[GRAPHIC OMITTED]
The
Gabelli
Global
Convertible
Securities
Fund
FIRST QUARTER REPORT
MARCH 31, 1999
<PAGE>
[GRAPHIC OMITTED]
The Gabelli Global
Convertible Securities Fund
First Quarter Report - March 31, 1999
[PHOTO OMITTED]
Hart Woodson
To Our Shareholders,
World equity markets rose in the first quarter of 1999, but at a much
slower pace than in the previous quarter. Global equities returned 4.0% in U.S.
dollar terms versus 21.1% in the fourth quarter of 1998. The prior quarter was
boosted by an injection of liquidity as central banks around the world cut
interest rates to accommodate the fallout from Russia's default. In the first
quarter, equity returns were held in check as global bond yields rose due to a
stronger than expected U.S. economy. Global bonds returned a negative 2.6% in
the quarter as a strong U.S. dollar pulled down returns in Europe and Asia.
Global convertibles outperformed both equities and bonds in the quarter
returning 4.8% aided by the large Japanese component of the index (i.e. 34%),
which was the best performing major market in the quarter.
We continue to focus our attention on companies that are benefiting from
globalization trends and that are trading at discounts to their intrinsic values
and growth rates. We favor companies that are affected by catalysts, such as
industry consolidation and restructuring. As regulatory barriers diminish, we
believe competitive pressures will amplify the impact of these events and lead
to attractive returns for global convertible investors.
<PAGE>
INVESTMENT RESULTS (a)
- --------------------------------------------------------------------------------
Quarter
-------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
1999: Net Asset Value ... $10.89 -- -- -- --
Total Return ...... 7.6% -- -- -- --
- --------------------------------------------------------------------------------
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%
- --------------------------------------------------------------------------------
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, 1999 (a)
-------------------------------------------
1 Year........................ 5.2%
5 Year........................ 6.8%
Life of Fund (b).............. 7.3%
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
Investment Performance
For the first quarter ended March 31, 1999, The Gabelli Global Convertible
Securities Fund's (the "Fund") total return was 7.6%. The UBS Global Convertible
Index, Merrill Lynch Global Bond Index and Morgan Stanley Capital International
World Free Index of global equity markets had returns of 4.8%, (2.6)% and 4.0%,
respectively, over the same period. Each index is an unmanaged indicator of
investment performance. The Fund was up 5.2% over the trailing twelve-month
period. The UBS Global Convertible Index, Merrill Lynch Global Bond Index and
Morgan Stanley World Free Index rose 13.9%, 8.6% and 11.4%, respectively, over
the same twelve-month period.
2
<PAGE>
For the five-year period ended March 31, 1999, the Fund's total return
averaged 6.8% annually versus average annual total returns of 8.7%, 7.3% and
15.6% for the UBS Global Convertible Index, Merrill Lynch Global Bond Index and
Morgan Stanley World Free Index, respectively. Since inception on February 3,
1994 through March 31, 1999, the Fund had a cumulative total return of 44.1%,
which equates to an average annual return of 7.3%.
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 commodi ties, it is the
increase in industrial demand.
Global Allocation
The accompanying chart represents the Fund's holdings by geographic region
as of March 31, 1999. The geographic allocation will change based on current
global market con ditions. 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 - 3/31/99
[The following data was depicted as a pie chart in the printed material.]
Europe 40.5%
Japan 17.4%
Asia/Pacific Rim 4.1%
South Africa 0.3%
United States 37.7%
3
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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.
COMMENTARY
Of the major markets, Japan was the best performer over the quarter
gaining 18% in local currency. In February, the Bank of Japan announced a new
plan to stimulate the economy followed by the approval of a domestic bank
bailout package in March. In addition, several major Japanese companies such as
Sony announced restructuring plans. The Fund, which increased its weighting in
Japan from 9% to 19% during the quarter, benefited from these developments.
Noteworthy investments included auto parts supplier Toyoda Gosei, software
developer Toyo Information Systems and publisher/Internet investor Softbank
Corp.
Overall, stocks in "Euroland" underperformed for the quarter. Sluggish
economic growth and a reluctance to reduce interest rates in the face of a
weakening euro dampened returns. Germany and Spain were the worst performing
markets due to the fallout from Brazil's January devaluation, which hurt
companies with substantial investments in the region. Bucking this trend was
German cellular provider Mannesmann, which indirectly benefited from Olivetti's
hostile bid for Telecom Italia. The U.K. market outperformed Europe as base
rates were cut. The Fund's holdings in British communications-related companies
NTL and Cable & Wireless Communications were substantial gainers.
4
<PAGE>
In North America, the first quarter of 1999 was turbulent. January's gains
eroded in February as a stronger than expected U.S. economy sparked inflationary
concerns. Bonds declined, ultimately dragging stocks down too. Then in March, a
favorable employment report and positive comments on inflation from Federal
Reserve Chairman Greenspan encouraged investors and stocks and bonds rallied.
Large cap stocks continued to outpace small cap stocks as reflected in the
returns of the Standard & Poor's 500 (up 5.0%) versus the Russell 2000 (down
5.4%). We remain focused on values and individual investment opportunities that
arise when catalysts, such as mergers and acquisitions, are present. Canadian
holding Rogers Communications benefited from a revised rating due to merger
related activity in the U.S. cable (MediaOne Group) and wireless (AirTouch
Communications) industries, where the Fund has substantial holdings. Finally,
higher oil prices, sparked by the announcement of OPEC production cuts, lead to
a rally in oil service stocks such as Weatherford International which gained 35%
in the quarter.
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
March 31, 1999.
Amcor Ltd. (AMCRP - $48.00 - Nasdaq) is an Australian-based integrated packaging
and paper manufacturing company. Packaging products, which account for 75% of
sales, include aluminum cans, plastic containers and corrugated boxes. Paper
products include printing and writing paper and personal care products. The
company is reducing costs, selling non-core assets, and reducing capital
expenditures in an effort to improve profitability. These efforts are paying off
as the company reported its first double digit profit growth in four years in
the first half of fiscal year 1999.
Amcor's 7.25% mandatory convertible preferred is rated BBB and yields 7.6%
on a 10% premium.
Bell Atlantic Financial Services (4.25%, 09/15/05) issued a $3.18 billion
convertible bond in April 1998 exchangeable into Bell Atlantic's holdings in
Cable & Wireless Communications at a price of STG 7.09. With the stock at STG
7.00, the A+ rated bonds trade at 109.00 on an 11% premium and 3.8% yield to its
premium redemption price of 108.00 in September 2005.
Cable & Wireless Communications plc is an integrated telecommunications
company operating throughout the U.K. CWC was formed in April 1997 by the merger
of Mercury Communications, a national and international long distance provider
in the U.K., and NYNEX CableComms, Bell Cablemedia
5
<PAGE>
and Videotron, each significant U.K. cable television operators. In 1998, 92% of
revenues came from telecommunications services with the balance from cable. The
major shareholder of CWC is Cable & Wireless plc, a global telecom company, with
a 53% stake. Bell Atlantic of the U.S. holds an 18.5% interest.
Mediobanca International SpA (1.50%, 12/18/01) issued a guaranteed exchangeable
bond into UniCredito that provides attractive exposure to the on-going
consolidation and value creation in the Italian financial sector. At a price of
112.00, the bond has a balanced profile with a 22% conversion premium and a 25%
investment premium to its bond floor.
UniCredito Italiano SpA is Italy's third largest bank offering investment
banking, money management and financial services through its nationwide branch
network. The bank is offering $14.8 billion in an all stock bid for Italy's
fourth largest bank, Banca Commerciale Italiana ("BCI"). If the bid succeeds,
the new group would command a leading market share position in Italy: 20% in
asset management, 17% of direct customer deposits, 18% of customer loans and 15%
of total branches. The group would be well positioned to benefit from Italy's
growing equity culture. Italian mutual fund flows increased 72% year over year
in the first quarter of 1999.
Rogers Communications (2.00%, 11/26/05), based in Canada, provides cellular and
digital personal communications services ("PCS") through its 81%-owned
subsidiary Rogers Cantel. The company also offers cable television services and
operates radio broadcasting and publishing businesses. The frenzy to consolidate
cable companies in the U.S. surfaces the value in Rogers' shares. AT&T's overbid
for MediaOne is reportedly valued at $4,600 per cable subscriber. Meanwhile,
Rogers is currently valued at only $1,297 per subscriber. Rogers already has a
number of alliances with AT&T, and we believe it is only a matter of time before
AT&T (or someone else) narrows this valuation gap.
Rogers' 2.00% U.S. dollar denominated convertible bond due in November
2005 offers an attractive way to be "paid to wait" as the Rogers story unfolds.
The BB- rated bond trades on a 17% premium and provides a 2.6% yield advantage
over the common stock.
Softbank Corp. (0.50%, 03/29/02) is Japan's number one software distributor
holding franchises for Microsoft, Novell, and Oracle products. The company also
owns Kingston Technology, the number one memory module maker in the world.
Softbank's 71%-ownership of Ziff-Davis, the second largest magazine publisher in
the U.S., and its 11% stake in Japan Digital Broadcasting illustrates its media
interests. ZD COMDEX and Forums, a division of Ziff-Davis, produce
computer-related trade shows. Softbank has direct or indirect investments in
over 60 Internet-related companies including Yahoo!
6
<PAGE>
(28%), GeoCities (22%), and E*Trade Group (27%). With the deregulation of the
financial services sector, the company is now poised to develop its Web-based
businesses in Japan.
Softbank's 0.50% yen denominated convertible bonds due in March 2002 trade
as a pure equity surrogate at a price of 163.00.
Swiss Life Finance (1.50%, 05/20/03) issued a dollar denominated bond
exchangeable into Mannesmann common stock at a price of DM 197.50 (i.e. Euro
99.60) in April 1998. With the stock at Euro 117.65, the bonds trade at 130.25
on a 12% premium offering attractive upside potential to the common stock.
Mannesmann AG has four main businesses: telecommunications, automotive
components, engineering and steel. Although telecommunications services
represent only 20% of revenues, they account for approximately 60% of profits.
Mannesmann's Mobilfunk is the number one mobile telephone operator in Germany
with a 45% market share. The company's fixed line subsidiary, Arcor, is the
leading competitor challenging incumbent Deutsche Telekom. With holdings in
Italy, France and Austria, Mannesmann is poised to be a major force in European
telecommunications.
Weatherford International Inc. (WFT - $32.00 - NYSE), based in Houston, provides
products and services for the oil and gas industry. Its Grant Prideco unit is a
leading maker of drilling tools, pipe, connectors and tubular products. The
company has a strong balance sheet and generates positive cash flow. At the end
of 1998, Weatherford had a debt to equity ratio of 56% and an interest coverage
ratio of 5.3 times. With $461 million in EBITDA, the company is well positioned
to fund its aggressive acquisition program that aims to take advantage of the
severe down cycle in the oil services sector to fill in its product gaps and
prepare for the next upswing in oil prices.
The Weatherford 5.00% convertible trust preferred due in 2027 is a fine
example of a busted convertible. Issued at $50, the preferred now trades at $30
generating a current yield of 8.4% on an 85% premium. The BBB rated security
enjoys hard call protection until November 2000.
Toyoda Gosei Co. Ltd. (Sub. Deb. Cv. 0.75%, 03/31/04) manufactures resin and
rubber parts and is a leading provider of light-emitting diodes ("LED"). The
company generates about 70% of its sales from Toyota, which in turn owns 43% of
the firm. Toyoda Gosei expects to benefit next year from Toyota's increased auto
production in the U.S. and Canada. However, the company's main earnings driver
in the years ahead will come from its LED business. Toyoda Gosei is one of only
two companies which sells blue LEDs, which now make full color display possible
for use in traffic lights, railroad signals, printers and scanners. Sales are
expected to increase from nil to 10% of sales by March 2003 (i.e. 30 billion
yen).
7
<PAGE>
Toyoda Gosei's 0.75% yen denominated convertible bond due in March 2004 is
rated A by Japan's Mikuni rating service. At a price of 112.00, the bond trades
on an 8% premium and should enjoy good upside participation with the stock.
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.
Proposal to Shareholders
The Fund's Board of Directors has asked shareholders to consider a
proposal to amend the Fund's Articles of Incorporation to permit the Fund to
offer additional classes of shares. We believe that this proposal would benefit
the shareholders, and we urge you to give the proposal your careful
consideration.
For existing shareholders we intend to remain a no-load fund. At the same
time, mutual fund distributors are increasingly employing a variety of different
types and combinations of sales charge arrangements for different classes of
shares that are targeted to the needs of particular types of investors. Your
Board of Directors believes that the Fund should be able to provide the
distribution alternatives and investment flexibility provided by other similarly
situated funds that offer multiple classes of shares. We believe that approval
of the proposal to permit the Fund to offer additional classes of shares will
enhance the potential for the Fund to attract additional investors in a manner
that could provide additional benefits for all investors in the Fund. Again, to
repeat, approval of this proposal will not diminish the ability of existing and
future shareholders to purchase and redeem shares at net asset value.
Internet
You can now visit us on the Internet. Our home page at
http://www.gabelli.com contains information about Gabelli Asset Management 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].
8
<PAGE>
In Conclusion
Looking forward, we believe the pillars of the equity bull market remain
intact. Interest rates are low. Inflation is under control. Demographics favor
continued strong flows into financial assets. Consumer confidence is high.
Earnings growth continues in the high single digits and merger and acquisition
activity remains robust. Nevertheless, volatility will continue to be a feature
of the new global economy. We believe global convertible securities offer an
attractive way to build wealth in such an environment. We promise to do our
utmost in selecting the world's best opportunities for your portfolio and thank
you for your confidence in our investment approach.
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/ Hart Woodson
A. Hartswell Woodson, III
Portfolio Manager
April 30, 1999
- --------------------------------------------------------------------------------
Top Ten Holdings
March 31, 1999
--------------
International CableTel Inc. Home Depot Inc.
Canal Plus/Mediaset Finaxa
MediaOne Group Inc. Toyo Information Systems
Houston Industries Inc./Time Warner CSC Holdings Inc.
Softbank Corp. Yamanouchi Pharmaceutical
- --------------------------------------------------------------------------------
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.
9
<PAGE>
The Gabelli Global Convertible Securities Fund
Portfolio of Investments -- March 31, 1999 (Unaudited)
================================================================================
Principal Market
Amount Value
------ -----
CORPORATE BONDS - 71.0%
Automotive: Parts and Accessories - 2.5%
20,000,000(b) Toyoda Gosei Co. Ltd. Sub. Deb. Cv.
0.75%, 03/31/04 ................................... $ 181,880
----------
Broadcasting - 5.9%
1,000,000(c) Canal Plus / Mediaset Sub. Deb. Cv.
3.50%, 04/01/02 .................................. 319,700
$ 100,000 Scandinavian Broadcasting
System SA Sub. Deb. Cv.
7.00%, 12/01/04 .................................. 113,000
----------
432,700
----------
Building and Construction - 1.5%
91,840 Bouygues SA Cv.
1.70%, 01/01/06 .................................. 111,011
----------
Business Services - 2.0%
131,976 Vivendi Cv.
1.25%, 01/01/04 .................................. 142,666
----------
Cable - 5.9%
100,000 Bell Atlantic Financial Cv.
4.25%, 09/15/05 .................................. 109,750
150,000 International CableTel Inc. Sub. Deb. Cv.
7.00%, 06/15/08 .................................. 322,500
----------
432,250
----------
Communications Equipment - 1.8%
100,000 Swiss Life / Mannesmann AG Sub. Deb. Cv.
1.50%, 05/20/03 .................................. 130,750
----------
Computer Software and Services - 9.8%
150,000 Amazon.com Inc. Sub. Deb. Cv.
4.75%, 02/01/09 (a) .............................. 188,813
20,000,000(b) Softbank Corp. Cv.
0.50%, 03/29/02 .................................. 275,268
20,000,000(b) Toyo Information Systems Co. Ltd. Cv.
0.40%, 03/31/04 .................................. 253,314
----------
717,395
----------
Consumer Products - 4.3%
150,000 Central Garden and Pet Co.
Sub. Deb. Cv.
6.00%, 11/15/03 (a) .............................. 135,375
150,000 Nestle Holdings Inc. Cv.
3.00%, 06/17/02 .................................. 182,250
----------
317,625
----------
Electronics - 2.2%
15,000,000(b) Toshiba Corp. Cv.
1.80%, 03/29/02 .................................. 163,134
----------
Energy and Utilities - 2.6%
100,000 National Grid Co. plc Cv.
4.25%, 02/17/08 (a) .............................. 193,514
----------
Equipment and Supplies - 1.5%
100,000 Antec Corp. Sub. Deb. Cv.
4.50%, 05/15/03 .................................. 110,500
----------
Financial Services - 12.2%
225,044,000(d) Banca Popolare di Lodi
Sub. Deb. Cv.
4.38%, 07/01/03 .................................. 146,178
150,000 Cregem Finance NV
Sub. Deb. Cv.
2.75%, 01/06/04 .................................. 170,250
990,000 Finaxa Sub. Deb. Cv.
3.00%, 01/01/07 .................................. 255,286
200,000,000(d) Mediobanca International SpA Cv.
Zero Cpn., 12/18/01 .............................. 125,172
150,000 UBS Finance NV Cv.
2.75%, 06/16/02 .................................. 186,375
----------
883,261
----------
Health Care - 4.6%
200,000 Roche Holding Ltd. Cv.
Zero Cpn., 04/20/10 (a) .......................... 123,000
20,000,000(b) Yamanouchi Pharmaceutical Co. Ltd. Cv.
1.50%, 12/31/02 .................................. 210,251
----------
333,251
----------
Publishing - 2.3%
250,000 Medya Holding Sub. Deb. Cv.
10.00%, 06/28/01 ................................. 168,750
----------
Retail - 5.5%
100,000 Home Depot Inc. Sub. Deb. Cv.
3.25%, 10/01/01 .................................. 270,250
200,000 Koninklijke Ahold NV Cv.
3.00%, 09/03/01 .................................. 128,156
----------
398,406
----------
Telecommunications - 4.0%
130,000 France Telecom SA Cv.
2.00%, 01/01/04 .................................. 113,321
250,000 Rogers Communications Inc. Cv.
2.00%, 11/26/05 .................................. 180,937
----------
294,258
----------
Transportation - 2.4%
207,000 International Container Terminal Services
Sub. Deb. Cv.
1.75%, 03/13/04 .................................. 176,468
----------
TOTAL CORPORATE BONDS .............................. 5,187,819
----------
Shares
------
PREFERRED STOCKS - 24.5%
Business Services - 1.9%
4,800 Cendant Corp.
7.50% Cv. Pfd .................................... 138,300
----------
Cable - 11.7%
2,200 CSC Holdings Inc.
8.50% Cv. Pfd., Ser. I ........................... 245,300
10
<PAGE>
The Gabelli Global Convertible Securities Fund
Portfolio of Investments (Continued) -- March 31, 1999 (Unaudited)
================================================================================
Market
Shares Value
------ -----
PREFERRED STOCKS (Continued)
Cable (Continued)
2,500 Houston Industries Inc./Time Warner Inc.
7.00% Cv. Pfd. ................................... $ 301,250
2,400 MediaOne Group Inc.
4.50% Cv. Pfd. ................................... 308,550
----------
855,100
----------
Consumer Products - 1.2%
1,000 McKesson Financial Trust Pfd. ...................... 91,313
----------
Energy and Utilities - 1.9%
EVI Inc.
300 5.00% Cv. Pfd. ................................... 9,600
4,000 5.00% Cv. Pfd. (a) ............................... 128,000
----------
137,600
----------
Financial Services - 2.1%
1,400 Banco Comercial Portugues SA
8.00% Cv. Pfd. ................................... 156,800
----------
Paper and Forest Products - 1.3%
2,000 Amcor Ltd.
7.25% Cv. Pfd. ................................... 96,000
----------
Wireless Communications - 4.4%
1,000 AirTouch Communications Inc.
4.25% Cv. Pfd., Cl. C ............................ 134,500
4,000 Winstar Communications Inc.
7.00% Cv. Pfd. ................................... 183,760
----------
318,260
----------
TOTAL PREFERRED STOCKS ............................. 1,793,373
----------
COMMON STOCKS - 4.2%
Computer Software and Services - 0.7%
500 Oracle Corp. Japan ................................. 54,040
----------
Financial Services - 2.8%
2,500 Banca Popolare di Brescia .......................... 77,190
9,000 Sumitomo Bank Ltd. ................................. 121,820
----------
199,010
----------
Metals and Mining - 0.3%
10,000 Durban Roodepoort Deep Ltd.+ ....................... 21,180
----------
Wireless Communications - 0.4%
13,000 Total Access Communications plc+ ................... 28,080
102 Winstar Communications Inc.+ ....................... 3,707
----------
31,787
----------
TOTAL COMMON STOCKS ................................ 306,017
----------
WARRANTS - 0.1%
Diversified Industrial - 0.1%
100 Mori Seiki+ ........................................ 6,250
----------
Entertainment - 0.0%
50 Shochiku Co. Ltd.+ ................................. 1,275
----------
TOTAL WARRANTS ..................................... 7,525
----------
OPTIONS - 0.1%
Metals and Mining - 0.1%
5,000 Durban Roodepoort Deep Ltd.,
Call, 12/31/99+ .................................. 1,778
10,000 Durban Roodepoort Deep Ltd.,
Ser. B, Call, 06/30/02+ .......................... 2,749
----------
TOTAL OPTIONS ...................................... 4,527
----------
TOTAL INVESTMENTS - 99.9%
(Cost $6,406,109) ................................ 7,299,261
Other Assets and
Liabilities (Net) - 0.1% ......................... 7,957
----------
NET ASSETS - 100.0%
(670,867 shares outstanding) ..................... $7,307,218
==========
NET ASSET VALUE,
Offering and Redemption
Price Per Share ............................... $10.89
==========
- -----------
Net Unrealized
Settlement Appreciation/
Date (Depreciation)
---- --------------
FORWARD FOREIGN EXCHANGE CONTRACTS
312,305 (e) Sell British Pounds
in exchange for
USD 500,000 ..................... 08/16/99 $(3,151)
904,429 (f) Sell Euros
in exchange for
USD 1,000,000 ................... 05/24/99 21,203
684,374 (f) Deliver Euros
in exchange for
USD 734,970 ..................... 04/30/99 4,390
- -------------
(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, 1999, the market value of Rule 144A securities amounted to $768,702 or
10.5% of net assets.
(b) Principal amount denoted in Japanese Yen.
(c) Principal amount denoted in French Francs.
(d) Principal amount denoted in Italian Lira.
(e) Principal amount denoted in British Pounds.
(f) Principal amount denoted in Euros.
+ Non income producing security.
USD - U.S. Dollars.
% of
Market Market
Global Diversification Value Value
- ---------------------- ----- -----
Europe 40.5% $2,953,120
North America 37.7% 2,752,655
Japan 17.4% 1,267,231
Asia/Pacific Rim 4.1% 300,548
South Africa 0.3% 25,707
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100.0% $7,299,261
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11
<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, Karl Otto Pohl
CFA Chairman and Chief Former President
Investment Officer Deutsche Bundesbank
Gabelli Asset Management Inc.
Felix J. Christiana Werner J. Roeder, MD
Former Senior Vice President Director of Surgery
Dollar Dry Dock Savings Bank Lawrence Hospital
Anthony J. Colavita Anthonie C. van Ekris
Attorney-at-Law Managing DIrector
Anthony J. Colavita, P.C. BALMAC International, Inc.
John D. Gabelli
Senior Vice President
Gabelli & Company, Inc.
Officers and Portfolio Managers
Mario J. Gabelli, CFA A. Hartswell Woodson, III
President and Chief Vice President and
Investment Officer Portfolio Manager
Bruce N. Alpert James E. McKee
Vice President and Secretary
Treasurer
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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