[GRAPHIC OF FLAGS OMITTED]
THE GABELLI GLOBAL
CONVERTIBLE SECURITIES FUND
THIRD QUARTER REPORT - SEPTEMBER 30, 2000
[PHOTO OF HART WOODSON OMITTED]
HART WOODSON
TO OUR SHAREHOLDERS,
During the third quarter of 2000, the Gabelli Global Convertible
Securities Fund fell as rising interest rates and higher energy prices continued
to pressure global equity valuations. Global economic growth is expected to
moderate from 4.8% this year to 4.1% in 2001, while earnings growth will slow
from 23% to 12%. Much of this news is already in the market. During the quarter,
the Nasdaq composite declined by 7.39%, while in dollar terms Japan's Nikkei 225
fell by 11.25%, and Europe, as measured by the Bloomberg 500 Index, slipped by
9.14%.
The key question is whether the current slowdown will gather momentum or
be a pause that refreshes? The answer will be a function of energy prices. We
believe moderating oil prices in 2001 will be the catalyst for reduced
inflation, lower interest rates, and renewed economic growth. This environment
will prove favorable for investors, especially international investors, who will
benefit from an economic convergence toward America's new economy norms of
shareholder value, IT spending, venture capital, and tax reform.
INVESTMENT PERFORMANCE
For the third quarter ended September 30, 2000, the Gabelli Global
Convertible Securities Fund's Class AAA Shares (the "Fund") declined 8.40%. The
Warburg Dillon Read Global Convertible Index, Merrill Lynch Global Bond Index
and Morgan Stanley Capital International World Free Index of global equity
markets declined 3.01%, 0.62% and 5.42% respectively, over the same period. Each
index is an unmanaged indicator of investment performance. The Fund was up 9.46%
over the trailing twelve-month period. The Warburg Dillon Read Global
Convertible Index, Merrill Lynch Global Bond Index and Morgan Stanley Capital
International World Free Index had total returns of 16.64%, (0.58)%, and 8.01%,
respectively, over the same twelve-month period.
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT RESULTS (CLASS AAA SHARES) (a)
------------------------------------------------------------------------------------------------------------
Quarter
----------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
<S> <C> <C> <C> <C> <C>
2000: Net Asset Value ................... $15.04 $13.21 $11.81 -- --
Total Return ...................... 10.6% (10.2)% (8.4)% -- --
------------------------------------------------------------------------------------------------------------
1999: Net Asset Value ................... $10.89 $11.91 $12.71 $13.88 $13.88
Total Return ...................... 7.6% 9.4% 6.7% 20.3% 51.1%
------------------------------------------------------------------------------------------------------------
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
------------------------------------------------------------------------------------------------------------
</TABLE>
-----------------------------------------------------------
Average Annual Returns (Class AAA Shares)
-----------------------------------------
September 30, 2000 (a)
----------------------
1 Year ....................................... 9.46%
5 Year ....................................... 10.39%
Life of Fund (b) ............................. 9.59%
-----------------------------------------------------------
Dividend History
-------------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
----------------- -------------- ------------------
December 27, 1999 $1.390 $13.67
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 for the Class AAA Shares 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.
--------------------------------------------------------------------------------
For the five-year period ended September 30, 2000, the Fund's total return
averaged 10.39% annually versus average annual total returns of 12.38%, 3.89%
and 14.13% for the Warburg Dillon Read Global Convertible Index, Merrill Lynch
Global Bond Index and Morgan Stanley Capital International World Free Index,
respectively.
Since inception on February 3, 1994 through September 30, 2000, the Fund
had a cumulative total return of 84.04%, which equates to an average annual
return of 9.59%.
2
<PAGE>
MULTI-CLASS SHARES
The Gabelli Global Series Funds, Inc. began offering additional classes of
Fund shares in March 2000. The existing shares remain no-load and have been
redesignated as "Class AAA" Shares. Class A, Class B and Class C Shares are
targeted to the needs of investors who seek advice through financial
consultants. For the third quarter ended September 30, 2000, The Gabelli Global
Convertible Securities Fund Class A Shares declined 8.40%. (Class B and Class C
Shares have not been issued as of September 30, 2000). The Class A Shares ended
the third quarter with a net asset value of $11.81.
OUR INVESTMENT OBJECTIVE
The Fund's objective is to obtain a high rate of total return by investing
in global convertible securities. We expect to achieve a competitive rate of
return by investing primarily in coupon paying convertible securities which meet
our selective investment criteria.
OUR APPROACH
We weigh both country-specific and company-specific factors to make our
investment decisions. Country-specific factors include political stability,
economic growth, inflation and trends in interest rates. With regard to
companies, we seek firms which are undervalued in relation to their long-term
potential value. We then look for some dynamic in the country or company which
can unlock this value. In the case of global telecommunications, the dynamic is
the privatization of state-owned monopolies. In developing countries, it is the
need to provide the infrastructure for growth. In Japan, it is the change from
an industrial to a consumer-oriented economy. In commodities, it is the increase
in industrial demand.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
HOLDINGS BY GEOGRAPHIC REGION - 9/30/00
UNITED STATES 41.5%
EUROPE 25.9%
JAPAN 27.7%
CANADA 2.2%
LATIN AMERICA 2.1%
ASIA/PACIFIC RIM 0.6%
GLOBAL ALLOCATION
The accompanying chart presents the Fund's holdings by geographic region
as of September 30, 2000. 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.
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.
3
<PAGE>
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
UNITED STATES: HARD OR SOFT LANDING?
The Federal Reserve Board ("the Fed") has raised short-term interest rates
by 1.75% since June of 1999. These rate increases, together with higher energy
prices, are expected to slow gross domestic product (GDP) growth from 5.3% this
year to a more sustainable 3.5% in 2001. Consequently, earnings growth for the
S&P 500 is anticipated to fall from 18% to 10%. Much of this is already
reflected in the market as companies like Dell, Intel, and Home Depot have
announced downward earnings revisions.
As stated above, oil will be the driver for the U.S. economy over the next
several months. We agree with Federal Reserve Chairman Alan Greenspan's view
that: "It would certainly seem that, with inventories building and the spot
price of crude oil well above its long-term equilibrium, spot prices would
shortly be under significant downward pressure." If per barrel oil prices fall
back to the mid-twenties, we envision a revival in GDP growth and a favorable
environment for financial assets. Lower oil prices will reduce headline
inflation numbers, which in turn will limit future interest rate hikes.
Meanwhile, renewed consumer confidence, and a degree of fiscal stimulus (i.e.
tax cuts) from the new administration, should further buoy the economy.
EUROPE: WITHER THE EURO?
As in the U.S., the key issue in the Euro zone is the pace of economic
growth next year. Despite higher interest rates and energy prices, real GDP is
expected to grow by 3.5% this year and 3.0% in 2001. These projections assume
lower oil prices and a stronger Euro. If present trends continue, inflation will
rise and the European Central Bank (ECB) will be forced to raise interest rates
further. Again, much of this has been anticipated as earnings growth is expected
to fall from 23% this year to 11% next year.
The main uncertainty remains the fate of the Euro. The currency recently
fell to an all time low of 83.30, down 28% from its January 1999 inception.
Central bank intervention has failed to establish a "floor" on the currency.
While the prospect of weaker Euro zone growth in the short term suggests little
chance of a speedy recovery, we expect the currency to rebound next year as GDP
growth converges with the US and interest rate differentials narrow. In the
meantime, the weaker Euro is a benefit to European exporters. In short, we
believe falling oil prices will be the catalyst for lower interest rates,
reduced inflation, and rising real incomes. The current economic easing is
likely to prove to be a dip rather than a depression.
4
<PAGE>
JAPAN: SELF-SUSTAINING RECOVERY?
In October, The Bank of Japan (BOJ) left its official view of the economy
unchanged stating that: "...the Japanese economy is recovering gradually, with
corporate profits and fixed investments continuing to increase." Private
economists agree, although the range of forecasts differs widely. Optimists see
the economy growing by 3.7% this year and 3.6% next, while others expect a more
modest recovery of 1.5% and 0.4%, respectively. We favor the optimists. Our view
is supported by a number of positive indicators: the quarterly Tankan survey
showed business confidence rising to its best level in three years, industrial
production is increasing, and leading indicators are pointing up. Even the
dormant consumer has begun to show signs of life, as department store sales in
Tokyo rose for the first time in seven months. However, there are still risks.
The BOJ's August interest rate hike, the first in a decade, may stymie the
recovery. Higher oil prices and slower global growth could curtail exports.
Nevertheless, the improving economic environment is translating into stronger
profit growth. By the end of September, for companies whose fiscal year ends in
March 2001, the mean upward revision to consolidated recurring profit was 15%
and upgrades outpaced downgrades by two to one.
LET'S TALK CONVERTS
BURR-BROWN CORP. (4.25%, 02/15/07) is a global developer, manufacturer, and
marketer of analog and mixed signal integrated circuits. In August, Texas
Instruments (TXN - $47.50 - NYSE) purchased the company for $7.6 billion in
stock. Texas Instruments is the world's leader in digital signal processors
(DSPs) and analog semiconductors. DSPs are an important component of digital
electronic equipment and are used in such products as cars, camcorders, modems
and VCRs. Last year, TXN had sales of $9.5 billion, of which two-thirds were
outside of the United States.
With the stock at $47.50, the convertible trades at 132.375% on a 24% premium to
parity and enjoys a 3.0% yield advantage over the common stock.
GROUPE BRUXELLES LAMBERT SA (2.50%, 07/09/03) is a Belgian-based holding company
with interests in utility, media, and manufacturing businesses. The company's
main holdings include a 30% stake in RTL (which owns approximately 40 television
and radio stations in 11 European countries), a 2.6% stake in oil company
TotalFina Elf, and a 6.8% stake in the utility company Suez Lyonnaise des Eaux.
We believe Groupe Bruxelles is an attractive investment because its share price
trades at over a 40% discount to the current market value of its holdings. Given
the current restructuring trends in Europe, we do not believe this level of
discount is warranted.
With the stock at 275 Euros, the convertible trades at 115.375% on an 8%
premium.
NEC CORP. (ZERO COUPON, 03/30/07) is a one hundred year-old Tokyo-based
manufacturer and marketer of a wide range of computers, electrical components
and equipment. It also produces cellular phones, communication systems, and
other telecommunication devices. NEC is the second largest worldwide supplier of
computer chips. In the fiscal year ended March 2000, the company began a
substantial turnaround, earning 10.4 billion yen ($99 million) on sales of 4.9
trillion yen ($48 billion).
The convertible, rated BBB by Mikuni, trades at 104% with the common stock at
2,455 Japanese yen, which is a 36% premium.
5
<PAGE>
NIHON DEMPA KOGYO CO. LTD. (DEMPA KOGY DEMPA) (0.90%, 09/28/01) is a Japanese
company that manufactures synthetic quartz and quartz-related products including
filters, oscillators, and resonators for electronic applications. The company's
revenues grew by 20% in the fiscal year ended March 2000 to 56.5 billion yen
($540 million) while operating profits rose by 162%.
With the stock at 5,580 yen, the convertible is trading at 127%, which is a
slight discount to parity of 130%.
PORTUGAL TELECOM INTERNATIONAL FINANCE (1.50%, 06/07/04) provides the majority
of domestic and international fixed telephone services in Portugal, along with a
growing share of cellular, cable TV, and multimedia services. The company
recently joined forces with Commerce One Inc., a leading e-commerce company, to
create a new business-to-business electronic marketplace (PT Electronic
Marketplace). Portugal Telecom has also acquired control of wireless phone
services in Brazil (Telesp Cellular) and Morocco, where there is significant
demand for wireless products.
The convertible, which is rated A+ by Standard and Poor's, trades at 117.50% on
an 8% premium with the stock at 11.65 Euros.
SATO CORP. (0.55%, 09/30/03) manufactures price labeling equipment, including
bar code hand labelers and electronic printers. The company also produces weight
labels and merchandise seals. Sato has international operations in Malaysia,
Singapore, the United States and the United Kingdom. Sato has been effectively
controlling costs while developing its global distribution network through its
overseas subsidiaries.
This bond trades at 135% on a 3% premium with the stock at 2,940 yen.
SWISS LIFE FINANCE LTD. (2.00%, 05/20/03) is convertible into shares of Glaxo
Wellcome. Glaxo Wellcome (GLX - $60.4375 - NYSE), a U.K. based company, is a
leading producer of pharmaceuticals for a variety of health areas including
respiratory ailments (which make up 30% of sales), epilepsy, HIV, and
indigestion. In 1981, Glaxo introduced one of its most successful drugs, Zantac
(for heartburn), which boosted the company to the top of the anti-ulcer drug
market in the U.S. GLX looks for large cost savings from its merger with rival
SmithKline Beecham.
With the stock at 20.48 British pounds, the convertible trades at 101% on a 24%
premium and 2% current yield.
TELEFONOS DE MEXICO, SA (4.25%, 06/15/04), also known as Telmex, provides a wide
range of telecommunication services from local and long distance to cellular,
throughout Mexico. Telmex also provides other related telecommunication services
such as directory services and Internet access. In fact, Telmex controls about
75% of the Mexican long distance market and just launched T1msn.com, a
Spanish-language Internet portal, with Microsoft.
This bond trades at 125% with the stock at $53.125, which is a 12% conversion
premium with a 1.8% yield advantage.
6
<PAGE>
UNITED STATES CELLULAR CORP. (ZERO COUPON, 06/13/15) is a Chicago-based wireless
telecommunications provider with 2.8 million subscribers in 26 states. Its
properties are clustered throughout rural areas in the Midwest, Mid-Atlantic,
Southwest, and New England. The company reported strong subscriber growth in the
third quarter, up 45% from the same period last year, while churn rates for
postpay customers fell to 1.8%. The company continued its share buyback program
in the quarter and has authorized an additional repurchase of up to 1.4 million
shares or 1.6% of shares outstanding.
The BBB+ rated zero coupon convertible bonds were issued at a price of 30.64% in
June of 1995. With the stock at $70, they now trade at 65.30% on a slight
discount to parity.
YAMANOUCHI PHARMACEUTICAL CO. LTD. (1.50%, 12/31/02) is Japan's third largest
drug maker. In the fiscal year ended March 2000, the company had sales of 433
billion yen (over $4 billion). Yamanouchi licensed the rights to sell Lipitor,
the cholesterol-lowering drug, in Japan. Sales of the drug have gotten off to a
promising start and are expected to increase further as hospitals adopt its use.
The company recently upgraded its sales and profit forecasts for the remainder
of this fiscal year due to the expansion of its business, tax changes, and asset
disposals.
The bond trades on an 8% premium at 155% with the stock at 5,200 yen.
MINIMUM INITIAL INVESTMENT - $1,000
The Fund's minimum initial investment for regular accounts is $1,000.
There are no subsequent investment minimums. No initial minimum is required for
those establishing an Automatic Investment Plan. Additionally, the Fund and
other Gabelli Funds are available through the no-transaction fee programs at
many major brokerage firms.
WWW.GABELLI.COM
Please visit us on the Internet. Our homepage 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 third quarter, the process of adjustment from liquidity-induced
recovery to sustainable growth continued. A number of issues remain to be
resolved: energy, the Euro, elections, and the economy. However, we believe a
repeat of a 1970's style recession is unlikely. With inflation under control and
central banks near the end of their tightening cycle, we anticipate that lower
oil prices will prove the catalyst for renewed economic growth. We believe a
global convertible portfolio offers investors an attractive way to participate
in this recovery while at the same time reducing the inherent volatility of the
new economy.
7
<PAGE>
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/ SIGNATURE
A. HARTSWELL WOODSON, III
Portfolio Manager
October 16, 2000
<TABLE>
-------------------------------------------------------------------------------------------------
<CAPTION>
MONTHLY DISTRIBUTIONS -- $0.10 PER SHARE
----------------------------------------
Reinvestment Date Reinvestment Price Reinvestment Date Reinvestment Price
----------------- ------------------ ----------------- ------------------
<S> <C> <C> <C>
January 27, 2000 $14.05 June 28, 2000 $13.3
February 25, 2000 $15.28 July 27, 2000 $12.8
March 29, 2000 $15.26 August 29, 2000 $12.5
April 26, 2000 $13.64 September 27, 2000 $11.6
May 26, 2000 $12.62
-------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
TOP TEN HOLDINGS
SEPTEMBER 30, 2000
------------------
Comverse Technology Inc. Sato Corp.
Sanyo Electric Co. Ltd. Nihon Denpa Kogyo Co. Ltd. (Dempa Kogy Dempa)
Swiss Life Finance Ltd. Clear Channel Communications Inc.
United States Cellular Corp. Groupe Bruxelles Lambert SA
Daiwa Securities Group Inc. Cregem Finance NV
--------------------------------------------------------------------------------
NOTE: The views expressed in this report reflect those of the portfolio manager
only through the end of the period stated in this report. The manager's views
are subject to change at any time based on market and other conditions.
8
<PAGE>
THE GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
CORPORATE BONDS -- 77.3%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.5%
$ 125,000 Standard Motor Products Inc., Sub. Deb. Cv.
6.75%, 07/15/09 .......................... $ 64,375
--------------
BROADCASTING -- 8.7%
300,000(c) Canal Plus / Mediaset, Sub. Deb. Cv.
3.50%, 04/01/02 .......................... 151,744
300,000 Clear Channel Communications Inc.,
2.63%, 04/01/03 .......................... 329,250
700,000(d) Groupe Bruxelles Lambert SA, Sub. Deb. Cv.
2.50%, 07/09/03 .......................... 322,253
15,000,000(b) Tokyo Broadcasting System Inc.,
Sub. Deb. Cv.
1.80%, 03/31/03 .......................... 244,448
--------------
1,047,695
--------------
BUSINESS SERVICES -- 1.3%
100,000 Omnicom Group Inc.,
2.25%, 01/06/13 .......................... 153,625
--------------
COMPUTER SOFTWARE AND SERVICES -- 2.1%
22,000,000(b) Capcom Co. Ltd., Cv.
1.00%, 09/30/05 .......................... 254,692
--------------
DIVERSIFIED INDUSTRIAL -- 7.4%
100,000 Comverse Technology Inc., Cv.
4.50%, 07/01/05 .......................... 510,125
200,000(d) Elektrim Finance, Sub. Deb. Cv.
3.75%, 07/02/04 .......................... 165,455
20,000,000(b) Nippon Ceramic Co. Ltd., Cv.
0.30%, 12/30/05 .......................... 221,173
--------------
896,753
--------------
ELECTRONICS -- 15.2%
200,000 Burr-Brown Corp. Sub. Deb. Cv.
4.25%, 02/15/07(a) ....................... 266,000
200,000 Cypress Semiconductor Corp., Cv.
4.00%, 02/01/05 .......................... 227,500
20,000,000(b) NEC Corp., Cv.
Zero Coupon, 03/30/07 ................... 193,596
30,000,000(b) Nihon Denpa Kogyo Co. Ltd.
(Dempa Kogy Dempa),
0.90%, 09/28/01 .......................... 352,582
Sanyo Electric Co. Ltd., Cv.
12,000,000(b) 1.70%, 11/29/02 .......................... 182,010
20,000,000(b) 1.60%, 11/30/04 .......................... 225,245
10,000,000(b) Sony Corp., Sub. Deb. Cv.
1.40%, 03/31/05 .......................... 259,115
100,000 STMicroelectronics NV,
Zero Coupon, 09/22/09 .................... 132,750
--------------
1,838,798
--------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
ENERGY AND UTILITIES -- 3.9%
251,460(d) Belgelectric Finance BV, Cv.
1.50%, 08/04/04 .......................... $ 246,528
$ 110,000 Devon Energy Corp.,
4.95%, 08/15/08 .......................... 106,975
100,000 Diamond Offshore Drilling Inc., Sub. Deb. Cv.
3.75%, 02/15/07 .......................... 113,375
--------------
466,878
--------------
EQUIPMENT AND SUPPLIES -- 4.7%
150,000 Antec Corp., Sub. Deb. Cv.
4.50%, 05/15/03 .......................... 192,000
30,000,000(b) Sato Corp., Sub. Deb. Cv.
0.55%, 09/30/03 .......................... 374,792
--------------
566,792
--------------
FINANCIAL SERVICES -- 14.1%
250,000 Cregem Finance NV, Sub. Deb. Cv.
5.75%, 09/15/02 .......................... 303,362
30,000,000(b) Daiwa Securities Group Inc., Sub. Deb. Cv.
0.50%, 09/29/06 .......................... 374,792
200,000(d) Deutsche Bank Finance NV, Sub. Deb. Cv.
2.00%, 12/22/03 .......................... 197,010
125,775(d) Finaxa, Sub. Deb. Cv.
3.00%, 01/01/27 .......................... 201,193
99,994(d) Finmeccanica SpA, Cv.
2.00%, 06/08/05(a) ....................... 86,587
400,000 Swiss Life Finance Ltd., Cv.
2.00%, 05/20/03 .......................... 399,520
300,000 Wertt AG Versich-Beteil,
2.25%, 04/17/08 .......................... 136,707
--------------
1,699,171
--------------
HEALTH CARE -- 6.5%
200,000 Centocor Inc., Sub. Deb. Cv.
4.75%, 02/15/05 .......................... 257,000
20,000,000(b) Rohto Pharmaceutical Co. Ltd., Cv.
1.20%, 03/29/02 .......................... 244,494
20,000,000(b) Yamanouchi Pharmaceutical Co. Ltd., Cv.
1.50%, 12/31/02 .......................... 286,693
--------------
788,187
--------------
PUBLISHING -- 3.3%
100,000(e) Daily Mail & General Trust plc,
2.50%, 10/05/04 .......................... 208,838
250,000 Medya Holding, Sub. Deb. Cv.
10.00%, 06/28/01 ......................... 188,750
--------------
397,588
--------------
TELECOMMUNICATIONS -- 6.5%
$250,000 Bell Atlantic Financial, Cv.
4.25%, 09/15/05 .......................... 280,938
250,000(d) Portugal Telecom International Finance,
Sub. Deb. Cv.
1.50%, 06/07/04 .......................... 260,040
9
<PAGE>
THE GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
CORPORATE BONDS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
$ 200,000 Telefonos De Mexico, SA
4.25%, 06/15/04 .......................... $ 249,000
-----------
789,978
-----------
WIRELESS COMMUNICATIONS -- 3.1%
550,000 United States Cellular Corp.,
Zero Coupon, 06/13/15 .................... 376,750
-----------
TOTAL CORPORATE BONDS ..................... 9,341,282
-----------
SHARES
-------
PREFERRED STOCKS -- 18.0%
BUSINESS SERVICES -- 1.8%
4,000 Amdocs Ltd.,
6.75% Cv. Pfd. ........................... 217,750
-----------
CABLE -- 3.4%
6,000 MediaOne Group Inc.,
7.00% Cv. Pfd. ........................... 223,500
4,500 UnitedGlobalCom Inc.,
7.00% Cv. Pfd. (a) ....................... 188,437
-----------
411,937
-----------
DIVERSIFIED INDUSTRIAL -- 1.2%
5,000 Titan Capital Trust,
5.75% Cv. Pfd. ........................... 143,750
-----------
ENERGY AND UTILITIES -- 2.5%
EVI Inc.,
300 5.00% Cv. Pfd. ........................... 14,362
4,000 5.00% Cv. Pfd. (a) ....................... 191,500
1,500 Southern Energy Inc.,
6.25% Cv. Pfd. ........................... 99,469
-----------
305,331
-----------
ENTERTAINMENT -- 2.2%
5,000 Seagram Co.,
7.50% Cv. Pfd. ........................... 260,625
-----------
PAPER AND FOREST PRODUCTS -- 0.6%
2,000 Amcor Ltd.,
7.25% Cv. Pfd. ........................... 69,000
-----------
PERSONAL AND MISCELLANEOUS SERVICES -- 0.7%
4,000 Carriage Services Capital Trust,
7.00% Cv. Pfd. ........................... 89,000
-----------
PUBLISHING -- 2.0%
8,000 Reader's Digest Association Inc.,
$1.9336 Cv. Pfd. ......................... 248,000
-----------
TELECOMMUNICATIONS -- 2.6%
5,000 BroadWing Inc.,
6.75% Cv. Pfd., Ser. B ................... 233,125
MARKET
SHARES VALUE
------ -----
Global Telesystems Group Inc.,
4,000 7.25% Cv. Pfd. ........................... $ 42,500
4,000 7.25% Cv. Pfd.(a) ........................ 42,500
-----------
318,125
-----------
WIRELESS COMMUNICATIONS -- 1.0%
4,000 Winstar Communications Inc.,
7.00% Cv. Pfd. ........................... 118,000
-----------
TOTAL PREFERRED STOCKS .................... 2,181,518
-----------
COMMON STOCKS -- 0.7%
ELECTRONICS -- 0.7%
1,949 Intel Corp. ............................... 81,127
-----------
TOTAL INVESTMENTS -- 96.0%
(Cost $11,699,705) ....................... 11,603,927
OTHER ASSETS AND
LIABILITIES (NET) -- 4.0% ................ 488,367
-----------
NET ASSETS -- 100.0%
(1,024,304 shares outstanding) ........... $12,092,294
===========
PRINCIPAL SETTLEMENT UNREALIZED
AMOUNT DATE APPRECIATION
------ ---------- ------------
FORWARD FOREIGN EXCHANGE CONTRACTS
207,680,000(b) Deliver Japanese Yen
in exchange for
USD 1,973,811 ............. 02/16/01 $ 26,171
194,760,000(b) Deliver Japanese Yen
in exchange for
USD 1,891,723 ............. 06/27/01 108,263
----------
$ 134,434
=========
------------------------
(a) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At September 30,
2000, the market value of Rule 144A securities amounted to $775,024 or 6.4%
of total net assets.
(b) Principal amount denoted in Japanese Yen.
(c) Principal amount denoted in French Francs.
(d) Principal amount denoted in Euros.
(e) Principal amount denoted in British Pounds.
% OF MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
-------------------------- ----------- -----------
North America ............... 43.7% $ 5,071,558
Latin America ............... 2.1% 249,000
Europe ...................... 25.9% 3,000,737
Asia/Pacific Rim ............ 0.6% 69,000
Japan ....................... 27.7% 3,213,632
------ -----------
100.0% $11,603,927
====== ===========
10
<PAGE>
--------------------------------------------------------------------------------
GABELLI FAMILY OF FUNDS
--------------------------------------------------------------------------------
GABELLI ASSET FUND ________________________
Seeks to invest primarily in a diversified portfolio of common stocks selling at
significant discounts to their private market value. The Fund's primary
objective is growth of capital. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI GROWTH FUND _______________________
Seeks to invest primarily in large cap stocks believed to have favorable, yet
undervalued, prospects for earnings growth. The Fund's primary objective is
capital appreciation. (NO-LOAD)
PORTFOLIO MANAGER: HOWARD F. WARD, CFA
GABELLI WESTWOOD EQUITY FUND _____________
Seeks to invest primarily in the common stock of seasoned companies believed to
have proven records and above average historical earnings growth. The Fund's
primary objective is capital appreciation. (NO-LOAD)
PORTFOLIO MANAGER: SUSAN M. BYRNE
GABELLI SMALL CAP GROWTH FUND ____________
Seeks to invest primarily in common stock of smaller companies (market
capitalizations less than $500 million) believed to have rapid revenue and
earnings growth potential. The Fund's primary objective is capital appreciation.
(NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI BLUE CHIP VALUE FUND ______________
Seeks long-term growth of capital through investment primarily in the common
stocks of well-established, high quality companies that have market
capitalizations of greater than $5 billion.
(NO-LOAD) PORTFOLIO MANAGER: BARBARA MARCIN, CFA
GABELLI WESTWOOD SMALLCAP EQUITY FUND ___________
Seeks to invest primarily in smaller capitalization equity securities - market
caps of $1 billion or less. The Fund's primary objective is long-term capital
appreciation. (NO-LOAD)
PORTFOLIO MANAGER: LYNDA CALKIN, CFA
GABELLI WESTWOOD INTERMEDIATE BOND FUND __________
Seeks to invest in a diversified portfolio of bonds with various maturities. The
Fund's primary objective is total return. (NO-LOAD)
PORTFOLIO MANAGER: PATRICIA FRAZE
GABELLI EQUITY INCOME FUND ________________
Seeks to invest primarily in equity securities with above market average yields.
The Fund pays quarterly dividends and seeks a high level of total return with an
emphasis on income. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI WESTWOOD BALANCED FUND __________
Seeks to invest in a balanced and diversified portfolio of stocks and bonds. The
Fund's primary objective is both capital appreciation and current income.
(NO-LOAD)
PORTFOLIO MANAGERS: SUSAN M. BYRNE & PATRICIA FRAZE
GABELLI WESTWOOD MIGHTY MITES[SERVICE MARK} FUND _____
Seeks to invest in micro-cap companies that have market capitalizations of $300
million or less. The Fund's primary objective is long-term capital appreciation.
(NO-LOAD)
TEAM MANAGED: MARIO J. GABELLI, CFA,
MARC J. GABELLI, LAURA K. LINEHAN AND
WALTER K. WALSH
GABELLI VALUE FUND ________________________
Seeks to invest in securities of companies believed to be undervalued. The
Fund's primary objective is long-term capital appreciation.
MAX. SALES CHARGE: 51/2%
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI UTILITIES FUND ______________________
Seeks to provide a high level of total return through a combination of capital
appreciation and current income. (NO-LOAD)
PORTFOLIO MANAGER: TIMOTHY O'BRIEN, CFA
GABELLI ABC FUND _________________________
Seeks to invest in securities with attractive opportunities for appreciation or
investment income. The Fund's primary objective is total return in various
market conditions without excessive risk of capital loss. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI MATHERS FUND _____________________
Seeks long-term capital appreciation in various market conditions without
excessive risk of capital loss. (NO-LOAD)
PORTFOLIO MANAGER: HENRY VAN DER EB, CFA
GABELLI U.S. TREASURY MONEY MARKET FUND ____________
Seeks to invest exclusively in short-term U.S. Treasury securities. The Fund's
primary objective is to provide high current income consistent with the
preservation of principal and liquidity.
(NO-LOAD) PORTFOLIO MANAGER: JUDITH A. RANERI
GABELLI CASH MANAGEMENT SHARES OF
THE TREASURER'S FUND ______________________
Three money market portfolios designed to generate superior returns without
compromising portfolio safety. U.S. Treasury Money Market seeks to invest in
U.S. Treasury bills, notes and bonds. Tax Exempt Money Market seeks to invest in
municipal securities. Domestic Prime Money Market seeks to invest in prime
quality, domestic money market instruments. (NO-LOAD)
PORTFOLIO MANAGER: JUDITH A. RANERI
AN INVESTMENT IN THE ABOVE MONEY MARKET FUNDS IS NEITHER INSURED NOR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY GOVERNMENT AGENCY. ALTHOUGH
THE FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS.
GLOBAL SERIES
GABELLI GLOBAL TELECOMMUNICATIONS FUND
Seeks to invest in telecommunications companies throughout the world -
targeting undervalued companies with strong earnings and cash flow dynamics.
The Fund's primary objective is capital appreciation. (NO-LOAD)
TEAM MANAGED: MARIO J. GABELLI, CFA,
MARC J. GABELLI AND IVAN ARTEAGA, CFA
GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
Seeks to invest principally in bonds and preferred stocks which are
convertible into common stock of foreign and domestic companies. The Fund's
primary objective is total return through a combination of current income and
capital appreciation. (NO-LOAD) PORTFOLIO MANAGER: HART WOODSON
GABELLI GLOBAL GROWTH FUND
Seeks capital appreciation through a disciplined investment program focusing
on the globalization and interactivity of the world's marketplace. The Fund
invests in companies at the forefront of accelerated growth. The Fund's
primary objective is capital appreciation. (NO-LOAD)
PORTFOLIO MANAGER: MARC J. GABELLI
GABELLI GLOBAL OPPORTUNITY FUND
Seeks to invest in common stock of companies which have rapid growth in
revenues and earnings and potential for above average capital appreciation or
are undervalued. The Fund's primary objective is capital appreciation.
(NO-LOAD)
PORTFOLIO MANAGERS: MARC J. GABELLI
AND CAESAR BRYAN
GABELLI GOLD FUND _________________________
Seeks to invest in a global portfolio of equity securities of gold mining and
related companies. The Fund's objective is long-term capital appreciation.
Investment in gold stocks is considered speculative and is affected by a
variety of world-wide economic, financial and political factors. (NO-LOAD)
PORTFOLIO MANAGER: CAESAR BRYAN
GABELLI INTERNATIONAL GROWTH FUND __________
Seeks to invest in the equity securities of foreign issuers with long-term
capital appreciation potential. The Fund offers investors global
diversification. (NO-LOAD)
PORTFOLIO MANAGER: CAESAR BRYAN
THE SIX FUNDS ABOVE INVEST IN FOREIGN SECURITIES WHICH INVOLVES RISKS NOT
ORDINARILY ASSOCIATED WITH INVESTMENTS IN DOMESTIC ISSUES, INCLUDING CURRENCY
FLUCTUATION, ECONOMIC AND POLITICAL RISKS. THE FUNDS LISTED ABOVE ARE
DISTRIBUTED BY GABELLI & COMPANY, INC.
--------------------------------------------------------------------------------
TO RECEIVE A PROSPECTUS, CALL 1-800-GABELLI (422-3554). THE
PROSPECTUS GIVES A MORE COMPLETE DESCRIPTION OF THE FUND,
INCLUDING FEES AND EXPENSES. READ THE PROSPECTUS CAREFULLY
BEFORE YOU INVEST OR SEND MONEY.
VISIT OUR WEBSITE AT:
www.gabelli.com
OR, CALL:
1-800-GABELLI
1-800-422-3554 [BULLET] 914-921-5100 [BULLET] FAX: 914-921-5118
[BULLET] [email protected]
ONE CORPORATE CENTER, RYE, NEW YORK 10580
<PAGE>
Gabelli Global Series Funds, Inc.
THE GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
One Corporate Center
Rye, New York 10580-1434
1-800-GABELLI
[1-800-422-3554]
FAX: 1-914-921-5118
HTTP://WWW.GABELLI.COM
E-MAIL: [email protected]
(Net Asset Value may be obtained daily by calling
1-800-GABELLI after 6:00 P.M.)
BOARD OF DIRECTORS
Mario J. Gabelli, CFA 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 MEDICAL DIRECTOR
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
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
GAB441Q300SR
[PHOTO OF MARIO GABELLI OMITTED]
THE
GABELLI
GLOBAL
CONVERTIBLE
SECURITIES
FUND
THIRD QUARTER REPORT
SEPTEMBER 30, 2000
