[GRAPHIC OMITTED]
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
ANNUAL REPORT
DECEMBER 31, 1999
* * * * *
MORNINGSTAR RATED[TRADE MARK} GABELLI GLOBAL TELECOMMUNICATIONS FUND 5 STARS
OVERALL AND FOR THE THREE-YEAR PERIOD ENDED 12/31/99 AMONG 3469
DOMESTIC EQUITY FUNDS, AND FOR THE FIVE-YEAR PERIOD ENDED 12/31/99
AMONG 2180 DOMESTIC EQUITY FUNDS.
TO OUR SHAREHOLDERS,
During 1999, telecommunications stocks were once again one of the best
performing industry groups worldwide. The three powerful forces that propelled
telecommunications stocks throughout this decade--technology, deregulation, and
consolidation--remain intact. We believe these forces will continue to make
selective telecommunications stock investing productive in the new millennium.
INVESTMENT PERFORMANCE
For the fourth quarter ended December 31, 1999, The Gabelli Global
Telecommunications Fund's (the "Fund") total return was 30.95%. The Salomon
Smith Barney Global Telecommunications Index and Morgan Stanley Capital
International World Free Index of global equity markets had total returns of
47.59% and 17.35%, respectively, over the same period. Each index is an
unmanaged indicator of stock market performance. The Fund was up an impressive
80.27% for 1999. The Salomon Smith Barney Global Telecommunications Index and
Morgan Stanley World Free Index rose 75.77% and 26.82%, respectively, over the
same twelve-month period.
For the five-year period ended December 31, 1999, the Fund's total return
averaged 32.32% annually versus average annual total returns of 33.08% and
19.19% for the Salomon Smith Barney Global Telecommunications Index and Morgan
Stanley World Free Index, respectively. Since inception on November 1, 1993
through December 31, 1999, the Fund had a cumulative total return of 302.44%,
which equates to an average annual total return of 25.32%.
- --------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Morningstar proprietary
ratings reflect historical risk adjusted performance as of December 31, 1999 and
are subject to change every month. Morningstar ratings are calculated from a
Fund's three, five and ten-year average annual returns in excess of 90-day
T-Bill returns with appropriate fee adjustments and a risk factor that reflects
fund performance below 90-day T-Bill returns. The top 10% of the funds in a
broad asset class receive five stars, the next 22.5% receive four stars, the
next 35% receive three stars, the next 22.5% receive two stars and the bottom
10% receive one star.
<PAGE>
INVESTMENT RESULTS (a)
- --------------------------------------------------------------------------------
Quarter
------------------------------------
1st 2nd 3rd 4th Year
------ ------ ------ ------ ------
1999: Net Asset Value .... $19.18 $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)
- --------------------------------------------------------------------------------
--------------------------------------------------
Average Annual Return - December 31, 1999 (a)
---------------------------------------------
1 Year ................................... 80.27%
5 Year ................................... 32.32%
Life of Fund (b) ......................... 25.32%
--------------------------------------------------
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. The net asset value of the
Fund is reduced on the ex-dividend (payment) date by the amount of the dividend
paid. Of course, returns represent past performance and do not guarantee future
results. Investment returns and the principal value of an investment will
fluctuate. When shares are redeemed they may be worth more or less than their
original cost. (b) From commencement of investment operations on November 1,
1993. Note: Investing in foreign securities involves risks not ordinarily
associated with investments in domestic issues, including currency fluctuation,
economic and political risks.
- --------------------------------------------------------------------------------
2
<PAGE>
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND, THE SALOMON SMITH BARNEY
GLOBAL TELECOMMUNICATIONS INDEX AND THE MORGAN STANLEY WORLD FREE INDEX
[GRAPHIC OMITTED]
[Line graph omitted--plot points as follows]
<TABLE>
<CAPTION>
Gabelli Global Salomon Smith Barney Morgan Stanley World
Telecommunications Fund Global Telecommunications Index Free Index
<S> <C> <C> <C>
11/1/93 $10,000 $10,000 $10,000
12/93 10,300 10,045 9,993
12/94 9,919 9,555 10,496
12/95 11,530 10,794 12,538
12/96 12,568 12,307 14,193
12/97 16,573 15,011 16,322
12/98 22,332 21,611 19,908
12/99 40,258 37,986 25,247
</TABLE>
*Past performance is not predictive of future performance.
GLOBAL ALLOCATION
The accompanying chart presents the Fund's holdings by geographic region
as of December 31, 1999. The geographic allocation will change based on current
global market conditions. Countries and/or regions represented in the chart and
below may or may not be included in the Fund's future portfolio.
INDUSTRY ALLOCATION
The accompanying chart depicts the Fund's holdings by industry sector as
of December 31, 1999. Industry sectors represented in the chart and below may or
may not be included in the Fund's future portfolio.
HOLDINGS BY GEOGRAPHIC REGION - 12/31/99
[Pie chart omitted--plot points as follows]
United States 38.3%
Europe 15.7%
Canada 6.9%
Japan 5.1%
Asia/Pacific Rim 3.6%
Latin America 3.0%
Cash 27.4%
HOLDINGS BY INDUSTRY SECTOR - 12/31/99
[Pie chart omitted--plot points as follows]
Wireless/Satellite 23.2%
Local 14.1%
Networks 14.5%
Cable/Media 9.1%
Equipment 4.7%
Long distance 4.4%
Utilities 1.3%
Broadband 0.7%
Business Services 0.6%
Cash 27.4%
3
<PAGE>
COMMENTARY
CLEAR CONNECTIONS
The broadly defined telecommunications group and our Fund have performed
extremely well in recent years, with portfolio holdings in different sectors of
the industry and in different international markets taking turns as primary
performance contributors. This year, portfolio holdings from virtually every
telecommunications industry sector and from markets around the globe contributed
to the Fund's exceptional performance. We had the highest stock picking batting
average (the number of portfolio holdings closing the year with positive
returns/total portfolio holdings at year-end) in the Fund's history. Amazingly,
approximately 25% of the Fund's portfolio holdings had gains in excess of 100%
this year. The Fund, quite literally, was clicking on all cylinders in 1999.
However, several sectors still deserve special mention. This was the year
in which wireless (cellular) communications stocks and wireless equipment
manufacturers finally captivated investors. Omnipoint, Rural Cellular, Aerial
Communications, Leap Wireless, Sprint PCS, and Nextel Communications all
finished in the top 15 on our performance list. The three largest manufacturers
of cellular telephone handsets, Nokia, Ericsson, and Motorola, more than
doubled. The leading wireless infrastructure company, Lucent Technologies, also
posted a solid gain. Costs for wireless communications services are coming down
rapidly and eventually will be quite competitive with traditional wireline
services. Wireless data transmission technology has progressed swiftly. We now
have Internet access through cellular telephones and at some point in the not so
distant future we should be able to link our personal computers to the Internet
via wireless systems. Clearly, investors now have a better appreciation of the
enormous global growth potential of wireless voice and data services.
We must also cite our portfolio friends from Japan, Southeast Asia, and
Latin America. These stocks were restrained by their respective country/region's
general economic and stock market malaise in 1998. Stocks from these regions
rebounded quite nicely in 1999, and with relatively few exceptions, were major
contributors to portfolio performance.
Paraphrasing Frank Sinatra's classic hit My Way, our portfolio regrets
this year were "too few to mention". AT&T and Time Warner provided modest
returns after several great performance years. Regional Bell Operating Companies
BellSouth and SBC Communications suffered small losses. Emerging market
telecommunications holdings Pakistan Telecommunications, Hellenic
Telecommunications, and Cable & Wireless Jamaica declined substantially.
A NEW MILLENNIUM INDUSTRY
Sector funds (mutual funds devoted exclusively to one industry) have
traditionally been very volatile, with a year or two of terrific performance
followed by periods of very disappointing returns. We believe the Global
Telecommunications Fund will be an exception to this trend. Why? Because modern
telecommunications systems are absolutely essential to competing effectively on
the global economic stage. The telecommunications industry has made tremendous
progress in recent years. However, the industry is still in its infancy in terms
of developing seamless global systems. As regulatory barriers continue to
crumble around the world, and companies continue to develop new and better
technologies for cost efficient voice and data transmission, the
telecommunications industry will continue to grow and attract investment
capital.
4
<PAGE>
There will be winners and losers in the telecommunications industry. It
will be our challenge to differentiate between those companies that will prosper
and those that will fall behind. We think we are up to the task. We are not
suggesting the Fund will be able to deliver the kind of returns it has achieved
in recent years. However, we do not believe there is any other industry with
such favorable long term growth and profit prospects.
LET'S TALK STOCKS
The following are stock specifics on selected holdings of our Fund.
Favorable earnings prospects do not necessarily translate into higher stock
prices, but they do express a positive trend which we believe will develop over
time. The share prices of foreign holdings are stated in U.S. dollar equivalent
terms as of December 31, 1999.
AERIAL COMMUNICATIONS INC. (AERL - $60.875 - NASDAQ) is an 82%-owned subsidiary
of Telephone & Data Systems that has Personal Communications Services ("PCS")
access covering 26.2 million people. On September 20, Aerial agreed to be
acquired by VoiceStream Wireless (VSTR - $142.3125 - Nasdaq) in a $3.3 billion
stock transaction. TDS's ownership of Aerial will be converted to VoiceStream
stock, resulting in TDS owning more than 36 million shares of VSTR. Upon
consummation of the Aerial and Omnipoint acquisitions, VoiceStream will emerge
as a major national PCS carrier with licenses covering over 250 million people.
CENTURYTEL INC. (CTL - $47.375 - 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. Century Telephone also has over 700,000 cellular
customers. Through acquisitions, CTL has created clusters of rural telephone and
cellular companies within commuting distance of metropolitan areas in states
including Wisconsin, Michigan, Ohio, Louisiana and Arkansas. With the $2.2
billion acquisition of Portland-based Pacific Telecom, CTL has added seven
states, ten cellular markets and 640,000 access lines to its business 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 (CLEC) operations.
COMMONWEALTH TELEPHONE ENTERPRISES INC. (CTCO - $52.875 - NASDAQ; CTCOB - $63.00
- - NASDAQ), located in Dallas, Pennsylvania, provides local, long distance and
other telecommunications services in rural areas of Pennsylvania. CTCO was
formed as the result of a restructuring of C-Tec Corp. in 1997. The company
currently has over 300,000 access lines and is expanding into competitive local
exchange carrier ("CLEC") businesses.
LIBERTY MEDIA GROUP (LMG'A - $56.75 - NYSE) is engaged in businesses which
provide programming services, including production, acquisition and distribution
through all available 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 Corp. (T - $43.50 - NYSE) and are now traded on the New York
Stock Exchange.
5
<PAGE>
MANNESMANN AG (MMN - $243.75 - FRANKFURT STOCK EXCHANGE) is a Germany-based
conglomerate with market leading operations in engineering, automotive, and
telecommunications. Mannesmann has focused on its telecommunications activities
in recent years. Today, it holds majority stakes in two of the top three
European mobile operators, Omnitel in Italy and Mannesmann D2 in Germany. It
also has a 15% stake in SFR, the French mobile operator, and recently won the
fourth mobile license in Austria. As of November, it has a majority stake in
Orange plc. Mannesmann is active in fixed network communications as the 1
competitor in Germany, Italy, France and Austria. The company is currently the
target of a hostile takeover attempt by Vodafone AirTouch, plc.
TELECOM ITALIA MOBILE SPA (TIM.MI - $11.17 - 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. The company is the largest cellular provider
in Europe with close to 15 million GSM subscribers. The competitive environment
in which Telecom Italia Mobile operates remains favorable, with only two
competitors, Omnitel and Wind.
TELEPHONE & DATA SYSTEMS INC. (TDS - $126.00 - AMEX) is a diversified
telecommunications company with established cellular and local telephone
operations and a developing personal communications services ("PCS") business.
TDS provides high quality telecommunications services to three million customers
in 35 states. TDS owns 81.1% of United States Cellular Corp. (USM - $100.9375 -
AMEX), the nation's seventh largest cellular telephone company. It also owns
82.4% of Aerial Communications Inc. (AERL - $60.875 - Nasdaq), TDS's PCS
subsidiary which owns the licenses to provide PCS service in six major trading
areas ("MTAs") encompassing approximately 27.6 million population equivalents.
On September 20, 1999, VoiceStream Wireless (VSTR - $142.3125 - Nasdaq)
announced the acquisition of Aerial in a $3.3 billion transaction. Pro-forma for
this acquisition, TDS will own over 36 million shares of VoiceStream.
MINIMUM INITIAL INVESTMENT - $1,000
The Fund's minimum initial investment for both regular and retirement
accounts is $1,000. There are no subsequent investment minimums. No initial
minimum is required for those establishing an Automatic Investment Plan.
Additionally, The Gabelli Global Telecommunications Fund and other Gabelli Funds
are available through the no-transaction fee programs at many major discount
brokerage firms.
MULTI-CLASS SHARES
The Gabelli Global Series Funds, Inc. will begin offering additional
classes of Fund shares in March 2000. For existing shareholders, Class AAA
shares remain no-load. At the same time, however, different types and
combinations of sales charge arrangements for Class A, Class B and Class C
shares are targeted to the needs of particular types of investors. Your Board of
Directors believes that the Fund should be able to provide the distribution
alternatives and investment flexibility provided by other similarly situated
funds that offer multiple classes of shares. We believe that the institution of
multiple classes of shares will enhance the potential for the Fund to attract
additional investors in a manner that could provide additional benefits for all
investors in the Fund. Again, to repeat, the offering of additional classes of
Fund shares will not diminish the ability of existing and future shareholders to
purchase and redeem Class AAA shares at net asset value.
6
<PAGE>
IN CONCLUSION
Last year's exceptional performance is already yesterday's news. While we
are sure you appreciate what the Fund has done for you in recent years, you are
no doubt also asking what will the Fund do for you tomorrow. We will strive to
identify the best investment opportunities in one of the best growth industries
in the world. We are confident that our efforts should continue to produce
attractive returns for 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 /s/ signature
MARIO J. GABELLI, CFA MARC J. GABELLI
Portfolio Manager and Associate Portfolio Manager
Chief Investment Officer
/s/ signature
IVAN ARTEAGA, CFA
Associate Portfolio Manager
January 31, 2000
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
DECEMBER 31, 1999
-----------------
Telephone & Data Systems Inc. Mannesmann AG
Cable & Wireless plc CenturyTel Inc.
Associated Group Inc. Liberty Media Group
Commonwealth Telephone Enterprises Aerial Communications Inc.
Telecom Italia Mobile Spa BCE Inc.
- --------------------------------------------------------------------------------
NOTE: The views expressed in this report reflect those of the portfolio manager
only through the end of the period stated in this report. The manager's views
are subject to change at any time based on market and other conditions.
7
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS -- 71.6%
BROADCASTING -- 0.4%
25,000 CanWest Global
Communications Corp. .......... $ 345,737 $ 279,688
10,000 Chris-Craft Industries Inc.+ ..... 697,263 721,250
50,000 Paxson Communications
Corp.+ ........................ 554,920 596,875
1,000 TiVo Inc.+ ....................... 16,000 33,750
------------ ------------
1,613,920 1,631,563
------------ ------------
BUSINESS SERVICES -- 0.6%
9,000 Carlisle Holdings Ltd.+ .......... 48,250 108,000
8,000 Convergys Corp.+ ................. 107,102 246,000
20,000 Donnelley (R.H.) Corp. ........... 272,932 377,500
2,000 EarthLink Network Inc.+ .......... 45,250 85,000
35,000 IDT Corp.+ ....................... 510,535 660,625
12,000 PNV.net Inc. ..................... 204,000 98,250
1,000 StarTek Inc.+ .................... 24,300 36,250
12,600 Vivendi .......................... 566,512 1,137,780
------------ ------------
1,778,881 2,749,405
------------ ------------
CABLE -- 5.8%
20,000 Adelphia Communications
Corp., Cl. A+ ................. 666,075 1,312,500
11,500 Austar United Communications
Ltd.+ ......................... 40,409 46,053
55,000 Cablevision Systems Corp.,
Cl. A+ ........................ 1,265,412 4,152,500
20,000 Charter Communications
Inc., Cl. A+ .................. 380,000 437,500
27,000 Comcast Corp., Cl. A ............. 214,182 1,292,625
27,000 Comcast Corp., Cl. A, Special .... 214,182 1,365,188
11,550 Cox Communications Inc.+ ......... 407,138 594,825
75,000 MediaOne Group Inc.+ ............. 2,650,360 5,760,937
41,250 NTL Inc.+ ........................ 857,121 5,145,937
25,090 Telewest Communications
plc, ADR+ ..................... 441,142 1,386,222
71,000 UnitedGlobalCom Inc., Cl. A+ ..... 694,260 5,014,375
10,000 Videotron Groupe ................. 125,234 169,726
------------ ------------
7,955,515 26,678,388
------------ ------------
COMMUNICATIONS EQUIPMENT -- 4.4%
200,000 Allen Telecom Inc.+ .............. 1,004,999 2,312,500
120,000 Champion Technology
Holdings, ADR ................. 81,258 42,452
15,000 Communications Systems Inc. ...... 148,852 195,000
8,000 Ericsson (L.M.) Telefon AB ....... 55,422 525,500
12,000 Gemstar International
Group Ltd.+ ................... 116,992 855,000
MARKET
SHARES COST VALUE
------ ---- ------
5,000 General Instrument Corp.+ ........ $ 76,830 $ 425,000
2,500 General Semiconductor Inc. ....... 33,120 35,469
17,000 GN Store Nord A/S ................ 378,416 839,773
3,500 L-3 Communications
Holdings Inc.+ ................ 77,000 145,687
10,000 Lucent Technologies Inc. ......... 114,818 748,125
35,000 Mannesmann AG .................... 3,204,729 8,531,409
2,000 Motorola Inc. .................... 91,237 294,500
7,000 Nokia Corp., Cl. A, ADR .......... 67,091 1,330,000
25,000 Nortel Networks Corp. ............ 225,312 2,525,000
12,000 Scientific-Atlanta Inc. .......... 197,408 667,500
500 Siemens AG, ADR .................. 23,625 63,960
300,000 Time Engineering Berhad+ ......... 316,448 114,474
15,000 TNT Post Group NV, ADR ........... 198,278 429,375
------------ ------------
6,411,835 20,080,724
------------ ------------
COMPUTER SOFTWARE AND SERVICES -- 0.0%
100 El Sitio Inc. .................... 3,212 3,675
2,500 Korea Thrunet Co. Ltd., Cl. A+ ... 45,000 169,687
25,000 Pacific Century CyberWorks Ltd. .. 59,778 58,211
------------ ------------
107,990 231,573
------------ ------------
DIVERSIFIED INDUSTRIAL -- 0.1%
20,000 Hutchison Whampoa Ltd. ........... 198,387 290,731
------------ ------------
ENERGY AND UTILITIES -- 1.3%
100,000 Conectiv Inc. .................... 1,883,243 1,681,250
100,000 El Paso Electric Co.+ ............ 895,000 981,250
3,000 E'Town Corp. ..................... 187,175 186,750
12,000 Florida Public Utilities Co. ..... 212,312 204,000
3,000 FPL Group Inc. ................... 126,587 128,438
5,000 Montana Power Co. ................ 142,250 180,312
50,000 SCANA Corp. ...................... 1,244,150 1,343,750
3,000 SJW Corp. ........................ 358,650 360,750
10,000 United Water Resources Inc. ...... 335,725 341,875
20,000 WICOR Inc. ....................... 589,750 583,750
------------ ------------
5,974,842 5,992,125
------------ ------------
ENTERTAINMENT -- 2.1%
23,462 Ascent Entertainment
Group Inc.+ ................... 177,530 297,674
2,200 Liberty Digital Inc.+ ............ 57,575 163,350
143,000 Liberty Media Group, Cl. A+ ...... 1,753,108 8,115,250
65,177 Metromedia International
Group Inc.+ ................... 573,245 309,591
2,000 Time Warner Inc. ................. 147,600 144,875
3,000 USA Networks Inc.+ ............... 144,375 165,750
10,000 Viacom Inc., Cl. A+ .............. 380,138 604,375
------------ ------------
3,233,571 9,800,865
------------ ------------
See accompanying notes to financial statements.
8
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (Continued)
Equipment and Supplies -- 0.2%
6,000 Amphenol Corp., Cl. A+ ............. $ 186,477 $ 399,375
20,000 Thyssen Krupp AG+ .................. 367,787 609,386
------------ ------------
554,264 1,008,761
------------ ------------
PUBLISHING -- 0.4%
15,000 Harcourt General Inc. .............. 571,771 603,750
5,000 Holdingmaatschappij NV ............. 111,100 110,798
10,000 Media General Inc., Cl. A .......... 500,485 520,000
8,000 News Corp. Ltd., ADR ............... 179,088 306,000
100,000 Seat-Pagine Gialle SpA ............. 28,390 328,364
------------ ------------
1,390,834 1,868,912
------------ ------------
SATELLITE -- 1.8%
3,000 American Mobile Satellite Corp.+ ... 38,340 63,188
500 Asia Satellite Telecommunications
Holdings Ltd., ADR .............. 9,753 17,500
1,000 British Sky Broadcasting
Group, ADR ...................... 36,400 92,750
41,879 COMSAT Corp. ....................... 1,408,696 832,345
34,000 General Motors Corp., Cl. H+ ....... 1,697,140 3,264,000
16,000 Globalstar Telecommunications
Ltd.+ ........................... 55,725 704,000
70,000 Loral Space &
Communications Ltd.+ ............ 1,126,418 1,701,875
10,000 Orbital Sciences Corp.+ ............ 216,731 185,625
8,000 Pegasus Communications Corp.+ ...... 201,990 782,000
35,500 TCI Satellite Entertainment
Inc., Cl. A+ .................... 239,524 568,000
------------ ------------
5,030,717 8,211,283
------------ ------------
TELECOMMUNICATIONS: BROADBAND -- 0.7%
1,000 Adelphia Business Solutions Inc.+ .. 18,634 48,000
15,000 BroadWing Inc.+ .................... 146,467 553,125
4,000 Colt Telecom Group plc+ ............ 31,875 816,000
3,500 Davel Communications
Group Inc.+ ..................... 27,898 16,625
10,000 Golden Telecom Inc. ................ 102,392 320,000
32,000 GST Telecommunications Inc.+ ....... 394,000 290,000
18,000 ICG Communications Inc+ ............ 238,475 337,500
5,000 Intermedia Communications Inc.+ .... 58,807 194,062
1,500 Jazztel plc, ADR+ .................. 26,171 97,688
7,000 McLeodUSA Inc., Cl. A+ ............. 61,390 412,125
5,000 Startec Global
Communications Corp.+ ........... 40,321 106,875
10,000 USN Communications Inc.+ ........... 19,252 10
------------ ------------
1,165,682 3,192,010
------------ ------------
MARKET
SHARES COST VALUE
------ ---- ------
TELECOMMUNICATIONS: LOCAL -- 14.0%
198,675 Aliant Inc.+ ....................... $ 2,705,514 $ 3,440,856
2,000 Allegiance Telecom Inc.+ ........... 28,500 184,500
47,000 Alltel Corp. ....................... 1,453,329 3,886,313
22,000 AT&T Canada Inc., Cl. B+ ........... 653,599 885,500
15,200 Atlantic Tele-Network Inc. ......... 129,263 139,650
20,008 Bell Atlantic Corp. ................ 877,729 1,231,742
50,000 BellSouth Corp. .................... 745,371 2,340,625
180,000 CenturyTel Inc. .................... 6,001,106 8,527,500
500 Cia Riograndense Telecom ........... 310 155
430,000 Citizens Utilities Co., Cl. B+ ..... 4,230,198 6,100,625
120,817 Commonwealth Telephone
Enterprises Inc.+ ............... 3,145,389 6,388,199
40,500 Commonwealth Telephone
Enterprises Inc., Cl. B+ ........ 494,914 2,561,625
13,500 CoreComm Ltd.+ ..................... 73,858 801,562
7,000 E.Spire Communications Inc. ........ 47,813 40,687
25,000 Eircom plc ......................... 100,958 107,020
12,000 Electric Lightwave Inc., Cl. A+ .... 122,938 225,000
150,000 First Pacific Co. Ltd. ............. 90,040 115,778
15,000 First Pacific Co. Ltd., ADR ........ 54,312 58,371
9,520 Global Telesystems Group Inc.+ ..... 83,339 329,630
50,000 GTE Corp. .......................... 2,305,516 3,528,125
20,000 QuebecTel Group Inc. ............... 153,660 197,437
72,000 RCN Corp.+ ......................... 646,485 3,492,000
290,000 Rogers Communications Inc.,
Cl. B+ .......................... 3,116,990 7,177,500
70,000 SBC Communications Inc. ............ 1,302,309 3,412,500
9,000 Shenandoah
Telecommunications Co. .......... 217,188 303,750
10,000 Sonera Group Oyj ................... 236,972 685,434
4,600 Tele Centro Sul Participacoes
SA, ADR ......................... 268,866 417,450
23,000 Tele Norte Leste Participacoes
SA, ADR ......................... 368,349 586,500
20,000 Telecom Argentina Stet-France
Telecom SA, ADR ................. 444,848 685,000
1,000,000 Telecom Asia ....................... 687,194 1,300,943
23,000 Telesp Participacoes SA, ADR ....... 851,125 562,063
6,500 Time Warner Telecom Inc.,
Cl. A+ .......................... 91,000 324,594
60,000 US West Inc. ....................... 3,488,313 4,320,000
------------ ------------
35,217,295 64,358,634
------------ ------------
TELECOMMUNICATIONS: LONG DISTANCE -- 4.2%
35,000 AT&T Corp. ......................... 1,226,781 1,776,250
25,000 Call-Net Enterprises Inc.+ ......... 236,026 102,182
270 DDI Corp. .......................... 1,237,907 3,699,716
23,000 Embratel Participacoes
SA, ADR+ ........................ 476,687 626,750
13,500 Esat Telecom Group plc, ADR+ ....... 978,189 1,235,250
See accompanying notes to financial statements.
9
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (Continued)
TELECOMMUNICATIONS: LONG DISTANCE (CONTINUED)
68,000 General Communication
Inc., Cl. A+ ..................... $ 300,202 $ 297,500
54,000 Global Crossing Ltd.+ ............... 959,477 2,700,000
14,000 KDD Corp. ........................... 813,222 1,940,296
12,000 MCI WorldCom Inc.+ .................. 229,975 636,750
8,000 MIDCOM Communications Inc.+ ......... 6,958 300
45,000 Philippine Long Distance
Telephone Co., ADR ............... 1,232,100 1,164,375
11,660 Qwest Communications
International Inc.+ .............. 45,262 501,380
5,000 RSL Communications Ltd., Cl. A+ ..... 108,125 85,625
40,000 Sprint Corp. ........................ 484,192 2,692,500
8,000 Teleglobe Inc. ...................... 60,486 182,335
5,000 Telegroup Inc.+ ..................... 20,540 5
50,000 VDC Communications Inc.+ ............ 183,675 115,625
34,000 Viatel Inc.+ ........................ 406,323 1,823,250
------------ ------------
9,006,127 19,580,089
------------ ------------
TELECOMMUNICATIONS: NATIONAL -- 14.2%
82,000 BCE Inc. ............................ 1,700,269 7,395,375
71,079 BCT.Telus
Communications Inc. ............. 1,343,713 1,730,812
92,000 BCT.Telus
Communications Inc., Cl. A ...... 1,963,491 2,221,129
1,000 British Telecommunications
plc, ADR ......................... 53,925 238,000
15,000 Cable & Wireless plc ................ 200,153 254,167
283,333 Cable & Wireless plc, ADR ........... 8,616,778 14,998,941
34,000 Cable & Wireless
Communications plc, ADR+ ......... 1,180,091 2,380,000
30,000 Cable & Wireless HKT Ltd., ADR ...... 569,621 873,750
9,600,000 Cable & Wireless Jamaica Ltd. ....... 406,750 278,861
64,000 Compania de Telecomunicaciones
de Chile SA, ADR ................. 988,703 1,168,000
16,000 Deutsche Telekom AG, ADR+ ........... 313,538 1,136,000
2,000 France Telecom SA, ADR .............. 68,975 267,000
4,707 Hellenic Telecommunications
Organization SA .................. 76,629 111,463
2,200 Hellenic Telecommunications
Organization SA, ADR+ ............ 32,010 26,263
8,000 Hungarian Telephone &
Cable Corp.+ ..................... 54,232 57,500
80 Japan Telecom Co. Ltd. .............. 1,328,442 3,210,336
5,000 Korea Telecom Corp. ................. 183,166 788,199
15,000 KPN NV, ADR ......................... 272,243 1,441,875
500 Magyar Tavkozlesi Rt, ADR ........... 9,650 18,000
237 Nippon Telegraph &
Telephone Corp. .................. 2,324,781 4,059,411
MARKET
SHARES COST VALUE
------ ---- ------
11,000 Nippon Telegraph &
Telephone Corp., ADR ............. $ 474,688 $ 947,375
800 Pakistan Telecommunications,
GDR (a) .......................... 98,166 33,504
60,000 Portugal Telecom SA, ADR ............ 233,785 652,500
21,600 PT Telekomunikasi
Indonesia, ADR ................... 229,279 237,600
7,000 Rostelecom, ADR ..................... 56,366 118,125
100,000 Singapore
Telecommunications Ltd. .......... 196,150 206,545
53,000 Swisscom AG, ADR .................... 1,890,025 2,146,500
20,000 Tele Danmark A/S, ADR ............... 333,831 755,000
21,000 Telecom Corporation of
New Zealand Ltd., ADR ............ 502,962 808,500
190,000 Telecom Italia SpA .................. 448,033 2,679,286
18,500 Telecom Italia SpA, ADR ............. 535,665 2,590,000
23,000 Telecomunicacoes Brasileiras
SA, ADR .......................... 21,668 359
6,578,531 Telecomunicacoes de Sao Paulo
SA (Telesp) ...................... 101,286 91,076
3,355,677 Telecomunicacoes de Rio de
Janeiro SA (Telerj) .............. 148,557 83,219
68,340 Telefonica SA, ADR .................. 909,826 5,386,046
20,000 Telefonica de Argentina SA,
Cl. B, ADR ....................... 525,649 617,500
500,000 Telefonica del Peru, Cl. B .......... 722,310 651,275
3,000 Telefonica del Peru, ADR ............ 46,663 40,125
31,000 Telefonos de Mexico SA,
Cl. L, ADR ....................... 1,185,988 3,487,500
304,000 Telekom Malaysia Berhad ............. 1,432,905 1,176,000
2,400 Telestra Corp. Ltd., ADR ............ 47,304 65,400
8,075 Thai Telephone &
Telecom, GDR+ (a) ................ 100,542 8,075
3,000 Veba AG ............................. 126,255 145,799
------------ ------------
32,055,063 65,582,391
------------ ------------
WIRELESS COMMUNICATIONS -- 21.4%
40,000 ABC Communications
Holdings Ltd. .................... 20,301 10,420
130,000 Aerial Communications Inc.+ ......... 743,431 7,913,750
33,400 Associated Group Inc., Cl. A+ ....... 483,480 3,047,750
42,000 Associated Group Inc., Cl. B+ ....... 667,565 3,864,000
500 Bouygues Group ...................... 58,707 317,787
500 Celular CRT Participacoes ........... 206 87
3,500 Centennial Cellular Corp., Cl. A+ ... 117,210 290,063
2,000 Clearnet Communications Inc.,
Cl. A+ ........................... 25,000 68,750
80,090 CommNet Cellular Inc.+ .............. 1,711,406 2,572,891
35,000 CP Pokphand, ADR+ ................... 259,575 24,763
See accompanying notes to financial statements.
10
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (Continued)
Wireless Communications (Continued)
5,300 Easycall Group+ .................. $ 8,992 $ 1,287
23,000 EchoStar Communications
Corp., Cl. A+ ................. 155,746 2,242,500
250,000 Europolitan Holdings AB .......... 229,475 4,407,616
42,988 Grupo Iusacell SA, Nuevo ADR ..... 478,228 642,133
26,000 Himachal Futuristic (a) .......... 141,200 1,239,875
24,000 Jasmine International+ ........... 117,135 14,496
47,000 Leap Wireless International Inc.+ 349,750 3,689,500
28,000 Libertel NV+ ..................... 549,584 733,278
1,500 Metrocall Inc.+ .................. 11,138 2,531
17,000 NEXTEL Communications
Inc., Cl. A+ .................. 375,124 1,753,125
250 NTT Mobile Communications
Network Inc. .................. 2,814,619 9,616,326
38,000 Omnipoint Corp.+ ................. 438,983 4,583,750
55,000 Price Communications Corp.+ ...... 74,679 1,529,688
10,000 PT Indonesia Satellite, ADR ...... 146,877 216,250
147,000 Rogers Cantel Mobile
Communications Inc., Cl. B+ ... 1,798,748 5,347,125
21,000 Rural Cellular Corp., Cl. A+ ..... 247,793 1,900,500
70,000 Securicor Group plc 179,783
151,183 SK Telecom Co. Ltd., ADR ......... 1,752,702 5,801,663
10,000 Sprint Corp. (PCS Group)+ ........ 84,112 1,025,000
80,000 Technology Resources Industries .. 309,067 49,474
2,300 Tele Celular Sul
Participacoes SA, ADR ......... 37,449 73,025
7,666 Tele Centro Oeste Celular
Participacoes SA, ADR ......... 22,224 49,829
460 Tele Leste Celular
Participacoes SA, ADR ......... 12,153 19,550
1,150 Tele Nordeste Celular
Participacoes SA, ADR ......... 16,568 58,075
460 Tele Norte Celular
Participacoes SA, ADR ......... 7,079 19,751
4,600 Tele Sudeste Celular
Participacoes SA, ADR ......... 140,230 178,538
5,000 Telecel-Comunicacaoes
Pessoais SA, ADR .............. 67,584 87,178
785,000 Telecom Italia Mobile SpA ........ 2,438,182 8,768,768
2,000 TeleCorp PCS Inc. ................ 40,000 76,000
1,150 Telemig Celular Participacoes
SA, ADR ....................... 30,497 53,116
145,000 Telephone & Data Systems Inc. .... 6,140,908 18,270,000
938,570 Telesp Celular SA ................ 2,665 50,397
9,200 Telesp Celular Participacoes
SA, ADR ....................... 284,292 389,850
4,000 Teligent Inc., Cl. A ............. 90,000 247,000
20,000 Total Access
Communications plc+ .......... 126,250 78,800
MARKET
SHARES COST VALUE
------ ---- ------
200 Tritel Inc., Cl. A+ .............. $ 3,600 $ 6,338
11,000 United States Cellular Corp+ ..... 337,879 1,110,313
10,000 Vimpel Communications, ADR+ ...... 166,000 446,250
70,000 Vodafone AirTouch plc, ADR ....... 925,777 3,465,000
2,000 VoiceStream Wireless Corp.+ ...... 15,706 284,625
5,000 Western Wireless Corp., Cl. A+ ... 51,248 333,750
20,000 Winstar Communications Inc.+ ..... 770,247 1,505,000
------------ ------------
25,897,371 98,657,314
------------ ------------
TOTAL COMMON STOCKS .............. 137,592,294 329,914,768
------------ ------------
PREFERRED STOCKS -- 0.8%
CABLE -- 0.4%
18,000 Tele-Communications Inc., Cl. B,
6.00% Cv. Pfd., Ser. E ........ 1,234,246 1,854,000
------------ ------------
ENTERTAINMENT -- 0.0%
1,500 Metromedia International
Group Inc.,
7.25% Cv. Pfd. ................ 61,513 45,000
------------ ------------
TELECOMMUNICATIONS: LOCAL -- 0.1%
5,000 Citizens Utilities Co.,
5.00% Cv. Pfd. ................ 250,250 281,875
------------ ------------
TELECOMMUNICATIONS: LONG DISTANCE -- 0.2%
12,000 Sprint Corp.,
8.25% Cv. Pfd. ................ 424,102 891,000
------------ ------------
TELECOMMUNICATIONS: NATIONAL -- 0.1%
10,000 Philippine Long Distance
Telephone Co.,
$3.50 Cv. Pfd. ................ 497,200 476,250
500 Telecomunicacoes de Parana
SA, Pfd. ...................... 164 163
221,568 Telecommunicacoes de Sao Paulo
SA (Telesp), Pfd. ............. 9,633 5,372
------------ ------------
506,997 481,785
------------ ------------
WIRELESS COMMUNICATIONS -- 0.0%
3,355,677 Telerj Celular SA, Pfd., Cl. B+ .. 118,824 92,692
40,900 Telesp Celular SA, Pfd., Cl. B ... 40,511 3,238
------------ ------------
159,335 95,930
------------ ------------
TOTAL PREFERRED STOCKS ........... 2,636,443 3,649,590
------------ ------------
PRINCIPAL
AMOUNT
- ---------
CORPORATE BONDS -- 0.2%
TELECOMMUNICATIONS: NATIONAL -- 0.2%
$ 1,000,000 Telekom Malaysia Berhad,
Sub. Deb. Cv.
4.00%, 10/03/04 (a) ........... 1,000,051 867,500
------------ ------------
See accompanying notes to financial statements.
11
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COST VALUE
- --------- ---- ------
CORPORATE BONDS (Continued)
WIRELESS COMMUNICATIONS -- 0.0%
$ 250,000 Technology Resources Industries,
Sub. Deb. Cv.
2.75%, 11/28/04 (a) ............ $ 250,000 $ 188,750
------------ ------------
TOTAL CORPORATE BONDS ............. 1,250,051 1,056,250
------------ ------------
U.S. TREASURY OBLIGATIONS -- 27.5%
126,805,000 U.S. Treasury Bills,
5.04% to 5.49%++,
due 01/13/00 to 03/30/00 ... 126,413,142 126,416,130
------------ ------------
TOTAL
INVESTMENTS -- 100.1% ...... $267,891,930 461,036,738
============
Other Assets and
Liabilities (Net) -- (0.1)% .............. (553,905)
-----------
NET ASSETS -- 100.0%
(17,087,806 shares outstanding) .......... $460,482,833
============
NET ASSET VALUE,
Offering and Redemption
Price Per Share .......................... $26.95
======
- ----------
For Federal income tax purposes:
Aggregate cost .............................. $267,946,078
============
Gross unrealized appreciation ............... $197,040,383
Gross unrealized depreciation ............... (3,949,723)
------------
Net unrealized appreciation ................. $193,090,660
============
PRINCIPAL SETTLEMENT NET UNREALIZED
AMOUNT DATE DEPRECIATION
- --------- ---------- --------------
FORWARD FOREIGN EXCHANGE CONTRACTS
6,874,651(b) Deliver Hong Kong Dollars
in exchange for
USD 872,750 ................... 08/24/00 $(9,227)
- ----------
(a) Security exempt from registration under Rule 144A of the Security Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At December
31, 1999, the market value of Rule 144A securities amounted to $2,337,704
or 0.5% of 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 - U.S. Dollars.
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
- -------------------------- ------ ------------
North America ........................... 72.6% $334,513,446
Europe .................................. 15.7% 72,454,834
Japan ................................... 5.1% 23,473,459
Asia/Pacific Rim ........................ 3.6% 16,851,676
Latin America ........................... 3.0% 13,743,323
----- ------------
100.0% $461,036,738
===== ============
See accompanying notes to financial statements.
12
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ASSETS:
Investments, at value (Cost $267,891,930) ................ $461,036,738
Cash and foreign currency, at value
(Cost $797,849) ....................................... 815,364
Dividends and interest receivable ........................ 209,580
Receivable for Fund shares sold .......................... 2,555,286
------------
TOTAL ASSETS ............................................. 464,616,968
------------
LIABILITIES:
Payable for investments purchased ........................ 2,279,865
Payable for Fund shares redeemed ......................... 1,236,365
Payable for investment advisory fees ..................... 373,115
Payable for distribution fees ............................ 93,279
Net unrealized depreciation on
forward foreign exchange contracts .................... 9,227
Other accrued expenses ................................... 142,284
------------
TOTAL LIABILITIES ........................................ 4,134,135
------------
NET ASSETS applicable to 17,087,806
shares outstanding .................................... $460,482,833
============
NET ASSETS CONSIST OF:
Capital stock, at par value .............................. $ 17,088
Additional paid-in capital ............................... 267,152,780
Accumulated net investment income ........................ 10,142
Accumulated net realized gain on investments
and foreign currency transactions ..................... 148,542
Net unrealized appreciation on investments
and foreign currency transactions ..................... 193,154,281
------------
TOTAL NET ASSETS ......................................... $460,482,833
============
NET ASSET VALUE, offering and redemption
price per share ($460,482,833 / 17,087,806
shares outstanding; 200,000,000
shares authorized of $0.001 par value) ................ $26.95
======
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends (net of foreign taxes of $66,147) .............. $ 1,869,057
Interest ................................................. 2,994,889
------------
TOTAL INVESTMENT INCOMe .................................. 4,863,946
------------
EXPENSES:
Investment advisory fees ................................. 2,777,193
Distribution fees ........................................ 694,299
Shareholder services fees ................................ 328,422
Shareholder communications expenses ...................... 89,848
Registration fees ........................................ 84,595
Custodian fees ........................................... 70,540
Legal and audit fees ..................................... 46,250
Directors' fees .......................................... 6,114
Miscellaneous expenses ................................... 1,594
------------
TOTAL EXPENSES ........................................... 4,098,855
------------
NET INVESTMENT INCOME .................................... 765,091
------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on investments
and foreign currency transactions ..................... 44,606,953
Net change in unrealized appreciation
on investments and foreign currency
transactions .......................................... 130,159,461
------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS .......................................... 174,766,414
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ....................................... $175,531,505
============
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income ............................................ $ 765,091 $ 118,684
Net realized gain on investments and foreign currency transactions 44,606,953 12,504,671
Net change in unrealized appreciation on investments
and foreign currency transactions .............................. 130,159,461 29,961,404
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............. 175,531,505 42,584,759
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income ............................................ (694,537) (106,321)
Net realized gain on investments ................................. (44,606,953) (12,347,446)
In excess of net realized gain on investments .................... (81,718) --
------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .............................. (45,383,208) (12,453,767)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Net increase in net assets from capital share transactions ....... 160,271,806 22,060,115
------------- -------------
NET INCREASE IN NET ASSETS ....................................... 290,420,103 52,191,107
NET ASSETS:
Beginning of period .............................................. 170,062,730 117,871,623
------------- -------------
End of period .................................................... $ 460,482,833 $ 170,062,730
============= =============
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 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.
14
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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.
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 December 31, 1999, 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.
15
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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.
For the year ended December 31, 1999, reclassifications were made to decrease
accumulated undistributed net investment income for $60,412 and increase
accumulated undistributed net realized gain on investments and foreign currency
transactions for $60,672 with an offsetting adjustment to additional paid-in
capital.
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.
16
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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 year ended
December 31, 1999, the Fund incurred distribution costs payable to Gabelli &
Company, Inc., an affiliate of the Adviser, of $694,299, or 0.25% 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 year ended
December 31, 1999, other than short term securities, aggregated $132,680,749 and
$128,626,203, respectively.
6. TRANSACTIONS WITH AFFILIATES. During the year ended December 31, 1999, the
Fund paid brokerage commissions of $118,939 to Gabelli & Company, Inc. and its
affiliates.
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 year ended December 31, 1999.
8. CAPITAL STOCK TRANSACTIONS. Transactions in shares of capital stock were as
follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares sold ................................ 15,551,539 $ 345,718,455 9,903,141 $ 155,442,024
Shares issued upon reinvestment of dividends 1,659,579 43,658,087 733,357 12,011,861
Shares redeemed ............................ (10,357,284) (229,104,736) (9,252,964) (145,393,770)
------------- ------------- ------------- -------------
Net increase ........................ 6,853,834 $ 160,271,806 1,383,534 $ 22,060,115
============= ============= ============= =============
</TABLE>
9. NEW SHARE CLASSES. On December 7, 1998, 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) to be effective upon the
commencement of the offering of the New Share Classes. On July 22, 1999,
shareholder approval permitting the Fund to offer additional classes of shares
was attained. The New Share Classes are currently not being offered to the
public.
17
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
OPERATING PERFORMANCE:
Net asset value, beginning of period .......... $ 16.62 $ 13.32 $ 11.28 $ 11.12 $ 9.73
-------- -------- -------- -------- --------
Net investment income ......................... 0.05 0.01 0.00(a) 0.05 0.06
Net realized and unrealized gain
on investments ............................ 13.22 4.60 3.59 0.95 1.51
-------- -------- -------- -------- --------
Total from investment operations .............. 13.27 4.61 3.59 1.00 1.57
-------- -------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income ......................... (0.05) (0.01) -- (0.05) (0.06)
Net realized gain on investments .............. (2.88) (1.30) (1.55) (0.79) (0.12)
In excess of net realized gain
on investments ............................ (0.01) -- -- -- --
-------- -------- -------- -------- --------
Total distributions ........................... (2.94) (1.31) (1.55) (0.84) (0.18)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD ................ $ 26.95 $ 16.62 $ 13.32 $ 11.28 $ 11.12
======== ======== ======== ======== ========
Total return+ ................................. 80.3% 34.8% 31.9% 9.0% 16.2%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .......... $460,483 $170,063 $117,872 $108,544 $122,845
Ratio of net investment income
to average net assets ..................... 0.28% 0.08% 0.01% 0.34% 0.53%
Ratio of operating expenses
to average net assets (b) ................. 1.48% 1.60% 1.78% 1.72% 1.75%
Portfiolio turnover rate ...................... 60% 20% 9% 7% 24%
</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.
(a) Amount represents less than $0.005 per share.
(b) 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%.
See accompanying notes to financial statements.
18
<PAGE>
THE GABELLI GLOBAL TELECOMMUNICATIONS FUND
REPORT OF GRANT THORNTON LLP, INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
Shareholders and Board of Directors of
The Gabelli Global Telecommunications Fund
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of The Gabelli Global Telecommunications Fund (one
of the series constituting Gabelli Global Series Funds, Inc.) as of December 31,
1999, the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended and financial highlights for each of the periods presented. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of December 31, 1999 by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Gabelli Global Telecommunications Fund of Gabelli Global Series Funds, Inc. at
December 31, 1999, and the results of its operations, the changes in its net
assets and the financial highlights for the respective stated periods, in
conformity with accounting principles generally accepted in the United States.
New York, New York
February 11, 2000 /s/ Grant Thornton LLP
- --------------------------------------------------------------------------------
1999 TAX NOTICE TO SHAREHOLDERS (Unaudited)
For the fiscal year ended December 31, 1999, the Fund paid to shareholders, on
December 27, 1999, an ordinary income dividend (comprised of net investment
income and short term capital gains) totaling $0.885 per share and long term
capital gains totaling $2.055 per share. For the fiscal year ended December 31,
1999, 9.23% of the ordinary income dividend qualifies for the dividend received
deduction available to corporations.
U.S. GOVERNMENT INCOME:
The percentage of the ordinary income dividend paid by the Fund during fiscal
year 1999 which was derived from U.S. Treasury securities was 22.08%. Such
income is exempt from state and local tax in all states. However, many states,
including New York and California, allow a tax exemption for a portion of the
income earned only if a mutual fund has invested at least 50% of its assets at
the end of each quarter of the Fund's fiscal year in U.S. Government securities.
The Gabelli Global Telecommunications Fund did not meet this strict requirement
in 1999. Due to the diversity in state and local tax law, it is recommended that
you consult your personal tax advisor as to the applicability of the information
provided to your specific situation.
- --------------------------------------------------------------------------------
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 James E. McKee
VICE PRESIDENT AND TREASURER SECRETARY
DISTRIBUTOR
Gabelli & Company, Inc.
CUSTODIAN, TRANSFER AGENT AND DIVIDEND AGENT
State Street Bank and Trust Company
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
- --------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of The
Gabelli Global Telecommunications Fund. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective prospectus.
- --------------------------------------------------------------------------------
GAB401Q499SR
[PHOTO OF MARIO GABELLI OMITTED]
THE
GABELLI
GLOBAL
TELECOMMUNICATIONS
FUND
ANNUAL REPORT
DECEMBER 31, 1999
