[PHOTO OMITTED]
The
Gabelli
Global
Convertible
Securities
Fund
THIRD QUARTER REPORT
SEPTEMBER 30, 1999
<PAGE>
[GRAPHIC OMITTED]
The Gabelli Global
Convertible Securities Fund
Third Quarter Report - September 30, 1999 [PHOTO OMITTED]
Hart Woodson
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# 1 Convertible Securities Fund!!
Lipper Inc. ranked Gabelli Global Convertible Securities Fund 1 for the
one-year period ended 9/30/99 among 62 convertible securities funds.*
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To Our Shareholders,
Last quarter continued to reward global convertible investors. For the
twelve-month period ended September 30, 1999, your fund was the number one
ranked convertible fund out of 62 funds that comprise the Lipper Convertible
Securities Fund Average. Your Fund benefited from its investments in the
telecommunications and media sector as well as its exposure to Japan and Europe.
The global economy is in the midst of an important transition, as economic
recovery accelerates outside the United States. Although market volatility is
likely to increase as the U.S. tries to achieve a smooth landing, your portfolio
is positioned to benefit from this recovery.
Investment Performance
For the third quarter ended September 30, 1999, The Gabelli Global
Convertible Securities Fund's (the "Fund") total return was 6.72%. The Warburg
Dillon Read Global Convertible Index, Merrill Lynch Global Bond Index and Morgan
Stanley Capital International World Free Index of global equity markets had
returns of 4.26%, 2.86% and (1.60)%, respectively, over the same period. Each
index is an unmanaged indicator of investment performance. The Fund was up
40.95% over the trailing twelve-month period. The Warburg Dillon Read Global
Convertible Index, Merrill Lynch Global Bond Index and Morgan Stanley World Free
Index rose 29.80%, (0.06)% and 30.90%, respectively, over the same twelve-month
period.
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*Lipper Inc. ranked Gabelli Global Convertible Securities Fund 18 among 39
convertible securities funds for the three-year period ended 9/30/99 and 24
among 27 convertible securities funds for the five-year period ended 9/30/99.
Lipper rankings are based upon one, three and five-year total returns at NAV.
<PAGE>
INVESTMENT RESULTS (a)
- --------------------------------------------------------------------------------
Quarter
-----------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
1999: Net Asset Value $10.89 $11.91 $12.71 -- --
Total Return .. 7.6% 9.4% 6.7% -- --
- --------------------------------------------------------------------------------
1998: Net Asset Value $10.43 $10.36 $9.09 $10.12 $10.12
Total Return .. 11.1% (0.7)% (12.3)% 12.2% 8.6%
- --------------------------------------------------------------------------------
1997: Net Asset Value $10.27 $10.98 $11.15 $9.39 $9.39
Total Return .. 0.9% 6.9% 1.5% (6.1)% 2.8%
- --------------------------------------------------------------------------------
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%
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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)
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Average Annual Returns - September 30, 1999 (a)
-----------------------------------------------
1 Year ................................................................ 40.95%
5 Year ................................................................ 9.58%
Life of Fund (b) ...................................................... 9.61%
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Dividend History
- --------------------------------------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
- ----------------- -------------- ------------------
December 28, 1998 $0.080 $ 9.96
December 30, 1997 $1.070 $ 9.33
December 31, 1996 $1.200 $10.18
December 29, 1995 $0.393 $10.79
December 30, 1994 $0.160 $ 9.93
(a) Total returns and average annual returns reflect changes in share price and
reinvestment of dividends and are net of expenses. The net asset value of the
Fund is reduced on the ex-dividend (payment) date by the amount of the dividend
paid. Of course, returns represent past performance and do not guarantee future
results. Investment returns and the principal value of an investment will
fluctuate. When shares are redeemed they may be worth more or less than their
original cost. (b) From commencement of investment 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.
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For the five-year period ended September 30, 1999, the Fund's total return
averaged 9.58% annually versus average annual total returns of 11.41%, 7.06% and
15.07% for the Warburg Dillon Read Global Convertible Index, Merrill Lynch
Global Bond Index and Morgan Stanley World Free Index, respectively. Since
inception on February 3, 1994 through September 30, 1999, the Fund had a
cumulative total return of 68.13%, which equates to an average annual return of
9.61%.
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<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 a competitive 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 increase
in industrial demand.
Global Allocation
The accompanying chart represents the Fund's holdings by geographic region
as of September 30, 1999. 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 - 9/30/99
Europe 24.3%
Japan 31.2%
Asia/Pacific Rim 3.7%
Canada 1.3%
South Africa 0.2%
United States 39.3%
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.
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, 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.
3
<PAGE>
COMMENTARY
The global economy is in the midst of an important transformation. We are
moving from a liquidity-induced global healing process to one of synchronized
world growth. As the economies outside the U.S. recover, liquidity will flow
into the real economy. Increased economic activity is likely to lead to higher
interest rates and inflation. What does this mean for global investors?
The virtuous circle we have enjoyed in the U.S. may be faltering. Over the
last few years, the United States has enjoyed solid economic growth with low
inflation. The amazing performance of the U.S. economy increased the demand for
dollar investments. The strong dollar, together with technological innovations
and low commodity prices, kept inflation dormant. Wage rates were held down by
tough price competition. Margins and profits increased. Stock prices rose. With
growth in the rest of the world picking up, several things are changing. First,
commodity prices are rising. Second, the dollar has come under pressure as the
U.S. trade deficit widens. Third, the Fed, concerned by a tight job market, has
increased interest rates. Does this mean the bull market is over? We don't think
so. Although volatility may increase as the Fed orchestrates a smooth landing,
we continue to find attractively valued convertible investments. In fact,
despite higher interest rates, we expect the recovery in Asia and Europe to
benefit our investments in these regions.
In Europe, we are optimistic that the economy is finally recovering.
French household consumption rose 6.8% in July. In Germany, the closely watched
Information and Forschung Institute's ("IFO") business sentiment index rose to
95.3 in August from 91.4 in December. Corporate restructuring and merger and
acquisition activity are accelerating. In the third quarter, European merger
activity outpaced the U.S. for the first time in seven years. We are even
witnessing hostile takeover bids, such as Total for Elf Aquitaine and Bank of
Scotland for Nat West. Consolidation will continue to drive shareholder value.
In Japan, the economy is showing signs of recovery as Gross Domestic
Product ("GDP") grew at a 1.2% annualized rate during the second quarter. The
September Tankan report, a sentiment indicator, improved from down 49 last
December to down 22. Evidence of corporate restructuring is becoming more
apparent. A notable example was the DKB-Fuji-IBJ merger, which is likely to
accelerate further consolidation in the banking sector. In fact, the number of
mergers involving Japanese companies rose 23% during the first nine months of
the year to over 5 trillion yen (USD 48 billion) including Renault's acquisition
of a stake in Nissan Motors.
In short, we remain optimistic. Economic growth in Japan and Europe will
help drive earnings higher. Consolidation and restructuring will act as a
catalyst to unlock hidden value.
Let's Talk Converts
The following are specifics on selected holdings of our Fund. Favorable
earnings prospects do not necessarily translate into higher prices, but they do
express a positive trend which we believe will develop over time. The share
prices of foreign holdings are stated in U.S. dollar equivalent terms as of
September 30, 1999.
Sailor Pen Co. Ltd. (0.13%, 06/30/03) is Japan's second largest manufacturer of
fountain pens, marking pens, and mechanical pencils. The company is expanding
its production to include household electrical
4
<PAGE>
appliances and maintains a plant overseas in Taiwan. The company's new products,
along with the implementation of a restructuring plan, have helped profits grow
dramatically over the past two years and have positioned the company to continue
this trend.
With the stock at Y 1,760, the 0.125% coupon convertible trades at 174%,
at parity. The notes mature in 2003.
THK Co. Ltd. (0.30%, 09/30/03) manufactures linear motion systems for various
industrial machines as well as other equipment components for machine tools and
semiconductor manufacturing equipment. THK's orders have been growing since last
November. These increased orders should translate to stronger sales and profits
in fiscal year 1999.
With the stock at Y 3,140, the convertible trades at 125.23%, an 8.4%
premium to parity. The bonds mature in 2003 and are rated A- by the JCR.
Canal +/Mediaset SpA (3.50%, 04/01/02) is a prominent Italian media company
operating in broadcasting, advertising, and television rights. The company is
Italy's largest broadcaster, operating three stations and commanding an audience
share of 42%. The company also owns a film library, produces television
programming, and records and sells music.
With Mediaset stock at 9.506 Euros, the convertible trades at 201.8 French
Francs. The convertible has a yield advantage of 24 basis points over the common
stock and trades at a 5.3% discount.
Telefonica SA (2.00%, 07/15/02) is a global telecommunications service provider.
The company serves industrial, residential and municipal customers in Spain and
throughout Latin and North America. The company also retails telephones, mobile
phones and faxes in addition to providing videoconferencing services.
With the common stock at 15.03 Euros, the convertible trades at 161.75%.
The convertible enjoys a 123 basis point yield advantage over the common stock
and trades at a premium of less than 0.5%.
Swiss Life/Mannesmann AG (1.50%, 05/20/03) is a diversified German manufacturing
company operating an engineering division, automotive division, and
telecommunications unit. The company has finished exiting its problem businesses
and has concentrated its efforts on its start-up telecommunications businesses.
This U.S. dollar-denominated bond trades at 152.75% with the stock at
150.05 Euros. That is a 2.1% premium to parity for an additional 0.57% in yield.
Kanto Biomedical Laboratory Co. Ltd. (1.60%, 11/30/06) is a medium-size clinical
testing company providing mainly general biochemical testing. The company is
active in the Tokyo area and has 1,800 hospitals as customers. The company is
also entering the nursing care business in an effort to expand its client base.
This convertible recently traded at 151.36% with the stock at Y 2,120. The
bond trades at a slight discount to parity and yields 32 basis points more than
the stock.
5
<PAGE>
Yamanouchi Pharmaceutical Co. Ltd. (1.50%, 12/31/02) manufactures and markets a
wide array of pharmaceuticals for human and veterinary use. The company has also
expanded into cosmetics and health foods. The company is driven by strong
research and development and is also actively expanding overseas with a plant in
Ireland and a research laboratory in England.
This 1.5% coupon convertible bond matures in December 2002 and trades at
145.3% versus the stock at Y 4,990. This represents a premium of 5.4% over
parity.
Koninklijke Ahold NV (3.00%, 09/30/03) operates over 3,500 supermarkets,
specialty stores, hypermarkets, discount stores and cash-and-carry outlets in
the Netherlands, Portugal, Poland, the Czech Republic, the Americas and Asia.
The company also wholesales food to restaurants, schools, caterers and other
commercial customers. The company continues to extend its reach with its
proposed purchase of Pathmark in the United States.
This bond trades at 116.5% with the stock at 30.9 Euros. These bonds are
rated A- by the S&P Credit agency.
Clear Channel Communications Inc. (2.63%, 04/01/03) is a diversified media
company that operates in radio and television broadcasting and outdoor
advertising. Clear Channel owns over 270 radio stations and 20 television
stations. The company currently has an agreement to acquire AMFM Inc. that will
add an additional 465 radio stations in 105 markets representing 65 million
listeners, making Clear Channel a media force.
This bond trades at 139.75%, with the stock at $79.875, to arrive at a
premium of 8.4% and a yield advantage of 1.8%.
Ricoh Leasing Co. Ltd. (0.40%, 09/30/02) began as the credit sales and leasing
arm of its parent, Ricoh Co. Ricoh Leasing strives to become a
sales-support-leasing specialist for suppliers. Ricoh's leasing will expand, as
sales of Ricoh office equipment and medical supplies are projected to increase
through 2000.
These convertibles trade at 134.41% with the stock at Y 3080. This bond
behaves like an equity substitute and trades at parity.
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 Convertible Securities Fund and other Gabelli
Funds are available through the no-transaction fee programs at many major
discount brokerage firms.
6
<PAGE>
In Conclusion
We are research-driven stock pickers with a long-term time horizon. Our
goal is to identify attractive convertibles of companies selling at a discount
to their intrinsic value, which have a catalyst to unlock that value. We believe
this philosophy provides us with a margin of safety that buffers us from the
vicissitudes of today's volatile marketplace. We thank you for your continued
support of our investment methodology.
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
business day for further information.
Sincerely,
/s/ A. Hartswell Woodson
A. Hartswell Woodson, III
Portfolio Manager
October 25, 1999
- --------------------------------------------------------------------------------
Top Ten Holdings
September 30, 1999
------------------
Sailor Pen Co. Ltd. Siebel Systems Inc.
THK Co. Ltd. Kanto Biomedical Laboratory Co. Ltd.
Canal + Yamanouchi Pharmaceutical Co. Ltd.
Telefonica Europe BV Clear Channel Communications Inc.
Swiss Life/Mannesmann AG Koninklijke Ahold NV
- --------------------------------------------------------------------------------
NOTE: The views expressed in this report reflect those of the portfolio manager
only through the end of the period stated in this report. The manager's views
are subject to change at any time based on market and other conditions.
7
<PAGE>
The Gabelli Global Convertible Securities Fund
Portfolio of Investments -- September 30, 1999 (Unaudited)
================================================================================
Principal Market
Amount Value
------ -----
CORPORATE BONDS -- 77.0%
Automotive: Parts and Accessories -- 3.0%
$ 125,000 Standard Motor Products Inc.
6.75%, 07/15/09 ............................ $ 110,078
20,000,000(b) Tokai Rika Co. Ltd.
1.05%, 03/31/06 ............................ 224,688
-----------
334,766
-----------
Broadcasting -- 6.6%
1,000,000(c) Canal Plus / Mediaset
Sub. Deb. Cv.
3.50%, 04/01/02 ............................ 338,912
190,000 Clear Channel Communications Inc.
2.63%, 04/01/03 ............................ 266,950
100,000 Scandinavian Broadcasting System SA
Sub. Deb. Cv.
7.00%, 12/01/04 ............................ 142,125
-----------
747,987
-----------
Building and Construction -- 1.0%
91,840(d) Bouygues SA Cv.
1.70%, 01/01/06 ............................ 119,289
-----------
Business Services -- 3.5%
100,000 Omnicom Group Inc.
2.25%, 01/06/13 ............................ 167,375
131,976(d) Vivendi Cv.
1.25%, 01/01/04 ............................ 128,631
94,850(d) Vivendi Cv.
1.50%, 01/01/05 ............................ 96,008
-----------
392,014
-----------
Communications Equipment -- 2.7%
200,000 Swiss Life / Mannesmann AG
Sub. Deb. Cv.
1.50%, 05/20/03 ............................ 305,500
-----------
Computer Hardware -- 2.2%
250,000 CMC Magnetics Corp. Cv.
1.00%, 10/06/04(a) ......................... 250,625
-----------
Computer Software and Services -- 5.8%
20,000,000(b) Capcom Co. Ltd.
0.80%, 09/28/01 ............................ 210,645
25,000 EMC Corp.
3.25%, 03/15/02 ............................ 155,312
300,000 Siebel Systems Inc.
5.50%, 09/15/06 ............................ 294,000
-----------
659,957
-----------
Consumer Products -- 4.1%
400,000 Sailor Pen Co. Ltd.
0.13%, 06/30/03 ............................ 463,290
-----------
Diversified Industrial -- 2.0%
100,000 Comverse Technology Inc.
4.50%, 07/01/05 ............................ 226,375
-----------
Electronics -- 7.8%
100,000 Level One Communications Inc.
4.00%, 09/01/04 ............................ 245,500
20,000,000(b) Mimasu Semiconductor Industry Co.
0.80%, 05/31/06 ............................ 224,688
20,000,000(b) NEC Corp. Cv.
1.90%, 03/31/04 ............................ 244,160
15,000,000(b) Toshiba Corp. Cv.
1.80%, 03/29/02 ............................ 169,358
-----------
883,706
-----------
Energy and Utilities -- 1.0%
110,000 Devon Energy Corp.
4.95%, 08/15/08 ............................ 108,625
-----------
Entertainment -- 1.9%
20,000,000(b) Toho Co. Ltd. Cv.
0.90%, 08/31/04 ............................ 213,453
-----------
Equipment and Supplies -- 7.1%
100,000 Antec Corp.
Sub. Deb. Cv.
4.50%, 05/15/03(a) ......................... 229,000
100,000 Elektrim SA
2.00%, 05/30/04 ............................ 59,625
20,000,000(b) Riken Keiki Co. Ltd.
1.00%, 03/31/04 ............................ 173,384
30,000,000(b) THK Co. Ltd.
0.30%, 09/30/03 ............................ 348,266
-----------
810,275
-----------
Financial Services -- 8.0%
15,000,000(b) Bank of Fukuoka Ltd.
1.10%, 09/28/07 ............................ 168,656
150,000 Cregem Finance NV
Sub. Deb. Cv.
2.75%, 01/06/04 ............................ 158,625
60,000(d) Financiere Agache
0.00%, 04/23/04 ............................ 208,327
75,465(d) Finaxa Sub. Deb. Cv.
3.00%, 01/01/07 ............................ 120,504
20,000,000(b) Ricoh Leasing Co. Ltd.
0.40%, 09/30/02 ............................ 252,774
-----------
908,886
-----------
Food and Beverage -- 3.3%
10,000,000(b) Doutor Coffee Co. Ltd. Cv.
0.60%, 09/30/03 ............................ 189,112
150,000 Nestle Holdings Inc. Cv.
3.00%, 06/17/02 ............................ 180,375
-----------
369,487
-----------
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<PAGE>
The Gabelli Global Convertible Securities Fund
Portfolio of Investments (Continued) -- September 30, 1999 (Unaudited)
================================================================================
Principal Market
Amount Value
------ -----
CORPORATE BONDS (Continued)
Health Care -- 4.9%
20,000,000(b) Kanto Biomedical Laboratory Co. Ltd.
1.60%, 11/30/06 ............................ $ 284,604
20,000,000(b) Yamanouchi Pharmaceutical Co. Ltd. Cv.
1.50%, 12/31/02 ............................ 273,370
-----------
557,974
-----------
Publishing -- 2.5%
$ 100,000 Daily Mail & General Trust plc
2.50%, 10/05/04 ............................ 150,225
250,000 Medya Holding Sub. Deb. Cv.
10.00%, 06/28/01 ........................... 131,250
-----------
281,475
-----------
Retail -- 3.7%
50,000 Home Depot Inc.
3.25%, 10/01/01 ............................ 145,000
470,000 Koninklijke Ahold NV
3.00%, 09/30/03 ............................ 266,134
-----------
411,134
-----------
Telecommunications -- 4.2%
150,000 Bell Atlantic Financial Cv.
4.25%, 09/15/05 ............................ 156,750
200,000 Telefonica Europe BV
Sub. Deb. Cv.
2.00%, 07/15/02 ............................ 319,000
-----------
475,750
-----------
Wireless Communications -- 1.7%
300,000 U.S. Cellular Corp.
0.00%, 06/15/15 ............................ 189,000
-----------
TOTAL CORPORATE BONDS ......................... 8,709,568
-----------
Shares
------
PREFERRED STOCKS -- 20.9%
Business Services -- 1.2%
4,800 Cendant Corp.
7.50% Cv. Pfd. ............................. 139,500
-----------
Cable -- 9.2% 2,200 CSC Holdings Inc.
8.50% Cv. Pfd., Ser. I ..................... 238,425
2,000 Houston Industries Inc. / Time
Warner Inc.
7.00% Cv. Pfd. ............................. 204,000
MediaOne Group Inc.
1,000 4.50% Cv. Pfd. .............................. 135,000
2,200 6.25% Cv. Pfd. .............................. 230,863
4,500 UnitedGlobalCom Inc.
7.00% Cv. Pfd. ............................. 239,625
-----------
1,047,913
-----------
Consumer Services -- 1.3%
4,000 Carriage Services Inc.
7.00% Cv. Pfd.(a) .......................... 148,000
-----------
Energy and Utilities -- 1.2%
4,300 EVI Inc.
5.00% Cv. Pfd. ............................. 133,558
-----------
Entertainment -- 0.8%
2,000 Village Roadshow Ltd.
6.50% Cv. Pfd.(a) .......................... 93,000
-----------
Food and Beverage -- 1.4%
3,400 Seagram Co.
7.50% ACES ................................. 157,887
-----------
Paper and Forest Products -- 0.8%
2,000 Amcor Ltd.+ ................................... 90,250
-----------
Publishing -- 0.9%
3,500 Reader's Digest Association Inc.
Cv. Pfd. ................................... 98,875
-----------
Satellite -- 1.1%
2,500 Loral Space & Communications Ltd.
6.00% Cv. Pfd. ............................. 124,850
-----------
Telecommunications -- 1.4%
4,000 Global Telesystems Group Inc.
7.25% Cv. Pfd.(a) .......................... 155,750
-----------
Wireless Telecommunications -- 1.6%
4,000 Winstar Communications Inc.
7.00% Cv. Pfd. ............................. 183,250
-----------
TOTAL PREFERRED STOCKS 2,372,833
-----------
COMMON STOCKS -- 3.0%
Business Services -- 1.0%
500 Havas Advertising SA .......................... 119,728
-----------
Computer Software and Service -- 0.1%
100 Oracle Corp. Japan ............................ 14,979
-----------
Financial Services -- 1.7%
250 Shohkoh Fund & Co. Ltd. ....................... 186,069
-----------
Metals and Mining -- 0.2%
10,000 Durban Roodepoort Deep Ltd.+ .................. 19,825
-----------
TOTAL COMMON STOCKS ........................... 340,601
-----------
WARRANTS -- 0.1%
Diversified Industrial -- 0.1%
100 Mori Seiki+ ................................... 13,125
-----------
Entertainment -- 0.0%
50 Shochiku Co. Ltd.+ ............................ 1,375
-----------
TOTAL WARRANTS ................................ 14,500
-----------
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<PAGE>
The Gabelli Global Convertible Securities Fund
Portfolio of Investments (Continued) -- September 30, 1999 (Unaudited)
================================================================================
Market
Shares Value
------ -----
OPTIONS -- 0.0%
Metals and Mining -- 0.0%
5,000 Durban Roodepoort Deep Ltd.,
Call, 12/31/99 + ........................... $ 1,416
10,000 Durban Roodepoort Deep Ltd.,
Ser. B, Call, 06/30/02 + ................... 1,416
-----------
TOTAL OPTIONS ................................. 2,832
-----------
Principal
Amount
------
U.S. GOVERNMENT OBLIGATIONS -- 2.4%
$ 269,000 U.S. Treasury Bills, 4.56% to 4.66%++,
due 10/14/99 to 11/26/99 ................... 267,543
-----------
TOTAL INVESTMENTS -- 103.4%
(Cost $10,906,927) ......................... 11,707,877
Other Assets and
Liabilities (Net) -- (3.4)% ................ (381,235)
-----------
NET ASSETS -- 100.0%
(891,245 shares outstanding) ............... $11,326,642
===========
NET ASSET VALUE,
Offering and Redemption
Price Per Share ............................ $12.71
======
- ----------
(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
September 30, 1999, the market value of Rule 144A securities amounted to
$876,375 or 0.1% of net assets.
(b) Principal amount denoted in Japanese Yen.
(c) Principal amount denoted in French Francs.
(d) Principal amount denoted in Euros.
+ Non income producing security.
++ Represents annualized yield at date of purchase.
ACES -- Adjustable Convertible Exchange Security.
% of
Market Market
Global Diversification Value Value
- ---------------------- ----- -----
North America 40.6% $ 4,751,091
Japan 31.2% 3,655,995
Europe 24.3% 2,844,259
Asia/Pacific Rim 3.7% 433,875
South Africa 0.2% 22,657
----- -----------
100.0% $11,707,877
===== ===========
10
<PAGE>
- --------------------------------------------------------------------------------
Gabelli Family of Funds
- --------------------------------------------------------------------------------
Gabelli Asset Fund _____________________________________________________________
Seeks to invest primarily in a diversified portfolio of common stocks selling at
significant discounts to their private market value. The Fund's primary
objective is growth of capital.
(No-load) Portfolio Manager: Mario J. Gabelli, CFA
Gabelli Growth Fund ____________________________________________________________
Seeks to invest primarily in large cap stocks believed to have favorable, yet
undervalued, prospects for earnings growth. The Fund's primary objective is
capital appreciation.
(No-Load) Portfolio Manager: Howard F. Ward, CFA
Gabelli Westwood Equity Fund ___________________________________________________
Seeks to invest primarily in the common stock of seasoned companies believed to
have proven records and above average historical earnings growth. The Fund's
primary objective is capital appreciation.
(No-load) Portfolio Manager: Susan M. Byrne
Gabelli Small Cap Growth Fund __________________________________________________
Seeks to invest primarily in common stock of smaller companies (market
capitalizations less than $500 million) believed to have rapid revenue and
earnings growth potential. The Fund's primary objective is capital appreciation.
(No-load) Portfolio Manager: Mario J. Gabelli, CFA
Gabelli Westwood SmallCap Equity Fund __________________________________________
Seeks to invest primarily in smaller capitalization equity securities - market
caps of $1 billion or less. The Fund's primary objective is long-term capital
appreciation.
(No-load) Portfolio Manager: Lynda Calkin, CFA
Gabelli Westwood Intermediate Bond Fund ________________________________________
Seeks to invest in a diversified portfolio of bonds with various maturities. The
Fund's primary objective is total return.
(No-load) Portfolio Manager: Patricia Fraze
Gabelli Equity Income Fund _____________________________________________________
Seeks to invest primarily in equity securities with above market average yields.
The Fund pays quarterly dividends and seeks a high level of total return with an
emphasis on income.
(No-load) Portfolio Manager: Mario J. Gabelli, CFA
Gabelli Westwood Balanced Fund _________________________________________________
Seeks to invest in a balanced and diversified portfolio of stocks and bonds. The
Fund's primary objective is both capital appreciation and current income.
(No-load) Portfolio Managers: Susan M. Byrne & Patricia Fraze
Gabelli Westwood Mighty Mites(SM) Fund _________________________________________
Seeks to invest in micro-cap companies that have market capitalizations of $300
million or less. The Fund's primary objective is long-term capital appreciation.
(No-Load) Team Managed: Mario J. Gabelli, CFA, Marc J. Gabelli,
Laura K. Linehan and Walter K. Walsh
Gabelli Value Fund _____________________________________________________________
Seeks to invest in securities of companies believed to be undervalued. The
Fund's primary objective is long-term capital appreciation. Max. Sales charge:
5 1/2%
Portfolio Manager: Mario J. Gabelli, CFA
Gabelli ABC Fund _______________________________________________________________
Seeks to invest in securities with attractive opportunities for appreciation or
investment income. The Fund's primary objective is total return in various
market conditions without excessive risk of capital loss.
(No-load) Portfolio Manager: Mario J. Gabelli, CFA
Gabelli U.S. Treasury Money Market Fund ________________________________________
Seeks to invest 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.
(No-load) Portfolio Manager: Judith A. Raneri
The Treasurer's Fund ___________________________________________________________
Three money market portfolios designed to generate superior returns without
compromising portfolio safety. U.S. Treasury Money Market seeks to invest in
U.S. Treasury bills, notes and bonds. Tax Exempt Money Market seeks to invest in
municipal securities. Domestic Prime Money Market seeks to invest in prime
quality, domestic money market instruments.
(No-Load) Portfolio Manager: Judith A. Raneri
An investment in the above Money Market Funds are neither insured nor guaranteed
by the Federal Deposit Insurance Corporation or any government agency. Although
the funds seek to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Funds.
Global Series
Gabelli Global Telecommunications Fund
Seeks to invest in telecommunications companies throughout the world -
targeting undervalued companies with strong earnings and cash flow
dynamics. The Fund's primary objective is capital appreciation.
(No-load) Team Manager: Mario J. Gabelli, CFA
Gabelli Global Convertible Securities Fund
Seeks to invest principally in bonds and preferred stocks which are
convertible into common stock of foreign and domestic companies. The
Fund's primary objective is total return through a combination of current
income and capital appreciation.
(No-load) Portfolio Manager: Hart Woodson
Gabelli Global Interactive Couch Potato(R)Fund
Seeks to invest in securities of companies involved with communications,
creativity and copyright. The Fund also seeks to invest in companies
participating in emerging technological advances in interactive services
and products. The Fund's primary objective is capital appreciation.
(No-load) Portfolio Manager: Marc J. Gabelli
Gabelli Global Opportunity Fund
Seeks to invest in common stock of companies which have rapid growth in
revenues and earnings and potential for above average capital appreciation
or are undervalued.
The Fund's primary objective is capital appreciation.
(No-load) Portfolio Managers: Marc J. Gabelli & Caesar Bryan
Gabelli Gold Fund ______________________________________________________________
Seeks to invest in a global portfolio of equity securities of gold mining and
related companies. The Fund's objective is long-term capital appreciation.
Investment in gold stocks is considered speculative and is affected by a variety
of world-wide economic, financial and political factors.
(No-load) Portfolio Manager: Caesar Bryan
Gabelli International Growth Fund ______________________________________________
Seeks to invest in the equity securities of foreign issuers with long-term
capital appreciation potential. The Fund offers investors global
diversification.
(No-load) Portfolio Manager: Caesar Bryan
The six funds above invest in foreign securities which involves risks not
ordinarily associated with investments in domestic issues, including currency
fluctuation, economic and political risks.
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The Funds listed above are distributed by Gabelli & Company, Inc.
To receive a prospectus, call 1-800-GABELLI (422-3554). The prospectus
gives a more complete description of the Fund, including fees and expenses.
Read the prospectus carefully before you invest or send money.
1-800-GABELLI
(1-800-422-3554) o fax: 1-914-921-5118 o www.gabelli.com o [email protected]
One Corporate Center, Rye, New York 10580
<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
Chairman and Chief
Investment Officer
Gabelli Asset Management 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
Senior Vice President
Gabelli & Company, Inc.
Karl Otto Pohl
Former President
Deutsche Bundesbank
Werner J. Roeder, MD
Medical Director
Lawrence Hospital
Anthonie C. van Ekris
Medical DIrector
BALMAC International, Inc.
Officers and Portfolio Managers
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
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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.
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GAB443Q399SR
