[GRAPHIC OF FLAGS OMITTED]
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
SEMI-ANNUAL REPORT
JUNE 30, 2000
[GRAPHIC OF 5 STARS OMITTED]
MORNINGSTAR RATED(TM) GABELLI GLOBAL TELECOMMUNICATIONS FUND 5
STARS OVERALL AND FOR THE THREE-YEAR PERIOD ENDED 06/30/00
AMONG 3642 DOMESTIC EQUITY FUNDS, AND FOR THE FIVE-YEAR
PERIOD ENDED 06/30/00 AMONG 2328 DOMESTIC EQUITY FUNDS.
TO OUR SHAREHOLDERS,
Investors hung up on global telecommunications stocks in the second
quarter of 2000. In general, telecommunications companies met earnings
expectations, industry fundamentals remained strong, and although regulators
increased their scrutiny of proposed mergers in the telecommunications industry,
deals were still getting done. However, concern over high valuations and
investor uneasiness sparked by the sharp technology stock correction inspired a
bout of profit taking in the telecommunications sector.
Looking ahead, the long-term outlook for telecommunications stocks remains
quite bright. New technology, new products and services, deregulation, and
consolidation, the four forces that have been propelling telecommunications
stocks, are still in place. We believe that after a brief time on hold,
telecommunications stocks will regain momentum.
INVESTMENT PERFORMANCE
For the second quarter ended June 30, 2000, The Gabelli Global
Telecommunications Fund's Class AAA Shares (the "Fund") net asset value declined
10.15%. The Morgan Stanley Capital International World Free Index of global
equity markets and Salomon Smith Barney Global Telecommunications Index declined
3.81% and 20.90%, respectively, over the same period. Each index is an unmanaged
indicator of stock market performance. The Fund was up 28.70% over the trailing
twelve-month period. The Morgan Stanley World Free Index and Salomon Smith
Barney Global Telecommunications Index rose 12.37% and 19.80%, respectively,
over the same twelve-month period.
For the five-year period ended June 30, 2000, the Fund's total return
averaged 29.31% annually versus average annual returns of 16.62% and 26.76% for
the Morgan Stanley World Free Index and Salomon Smith Barney Global
Telecommunications Index, respectively. Since inception on November 1, 1993
--------------------------------------------------------------------------------
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.
<PAGE>
INVESTMENT RESULTS (CLASS AAA SHARES) (a)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
Quarter
---------------------------------------
1st 2nd 3rd 4th Year
<S> <C> <C> <C> <C> <C>
--- --- --- --- ----
2000: Net Asset Value .................... $28.28 $25.41 -- -- --
Total Return ....................... 4.9% (10.2)% -- -- --
-------------------------------------------------------------------------------------------------------------
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)
---------------------------------
June 30, 2000 (a)
-----------------
1 Year ........................ 28.70%
5 Year ........................ 29.31%
Life of Fund (b) .............. 22.14%
-------------------------------------------------
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.
--------------------------------------------------------------------------------
through June 30, 2000, the Fund had a cumulative total return of 279.45%, which
equates to an average annual total return of 22.14%.
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
Telecommunications Fund Class A Shares, Class B Shares and Class C Shares had
total returns of (10.11)%, (10.15)% and
2
<PAGE>
(10.15)%, 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 $25.42, $25.40 and $25.40, respectively.
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 REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
HOLDINGS BY GEOGRAPHIC REGION - 6/30/00
United States .................... 49.9%
Cash ............................. 15.3%
Europe ........................... 10.8%
Canada ........................... 8.9%
Japan ............................ 4.7%
Asia/Pacific Rim ................. 6.8%
Latin America .................... 3.6%
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
HOLDINGS BY INDUSTRY SECTOR - 6/30/00
Wireless/Satelite ................ 24.6%
Local ............................ 18.6%
National ......................... 14.4%
Cable/Media ...................... 11.0%
Equipment ........................ 6.1%
Long Distance .................... 4.6%
Utilities ........................ 3.1%
Broadband ........................ 0.7%
Business Services ................ 1.6%
Cash ............................. 15.3%
INDUSTRY ALLOCATION
The accompanying chart depicts the Fund's holdings by industry sector as
of June 30, 2000. Industry sectors represented in the chart and below may or may
not be included in the Fund's future portfolio.
COMMENTARY
TMT
Last year the Fund excelled in what pundits called the "TMT" (Technology,
Media, and Telecommunications) stock market. This quarter, "tmt" has been
reduced to lowercase letters, as all three groups declined. Telecommunications
stocks were not hit nearly as hard as technology stocks, but drifted
substantially lower than last quarter's marks. We believe industry fundamentals
remain sound and that earnings will continue to grow at an attractive pace.
However, we concede that after several years of exceptional performance,
telecommunications stock prices had become extended and some profit taking was
justified.
We are not wringing our hands over this decline. With momentum investors
playing an increasingly active role in the market, stocks in spotlight
industries such as telecommunications will periodically become overvalued and
vulnerable to a correction. This hardly diminishes their long-term
attractiveness. As we have frequently stated, modern telecommunications systems
are critical for economic success on the world stage. Technology is creating new
ways to transmit voice and data and a wealth of new products and services that
businesses and consumers desire. Regulatory barriers continue to come down.
Merger and acquisition activity should remain strong as telecommunications
companies seek to improve their competitive positions in the industry and extend
their franchises. In short, the long-term outlook could not be brighter.
3
<PAGE>
Competition in the various sectors of the telecommunications industry will
produce winners and losers. Our research strives to identify those companies
best positioned to prosper. If we succeed, we believe the Fund will continue to
deliver attractive returns to shareholders.
THE SCORECARD
In recent quarters, we have had an exceptionally high portfolio batting
average in a very enthusiastic telecommunications stock market. This quarter, we
experienced a mid-season slump. We do not think we were swinging at bad pitches,
but that widespread profit taking threw a sweeping curve at telecommunications
investors.
A few of the Fund's smaller holdings hit home runs, such as Furukawa
Electric, Cable & Wireless Jamaica, and Harcourt General, which hired an
investment backer to explore strategic options, including the possible sale of
the company. Some of the larger holdings in the Fund hit for extra bases. Media
giant Viacom put up good numbers, our largest cable television holding
Cablevision Systems posted a nice gain, and Regional Bell Operating Company SBC
Communications came through in the clutch.
Our European, Asian, and Latin American telecommunications investments all
struck out and our wireless holdings never got the bat off their shoulders. Both
of these sectors had been knocking the cover off the ball in recent quarters and
were particularly vulnerable to profit taking. Investors also booed AT&T, the
Babe Ruth of the telecommunications industry.
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.
AT&T WIRELESS GROUP (AWE - $27.875 - NYSE), owned by AT&T Corp., is the second
largest wireless carrier in the U.S., 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.
CABLE & WIRELESS PLC (CWP - $50.0625 - NYSE) is a United Kingdom-based provider
of global telecommunications network services. Its key assets include ownership
in leading voice, data & IP 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 is still pending and is expected to close shortly. As
a result of this transaction, CWP will hold a meaningful position in PCCW.
CENTURYTEL INC. (CTL - $28.75 - 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,
4
<PAGE>
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
competitive local exchange carrier operations.
GTE CORP. (GTE - $62.25 - NYSE), following its merger with Bell Atlantic (BEL -
$50.8125 - 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.
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.
NORTEL NETWORKS CORP. (NT - $68.25 - NYSE), formerly Northern Telecom, is a
leading global supplier of data and telephony network solutions and services.
Its business consists of the design, development, manufacture, marketing, sale,
financing, installation, servicing and support of data and telephony networks
for carrier and enterprise customers. Customers include public and private
institutions; local, long-distance, personal communications services and
cellular mobile communications companies; cable television companies; Internet
service providers; and utilities. NT has a presence in over 150 countries
worldwide.
SBC COMMUNICATIONS INC. (SBC - $43.25 - 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 - $34.00 - NYSE), Belgacom, Cegetel and other companies as well
as in Canada through ownership of Bell Canada (BCICF - $28.9375 - NASDAQ) and in
Mexico through Telmex (TMX - $57.125 - NYSE). In April, SBC announced the
formation of a joint venture with BellSouth (BLS - $42.625 - NYSE). The
companies will combine their domestic wireless operations, forming the second
largest wireless carrier in the U.S. behind Verizon Wireless (VZ - NYSE).
5
<PAGE>
TELECOM ITALIA MOBILE SPA (TIM.MI - $10.24 - MILAN STOCK EXCHANGE), formerly a
subsidiary of Telecom Italia (the provider of wired local and long distance
telephone service in Italy), was spun-off in July 1998 and began trading on the
Milan Stock Exchange as an independent company. Telecom Italia Mobile is the
leading cellular provider in Italy and Europe, with over 19 million Global
Systems for Mobile Communications ("GSM") subscribers. The competitive
environment in which Telecom Italia Mobile operates remains favorable, with only
two competitors, Omnitel and Wind.
TELEPHONE & DATA SYSTEMS INC. (TDS - $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 - $116.2969 - NYSE), TDS
now owns 35.6 million shares of VSTR valued at over $5.0 billion.
VOICESTREAM WIRELESS CORP. (VSTR - $116.2969 - 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 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 discount 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
In recent years, we have benefited from a vibrant telecommunications stock
market. We believe that solid earnings, sound fundamentals, and the powerful
secular growth trends in the industry justified this advance. This quarter, we
experienced some static on the line in the form of widespread profit taking.
Going forward, there will be other interruptions to contend with in the rapidly
changing telecommunications industry. However, we believe our research driven
approach to one of the pre-eminent growth industries in the world will continue
to reward shareholders.
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 OMITTED /S/ SIGNATURE OMITTED
MARIO J. GABELLI, CFA MARC J. GABELLI
Portfolio Manager and Associate Portfolio Manager
Chief Investment Officer
/S/ SIGNATURE
IVAN ARTEAGA, CFA
Associate Portfolio Manager
July 14, 2000
------------------------------------------------------------
TOP TEN HOLDINGS
JUNE 30, 2000
-------------
Telephone & Data Systems Inc. SBC Communications Inc.
Cable & Wireless plc CenturyTel Inc.
Liberty Media Group GTE Corp.
Nortel Networks Corp. VoiceStream Wireless Corp.
AT&TWireless Group Telecom Italia Mobile SpA
-------------------------------------------------------------
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 -- JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------- ---- -------
COMMON STOCKS -- 82.3%
BROADCASTING -- 1.0%
60,000 CanWest Global
Communications Corp. ................ $ 753,126 $ 663,750
47,300 Chris-Craft Industries Inc.+ ........ 3,023,532 3,124,756
65,000 Paxson Communications
Corp., Cl. A+ ..................... 692,545 552,500
1,000 TiVo Inc.+ .......................... 16,000 35,000
---------- -----------
4,485,203 4,376,006
---------- -----------
BUSINESS SERVICES -- 1.6%
9,000 Carlisle Holdings Ltd.+ ............. 48,250 66,094
8,000 Convergys Corp.+ .................... 107,102 415,000
20,000 Donnelley (R.H.) Corp. .............. 272,932 387,500
37,000 IDT Corp.+ .......................... 592,160 1,255,687
70,000 Securicor Group plc ................. 0 144,312
1,000 StarTek Inc.+ ....................... 24,300 50,375
67,000 Verio Inc.+ ......................... 3,884,758 3,717,453
12,600 Vivendi ............................. 566,512 1,112,159
---------- -----------
5,496,014 7,148,580
---------- -----------
CABLE -- 4.4%
13,000 Adelphia Communications
Corp., Cl. A+ ..................... 603,245 609,375
11,500 Austar United Communications
Ltd.+ ............................. 40,409 38,817
80,000 Cablevision Systems
Corp., Cl. A+ ..................... 3,480,912 5,430,000
35,000 Charter Communications
Inc., Cl. A+ ...................... 577,187 575,312
27,000 Comcast Corp., Cl. A ................ 214,182 1,049,625
27,000 Comcast Corp., Cl. A, Special ....... 214,182 1,093,500
11,550 Cox Communications Inc.+ ............ 407,137 526,247
25,000 Mediacom
Communications Corp.+ ............. 294,375 384,375
72,560 NTL Inc.+ ........................... 2,248,823 4,344,530
25,090 Telewest Communications
plc, ADR+ ......................... 441,142 928,330
100,000 UnitedGlobalCom Inc., Cl. A+ ........ 1,908,127 4,675,000
10,000 Videotron Groupe .................... 125,234 232,432
---------- -----------
10,554,955 19,887,543
---------- -----------
COMMUNICATIONS EQUIPMENT -- 5.7%
20,000 360networks Inc.+ ................... 330,406 305,000
200,000 Allen Telecom Inc.+ ................. 1,004,999 3,537,500
120,000 Champion Technology
Holdings, ADR ..................... 81,258 24,629
15,000 Communications Systems Inc. ......... 148,852 228,750
32,000 Ericsson (L.M.) Telephone
Co., Cl. B, ADR ................... 55,422 640,000
100,000 Furukawa Electric Co. Ltd. .......... 1,625,794 2,087,752
MARKET
SHARES COST VALUE
------- ---- -------
13,000 Gemstar International
Group Ltd.+ ....................... $ 157,867 $ 798,891
2,500 General Semiconductor Inc. .......... 33,120 36,875
17,000 GN Store Nord A/S ................... 378,416 1,716,315
3,500 L-3 Communications
Holdings Inc.+ .................... 77,000 199,719
6,000 Lucent Technologies Inc. ............ 68,962 355,500
44,625 Motorola Inc. ....................... 1,302,068 1,296,914
28,000 Nokia Corp., Cl. A, ADR ............. 67,091 1,398,250
155,000 Nortel Networks Corp. ............... 8,689,706 10,578,750
24,000 Scientific-Atlanta Inc. ............. 197,408 1,788,000
500 Siemens AG, ADR ..................... 23,625 75,425
300,000 Time Engineering Berhad+ ............ 316,448 263,684
15,000 TNT Post Group NV, ADR .............. 198,278 404,062
---------- -----------
14,756,720 25,736,016
---------- -----------
COMPUTER SOFTWARE AND SERVICES -- 0.5%
3,230 EarthLink Inc.+ ..................... 45,250 49,863
3,000 El Sitio Inc. ....................... 54,912 21,375
120,000 Genuity Inc. + ...................... 1,241,568 1,098,750
100 Geoworks Corp. ...................... 2,900 1,575
2,500 Korea Thrunet Co. Ltd., Cl. A+ ...... 45,000 35,000
26,000 NBC Internet Inc., Cl. A+ ........... 1,329,805 325,000
12,000 Net2Phone Inc.+ ..................... 502,250 428,250
150,000 Pacific Century
CyberWorks Ltd. ................... 321,391 296,325
2,000 T-Online International AG+ .......... 71,334 64,446
400 Via Net.Works Inc.+ ................. 8,400 6,175
---------- -----------
3,622,810 2,326,759
---------- -----------
DIVERSIFIED INDUSTRIAL -- 0.1%
22,000 Hutchison Whampoa Ltd. .............. 198,387 276,570
---------- -----------
ENERGY AND UTILITIES -- 3.1%
350,000 Conectiv Inc. ....................... 6,013,412 5,446,875
3,000 E'Town Corp. ........................ 187,175 199,312
170,000 El Paso Electric Co.+ ............... 1,567,625 1,901,875
12,000 Florida Public Utilities Co. ........ 189,600 187,500
10,000 FPL Group Inc. ...................... 422,500 495,000
10,000 LG&E Energy Corp. ................... 219,875 238,750
5,000 Montana Power Co. ................... 142,250 176,562
37,862 SCANA Corp. ......................... 965,499 913,421
8,000 SJW Corp. ........................... 936,700 951,000
97,000 United Water Resources Inc. ......... 3,344,069 3,382,875
---------- -----------
13,988,705 13,893,170
---------- -----------
ENTERTAINMENT -- 4.2%
1,350 Fisher Companies Inc. ............... 100,403 103,275
3,000 Liberty Digital Inc.+ ............... 74,075 90,000
460,000 Liberty Media Group, Cl. A+ ......... 2,542,949 11,155,000
65,177 Metromedia International
Group Inc.+ ........................ 573,245 309,591
10,000 Seagram Co. .......................... 579,113 580,000
See accompanying notes to financial statements.
8
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------- ---- -------
COMMON STOCKS (CONTINUED)
ENTERTAINMENT (CONTINUED)
25,000 Time Warner Inc. ..................... $ 1,905,500 $ 1,900,000
85,000 TV Guide Inc., Cl. A+ ................ 2,180,712 2,911,250
15,000 USA Networks Inc.+ ................... 342,375 324,375
20,000 Viacom Inc., Cl. A+ .................. 920,450 1,367,500
----------- -----------
9,218,822 18,740,991
----------- -----------
EQUIPMENT AND SUPPLIES -- 0.2%
10,000 Amphenol Corp., Cl. A+ ............... 155,553 661,875
20,000 Thyssen Krupp AG+ .................... 367,787 320,796
----------- -----------
523,340 982,671
----------- -----------
PUBLISHING -- 0.6%
20,000 Harcourt General Inc. ................ 892,801 1,087,500
12,000 Media General Inc., Cl. A ............ 600,929 582,750
8,000 News Corp. Ltd., ADR ................. 179,087 436,000
100,000 Seat-Pagine Gialle SpA ............... 28,390 346,574
10,000 Telegraaf Holdingsmij - CVA .......... 238,694 229,140
----------- -----------
1,939,901 2,681,964
----------- -----------
RETAIL -- 0.0%
18,000 Homegrocer.com Inc.+ ................. 172,375 108,562
----------- -----------
SATELLITE -- 2.5%
500 Asia Satellite
Telecommunications
Holdings Ltd., ADR ................. 9,753 17,125
1,000 British Sky Broadcasting
Group, ADR ......................... 36,400 116,125
120,879 COMSAT Corp. ......................... 3,346,136 2,984,200
48,000 EchoStar Communications
Corp., Cl. A+ ...................... 261,746 1,589,250
48,000 General Motors Corp., Cl. H+ ......... 3,036,309 4,212,000
16,000 Globalstar Telecommunications
Ltd.+ .............................. 55,724 144,000
155,000 Loral Space &
Communications Ltd.+ ............... 1,869,647 1,075,312
10,000 Orbital Sciences Corp.+ .............. 216,731 121,875
4,000 PanAmSat Corp.+ ...................... 193,375 174,750
10,000 Pegasus Communications Corp.+ ........ 185,870 490,625
10,000 PT Indosat Tbk, ADR .................. 146,877 113,750
35,500 TCI Satellite Entertainment
Inc., Cl. A+ ....................... 239,524 308,406
----------- -----------
9,598,092 11,347,418
----------- -----------
TELECOMMUNICATIONS: BROADBAND -- 0.6%
1,000 Adelphia Business Solutions Inc.+ .... 18,634 23,187
30,000 BroadWing Inc.+ ...................... 568,505 778,125
4,000 Choice One Communications Inc.+ ...... 80,000 163,250
3,500 Colt Telecom Group plc+ .............. 27,891 474,687
7,000 Davel Communications
Group Inc.+ ........................ 33,585 2,406
MARKET
SHARES COST VALUE
------- ---- -------
10,000 Golden Telecom Inc. .................. $ 102,392 $ 297,500
25,000 GST Telecommunications Inc.+ ......... 274,942 23,828
18,000 ICG Communications Inc+ .............. 238,475 397,125
5,000 Intermedia Communications Inc.+ ...... 58,807 148,750
1,500 Jazztel plc, ADR+ .................... 26,170 39,375
18,000 McLeodUSA Inc., Cl. A+ ............... 52,620 372,375
5,000 Startec Global
Communications Corp.+ .............. 40,321 53,437
8,000 United Pan-Europe
Communications NV,
Cl. A, ADR+ ........................ 182,240 216,000
10,000 USN Communications Inc.+ ............. 19,252 300
----------- -----------
1,723,834 2,990,345
----------- -----------
TELECOMMUNICATIONS: LOCAL -- 17.9%
96,924 Aliant Inc.+ ......................... 1,671,886 2,367,434
3,000 Allegiance Telecom Inc.+ ............. 28,500 192,000
80,000 ALLTEL Corp. ......................... 3,476,417 4,955,000
24,000 AT&T Canada Inc., Cl. B+ ............. 743,432 796,500
15,200 Atlantic Tele-Network Inc. ........... 129,263 143,450
89,000 Bell Atlantic Corp. .................. 4,806,198 4,522,313
55,000 BellSouth Corp. ...................... 982,546 2,344,375
330,000 CenturyTel Inc. ...................... 10,360,019 9,487,500
500 Cia Riograndense Telecom ............. 310 169
450,000 Citizens Communications Co. .......... 4,516,086 7,762,500
122,817 Commonwealth Telephone
Enterprises Inc.+ .................. 3,235,469 5,780,075
40,500 Commonwealth Telephone
Enterprises Inc., Cl. B+ ........... 494,914 1 ,923,750
1,500 Conestoga Enterprises Inc. ........... 27,020 27,469
82,850 CoreComm Ltd.+ ....................... 1,464,422 1,615,575
20,000 E.Spire Communications Inc. .......... 112,813 135,000
25,000 Eircom plc ........................... 100,958 64,147
12,000 Electric Lightwave Inc., Cl. A+ ...... 122,938 224,250
150,000 First Pacific Co. Ltd. ............... 90,040 50,991
15,000 First Pacific Co. Ltd., ADR .......... 54,312 25,495
9,520 Global Telesystems Group Inc.+ ....... 83,339 114,835
152,000 GTE Corp. ............................ 9,007,198 9,462,000
65,000 RCN Corp.+ ........................... 582,157 1,649,375
260,000 Rogers Communications Inc.,
Cl. B, ADR+ ........................ 2,942,300 7,410,000
225,000 SBC Communications Inc. .............. 7,921,328 9,731,250
9,000 Shenandoah
Telecommunications Co. ............. 217,188 279,000
26,000 Sonera Group Oyj ..................... 923,598 1,185,322
4,600 Tele Centro Sul Participacoes
SA, ADR ............................ 268,866 336,087
25,693 Tele Norte Leste Participacoes
SA, ADR ............................ 368,347 606,997
20,000 Telecom Argentina Stet France
Telecom SA, ADR .................... 444,848 550,000
See accompanying notes to financial statements.
9
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------- ---- -------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS: LOCAL (CONTINUED)
1,000,000 TelecomAsia Corp. Public
Co. Ltd. ............................ $ 687,194 $ 1,110,402
6,578,531 Telecomunicacoes de
Sao Paulo SA (Telesp) ............... 101,286 71,859
33,000 Telecomunicacoes de
Sao Paulo SA (Telesp), ADR .......... 1,153,000 610,500
5,000 Time Warner Telecom Inc.,
Cl. A+ .............................. 70,000 321,875
58,000 US West Inc. ......................... 3,371,775 4,973,500
----------- ------------
60,559,967 80,830,995
----------- ------------
TELECOMMUNICATIONS: LONG DISTANCE -- 4.5%
201,000 AT&T Corp. ........................... 6,763,104 6,356,625
25,000 Call-Net Enterprises Inc.+ ........... 236,026 64,865
270 DDI Corp. ............................ 1,237,907 2,595,787
23,000 Embratel Participacoes
SA, ADR+ ............................ 476,687 543,375
68,000 General Communication
Inc., Cl. A+ ........................ 300,203 348,500
140,000 Global Crossing Ltd.+ ................ 3,677,352 3,683,750
14,000 KDD Corp. ............................ 813,222 1,411,942
20,000 Qwest Communications
International Inc.+ ................. 562,704 993,750
5,000 RSL Communications Ltd., Cl. A+ ...... 108,125 57,188
40,000 Sprint Corp.+ ........................ 484,192 2,040,000
25,000 Teleglobe Inc. ....................... 500,061 527,252
5,000 Telegroup Inc.+ ...................... 20,540 50
45,000 VDC Communications Inc.+ ............. 165,308 67,500
38,000 Viatel Inc.+ ......................... 524,323 1,085,375
12,000 WorldCom Inc.+ ....................... 229,975 550,500
----------- ------------
16,099,729 20,326,459
----------- ------------
TELECOMMUNICATIONS: NATIONAL -- 13.9%
165,000 BCE Inc. ............................. 6,077,334 3,929,063
1,500 British Telecommunications
plc, ADR ............................ 139,700 198,375
15,000 Cable & Wireless plc ................. 200,153 253,974
290,208 Cable & Wireless plc, ADR ............ 8,961,901 14,528,538
30,000 Cable & Wireless HKT Ltd., ADR ....... 569,621 645,000
11,345,453 Cable & Wireless Jamaica Ltd. ........ 406,750 676,938
500 China Unicom Ltd., ADR ............... 9,995 10,625
64,000 Compania de Telecomunicaciones
de Chile SA, ADR .................... 988,703 1,160,000
31,000 Deutsche Telekom AG, ADR+ ............ 1,279,238 1,759,250
2,000 France Telecom SA, ADR ............... 68,975 285,000
4,707 Hellenic Telecommunications
Organization SA ..................... 76,629 115,324
2,200 Hellenic Telecommunications
Organization SA, ADR+ ............... 32,010 26,813
MARKET
SHARES COST VALUE
------- ---- -------
8,000 Hungarian Telephone &
Cable Corp.+ ........................ $ 54,232 $ 48,000
80 Japan Telecom Co. Ltd. ............... 1,328,442 3,468,589
5,000 Korea Telecom Corp. .................. 183,166 440,349
30,000 KPN NV, ADR .......................... 272,243 1,348,125
500 Magyar Tavkozlesi Rt, ADR ............ 9,650 17,219
237 Nippon Telegraph &
Telephone Corp. ..................... 2,324,781 3,149,724
11,500 Nippon Telegraph &
Telephone Corp., ADR ................ 514,463 786,313
1,500 Pakistan Telecommunications,
GDR (a) ............................. 137,766 77,401
50,000 Philippine Long Distance
Telephone Co., ADR .................. 1,358,600 887,500
60,000 Portugal Telecom SA, ADR ............. 233,785 675,000
21,600 PT Telekomunikasi
Indonesia, ADR ...................... 229,279 149,850
7,000 Rostelecom, ADR ...................... 56,366 95,375
100,000 Singapore
Telecommunications Ltd. ............. 196,150 146,497
80,000 Swisscom AG, ADR ..................... 2,829,462 2,820,000
20,000 Tele Danmark A/S, ADR ................ 333,831 680,000
21,000 Telecom Corp. of
New Zealand Ltd., ADR ............... 502,962 590,625
190,000 Telecom Italia SpA ................... 448,033 2,606,753
19,000 Telecom Italia SpA, ADR .............. 863,047 2,613,688
3,355,677 Telecomunicacoes de Rio de
Janeiro SA .......................... 148,557 94,893
28,000 Telefonica de Argentina SA,
Cl. B, ADR ......................... 848,862 889,000
21,000 Telefonica del Peru, ADR ............. 356,624 238,875
500,000 Telefonica del Peru, Cl. B ........... 722,310 719,713
68,340 Telefonica SA, ADR ................... 909,826 4,378,031
62,000 Telefonos de Mexico SA,
Cl. L, ADR .......................... 1,185,988 3,541,750
304,000 Telekom Malaysia Berhad .............. 1,432,905 1,048,000
2,400 Telstra Corp. Ltd., ADR .............. 47,304 49,650
71,079 TELUS Corp. .......................... 1,343,713 1,897,041
200,000 TELUS Corp., Non-Voting .............. 4,682,666 5,331,081
8,075 Thai Telephone &
Telecom, GDR+ (a) ................... 100,542 4,038
3,000 Veba AG .............................. 126,255 147,222
----------- ------------
42,592,819 62,529,202
----------- ------------
WIRELESS COMMUNICATIONS -- 21.5%
40,000 ABC Communications
Holdings Ltd. ....................... 20,301 6,260
1,000 AirGate PCS Inc.+ .................... 80,100 52,563
360,000 AT&T Wireless Group+ ................. 10,620,000 10,035,000
533 Bouygues Group ....................... 81,078 356,217
500 Celular CRT Participacoes ............ 206 219
14,500 Centennial Cellular Corp., Cl. A+ .... 190,710 199,375
See accompanying notes to financial statements.
10
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------- ---- -------
COMMON STOCKS (CONTINUED)
WIRELESS COMMUNICATIONS (CONTINUED)
300 China Telecom
(Hong Kong) Ltd., ADR ............... $ 49,927 $ 53,344
2,000 Clearnet Communications
Inc., Cl. A+ ........................ 25,000 55,531
35,000 CP Pokphand, ADR+ .................... 259,575 30,306
6,000 Dobson Communications
Corp., Cl. A+ ....................... 129,250 115,500
5,300 Easycall Group+ ...................... 8,992 1,781
240,000 Europolitan Holdings AB .............. 220,306 2,979,930
42,988 Grupo Iusacell SA de CV, ADR+ ........ 478,228 671,687
26,000 Himachal Futuristic (a) .............. 141,200 2,522,000
24,000 Jasmine International+ ............... 117,135 7,811
42,000 Leap Wireless International Inc.+ .... 426,250 1,974,000
42,000 Libertel NV+ ......................... 806,210 639,587
1,000 Metricom Inc.+ ....................... 29,562 27,875
1,500 Metrocall Inc.+ ...................... 11,138 13,500
3,000 Motient Corp.+ ....................... 38,340 47,062
35,600 Nextel Communications
Inc., Cl. A+ ........................ 461,024 2,178,275
200 Nextel Partners Inc., Cl. A+ ......... 7,050 6,513
270 NTT Mobile Communications
Network Inc. ........................ 3,363,166 7,303,831
25,000 PNV.net Inc. ......................... 249,063 34,375
80,000 Price Communications Corp.+ .......... 616,348 1,885,000
140,000 Rogers Cantel Mobile .
Communications Inc., Cl. B+ ......... 1,739,219 4,707,500
20,000 Rural Cellular Corp., Cl. A+ ......... 236,793 1,531,250
145,000 SK Telecom Co. Ltd., ADR ............. 1,732,957 5,265,313
20,000 Sprint Corp. (PCS Group)+ ............ 84,112 1,190,000
80,000 Technology Resources Industries ...... 309,067 85,053
2,300 Tele Celular Sul
Participacoes SA, ADR ............... 37,449 104,075
7,666 Tele Centro Oeste Celular
Participacoes SA, ADR ............... 22,224 91,992
460 Tele Leste Celular
Participacoes SA, ADR ............... 12,153 20,355
1,150 Tele Nordeste Celular
Participacoes SA, ADR ............... 16,568 79,638
460 Tele Norte Celular
Participacoes SA, ADR ............... 7,079 23,345
10,600 Tele Sudeste Celular
Participacoes SA, ADR ............... 442,968 323,300
5,000 Telecel-Comunicacaoes
Pessoais SA, ADR .................... 67,584 75,903
801,000 Telecom Italia Mobile SpA ............ 2,640,872 8,205,815
2,000 TeleCorp PCS Inc. .................... 40,000 80,625
1,150 Telemig Celular Participacoes
SA, ADR ............................. 30,497 82,225
230,000 Telephone & Data Systems Inc. ........ 15,199,598 23,057,500
MARKET
SHARES COST VALUE
------- ---- -------
5,272,417 Telesp Celular Participacoes SA ...... $ 2,665 $ 55,575
9,200 Telesp Celular Participacoes
SA, ADR ............................. 284,292 412,850
7,000 Teligent Inc., Cl. A ................. 179,500 165,375
20,000 Total Access
Communications plc+ ................. 126,250 80,400
1,000 Tritel Inc., Cl. A+ .................. 29,244 29,688
1,000 Triton PCS Holdings Inc., Cl. A+ ..... 50,063 57,750
110,000 United States Cellular Corp+ ......... 6,490,795 6,930,000
12,000 Vimpel Communications, ADR+ .......... 226,544 265,500
51,000 Vodafone AirTouch plc, ADR ........... 775,958 2,113,313
80,000 VoiceStream Wireless Corp.+ .......... 2,260,953 9,303,750
5,000 Western Wireless Corp., Cl. A+ ....... 51,248 272,500
30,000 Winstar Communications Inc.+ ......... 770,247 1,016,250
----------- ------------
52,297,058 96,824,382
----------- ------------
TOTAL COMMON STOCKS 247,828,731 371,007,633
----------- ------------
PREFERRED STOCKS -- 0.4%
ENTERTAINMENT -- 0.0%
1,500 Metromedia International
Group Inc.,
7.25% Cv. Pfd. ...................... 61,513 42,000
----------- ------------
TELECOMMUNICATIONS: LOCAL -- 0.3%
20,000 Citizens Communications Co.,
5.00% Cv. Pfd. ...................... 1,135,742 1,347,500
221,568 Telecomunicacoes de Sao Paulo
SA (Telesp), Pfd. ................... 9,633 4,161
----------- ------------
TELECOMMUNICATIONS: NATIONAL -- 0.1%
10,000 Philippine Long Distance
Telephone Co.,
$3.50 Cv. Pfd., Ser. III ............ 497,200 367,500
500 Telecomunicacoes de Parana
SA, Pfd. ............................ 164 175
----------- ------------
497,364 367,675
----------- ------------
WIRELESS COMMUNICATIONS -- 0.0%
3,355,677 Telerj Celular SA, Pfd., Cl. B+ ...... 118,824 107,545
197,927 Telesp Celular Participacoes
SA, Pfd.+ ........................... 40,511 3,578
----------- ------------
159,335 111,123
----------- ------------
TOTAL PREFERRED STOCKS 1,863,587 1,872,459
----------- ------------
PRINCIPAL
AMOUNT
---------
CORPORATE BONDS -- 0.3%
TELECOMMUNICATIONS: NATIONAL -- 0.2%
$1,000,000 Telekom Malaysia Berhad,
4.00%, 10/03/04 (a) ................. 1,000,046 870,000
----------- ------------
See accompanying notes to financial statements.
11
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COST VALUE
--------- ---- ------
CORPORATE BONDS (CONTINUED)
WIRELESS COMMUNICATIONS -- 0.1%
$ 250,000 Technology Resources Industries,
Sub. Deb. Cv.
2.75%, 11/28/04 (a) ................. $ 250,000 $ 256,250
------------ ------------
TOTAL CORPORATE BONDS 1,250,046 1,126,250
------------ ------------
U.S. GOVERNMENT OBLIGATIONS -- 15.0%
67,929,000 U.S. Treasury Bills,
5.64% to 6.11%++,
due 07/13/00 to 09/21/00 ............ 67,623,260 67,625,079
------------ ------------
TOTAL
INVESTMENTS -- 98.0% $318,555,626 441,631,423
============
OTHER ASSETS AND
LIABILITIES (NET) -- 2.0% ........................ 8,921,277
------------
NET ASSETS -- 100.0%
(17,729,763 shares outstanding) .................. $450,552,698
============
------------------------
For Federal tax purposes:
Aggregate cost .................................... $318,555,626
============
Gross unrealized appreciation ..................... $135,810,068
Gross unrealized depreciation ..................... (12,734,271)
------------
Net unrealized appreciation ....................... $123,075,797
============
PRINCIPAL SETTLEMENT NET UNREALIZED
AMOUNT DATE APPRECIATION
--------- ---------- --------------
FORWARD FOREIGN EXCHANGE CONTRACTS
6,874,651(b) Deliver Hong Kong Dollars
in exchange for
USD 882,413 ................ 08/24/00 $ 9,663
=======
------------------------
(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 June 30, 2000,
the market value of Rule 144A securities amounted to $3,729,689 or 0.8% 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.
GDR - Global Depositary Receipt.
USD - United States Dollar.
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
-------------------------- ------ ------------
North America ................ 74.1% $327,400,605
Europe ....................... 10.8% 47,466,907
Asia/Pacific Rim ............. 6.8% 30,167,878
Japan ........................ 4.7% 20,803,938
Latin America ................ 3.6% 15,792,095
------ ------------
100.0% $441,631,423
====== ============
See accompanying notes to financial statements.
12
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
-------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments, at value (Cost $318,555,626) .......................................... $441,631,423
Cash and foreign currency, at value (Cost $2,030,777) .............................. 1,994,791
Receivable for investments sold .................................................... 13,011,390
Receivable for Fund shares sold .................................................... 161,588
Dividends and interest receivable .................................................. 447,557
------------
TOTAL ASSETS ....................................................................... 457,246,749
------------
LIABILITIES:
Payable for investments purchased .................................................. 6,164,881
Payable for Fund shares redeemed ................................................... 30,008
Payable for investment advisory fees ............................................... 379,769
Payable for distribution fees ...................................................... 94,988
Net unrealized depreciation on forward foreign exchange contracts .................. 9,663
Other accrued expenses ............................................................. 14,741
------------
TOTAL LIABILITIES .................................................................. 6,694,050
------------
NET ASSETS applicable to 17,729,763 shares outstanding ............................. $450,552,699
============
NET ASSETS CONSIST OF:
Capital stock, at par value ........................................................ $ 17,730
Additional paid-in capital ......................................................... 286,282,067
Accumulated net investment income .................................................. 10,301,834
Accumulated net realized gain on investments and foreign currency transactions ..... 30,920,985
Net unrealized appreciation on investments and foreign currency transactions ....... 123,030,083
------------
TOTAL NET ASSETS ................................................................... $450,552,699
============
SHARES OF CAPITAL STOCK:
CLASS AAA:
Net Asset Value, offering and redemption price per share
(17,725,908 shares outstanding) .................................................. $25.41
======
CLASS A:
Net Asset Value and redemption price per share
(670 shares outstanding) ......................................................... $25.42
======
Maximum sales charge ............................................................... 5.75%
======
Maximum offering price per share
(NAV [DIVIDE] 0.9425, based on maximum sales charge of
5.75% of the offering price at June 30, 2000) .................................... $26.97
======
CLASS B:
Net Asset Value and offering price per share
(2,012 shares outstanding) ....................................................... $25.40(a)
======
CLASS C:
Net Asset Value and offering price per share
(1,173 shares outstanding) ....................................................... $25.40(a)
======
</TABLE>
(a) Redemption price varies based on length of time held.
See accompanying notes to financial statements.
13
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS 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 $37,860) ......................................... $ 10,896,703
Interest ............................................................................ 2,716,653
-------------
TOTAL INVESTMENT INCOME ............................................................. 13,613,356
-------------
EXPENSES:
Investment advisory fees ............................................................ 2,373,141
Distribution fees ................................................................... 593,349
Shareholder services fees ........................................................... 221,804
Custodian fees ...................................................................... 41,866
Shareholder communications expenses ................................................. 41,033
Legal and audit fees ................................................................ 22,290
Registration fees ................................................................... 19,551
Directors' fees ..................................................................... 2,489
Miscellaneous expenses .............................................................. 6,141
-------------
TOTAL EXPENSES ...................................................................... 3,321,664
-------------
NET INVESTMENT INCOME ............................................................... 10,291,692
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on investments and foreign currency transactions .................. 30,772,443
Net change in unrealized appreciation on investments and foreign currency transactions (70,124,198)
-------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS ... (39,351,755)
-------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ................................ $(29,060,063)
=============
STATEMENT OF CHANGES IN NET ASSETS
---------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ..................................................... $ 10,291,692 $ 765,091
Net realized gain on investments and foreign currency transactions ........ 30,772,443 44,606,953
Net change in unrealized appreciation on investments and foreign
currency transactions ................................................... (70,124,198) 130,159,461
-------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........... (29,060,063) 175,531,505
-------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income ..................................................... -- (694,537)
Net realized gain on investments .......................................... -- (44,606,953)
In excess of net realized gain on investments ............................. -- (81,718)
-------------- ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ....................................... -- (45,383,208)
-------------- ------------
CAPITAL SHARE TRANSACTIONS:
Class AAA ................................................................. 19,027,557 160,271,806
Class A ................................................................... 19,023 --
Class B ................................................................... 52,749 --
Class C ................................................................... 30,600 --
-------------- ------------
Net increase in net assets from capital share transactions ................ 19,129,929 160,271,806
-------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS ..................................... (9,930,134) 290,420,103
NET ASSETS:
Beginning of period ....................................................... 460,482,833 170,062,730
-------------- ------------
End of period ............................................................. $450,552,699 $460,482,833
============== ============
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
1. ORGANIZATION. The Gabelli Global Telecommunications 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 November 1, 1993.
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 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
15
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
--------------------------------------------------------------------------------
commenced with respect to the seller of the security, realization of the
collateral by the Fund may be delayed or limited.
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.
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
16
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
--------------------------------------------------------------------------------
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.
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 $593,251 and $12 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
$66 and $20, respectively, or 1.00% of average daily net assets, the annual
limitation under the Plan. Such payments are accrued daily and paid monthly.
17
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
--------------------------------------------------------------------------------
5. PORTFOLIO SECURITIES. Purchases and sales of securities for the six months
ended June 30, 2000, other than short term securities, aggregated $200,311,722
and $121,633,699, respectively.
6. TRANSACTIONS WITH AFFILIATES. During the six months ended June 30, 2000, the
Fund paid brokerage commissions of $125,835 to Gabelli & Company, Inc. and its
affiliates. During the six months ended June 30, 2000, Gabelli & Company, Inc.
informed the Fund that it received $111 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 no borrowings against the line of credit during
the six months ended June 30, 2000.
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 ...................................... 6,250,655 $169,050,522 15,551,539 $345,718,455
Shares issued upon reinvestment of dividends -- -- 1,659,579 43,658,087
Shares redeemed .................................. (5,612,553) (150,022,965) (10,357,284) (229,104,736)
--------- ----------- ----------- -------------
Net increase ................................. 638,102 $ 19,027,557 6,853,834 $ 160,271,806
========== ============ =========== =============
CLASS A (A)
---------------------------
Shares sold ...................................... 670 $ 19,023
========== ============
CLASS B (A)
---------------------------
Shares sold ...................................... 2,157 $ 56,403
Shares redeemed .................................. (145) (3,654)
---------- ------------
Net increase ................................. 2,012 $ 52,749
========== ============
CLASS C (A)
---------------------------
Shares sold ...................................... 1,173 $ 30,600
========== ============
</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.
18
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS 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 Realized and Total Net of Net
Period Value, Net Unrealized from Net Realized Realized
Ended Beginning Investment Gain (Loss) on Investment Investment Gain on Gain on Total
December 31 of Period Income Investments Operations Income Investments Investments Distributions
------------ ---------- ---------- --------------- ---------- ---------- ----------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS AAA
2000 (a) $26.95 $0.57 $(2.11) $(1.54) -- -- -- --
1999 16.62 0.05 13.22 13.27 $(0.05) $(2.88) $(0.01) $(2.94)
1998 13.32 0.01 4.60 4.61 (0.01) (1.30) -- (1.31)
1997 11.28 0.00(c) 3.59 3.59 -- (1.55) -- (1.55)
1996 11.12 0.05 0.95 1.00 (0.05) (0.79) -- (0.84)
1995 9.73 0.06 1.51 1.57 (0.06) (0.12) -- (0.18)
CLASS A
2000 (a)(b) 28.51 0.58 (3.67) (3.09) -- -- -- --
CLASS B
2000 (a)(b) 28.51 0.49 (3.60) (3.11) -- -- -- --
CLASS C
2000 (a)(b 28.51 0.50 (3.61) (3.11) -- -- -- --
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
---------------------------------------------------
Net
Net Asset Net Assets Investment Operating
Period Value, End of Income to Expenses to Portfolio
Ended End of Total Period Average Net Average Net Turnover
December 31 Period Return+ (in 000's) Assets Assets (d) Rate
------------ --------- ------- ---------- ----------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS AAA
2000 (a) $25.41 (5.7)% $450,455 4.34%(e) 1.40%(e) 33%
1999 26.95 80.3 460,483 0.28 1.48 60
1998 16.62 34.8 170,483 0.08 1.60 20
1997 13.32 31.9 117,872 0.01 1.78 9
1996 11.28 9.0 108,544 0.34 1.72 7
1995 11.12 16.2 122,845 0.53 1.75 24
CLASS A
2000 (a)(b) 25.42 (10.8) 17 4.34 (e) 1.40 (e) 33
CLASS B
2000 (a)(b) 25.40 (10.9) 51 3.59 (e) 2.15 (e) 33
CLASS C
2000 (a)(b 25.40 (10.9) 30 3.59 (e) 2.15 (e) 33
</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 year ended December 31, 1997.
If interest expense had not been incurred, the ratio of operating expenses
to average net assets would have been 1.74%.
(e) Annualized.
See accompanying notes to financial statements.
19
<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.
--------------------------------------------------------------------------------
GAB401Q200SR
[PHOTO OF MARIO J. GABELLI OMITTED]
THE
GABELLI
GLOBAL
TELECOMMUNICATIONS
FUND
SEMI-ANNUAL REPORT
JUNE 30, 2000
