. (BCT - $38.87 - TSE), formerly British Columbia Telephone Co.,
is the second largest telecommunications services company in Canada. A
subsidiary of GTE owns 52% of the company. Its basic telephone operations
provide service to more than 2.5 million telephone lines and are growing at
rates much higher than the Canadian industry average. BCT's crown jewel is a
rapidly growing cellular phone company which currently serves over 407,000
subscribers. We expect BCT to take advantage of the deregulatory trend in Canada
by entering new businesses.
BCE Inc. (BCE - $41.75 - NYSE), the holding company for Bell Canada, is Canada's
largest telecommunications company. BCE has controlling interests in Northern
Telecom (NT - $64.625 - NYSE) and BCEMobile Communications (BCX - $29.85 - TSE).
There are substantial values in BCE. For example, "behind" each share of BCE
there are 0.4 shares of Northern Telecom. This NT interest, marked to market, is
worth over $25 per BCE share. The company is a possible candidate for break-up.
In the interim, the Canadian Radio and Television Commission is providing a more
attractive operating environment in which BCE is becoming more competitive.
Cable & Wireless plc (CWP - $37.75 - NYSE) is a United Kingdom-based company
comprised of broad global telecommunications interests. CWP has finalized plans
to merge its U.K. operations with Nynex CableComms Group plc and Bell Cable
Media plc, bolstering its presence in the increasingly competitive U.K.
communications market. The company now owns 53% of a new, publicly traded
U.K.-based company, Cable & Wireless Communications plc, which owns 100% of
Mercury Communications, the second largest provider of telecom services in
Britain, and a majority of Bell Cable Media, Nynex CableComms and Videotron
Holdings plc. Hong Kong Telecommunications (HKT - $20.9375 - NYSE), the dominant
telecom service provider in Hong Kong, is 54%-owned by CWP and remains the
"crown jewel" of the CWP portfolio. CWP is attractive based on its high rate of
growth and reasonable market valuation.
Southern New England Telecommunications Corp. (SNG - $72.3125 - NYSE) is a
holding company for Southern New England Telephone (SNET) which provides
telephone services for most of Connecticut. SNET has had success in expanding
into the long distance market in its home territory, gathering a 40% share of
the long distance market in Connecticut. SBC Communications (SBC - $43.375 -
NYSE) has agreed to acquire SNG for $4.26 billion in stock.
5
<PAGE>
Telecom Italia Mobile SpA (TIM.MI - $5.37 - Milan Stock Exchange), formerly a
subsidiary of Telecom Italia (the provider of wired local and long distance
telephone service in Italy), was spun-off last July and began trading on the
Milan stock exchange as an independent company. Telecom Italia Mobile is the
leading cellular provider in Italy. The company is the largest cellular provider
in Europe with close to seven million GSM subscribers. The competitive
environment in which Telecom Italia Mobile operates remains favorable, with only
one new entrant in the market. Two additional licenses have been awarded to
future competitors.
Telecomunicacoes Brasileiras SA (Telebras) (TBR - $129.8125 - NYSE) is the
Brazilian, government-controlled, monopoly telecommunications holding company
consisting of 28 subsidiaries serving more than 14 million telephone lines and
two million cellular customers in a country with a population of 160 million.
The penetration rate is less than 9% for telephone and 1% for cellular. Future
opportunities include the prospects of privatization, strong line growth and
improvements in efficiency. In October 1997, the Brazilian Ministry of
Communications announced the breakup of the company into three regional, nine
cellular and one long distance company.
Tele-Communications Inc. (TCOMA - $31.0938 - Nasdaq), one of the largest cable
TV operators in the U.S., is guided by Dr. John Malone - one of the most
shareholder sensitive managers we have found. Regulation has historically played
an important role in the valuation of cable properties. Passage of The
Telecommunications Reform Act of 1996, combined with the current deregulatory
climate in Congress, is providing a significant catalyst for cable stocks. TCOMA
is a well-positioned industry leader, from its wireless telephony PCS venture
with Sprint, Comcast and Cox Communications to its innovative Internet access
business, dubbed "@Home", and its 80% stake in Tele-Communications International
Inc. (TINTA - $20.125 - Nasdaq). An important strategic shift for the company is
underway as some cable properties are being sold or transferred to
allianced-partners, shifting debt and strengthening the company's balance sheet.
Cost reduction programs, including overhead reduction, are showing substantial
progress and increasing operating cash flow.
Telefonica de Espana (TEF - $132.25 - NYSE) is a diversified telecommunications
service provider offering services to more than 15 million lines. The company
also services a fast growing cellular subscriber base with over two million
subscribers. We consider TEF to be an attractive way to invest in Latin America,
with a diversified portfolio of telecommunication operations in the region. Its
portfolio of publicly traded Latin American companies includes: Compania de
Telecomunicaciones de Chile SA, Telefonica de Argentina SA and Compania Peruana
de Telefonos SA. TEF also holds interests in non-public Latin American telecom
operations in Mexico, Puerto Rico, Colombia, Uruguay and Venezuela. The
company's long term strategy is to create a Pan American network, leveraging the
Spanish speaking world. TEF jump started this effort with its decision to form a
global alliance with WorldCom and MCI, which is gaining momentum in the race to
become the dominant provider of one-stop shopping for full-service, global
telecommunications products.
6
<PAGE>
Telephone and Data Systems Inc. (TDS - $47.50 - ASE) is a domestic provider of
local telephone service to over 500,000 mostly rural access lines and is the
seventh largest cellular telephone company in the U.S. with a fast growing
paging business. TDS is oriented toward creating substantial shareholder value
(as opposed to focusing on near term earnings per share). Operating cash flow is
increasing, driven mainly by internal growth in cellular telephone. We expect
strong growth at TDS to increase its private market value. The company was
active in the PCS auctions and was the high bidder in eight markets with a
combined population of 27 million. TDS has investments in U.S. Cellular
(81%-owned), Aerial Communications (83%-owned) and American Paging (82%-owned).
TDS has announced a restructuring plan which is designed to unlock the value of
its business units.
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.
Additionally, The Gabelli Global Telecommunications Fund and other Gabelli Funds
are available through the no-transaction fee programs at many major discount
brokerage firms.
The Roth IRA
The Taxpayer Relief Act of 1997 included new tax incentives and more
opportunities to save for retirement and other major expenditures. The Roth IRA
is just one of these new opportunities now available at Gabelli Funds. Our
investor representatives are available at 1-800-GABELLI (1-800-422-3554) to
speak with you about establishing a new Roth IRA and to discuss your investment
choices.
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 0.30% 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 the
prospectus carefully before you invest or send money.
7
<PAGE>
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, IRAs, 401(k)s, quarterly reports, closing prices and other
current news. You can send us e-mail at [email protected].
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 GABTX. Please call us during the
business day for further information.
In the first quarter of 1998, global telecommunications stocks continued
to be outstanding absolute and relative performers. We do not believe this will
be a short term phenomena. We believe telecommunications companies will continue
to play a critical role in the further evolution of the global economic village
and that a portfolio concentrated in the best companies in the
telecommunications industry can deliver very attractive long term returns. We
thank you for your loyalty and as always, pledge our best efforts on your
behalf.
Sincerely,
/s/ Mario J. Gabelli, CFA /s/ Marc J. Gabelli
Mario J. Gabelli, CFA Marc J. Gabelli
Portfolio Manager and Associate Portfolio Manager
Chief Investment Officer
April 30, 1998
- --------------------------------------------------------------------------------
Top Ten Holdings
March 31, 1998
Cable & Wireless plc 360(degree) Communications Co.
Telephone and Data Systems Southern New England Telecom.
Telefonica de Espana Telecomunicacoes Brasileiras SA (Telebras)
BC Telecom Inc. Telecom Italia Mobile SpA
BCE Inc. Tele-Communications Inc.
- --------------------------------------------------------------------------------
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.
8
<PAGE>
The Gabelli Global Telecommunications Fund
Portfolio of Investments -- March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Market
Shares Value
------ -----
COMMON STOCKS - 85.9%
Alternative Telecommunication Providers - 1.4%
7,000 American Communications
Services Inc.+ .............................. $ 126,875
1,000 Colt Telecom Group plc+ ........................ 94,625
50,000 GST Telecommunications Inc.+ ................... 753,125
18,000 ICG Communications Inc.+ ....................... 670,500
2,000 Intermedia Communications Inc.+ ................ 159,250
4,000 McLeodUSA Inc., Cl. A+ ......................... 169,000
2,000 Startec Global Communications Corp.+ ........... 50,000
25,000 Suncom Telecommunications Inc.+ ................ 4,125
400 Teleport Communications
Group Inc., Cl. A+ ........................... 23,500
------------
2,051,000
------------
Broadcasting - 0.3%
1,000 Pathe SA ....................................... 204,174
5,000 Telemundo Group Inc., Cl. A+ ................... 209,375
------------
413,549
------------
Cable - 10.8%
40,000 Adelphia Communications Corp., Cl. A+ .......... 1,185,000
15,000 Cable Michigan Inc.+ ........................... 382,500
38,000 Cablevision Systems Corp., Cl. A+ .............. 2,498,500
70,000 Century Communications Corp., Cl. A+ ........... 896,875
55,000 Comcast Corp., Cl. A ........................... 1,907,813
44,000 Comcast U.K. Cable Partners Ltd.+ .............. 588,500
10,000 General Cable plc, ADR+ ........................ 140,000
5,000 Le Groupe Videotron ltee ....................... 62,406
33,000 NTL Inc.+ ...................................... 1,427,250
30,000 Rogers Communications Inc., Cl. B+ ............. 174,375
70,932 TCI Ventures Group+ ............................ 1,245,743
40,000 Tele-Communications Inc., Cl. A+ ............... 1,243,750
30,000 Tele-Communications
International Inc., Cl. A+ .................. 603,750
15,000 Telewest Communications plc, ADR+ .............. 225,000
85,000 United International Holdings Inc.,
Cl. A+ ...................................... 1,423,750
64,000 US WEST Media Group+ ........................... 2,224,000
------------
16,229,212
------------
Communications Equipment - 2.4%
60,000 Champion Technology Holdings, ADR .............. 37,500
4,400 Ericsson (L.M.) Telephone Co., ADR ............. 209,275
5,000 General Instrument Corp.+ ...................... 104,688
2,500 General Semiconductor Inc.+ .................... 29,844
3,500 Lucent Technologies Inc. ....................... 447,562
2,500 Motorola Inc. .................................. 151,563
2,000 Nokia Corp., Cl. A, ADR ....................... 215,875
33,000 Northern Telecom Ltd. .......................... 2,132,624
10,000 Scientific - Atlanta Inc. ...................... 195,625
500 Siemens AG, ADR ................................ 33,219
100,000 Time Engineering Berhad ........................ 51,924
------------
3,609,699
------------
Computer Software and Services - 0.1%
2,000 EarthLink Network Inc.+ ........................ 112,875
------------
Entertainment - 0.4%
23,462 Ascent Entertainment Group Inc.+ ............... 241,952
6,000 Metromedia International Group Inc.+ ........... 91,125
2,000 Time Warner Inc. ............................... 144,000
2,000 Viacom Inc., Cl. A+ ............................ 106,250
------------
583,327
------------
Long Distance Telephone Providers - 5.6%
28,000 AT&T Corp. ..................................... 1,837,500
25,000 Call-Net Enterprises Inc.+ ..................... 448,271
215 DDI Corp. ...................................... 528,830
4,000 Esprit Telecom Group plc+ ...................... 72,500
5,000 Fonorola Inc.+ ................................. 143,974
70,000 General Communication Inc., Cl. A+ ............. 555,625
7,000 Kokusai Denshin ................................ 277,163
5,000 LCI International Inc.+ ........................ 192,500
8,000 MCI Communications Corp. ....................... 396,000
8,000 MIDCOM Communications Inc.+ .................... 240
66,000 P.D.L. Holdings Ltd.+ .......................... 495,000
53,000 Philippine Long Distance Telephone Co. ......... 1,477,375
20,000 Sprint Corp. ................................... 1,353,750
4,000 Teleglobe Inc. ................................. 185,215
2,000 Telegroup Inc.+ ................................ 40,500
8,000 WorldCom Inc.+ ................................. 344,500
------------
8,348,943
------------
Publishing - 0.2%
1,000 Media General Inc., Cl. A ...................... 49,188
8,000 News Corp. Ltd., ADR ........................... 215,499
100,000 Seat SpA+ ...................................... 58,260
------------
322,947
------------
Regional and Local Telephone Providers - 16.6%
44,000 Aliant Communications Inc. ..................... 1,496,000
20,000 Alltel Corp. ................................... 873,750
44,000 Ameritech Corp. ................................ 2,175,250
15,200 Atlantic Tele-Network Inc.+ .................... 167,200
5,304 Bell Atlantic Corp. ............................ 543,660
27,000 BellSouth Corp. ................................ 1,824,188
9,000 Bruncor Inc. ................................... 313,263
2,000 Cincinnati Bell Inc. ........................... 71,250
40,000 Commonwealth Telephone
Enterprises Inc.+ ........................... 1,105,000
2,500 Electric Lightwave Inc., Cl. A+ ................ 50,000
150,000 First Pacific Co. Ltd.+ ........................ 87,119
10,000 First Pacific Co. Ltd., ADR .................... 28,750
50,000 Frontier Corp. ................................. 1,628,125
33,000 GTE Corp. ...................................... 1,975,875
15,000 Island Telephone Company Ltd. .................. 485,188
19,000 Maritime Telegraph and
Telephone Company Ltd. ...................... 524,389
12,000 NewTel Enterprises Ltd. ........................ 345,960
4,000 Peoples Telephone Company Inc.+ ................ 12,750
10,000 Quebec-Telephone ............................... 253,141
54,000 RCN Corp.+ .................................... 2,706,750
10,000 SBC Communications Inc. ....................... 436,250
9
<PAGE>
The Gabelli Global Telecommunications Fund
Portfolio of Investments (Continued) -- March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Market
Shares Value
------ -----
COMMON STOCKS (Continued)
Regional and Local Telephone
Providers (Continued)
43,000 Southern New England
Telecommunications Corp. ................... $ 3,109,437
90,000 Telephone and Data Systems Inc. ............... 4,274,999
10,000 Telus Corp. ................................... 291,816
3,000 US WEST Communications Group .................. 164,250
------------
24,944,360
------------
Satellite - 3.5%
3,000 American Mobile Satellite Corp.+ .............. 42,750
500 Asia Satellite Telecommunications
Holdings Ltd. .............................. 10,063
1,000 British Sky Broadcasting Group, ADR ........... 45,000
60,000 COMSAT Corp. .................................. 2,066,249
8,000 Echostar Communications
Corp., Cl. A+ .............................. 176,000
5,000 General Motors Corp., Cl. H ................... 226,250
8,000 Globalstar Telecommunications+ ................ 507,000
23,000 Iridium World Communications Ltd.+ ............ 1,434,625
15,000 Loral Space & Communications Ltd.+ ............ 419,063
4,000 PT Indonesia Satellite, ADR ................... 61,750
35,000 TCI Satellite Entertainment Inc., Cl. A+ ...... 249,375
2,000 U.S. Satellite Broadcasting Co.+ .............. 18,375
------------
5,256,500
------------
Telecommunications - 0.2%
12,500 Great Nordic Store ............................ 297,888
------------
Telephone Networks - 26.6%
87,000 BC Telecom Inc. ............................... 3,370,788
75,000 BCE Inc. ...................................... 3,131,250
3,000 BHI Corp. ..................................... 106,500
1,000 British Telecommunications plc, ADR ........... 109,375
34,000 Cable & Wireless Communications
plc, ADR+ .................................. 1,126,250
120,000 Cable & Wireless plc, ADR ..................... 4,529,999
100,000 Citizens Utilities Co., Cl. B + ............... 1,056,250
65,000 Compania de Telecomunicaciones
de Chile SA, ADR ........................... 1,791,563
500,000 CPT Telefonica del Peru, Cl. B ................ 1,082,455
1,000 CPT Telefonica del Peru, Cl. B, ADR ........... 21,563
16,000 Deutsche Telekom AG ........................... 352,000
38,000 Emerging Communications Inc.+ ................. 266,000
2,000 France Telecom SA+ ............................ 106,500
3,787 Hellenic Telecommunications
Organization SA (OTE) ...................... 94,743
15,000 Hong Kong Telecommunications
Ltd., ADR .................................. 314,063
2,000 Hungarian Telephone & Cable Corp.+ ............ 15,750
60 Japan Telecom Co. Ltd. ........................ 458,939
15,000 Koninklijke PTT Nederland NV, ADR ............. 777,188
500 Matav, ADR+ ................................... 15,563
167 Nippon Telegraph & Telephone Corp. ............ 1,390,090
10,000 Nippon Telegraph & Telephone
Corp., ADR ................................. 423,125
1,000 OAO Rostelecom, ADR + ......................... 19,875
800 Pakistan Telecommunications, GDR+ (a) ......... 53,200
12,000 Portugal Telecom SA, ADR ...................... 629,250
12,000 PT Telekomunikasi Indonesia ................... 117,750
20,000 Singapore Telecommunications Ltd. ............. 35,171
8,000 Tele Danmark A/S, ADR ......................... 365,000
36,000 Telecom Argentina Stet - France
Telecom SA, ADR ............................ 1,289,250
1,000,000 Telecom Asia+ ................................. 394,916
25,000 Telecom Corporation of New Zealand
Ltd., ADR+ ................................. 960,938
194,444 Telecom Italia SpA ............................ 1,532,302
24,000 Telecom Italia SpA, ADR ....................... 1,906,500
8,000,000 Telecommunications of Jamaica ................. 489,329
23,000 Telecomunicacoes Brasileiras SA
(Telebras), ADR ............................ 2,985,688
938,570 Telecomunicacoes de Sao Paulo SA
(Telesp)+ .................................. 231,950
41,000 Telefonica de Argentina SA, ADR ............... 1,560,563
27,500 Telefonica de Espana, ADR ..................... 3,636,874
36,000 Telefonos de Mexico SA, Cl. L, ADR ............ 2,029,500
300,000 Telekom Malaysia Berhad ....................... 1,038,486
600 Telstra Corp. Ltd., ADR+ (a) .................. 31,013
8,075 Thai Telephone & Telecom, GDR+ (a) ............ 6,334
3,000 Veba AG ....................................... 213,887
------------
40,067,730
------------
Wireless Communications - 17.8%
100,000 360(degree) Communications Co.+ ............... 3,125,000
40,000 ABC Communications Holdings Ltd. .............. 12,906
120,000 Aerial Communications Inc.+ ................... 930,000
40,000 AirTouch Communications Inc.+ ................. 1,957,500
28,400 Associated Group Inc., Cl. A+ ................. 1,093,400
32,000 Associated Group Inc., Cl. B+ ................. 1,176,000
13,000 BCE Mobile Communications Inc. ................ 388,045
500 Bouygues Group ................................ 87,157
20,000 Cellular Communications
International Inc.+ ........................ 1,360,000
75,000 Centennial Cellular Corp., Cl. A+ ............. 1,971,094
28,000 Century Telephone Enterprises Inc. ............ 1,711,500
438 CommNet Cellular Inc.+ ........................ 19,984
2,000 CoreComm Inc.+ ................................ 33,313
30,000 CP Pokphand, ADR .............................. 105,000
42,000 Europolitan Holdings AB+ ...................... 2,154,044
35,000 Grupo Iusacell SA, Ser. D, ADR+ ............... 490,000
26,000 Himachal Futuristic ........................... 9,033
24,000 Jasmine International ......................... 14,676
2,500 Mannesmann AG ................................. 1,808,756
5,300 Matrix Telecommunications Ltd.+ ............... 1,072
1,500 Metrocall Inc.+ ............................... 10,500
5,000 Mobile Telecommunications
Technologies Corp.+ ........................ 111,875
9,789 NEXTEL Communications Inc., Cl. A+ ............ 330,379
2,000 Omnipoint Corp.+ .............................. 59,000
10
<PAGE>
The Gabelli Global Telecommunications Fund
Portfolio of Investments (Continued) -- March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Market
Shares Value
------ -----
COMMON STOCKS (Continued)
Wireless Communications (Continued)
12,500 Price Communications Corp.+ ................... $ 200,000
22,000 PriCellular Corp.+ ............................ 280,500
105,000 Rogers Cantel Mobile
Communications Inc., Cl. B+ ................ 1,194,375
1,000 Rural Cellular Corp., Cl. A+ .................. 17,000
70,000 Securicor Group plc ........................... 478,266
100,000 Technology Resources Industries ............... 114,288
500 Telecel-Comunicacaoes Pessoais SA+ ............ 77,618
550,000 Telecom Italia Mobile SpA ..................... 2,955,366
6,000 Teligent Inc., Cl. A+ ......................... 184,500
2,000 Thyssen AG .................................... 432,696
20,000 Total Access Communications plc ............... 23,600
8,000 United States Cellular Corp.+ ................. 271,500
7,500 Vanguard Cellular Systems Inc., Cl. A+ ........ 136,406
1,000 Vimpel Communications+ ........................ 44,500
14,000 Vodafone Group plc, ADR ....................... 1,454,250
------------
26,825,099
------------
TOTAL COMMON STOCKS ........................... 129,063,129
------------
CONVERTIBLE PREFERRED STOCKS - 2.3%
Cable - 1.2% 18,000 Tele-Communications Inc.
6.00% Cv. Pfd., Ser. E ...................... 1,584,000
------------
Entertainment - 0.0%
1,000 Metromedia International Group Inc.
7.25% Cv. Pfd. .............................. 59,125
------------
Long Distance Telephone Providers - 0.5%
12,000 Sprint Corp. 8.25% Cv. Pfd. ................... 769,500
------------
Telephone Networks - 0.3%
9,500 Philippine Long Distance Telephone Co.
7.00% Cv. Pfd., Ser. III .................... 494,000
------------
Wireless Communications - 0.3%
3,000 AirTouch Communications Inc.
4.25% Cv. Pfd., Cl. C ...................... 213,000
5,000 AirTouch Communications Inc.
6.00% Cv. Pfd., Cl. B ...................... 206,250
3,000 Mobile Telecommunication
Technologies Corp. $2.25 Cv. Pfd.(a) ........ 99,375
------------
518,625
------------
TOTAL CONVERTIBLE
PREFERRED STOCKS .............................. 3,425,250
------------
PREFERRED STOCKS - 0.3%
Telephone Networks - 0.3%
3,355,677 Telecomunicacoes de Rio de Janeiro SA
(Telerj) Pfd. .............................. 473,671
40,900 Telecomunicacoes de Sao Paulo SA
(Telesp) Pfd. ............................... 13,129
------------
TOTAL PREFERRED STOCKS ........................ 486,800
------------
Principal Market
Amount Value
------ -----
CONVERTIBLE CORPORATE BONDS - 0.7%
Telephone Networks - 0.5%
$ 1,000,000 Telekom Malaysia Berhad
Sub. Deb. Cv. 4.00%, 10/03/04(a) ........... 817,500
------------
Wireless Communications - 0.2%
250,000 Technology Resources Industries
Sub. Deb. Cv. 2.75%, 11/28/04(a) ........... 251,250
------------
TOTAL CONVERTIBLE
CORPORATE BONDS ............................... 1,068,750
------------
U.S. GOVERNMENT OBLIGATIONS - 11.3%
17,065,000 U.S. Treasury Bills, 5.28% to 5.44%,
due 04/16/98 to 05/28/98++ ................. 17,016,295
------------
TOTAL INVESTMENTS - 00.5%
(Cost $97,334,866) .......................... 151,060,224
Other Assets and
Liabilities (Net) - (0.5)% ................. (799,324)
------------
NET ASSETS - 100.0%
(9,442,923 shares outstanding) .............. $150,260,900
============
NET ASSET VALUE, Offering and
Redemption Price Per Share .................. $15.91
======
FORWARD FOREIGN EXCHANGE CONTRACTS
Net Unrealized
Expiration Appreciation
Date (Depreciation)
---------- --------------
438,620(b) Sold Canadian Dollars
in exchange for
USD 310,858 ............ 04/01/98 $2,521
2,300,000(c) Sold Hong Kong Dollars
in exchange for
USD 292,584 ............ 08/26/98 $(2,504)
474,896,025(d) Sold Italian Lire
in exchange for
USD 264,566 ............ 04/03/98 $4,026
- ------------
(a) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31, 1998,
the market value of Rule 144A securities amounted to $ 1,258,672 or 0.8% of
net assets.
(b) Principal amount denoted in Canadian Dollars.
(c) Principal amount denoted in Hong Kong Dollars.
(d) Principal amount denoted in Italian Lire.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR -- American Depository Receipt.
GDR -- Global Depositary Receipt.
11
<PAGE>
Gabelli Global Series Funds, Inc.
The Gabelli Global Telecommunications 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
Chairman and Chief Investment Officer
Gabelli Funds, Inc.
Felix J. Christiana
Former Senior Vice President
Dollar Dry Dock Savings Bank
Anthony J. Colavita
Attorney-at-Law
Anthony J. Colavita, P.C.
John D. Gabelli
Vice President
Gabelli & Company, Inc.
Karl Otto Pohl
Former President
Deutsche Bundesbank
Werner J. Roeder, MD
Director of Surgery
Lawrence Hospital
Anthonie C. van Ekris
Managing Director
BALMAC International, Inc.
Officers
Mario J. Gabelli, CFA
President and Chief Investment Officer
Bruce N. Alpert
Vice President and Treasurer
A. Hartswell Woodson, III
Vice President and Portfolio Manager
James E. McKee
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 Telecommunications Fund. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective prospectus.
- --------------------------------------------------------------------------------
