[Flag graphics omitted]
THE GABELLI GLOBAL
CONVERTIBLE SECURITIES FUND
FIRST QUARTER REPORT - MARCH 31, 2000
[PHOTO OMITTED]
HART WOODSON
TO OUR SHAREHOLDERS,
During the first quarter of 2000, the Gabelli Global Convertible
Securities Fund (the "Fund") outperformed its benchmark as well as the broader
global equity and bond markets. The Fund benefited from its global media
exposure as a result of the AOL/Time Warner merger, which lifted valuations on
other related holdings including Mediaset, Toho, Vivendi, Scandinavian
Broadcasting and Seagram's. The quarter was characterized by increased
volatility as the U.S. Federal Reserve Board raised short-term interest rates to
counter rapid economic growth and forestall inflation. We expect markets to
remain volatile as the U.S. transitions to a "soft landing" and growth
accelerates in Europe and Japan. Nevertheless, the main pillars of the bull
market remain intact. In the year ahead, we will continue to focus on companies
with attractive valuations and with catalysts to unlock that value.
INVESTMENT PERFORMANCE
For the first quarter ended March 31, 2000, the Fund's total return was
10.56%. The Warburg Dillon Read Global Convertible Index, Merrill Lynch Global
Bond Index and Morgan Stanley Capital International World Free Index of global
equity markets had total returns of 5.39%, 0.61% and 1.17%, respectively, over
the same period. Each index is an unmanaged indicator of investment performance.
The Fund was up 55.25% over the trailing twelve-month period. The Warburg Dillon
Read Global Convertible Index, Merrill Lynch Global Bond Index and Morgan
Stanley World Free Index had total returns of 36.42%, (0.30)% and 23.42%,
respectively, over the same twelve-month period.
For the five-year period ended March 31, 2000, the Fund's total return
averaged 16.88% annually versus average annual total returns of 15.68%, 5.05%
and 18.64% for the Warburg Dillon Read Global Convertible Index, Merrill Lynch
Global Bond Index and Morgan Stanley World Free Index, respectively. Since
inception on February 3, 1994 through March 31, 2000, the Fund had a cumulative
total return of 123.64%, which equates to an average annual total return of
13.95%.
<PAGE>
INVESTMENT RESULTS (CLASS AAA SHARES) (a)
- --------------------------------------------------------------------------------
Quarter
---------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
2000: Net Asset Value $15.04 -- -- -- --
Total Return 10.6% -- -- -- --
- --------------------------------------------------------------------------------
1999: Net Asset Value $10.89 $11.91 $12.71 $13.88 $13.88
Total Return 7.6% 9.4% 6.7% 20.3% 51.1%
- --------------------------------------------------------------------------------
1998: Net Asset Value $10.43 $10.36 $9.09 $10.12 $10.12
Total Return 11.1% (0.7)% (12.3)% 12.2% 8.6%
- --------------------------------------------------------------------------------
1997: Net Asset Value $10.27 $10.98 $11.15 $9.39 $9.39
Total Return 0.9% 6.9% 1.5% (6.1)% 2.8%
- --------------------------------------------------------------------------------
1996: Net Asset Value $11.34 $11.55 $11.41 $10.18 $10.18
Total Return 5.1% 1.9% (1.2)% (0.3)% 5.5%
- --------------------------------------------------------------------------------
1995: Net Asset Value $10.09 $10.64 $11.05 $10.79 $10.79
Total Return 1.6% 5.5% 3.9% 1.2% 12.6%
- --------------------------------------------------------------------------------
1994: Net Asset Value $10.38 $10.37 $10.64 $9.93 $9.93
Total Return 3.8%(b) (0.1)% 2.6% (5.2)% 0.9%(b)
- --------------------------------------------------------------------------------
- -----------------------------------------------------------
Average Annual Returns - March 31, 2000 (a)
-------------------------------------------
(Class AAA)
1 Year ..................................... 55.25%
5 Year ..................................... 16.88%
Life of Fund (b) ........................... 13.95%
- -----------------------------------------------------------
Dividend History
- -------------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
- ----------------- -------------- ------------------
December 27, 1999 $1.390 $13.67
December 28, 1998 $0.080 $ 9.96
December 30, 1997 $1.070 $ 9.33
December 31, 1996 $1.200 $10.18
December 29, 1995 $0.393 $10.79
December 30, 1994 $0.160 $ 9.93
(a) Total returns and average annual returns reflect changes in share price and
reinvestment of dividends and are net of expenses. The net asset value of the
Fund is reduced on the ex-dividend (payment) date by the amount of the dividend
paid. Of course, returns represent past performance and do not guarantee future
results. Investment returns and the principal value of an investment will
fluctuate. When shares are redeemed they may be worth more or less than their
original cost. (b) From commencement of investment operations on February 3,
1994. Note: Investing in foreign securities involves risks not ordinarily
associated with investments in domestic issues, including currency fluctuation,
economic and political risks.
- --------------------------------------------------------------------------------
MONTHLY DISTRIBUTIONS
The Fund has established a monthly distribution of $0.10 per month
beginning January 27, 2000. The reinvestment prices and dates are noted below.
The monthly distributions will be made as part of the Fund's policy of annually
distributing at least 10% of its net asset value.
Reinvestment Date Reinvestment Price
- ----------------- ------------------
January 27, 2000 $14.05
February 25, 2000 $15.28
March 29, 2000 $15.26
2
<PAGE>
MULTI-CLASS SHARES
The Gabelli Global Series Funds, Inc. began offering additional classes of
Fund shares in March 2000. The existing shares remain no-load and have been
redesignated as "Class AAA" Shares. Class A, Class B and Class C shares are
targeted to the needs of investors who seek advice through financial
consultants. For the month ended March 31, 2000, The Gabelli Global Convertible
Securities Fund Class A Shares had a total return of (1.70)% (Class B and Class
C Shares have not been issued as of March 31, 2000). The Class A Shares ended
the quarter with a net asset value of $15.04.
OUR INVESTMENT OBJECTIVE
The Fund's objective is to obtain a high rate of total return by investing
in global convertible securities. We expect to achieve a competitive rate of
return by investing primarily in coupon paying convertible securities which meet
our selective investment criteria.
OUR APPROACH
We weigh both country-specific and company-specific factors to make our
investment decisions. Country-specific factors include political stability,
economic growth, inflation and trends in interest rates. With regard to
companies, we seek firms which are undervalued in relation to their long term
potential value. We then look for some dynamic in the country or company which
can unlock this value. In the case of global telecommunications, the dynamic is
the privatization of state-owned monopolies. In developing countries, it is the
need to provide the infrastructure for growth. In Japan, it is the change from
an industrial to a consumer-oriented economy. In commodities, it is the increase
in industrial demand.
GLOBAL ALLOCATION
The accompanying chart represents the Fund's holdings by geographic region
as of March 31, 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:
HOLDINGS BY GEOGRAPHIC REGION - 3/31/00
United States 36.5%
Europe 29.1%
Japan 29.2%
Asia/Pacific Rim 1.9%
Latin America 1.9%
Canada 1.4%
WHAT ARE GLOBAL CONVERTIBLE SECURITIES?
Global convertible securities are bonds, preferred shares and warrants of
domestic or foreign issuers which may be converted into a fixed number of shares
of the underlying company. Convertibles are hybrid securities which combine the
capital appreciation potential of equities with the higher yield of
3
<PAGE>
fixed income instruments. They can be thought of as a straight bond together
with an embedded call option (or warrant) on the underlying equity.
WHAT ARE THE BENEFITS OF GLOBAL CONVERTIBLE SECURITIES?
Reduced volatility is foremost. Investing in foreign equity markets can be
rewarding but volatile. Our goal is to earn a high, risk-adjusted rate of
return. Due to its fixed income characteristics, a convertible security will
provide more stability than its underlying common stock. In the current market
environment, the Gabelli Global Convertible Securities Fund provides an
attractive alternative by combining the capital appreciation potential of global
equity investing with the higher current income usually associated with bonds.
COMMENTARY
Last quarter, we outlined our view that financial markets would become
increasingly volatile. This was because synchronized global growth would be
countered by higher interest rates. However, we remained optimistic that low
inflation, strong earnings growth, measurable liquidity and buoyant merger
activity would sustain financial markets. This does not mean that the markets
are without risk. Persistently high oil prices, a weak dollar, or a failed
recovery in Japan would jeopardize this scenario. Nevertheless, we continue to
believe the basic pillars of the bull market remain intact.
UNITED STATES
Alan Greenspan, the Fed Chairman, was the focal point of the first
quarter. The Fed started raising interest rates in June 1999, when the Fed Funds
rate stood at 4.75%. Since then, the Fed has gradually raised rates five times
to 6.0%. After its latest hike on March 21, committee members remain "concerned
that increases in demand will continue to exceed the growth in potential supply,
which could foster inflationary imbalances that would undermine the economy's
record economic expansion." In other words, the economy is growing too fast and
the Fed wants to slow it down. The imbalances refer to a growing current account
deficit and a shrinking labor pool.
Are these concerns justified? Yes. The Gross Domestic Product ("GDP") grew
at an annualized rate of 7.9% in the fourth quarter of 1999. The monthly trade
deficit rose to a record $28 billion in January. By mid-March, average
unemployment claims had fallen to their lowest level since December 1973. Does
this mean that inflation is a problem? No. Although higher oil prices were
evident in headline producer and consumer prices, core rates, which exclude
volatile energy and food prices, remained under control. A stagnant gold price,
at around $280 per ounce, indicates that monetary policy is not fostering
inflationary expectations. Long bond yields actually fell ten percent in the
quarter to 5.82%, assisted by the government's shrinking budget deficit.
Meanwhile, economic profits rose 6.9% in the quarter, the strongest gain since
the second quarter of 1994. Non-farm business productivity rose 3.6% in 1999 and
is increasing. February flows into equity mutual funds were a record $53.5
billion.
4
<PAGE>
What lies ahead? We are not clairvoyant, but expectations are that the Fed
will continue its gradual tightening until the economy slows and imbalances
begin to correct. Hopefully, this will permit a "soft landing" as slower, but
nonetheless respectable, U.S. growth makes way for a continued recovery in
Europe and Japan.
EUROLAND
In 1999, the economies in the eleven-nation euro-zone grew by 2.3%. Growth
began to accelerate in the fourth quarter and is expected to rise to 3.4% in
2000. Higher oil prices and a weaker euro have lead to a three-year high in
inflation of 2.0%. To counter this potential threat, Wim Duisenberg, the
European Central Bank President, has raised short-term interest rates three
times since November to 3.5%. Rates are likely to trend higher as the recovery
takes hold. Signs of this recovery were confirmed by February's unemployment
rate of 9.5%, the lowest level since September 1992.
We continue to keep a close watch on Germany, which accounts for one-third
of the euro-zone's economy. Business confidence, as measured by the Information
and Forschung Institut ("IFO") survey rose to 100.9 in February, the highest
level since November 1994. Meanwhile, wage rates remain subdued. IG Matall,
Germany's largest union, agreed to a 3.0% pay increase in 2000 and 2.1% in 2001,
which was substantially less than earlier demands for a 5.5% rise.
Finally, in the years ahead, we expect structural reforms in Euroland to
benefit equity investors. First is pension system reform. Compulsory funded
pension schemes could increase the demand for equities by some 85 billion euros.
Second is tax reform. In Germany, Chancellor Gerhard Schroeder has promised to
cut the top personal income tax rate to 45% from 53% over the next five years.
Corporate taxes are expected to fall from 40% to 25% while the 50% corporate
asset sales tax will be scrapped in 2002. The latter event is of major benefit
to our portfolio holding Allianz, the world's second largest insurance company,
with substantial industrial holdings.
JAPAN
Technically, the Japanese economy slipped back into recession during the
fourth quarter of 1999 as GDP fell by 1.4%. Nevertheless, a number of positive
signs are emerging. In February, industrial production rose 8.4% over February
1999, which was the largest increase in eleven years. Household spending rose by
3.8% in February, the highest annual rate of growth since March 1997. This was
despite the fact that February unemployment rose to an all time high of 4.9%. We
view the increase in unemployment positively because it indicates that corporate
restructuring is being taken seriously. We are encouraged that direct foreign
investment tripled last year to a record $14 billion. This included investments
in autos (Renault, DaimlerChrysler), telecommunications (Cable & Wireless,
Global Crossing), and finance (General Electric). Foreigners are even beginning
to make unsolicited bids for Japanese companies (Shoei, SS Pharmaceutical).
These trends favor increased shareholder value. In sum, we believe Japan is on
the road to recovery and we continue to identify attractive investment
opportunities.
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<PAGE>
LET'S TALK CONVERTS
The following are specifics on selected holdings of our Fund. Favorable
earnings prospects do not necessarily translate into higher prices, but they do
express a positive trend which we believe will develop over time.
AMDOCS LTD. (6.75%, CV. PFD.) delivers product-driven strategic services to
communications companies worldwide. Amdocs' products include customer care,
billing and order management systems. Amdocs has recently complemented its
product offering through acquisitions that better enable the company to provide
a wider array of solutions.
This convertible preferred trades nearly at parity and has a 243 basis
point yield advantage over the common stock.
CLEAR CHANNEL COMMUNICATIONS INC. (2.625% 04/01/03) is a global out-of-home
advertiser. The company operates 555,000 outdoor advertising displays in 32
countries. The company also operates 830 radio stations and 19 television
stations in the United States and has equity interests in 240 radio stations
abroad.
With the common stock at $69.06 the convertible trades at 120% and has a
218 basis point yield advantage. The convertible trades at an 8% premium to
parity.
DAIWA SECURITIES GROUP INC. (0.50%, 09/26/06) is a Japanese financial services
firm providing brokerage and underwriting services to a global client base. It
is the second of the "big three" securities firms. Daiwa has seen growing
brokerage commissions and investment trust sales and has entered into an
agreement with a Japanese cellular company to provide real-time stock price
information.
The convertible trades at 182.5% with the common stock at 1,930 Japanese
yen which is a 3.5% premium.
EM.TV & MERCHANDISING AG (4.00%, 02/16/05) is a global provider of child and
family entertainment. EM.TV licenses and merchandises original programming and
rights to third party content for the domestic and international television
markets. The company maintains a portfolio of over 28,000 episodes and also owns
the rights to many more through its various joint ventures. The company recently
purchased The Muppet Show from the Jim Henson Group as well as 50% of SLEC, the
holding company that controls Formula One racing.
This bond enjoys 372 basis points of yield advantage over the common and
trades at a 30% premium.
SATO CORP. (0.55%, 09/30/03) manufactures price labeling equipment, including
bar code hand labelers and electronic printers. The company also produces weight
labels and merchandise seals. Sato has international operations in Malaysia,
Singapore, the United States and the United Kingdom. Sato has been effectively
controlling costs while developing its global distribution network through its
overseas subsidiaries.
This bond trades at a 44% premium to parity with the stock at 670 yen.
6
<PAGE>
SWISS LIFE / MANNESMANN AG (1.50%, 05/20/03) is a diversified German
manufacturing company operating an engineering division, automotive division,
and telecommunications unit. The company has finished exiting its problem
businesses and has concentrated its efforts on its telecommunications
businesses. The company is currently in the process of being acquired by
Vodafone AirTouch plc.
This U.S. dollar denominated bond trades at 286.25% with the stock at 333
euros, which is a 3% discount to parity with a 34 basis point yield advantage.
TECMO LTD. (1.10%, 03/30/01) is a Tokyo-based manufacturer of computer game
software and gaming equipment. The company also operates amusement park
facilities throughout Japan. Tecmo is licensed to sell Sega, Sony, and Nintendo
game software.
This bond trades at a 6% discount to parity with the stock at 2,175 yen
and enjoys a 14 basis point yield advantage over the common stock.
TOHO CO. LTD. (0.90%, 08/31/04) is one of Japan's Big 3 motion picture companies
and the nation's largest film distributor. Toho manages movie theaters in
Japan's urban centers including a recent tie-up with Sony on a major multiplex
in Odaiba. Toho has also begun test distribution of its films to Space
Communications, a satellite communications carrier, as well as three other cable
operators. Toho sells character merchandise based on their media productions,
distributes foreign films, operates musical theaters, and produces musical
shows.
The stock trades at 27,550 yen, which puts this bond at 165%, a 2.5%
premium to parity and an 18 basis point yield advantage.
UNITED NEWS & MEDIA PLC (6.125%, 12/03/03) is a UK-based media company. The
group's publishing offerings include newspapers, business magazines, exhibitions
and market research in the US and the UK. United News also operates a television
broadcasting and production unit, providing programming in the UK, Europe and
Asia.
This bond yields 2% better than the common stock and trades at 120% with
the stock at 8.25 British pounds, a 10% premium to parity.
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 Fund and other Gabelli Funds are available through the
no-transaction fee programs at many major discount brokerage firms.
INTERNET
You can now 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].
7
<PAGE>
IN CONCLUSION
We are research-driven stock pickers with a long-term time horizon. Our
goal is to identify attractive convertibles of companies selling at a discount
to their intrinsic value, which have a catalyst to unlock that value. We believe
this philosophy provides us with a margin of safety that buffets us from the
vicissitudes of today's volatile marketplace. We thank you for your continued
support of our investment methodology.
The Fund's daily net asset value is available in the financial press and
each evening after 6:00 PM (Eastern Time) by calling 1-800-GABELLI
(1-800-422-3554). The Fund's Nasdaq symbol is GAGCX. Please call us during the
business day for further information.
SINCERELY,
/S/ HART WOODSON
A. HARTSWELL WOODSON, III
Portfolio Manager
April 14, 2000
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TOP TEN HOLDINGS
MARCH 31, 2000
--------------
Sato Corp. Daiwa Securities Group Inc.
Swiss Life/Mannesmann AG E.M.TV & Merchandising AG
Vivendi United News &Media plc
Tecmo Ltd. Amdocs Ltd.
Toho Co. Ltd. Clear Channel Communications 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.
8
<PAGE>
THE GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
CORPORATE BONDS -- 80.8%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.4%
$ 125,000 Standard Motor Products Inc.,
Sub. Deb. Cv.
6.75%, 07/15/09 .............. $ 89,844
-----------
BROADCASTING -- 8.7%
700,000(c) Canal Plus / Mediaset,
Sub. Deb. Cv.
3.50%, 04/01/02 .............. 462,596
400,000 Clear Channel Communications Inc.,
2.63%, 04/01/03 .............. 493,000
500,000(d) E.M.TV & Merchandising AG,
Sub. Deb. Cv.
4.00%, 02/16/05 (a) .......... 500,320
100,000 Scandinavian Broadcasting System SA,
Sub. Deb. Cv.
7.00%, 12/01/04 .............. 215,875
25,000,000(b) Tokyo Broadcasting System Inc.,
Sub. Deb. Cv.
1.80%, 03/31/03 .............. 404,149
-----------
2,075,940
-----------
BUILDING AND CONSTRUCTION -- 1.7%
131,200(d) Bouygues SA, Cv.
1.70%, 01/01/06 .............. 399,222
-----------
BUSINESS SERVICES -- 3.1%
100,000 Omnicom Group Inc.,
2.25%, 01/06/13 .............. 194,500
131,976(d) Vivendi, Cv.
1.25%, 01/01/04 .............. 168,767
284,550(d) Vivendi Environment, Cv.
1.50%, 01/01/05 .............. 380,806
-----------
744,073
-----------
COMMUNICATIONS EQUIPMENT -- 6.0%
300,000 LSI Logic Corp., Cv.
4.00%, 02/15/05 .............. 372,375
200,000 Swiss Life / Mannesmann AG,
Sub. Deb. Cv.
1.50%, 05/20/03 .............. 575,500
30,000,000(b) Toyo Communication Equipment Co. Ltd.,
Sub. Deb. Cv.
1.40%, 09/30/04 .............. 487,900
-----------
1,435,775
-----------
COMPUTER HARDWARE -- 1.3%
250,000 CMC Magnetics Corp., Cv.
1.00%, 10/06/04 (a) .......... 318,750
-----------
COMPUTER SOFTWARE AND SERVICES -- 7.6%
20,000,000(b) Capcom Co. Ltd.,
0.80%, 09/28/01 .............. 270,731
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
$ 400,000 Citrix Systems Inc.,
Sub. Deb. Cv.
Zero Coupon, 03/22/19 ........ $ 388,000
200,000 Getronics NV,
Sub. Deb. Cv.
0.25%, 04/21/04 .............. 356,209
8,000 NBC Internet Inc.,
Sub. Deb. Cv.
7.25%, 02/15/03 .............. 384,000
150,000 Siebel Systems Inc.,
5.50%, 09/15/06 (a) .......... 400,650
-----------
1,799,590
-----------
CONSUMER PRODUCTS -- 3.6%
60,000(d) Financiere Agache,
Zero Coupon, 04/23/04 ........ 275,918
40,000,000(b) Tecmo Ltd.,
Sub. Deb. Cv.
1.10%, 03/30/01 .............. 569,898
-----------
845,816
-----------
DIVERSIFIED INDUSTRIAL -- 5.6%
100,000 Comverse Technology Inc.,
4.50%, 07/01/05 .............. 430,000
200,000(d) Elektrim Finance,
Sub. Deb. Cv.
3.75%, 07/02/04 .............. 199,170
30,000,000(b) Itochu Corp.,
Sub. Deb. Cv.
Zero Coupon, 03/30/01 ....... 325,754
30,000,000(b) Tokai Corp.,
Sub. Deb. Cv.
1.30%, 03/31/04 .............. 388,567
-----------
1,343,491
-----------
ELECTRONICS -- 9.4%
150,000 ASM Lithography Holding,
Sub. Deb. Cv.
4.25%, 11/30/04 .............. 178,125
100,000 Level One Communications Inc.,
4.00%, 09/01/04 .............. 425,812
30,000,000(b) NEC Corp., Cv.
1.90%, 03/31/04 .............. 490,529
30,000,000(b) Nihon Denpa Kogyo Co. Ltd.,
(Dempa Kogy Dempa)
0.90%, 09/28/01 .............. 359,351
10,000,000(b) Sony Corp.,
Sub. Deb. Cv.
1.40%, 03/31/05 .............. 354,677
250,000 STMicroelectronics NV,
Zero Coupon, 09/22/09 ....... 420,937
-----------
2,229,431
-----------
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THE GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2000 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
CORPORATE BONDS (CONTINUED)
ENERGY AND UTILITIES -- 0.9%
$ 110,000 Devon Energy Corp.,
4.95%, 08/15/08 .............. $ 110,963
100,000 Diamond Offshore Drilling Inc.,
Sub. Deb. Cv.
3.75%, 02/15/07 .............. 114,875
-----------
225,838
-----------
ENTERTAINMENT -- 2.3%
35,000,000(b) Toho Co. Ltd.,
Sub. Deb. Cv.
0.90%, 08/31/04 .............. 558,650
-----------
EQUIPMENT AND SUPPLIES -- 5.1%
150,000 Antec Corp.,
Sub. Deb. Cv.
4.50%, 05/15/03 .............. 287,813
40,000,000(b) Sato Corp.,
Sub. Deb. Cv.
0.55%, 09/30/03 .............. 597,166
20,000,000(b) THK Co. Ltd.,
0.30%, 09/30/03 .............. 331,499
-----------
1,216,478
-----------
FINANCIAL SERVICES -- 7.4%
150,000 Cregem Finance NV,
Sub. Deb. Cv.
2.75%, 01/06/04 .............. 157,875
30,000,000(b) Daiwa Securities Group Inc.,
Sub. Deb. Cv.
0.50%, 09/29/06 .............. 537,566
200,000(d) Deutsche Bank Finance NV,
Sub. Deb. Cv.
2.00%, 12/22/03 .............. 236,036
125,775(d) Finaxa,
Sub. Deb. Cv.
3.00%, 01/01/07 .............. 214,673
700,000 Groupe Bruxelles Lambert SA,
Sub. Deb. Cv.
2.50%, 07/09/03 .............. 361,989
25,000,000(b) Marubeni Corp.,
Sub. Deb. Cv.
0.85%, 03/31/06 .............. 248,332
-----------
1,756,471
-----------
FOOD AND BEVERAGE -- 1.2%
10,000,000(b) Takara Shuzo Co.,
Sub. Deb. Cv.
0.90%, 03/31/03 .............. 286,897
-----------
HEALTH CARE -- 4.5%
200,000 Centocor Inc.,
Sub. Deb. Cv.
4.75%, 02/15/05 .............. 222,500
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
20,000,000(b Kanto Biomedical Laboratory Co. Ltd.,
1.60%, 11/30/06 .............. $ 247,358
$ 500,000 Roche Holding Ltd.,
Zero Coupon, 04/20/10 (a) .... 284,690
20,000,000(b) Yamanouchi Pharmaceutical Co. Ltd., Cv.
1.50%, 12/31/02 .............. 315,918
-----------
1,070,466
-----------
PUBLISHING -- 3.8%
100,000 Daily Mail & General Trust plc,
2.50%, 10/05/04 .............. 222,154
250,000 Medya Holding,
Sub. Deb. Cv.
10.00%, 06/28/01 ............. 188,750
250,000 United News & Media plc,
Sub. Deb. Cv.
6.13%, 12/03/03 .............. 497,736
-----------
908,640
-----------
TELECOMMUNICATIONS -- 6.6%
250,000 Bell Atlantic Financial, Cv.
4.25%, 09/15/05 .............. 358,125
350,000(d) Portugal Telecom International Finance,
Sub. Deb. Cv.
1.50%, 06/07/04 .............. 432,334
125,000 Telefonica Europe BV,
Sub. Deb. Cv.
2.00%, 07/15/02 .............. 321,250
300,000 Telefonos de Mexico SA,
4.25%, 06/15/04 .............. 467,625
-----------
1,579,334
-----------
WIRELESS COMMUNICATIONS -- 1.6%
550,000 United States Cellular Corp.,
Zero Coupon, 06/15/15 ........ 376,063
-----------
TOTAL CORPORATE BONDS ......... 19,260,769
-----------
SHARES
------
PREFERRED STOCKS -- 18.1%
BROADCASTING -- 1.1%
4,000 Emmis Communications Corp.,
6.25% Pfd., Ser. A+ .......... 258,000
-----------
BUSINESS SERVICES -- 2.1%
8,000 Amdocs Ltd.,
6.75% Cv. Pfd. .............. 496,000
-----------
CABLE -- 2.9%
2,200 MediaOne Group Inc.,
6.25% Cv. Pfd. ............... 261,250
4,500 UnitedGlobalCom Inc.,
7.00% Cv. Pfd. (a) ........... 428,062
-----------
689,312
-----------
10
<PAGE>
THE GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2000 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
------ ------
PREFERRED STOCKS (CONTINUED)
CONSUMER SERVICES -- 0.4%
4,000 Carriage Services Inc.,
7.00% Cv. Pfd. (a) ........... $ 104,000
-----------
DIVERSIFIED INDUSTRIAL -- 1.2%
5,000 Titan Capital Trust,
5.75% Cv. Pfd. (a) ........... 295,627
-----------
ENERGY AND UTILITIES -- 2.2%
EVI Inc.,
300 5.00% Cv. Pfd. ............... 14,119
4,000 5.00% Cv. Pfd. (a) ........... 188,250
2,000 Houston Industries Inc.,
7.00% Cv. Pfd. ............... 318,000
-----------
520,369
-----------
ENTERTAINMENT -- 2.5%
6,000 Seagram Co.,
7.50% Cv. Pfd. ............... 333,000
2,000 Village Roadshow Ltd.,
6.50% Cv. Pfd. (a) ........... 71,250
17,000,000 Yoshimoto Kogyo Co.,
2.20% Cv. Pfd. ............... 198,666
-----------
602,916
-----------
PAPER AND FOREST PRODUCTS -- 0.3%
2,000 Amcor Ltd.,
7.25% Cv. Pfd. ............... 75,000
-----------
PUBLISHING -- 1.3%
10,000 Reader's Digest Association Inc.,
$1.9336 Cv. Pfd. ............. 310,000
-----------
TELECOMMUNICATIONS -- 2.5%
5,000 BroadWing Inc.,
6.75% Cv. Pfd., Ser. B ....... 290,000
Global Telesystems Group Inc.,
4,000 7.25% Cv. Pfd. ............... 162,000
4,000 7.25% Cv. Pfd.+ (a) .......... 150,750
-----------
602,750
-----------
WIRELESS COMMUNICATIONS -- 1.6%
4,000 Winstar Communications Inc.,
7.00% Cv. Pfd. ............... 374,750
-----------
TOTAL PREFERRED STOCKS ........ 4,328,724
-----------
COMMON STOCKS -- 3.6%
COMPUTER SOFTWARE AND SERVICES -- 1.8%
2,207 EMC Corp.+ .................... 275,877
2,000 Justsystem Corp. .............. 153,869
-----------
429,746
-----------
DIVERSIFIED INDUSTRIAL -- 0.4%
5,720 Elektrim SA ................... 83,109
-----------
MARKET
SHARES VALUE
------ ------
HEALTH CARE -- 1.4%
2,000 Biotech HOLDRs Trust+ ......... $ 339,000
-----------
WIRELESS COMMUNICATIONS -- 0.0%
72 Winstar Communications Inc.+ .. 4,308
-----------
TOTAL COMMON STOCKS ........... 856,163
-----------
RIGHTS -- 0.2%
BUSINESS SERVICES -- 0.2%
3,300 Cendant Corp. Rights+ ......... 37,125
-----------
WARRANTS -- 0.1%
DIVERSIFIED INDUSTRIAL -- 0.1%
900 Bandai Co. Ltd. ............... 28,125
-----------
TOTAL INVESTMENTS -- 102.8%
(Cost $19,744,831) ........... 24,510,906
OTHER ASSETS AND
LIABILITIES (NET) -- (2.8)% (665,373)
-----------
NET ASSETS -- 100.0%
(1,585,600 shares outstanding) $23,845,533
===========
SETTLEMENT NET UNREALIZED
DATE DEPRECIATION
---------- --------------
FORWARD FOREIGN EXCHANGE CONTRACTS
207,680,000 (b) Deliver Japanese Yen
in exchange for
USD $2,143,521 02/16/01 $(143,521)
197,320,000 (b) Deliver Japanese Yen
in exchange for
USD $2,045,885 03/13/01 (45,885)
---------
$(189,406)
=========
------------------------
(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 March
31, 2000, the market value of Rule 144A securities amounted to $2,742,349
or 11.5% of total net assets.
(b) Principal amount denoted in Japanese Yen.
(c) Principal amount denoted in French Francs.
(d) Principal amount denoted in Euros.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depsitary Receipt.
USD - U.S. Dollars.
% OF MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
-------------------------- ----------- ------
North America ............ 37.9% $ 9,288,638
Japan .................... 29.2% 7,156,602
Europe ................... 29.1% 7,134,041
Latin America ............ 1.9% 467,625
Asia/Pacific Rim ......... 1.9% 465,000
----- -----------
100.0% $24,510,906
===== ===========
11
<PAGE>
Gabelli Global Series Funds, Inc.
THE GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
One Corporate Center
Rye, New York 10580-1434
1-800-GABELLI
[1-800-422-3554]
FAX: 1-914-921-5118
HTTP://WWW.GABELLI.COM
E-MAIL: [email protected]
(Net Asset Value may be obtained daily by calling
1-800-GABELLI after 6:00 P.M.)
BOARD OF DIRECTORS
Mario J. Gabelli, CFA Karl Otto Pohl
CHAIRMAN AND CHIEF FORMER PRESIDENT
INVESTMENT OFFICER DEUTSCHE BUNDESBANK
GABELLI ASSET MANAGEMENT INC.
Felix J. Christiana Werner J. Roeder, MD
FORMER SENIOR VICE PRESIDENT MEDICAL DIRECTOR
DOLLAR DRY DOCK SAVINGS BANK LAWRENCE HOSPITAL
Anthony J. Colavita Anthonie C. van Ekris
ATTORNEY-AT-LAW MANAGING DIRECTOR
ANTHONY J. COLAVITA, P.C. BALMAC INTERNATIONAL, INC.
John D. Gabelli
SENIOR VICE PRESIDENT
GABELLI & COMPANY, INC.
OFFICERS AND PORTFOLIO MANAGERS
Mario J. Gabelli, CFA A. Hartswell Woodson, III
PRESIDENT AND CHIEF VICE PRESIDENT AND
INVESTMENT OFFICER PORTFOLIO MANAGER
Bruce N. Alpert James E. McKee
VICE PRESIDENT AND SECRETARY
TREASURER
DISTRIBUTOR
Gabelli & Company, Inc.
CUSTODIAN, TRANSFER AGENT AND DIVIDEND AGENT
State Street Bank and Trust Company
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
- --------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of The
Gabelli Global Convertible Securities Fund. It is not authorized for
distribution to prospective investors unless preceded or accompanied by an
effective prospectus.
- --------------------------------------------------------------------------------
GAB441Q100SR
[Photo of Mario J. Gabelli omitted]
THE
GABELLI
GLOBAL
CONVERTIBLE SECURITIES
FUND
FIRST QUARTER REPORT
MARCH 31, 2000
