[PHOTO OMITTED]
The
Gabelli
Global
Telecommunications
Fund
FIRST QUARTER REPORT
MARCH 31,1999
<PAGE>
[GRAPHIC OMITTED]
The Gabelli Global Telecommunications Fund
First Quarter Report
March 31, 1999
* * * *
Morningstar Rating(TM) of The Gabelli Global Telecommunications Fund was 4
stars overall and for the five-year period ended 3/31/99 among 2947 and
1810 domestic equity funds, respectively, and 5 stars for the three-year
period ended 3/31/99 among 2947 domestic equity funds.
To Our Shareholders,
In the first quarter of 1999, telecommunications stocks moved steadily
forward while avoiding the macroeconomic and stock market obstacles that
hampered many other industry groups. Investors seem to realize that strong
secular trends in the telecommunications industry--consolidation, ongoing
deregulation and technological advances--are more powerful than economic or
financial market forces.
Investment Performance
For the first quarter ended March 31, 1999, The Gabelli Global
Telecommunications Fund's (the "Fund") total return was 15.4%. The Lipper
Telecommunications Fund Average and Salomon Smith Barney Global
Telecommunications Index had returns of 16.4% and 8.3%, respectively, over the
same period. The Lipper average and Salomon Smith Barney Global
Telecommunications index are unmanaged indicators of investment performance. The
Fund was up 30.2% over the trailing twelve-month period. The Lipper
Telecommunications Fund Average and Salomon Smith Barney Global
Telecommunications Index rose 34.6% and 27.6%, respectively, over the same
twelve-month period.
For the five-year period ended March 31, 1999, the Fund's total return
averaged 21.4% annually versus average annual total returns of 20.9% and 17.7%
for the Lipper Telecommunications Fund Average and Salomon Smith Barney Global
Telecommunications Index, respectively. Since inception on November 1, 1993
through March 31, 1999, the Fund had a cumulative total return of 157.6%, which
equates to an average annual return of 19.1%.
- --------------------------------------------------------------------------------
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.
<PAGE>
INVESTMENT RESULTS (a)
- --------------------------------------------------------------------------------
Quarter
------------------------------------
1st 2nd 3rd 4th Year
------ ------ ------ ------ ------
1999: Net Asset Value ... $19.18 -- -- -- --
Total Return ...... 15.4% -- -- -- --
- --------------------------------------------------------------------------------
1998: Net Asset Value ... $15.91 $16.22 $14.48 $16.62 $16.62
Total Return ...... 19.4% 1.9% (10.7)% 24.0% 34.8%
- --------------------------------------------------------------------------------
1997: Net Asset Value ... $11.29 $13.17 $14.22 $13.32 $13.32
Total Return ...... 0.1% 16.7% 7.9% 4.6% 31.9%
- --------------------------------------------------------------------------------
1996: Net Asset Value ... $11.72 $12.16 $11.73 $11.28 $11.28
Total Return ...... 5.4% 3.8% (3.5)% 3.3% 9.0%
- --------------------------------------------------------------------------------
1995: Net Asset Value ... $ 9.77 $10.29 $11.12 $11.12 $11.12
Total Return ...... 0.4% 5.3% 8.1% 1.6% 16.2%
- --------------------------------------------------------------------------------
1994: Net Asset Value ... $ 9.68 $ 9.62 $10.38 $ 9.73 $ 9.73
Total Return ...... (5.1)% (0.6)% 7.9% (5.3)% (3.7)%
- --------------------------------------------------------------------------------
1993: Net Asset Value ... -- -- -- $10.20 $10.20
Total Return ...... -- -- -- 3.0%(b) 3.0%(b)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Return - March 31, 1999 (a)
1 Year................................... 30.2%
5 Year................................... 21.4%
Life of Fund (b)......................... 19.1%
- --------------------------------------------------------------------------------
Dividend History
- --------------------------------------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
- ----------------- -------------- ------------------
December 28, 1998 $1.310 $16.38
December 30, 1997 $1.550 $13.28
December 31, 1996 $0.840 $11.28
December 29, 1995 $0.182 $11.12
December 30, 1994 $0.095 $ 9.73
December 31, 1993 $0.102 $10.20
(a) Total returns and average annual returns reflect changes in share price and
reinvestment of dividends and are net of expenses. The net asset value of the
Fund is reduced on the ex-dividend (payment) date by the amount of the dividend
paid. Of course, returns represent past performance and do not guarantee future
results. Investment returns and the principal value of an investment will
fluctuate. When shares are redeemed they may be worth more or less than their
original cost. (b) From commencement of investment operations on November 1,
1993. Note: Investing in foreign securities involves risks not ordinarily
associated with investments in domestic issues, including currency fluctuation,
economic and political risks.
- --------------------------------------------------------------------------------
2
<PAGE>
HOLDINGS BY GEOGRAPHIC REGION - 3/31/99
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
United States 49.2%
Europe 13.9%
Canada 8.1%
Latin America 3.9%
Asia/Pacific Rim 3.5%
Japan 3.0%
Cash 18.4%
HOLDINGS BY INDUSTRY SECTOR - 3/31/99
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Regional Providers 13.8%
Networks 16.7%
Cable/Media 13.5%
Long Distance 6.4%
Equipment 5.2%
Alternative Providers 1.0%
Business Services 0.6%
Cash 18.4%
Wireless/Satelite 24.4%
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.
Industry Allocation
The accompanying chart depicts the Fund's holdings by industry sector as
of March 31, 1999. Industry sectors represented in the chart and below may or
may not be included in the Fund's future portfolio.
COMMENTARY
AT&T appears to be effectively positioning itself at the head of the
telecommunications pack. The moves by AT&T in the last year illustrate the
convergence of the telephone, television and computer into a single all-purpose
tool for the information age and illuminate the path other telecommunications
companies should follow.
The AT&T/Tele-Communications Inc. merger closed during the quarter. The
deal will allow AT&T to provide local and long distance telephony, Internet
access and entertainment services to a substantial percentage of American
households. AT&T is already building on this base. It recently signed an
agreement with cable giant Time Warner that calls for AT&T to pay $1.50 per
cable subscriber per month for exclusive access to Time Warner's cable systems.
This toll rises to $6.00 per cable subscriber per month over five years. On
paper, this adds $12 billion of economic value to Time Warner's cable television
business five years hence! Recently, AT&T outbid Comcast for MediaOne Group.
The other leading long distance companies are maneuvering as well. They
are building their own fiber optic local networks as entry points for providing
local telephone services and adding to their Internet transmission business.
These competitors may also be considering following AT&T's lead and taking a
hard look at partnering with large independent cable operators such as Adelphia,
Cablevision Systems and Comcast.
3
<PAGE>
As reflected by our relatively modest portfolio positions, the Regional
Bell Operating Companies ("RBOCs") appear to be falling behind in this race.
There have been several substantial mergers among the RBOCs in an effort to
expand their service territories. But, these newly enlarged RBOCs have done
relatively little to expand the services they offer to their customers. Perhaps,
a major RBOC/cable deal is on the horizon.
International telephone companies also appear to be behind the pace being
set by AT&T. However, they too are making aggressive moves to expand their
empires. Britain's Vodafone topped Bell Atlantic's offer for AirTouch
Communications, giving it a solid foothold in the U.S. cellular market and
broadening its European cellular base through AirTouch's joint ventures with
other leading cellular providers on the continent. Bermuda-based Global
Crossing's recently announced deal with Frontier Corp. (the former Rochester
Telephone) also has global implications. Global Crossing is building a global
communications network to serve multi-national companies. Frontier's ownership
of fiber strands on Qwest Communication's national network may have been the
main attraction for Global Crossing.
Clear Connections and Some Wrong Numbers
This quarter, our cable television holdings (including United
International Holdings, Rogers Communications, MediaOne Group, Comcast, Century
Communications and Cablevision Systems) were strong performers. A flurry of
deals for smaller private cable operators, such as Adelphia's bid for Century
Communications, have driven the transaction value of cable subscribers from
roughly $2,500 to approximately $4,000 per subscriber. In light of the
aforementioned AT&T/Time Warner agreement, these values may rise even higher in
the years ahead.
Cable network holding company Liberty Media Group (now a tracking stock of
AT&T) was near the very top of our performance list. This reflects Liberty's
treasure chest of cable network assets, rising values for high-quality
programming and the company's $5.5 billion in cash that CEO John Malone is free
to put to work, doing what he has always done best, investing in media
companies.
In general, our cellular telephone investments fared well, with Western
Wireless Corp., Rural Cellular Corp., Nextel Communications, Cellular
Communications of Puerto Rico and AirTouch posting solid gains. Global
Crossing's premium bid for Frontier Corp. also helped boost returns.
Selected foreign telecommunications holdings (including Cable & Wireless,
Hungarian Telephone & Cable, Japan Telecom, Nippon Telegraph and Telephone,
Telecom Asia and Telecom Italia) posted gains. Others, most notably, emerging
market Asian telecommunications holdings (Pakistan Telecommunications, Singapore
Telecommunications, Telekom Malaysia Berhad and Thai Telephone & Telecom)
declined. These and Latin American telecommunications holdings, which delivered
mixed returns this quarter, are being held hostage to still extreme economic
conditions in their regions and/or individual countries. When these emerging
economies stabilize, we expect much better performance from these investments.
4
<PAGE>
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.
Commonwealth Telephone Enterprises Inc. (CTCO - $36.8125 - Nasdaq; CTCOB -
$36.00 - Nasdaq), located in Dallas, Pennsylvania, provides local, long distance
and other telecommunications services in rural areas of Pennsylvania. CTCO was
formed as the result of a restructuring of C-Tec Corp. in 1997. The company
currently has over 300,000 access lines and is expanding into competitive local
exchange carrier ("CLEC") businesses.
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.
MediaOne Group Inc. (UMG - $63.50 - NYSE) is one of the nation's leading
broadband services companies. UMG provides more than five million subscribers in
17 states with basic and premium cable television services and has recently
introduced high speed Internet access, telephone services and digital television
in some of its service areas. MediaOne was created from the 1996 union of
telecommunications company MediaOne Group (formerly US West Media Group) and
Continental Cablevision. Headquartered in Englewood, Colorado, MediaOne provides
high quality cable television services. The company is conducting a national
upgrade of its hybrid fiber optic/coaxial cable ("HFC") network to broadband
technology which improves traditional cable service and enables next-generation
products and services. The Group's investment interests include 25% of Time
Warner Entertainment (which includes Warner Brothers Studio and Home Box
Office), 24% of PCS Prime Co. and almost 27% of TeleWest plc. The number three
U.S. cable television company recently agreed to be acquired by AT&T Corp. (T -
$79.8125 - NYSE) for $54 billion.
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.
5
<PAGE>
Telecom Italia Mobile SpA (TIM.MI - $6.73 - Milan Stock Exchange), formerly a
subsidiary of Telecom Italia (the provider of wired local and long distance
telephone service in Italy), was spun-off last July and began trading on the
Milan Stock Exchange as an independent company. Telecom Italia Mobile is the
leading cellular provider in Italy. The company is the largest cellular provider
in Europe with close to 15 million GSM subscribers. The competitive environment
in which Telecom Italia Mobile operates remains favorable, with only two
competitors, Omnitel and Wind.
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.
Minimum Initial Investment - $1,000
The Fund's minimum initial investment for both regular and retirement
accounts is $1,000. There are no subsequent investment minimums. No initial
minimum is required for those establishing an Automatic Investment Plan.
Additionally, The Gabelli Global Telecommunications Fund and other Gabelli Funds
are available through the no-transaction fee programs at many major discount
brokerage firms.
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.
6
<PAGE>
In Conclusion
It has been another winning quarter for telecommunications stocks and the
Fund. We do not think we should expect such generous returns every quarter.
However, our investment thesis, that telecommunications will be one of the
premier global growth industries in the next millennium, is unfolding much as we
anticipated when we launched the Fund. We will continue to be selective--working
hard to identify those telecommunications companies that we believe will emerge
as the strongest competitors in this rapidly changing industry.
The Fund's daily net asset value is available in the financial press and
each evening after 6:00 PM (Eastern Time) by calling 1-800-GABELLI
(1-800-422-3554). The Fund's Nasdaq symbol is GABTX. Please call us during the
business day for further information.
Sincerely,
Mario J. Gabelli, CFA Marc J. Gabelli
Portfolio Manager and Associate Portfolio Manager
Chief Investment Officer
Ivan Arteaga, CFA
Associate Portfolio Manager
April 30, 1999
- --------------------------------------------------------------------------------
Top Ten Holdings
March 31, 1999
Telephone & Data Systems Inc. Cable & Wireless plc
Telecom Italia Mobile SpA BCE Inc.
Commonwealth Telephone Enterprises Liberty Media Group
Frontier Corp. Associated Group Inc.
Rogers Communications Inc. MediaOne Group Inc.
- --------------------------------------------------------------------------------
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 Telecommunications Fund
Portfolio of Investments -- March 31, 1999 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS -- 80.7%
Alternative Telecommunications Providers -- 0.7%
4,000 Colt Telecom Group plc+.............................. $ 287,250
1,940 Davel Communications Group Inc.+..................... 13,580
50,000 GST Telecommunications Inc.+......................... 546,875
18,000 ICG Communications Inc.+............................. 362,250
4,000 Intermedia Communications Inc.+...................... 106,500
3,500 McLeodUSA Inc., Cl. A+............................... 147,000
5,000 Startec Global Communications Corp.+................. 38,750
25,000 Suncom Telecommunications Inc.+...................... 4,500
10,000 USN Communications Inc.+............................. 5,000
------------
1,511,705
------------
Broadcasting -- 0.2%
25,000 CanWest Global Communications Corp................... 326,563
------------
Business Services -- 0.7%
28,000 Convergys Corp.+..................................... 479,500
2,000 EarthLink Network Inc.+.............................. 120,000
30,000 IDT Corp.+........................................... 540,000
20,000 R. H. Donnelley Corp................................. 308,750
------------
1,448,250
------------
Cable -- 10.4%
10,000 Adelphia Communications Corp., Cl. A+................ 630,000
45,000 Cablevision Systems Corp., Cl. A+.................... 3,335,625
70,000 Century Communications Corp., Cl. A+................. 3,250,625
33,000 Comcast Corp., Cl. A................................. 2,029,500
10,000 Le Groupe Videotron ltee............................. 195,004
1,000 Media General Inc., Cl. A............................ 46,750
58,000 MediaOne Group Inc.+................................. 3,683,000
33,000 NTL Inc.+............................................ 2,685,375
230,000 Rogers Communications Inc., Cl. B+................... 4,168,750
24,136 Telewest Communications plc, ADR+.................... 1,058,967
33,000 United International Holdings Inc., Cl. A+........... 1,435,500
------------
22,519,096
------------
Communications Equipment -- 5.0%
200,000 Allen Telecom Inc.+.................................. 1,212,500
120,000 Champion Technology Holdings, ADR.................... 10,992
1,000 Communications Systems Inc........................... 9,500
8,000 Ericsson (L.M.) Telephone Co., ADR................... 190,500
3,000 Gemstar International Group Ltd.+.................... 225,750
5,000 General Instrument Corp.+............................ 151,563
2,500 General Semiconductor Inc.+.......................... 18,125
3,500 L - 3 Communications Holdings Inc.+.................. 161,875
5,000 Lucent Technologies Inc.............................. 538,750
2,500 Motorola Inc......................................... 183,125
4,000 Nokia Corp., Cl. A, ADR............................. 623,000
25,000 Northern Telecom Ltd................................. 1,553,125
50,000 RELTEC Corp.+........................................ 1,471,875
12,000 Scientific - Atlanta Inc............................. 327,000
500 Siemens AG, ADR...................................... 33,413
100,000 Time Engineering Berhad+............................. 11,184
15,000 TNT Post Group NV, ADR............................... 443,438
100,000 Xylan Corp.+......................................... 3,681,249
------------
10,846,964
------------
Entertainment -- 2.2%
23,462 Ascent Entertainment Group Inc.+..................... 256,616
12,000 GC Companies Inc.+................................... 377,250
70,524 Liberty Media Group, Cl. A+.......................... 3,711,326
8,000 Metromedia International Group Inc.+................. 39,000
4,000 Time Warner Inc...................................... 284,249
1,000 Viacom Inc., Cl. A+.................................. 83,313
------------
4,751,754
------------
Equipment and Supplies -- 0.3%
6,000 Amphenol Corp., Cl. A+............................... 229,500
20,000 Thyssen Krupp AG+.................................... 395,128
------------
624,628
------------
Long Distance Telephone Providers -- 6.1%
45,001 AT&T Corp............................................ 3,591,642
25,000 Call-Net Enterprises Inc.+........................... 223,098
270 DDI Corp............................................. 1,276,703
23,000 Embratel Participacoes SA, ADR+...................... 383,813
68,000 General Communication Inc., Cl. A+................... 310,250
14,000 Kokusai Denshin Denwa Co. Ltd........................ 673,816
8,500 MCI WorldCom Inc.+................................... 752,781
8,000 MIDCOM Communications Inc.+.......................... 41
67,000 Philippine Long Distance Telephone Co................ 1,733,625
90,000 PLD Telekom Inc.+.................................... 348,750
5,830 Qwest Communications International Inc.+............. 420,307
20,000 Sprint Corp.......................................... 1,962,499
8,000 Teleglobe Inc........................................ 242,730
2,000 Telegroup Inc.+...................................... 406
100,000 VDC Communications Inc.+............................. 400,000
34,000 Viatel Inc.+......................................... 969,000
------------
13,289,461
------------
Publishing -- 0.2%
8,000 News Corp. Ltd., ADR................................. 236,000
100,000 Seat - Pagine Gialle SpA............................. 117,135
------------
353,135
------------
Regional and Local Telephone Providers -- 14.1%
60,000 Aliant Communications Inc............................ 2,456,250
2,000 Allegiance Telecom Inc.+............................. 50,000
16,000 Alltel Corp.......................................... 998,000
42,000 Ameritech Corp....................................... 2,430,750
15,200 Atlantic Tele-Network Inc............................ 136,800
10,608 Bell Atlantic Corp................................... 548,301
50,000 BellSouth Corp....................................... 2,003,125
18,000 Bruncor Inc.......................................... 287,945
30,000 Cincinnati Bell Inc.................................. 673,125
110,817 Commonwealth Telephone Enterprises Inc.+............. 4,079,450
8
<PAGE>
The Gabelli Global Telecommunications Fund
Portfolio of Investments (Continued) -- March 31, 1999 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS (Continued)
Regional and Local Telephone Providers (Continued)
40,500 Commonwealth Telephone Enterprises Inc., Cl. B+...... $ 1,458,000
500 Companhia Riograndense de Telecomunicacoes+.......... 152
10,000 CoreComm Ltd.+....................................... 367,500
7,000 E.Spire Communications Inc.+......................... 96,250
8,000 Electric Lightwave Inc., Cl. A+...................... 73,000
150,000 First Pacific Co. Ltd................................ 90,005
10,000 First Pacific Co. Ltd., ADR.......................... 30,002
100,000 Frontier Corp........................................ 5,187,499
4,760 Global Telesystems Group Inc.+....................... 266,263
33,000 GTE Corp............................................. 1,996,500
30,000 Island Telecom Inc................................... 515,603
19,000 Maritime Telegraph and Telephone Company Ltd......... 504,267
300 MetroNet Communications Corp., Cl. B+................ 16,500
12,000 NewTel Enterprises Ltd............................... 293,497
20,000 QuebecTel Group Inc.................................. 240,615
88,000 RCN Corp.+........................................... 2,953,500
38,000 SBC Communications Inc............................... 1,790,750
23,000 Tele Norte Leste Participacoes SA, ADR+.............. 353,625
23,000 Telesp Participacoes SA, ADR........................ 474,375
4,000 US West Inc.......................................... 220,250
------------
30,591,899
------------
Satellite -- 2.8%
3,000 American Mobile Satellite Corp.+..................... 22,500
500 Asia Satellite Telecommunications Holdings Ltd....... 7,688
1,000 British Sky Broadcasting Group, ADR.................. 51,250
80,000 COMSAT Corp.......................................... 2,315,000
6,000 Echostar Communications Corp., Cl. A+................ 489,750
6,000 General Motors Corp., Cl. H+......................... 302,625
16,000 Globalstar Telecommunications+....................... 222,000
21,500 Iridium World Communications Ltd.+................... 325,188
38,000 Loral Space & Communications Ltd.+................... 548,625
2,800 Pathe SA............................................. 719,434
8,000 Pegasus Communications Corp.+........................ 224,000
10,000 PT Indonesia Satellite, ADR.......................... 129,375
40,000 TCI Satellite Entertainment Inc., Cl. A+............. 26,250
40,000 U.S. Satellite Broadcasting Co.+..................... 685,000
------------
6,068,685
------------
Telecommunications -- 0.3%
12,500 Great Nordic Store................................... 408,525
4,600 Tele Centro Sul Participacoes SA, ADR+.............. 212,463
------------
620,988
------------
Telephone Networks -- 16.3%
75,000 BCE Inc.............................................. 3,323,437
71,080 BCT. Telus Communications Inc........................ 1,738,476
23,693 BCT. Telus Communications Inc........................ 559,915
3,000 BHI Corp.+........................................... 84,000
1,000 British Telecommunications plc, ADR.................. 164,188
25,000 Cable & Wireless Communications plc, ADR+............ 1,414,063
9,600,000 Cable & Wireless Jamaica Ltd......................... 342,802
110,000 Cable & Wireless plc, ADR............................ 4,063,124
273,333 Citizens Utilities Co., Cl. B+....................... 2,118,330
64,000 Compania de Telecomunicaciones de Chile SA........... 1,508,000
500,000 CPT Telefonica del Peru, Cl. B....................... 642,251
1,500 CPT Telefonica del Peru, Cl. B, ADR.................. 19,125
16,000 Deutsche Telekom AG.................................. 647,000
2,000 France Telecom SA.................................... 161,375
4,707 Hellenic Telecommunications Organization SA.......... 114,143
2,000 Hellenic Telecommunications Organization SA, ADR+ ... 23,375
30,000 Hong Kong Telecommunications Ltd., ADR............... 586,875
5,000 Hungarian Telephone & Cable Corp.+................... 21,875
80 Japan Telecom Co. Ltd................................ 1,148,357
15,000 Koninklijke PTT Nederland NV, ADR.................... 595,313
5,000 Korea Telecom Corp.+................................. 169,519
500 Matav, ADR........................................... 13,375
167 Nippon Telegraph & Telephone Corp.................... 1,635,734
10,000 Nippon Telegraph & Telephone Corp., ADR.............. 487,500
800 Pakistan Telecommunications, GDR..................... 28,800
12,000 Portugal Telecom SA, ADR............................. 525,750
20,000 PT Telekomunikasi Indonesia.......................... 127,500
4,000 Rostelecom, ADR...................................... 18,750
30,000 Singapore Telecommunications Ltd..................... 42,696
3,000 Swisscom AG, ADR+.................................... 116,813
8,000 Tele Danmark A/S, ADR................................ 392,000
30,000 Telecom Argentina Stet - France Telecom SA, ADR...... 823,125
1,000,000 Telecom Asia Corp.................................... 559,031
21,000 Telecom Corporation of New Zealand Ltd., ADR......... 819,000
190,000 Telecom Italia SpA................................... 2,018,390
18,000 Telecom Italia SpA, ADR.............................. 1,878,750
23,000 Telecomunicacoes Brasileiras SA (Telebras), ADR...... 3,234
938,570 Telecomunicacoes de Sao Paulo SA (Telesp)+........... 70,870
30,000 Telefonica de Argentina SA, ADR...................... 907,500
22,000 Telefonica de Espana, ADR............................ 2,810,499
31,000 Telefonos de Mexico SA, Cl. L, ADR................... 2,030,500
300,000 Telekom Malaysia Berhad.............................. 603,947
600 Telestra Corp. Ltd................................... 63,300
8,075 Thai Telephone & Telecom, GDR+....................... 2,836
3,000 Veba AG.............................................. 157,727
------------
35,583,170
------------
Wireless Communications -- 21.4%
40,000 ABC Communications Holdings Ltd...................... 9,291
230,000 Aerial Communications Inc.+.......................... 1,782,500
18,000 AirTouch Communications Inc.+........................ 1,739,250
33,400 Associated Group Inc., Cl. A+........................ 1,655,388
9
<PAGE>
The Gabelli Global Telecommunications Fund
Portfolio of Investments (Continued) -- March 31, 1999 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS (Continued)
Wireless Communications (Continued)
42,000 Associated Group Inc., Cl. B+........................ $ 2,037,000
25,000 BCE Mobile Communications Inc.+...................... 667,640
500 Bouygues Group....................................... 138,727
10,000 Cellular Communications of Puerto Rico Inc.+......... 270,000
18,000 Centennial Cellular Corp.+........................... 850,500
28,000 Century Telephone Enterprises Inc.................... 1,967,000
2,000 Clearnet Communications Inc., Cl. A+................. 26,406
37,890 CommNet Cellular Inc.+............................... 608,608
35,000 CP Pokphand, ADR+.................................... 15,131
5,300 Easycall Group+...................................... 954
26,500 Europolitan Holdings AB.............................. 2,442,780
36,000 Grupo Iusacell SA, Ser. D, ADR+...................... 265,500
26,000 Himachal Futuristic (a).............................. 51,760
24,000 Jasmine International+............................... 4,664
50,000 Leap Wireless International Inc.+.................... 643,750
25,000 Mannesmann AG........................................ 3,192,868
1,500 Metrocall Inc.+...................................... 4,547
17,289 NEXTEL Communications Inc., Cl. A+................... 633,210
30 NTT Mobile Communication Network Inc................. 1,481,888
180,000 Omnipoint Corp.+..................................... 2,598,749
47,500 Price Communications Corp.+.......................... 528,438
170,000 Rogers Cantel Mobile Communications Inc., Cl. B+..... 3,070,624
40,000 Rural Cellular Corp., Cl. A+......................... 530,000
70,000 Securicor Group plc.................................. 616,421
70,420 SK Telecom Co. Ltd., ADR............................. 858,244
5,000 SkyTel Communications Inc.+.......................... 83,125
10,000 Sprint Corp. (PCS Group)+............................ 443,125
80,000 Technology Resources Industries...................... 27,789
2,300 Tele Celular Sul Participacoes SA, ADR............... 43,988
7,666 Tele Centro Oeste Celular Participacoes SA, ADR...... 28,268
460 Tele Leste Celular Participacoes SA, ADR............. 14,720
1,150 Tele Nordeste Celular Participacoes SA, ADR.......... 25,588
460 Tele Norte Celular Participacoes SA, ADR............. 13,685
4,600 Tele Sudeste Celular Participacoes SA, ADR........... 93,150
500 Telecel-Comunicacaoes Pessoais SA.................... 79,619
500,000 Telecom Italia Mobile SpA............................ 3,362,902
1,150 Telemig Celular Participacoes SA, ADR +.............. 30,116
150,000 Telephone and Data Systems Inc....................... 8,474,999
9,200 Telesp Celular Participacoes SA, ADR................. 192,625
938,570 Telesp Celular SA.................................... 22,985
4,000 Teligent Inc., Cl. A+................................ 166,500
20,000 Total Access Communications plc+..................... 43,200
25,000 United States Cellular Corp.+........................ 1,100,000
50,000 Vanguard Cellular Systems Inc., Cl. A+............... 1,365,625
6,000 Vimpel Communications+............................... 93,000
5,000 Vodafone Group plc, ADR.............................. 938,750
40,000 Western Wireless Corp., Cl. A+....................... 1,450,000
1,500 Winstar Communications Inc.+......................... 54,516
------------
46,840,113
------------
TOTAL COMMON STOCKS.................................. 175,376,411
------------
PREFERRED STOCKS -- 1.9%
Cable -- 0.8%
18,000 Tele-Communications Inc.
6.00% Cv. Pfd., Ser. E............................ 1,791,000
------------
Entertainment -- 0.0%
1,500 Metromedia International Group Inc.
7.25% Cv. Pfd..................................... 40,125
------------
12,000 Long Distance Telephone Providers -- 0.4%
Sprint Corp.
8.25% Cv. Pfd. ................................... 876,000
------------
Regional and Local Telephone Providers -- 0.0%
500 Telecomunicacoes do Parana........................... 69
------------
Telephone Networks -- 0.3%
10,000 Philippine Long Distance Telephone Co.
7.00% Cv. Pfd., Ser. III.......................... 474,999
3,355,677 Telecomunicacoes de Rio de Janeiro
SA (Telerj) Pfd................................... 79,928
40,900 Telecomunicacoes de Sao Paulo
SA (Telesp) Pfd................................... 5,032
------------
559,959
------------
Wireless Communications -- 0.4%
3,000 AirTouch Communications Inc.
4.25% Cv. Pfd., Cl. C............................. 403,500
5,000 AirTouch Communications Inc.
6.00% Cv. Pfd., Cl. B............................. 393,750
3,355,677 Telerj Celular SA Pfd., Cl. B+....................... 56,155
40,900 Telesp Celular SA Pfd., Cl. B+....................... 1,490
------------
854,895
------------
TOTAL PREFERRED STOCKS............................... 4,122,048
------------
RIGHTS -- 0.0%
Telephone Networks -- 0.0%
4,131,272 Telecomunicacoes de Rio de Janeiro SA
(Telerj).......................................... 0
------------
CORPORATE BONDS -- 0.5%
Principal Market
Amount Value
------ -----
Telephone Networks -- 0.4%
$1,000,000 Telekom Malaysia Berhad, Sub. Deb. Cv.
4.00%, 10/03/04................................... 835,000
------------
Wireless Communications -- 0.1%
250,000 Technology Resources Industries,
Sub. Deb. Cv.
2.75%, 11/28/04................................... 181,250
------------
TOTAL CORPORATE BONDS................................ 1,016,250
------------
U.S. GOVERNMENT OBLIGATIONS - 18.7%
40,890,000 U.S. Treasury Bills,
4.27% to 4.79% ++,
due 04/01/99 to 06/24/99.......................... 40,712,626
------------
10
<PAGE>
The Gabelli Global Telecommunications Fund
Portfolio of Investments (Continued) -- March 31, 1999 (Unaudited)
================================================================================
Market
Value
-----
TOTAL INVESTMENTS -- 101.8%
(Cost $145,433,630)................................ $221,227,335
Other Assets and
Liabilities (Net) -- (1.8)%....................... (3,843,253)
------------
NET ASSETS -- 100.0%
(11,334,265 shares outstanding)................... $217,384,082
============
NET ASSET VALUE,
Offering and Redemption
Price Per Share................................... $19.18
======
Principal Settlement Net Unrealized
Amount Date Depreciation
- --------- ---------- ------------
FORWARD FOREIGN EXCHANGE CONTRACTS
178,765 (b) Deliver Canadian Dollars
in exchange for
USD 118,348 ................. 05/12/99 $ (179)
4,640,899 (c) Sell Hong Kong Dollars
in exchange for
USD 597,000 ................. 05/24/99 (1.193)
- ----------
(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
$1,099,646 or 0.5% of net assets.
(b) Principal amount denoted in Canadian Dollars.
(c) Principal amount denoted in Hong Kong Dollars.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR -- American Depositary Receipt.
GDR -- Global Depositary Receipt.
% of
Market Market
Geographic Diversification Value Value
- -------------------------- ----- -----
North America 75.7% $167,445,182
Europe 14.49% 30,689,360
Latin America 3.8% 8,645,130
Asia/Pacific Rim 3.0% 7,743,665
Japan 0.2% 6,703,998
----- ------------
100.0% $221,227,335
===== ============
11
<PAGE>
Gabelli Global Series Funds, Inc.
The Gabelli Global Telecommunications Fund
One Corporate Center
Rye, New York 10580-1434
1-800-GABELLI
[1-800-422-3554]
fax: 1-914-921-5118
http://www.gabelli.com
e-mail: [email protected]
(Net Asset Value may be obtained daily by calling
1-800-GABELLI after 6:00 P.M.)
Board of Directors
Mario J. Gabelli, CFA Karl Otto Pohl
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 Marc J. Gabelli
President and Chief Associate Portfolio Manager
Investment Officer
Bruce N. Alpert James E. McKee
Vice President and Treasurer Secretary
Distributor
Gabelli & Company, Inc.
Custodian, Transfer Agent and Dividend Agent
State Street Bank and Trust Company
Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
- --------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of The
Gabelli Global Telecommunications Fund. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective prospectus.
- --------------------------------------------------------------------------------
