[GRAPHIC OF FLAGS OMITTED]
THE GABELLI GLOBAL GROWTH FUND
SEMI-ANNUAL REPORT
JUNE 30, 2000
--------------------------------------------------
(GRAPHIC OF FIVE STARS OMITTED)
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MORNINGSTAR RATED(TM) GABELLI GLOBAL GROWTH
FUND 5 STARS OVERALL AND FOR THE THREE AND
FIVE-YEAR PERIOD ENDED 06/30/00 AMONG
3642 AND 2328 DOMESTIC EQUITY FUNDS, RESPECTIVELY.
--------------------------------------------------
--------------------------------------------------
#1 GLOBAL FUND!
--------------------------------------------------
LIPPER INC. RANKED GABELLI GLOBAL
GROWTH FUND #1 FOR THE FIVE-YEAR PERIOD
ENDED 06/30/00 AMONG 106 GLOBAL FUNDS.
--------------------------------------------------
TO OUR SHAREHOLDERS,
In 1999, the Fund excelled in what investment pundits christened the "TMT"
(Technology, Media, Telecommunications) stock market. In the second quarter of
2000, "TMT" fizzled. Technology stocks corrected sharply and media and
telecommunications stocks drifted lower. After recent years' exceptionally
strong performance, the Fund took a small step back as we saw widespread profit
taking in all sub-sectors of the multimedia industry.
INVESTMENT PERFORMANCE
For the second quarter ended June 30, 2000, The Gabelli Global Growth Fund
(the "Fund") Class AAA Shares' net asset value declined 13.50%. The Morgan
Stanley Capital International World Free Index of global equity markets and
Lipper Global Fund Average declined 3.81% and 4.73%, respectively, over the same
period. The Morgan Stanley World Free Index is an unmanaged indicator of stock
market performance, while the Lipper Average reflects the average performance of
mutual funds classified in this particular category. The Fund was up 39.61% over
the trailing twelve-month period. The Morgan Stanley World Free Index and Lipper
Global Fund Average rose 12.37% and 21.96%, respectively, over the same
twelve-month period.
For the five-year period ended June 30, 2000, the Fund's total return
averaged 33.59% annually, versus average annual total returns of 16.62% and
17.03% for the Morgan Stanley World Free Index and Lipper Global Fund Average,
respectively. Since inception on February 7, 1994 through June 30, 2000, the
Fund had a cumulative total return of 380.00%, which equates to an average
annual total return of 27.77%.
--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Morningstar proprietary
ratings reflect historical risk adjusted performance as of June 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. Lipper Inc. ranked The Gabelli Global Growth[REGISTRATION MARK] Fund 7
among 256 global funds for the one year period ended December 31, 1999. Lipper
rankings are based upon one, three and five-year total returns at NAV.
INVESTMENT RESULTS (CLASS AAA SHARES) (a)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Quarter
-----------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
<S> <C> <C> <C> <C> <C>
2000: Net Asset Value ................... $36.37 $31.46 -- -- --
Total Return ...................... 3.4% (13.5)% -- -- --
-------------------------------------------------------------------------------------------------------------
1999: Net Asset Value ................... $20.33 $23.52 $24.91 $35.17 $35.17
Total Return ...................... 19.7% 15.7% 5.9% 47.4% 116.1%
-------------------------------------------------------------------------------------------------------------
1998: Net Asset Value ................... $16.45 $17.39 $15.17 $16.99 $16.99
Total Return ...................... 15.2% 5.7% (12.8)% 21.4% 28.9%
-------------------------------------------------------------------------------------------------------------
1997: Net Asset Value ................... $11.79 $13.72 $15.02 $14.28 $14.28
Total Return ...................... 0.3% 16.4% 9.5% 10.9% 41.7%
-------------------------------------------------------------------------------------------------------------
1996: Net Asset Value ................... $12.57 $13.40 $13.22 $11.75 $11.75
Total Return ...................... 7.3% 6.6% (1.3)% (0.3)% 12.5%
-------------------------------------------------------------------------------------------------------------
1995: Net Asset Value ................... $10.62 $11.28 $12.30 $11.72 $11.72
Total Return ...................... 3.6% 6.2% 9.0% (1.8)% 17.9%
-------------------------------------------------------------------------------------------------------------
1994: Net Asset Value ................... $9.90 $9.97 $10.54 $10.25 $10.25
Total Return ...................... (1.0)%(b) 0.7% 5.7% (2.8)% 2.5%(b)
-------------------------------------------------------------------------------------------------------------
</TABLE>
Dividend History
------------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
----------------- -------------- ------------------
December 27, 1999 $1.465 $33.50
December 28, 1998 $1.385 $16.56
December 31, 1997 $2.370 $14.28
December 31, 1996 $1.436 $11.75
December 29, 1995 $0.363 $11.72
----------------------------------------------------
Average Annual Returns (Class AAA Shares)
-----------------------------------------
June 30, 2000 (a)
-----------------
1 Year ................................. 39.61%
5 Year ................................. 33.59%
Life of Fund (b) ....................... 27.77%
----------------------------------------------------
(a) Total returns and average annual returns reflect changes in share price and
reinvestment of dividends and are net of expenses for Class AAA Shares. The net
asset value of the Fund is reduced on the ex-dividend (payment) date by the
amount of the dividend paid. Of course, returns represent past performance and
do not guarantee future results. Investment returns and the principal value of
an investment will fluctuate. When shares are redeemed they may be worth more or
less than their original cost. (b) From commencement of investment operations on
February 7, 1994. Note: Investing in foreign securities involves risks not
ordinarily associated with investments in domestic issues, including currency
fluctuation, economic and political risks.
--------------------------------------------------------------------------------
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 second quarter ended June 30, 2000, The Gabelli Global
Growth Fund Class A Shares, Class B Shares and Class C Shares had total returns
of (13.50)%, (13.53)% and (13.53)%, respectively (excluding the effect of the
applicable sales charge). The Class A Shares, Class B Shares and the Class C
Shares ended the second quarter with net asset values of $31.46, $31.44 and
$31.44, respectively.
2
<PAGE>
GLOBAL ALLOCATION
The accompanying chart presents the Fund's holdings by geographic region
as of June 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.
[GRAPHIC OMITTED]
EDGAR REPRESENTAITON OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
HOLDINGS BY GEOGRAPHIC REGION - 6/30/00
United States .................. 41.1%
Europe ......................... 28.9%
Japan .......................... 17.6%
Canada ......................... 6.7%
Asia/Pacific Rim ............... 5.0%
Latin America .................. 0.7%
THE COUCH POTATO SPROUTS TO GLOBAL GROWTH
The Fund's primary objective is capital appreciation achieved 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.
We strive to find reasonably valued businesses exhibiting creativity to
adapt to the changing environment. Additionally, we look for solid franchises,
ideally with unique copyrights that can add to overall value creation. And
lastly, we like growth and therefore look to businesses involved in the
ever-evolving communication revolution. Looking forward, we continue to believe
that the dominant companies of tomorrow will be conducting a major portion of
their business via the Internet within the next five years. In anticipation of
this period of revolutionary change, we have changed the name of the Fund from
The Gabelli Global Interactive Couch Potato Fund to The Gabelli Global Growth
Fund.
Our vision, as well as your vision and commitment as investors, have been
grandly rewarded. Investors continued to enjoy excellent investment returns this
quarter, as the interactive revolution maintained its strength. We formed the
Fund in 1994, believing that we were entering a period of accelerated growth
globally. The investment objective of the Fund will remain the same, and while
we are saddened to bid farewell to the original name, keep in mind that it is
only a name.
COMMENTARY
A WELL EARNED NAP
Although we saw isolated earnings disappointments, multimedia companies
generally met or exceeded earnings expectations from the first quarter of 2000.
So why did investors suddenly lose interest in one of the best performing
industry sectors in recent years? The answer is a combination of valuations and
a reversal in investor sentiment. The stock prices of leading multimedia
companies had become somewhat extended relative to trailing earnings and
short-term earnings projections. Justifiably, investors began to worry that
these stocks were ahead of themselves. Additionally, the fear spawned by the
sharp technology stock correction spilled over into other top performing groups,
including multimedia.
With the rise of momentum investing--buying stocks simply because they are
going up in price--stocks in spotlight industries such as technology and
multimedia will periodically become overvalued and vulnerable to a correction.
We tend to ignore this kind of short term market commotion. We want
3
<PAGE>
to own good businesses with the potential to grow in value over the long term.
As long as our portfolio holdings are living up to our fundamental expectations,
we are willing to tolerate short-term market turbulence.
We do not see any change in what we believe to be a very bright outlook
for quality companies in multimedia businesses. The Interactive Age is still in
its infancy. Going forward, quality distribution (wired and wireless
telecommunications systems as well as cable television and broadcast networks)
and information and entertainment content (publishers and film and television
production companies) will be among the world's most prized assets.
Multimedia stocks may continue to tread water over the short term.
However, ongoing consolidation in the industry should produce headlines that
reawaken investor interest in the sector and help multimedia stocks regain
momentum in the year ahead.
THE SCORECARD
Over the past several years, we have had a terrific portfolio batting
average, enhanced by the buoyant multimedia stock market. This quarter, in a
market that has temporarily abandoned almost everything with a multimedia label,
we struck out much more than we reached base safely.
Other than the generally poor performance of our telecommunications
holdings, especially wireless communications stocks, there was no discernible
industry group pattern among our winners and losers. Some of our broadcasting
company holdings performed well (Young Broadcasting, Chris-Craft and Audiofina).
Some performed poorly (Ackerley Group and Nippon Broadcasting). Our largest
cable television holding (Cablevision) produced a double digit return, but other
cable investments (NTL and UnitedGlobalCom) disappointed. Among the multimedia
giants, Viacom excelled while News Corp. and Time Warner languished. This
pattern repeated itself through virtually all of the multimedia sub-sectors
represented in the portfolio.
THE NEXT BIG MEDIA DEAL
The partnering of Viacom/CBS, AOL/Time Warner, Vivendi/Canal Plus/Seagram,
and Liberty Media Group/UnitedGlobalCom show that media industry mergers
marrying content to distribution are accelerating. There are still plenty of
attractive singles looking to partner up and the band is not ready for a break.
The big multimedia wolves are there, with News Corp.'s Rupert Murdoch circling
the dance hall, Viacom's Sumner Redstone and Mel Karmazin positioned by the
punch bowl, and AOL/Time Warner's Steve Case and Gerald Levin and Liberty
Media's John Malone catching their breath by the bandstand. Look, there's
Chris-Craft's Herb Siegel snapping his fingers and looking like he's finally
ready to cut the rug with somebody. And off in the corner is NBC's Bob Wright,
wondering if GE's Jack Welch will set him free to pursue another liaison. USA
Network's Barry Diller, is flirting with everyone while trying to decide on the
appropriate partner. The whole place is aflutter with the rumor that AT&T's
Michael Armstrong may be showing up later.
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 June 30, 2000.
4
<PAGE>
AUDIOFINA (AUDK.LU - $128.89 - LUXEMBOURG STOCK EXCHANGE) is a Luxembourg-based
European entertainment company. The company controls 49.85% of CLT-UFA, which
owns 22 television channels with 120 million daily viewers and 18 radio stations
with 25 million daily listeners. CLT-UFA also holds the broadcasting and
marketing rights to numerous European sports teams. The recent agreement merging
Pearson plc's television assets with CLT-UFA will strengthen the company's
position globally.
BELL ATLANTIC CORP. (BEL - $50.8125 - NYSE), following its merger with GTE (GTE
- $62.25 - NYSE), has been renamed Verizon Communications (VZ - NYSE). VZ
becomes the largest domestic provider of wireline communications, with 95
million access line equivalents. Verizon is also the largest domestic wireless
carrier, with about 25 million subscribers, and is one of the world's largest
and most successful wireless companies, with domestic operations in 24 states
and international investments in Latin America, Europe and the Pacific Rim. In
early April, BEL, GTE and Vodafone AirTouch (VOD - $41.4375 - NYSE) finished
combining their U.S. wireless operations into a joint venture called Verizon
Wireless, which will reach more than 90% of the U.S. population. VZ is also a
global leader in publishing directories and in providing Internet-based shopping
guides, website creation and hosting, and other electronic commerce services.
The company has a mix of mature and start-up communications businesses in Europe
and the Pacific Rim, including a 24.9% stake in Telecom Corp. of New Zealand and
an 18.5% stake in Cable & Wireless Communications.
CITIZENS COMMUNICATIONS CO. (CZN - $17.25 - NYSE), will soon become the
country's largest independent local exchange carrier once it completes several
acquisitions of over 2 million access lines for $6.5 billion. Upon completion of
these transactions, accompanied by divestitures of its utilities operations, CZN
will reposition itself as a pure telecommunications company. CZN also owns 81%
of a competitive carrier, Electric Lightwave (ELIX - $18.6875 - NASDAQ), with
fiber optic networks covering the Western part of the U.S.
FURUKAWA ELECTRIC CO. LTD. (5801.T - $20.88 - TOKYO STOCK EXCHANGE) manufactures
electric wire and cable, light metals, and optical-fiber cables. The company
also provides related services, including installation. Furukawa is currently
expanding into superconductor wire and optical transmission, network systems and
devices. The company has a significant stake in JDS Uniphase (JDSU - $119.875 -
NASDAQ), a Canadian optical equipment manufacturer.
LIBERTY MEDIA GROUP (LMG'A - $24.25 - NYSE), owned by AT&T Corp. (T - $31.6245 -
NYSE), is engaged in businesses which 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 assets also include
interests in international video distribution businesses, international
telephony and domestic wireless, plant and equipment manufacturers, and other
businesses related to broadband services. Liberty Media Group Class A and Class
B common stock are tracking stocks of AT&T.
NIPPON BROADCASTING SYSTEM INC. (4660.T - $61.5485 - TOKYO STOCK EXCHANGE) is
the top listener-rated AM radio broadcaster in Japan, and also operates a music
subsidiary, Pony Canyon. Nippon distributes its content through the Internet,
digital satellite, mobile Internet and terrestrial means. The company is also a
large shareholder of Fuji Television.
5
<PAGE>
SEAGRAM CO. (VO - $58.00 - NYSE) operates two global businesses: beverages and
entertainment. The beverage group's major brands include Chivas Regal, Martell,
Mumm, Crown Royal and Seagram's Gin. With its $10.4 billion December acquisition
of Polygram, Seagram has created the world's leading music company, the
Universal Music Group. Seagram's entertainment business includes the Universal
Motion Pictures Group, the Universal Studios Recreation Group and a 46% interest
in USA Networks (USAI - $21.625- NASDAQ). On June 20th, Seagram, Vivendi and
Canal Plus agreed to merge, creating a fully integrated global media and
communications company for the wired and wireless world.
TELEPHONE & DATA SYSTEMS INC. (TDS - $100.25 - 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 - $63.00 -
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 - $116.2967 - NYSE), TDS
now owns 35.6 million shares of VSTR valued at over $5.0 billion.
USA NETWORKS INC. (USAI - $21.625 - NASDAQ), through its subsidiaries, engages
in diversified media and electronic commerce businesses that include electronic
retailing, ticketing operations and television broadcasting. Chairman and CEO
Barry Diller has brought together under one umbrella the USA Network, the Sci-Fi
Channel, USA Networks Studios, USA Broadcasting, The Home Shopping Network and
the Ticketmaster Group. The plan is to integrate these assets, leveraging
programming, production capabilities and electronic commerce across this strong
distribution platform.
VOICESTREAM WIRELESS CORP. (VSTR - $116.2967 - NASDAQ) is one of the three U.S.
independent wireless service providers with licenses covering over 200 million
POPS (Points of Presence). VSTR was spun-off of Western Wireless about fourteen
months ago and is the only national carrier utilizing GSM (Global System for
Mobile Communication) technology, a standard which dominates in Europe. VSTR's
high growth rates and experienced management team, as well as its national
licenses, make the company an attractive acquisition target for major global
telecommunications companies, many of which lack a U.S. presence.
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 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].
6
<PAGE>
IN CONCLUSION
For the first time since the global hedge fund debacle of late summer
1998, the Fund took a step backwards. We do not believe this signals an end to
what has been a terrific market for multimedia stocks. Fundamentals in
multimedia industries remain stable, strong secular growth trends remain intact,
and we believe merger and acquisition activity will accelerate as media
companies seek to improve their competitive positions through marrying content
with distribution and extending their global franchises. Call this quarter a
well-deserved breather after a long and impressive run. We expect multimedia
stocks and the Fund to regain momentum in the year ahead.
The Fund's daily net asset value is available in the financial press and
each evening after 6:00 PM (Eastern Time) by calling 1-800-GABELLI
(1-800-422-3554). The Fund's NASDAQ symbol is GICPX. Please call us during the
business day for further information.
Sincerely,
/S/ SIGNATURE OMITTED /S/ SIGNATURE OMITTED
MARC J. GABELLI IVAN ARTEAGA, CFA
Portfolio Manager Associate Portfolio Manager
July 14, 2000
-------------------------------------------------------------------------
TOP TEN HOLDINGS
JUNE 30, 2000
-------------
VoiceStream Wireless Corp. Bell Atlantic Corp.
Furukawa Electric Co. Ltd. Seagram Co.
Liberty Media Group USANetworks Inc.
Audiofina Citizens Communications Co.
Telephone & Data Systems Inc. Nippon Broadcasting System 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 GROWTH FUND
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------- ---- ------
COMMON STOCKS -- 94.0%
AUTOMOTIVE -- 2.1%
211,000 Toyota Motor Corp. ................... $ 9,497,571 $ 9,605,825
----------- -----------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.2%
58,000 Delphi Automotive
Systems Corp. ....................... 862,400 844,625
----------- -----------
BROADCASTING -- 9.2%
52,200 Ackerley Group Inc. .................. 520,263 613,350
119,500 Audiofina ............................ 6,619,959 15,402,499
19,570 Chris-Craft Industries Inc.+ ......... 1,235,950 1,292,843
171,000 Granada Group plc .................... 1,581,769 1,707,684
42,700 Grupo Televisa SA, GDR+ .............. 2,882,251 2,943,631
172,000 Nippon Broadcasting
System Inc. ......................... 7,325,470 10,586,361
145,700 NRJ Groupe+ .......................... 2,187,797 7,094,458
1 NRJ SA ............................... 256 516
570,000 Seven Network Ltd. ................... 1,570,988 2,415,877
28,500 Young Broadcasting Inc., Cl. A+ ...... 1,027,457 732,094
----------- -----------
24,952,160 42,789,313
----------- -----------
BUSINESS SERVICES -- 2.9%
407,000 Cendant Corp.+ ....................... 6,192,605 5,698,000
88,000 Vivendi .............................. 8,887,134 7,767,461
----------- -----------
15,079,739 13,465,461
----------- -----------
BUSINESS SERVICES: ADVERTISING -- 0.6%
70,000 True North
Communications Inc. ................. 3,125,913 3,080,000
----------- -----------
CABLE -- 3.0%
63,000 Cablevision Systems
Corp., Cl. A+ ....................... 690,971 4,276,125
50,000 Charter Communications
Inc., Cl. A+ ........................ 800,000 821,875
39,462 NTL Inc.+ ............................ 1,659,481 2,362,787
145,000 UnitedGlobalCom Inc., Cl. A+ ......... 5,481,721 6,778,750
----------- -----------
8,632,173 14,239,537
----------- -----------
COMMUNICATIONS EQUIPMENT -- 6.5%
476,000 Ericsson (LM) Telephone
Co., Cl. B .......................... 11,051,050 9,418,528
800,000 Furukawa Electric Co. Ltd. ........... 9,693,965 16,702,012
66,500 Gemstar International
Group Ltd.+ ......................... 2,654,099 4,086,633
----------- -----------
23,399,114 30,207,173
----------- -----------
COMPUTER SOFTWARE AND SERVICES -- 2.6%
1 Net One Systems Co. Ltd. ............. 15,347 11,499
200,000 PSINet Inc.+ ......................... 4,333,760 5,025,000
36,900 Softbank Corp. ....................... 991,106 5,008,342
MARKET
SHARES COST VALUE
------- ---- ------
162,555 World Online
International NV+ ................... $ 1,814,144 $ 1,955,512
----------- -----------
7,154,357 12,000,353
----------- -----------
CONSUMER PRODUCTS -- 0.9%
1,500 Compagnie Financiere
Richemont AG, Cl. A ................. 2,734,617 4,041,132
----------- -----------
CONSUMER SERVICES -- 1.0%
300,000 Ticketmaster Online-City
Search Inc.+ ........................ 5,345,412 4,781,250
----------- -----------
ELECTRONICS -- 3.7%
58,300 Kyocera Corp. ........................ 8,314,535 9,885,640
100,000 Philips Electronics NV ............... 4,199,542 4,716,463
29,000 Sony Corp. ........................... 1,769,227 2,706,065
----------- -----------
14,283,304 17,308,168
----------- -----------
ENTERTAINMENT -- 14.2%
53,700 Canal Plus ........................... 5,493,381 9,023,530
95,000 EMI Group plc ........................ 608,177 862,467
66,500 GC Companies Inc.+ ................... 2,427,295 1,487,937
640,000 Liberty Media Group, Cl. A+ .......... 6,265,609 15,520,000
190,000 Publishing & Broadcasting Ltd. ....... 1,157,643 1,460,139
193,400 Seagram Co. .......................... 10,005,949 11,217,200
45,000 Time Warner Inc. (b) ................. 2,110,365 3,420,000
120,000 TV Guide Inc., Cl. A+ ................ 2,672,439 4,110,000
504,000 USA Networks Inc.+ ................... 9,360,090 10,899,000
80,000 Viacom Inc., Cl. A+ .................. 1,416,389 5,470,000
40,000 Viacom Inc., Cl. B+ .................. 544,082 2,727,500
----------- -----------
42,061,419 66,197,773
----------- -----------
FINANCIAL SERVICES -- 0.2%
10,310 Invik & Co. AB, Cl. B ................ 1,149,589 1,068,527
----------- -----------
PUBLISHING -- 6.4%
266,400 Arnoldo Mondadori
Editore SpA ......................... 6,448,005 6,015,266
33,000 Central Newspapers Inc., Cl. A ....... 1,938,750 2,087,250
380,000 Independent News &
Media plc, Dublin ................... 906,230 1,396,799
380,000 Independent News &
Media plc, Dublin,
New Shares .......................... 906,230 1,396,799
23,700 Independent News &
Media plc, London ................... 57,383 83,734
23,700 Independent News &
Media plc, London,
New Shares .......................... 57,383 83,734
80,700 New York Times Co., Cl. A (b) ........ 3,184,183 3,187,650
76,000 News Corp. Ltd., ADR ................. 3,431,848 4,142,000
213,700 PRIMEDIA Inc.+ ....................... 2,826,316 4,861,675
19,000 Scripps (E.W.) Co., Cl. A ............ 877,464 935,750
See accompanying notes to financial statements.
8
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THE GABELLI GLOBAL GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------- ---- ------
COMMON STOCKS (CONTINUED)
PUBLISHING (CONTINUED)
48,400 Tribune Co. ....................... $ 2,074,179 $ 1,694,000
289,700 United News & Media plc ........... 3,071,132 4,164,277
------------ ------------
25,779,103 30,048,934
------------ ------------
RETAIL -- 0.4%
180,000 Blockbuster Inc., Cl. A ........... 1,994,185 1,743,750
------------ ------------
SATELLITE -- 0.4%
256,500 Loral Space &
Communications Ltd.+ ............. 4,554,135 1,779,469
------------ ------------
TELECOMMUNICATIONS -- 27.2%
45,600 AT&T Canada Inc.+ ................. 880,114 1,525,135
61,700 AT&T Canada Inc., Cl. B+ .......... 1,694,094 2,047,669
262,500 AT&T Corp. ........................ 8,923,188 8,301,562
250,700 Bell Atlantic Corp. ............... 15,091,825 12,738,694
66,500 BellSouth Corp. ................... 2,996,529 2,834,562
125,000 British Telecommunications plc .... 2,183,900 1,615,234
209,000 Cable & Wireless plc, ADR ......... 7,633,584 10,463,063
617,500 Citizens Communications Co. ....... 7,042,806 10,651,875
645 DDI Corp. ......................... 5,649,773 6,201,046
19,000 HPY Holding - HTF Holding
Oyj Abp, Cl. A ................... 727,674 870,732
23,000 ICG Communications Inc.+ .......... 586,788 507,438
157 Japan Telecom Co. Ltd. ............ 1,517,126 6,807,107
65,200 KDD Corp. ......................... 7,098,400 6,575,616
161,400 KPN NV ............................ 4,149,253 7,219,425
278 Nippon Telegraph &
Telephone Corp. .................. 3,532,171 3,694,613
1,741,500 Olivetti SpA+ ..................... 6,035,841 6,301,620
603,200 Portugal Telecom SA ............... 6,152,526 6,772,643
115,000 Rogers Communications
Inc., Cl. B+ ..................... 764,686 3,259,628
90,600 Rogers Communications
Inc., Cl. B, ADR+ ................ 1,424,931 2,582,100
47,500 Tele Danmark A/S .................. 3,305,785 3,197,057
318,200 Telecom Italia SpA ................ 3,538,657 4,365,625
23,700 Telecom Italia SpA, ADR ........... 2,371,404 3,260,231
80,700 Telecom Italia SpA, Cl. RNC ....... 520,640 535,486
189,818 Telefonica SA ..................... 2,878,271 4,077,636
273,500 Teleglobe Inc. .................... 7,776,933 5,760,594
50,000 United Pan-Europe
Communications NV, Cl. A+ ........ 1,089,966 1,307,530
124,000 Viatel Inc.+ ...................... 2,504,152 3,541,750
------------ ------------
108,071,017 127,015,671
------------ ------------
MARKET
SHARES COST VALUE
------- ---- ------
WIRELESS COMMUNICATIONS -- 12.5%
1,000 AT&T Wireless Group+ .............. $ 29,500 $ 27,875
167,200 Centennial Cellular
Corp., Cl. A+ .................... 2,409,597 2,299,000
92,100 Rogers Cantel Mobile
Communications Inc., Cl. B+ ...... 1,228,133 3,096,863
147,700 Telephone & Data
Systems Inc. ..................... 12,943,359 14,806,925
132,100 United States Cellular Corp.+ ..... 8,651,035 8,322,300
1,919,584 Vodafone AirTouch plc ............. 7,216,555 7,755,073
47,500 Vodafone AirTouch plc, ADR ........ 629,855 1,968,281
152,500 VoiceStream Wireless Corp.+ ....... 13,280,231 17,735,273
45,000 Western Wireless
Corp., Cl. A+ .................... 685,082 2,452,500
------------ ------------
47,073,347 58,464,090
------------ ------------
TOTAL COMMON STOCKS ............... 345,749,555 438,681,051
------------ ------------
PREFERRED STOCKS -- 0.8%
BUSINESS SERVICES -- 0.0%
34,000 MindArrow Systems Inc.,
Pfd., Ser. C +(a) ................ 850,000 161,766
------------ ------------
ENTERTAINMENT -- 0.1%
350,000 Village Roadshow Ltd., Pfd. ....... 663,999 389,331
------------ ------------
PUBLISHING -- 0.7%
66,500 News Corp. Ltd., Pfd., ADR ........ 1,560,681 3,158,750
------------ ------------
TOTAL PREFERRED STOCKS ............ 3,074,680 3,709,847
------------ ------------
PRINCIPAL
AMOUNT
---------
CORPORATE BONDS -- 0.0%
ENTERTAINMENT -- 0.0%
$50,000 USA Networks Inc.,
Sub. Deb. Cv.,
7.00%, 07/01/03 .................. 45,136 48,688
------------ ------------
WARRANTS -- 0.0%
BUSINESS SERVICES -- 0.0%
3,400 MindArrow Systems
Inc., Warrants+(a) ............... 0 0
------------ ------------
TOTAL
INVESTMENTS -- 94.8% ............. $348,869,371 442,439,586
===========
OTHER ASSETS AND
LIABILITIES (NET) ................................ 24,237,611
------------
NET ASSETS -- 100.0%
(14,833,035 shares outstanding) ................. $466,677,197
============
See accompanying notes to financial statements.
9
<PAGE>
THE GABELLI GLOBAL GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MARKET
SHARES PROCEEDS VALUE
--------- ------------ ------
SECURITIES SOLD SHORT
COMMON STOCK
NTT Mobile Communications ....... 40 $(1,285,540) $(1,082,049)
------------ -----------
TOTAL SECURITIES
SOLD SHORT $(1,285,540) $(1,082,049)
=========== ===========
------------------------
For Federal tax purposes:
Aggregate cost ................................. $348,869,371
============
Gross unrealized appreciation .................. $110,438,965
Gross unrealized depreciation .................. (16,868,750)
------------
Net unrealized appreciation .................... $ 93,570,215
============
------------------------
(a) Restricted security and fair valued under procedures established by Board
of Directors.
(b) Security pledged as collateral for short sale.
+ Non-income producing security.
ADR - American Depositary Receipt.
GDR - Global Depositary Receipt.
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
-------------------------- ------ ------------
North America ................ 47.9% $211,873,923
Europe ....................... 28.9% 127,725,012
Japan ........................ 17.6% 77,784,127
Asia/Pacific Rim ............. 5.0% 22,112,893
Latin America ................ 0.6% 2,943,631
------ ------------
100.0% $442,439,586
====== ============
See accompanying notes to financial statements.
10
<PAGE>
THE GABELLI GLOBAL GROWTH FUND
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
-------------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments, at value (Cost $348,869,371) ....................................................... $ 442,439,586
Foreign currency, at value
(Cost $36,037,404) ............................................................................ 36,393,259
Receivable for investments sold ................................................................. 11,679,839
Receivable for Fund shares sold ................................................................. 476,592
Dividends and interest receivable ............................................................... 428,880
Other assets .................................................................................... 643
-------------
TOTAL ASSETS .................................................................................... 491,418,799
-------------
LIABILITIES:
Payable for investments purchased ............................................................... 7,617,112
Payable for Fund shares redeemed ................................................................ 1,288,423
Payable for investment advisory fees ............................................................ 400,966
Payable for distribution fees ................................................................... 100,285
Payable to custodian ............................................................................ 15,726,000
Other accrued expenses .......................................................................... 208,816
-------------
TOTAL LIABILITIES ............................................................................... 25,341,602
-------------
NET ASSETS applicable to 14,833,035 shares outstanding .......................................... $ 466,077,197
=============
NET ASSETS CONSIST OF:
Capital stock, at par value ..................................................................... $ 14,833
Additional paid-in capital ...................................................................... 342,732,887
Accumulated net investment loss ................................................................. (2,067,713)
Accumulated net realized gain on investments, futures contracts and foreign currency transactions 32,024,271
Net unrealized appreciation on investments and foreign currency transactions .................... 93,972,919
-------------
TOTAL NET ASSETS ................................................................................ $ 466,677,197
=============
SHARES OF CAPITAL STOCK:
CLASS AAA:
Net Asset Value, offering and redemption price per share
(14,825,834 shares outstanding) ............................................................... $31.46
======
CLASS A:
Net Asset Value and redemption price per share
(4,819 shares outstanding) .................................................................... $31.46
======
Maximum sales charge ............................................................................ 5.75%
======
Maximum offering price per share
(NAV / 0.9425, based on maximum sales charge of 5.75% of the offering price at June 30, 2000) . $33.38
======
CLASS B:
Net Asset Value and offering price per share
(1,573 shares outstanding) .................................................................... $31.44(a)
======
CLASS C:
Net Asset Value and offering price per share
(809 shares outstanding) ...................................................................... $31.44(a)
======
</TABLE>
(a) Redemption price varies based on length of time held.
See accompanying notes to financial statements.
11
<PAGE>
THE GABELLI GLOBAL GROWTH FUND
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
-------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes of $158,611) ......................... ..................... $ 1,399,135
Interest ................................................................................... 315,877
-------------
TOTAL INVESTMENT INCOME .................................................................... 1,715,012
-------------
EXPENSES:
Investment advisory fees ................................................................... 2,559,427
Distribution fees .......................................................................... 639,948
Shareholder services fees .................................................................. 187,171
Custodian fees ............................................................................. 95,892
Shareholder communications expenses ........................................................ 38,743
Registration fees .......................................................................... 19,991
Legal and audit fees ....................................................................... 11,720
Directors' fees ............................................................................ 2,385
Interest expense ........................................................................... 224,851
Miscellaneous expenses ..................................................................... 2,597
-------------
TOTAL EXPENSES ............................................................................. 3,782,725
-------------
NET INVESTMENT LOSS ........................................................................ (2,067,713)
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on investments, futures
contracts and foreign currency transactions 32,387,445
Net change in unrealized appreciation on investments and foreign currency transactions .... (86,119,410)
------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS (53,731,965)
-------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ........................................ $(55,799,678)
============
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
---------------- -------------------
<S> <C> <C>
OPERATIONS:
Net investment loss ........................................................ $ (2,067,713) $ (1,590,479)
Net realized gain on investments, futures contracts and foreign currency
transactions ................................................................ 32,387,445 18,790,050
Net change in unrealized appreciation on investments and foreign
currency transactions (86,119,410) 158,444,360
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .............. (55,799,678) 175,643,931
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
In excess of net investment income ........................................... -- (35,944)
Net realized gain on investments ............................................. -- (17,497,659)
------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .......................................... -- (17,533,603)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Class AAA .................................................................... 74,457,811 215,659,383
Class A ...................................................................... 170,750 --
Class B ...................................................................... 50,124 --
Class C ...................................................................... 29,135 --
------------- -------------
Net increase in net assets from capital share transactions ................... 74,707,820 215,659,383
------------- -------------
NET INCREASE IN NET ASSETS ................................................... 18,908,142 373,769,711
NET ASSETS:
Beginning of period .......................................................... 447,769,055 73,999,344
------------- -------------
End of period ................................................................ $ 466,677,197 $ 447,769,055
============= =============
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
THE GABELLI GLOBAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
1. ORGANIZATION. The Gabelli Global Growth Fund (the "Fund"), a series of
Gabelli Global Series Funds, Inc. (the "Corporation"), was organized on July 16,
1993 as a Maryland corporation. The Fund is a non-diversified, open-end
management investment company registered under the Investment Company Act of
1940, as amended (the "1940 Act"), and one of four separately managed portfolios
(collectively, the "Portfolios") of the Corporation. The Fund's primary
objective is capital appreciation. The Fund commenced investment operations on
February 7, 1994. Prior to January 13, 2000, the Fund's name was The Gabelli
Global Interactive Couch Potato [REGISTRATION MARK] Fund.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange, quoted by the National Association of Securities
Dealers Automated Quotations, Inc. ("NASDAQ") or traded on foreign exchanges are
valued at the last sale price on that exchange as of the close of business on
the day the securities are being valued (if there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day, except for open short positions, which are
valued at the last asked price). All other portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest average of the bid and asked prices. Portfolio securities traded on more
than one national securities exchange or market are valued according to the
broadest and most representative market, as determined by Gabelli Funds, LLC
(the "Adviser"). Securities and assets for which market quotations are not
readily available are valued at their fair value as determined in good faith
under procedures established by and under the general supervision of the Board
of Directors. Short term debt securities with remaining maturities of 60 days or
less are valued at amortized cost, unless the Directors determine such does not
reflect the securities' fair value, in which case these securities will be
valued at their fair value as determined by the Directors. Debt instruments
having a maturity greater than 60 days are valued at the highest bid price
obtained from a dealer maintaining an active market in those securities. Options
are valued at the last sale price on the exchange on which they are listed. If
no sales of such options have taken place that day, they will be valued at the
mean between their closing bid and asked prices.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
primary government securities dealers recognized by the Federal Reserve Board,
with member banks of the Federal Reserve System or with other brokers or dealers
that meet credit guidelines established by the Adviser and reviewed by the Board
of Directors. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
The Fund will always receive and maintain securities as collateral whose market
value, including accrued interest, will be at least equal to 100% of the dollar
amount invested by the Fund in each agreement. The Fund will make payment for
such securities only upon physical delivery or upon evidence of book entry
transfer of
13
<PAGE>
THE GABELLI GLOBAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
--------------------------------------------------------------------------------
the collateral to the account of the custodian. To the extent that any
repurchase transaction exceeds one business day, the value of the collateral is
marked-to-market on a daily basis to maintain the adequacy of the collateral. If
the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited.
OPTIONS. The Fund may purchase or write call or put options on securities or
indices. As a writer of put options, the Fund receives a premium at the outset
and then bears the risk of unfavorable changes in the price of the financial
instrument underlying the option. The Fund would incur a loss if the price of
the underlying financial instrument decreases between the date the option is
written and the date on which the option is terminated. The Fund would realize a
gain, to the extent of the premium, if the price of the financial instrument
increases between those dates.
As a purchaser of put options, the Fund pays a premium for the right to sell to
the seller of the put option the underlying security at a specified price. The
seller of the put has the obligation to purchase the underlying security upon
exercise at the exercise price. If the price of the underlying security
declines, the Fund would realize a gain upon sale or exercise. If the price of
the underlying security increases, the Fund would realize a loss upon sale or at
expiration date, but only to the extent of the premium paid.
FUTURES CONTRACTS. The Fund may engage in futures contracts for the purpose of
hedging against changes in the value of its portfolio securities and in the
value of securities it intends to purchase. Upon entering into a futures
contract, the Fund is required to deposit with the broker an amount of cash or
cash equivalents equal to a certain percentage of the contract amount. This is
known as the "initial margin". Subsequent payments ("variation margin") are made
or received by the Fund each day, depending on the daily fluctuation of the
value of the contract. The daily changes in the contract are included in
unrealized gains or losses. The Fund recognizes a realized gain or loss when the
contract is closed. At June 30, 2000, there were no open futures contracts.
There are several risks in connection with the use of futures contracts as a
hedging device. The change in value of futures contracts primarily corresponds
with the value of their underlying instruments, which may not correlate with the
change in value of the hedged investments. In addition, there is the risk that
the Fund may not be able to enter into a closing transaction because of an
illiquid secondary market.
SECURITIES SOLD SHORT. A short sale involves selling a security which the Fund
does not own. The proceeds received for short sales are recorded as liabilities
and the Fund records an unrealized gain or loss to the extent of the difference
between the proceeds received and the value of the open short position on the
day of determination. The Fund records a realized gain or loss when the short
position is closed out. By entering into a short sale, the Fund bears the market
risk of an unfavorable change in the price of the security sold short. Dividends
on short sales are recorded as an expense by the Fund on the ex-dividend date
and interest expense is recorded on the accrual basis.
14
<PAGE>
THE GABELLI GLOBAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
--------------------------------------------------------------------------------
FORWARD FOREIGN EXCHANGE CONTRACTS. The Fund may engage in forward foreign
exchange contracts for hedging a specific transaction with respect to either the
currency in which the transaction is denominated or another currency as deemed
appropriate by the Adviser. Forward foreign exchange contracts are valued at the
forward rate and are marked-to-market daily. The change in market value is
included in unrealized appreciation/depreciation on investments and foreign
currency transactions. When the contract is closed, the Fund records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate fluctuations in
the underlying prices of the Fund's portfolio securities, but it does establish
a rate of exchange that can be achieved in the future. Although forward foreign
exchange contracts limit the risk of loss due to a decline in the value of the
hedged currency, they also limit any potential gain/(loss) that might result
should the value of the currency increase. In addition, the Fund could be
exposed to risks if the counterparties to the contracts are unable to meet the
terms of their contracts.
FOREIGN CURRENCY TRANSLATION. The books and records of the Fund are maintained
in United States (U.S.) dollars. Foreign currencies, investments and other
assets and liabilities are translated into U.S. dollars at the exchange rates
prevailing at the end of the period, and purchases and sales of investment
securities, income and expenses are translated at the exchange rate prevailing
on the respective dates of such transactions. Unrealized gains and losses, which
result from changes in foreign exchange rates and/or changes in market prices of
securities, have been included in unrealized appreciation/depreciation on
investments and foreign currency transactions. Net realized foreign currency
gains and losses resulting from changes in exchange rates include foreign
currency gains and losses between trade date and settlement date on investment
securities transactions, foreign currency transactions and the difference
between the amounts of interest and dividends recorded on the books of the Fund
and the amounts actually received. The portion of foreign currency gains and
losses related to fluctuation in exchange rates between the initial trade date
and subsequent sale trade date is included in realized gain/(loss) on
investments.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
Dividend income is recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders are recorded on the ex-dividend date. Income distributions and
capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.These
differences are primarily due to differing treatments of income and gains on
various investment securities held by the Fund, timing differences and differing
characterization of distributions made by the Fund.
EXPENSES. Certain administrative expenses are common to, and allocated among,
the Portfolios. Such allocations are made on the basis of each Portfolio's
average net assets or other criteria directly affecting the expenses as
determined by the Adviser.
15
<PAGE>
THE GABELLI GLOBAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
--------------------------------------------------------------------------------
PROVISION FOR INCOME TAXES. The Fund intends to continue to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code of
1986, as amended. As a result, a Federal income tax provision is not required.
Dividends and interest from non-U.S. sources received by the Fund are generally
subject to non-U.S. withholding taxes at rates ranging up to 30%. Such
withholding taxes may be reduced or eliminated under the terms of applicable
U.S. income tax treaties, and the Fund intends to undertake any procedural steps
required to claim the benefits of such treaties. If the value of more than 50%
of the Fund's total assets at the close of any taxable year consists of stocks
or securities of non-U.S. corporations, the Fund is permitted and may elect to
treat any non-U.S. taxes paid by it as paid by its shareholders.
3. INVESTMENT ADVISORY AGREEMENT. The Fund has entered into an investment
advisory agreement (the "Advisory Agreement") with the Adviser which provides
that the Fund will pay the Adviser a fee, computed daily and paid monthly, at
the annual rate of 1.00% of the value of the Fund's average daily net assets. In
accordance with the Advisory Agreement, the Adviser provides a continuous
investment program for the Fund's portfolio, oversees the administration of all
aspects of the Fund's business and affairs and pays the compensation of all
Officers and Directors of the Fund who are its affiliates.
4. DISTRIBUTION PLAN. The Fund's Board of Directors has adopted a distribution
plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act. For the six months
ended June 30, 2000, the Fund incurred distribution costs payable to Gabelli &
Company, Inc., an affiliate of the Adviser, of $639,744 and $82 for Class AAA
and Class A, respectively, or 0.25% of average daily net assets, the annual
limitation under the Plan. Class B and Class C incurred distribution costs of
$69 and $53, respectively, or 1.00% of average daily net assets, the annual
limitation under the Plan. Such payments are accrued daily and paid monthly.
5. PORTFOLIO SECURITIES. Purchases and sales of securities for the six months
ended June 30, 2000, other than short term securities, aggregated $278,118,394
and $209,205,577, respectively.
6. TRANSACTIONS WITH AFFILIATES. During the six months ended June 30, 2000, the
Fund paid brokerage commissions of $26,475 to Gabelli & Company, Inc. and its
affiliates. During the six months ended June 30, 2000, Gabelli & Company, Inc.
informed the Fund that it received $1,253 from investors representing
commissions (sales charges and underwriting fees) on sales of Fund shares.
7. LINE OF CREDIT. The Fund has access to an unsecured line of credit up to
$25,000,000 from the custodian for temporary borrowing purposes. Borrowings
under this arrangement bear interest at 0.75% above the Federal Funds rate on
outstanding balances.There were $15,700,000 of borrowings outstanding at June
30, 2000.
The average daily amount of borrowings outstanding within the six months ended
June 30, 2000 was $6,645,729, with a related weighted average interest rate of
6.72%. The maximum amount borrowed at any time during the six months ended June
30, 2000 was $23,109,000.
16
<PAGE>
THE GABELLI GLOBAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
--------------------------------------------------------------------------------
8. CAPITAL STOCK TRANSACTIONS. Transactions in shares of capital stock were as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31, 1999
--------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ------------- -------- -----------
CLASS AAA CLASS AAA
---------------------------- --------------------------
<S> <C> <C> <C> <C>
Shares sold ................................ 18,464,329 $ 623,003,328 16,435,138 $ 414,468,705
Shares issued upon reinvestment of dividends -- -- 499,066 16,715,218
Shares redeemed ............................ (16,369,912) (548,545,517) (8,558,353) (215,524,540)
----------- ------------- ---------- -------------
Net increase ........................... 2,094,417 $ 74,457,811 8,375,851 $ 215,659,383
=========== ============= ========== =============
CLASS A (A)
---------------------------
Shares sold ................................ 4,819 $ 170,750
=========== =============
CLASS B (A)
---------------------------
Shares sold ................................ 1,573 $ 50,124
=========== =============
CLASS C (A)
---------------------------
Shares sold ................................ 809 $ 29,135
=========== =============
</TABLE>
(a) From commencement of offering on March 1, 2000.
9. NEW SHARE CLASSES. The Board of Directors of the Fund approved a Rule 18f-3
Multi-Class Plan relating to the creation of three additional classes of shares
of the Fund -- Class A Shares, Class B Shares and Class C Shares (the "New Share
Classes"). The existing class of shares was redesignated as Class AAA Shares. In
addition, the Board has also approved an Amended and Restated Distribution
Agreement, Rule 12b-1 plans for each of the New Share Classes and an Amended and
Restated Plan of Distribution for the existing class of shares (Class AAA
shares). The New Share Classes were offered to the public as of March 1, 2000.
Class A shares are subject to a maximum front-end sales charge of 5.75%. Class B
shares are subject to a contingent deferred sales charge (CDSC) upon redemption
within six years of purchase. The applicable CDSC is equal to a declining
percentage of the lesser of the net asset value per share at the date of
original purchase or at the date of redemption, based on the length of time
held. Class C shares are subject to a 1% CDSC for two years after purchase.
17
<PAGE>
THE GABELLI GLOBAL GROWTH FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS DISTRIBUTIONS
--------------------------------------------------- ------------------------------------------------------------------
Net In Excess
Net Asset Net Realized and Total In Excess Net of Net
Period Value, Investment Unrealized from Net of Net Realized Realized
Ended Beginning Income Gain (Loss) on Investment Investment Investment Gain on Gain on Total
December 31 of Period (Loss) Investments Operations Income Income Investments Investments Distributions
------------ ---------- ---------- -------------- ---------- ---------- ----------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS AAA
2000(a) $35.17 $(0.14) $(3.57) $(3.71) -- -- -- -- --
1999 16.99 (0.13) 19.77 19.64 -- $(0.00)(c) (1.46) -- (1.46)
1998 14.28 0.11 3.98 4.09 $(0.11) -- (1.23) $(0.04) (1.38)
1997 11.75 (0.07) 4.97 4.90 -- -- (2.37) -- (2.37)
1996 11.72 (0.09) 1.56 1.47 -- (1.44) -- -- (1.44)
1995 10.25 (0.01) 1.84 1.83 -- (0.36) -- -- (0.36)
CLASS A
2000(a)(b) 38.80 (0.13) (7.21) (7.34) -- -- -- -- --
CLASS B
2000(a)(b) 38.80 (0.22) (7.14) (7.36) -- -- -- -- --
CLASS C
2000(a)(b) 38.80 (0.22) (7.14) (7.36) -- -- -- -- --
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
---------------------------------------------------
Net
Net Asset Net Assets Investment Operating
Period Value, End of Income (Loss) Expenses to Portfolio
Ended End of Total Period to Average Average Net Turnover
December 31 Period Return+ (in 000's) Net Assets Assets (d)(e) Rate
------------ ---------- ------- ---------- ------------ ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS AAA
2000(a) $31.46 (10.6)% $466,451 (0.81)%(f) 1.48%(f) 44%
1999 35.17 116.1 447,769 (0.85) 1.58 63
1998 16.99 28.9 73,999 (0.66) 1.66 105
1997 14.28 41.7 40,558 (0.61) 1.78 68
1996 11.75 12.5 37,779 (0.70) 2.06 47
1995 11.72 17.9 31,439 (0.07) 2.47 33
CLASS A
2000(a)(b) 31.46 (18.9) 152 (0.81)(f) 1.48(f) 44
CLASS B
2000(a)(b) 31.44 (19.0) 49 (1.56)(f) 2.23(f) 44
CLASS C
2000(a)(b) 31.44 (19.0) 25 (1.56)(f) 2.23(f) 44
</TABLE>
--------------------------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
(a) For the period ended June 30, 2000; unaudited.
(b) From commencement of offering on March 1, 2000.
(c) Amount represents less than $0.005 per share.
(d) The Fund incurred interest expense during the years ended December 31, 1999,
1998 and 1997. If interest expense had not been incurred, the ratios of
operating expenses to average net assets would have been 1.55%, 1.63% and
1.64%, respectively.
(e) The Fund incurred interest expense during the six months ended June 30,
2000. If interest expense had not been incurred, the ratios of operating
expenses to average net assets would have been 1.39%, 1.39%, 2.14% and 2.14%
for Class AAA, Class A, Class B and Class C, respectively.
(f) Annualized.
See accompanying notes to financial statements.
18
<PAGE>
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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 GROWTH 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 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 Growth Fund. It is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective prospectus.
--------------------------------------------------------------------------------
GAB442Q200SR
[PHOTO OF MARIO J. GABELLI OMITTED]
THE
GABELLI
GLOBAL
GROWTH FUND
SEMI-ANNUAL REPORT
JUNE 30, 2000
