[PHOTO OMITTED]
Global
Entertainment
Media
Gabelli
Global Interactive
Couch Potato(R) Fund
FIRST QUARTER REPORT
MARCH 31, 1999
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[GRAPHIC OMITTED]
Global
Entertainment [PHOTO OMITTED]
Media Marc J. Gabelli
First Quarter Report - March 31, 1999
The Gabelli Global Interactive Couch Potato(R) Fund
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* * * * *
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Mornigstar Rating(TM) of The Gabelli Global
Interactive Couch Potato(R) Fund was 5 stars
overall and for the three and five-year
periods ended 3/31/99 among 2947 and 1810
domestic equity funds, respectively.
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#1 Global Fund!
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Ranked #1 by Lipper Inc. for the three
and five-year periods ended 3/31/99 among
149 and 83 global funds, respectively.
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To Our Shareholders,
In the first quarter of 1999, telecommunications and media companies were
global stock market leaders. While higher interest rates in the U.S. and
diminished growth expectations in Europe restrained returns in many equity
sectors, the telecommunications and media groups continued to be powered by
deregulation, new and improving technologies, and consolidation.
Investment Performance
For the first quarter ended March 31, 1999, The Gabelli Global Interactive
Couch Potato Fund's (the "Fund") total return was 19.7%. The Lipper Global Fund
Average and Morgan Stanley Capital International World Free Index of global
equity markets had total returns of 2.8% and 4.0%, respectively, over the same
period. The Lipper average and Morgan Stanley World Free index are unmanaged
indicators of investment and stock market performance. The Fund was up 33.9%
over the trailing twelve-month period. The Lipper Global Fund Average and Morgan
Stanley World Free Index rose 3.4% and 11.4%, respectively, over the same
twelve-month period.
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Past performance is no guarantee of future results. Morningstar proprietary
ratings reflect historical risk adjusted performance as of March 31, 1999 and
are subject to change every month. Morningstar ratings are calculated from a
Fund's three, five and ten-year average annual returns in excess of 90-day
T-Bill returns with appropriate fee adjustments and a risk factor that reflects
fund performance below 90-day T-Bill returns. The top 10% of the funds in a
broad asset class receive five stars, the next 22.5% receive four stars, the
next 35% receive three stars, the next 22.5% receive two stars and the bottom
10% receive one star. Lipper Inc. ranked The Gabelli Global Interactive Couch
Potato(R) Fund 7 among 229 global funds for the one year period ended March 31,
1999. Lipper rankings are based upon one, three and five-year total returns at
NAV.
<PAGE>
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Interactive Couch Potato(R)
Interactive (in' ter ak' tiv) Having the capacity for communication flow
in each direction.*
Couch (kouch) An appellation for the heavy user of
television, depicted in the metaphor as
Potato (po ta' to) plopped before the television set like a
vegetable with eyes. The term was coined in
(pe ta' to) the early 1980s by a group of Baby Boomers
in the San Francisco area who playfully
glorified their addiction to the tube.
Calling themselves The Couch Potatoes, they
formed a national club and published a
hilarious newsletter in the couch potato
lifestyle containing bizarre recipes for
that vital companion to the TV set, the
toaster oven. After a burst of enlistments,
the club quietly disappeared. All that
remains today is the metaphor, and its
current use tends to be more pejorative than
self-mocking or affectionate.*
* Source: NTC Mass Media Directory.
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INVESTMENT RESULTS (a)
<TABLE>
<CAPTION>
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Quarter
---------------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
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<S> <C> <C> <C> <C> <C>
1999: Net Asset Value .............. $20.33 -- -- -- --
Total Return ................. 19.7% -- -- -- --
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1998: Net Asset Value .............. $16.45 $17.39 $ 15.17 $16.99 $16.99
Total Return ................. 15.2% 5.7% (12.8)% 21.4% 28.9%
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1997: Net Asset Value .............. $11.79 $13.72 $ 15.02 $14.28 $14.28
Total Return ................. 0.3% 16.4% 9.5% 10.9% 41.7%
- -----------------------------------------------------------------------------------------------------
1996: Net Asset Value .............. $12.57 $13.40 $ 13.22 $11.75 $11.75
Total Return ................. 7.3% 6.6% (1.3)% (0.3)% 12.5%
- -----------------------------------------------------------------------------------------------------
1995: Net Asset Value .............. $10.62 $11.28 $ 12.30 $11.72 $11.72
Total Return ................. 3.6% 6.2% 9.0% (1.8)% 17.9%
- -----------------------------------------------------------------------------------------------------
1994: Net Asset Value .............. $ 9.90 $ 9.97 $ 10.54 $10.25 $10.25
Total Return ................. (1.0)%(b) 0.7% 5.7% (2.8)% 2.5%(b)
- -----------------------------------------------------------------------------------------------------
</TABLE>
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Average Annual Returns - March 31, 1999 (a)
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1 Year......................... 33.9%
5 Year......................... 24.6%
Life of Fund (b)............... 23.6%
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Dividend History
- ----------------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
- ----------------- -------------- ------------------
December 28, 1998 $1.385 $16.56
December 31, 1997 $2.370 $14.28
December 31, 1996 $1.436 $11.75
December 29, 1995 $0.363 $11.72
(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 7,
1994. Note: Investing in foreign securities involves risks not ordinarily
associated with investments in domestic issues, including currency fluctuation,
economic and political risks.
- --------------------------------------------------------------------------------
2
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For the five-year period ended March 31, 1999, the Fund's total return
averaged 24.6% annually versus average annual total returns of 12.9% and 15.6%
for the Lipper Global Fund Average and Morgan Stanley World Free Index,
respectively. Since inception on February 7, 1994 through March 31, 1999, the
Fund had a cumulative total return of 197.2%, which equates to an average annual
total return of 23.6%.
Global Allocation
The accompanying chart presents the Fund's holdings by geographic region
as of March 31, 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.
Portfolio Structure
As we have indicated in past discussions, the Interactive Couch
Potato's(R) investment premise falls within the context of two main investment
universes: 1) companies involved in creativity, as it relates to the
development of intellectual property rights (copyrights); and 2) companies
involved in distribution, as it relates to the delivery of these copyrights.
Additionally, this includes the broad scope of communications-related services
such as basic voice and data.
The accompanying chart depicts our equity mix of the copyright/creativity
and distribution companies in our portfolio as of March 31, 1999.
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIALS.]
HOLDINGS BY GEOGRAPHIC REGION - 3/31/99
United States 52.6%
Europe 25.8%
Canada 10.1%
Japan 6.0%
Cash 3.4%
Asia/Pacific Rim 2.1%
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIALS.]
PORTFOLIO STRUCTURE - 3/31/99
Distributions 63.8%
Copyright/Creativity 36.2%
3
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COMMENTARY
Telecommunications and media stocks shrugged off higher U.S. interest
rates and a disappointing European economy on their way to posting another
strong quarter. Secular trends in the industry are proving more powerful than
macroeconomic and market forces here in the U.S. and overseas. We expect this to
continue as deregulation, technology and accelerating takeover activity alters
the telecommunications and media landscape.
AT&T's recent agreement with Time Warner is perhaps the best illustration
of how the convergence of the computer, telephone and television is driving
values. AT&T has agreed to pay Time Warner $1.50 per cable subscriber per month
for exclusive access to its cable network this year. Over the next five years,
this price escalates to $6.00 per cable subscriber per month. Why is access to
Time Warner's cable infrastructure so valuable to AT&T? Because, combined with
AT&T's existing cable properties (the former Tele-Communications Inc.'s
network), the Time Warner cable systems would allow AT&T to sell local and long
distance telephony, Internet access and home entertainment services to almost
two-thirds of America's homes.
On paper, this adds $12 billion of economic value to Time Warner's cable
television business five years hence! This agreement has tremendous implications
for cable holdings such as Cablevision Systems and Comcast, which despite the
strong gains of recent years, may be dirt cheap at today's prices. We are not
suggesting that AT&T will strike similar deals with these companies. The
regulators may have some objections to the AT&T/Time Warner agreement, and most
likely would not look favorably on AT&T monopolizing America's cable
infrastructure.
But, AT&T is not the only company hoping to offer more services to more
customers. Virtually every major player in the telecommunications industry
worldwide is looking for a way to offer a full menu of telephony, Internet and
entertainment services to more people, whether it be through cable television
lines, wireless systems or via technologically enhanced telephone wires. This is
the gold rush of the next millennium and it has already started as we prepare to
exit this millennium. What does this mean for creativity and content providers?
It means a rapidly expanding global audience. Almost everyone from e-commerce
retailers, to television or movie producers, to newspaper and magazine
publishers will benefit from the ability to easily reach into more people's
wallets worldwide.
International telephone companies have not advanced toward their cable
television colleagues yet, but they may begin following AT&T's lead.
International telephone companies appear to be focusing on global alliances. We
are hearing whispers that British Telecom and AT&T are considering investments
in Japan Telecom. We think this kind of activity--the global extension of
dominant telephone franchises--should continue to drive values in the
telecommunications industry.
4
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Three Cs and a T Add Up to Grade A Performance
Our "three Cs" -- Cable television ("CATV"), Cable networks and Cellular
telephone franchises--were on the performance honor roll this quarter. CATV
stocks, including purer plays such as Cablevision Systems and Comcast, and cable
loaded conglomerates, such as Rogers Communications and Time Warner, posted
solid gains this quarter. Comcast's initial bid and AT&T's subsequent trumping
bid for portfolio holding MediaOne Group ratcheted up cable subscriber values to
approximately $4,000 per subscriber--up from roughly $2,500 per subscriber one
year ago. With the aforementioned AT&T/Time Warner agreement demonstrating the
strong demand for cable access, cable television company values may continue to
escalate. Investors gave high marks to cable network companies Liberty Media
Group (now a tracking stock of AT&T), Viacom and USA Networks. Cellular
telephone operators AirTouch Communications, which was acquired by Vodafone,
Western Wireless and Cellular Communications of Puerto Rico also connected. T is
for telephone, which stands for Telephone & Data Systems, Japan Telecom, Telecom
Italia, (being pursued by Olivetti and Deutsche Telekom), and Frontier Corp.
(the former Rochester Telephone, which has received a bid from Bermuda-based
Global Crossing), and rhymes with P for profits this quarter.
Newspaper publishers United News & Media, United Newspapers plc, and
NewsCorp delivered gains this quarter, but Tribune, Independent Newspapers,
Central Newspapers and Scripps Howard were left at the curb. Group broadcasters
Young Broadcasting and Ackerley were flat while Paxson Communications and
Sinclair Broadcast Group suffered what we believe will be temporary technical
difficulties.
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 believe will develop over
time. The share prices of foreign holdings are stated in U.S. dollar equivalent
terms as of March 31, 1999.
AirTouch Communications Inc. (ATI - $96.625 - NYSE), based in San Francisco, is
the world's largest wireless communications provider. With more than 35 million
total venture customers in 13 countries, AirTouch and its partners serve more
than ten percent of the world's wireless subscribers. AirTouch will offer
satellite communications in the future through its interest in the Globalstar
satellite system. In April 1998, the company acquired MediaOne Group's (formerly
US West Media Group) U.S. wireless interests in a deal valued at almost $6
billion. On January 15, 1999, Britain's largest cellular company, Vodafone Group
plc (VOD - $187.75 - NYSE), signed a definitive merger agreement with ATI
whereby Vodafone would acquire ATI for $97 per ATI share. Vodafone successfully
topped Bell Atlantic's (BEL - $51.6875 - NYSE) $45 billion bid for AirTouch.
5
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Cablevision Systems Corp. (CVC - $74.125 - AMEX) is one of the nation's leading
communications and entertainment companies, with a portfolio of operations that
span state-of-the-art, high-speed multimedia delivery, subscription cable
television services, championship professional sports teams and national cable
television networks. Headquartered in Bethpage, NY, Cablevision serves more than
3.4 million cable customers primarily in three core markets: New York, Boston
and Cleveland. Cablevision is a leader in delivering cutting-edge technological
innovation, such as Optimum TV, to the home. Through its Rainbow Media Holdings
subsidiary, Cablevision manages and develops internationally recognized content
offerings such as the popular national television networks American Movie
Classics, Bravo and The Independent Film Channel. Cablevision has a controlling
interest in New York City's famed Madison Square Garden which includes the arena
complex, the NY Knicks, the NY Rangers and the MSG network. Cablevision operates
Radio City Entertainment and holds a long term lease for Radio City Music Hall,
home of the world famous Radio City Rockettes.
Canal + (CNLP.PA - $293.11 - Paris Stock Exchange) is Europe's leading pay
television company operating throughout Europe with the exception of the U.K.,
Ireland and Germany. Canal + provides premium channels as well as film and
television programming. The company has expanded its businesses to include
digital television service and is a majority owner in Numericable, one of
France's top three cable operators, and Paris St. Germain, the top French soccer
club.
Frontier Corp. (FRO - $51.875 - NYSE) is a telecommunications provider operating
various business segments: the nation's fifth largest long distance company, a
local telephone provider in and around Rochester, NY with one million lines, a
CLEC with over 200,000 lines, a nationwide network leased long term from Qwest
and a high-end web hosting business. Frontier has announced plans to merge with
Global Crossing (GBLX - $46.25 -Nasdaq) in a stock for stock transaction for $62
per Frontier share if GBLX trades between $34.56 and $56.78 before the
transaction is completed. Hamilton, Bermuda-based GBLX also will take on $1.3
billion in FRO debt. The acquisition of FRO is the latest step by GBLX toward
becoming a worldwide phone company.
General Instrument Corp. (GIC - $30.3125 - NYSE) is a worldwide provider of
integrated and interactive broadband access solutions and is advancing the
convergence of the Internet, telecommunications and video entertainment
industries. GIC has approximately 60% of the set-top cable box market. The
company's new boxes will have high-speed modems that allow subscribers to surf
the web, get email, play games, order videos and make telephone calls.
Liberty Media Group (LMG'A - $52.625 - NYSE) is engaged in businesses which
provide programming services, including production, acquisition and distribution
through all available media formats, and businesses engaged in electronic
retailing, direct marketing and other services. LMG holds interests in globally
branded entertainment networks such as Discovery Channel, USA, QVC, Encore and
STARZ!. Liberty's assets also include interests in international video
distribution businesses; international telephony and domestic wireless; plant
and equipment manufacturers; and other businesses related to broadband services.
Liberty Media Group Class A and Class B common stock are tracking stocks of AT&T
Corp. (T - $79.8125 - NYSE) and are now traded on the New York Stock Exchange.
6
<PAGE>
Rogers Communications Inc. (RG - $18.125 - NYSE) provides cellular service and
digital personal communications services ("PCS") through its interest in Rogers
Cantel Mobile Communications. The company also offers cable television and video
services through Rogers Cablesystems and radio and television broadcasting,
publishing, and new media businesses through Rogers Multi-media. We believe the
company is likely to participate in the concentration of the North American
cable television industry.
Seagram Co. (VO - $50.00 - NYSE), with its 1995 purchase of an 80% interest in
MCA from Matsushita Electric Industrial Co. for $5.7 billion, operates two
global businesses: beverages and entertainment. Spirits and Wine group's major
beverage brands include Chivas Regal, Absolut, Martell, Mumm, Crown Royal and
Seagram's Gin. With its December acquisition of Polygram, Seagram has created
the world's leading music company, the Universal Music Group. Seagram's
entertainment business includes the Universal Motion Pictures Group, the
Universal Studios Recreation Group and a 46% interest in USA Networks (USAI -
$35.8125 - Nasdaq).
Telecom Italia SpA (TIT.MI - $10.62 - Milan Stock Exchange) is the principal
provider of domestic and international telecommunications services in Italy.
Telecom Italia is also the seventh largest fixed telecommunications operator as
well as the largest mobile operator in Europe through its 60% held subsidiary,
Telecom Italia Mobile. In addition, Telecom Italia also provides leased lines,
data communications services, satellite communications services and the
development and manufacture of telecommunications equipment and networks. The
company is currently the subject of a takeover battle between Deutsche Telekom
and Olivetti.
Telephone & Data Systems Inc. (TDS - $56.375 - AMEX) is a diversified
telecommunications company with established cellular and local telephone
operations and a developing personal communications services ("PCS") business.
TDS provides high quality telecommunications services to 3 million customers in
35 states. TDS owns 81.1% of United States Cellular Corp. (USM - $44.00 - AMEX),
the nation's seventh largest cellular telephone company. It also owns 82.4% of
Aerial Communications Inc. (AERL - $7.75 -Nasdaq), TDS's PCS subsidiary which
owns the licenses to provide PCS service in six major trading areas ("MTAs")
encompassing approximately 27.6 million population equivalents. On December 8,
1998, TDS announced its intent to spin-off its Aerial stake to existing TDS
shareholders on a tax-free basis and focus on its core wireline and cellular
operations. The transaction is expected to close by the end of the year.
USA Networks Inc. (USAI - $35.8125 - Nasdaq), through its subsidiaries, engages
in diversified media and electronic commerce businesses that include: electronic
retailing, ticketing operations and television broadcasting. Chairman and CEO
Barry Diller has brought together under one umbrella: the USA Network, the
Sci-Fi Channel, USA Networks Studios, USA Broadcasting, The Home Shopping
Network and the Ticketmaster Group. The plan is to integrate these assets,
leveraging programming, production capabilities and electronic commerce across
this strong distribution platform.
7
<PAGE>
Viacom Inc. (VIA'A - $83.3125 - AMEX; VIA'B - $83.9375 - AMEX), long a major
provider of entertainment "content", has evolved into one of the world's
dominant media companies. The addition of Paramount Communications, Blockbuster
Entertainment (acquired in 1994), along with publisher Simon & Schuster, makes
Viacom one of the largest entertainment and publishing companies. Non-core
assets are being divested and debt has been reduced to approximately $8 billion.
Viacom is focusing on global expansion of its media franchises. Viacom is
particularly well-positioned in music (notably MTV) and cable networks (such as
Nickelodeon).
Vivendi (EX.PA - $246.04 - Paris Stock Exchange) is France's largest
environmental services company engaged in water purification and distribution,
energy, waste management, construction and communications. The group owns 44% of
Cegetel, France's second largest telecommunications operator. Sales at Cegetel
rose 90% in 1998 to $3.4 billion following the company's launch of long distance
service and the boom in demand for mobile services. Only five percent of sales
are generated in emerging markets. With 159 million shares outstanding, the
company has an equity market capitalization of Euro 35 billion or $40 billion.
Western Wireless Corp. (WWCA - $36.25 - Nasdaq) provides wireless communications
services in the U.S. to over 1,000 customers through its ownership and operation
of cellular and personal communications services ("PCS") systems. Western
Wireless owns cellular licenses covering 7.7 million people primarily in rural
areas in the western U.S. The company's 80.1% -owned PCS subsidiary, VoiceStream
Wireless, has PCS licenses covering 63 million people primarily in urban
markets. In February, the company announced its intention to separate
VoiceStream from its cellular operations. Separation is expected to occur during
the second quarter of 1999.
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 Interactive Couch Potato(R) 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
8
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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].
In Conclusion
During the quarter, portfolio returns exceeded our expectations. We do not
expect such generous returns every quarter, but we remain confident that
selected telecommunications and media stocks should continue to be among the
market's leading long term performers.
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 GICPX. Please call us during the
business day for further information.
Sincerely,
/s/ Marc J. Gabelli /s/ Ivan Arteaga
Marc J. Gabelli Ivan Arteaga, CFA
Portfolio Manager Associate Portfolio Manager
April 30, 1999
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Top Ten Holdings
March 31, 1999
--------------
Liberty Media Group Cablevision Systems Corp.
Rogers Communications Inc. USA Networks Inc.
Vivendi General Instrument Corp.
Viacom Inc. Canal +
Seagram Co. Western Wireless Corp.
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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 Interactive Couch Potato(R) Fund
Portfolio of Investments -- March 31, 1999 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS - 97.3%
Broadcasting - 8.8%
55,000 Ackerley Group Inc. ................................. $ 931,563
40,000 Audiofina ........................................... 1,597,783
100,000 Flextech plc+ ....................................... 1,276,105
64,000 Granada Group plc ................................... 1,296,607
6,115 NRJ SA .............................................. 1,227,908
96,400 Paxson Communications Corp.+ ........................ 825,425
130,000 Tokyo Broadcasting System Inc. ...................... 1,652,030
27,500 Young Broadcasting Inc., Cl. A+ ..................... 1,254,688
-----------
10,062,109
-----------
Business Services - 4.9%
10,000 Berlitz International Inc.+ ......................... 226,250
22,000 Vivendi ............................................. 5,412,817
-----------
5,639,067
-----------
Cable - 7.6%
60,000 Cablevision Systems Corp., Cl. A+ ................... 4,447,500
45,000 Jones Intercable Inc., Cl. A+ ....................... 1,774,688
20,000 MediaOne Group Inc.+ ................................ 1,270,000
15,000 NTL Inc.+ ........................................... 1,220,625
-----------
8,712,813
-----------
Communications Equipment - 5.2%
100,000 General Instrument Corp.+ ........................... 3,031,250
12,500 Mannesmann AG ....................................... 1,596,434
50,000 Scientific-Atlanta Inc. ............................. 1,362,500
-----------
5,990,184
-----------
Computer Hardware - 1.4%
45,000 Apple Computer Inc.+ ................................ 1,617,188
-----------
Computer Software and Services - 1.7%
20,000 Oracle Corp.+ ....................................... 527,500
13,000 Softbank Corp. ...................................... 1,457,738
-----------
1,985,238
-----------
Entertainment - 12.6%
185,000 Liberty Media Group, Cl. A+ ......................... 9,735,625
280,000 Rank Group plc ...................................... 1,022,660
100,000 USA Networks Inc.+ .................................. 3,581,250
-----------
14,339,535
-----------
Entertainment Distribution - 0.5%
20,000 GC Companies Inc.+ .................................. 628,750
-----------
Global Entertainment - 13.8%
10,000 Canal Plus .......................................... 2,931,070
180,000 EMI Group plc ....................................... 1,287,970
100,000 Seagram Co. ......................................... 4,999,999
20,000 Time Warner Inc. .................................... 1,421,250
40,000 Viacom Inc., Cl. A+ ................................. 3,332,500
20,000 Viacom Inc., Cl. B+ ................................. 1,678,750
-----------
15,651,539
-----------
Publishing - 6.3%
63,500 Arnoldo Mondadori Editore SpA ....................... $ 949,467
200,000 Independent Newspapers Ltd. ......................... 906,850
75,000 Primedia Inc.+ ...................................... 1,050,000
40,000 Reader's Digest Association Inc., Cl. B ............. 1,100,000
95,000 Schibsted ASA ....................................... 1,130,845
20,000 Scripps (E.W.) Co. .................................. 885,000
125,000 United News & Media plc ............................. 1,190,547
-----------
7,212,709
-----------
Telecommunications - 23.6%
20,000 AT&T Corp. .......................................... 1,596,250
25,000 Bell Atlantic Corp. ................................. 1,292,188
40,000 Cable & Wireless plc, ADR ........................... 1,477,500
250,751 Citizens Utilities Co., Cl. B+ ...................... 1,943,320
230 DDI Corp. ........................................... 1,087,562
38,000 Frontier Corp. ...................................... 1,971,250
150,000 GST Telecommunications Inc.+ ........................ 1,640,625
115 Japan Telecom Co. Ltd. .............................. 1,650,764
7,500 MetroNet Communications Corp., Cl. B, Nasdaq+ ....... 412,500
19,100 MetroNet Communications Corp., Cl. B, Toronto+ ...... 1,051,087
25,000 Portugal Telecom SA ................................. 1,119,798
175,500 Rogers Communications Inc., Cl. B+ .................. 3,179,468
25,000 Telecom Italia SpA, ADR ............................. 2,609,374
48,000 Telefonica de Espana ................................ 2,036,008
2,525 Viag AG ............................................. 1,392,687
85,000 Viatel Inc.+ ........................................ 2,422,500
-----------
26,882,881
-----------
Wireless Communications - 10.9%
20,000 AirTouch Communications Inc.+ ....................... 1,932,500
70,200 Cellular Communications of Puerto Rico Inc.+ ........ 1,895,400
25 NTT Mobile Communication Network Inc. ............... 1,234,906
127,000 Rogers Cantel Mobile Communications Inc., Cl. B+ .... 2,293,938
45,000 Telephone & Data Systems Inc. ....................... 2,542,500
72,000 Western Wireless Corp., Cl. A+ ...................... 2,610,000
-----------
12,509,244
-----------
TOTAL COMMON STOCKS ................................. 111,231,257
-----------
PREFERRED STOCKS - 2.1%
Broadcasting - 0.4%
300,000 Village Roadshow Ltd., Pfd. ......................... 492,569
-----------
Publishing - 1.7%
500 Golden Books Family Entertainment Inc., 8.75% Cv. Pfd.+ 2,563
70,000 News Corp. Ltd., ADR Preference Shares .............. 1,925,000
-----------
1,927,563
-----------
TOTAL PREFERRED STOCKS .............................. 2,420,132
-----------
10
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The Gabelli Global Interactive Couch Potato(R) Fund
Portfolio of Investments -- March 31, 1999 (Unaudited)
================================================================================
Principal Market
Amount Value
------ -----
CORPORATE BONDS - 0.2%
Entertaiment - 0.2%
$50,000 Savoy Pictures Entertainment Inc., Sub. Deb. Cv.
7.00%, 07/01/03 ................................. 49,563
200,000 Viacom Inc. 8.00%, 07/07/06 ........................ 205,000
------------
TOTAL CORPORATE BONDS .............................. 254,563
------------
U.S. GOVERNMENT OBLIGATIONS - 3.5%
4,054,000 U.S. Treasury Bills, 4.42% to 4.78++,
due 04/22/99 to 06/17/99 ....................... 4,025,899
------------
TOTAL INVESTMENTS - 103.1% ....................... 117,931,851
(Cost $88,119,792)
Other Assets and Liabilities (Net) - (3.1)% ...... (3,499,703)
------------
NET ASSETS - 100.0% (5,629,803 shares outstanding) $114,432,148
============
NET ASSET VALUE,
Offering and Redemption Price Per Share ......... $20.33
======
<TABLE>
<CAPTION>
Net Unrealized
Settlement Appreciation/
Date (Depreciation)
---- --------------
<S> <C> <C> <C>
FORWARD FOREIGN EXCHANGE CONTRACTS
42,514,960 (a) Deliver Japanese Yen in exchange for
USD 353,702 ............................. 04/01/99 $5,286
199,699 (b) Deliver British Pound in exchange for
USD 324,271 ............................. 04/01/99 (1,897)
147,526 (b) Deliver British Pound in exchange for
USD 238,475 ............................. 04/07/99 (432)
658,547 (c) Deliver Euro Dollar in exchange for
USD 707,213 ............................. 04/01/99 3,743
848,047 (c) Deliver Euro Dollar in exchange for
USD 917,332 ............................. 04/30/99 (1,149)
6,610,255 (d) Deliver Norwegian Krone in exchange for
USD 847,882 ............................. 04/07/99 6,564
2,160,732 (d) Deliver Norwegian Krone in exchange for
USD 279,338 ............................. 04/08/99 (79)
</TABLE>
- ----------
(a) Principal amount denoted in Japanese Yen.
(b) Principal amount denoted in British Pounds.
(c) Principal amount denoted in Euro's.
(d) Principal amount denoted in Norwegian Krone.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR-American Depositary Receipt
% of
Market Market
Geographic Diversification Value Value
- -------------------------- ----- ------------
North America 66.1% $77,968,849
Europe 25.8% 30,462,433
Japan 6.0% 7,083,001
Asia/Pacific Rim 2.1% 2,417,569
-----
100.0% $117,931,851
===== ============
11
<PAGE>
Gabelli Global Series Funds, Inc.
The Gabelli Global Interactive Couch Potato(R) 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
Director of Surgery
Lawrence Hospital
Anthonie C. van Ekris
Managing Director
BALMAC International, Inc.
Officers and Portfolio Managers
Mario J. Gabelli, CFA
President and Chief
Investment Officer
Bruce N. Alpert
Vice President and Treasurer
Marc J. Gabelli
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 Interactive Couch Potato(R) Fund. It is not authorized for
distribution to prospective investors unless preceded or accompanied by an
effective prospectus.
- --------------------------------------------------------------------------------
