[GRAPHIC OF FLAGS OMITTED]
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
THIRD QUARTER REPORT
SEPTEMBER 30, 2000
[GRAPHIC OF 5 STARS OMITTED]
MORNINGSTAR RATED[TRADEMARK] GABELLI GLOBAL
TELECOMMUNICATIONS FUND 5 STARS OVERALL AND FOR THE
THREE-YEAR PERIOD ENDED 09/30/00 AMONG 3876 DOMESTIC EQUITY
FUNDS, AND FOR THE FIVE-YEAR PERIOD
ENDED 09/30/00 AMONG 2419 DOMESTIC EQUITY FUNDS.
TO OUR SHAREHOLDERS,
Telecommunications stocks continued to struggle in the third quarter of
2000. Profit taking, concern over valuations, a slowdown in headline-making
deals, and pricing pressure in the most competitive sectors of the industry
combined to undermine U.S. telecommunications stocks. With rising oil prices and
the plummeting Euro threatening economic growth on the continent, European
telecommunications stocks declined sharply.
Looking ahead, it may take some time for the clouds over the
telecommunications industry to dissipate. However, the longer term outlook
remains promising, with technology, deregulation, and consolidation continuing
to propel business values.
INVESTMENT PERFORMANCE
For the third quarter ended September 30, 2000, The Gabelli Global
Telecommunications Fund Class AAA Shares' (the "Fund") net asset value declined
6.18%. The Morgan Stanley Capital International World Free Index of global
equity markets and Salomon Smith Barney Global Telecommunications Index declined
5.42% and 16.62%, respectively, over the same period. Each index is an unmanaged
indicator of stock market performance. The Fund was up 15.84% over the trailing
twelve-month period. The Morgan Stanley World Free Index and Salomon Smith
Barney Global Telecommunications Index rose 8.01% and 19.80%, respectively, over
the same twelve-month period.
For the five-year period ended September 30, 2000, the Fund's total return
averaged 25.71% annually, versus average annual returns of 14.13% and 20.22% for
the Morgan Stanley World Free Index and Salomon Smith Barney Global
Telecommunications Index, respectively. Since inception on November 1, 1993
through September 30, 2000, the Fund had a cumulative total return of 256.00%,
which equates to an average annual total return of 20.14%.
--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Morningstar proprietary
ratings reflect historical risk adjusted performance as of September 30, 2000
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>
<TABLE>
<CAPTION>
INVESTMENT RESULTS (CLASS AAA SHARES) (a)
-------------------------------------------------------------------------------------------------------------
Quarter
-----------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
<S> <C> <C> <C> <C> <C>
2000: Net Asset Value .................... $28.28 $25.41 $23.84 -- --
Total Return ....................... 4.9% (10.2)% (6.2)% -- --
-------------------------------------------------------------------------------------------------------------
1999: Net Asset Value .................... $19.18 $21.95 $22.88 $26.95 $26.95
Total Return ....................... 15.4% 14.4% 4.2% 31.0% 80.3%
-------------------------------------------------------------------------------------------------------------
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)
-------------------------------------------------------------------------------------------------------------
</TABLE>
-----------------------------------------------------------
Average Annual Return (Class AAA)
---------------------------------
September 30, 2000 (a)
----------------------
1 Year .................................... 15.84%
5 Year .................................... 25.71%
Life of Fund (b) .......................... 20.14%
-----------------------------------------------------------
Dividend History
-------------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
----------------- -------------- ------------------
December 27, 1999 $2.940 $26.31
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 for Class AAAShares. 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.
--------------------------------------------------------------------------------
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
Telecommunications Fund Class A Shares, Class B Shares and Class C Shares
declined 6.22%, 6.30% and 6.30%, respectively. The Class A Shares, Class B
Shares and Class C Shares ended the third quarter with net asset values of
$23.84, $23.80 and $23.80, respectively.
2
<PAGE>
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.
INDUSTRY ALLOCATION
The accompanying chart depicts the Fund's holdings by industry sector as
of September 30, 2000. Industry sectors represented in the chart and below may
or may not be included in the Fund's future portfolio.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
HOLDINGS BY GEOGRAPHIC REGION - 9/30/00
UNITED STATES 55.2%
CASH 13.9%
EUROPE 10.5%
CANADA 7.3%
ASIA/PACIFIC RIM 5.6%
JAPAN 4.5%
LATIN AMERICA 3.0%
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
HOLDINGS BY INDUSTRY SECTOR - 9/30/00
WIRELESS/SATELITE 30.7%
LOCAL 16.4%
CASH 13.9%
NATIONAL 13.5%
CABLE/MEDIA 11.0%
LONG DISTANCE 5.8%
EQUIPMENT 4.3%
UTILITIES 2.7%
BROADBAND 0.9%
BUSINESS SERVICES 0.8%
COMMENTARY
A PAUSE THAT REFRESHES?
Telecommunications stocks produced exceptional returns in the 1997-99
period. This year, they have been badly tarnished. This is partially the result
of good old-fashioned profit taking in stocks that had delivered spectacular
returns and whose valuations had become somewhat extended.
However, there are other factors that have temporarily soured investors on
telecommunication stocks. The number of blockbuster deals has decreased as U.S.
regulators have voiced concerns over anti-competitive issues and European
governments have gotten in the way of cross border telecom transactions. The
WorldCom/Sprint merger has been derailed by U.S. regulators, forcing
international telephone giants like Deutsche Telecom to put some of their plans
for expansion into the U.S. on hold. The government of the Netherlands killed a
proposed merger of Royal KPN and Telefonica de Espana, and Norway and Sweden
couldn't come to terms over the proposed combination of Telia and Telenor.
Smaller deals are getting done; however, these deals don't generate the kind of
headlines that captivate investors.
Is the global consolidation of the telecommunications industry threatened
by anti-trust regulators and the nationalistic impulses of foreign governments?
In our opinion, only temporarily. Further consolidation makes economic sense in
the increasingly global marketplace for seamless telecommunications networks and
services. We don't think anti-trust regulators have the political support here
or abroad to stall deals for long, and we have confidence that foreign
governments will eventually realize that globalization is essential to survival.
3
<PAGE>
The constricted capital markets are also causing some disruption. As a
result of the "dot.com" stock massacre, the new issue market appears to be
closed for the season and venture capital firms have pulled in their horns.
Internet start-ups are not the only companies being hurt. Some very promising
young telecommunications companies are just not going to be able to survive
without being able to tap the equities or venture capital markets for cash
infusions. These cash-burn casualties will be bought up by larger entities at
bottom basement prices, indiscriminately depressing asset values for more worthy
competitors. For example, Time Warner Telecom scooped up bankrupt Competitive
Local Exchange Carrier (CLEC) GST Communications at a fire sale price. Shortly
thereafter, virtually every CLEC stock got shelled. Guilt by association doesn't
hold up in court. The innocent will be vindicated in the market as well.
Telecommunications companies do face serious challenges in the years
ahead. Not all will succeed. The long distance telephony market is besieged by
cutthroat competition and pricing. This will likely continue for the foreseeable
future as margins and earnings are sacrificed on the altar of market share.
Well-financed CLECs will continue to take market share from the Regional Bell
Operating Companies (RBOCs). As new technologies are developed, other
established telecommunications franchises will lose market share to
technologically superior upstarts.
All things considered, how do we feel about the media and
telecommunications stocks that have rewarded us so generously over the past
several years, but performed so poorly in 2000? Just fine thank you. Rapid
change presents risks and opportunities. There are going to be big winners and
losers in the telecommunications industry. Going forward, stock selection will
be the key to making money in these dynamic industries.
THE SCORECARD
Losers outnumbered winners in the portfolio in the third quarter 2000. We
saw good gains in wireless service providers Leap Wireless and Telephone & Data
Systems. Some of our Energy and Utilities holdings, including El Paso Electric
Company and SCANA Corporation, also performed well. Broadcasters Paxson
Communications and Chris-Craft, which is being acquired by News Corp., posted
good gains.
European telecommunications stocks dominated our losers list, with Royal
KPN, Deutsche Telekom, and France Telecom declining sharply. Sprint and WorldCom
both fell this quarter after their proposed merger was effectively killed by
anti-trust complications. Telecommunication equipment giant Lucent Technologies
continued to be punished for flagging earnings.
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 the following holdings are stated in U.S. dollar
equivalent terms as of September 30, 2000.
4
<PAGE>
AT&T WIRELESS GROUP (AWE - $20.875 - NYSE), owned by AT&T Corp., is the third
largest wireless carrier in the U.S., with licenses covering about 200 million
people and serving over 10 million customers. The company was spun-off as a
tracking stock with AT&T maintaining majority control. AWE is intended to track
the performance of fixed and mobile wireless initiatives of AT&T. AT&T plans to
distribute its remaining ownership of AWE to its shareholders within the next
six to twelve months.
CABLE & WIRELESS PLC (CWP - $14.27 - NYSE) is a United Kingdom-based provider of
global telecommunications network services. Its key assets include: ownership in
leading voice, data & ISP networks in the U.K. and U.S.; numerous stakes in
undersea telecom network routes; and a strong regional presence in Asia/Pacific,
Europe and the Caribbean/Latin America. Sale of Cable & Wireless HKT plc to
Pacific Century Cyberworks (PCW - $11.00 - NYSE) closed on August 17, 2000. As a
result of this transaction, CWP will hold a meaningful position in PCW.
CENTURYTEL INC. (CTL - $27.25 - NYSE), based in Monroe, Louisiana, is the eighth
largest local telephone company in the U.S., with over 1.2 million access lines
in the south and midwest. CenturyTel also has over 700,000 cellular customers.
Through acquisitions, CTL has created clusters of rural telephone and cellular
companies within commuting distance of metropolitan areas in states including
Wisconsin, Michigan, Ohio, Louisiana and Arkansas. With the $2.2 billion
acquisition of Portland-based Pacific Telecom, CTL has added seven states, ten
cellular markets and 640,000 access lines to its customer base. The acquired
operations have nearly doubled Century's revenues. The company recently
announced that it is acquiring about 460,000 access lines in 3 states for $1.5
billion. The company continues to build value through other ventures, primarily
its long distance and CLEC operations.
LIBERTY MEDIA GROUP (LMG'A - $18.00 - NYSE), run by savvy media investor John
Malone, is engaged in businesses that provide programming services (including
production, acquisition and distribution through all media formats) as well as
businesses engaged in electronic retailing, direct marketing and other services.
LMG holds interests in globally branded entertainment networks such as Discovery
Channel, USA Network, QVC, Encore and STARZ!. Liberty's investment portfolio
also includes interests in international video distribution businesses,
international telephony and domestic wireless companies, 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.
NTT MOBILE COMMUNICATION NETWORK INC. (9437.T - $28,687.77 - TOKYO STOCK
EXCHANGE) is Japan's leading mobile communications provider. The company
provides cellular service, paging service, satellite mobile communications, and
the Personal Handyphone System ("PHS") mobile computing platform. NTT continues
to benefit from the growing trend of mobile data transmission as its I-Mode
system gains popularity. NTT Mobile Communications is now well know as NTT
DoCoMo in Japan.
SBC COMMUNICATIONS INC. (SBC - $50.00 - NYSE) is the second largest regional
Bell operating company in the U.S., with over 60 million domestic and seven
million proportionate international access lines. SBC also serves over 12.2
million domestic and over four million proportionate international wireless
customers. SBC has a strong presence in Europe through its ownership of
TeleDanmark (TLD - $28.125 - NYSE), Belgacom, Cegetel and other companies as
well as in Canada through ownership of Bell Canada (BCICF - $21.625 - Nasdaq)
and in Mexico through Telmex (TMX - $53.1875 - NYSE). In April, SBC announced
the formation of a wireless joint venture with BellSouth (BLS - $40.25 - NYSE).
The combination was complete in October 2000, and resulted in forming Cingular
Wireless, the second
5
<PAGE>
largest wireless carrier in the U.S., behind Verizon Wireless (VZ - 48.4375 -
NYSE), serving over 19 million customers.
TELEPHONE & DATA SYSTEMS INC. (TDS - $110.70 - AMEX) is a diversified
telecommunications service company with cellular telephone, local telephone and
personal communications services ("PCS") operations. TDS serves 3.7 million
customers in 35 states. TDS conducts the vast majority of its cellular
operations through its 81% owned United States Cellular Corp. (USM - $70.00 -
AMEX) and conducts its telephone operations through its wholly-owned TDS
Telecommunications Corp. ("TDS Telecom") subsidiary, a full-service local
exchange carrier. Having completed a merger of its 82%-owned PCS subsidiary
Aerial Communications with VoiceStream Wireless (VSTR - $116.0625 - Nasdaq), TDS
now owns 35.6 million shares of VSTR valued at over $4.0 billion. VSTR is in the
process of being acquired by Deutsche Telecom (DT - $34.25 - NYSE), a former
German phone monopoly, for 3.2 DT shares plus $30 in cash per VSTR share.
U.S. CELLULAR CORP. (USM - $70.00 - AMEX) is an 81% owned subsidiary of TDS and
is a wireless carrier with cellular licenses covering over 25 million people
primarily in rural and suburban markets. USM currently serves over 2.8 million
subscribers and is an important roaming partner for national wireless carriers
such as AT&T Wireless (AWE - $20.875 - NYSE), Verizon Wireless, and Sprint PCS
(PCS - $35.125 - NYSE).
VERIZON COMMUNICATIONS (VZ - $48.4375 - NYSE) was formed by the merger of Bell
Atlantic and GTE, and a combination of the wireless assets of the combined
company with U.S. assets of Vodafone Group plc (VOD - $37.00 - NYSE). Verizon is
one of the world's leading providers of high-growth communications services.
Verizon companies are the largest providers of wireline and wireless
communications in the United States, with 95 million access line equivalents and
25 million wireless customers. Verizon is also the world's largest provider of
print and on-line directory information. Verizon's global presence extends to 40
countries in the Americas, Europe, Asia and the Pacific.
VOICESTREAM WIRELESS CORP. (VSTR - $116.0625 - NASDAQ) is one of the two
remaining independent U.S. national wireless service providers with PCS licenses
covering over 220 million people. VoiceStream was spun-off of Western Wireless
about 18 months ago and is the only national carrier utilizing GSM (Global
System for Mobile Communication) technology, a dominant standard in Europe. VSTR
is in the process of being acquired by Deutsche Telecom, a former German phone
monopoly, for 3.2 Deutsche Telecom shares plus $30 in cash per VSTR share. The
merger is pending regulatory approval and is expected to close in 2001. DT
ownership will provide VSTR with significant financial resources and allow it to
aggressively build out its licensed territory and gain market share in the
growing domestic wireless industry.
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.
6
<PAGE>
WWW.GABELLI.COM
Please 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
Telecommunications stocks enjoyed a long and breathtaking ride from 1997
through 1999. They have retreated in 2000, leaving some investors wondering if
the party is over. We think it is far from over. Consolidation has temporarily
slowed, but we believe the economic necessity of building larger, globally
competitive telecommunications companies will prevail over regulatory restraint
and government interference. There will be profit potholes as technology
continues to change the telecommunications landscape. However,
telecommunications will continue to be a growth business that should continue to
generously reward disciplined selective investors.
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,
/S/ SIGNATURE /S/ SIGNATURE
MARIO J. GABELLI, CFA MARC J. GABELLI
Portfolio Manager and Associate Portfolio Manager
Chief Investment Officer
/S/ SIGNATURE
IVAN ARTEAGA, CFA
Associate Portfolio Manager
October 16, 2000
----------------------------------------------------------------------------
TOP TEN HOLDINGS
SEPTEMBER 30, 2000
------------------
Telephone & Data Systems Inc. CenturyTel Inc.
Verizon Communications AT&TWireless Group
Cable & Wireless plc Liberty Media Group
SBC Communications Inc. NTT Mobile Communication Network Inc.
VoiceStream Wireless Corp. United States Cellular Corp.
-----------------------------------------------------------------------------
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 -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MARKET
SHARES VALUE
------ -----------
COMMON STOCKS -- 86.6%
AEROSPACE -- 1.0%
120,879 Lockheed Martin Corp. ............................ $3,984,172
----------
BROADCASTING -- 1.1%
60,744 CanWest Global Communications Corp. .............. 801,061
35,000 Chris-Craft Industries Inc.+ ..................... 2,883,125
70,000 Paxson Communications Corp., Cl. A+ .............. 805,000
1,000 TiVo Inc.+ ....................................... 19,375
----------
4,508,561
----------
BUILDING AND CONSTRUCTION-- 0.1%
5,330 Bouygues SA ...................................... 268,560
----------
BUSINESS SERVICES -- 0.8%
9,000 Carlisle Holdings Ltd.+ .......................... 71,437
4,000 Convergys Corp.+ ................................. 155,500
18,000 Donnelley (R.H.) Corp. ........................... 380,250
37,000 IDT Corp.+ ....................................... 1,438,375
70,000 Securicor Group plc .............................. 144,117
1,000 StarTek Inc.+ .................................... 29,000
12,600 Vivendi .......................................... 936,183
----------
3,154,862
----------
CABLE -- 4.5%
13,000 Adelphia Communications Corp., Cl. A+ ............ 358,312
11,500 Austar United Communications Ltd.+ ............... 25,846
110,000 Cablevision Systems Corp., Cl. A+ ................ 7,294,375
35,000 Charter Communications Inc., Cl. A+ .............. 569,297
27,000 Comcast Corp., Cl. A ............................. 1,098,562
27,000 Comcast Corp., Cl. A, Special .................... 1,105,312
11,550 Cox Communications Inc.+ ......................... 441,787
24,000 Mediacom Communications Corp.+ ................... 387,000
72,560 NTL Inc.+ ........................................ 3,360,435
25,090 Telewest Communications plc, ADR+ ................ 489,255
105,000 UnitedGlobalCom Inc., Cl. A+ ..................... 3,150,000
10,000 Videotron Groupe ................................. 296,751
----------
18,576,932
----------
COMMUNICATIONS EQUIPMENT -- 4.0%
20,000 360networks Inc.+ ................................ 392,500
200,000 Allen Telecom Inc.+ .............................. 3,387,500
120,000 Champion Technology Holdings, ADR ................ 16,392
15,000 Communications Systems Inc. ...................... 200,625
32,000 Ericsson (L.M.) Telephone Co., Cl. B, ADR ........ 474,000
100,000 Furukawa Electric Co. Ltd. ....................... 2,762,354
2,500 General Semiconductor Inc. ....................... 30,469
17,000 GN Store Nord A/S ................................ 2,412,990
3,500 L-3 Communications Holdings Inc.+ ................ 197,750
6,000 Lucent Technologies Inc. ......................... 183,375
44,625 Motorola Inc. .................................... 1,260,656
28,000 Nokia Corp., Cl. A, ADR .......................... 1,114,750
30,000 Nortel Networks Corp. ............................ 1,786,875
MARKET
SHARES VALUE
------ -----------
24,000 Scientific-Atlanta Inc. .......................... $1,527,000
500 Siemens AG, ADR .................................. 64,307
300,000 Time Engineering Berhad+ ......................... 233,684
15,000 TNT Post Group NV, ADR ........................... 348,750
----------
16,393,977
----------
COMPUTER SOFTWARE AND SERVICES -- 0.4%
1,000 America Online Latin America Inc.+ ............... 7,875
3,230 EarthLink Inc.+ .................................. 29,474
9,000 El Sitio Inc. .................................... 33,750
135,000 Genuity Inc.+ .................................... 881,719
400 Geoworks Corp. ................................... 2,950
2,500 Korea Thrunet Co. Ltd., Cl. A+ ................... 14,687
16,500 NBC Internet Inc., Cl. A+ ........................ 108,281
18,000 Net2Phone Inc.+ .................................. 405,000
3,000 T-Online International AG+ ....................... 66,447
400 Via Net.Works Inc.+ .............................. 3,850
----------
1,554,033
----------
DIVERSIFIED INDUSTRIAL -- 0.1%
25,000 Hutchison Whampoa Ltd. ........................... 331,863
----------
ENERGY AND UTILITIES -- 2.8%
340,000 Conectiv Inc. .................................... 6,077,500
3,000 E'Town Corp. ..................................... 200,625
170,000 El Paso Electric Co.+ ............................ 2,340,900
12,000 Florida Public Utilities Co. ..................... 189,750
10,000 LG&E Energy Corp. ................................ 244,375
5,000 Montana Power Co. ................................ 166,875
36,000 SCANA Corp. ...................................... 1,111,500
8,000 SJW Corp. ........................................ 950,000
----------
11,281,525
----------
ENTERTAINMENT -- 4.4%
2,050 Fisher Companies Inc. ............................ 147,600
68,870 Gemstar-TV Guide International Inc.+ ............. 6,004,603
6,000 Liberty Digital Inc.+ ............................ 121,500
459,998 Liberty Media Group, Cl. A+ ...................... 8,279,964
62,000 Metromedia International Group Inc.+ ............. 231,880
10,000 Seagram Co. ...................................... 574,375
12,000 Time Warner Inc. ................................. 939,000
15,000 USA Networks Inc.+ ............................... 329,062
20,000 Viacom Inc., Cl. A+ .............................. 1,170,000
----------
17,797,984
----------
EQUIPMENT AND SUPPLIES -- 0.2%
9,000 Amphenol Corp., Cl. A+ ........................... 512,437
20,000 Thyssen Krupp AG+ ................................ 271,787
----------
784,224
----------
PUBLISHING -- 0.7%
30,000 Harcourt General Inc. ............................ 1,770,000
10,300 Media General Inc., Cl. A ........................ 442,900
8
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MARKET
SHARES VALUE
------ ----------
COMMON STOCKS (CONTINUED)
PUBLISHING (CONTINUED)
8,000 News Corp. Ltd., ADR ............................. $ 448,500
12,000 Telegraaf Holdingsmij - CVA ...................... 252,021
----------
2,913,421
----------
RETAIL -- 0.0%
9,229 Webvan Group Inc.+ ............................... 21,341
----------
SATELLITE -- 3.3%
500 Asia Satellite Telecommunications
Holdings Ltd., ADR ............................... 12,500
1,000 British Sky Broadcasting Group, ADR .............. 94,000
48,000 EchoStar Communications Corp., Cl. A+ ............ 2,532,000
175,000 General Motors Corp., Cl. H+ ..................... 6,506,500
16,000 Globalstar Telecommunications Ltd.+ .............. 138,000
35,500 Liberty Satellite & Technology Inc., Cl. A+ ...... 377,187
155,000 Loral Space & Communications Ltd.+ ............... 949,375
12,000 Orbital Sciences Corp.+ .......................... 100,500
70,000 PanAmSat Corp.+ .................................. 2,235,625
10,000 Pegasus Communications Corp.+ .................... 483,125
10,000 PT Indosat Tbk, ADR .............................. 80,000
----------
13,508,812
----------
TELECOMMUNICATIONS: BROADBAN -- 0.9%
1,000 Adelphia Business Solutions Inc.+ ................ 11,812
38,000 BroadWing Inc.+ .................................. 971,375
4,500 Choice One Communications Inc.+ .................. 54,844
3,500 Colt Telecom Group plc+ .......................... 385,875
7,000 Davel Communications Group Inc.+ ................. 1,330
10,000 Golden Telecom Inc. .............................. 173,750
25,000 ICG Communications Inc.+ ......................... 10,937
5,000 Intermedia Communications Inc.+ .................. 147,500
1,500 Jazztel plc, ADR+ ................................ 33,750
18,000 McLeodUSA Inc., Cl. A+ ........................... 257,625
27,000 Nextlink Communications Inc.+ .................... 950,063
8,000 NorthPoint Communications Group Inc.+ ............ 71,000
150,000 Pacific Century CyberWorks Ltd. .................. 169,298
20,667 Pacific Century CyberWorks Ltd., ADR+ ............ 227,337
5,000 Startec Global Communications Corp.+ ............. 29,687
10,000 United Pan-Europe
Communications NV, Cl. A, ADR+ ................. 194,375
10,000 USN Communications Inc.+ ......................... 175
----------
3,690,733
----------
TELECOMMUNICATIONS: LOCAL -- 16.4%
96,924 Aliant Inc. ...................................... 2,396,319
3,000 Allegiance Telecom Inc.+ ......................... 111,750
82,000 ALLTEL Corp. ..................................... 4,279,375
30,000 AT&T Canada Inc., Cl. B+ ......................... 915,000
15,200 Atlantic Tele-Network Inc. ....................... 167,200
55,000 BellSouth Corp. .................................. 2,213,750
5,000 Brasil Telecom Participacoes SA, ADR ............. 291,250
MARKET
SHARES VALUE
------ ----------
330,000 CenturyTel Inc. ................................ $ 8,992,500
500 Cia Riograndense Telecom ....................... 193
400,000 Citizens Communications Co. .................... 5,375,000
122,817 Commonwealth Telephone Enterprises Inc.+ ....... 4,528,877
40,500 Commonwealth Telephone
Enterprises Inc., Cl. B+ ..................... 1,630,125
4,800 Conestoga Enterprises Inc. ..................... 92,400
104,850 CoreComm Ltd.+ ................................. 832,247
20,000 E.Spire Communications Inc. .................... 58,750
25,000 Eircom plc ..................................... 55,152
30,000 Electric Lightwave Inc., Cl. A+ ................ 255,000
150,000 First Pacific Co. Ltd. ......................... 44,729
15,000 First Pacific Co. Ltd., ADR .................... 22,365
9,520 Global Telesystems Group Inc.+ ................. 43,435
65,000 RCN Corp.+ ..................................... 1,348,750
255,000 Rogers Communications Inc., Cl. B, ADR+ ........ 6,040,312
220,000 SBC Communications Inc. ........................ 11,000,000
9,000 Shenandoah Telecommunications Co. .............. 303,750
45,000 Sonera Group Oyj ............................... 1,143,624
25,693 Tele Norte Leste Participacoes SA, ADR ......... 587,727
20,000 Telecom Argentina Stet France
Telecom SA, ADR .............................. 432,500
1,000,000 TelecomAsia Corp. Public Co. Ltd. .............. 669,510
4,000 Time Warner Telecom Inc., Cl. A+ ............... 193,250
265,000 Verizon Communications ......................... 12,835,938
-----------
66,860,778
-----------
TELECOMMUNICATIONS: LONG DISTANCE -- 5.9%
214,994 AT&T Corp. ..................................... 6,315,449
25,000 Call-Net Enterprises Inc.+ ..................... 40,209
270 DDI Corp. ...................................... 1,774,015
23,000 Embratel Participacoes SA, ADR+ ................ 425,500
68,000 General Communication Inc., Cl. A+ ............. 486,625
140,000 Global Crossing Ltd.+ .......................... 4,340,000
14,000 KDD Corp. ...................................... 992,412
135,000 Qwest Communications International Inc.+ ....... 6,488,438
4,000 RSL Communications Ltd., Cl. A+ ................ 8,000
60,000 Sprint Corp.+ .................................. 1,758,750
25,000 Teleglobe Inc. ................................. 525,281
5,000 Telegroup Inc.+ ................................ 38
40,000 VDC Communications Inc.+ ....................... 20,000
38,000 Viatel Inc.+ ................................... 389,500
12,000 WorldCom Inc.+ ................................. 364,500
-----------
23,928,717
-----------
TELECOMMUNICATIONS: NATIONAL -- 13.4%
200,000 BCE Inc. ....................................... 4,675,000
1,500 British Telecommunications plc, ADR ............ 160,594
15,000 Cable & Wireless plc ........................... 214,013
265,000 Cable & Wireless plc, ADR ...................... 11,279,063
11,345,454 Cable & Wireless Jamaica Ltd. .................. 742,855
500 China Unicom Ltd., ADR+ ........................ 10,906
9
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MARKET
SHARES VALUE
------ ----------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS: NATIONAL (CONTINUED)
64,000 Compania de Telecomunicaciones
de Chile SA, ADR ............................... $1,112,000
31,000 Deutsche Telekom AG, ADR+ ........................ 1,061,750
2,500 France Telecom SA, ADR ........................... 263,125
4,707 Hellenic Telecommunications
Organization SA ................................ 90,537
2,200 Hellenic Telecommunications
Organization SA, ADR+ .......................... 20,350
17,500 HPY Holding - HTF Holding Oyj Abp, Cl. A ......... 625,265
8,000 Hungarian Telephone & Cable Corp.+ ............... 41,000
80 Japan Telecom Co. Ltd. ........................... 2,309,828
5,000 Korea Telecom Corp. .............................. 299,511
30,209 KPN NV, ADR ...................................... 653,270
500 Magyar Tavkozlesi Rt, ADR ........................ 11,781
237 Nippon Telegraph & Telephone Corp. ............... 2,324,820
11,500 Nippon Telegraph & Telephone Corp., ADR .......... 563,500
1,500 Pakistan Telecommunications, GDR (a) ............. 66,267
54,000 Philippine Long Distance
Telephone Co., ADR ............................. 924,750
60,000 Portugal Telecom SA, ADR ......................... 607,500
21,600 PT Telekomunikasi Indonesia, ADR ................. 135,000
7,000 Rostelecom, ADR .................................. 61,688
100,000 Singapore Telecommunications Ltd. ................ 156,297
110,000 Swisscom AG, ADR ................................. 2,708,750
20,000 Tele Danmark A/S, ADR ............................ 562,500
21,000 Telecom Corp. of New Zealand Ltd., ADR ........... 420,000
190,000 Telecom Italia SpA ............................... 2,018,637
19,000 Telecom Italia SpA, ADR .......................... 1,995,000
3,355,677 Telecomunicacoes de Rio de Janeiro SA ............ 100,399
123,011 Telefonica SA, ADR ............................... 7,311,466
5,435 Telefonica SA, BDR+ .............................. 107,523
53,000 Telefonos de Mexico SA, Cl. L, ADR ............... 2,818,938
304,000 Telekom Malaysia Berhad .......................... 800,000
2,400 Telstra Corp. Ltd., ADR .......................... 39,000
71,079 TELUS Corp. ...................................... 1,913,228
200,000 TELUS Corp., Non-Voting .......................... 5,197,291
8,075 Thai Telephone & Telecom, GDR+ (a) ............... 2,826
3,000 Veba AG .......................................... 154,998
----------
54,561,226
----------
WIRELESS COMMUNICATIONS -- 26.6%
40,000 ABC Communications Holdings Ltd. ................. 4,515
10,000 AirGate PCS Inc.+ ................................ 448,750
425,000 AT&T Wireless Group+ ............................. 8,871,875
500 Celular CRT Participacoes ........................ 171
20,000 Centennial Cellular Corp., Cl. A+ ................ 440,000
1,200 China Mobile (Hong Kong) Ltd., ADR+ .............. 38,925
2,000 Clearnet Communications Inc., Cl. A+ ............. 88,625
35,000 CP Pokphand, ADR+ ................................ 20,538
11,000 Dobson Communications Corp., Cl. A+ .............. 161,563
MARKET
SHARES VALUE
------ ----------
5,300 Easycall Group+ .................................. $ 947
240,000 Europolitan Holdings AB .......................... 2,267,204
42,988 Grupo Iusacell SA de CV, ADR+ .................... 510,483
26,000 Himachal Futuristic (a) .......................... 2,431,000
24,000 Jasmine International+ ........................... 4,835
44,000 Leap Wireless International Inc.+ ................ 2,752,750
50,000 Libertel NV+ ..................................... 604,462
2,000 Metricom Inc.+ ................................... 51,500
1,500 Metrocall Inc.+ .................................. 4,500
56,000 Microcell Telecommunications Inc.+ ............... 1,627,500
3,000 Motient Corp.+ ................................... 42,375
130,000 Nextel Communications Inc., Cl. A+ ............... 6,077,500
5,000 Nextel Partners Inc., Cl. A+ ..................... 145,625
270 NTT Mobile Communication Network Inc.+ ........... 7,745,698
35,000 PNV.net Inc. ..................................... 35,000
15,000 Powertel Inc.+ ................................... 1,140,937
100,000 Price Communications Corp.+ ...................... 1,956,250
172,000 Rogers Wireless
Communications Inc., Cl. B+ .................... 5,224,500
20,000 Rural Cellular Corp., Cl. A+ ..................... 1,362,500
145,000 SK Telecom Co. Ltd., ADR ......................... 3,715,625
150,000 Sprint Corp. (PCS Group)+ ........................ 5,259,375
80,000 Technology Resources Industries .................. 61,263
2,300 Tele Celular Sul Participacoes SA, ADR ........... 69,000
7,666 Tele Centro Oeste Celular
Participacoes SA, ADR .......................... 81,451
460 Tele Leste Celular Participacoes SA, ADR ......... 18,544
1,150 Tele Nordeste Celular
Participacoes SA, ADR .......................... 54,050
460 Tele Norte Celular Participacoes SA, ADR ......... 18,400
5,000 Telecel-Comunicacaoes Pessoais SA, ADR ........... 62,696
901,000 Telecom Italia Mobile SpA ........................ 7,282,800
12,000 TeleCorp PCS Inc. ................................ 228,000
1,150 Telemig Celular Participacoes SA, ADR ............ 60,878
230,000 Telephone & Data Systems Inc. .................... 25,461,000
5,272,417 Telesp Celular Participacoes SA .................. 43,151
9,200 Telesp Celular Participacoes SA, ADR ............. 303,025
55,000 Teligent Inc., Cl. A+ ............................ 715,000
20,000 Total Access Communications plc+ ................. 67,200
12,000 Tritel Inc., Cl. A+ .............................. 171,750
12,000 Triton PCS Holdings Inc., Cl. A+ ................. 330,000
110,000 United States Cellular Corp+ ..................... 7,700,000
12,000 Vimpel Communications, ADR+ ...................... 231,750
51,000 Vodafone Group plc ............................... 1,887,000
80,000 VoiceStream Wireless Corp.+ ...................... 9,285,000
15,000 Western Wireless Corp., Cl. A+ ................... 534,375
55,000 Winstar Communications Inc.+ ..................... 852,500
-----------
108,554,361
-----------
TOTAL COMMON STOCKS .............................. 352,676,082
-----------
10
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MARKET
SHARES VALUE
------ ------------
PREFERRED STOCKS -- 0.4%
ENTERTAINMENT -- 0.0%
1,500 Metromedia International Group Inc.,
7.25% Cv. Pfd. ................................ $ 34,125
------------
TELECOMMUNICATIONS: LOCAL -- 0.3%
20,000 Citizens Communications Co.,
5.00% Cv. Pfd. ................................ 1,085,000
------------
TELECOMMUNICATIONS: NATIONAL -- 0.1%
11,000 Philippine Long Distance Telephone Co.,
$3.50 Cv. Pfd., Ser. III ...................... 397,375
19,500 Telecomunicacoes de Parana SA, Pfd. ............. 169
------------
397,544
------------
WIRELESS COMMUNICATIONS -- 0.0%
3,355,677 Telerj Celular SA, Pfd., Cl. B+ ................. 94,669
197,928 Telesp Celular Participacoes SA, Pfd.+ .......... 2,596
------------
97,265
------------
TOTAL PREFERRED STOCKS .......................... 1,613,934
------------
RIGHTS -- 0.0%
TELECOMMUNICATIONS: LOCAL -- 0.0%
315,789 TelecomAsia Corp. Public Co. Ltd., Rights ....... 0
------------
WIRELESS COMMUNICATIONS -- 0.0%
527,242 Telesp Celular Participacoes SA, Rights ......... 3
920 Telesp Celular Participacoes SA,
ADR, Rights+ .................................. 0
19,793 Telesp Celular Participacoes SA,
Pfd., Rights+, 0
------------
3
------------
TOTAL RIGHTS .................................... 3
------------
PRINCIPAL
AMOUNT
----------
CORPORATE BONDS -- 0.3%
TELECOMMUNICATIONS: NATIONAL -- 0.2%
$1,000,000 Telekom Malaysia Berhad,
4.00%, 10/03/04 (a) ........................... 875,000
------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------------
WIRELESS COMMUNICATIONS -- 0.1%
$ 250,000 Technology Resources Industries,
Sub. Deb. Cv.
2.75%, 11/28/04 (a) ........................... $ 288,750
------------
TOTAL CORPORATE BONDS ........................... 1,163,750
------------
U.S. GOVERNMENT OBLIGATIONS -- 14.0%
57,522,000 U.S. Treasury Bills,
6.12% to 6.27%++,
due 10/05/00 to 12/28/00 ...................... 57,284,700
------------
TOTAL INVESTMENTS -- 101.3%
(Cost $320,721,187) ........................... 412,738,469
OTHER ASSETS AND
LIABILITIES (NET) -- (1.3)% ................... (5,400,672)
------------
NET ASSETS -- 100.0%
(17,089,048 shares outstanding) ............... $407,337,797
============
SETTLEMENT NET UNREALIZED
DATE APPRECIATION
---------- --------------
FORWARD FOREIGN EXCHANGE CONTRACTS
5,626,580(b)Deliver Hong Kong Dollars
in exchange for
USD 721,644 ................. 08/03/01 $3,356
======
------------------------
(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
$3,663,843 or 0.9% of total net assets.
(b) Principal amount denoted in Hong Kong Dollars.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depositary Receipt.
BDR - Brazilian Depositary Receipt.
GDR - Global Depositary Receipt.
USD - U.S. Dollars.
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
-------------------------- ------ ------------
North America ............... 76.5% $315,590,365
Latin America ............... 3.0% 12,213,139
Europe ...................... 10.5% 43,289,784
Asia/Pacific Rim ............ 5.6% 23,172,555
Japan ....................... 4.5% 18,472,626
------ ------------
100.0% $412,738,469
====== ============
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 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 Marc J. Gabelli
PRESIDENT AND CHIEF ASSOCIATE PORTFOLIO MANAGER
INVESTMENT OFFICER
Bruce N. Alpert Ivan Arteaga, CFA
VICE PRESIDENT AND TREASURER ASSOCIATE 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 Telecommunications Fund. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective prospectus.
--------------------------------------------------------------------------------
GAB401Q300SR
[PHOTO OF MARIO GABELLI OMITTED]
THE
GABELLI
GLOBAL
TELECOMMUNICATIONS
FUND
THIRD QUARTER REPORT
SEPTEMBER 30, 2000
