[GRAPHIC OF FLAGS OMITTED]
THE GABELLI GLOBAL
CONVERTIBLE SECURITIES FUND
SEMI-ANNUAL REPORT -- JUNE 30, 2000
[PHOTO OF HART WOODSON OMITTED]
HART WOODSON
TO OUR SHAREHOLDERS,
During the second quarter of 2000, the Gabelli Global Convertible
Securities Fund (the "Fund") suffered as rising interest rates and inflation
fears caused a downturn in global equity valuations. As expected, companies with
weak balance sheets generating negative cash flow suffered the most. For
example, the "Inter@ctive Week" Internet Index fell 20.29% during the quarter,
while the technology heavy NASDAQ Composite Index (NASDAQ) declined by 13.27%.
Unfortunately, the damage was not limited to the United States, as Japan's
Nikkei 225 Index fell 17.08%. Europe fared better, as the Bloomberg 500 Index
only slipped 4.55%. As previously cautioned, downside volatility is to be
expected as the global economy transitions from liquidity-induced growth (post
the Russian crisis and Y2K fears) to a more sustainable growth path.
In the U.S., we believe that the Federal Reserve (the "Fed") is doing a
good job in slowing the economy without jeopardizing expansion. We expect the
recoveries in Japan and Europe to continue. As for stock selection, we have not
altered our investment philosophy. We are long-term investors driven by
fundamentals. We look for value, with a catalyst to unlock that value, on a
global basis. The major macro underpinnings of the bull market remain intact:
economics, earnings, liquidity and consolidation. Your portfolio continues to
benefit from these trends, as evidenced by Vivendi's acquisition of Seagram and
Texas Instruments' purchase of Burr-Brown. We believe a well-diversified (by
geography and sector) portfolio of convertible securities offers investors an
attractive total rate of return investment vehicle.
INVESTMENT PERFORMANCE
For the second quarter ended June 30, 2000, the Fund's Class AAA Shares
declined 10.16%. The Warburg Dillon Read Global Convertible Index, Merrill Lynch
Global Bond Index and Morgan Stanley Capital International World Free Index of
global equity markets returned (6.13)%, 0.49%, and (3.81)%, respectively, over
the same period. Each index is an unmanaged indicator of investment performance.
The Fund was up 27.54% over the trailing twelve-month period. The Warburg Dillon
Read Global
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT RESULTS (CLASS AAA SHARES)(a)
--------------------------------------------------------------------------------------------------------------
Quarter
-----------------------------------------
1st 2nd 3rd 4th Year
------ ------ --- --- ----
<S> <C> <C> <C> <C> <C>
2000: Net Asset Value ..................... $15.04 $13.21 -- -- --
Total Return ........................ 10.6% (10.2)% -- -- --
--------------------------------------------------------------------------------------------------------------
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)
--------------------------------------------------------------------------------------------------------------
</TABLE>
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
----------------------------------------------------------
Average Annual Returns (Class AAA Shares)
-----------------------------------------
June 30, 2000 (a)
-----------------
1 Year ................................. 27.54%
5 Year ................................. 13.20%
Life of Fund (b) ....................... 11.50%
----------------------------------------------------------
(a) Total returns and average annual returns for the Class AAA Shares 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.
--------------------------------------------------------------------------------
Convertible Index, Merrill Lynch Global Bond Index and Morgan Stanley Capital
International World Free Index had total returns of 25.38%, 2.91%, and 12.37%,
respectively, over the same twelve-month period.
For the five-year period ended June 30, 2000, the Fund's total return
averaged 13.20% annually, versus average annual total returns of 12.83%, 3.95%,
and 16.62% for the Warburg Dillon Read Global Convertible Index, Merrill Lynch
Global Bond Index and Morgan Stanley Capital International World Free Index,
respectively.
Since inception on February 3, 1994 through June 30, 2000, the Fund had a
cumulative total return of 100.93%, which equates to an average annual return of
11.50%.
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 second quarter ended June 30, 2000, The Gabelli Global
Convertible Securities Fund Class A Shares had a total return of (10.16)%
(excluding the effect of the 5.75% front-end sales charge). (Class B and Class C
Shares have not been issued as of June 30, 2000). The Class A Shares ended the
second quarter with a net asset value of $13.21.
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 presents the Fund's holdings by geographic region
as of June 30, 2000. The geographic allocation will change based on current
global market conditions. Countries and/or regions represented in the chart and
below may or may not be included in the Fund's future portfolio.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINT GRAPHIC AS FOLLOWS:
HOLDINGS BY GEOGRAPHIC REGION - 6/30/00
United States 39.1%
Europe 28.8%
Japan 27.1%
Latin America 2.4%
Canada 1.9%
Asia/Pacific Rim 0.7%
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 fixed income
instruments. They can be thought of as a straight bond together with an embedded
call option (or warrant) on the underlying equity.
3
<PAGE>
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
UNITED STATES
After raising interest rates 1.75% since May of 1999, the effects of the
Fed's tightening are beginning to take hold. The growth in Gross Domestic
Product (GDP) slowed to 5.4% in the first quarter of 2000 from the breakneck
speed of 7.3% in the final quarter last year. Inflation remains a concern, but
we may have already seen the peak in energy prices, as OPEC agreed to increase
production quotas at the end of June. As the Fed reaches the end of its
tightening cycle, we expect the economy to continue to slow in the second half.
What does this mean for global convertible investors?
As the economy slows, short-term interest rates are likely to fall,
benefiting the fixed income component of convertibles. Meanwhile, the macro
underpinnings of the equity market remain intact. Liquidity is strong. During
the first five months of 2000, inflows into equity mutual funds totaled $188
billion. This was equal to the total amount invested in all of 1999. Merger and
acquisition activity continued to surge, with $170 billion reported in the first
four months of the year. However, the current administration's increased
vigilance to scrutinize deals (i.e. WorldCom/Sprint) could dampen this trend. In
this context, a Bush victory in November could be a plus for the market.
With the economy slowing, the main concern will be earnings. After a
strong first quarter, operating earnings of the Standard & Poor's ("S&P") 500
Index are expected to grow in the low double digits. We favor companies with
steady growth in revenues and cash flow because shortfalls are likely to be
severely punished.
EUROPE
During the first quarter, GDP grew at an annualized rate of 3.0% in
Euroland. Like the Fed, the European Central Bank (ECB) is keeping a close watch
on inflation. Producer prices rose 0.8% in May and the ECB is likely to raise
rates again to avoid an overheating economy. German retail sales were strong in
April and industrial goods orders rose above expectations in May. In France,
both private consumption and investment are driving the economy. Merger and
acquisition activity in Europe is outpacing the United States. The Euro, after
reaching a low of $0.88, is showing signs of recovery as growth rates and
interest rate differentials between Europe and the U.S. narrow.
4
<PAGE>
JAPAN
The Tankan survey of large manufacturers' sentiment about the direction of
the economy rose to +3 in June from -9 in March. This is the first positive
reading on the index since September 1997. During the first quarter, exports
helped increase industrial production by 6.5%, the fastest rate since the late
1980's. This year exports have grown three times faster than imports. These
positive signs are improving consumer confidence.
However, the economy continues to face problems. Deficit spending has
raised the overall debt level to 125% of GDP, one of the highest ratios in the
world. Consequently Fitch, the credit rating agency, downgraded Japan's
long-term local currency rating from AAA to AA+. Also troubling is the
government's proposal to bail out the failing department store chain Sogo. Such
proposals do not encourage the tough restructuring measures required by the
economy. Nevertheless, the corporate culture is changing. DuPont, the U.S. based
chemical producer, announced that it was looking to make acquisitions in Japan
as hostile takeovers become more frequent.
LET'S TALK CONVERTS
BURR-BROWN CORP. (4.25%, 02/15/07) is a global developer, manufacturer, and
marketer of analog and mixed signal integrated circuits. The company produces
high precision data converters and other signal processing components. The
company is currently in the process of being acquired by Texas Instruments (TXN
- $68.6875 - NYSE), the world's leader in digital signal processors and analog
semiconductors, for $7.6 billion in stock.
With the stock at $89.375, the convertible trades at 173.875% on a 12% premium
to parity and enjoys a 2.4% yield advantage over the common stock.
LSI LOGIC CORP. (LSI, 4.00%, 02/15/05) is a semiconductor company based in
California that supplies communication chips for wireless, data networking,
broadband, and digital set-top box applications. Its revenues grew 39% in 1999
due to the tremendous growth in demand for greater bandwidth in data and voice
devices. LSI has made large gains with its storage area network (SAN) systems
that provide new methods for connection and sharing among multiple servers. The
company looks forward to the U.S. release of Sony's Playstation 2 later this
summer, because every unit will contain a LSI chip.
With the stock at $53.50, the bond trades at 105.375% on a 32% premium and a
3.80% yield advantage.
NEC CORP. (1.90%, 03/31/04) is a one hundred year-old Tokyo-based manufacturer
and marketer of a wide range of computers and electrical components and
equipment. It also produces cellular phones, communication systems, and other
telecommunication devices. NEC is the second largest worldwide supplier of
computer chips. In the fiscal year ended March 31, 2000, the company began a
substantial turnaround, earning 10.4 billion yen (US $99 million) on sales of
4.9 trillion yen (US $48 billion).
5
<PAGE>
The convertible, rated BBB by Mikuni, trades at 180.25% with the common stock at
3,400 Japanese Yen, which is a 5.2% premium. With a current yield of 1.0%, the
bond enjoys a 0.87% yield advantage over the common.
NIHON DEMPA KOGYO CO. LTD. (DEMPA KOGY DEMPA) (0.90%, 09/28/01) is a Japanese
company that manufactures synthetic quartz and quartz-related products including
filters, oscillators, and resonators for electronic applications. The company's
revenues grew by 20% in the fiscal year ended March 31, 2000 to 56.5 billion yen
(US $540 million) while operating profits rose by 162%.
The bond yields 0.32% more than the common stock, which is currently priced at
5,500 yen. The convertible is "deep-in-the money", trading at a parity of
156.50%.
PORTUGAL TELECOM SA (1.50%, 06/07/04) provides the majority of domestic and
international fixed telephone services in Portugal, along with a growing share
of cellular, cable TV, and multimedia services. The company recently joined
forces with Commerce One Inc., the leading e-commerce company, to create a new
business-to-business electronic marketplace (PT Electronic Marketplace). The
company has also acquired control of wireless phone services in Brazil (Telesp
Cellular) and Morocco, where there is significant demand for wireless products.
The convertible, which is rated A+ by Standard and Poor's, trades at 120.50% on
a 10% premium with the stock at 11.75 euros.
SWISS LIFE FINANCE LTD. (2.00%, 05/20/03) is convertible into shares of Glaxo
Wellcome. Glaxo Wellcome (GLX - $57.8125 - NYSE), a U.K. based company, is a
leading producer of pharmaceuticals for a variety of health areas including
respiratory ailments (which make up 30% of sales), epilepsy, HIV, and
indigestion. In 1981, the company introduced one of its most successful drugs,
Zantac (for heartburn), which boosted the company to the top of the anti-ulcer
drug market in the US. The company looks for large cost savings when it
completes its announced merger with rival SmithKline Beecham (SBH - $65.1875 -
NYSE) later this summer.
With the stock at 19.25 British pounds, the convertible trades at 100.50% on a
28% premium and 2% current yield.
TELEFONOS DE MEXICO SA (4.25%, 6/15/04), also known as Telmex, provides a wide
range of telecommunication services, from local and long distance to cellular,
throughout Mexico. Telmex also provides other related telecommunication
services, such as directory services and Internet access. In fact, Telmex
controls about 75% of the Mexican long distance market and just launched
T1msn.com, a Spanish-language Internet portal with Microsoft.
This bond trades at 128.25% with the stock at $53.75, which is a 13.24%
conversion premium with a 1.8% yield advantage.
6
<PAGE>
UNITED NEWS AND MEDIA PLC (6.125%, 12/03/03) is a London based media company. It
has operations in broadcasting and entertainment, business services, and
consumer publishing in over 20 countries. The group's publishing offerings
include newspapers, business magazines, exhibitions and market research. United
is in the process of selling Miller Freeman, the world's largest trade show
group, and is in talks to merge with Carlton Communications, a rival UK
broadcaster. United has also expanded its Internet holdings.
This bond yields 2.20% more than the common stock and trades at 133.0% with the
stock at 9.24 British pounds, an 8.67% premium to parity.
VIVENDI (1.25%, 01/01/04) is a French based conglomerate that provides services
in many different areas. It is the world's largest water company and has
sizeable construction, waste management, transportation, and electricity
services. Vivendi began expanding into the entertainment and wireless industry
with the acquisition of Cedant Software in 1999, and the announcement of a joint
venture with Vodafone in 2000 to develop an Internet portal (Vizzavi). Most
recently, Vivendi has proposed a $41 billion dollar merger with Seagram to
create Vivendi Universal. The main focus of the deal is to provide additional
content (i.e. music) for Vizzavi.
The Vivendi 1.25% convertible due 2004 is rated BBB and trades at 319.5 euros on
a 13% premium.
Vivendi Environment's 1.50% convertible, due in 2005, trades at 322 euros (i.e.
118.10%), with the stock at 92.50 euros on a 14% premium. This convertible gives
the holder a priority subscription right and a 5% discount for Vivendi
Environment's initial public offering expected in July.
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 brokerage firms.
WWW.GABELLI.COM
Please visit us on the Internet. Our homepage 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].
CONCLUSION
The second quarter was difficult for global convertible investors.
Nevertheless, we believe the general macro conditions remain constrictive and
are likely to improve (especially in Japan and Europe). In the year ahead, we
will remain focused on company fundamentals, seeking the world's most compelling
investment opportunities. We thank you for your continued support of our
investment philosophy.
7
<PAGE>
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/ SIGNATURE OMITTED
A. HARTSWELL WOODSON, III
Portfolio Manager
July 14, 2000
--------------------------------------------------------------------------------
MONTHLY DISTRIBUTIONS -- $0.10 PER SHARE
----------------------------------------
Reinvestment Date Reinvestment Price Reinvestment Date Reinvestment Price
--------------------------------------------------------------------------------
January 27, 2000 $14.05 April 26, 2000 $13.64
February 25, 2000 $15.28 May 26, 2000 $12.62
March 29, 2000 $15.26 June 28, 2000 $13.38
---------------------------------------------------------------------
TOP TEN HOLDINGS
JUNE 30, 2000
-------------
Clear Channel Communications Inc. Toho Co., Ltd.
NEC Corp. Comverse Technology Inc.
United News & Media plc Level One Communications Inc.
Swiss Life Finance Ltd. Daiwa Securities Group Inc.
Nihon Denpa Kogyo Co. Ltd., Telefonos de Mexico SA
(Dempa Kogy Dempa)
---------------------------------------------------------------------
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 -- JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COST VALUE
--------- ---- -----
CORPORATE BONDS -- 80.1%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.4%
$ 125,000 Standard Motor Products Inc.,
Sub. Deb. Cv.
6.75%, 07/15/09 ................. $ 125,000 $ 64,687
--------- ---------
BROADCASTING -- 6.7%
700,000(c) Canal Plus / Mediaset,
Sub. Deb. Cv.
3.50%, 04/01/02 ................. 125,372 365,838
400,000 Clear Channel
Communications Inc.,
2.63%, 04/01/03 ................. 506,667 517,500
15,000,000(b) Tokyo Broadcasting
System Inc.,
Sub. Deb. Cv.
1.80%, 03/31/03 ................. 171,187 270,041
--------- ---------
803,226 1,153,379
--------- ---------
BUSINESS SERVICES -- 3.7%
100,000 Omnicom Group Inc.,
2.25%, 01/06/13 ................. 154,491 183,750
131,976(d) Vivendi, Cv.
1.25%, 01/01/04 ................. 148,513 141,729
284,550(d) Vivendi Environment, Cv.
1.50%, 01/01/05 ................. 307,560 316,038
--------- ---------
610,564 641,517
--------- ---------
COMMUNICATIONS EQUIPMENT -- 1.9%
300,000 LSI Logic Corp., Cv.
4.00%, 02/15/05 ................. 358,402 319,125
--------- ---------
COMPUTER SOFTWARE AND SERVICES -- 2.5%
22,000,000(b) Capcom Co. Ltd., Cv.
1.00%, 09/30/05 ................. 234,826 240,539
8,000 NBC Internet Inc.,
Sub. Deb. Cv.
7.25%, 02/15/03 ................. 490,725 186,000
--------- ---------
725,551 426,539
--------- ---------
DIVERSIFIED INDUSTRIAL -- 5.2%
100,000 Comverse Technology Inc., Cv.
4.50%, 07/01/05 ................. 194,432 431,000
200,000(d) Elektrim Finance,
Sub. Deb. Cv.
3.75%, 07/02/04 ................. 208,680 181,402
20,000,000(b) Nippon Ceramic, Cv.
1.00%, 12/30/02 ................. 272,628 280,880
--------- ---------
675,740 893,282
--------- ---------
PRINCIPAL MARKET
AMOUNT COST VALUE
--------- ---- -----
ELECTRONICS -- 15.8%
$ 200,000 Burr-Brown Corp.
Sub. Deb. Cv.
4.25%, 02/15/07 (a) ............. $ 262,605 $ 337,500
100,000 Level One Communications Inc.,
4.00%, 09/01/04 ................. 195,363 423,250
30,000,000(b) NEC Corp., Cv.
1.90%, 03/31/04 ................. 349,660 503,040
30,000,000(b) Nihon Denpa Kogyo Co. Ltd.
(Dempa Kogy Dempa),
0.90%, 09/28/01 ................. 314,514 442,528
Sanyo Electric Co. Ltd., Cv.
12,000,000(b) 1.70%, 11/29/02 ................. 149,937 184,929
20,000,000(b) 1.60%, 11/30/04 ................. 228,275 231,868
10,000,000(b) Sony Corp., Sub. Deb. Cv.
1.40%, 03/31/05 ................. 242,195 236,109
200,000 STMicroelectronics NV,
Zero Coupon, 09/22/09 ........... 211,453 343,250
--------- ---------
1,954,002 2,702,474
--------- ---------
ENERGY AND UTILITIES -- 2.8%
251,460(d) Belgelectric Finance BV, Cv.
1.50%, 08/04/04 ................. 255,801 264,943
110,000 Devon Energy Corp.,
4.95%, 08/15/08 ................. 117,624 105,875
100,000 Diamond Offshore Drilling Inc.,
Sub. Deb. Cv.
3.75%, 02/15/07 ................. 106,843 104,750
--------- ---------
480,268 475,568
--------- ---------
ENTERTAINMENT -- 2.5%
35,000,000(b) Toho Co. Ltd.,
Sub. Deb. Cv.
0.90%, 08/31/04 ................. 412,791 436,448
--------- ---------
EQUIPMENT AND SUPPLIES -- 5.8%
150,000 Antec Corp., Sub. Deb. Cv.
4.50%, 05/15/03 ................. 189,451 255,750
30,000,000(b) Sato Corp.,
Sub. Deb. Cv.
0.55%, 09/30/03 ................. 348,755 359,112
20,000,000(b) THK Co. Ltd.,
0.30%, 09/30/03 ................. 217,498 377,021
--------- ---------
755,704 991,883
--------- ---------
FINANCIAL SERVICES -- 12.4%
250,000 Cregem Finance NV,
Sub. Deb. Cv.
2.75%, 01/06/04 ................. 280,653 304,375
30,000,000(b) Daiwa Securities Group Inc.,
Sub. Deb. Cv.
0.50%, 09/29/06 ................. 335,214 418,493
See accompanying notes to financial statements.
9
<PAGE>
THE GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COST VALUE
--------- ---- -----
CORPORATE BONDS (CONTINUED)
FINANCIAL SERVICES (CONTINUED)
200,000(d) Deutsche Bank Finance NV,
Sub. Deb. Cv.
2.00%, 12/22/03 ................. $ 215,977 $ 216,012
125,775(d) Finaxa, Sub. Deb. Cv.
3.00%, 01/01/07 ................. 203,217 239,781
99,994(d) Finmeccanica SpA, Cv.
2.00%, 06/08/05(a) .............. 94,589 94,161
700,000(d) Groupe Bruxelles Lambert SA,
Sub. Deb. Cv.
2.50%, 07/09/03 ................. 383,405 363,220
$ 500,000 Swiss Life Finance Ltd., Cv.
2.00%, 05/20/03 ................. 490,740 496,250
---------- -----------
2,003,795 2,132,292
---------- -----------
FOOD AND BEVERAGE -- 1.8%
10,000,000(b) Takara Shuzo Co.,
Sub. Deb. Cv.
0.90%, 03/31/03 ................. 302,394 311,042
---------- -----------
HEALTH CARE -- 3.4%
200,000 Centocor Inc., Sub. Deb. Cv.
4.75%, 02/15/05 ................. 270,516 270,750
20,000,000(b) Yamanouchi Pharmaceutical
Co. Ltd., Cv.
1.50%, 12/31/02 ................. 285,406 311,042
---------- -----------
555,922 581,792
---------- -----------
PUBLISHING -- 5.2%
100,000(e) Daily Mail & General Trust plc,
2.50%, 10/05/04 ................... 166,199 199,548
250,000 Medya Holding, Sub. Deb. Cv.
10.00%, 06/28/01 ................ 249,902 188,750
250,000(e) United News & Media plc,
Sub. Deb. Cv.
6.13%, 12/03/03 ................. 454,692 501,214
---------- -----------
870,793 889,512
---------- -----------
TELECOMMUNICATIONS -- 8.1%
250,000 Bell Atlantic Financial, Cv.
4.25%, 09/15/05 ................. 261,016 308,437
350,000(d) Portugal Telecom International
Finance, Sub. Deb. Cv.
1.50%, 06/07/04 ................. 409,219 398,489
125,000 Telefonica Europe BV,
Sub. Deb. Cv.
2.00%, 07/15/02 ................. 174,341 273,821
300,000 Telefonos de Mexico SA,
4.25%, 06/15/04 ................. 365,786 402,375
---------- -----------
1,210,362 1,383,122
---------- -----------
PRINCIPAL MARKET
AMOUNT COST VALUE
--------- ---- -----
WIRELESS COMMUNICATIONS -- 1.9%
$ 550,000 United States Cellular Corp.,
Zero Coupon, 06/15/15 ........... $ 328,347 $ 328,625
---------- -----------
TOTAL CORPORATE BONDS 12,172,861 13,731,287
---------- -----------
SHARES
-------
PREFERRED STOCKS -- 17.5%
BROADCASTING -- 1.4%
4,000 Emmis Communications Corp.,
6.25% Pfd., Ser. A+ ............. 247,500 232,000
---------- -----------
BUSINESS SERVICES -- 1.5%
4,000 Amdocs Ltd.,
6.75% Cv. Pfd. .................. 133,700 252,500
---------- -----------
CABLE -- 3.0%
6,000 MediaOne Group Inc.,
7.00% Cv. Pfd. .................. 241,050 243,000
4,500 UnitedGlobalCom Inc.,
7.00% Cv. Pfd. (a) .............. 265,125 270,563
---------- -----------
506,175 513,563
---------- -----------
CONSUMER SERVICES -- 0.5%
4,000 Carriage Services Inc.,
7.00% Cv. Pfd. (a) .............. 200,000 94,000
---------- -----------
DIVERSIFIED INDUSTRIAL -- 1.6%
5,000 Titan Capital Trust,
5.75% Cv. Pfd. (a) .............. 250,000 273,750
---------- -----------
ENERGY AND UTILITIES -- 1.2%
300 EVI Inc., 5.00% Cv. Pfd. .......... 9,413 13,800
4,000 EVI Inc., 5.00% Cv. Pfd. (a) ...... 200,000 184,000
---------- -----------
209,413 197,800
---------- -----------
ENTERTAINMENT -- 2.2%
6,000 Seagram Co.,
7.50% Cv. Pfd. .................. 314,912 322,500
2,000 Village Roadshow Ltd.,
6.50% Cv. Pfd. .................. 85,000 55,625
---------- -----------
399,912 378,125
---------- -----------
PAPER AND FOREST PRODUCTS -- 0.4%
2,000 Amcor Ltd.,
7.25% Cv. Pfd. .................. 94,000 74,000
---------- -----------
PUBLISHING -- 2.0%
10,000 Reader's Digest Association
Inc., $1.9336 Cv. Pfd. .......... 304,219 350,000
---------- -----------
See accompanying notes to financial statements.
10
<PAGE>
THE GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
--------- ---- -----
PREFERRED STOCK (CONTINUED)
TELECOMMUNICATIONS -- 2.4%
5,000 BroadWing Inc.,
6.75% Cv. Pfd., Ser. B .......... $ 261,500 $ 235,000
4,000 Global Telesystems Group Inc.,
7.25% Cv. Pfd. .................. 197,500 89,000
4,000 Global Telesystems Group Inc.,
7.25% Cv. Pfd.+ ................. 200,000 92,250
----------- -----------
659,000 416,250
----------- -----------
WIRELESS COMMUNICATIONS -- 1.3%
4,000 Winstar Communications Inc.,
7.00% Cv. Pfd. .................. 173,500 225,000
----------- -----------
TOTAL PREFERRED STOCKS 3,177,419 3,006,988
----------- -----------
COMMON STOCKS -- 1.5%
ENTERTAINMENT -- 1.5%
3,306 Time Warner Inc. .................. 108,600 251,226
----------- -----------
TOTAL
INVESTMENTS -- 99.1%............. $15,458,880 16,989,501
===========
OTHER ASSETS AND
LIABILITIES (NET) -- 0.9%...................... 161,033
------------
NET ASSETS -- 100.0%
(1,298,714 shares outstanding) ................ $17,150,534
===========
------------------------
For Federal tax purposes:
Aggregate cost .................................. $15,458,880
===========
Gross unrealized appreciation ................... $ 2,511,046
Gross unrealized depreciation ................... (980,425)
-----------
Net unrealized appreciation ..................... $ 1,530,621
===========
PRINCIPAL SETTLEMENT NET UNREALIZED
AMOUNT DATE DEPRECIATION
--------- ---------- --------------
FORWARD FOREIGN EXCHANGE CONTRACTS
207,680,000(b) Deliver Japanese Yen
in exchange for
USD $2,043,250 ............ 02/16/01 $(43,250)
194,760,000(b) Deliver Japanese Yen
in exchange for
USD $1,962,320 ............ 06/27/01 $ 37,680
--------
$ (5,570)
========
------------------------
(a) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At June 30,
2000, the market value of Rule 144A securities amounted to $1,254,074 or
7.3% of net assets.
(b) Principal amount denoted in Japanese Yen.
(c) Principal amount denoted in French Francs.
(d) Principal amount denoted in Euros. (e) Principal amount denoted in British
Pounds.
+ Non-income producing security.
USD - U.S. Dollars.
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
-------------------------- ------ ----------
North America ................ 41.0% $ 6,965,588
Europe ....................... 28.8% 4,888,821
Japan ........................ 27.1% 4,603,092
Latin America ................ 2.4% 402,375
Asia/Pacific Rim ............. 0.7% 129,625
------ -----------
100.0% $16,989,501
====== ===========
See accompanying notes to financial statements.
11
<PAGE>
THE GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
----------------------------------------------------------------
ASSETS:
Investments, at value (Cost $15,458,880) ........ $16,989,501
Receivable for investments sold ................. 972,798
Receivable for Fund shares sold ................. 1,670
Dividends, interest and reclaims receivable ..... 76,332
-----------
TOTAL ASSETS .................................... 18,040,301
-----------
LIABILITIES:
Payable for investments purchased ............... 241,050
Payable for Fund shares redeemed ................ 5,771
Payable for investment advisory fees ............ 15,264
Payable for distribution fees ................... 3,816
Payable to custodian ............................ 591,027
Unrealized depreciation on forward
foreign exchange contracts .................... 5,570
Other accrued expenses .......................... 27,269
-----------
TOTAL LIABILITIES ............................... 889,767
-----------
NET ASSETS applicable to 1,298,714
shares outstanding ............................ $17,150,534
===========
NET ASSETS CONSIST OF:
Capital stock, at par value ..................... $ 1,299
Additional paid-in capital ...................... 15,508,956
Accumulated net investment loss ................. (319,529)
Accumulated net realized gain on investments
and foreign currency transactions ............. 436,253
Net unrealized appreciation on investments
and foreign currency transactions ............. 1,523,555
-----------
TOTAL NET ASSETS ................................ $17,150,534
===========
SHARES OF CAPITAL STOCK:
CLASS AAA:
Net Asset Value, offering and
redemption price per share
(1,298,398 shares outstanding) ............... $13.21
======
CLASS A:
Net Asset Value and redemption
price per share (316 shares outstanding) ..... $13.21
======
Maximum sales charge ........................... 5.75%
=====
Maximum offering price per share (NAV
[DIVIDE] 0.9425, based on maximum sales
charge of 5.75% of the offering price at
June 30, 2000) ............................... $14.02
======
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
----------------------------------------------------------------
INVESTMENT INCOME:
Dividends ....................................... $ 101,984
Interest ........................................ 179,251
Amortization of premium ......................... (385,699)
-----------
TOTAL INVESTMENT LOSS ........................... (104,464)
-----------
EXPENSES:
Investment advisory fees ........................ 99,452
Distribution fees ............................... 24,903
Registration fees ............................... 18,971
Shareholder communications expenses ............. 18,720
Shareholder services fees ....................... 16,687
Legal and audit fees ............................ 11,732
Custodian fees .................................. 8,302
Directors' fees ................................. 271
Interest expense ................................ 13,417
Miscellaneous expenses .......................... 2,610
-----------
TOTAL EXPENSES .................................. 215,065
-----------
NET INVESTMENT LOSS ............................. (319,529)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain on investments
and foreign currency transactions ............. 1,287,341
Net change in unrealized appreciation
on investments and foreign currency
transactions .................................. (1,672,211)
-----------
NET REALIZED AND UNREALIZED LOSS ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS .................................. (384,870)
-----------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS ............................... $ (704,399)
===========
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment loss $ (319,529) $ (216,886)
Net realized gain on investments and foreign currency transactions ... 1,287,341 1,762,262
Net change in unrealized appreciation on investments
and foreign currency transactions .................................. (1,672,211) 2,778,010
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... (704,399) 4,323,386
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
In excess of net investment income -- (33,793)
Net realized gain on investments ..................................... (851,088) (1,531,962)
----------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. (851,088) (1,565,755)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class AAA ............................................................ 1,108,162 7,509,096
Class A .............................................................. 5,010 --
----------- -----------
Net increase in net assets from capital share transactions ........... 1,113,172 7,509,096
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS ................................ (442,315) 10,266,727
NET ASSETS:
Beginning of period .................................................. 17,592,849 7,326,122
----------- -----------
End of period ........................................................ $17,150,534 $17,592,849
=========== ===========
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
THE GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
1. ORGANIZATION. The Gabelli Global Convertible Securities 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 to obtain a high rate of total return. The Fund commenced
investment operations on February 3, 1994.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange, quoted by the National Association of Securities
Dealers Automated Quotations, Inc. ("NASDAQ") or traded on foreign exchanges are
valued at the last sale price on that exchange as of the close of business on
the day the securities are being valued (if there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day, except for open short positions, which are
valued at the last asked price). All other portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest average of the bid and asked prices. Portfolio securities traded on more
than one national securities exchange or market are valued according to the
broadest and most representative market, as determined by Gabelli Funds, LLC
(the "Adviser"). Securities and assets for which market quotations are not
readily available are valued at their fair value as determined in good faith
under procedures established by and under the general supervision of the Board
of Directors. Short term debt securities with remaining maturities of 60 days or
less are valued at amortized cost, unless the Directors determine such does not
reflect the securities' fair value, in which case these securities will be
valued at their fair value as determined by the Directors. Debt instruments
having a maturity greater than 60 days are valued at the highest bid price
obtained from a dealer maintaining an active market in those securities. Options
are valued at the last sale price on the exchange on which they are listed. If
no sales of such options have taken place that day, they will be valued at the
mean between their closing bid and asked prices.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
primary government securities dealers recognized by the Federal Reserve Board
with member banks of the Federal Reserve System or with other brokers or dealers
that meet credit guidelines established by the Adviser and reviewed by the Board
of Directors. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
The Fund will always receive and maintain securities as collateral whose market
value, including accrued interest, will be at least equal to 100% of the dollar
amount invested by the Fund in each agreement. The Fund will make payment for
such securities only upon physical delivery or upon evidence of book entry
transfer of the collateral to the account of the custodian. To the extent that
any repurchase transaction exceeds one
13
<PAGE>
THE GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
--------------------------------------------------------------------------------
business day, the value of the collateral is marked-to-market on a daily basis
to maintain the adequacy of the collateral. If the seller defaults and the value
of the collateral declines or if bankruptcy proceedings are commenced with
respect to the seller of the security, realization of the collateral by the Fund
may be delayed or limited.
OPTIONS. The Fund may purchase or write call or put options on securities or
indices. As a writer of put options, the Fund receives a premium at the outset
and then bears the risk of unfavorable changes in the price of the financial
instrument underlying the option. The Fund would incur a loss if the price of
the underlying financial instrument decreases between the date the option is
written and the date on which the option is terminated. The Fund would realize a
gain, to the extent of the premium, if the price of the financial instrument
increases between those dates.
As a purchaser of put options, the Fund pays a premium for the right to sell to
the seller of the put option the underlying security at a specified price. The
seller of the put has the obligation to purchase the underlying security upon
exercise at the exercise price. If the price of the underlying security
declines, the Fund would realize a gain upon sale or exercise. If the price of
the underlying security increases, the Fund would realize a loss upon sale or at
expiration date, but only to the extent of the premium paid. For the six months
ended June 30, 2000 the Fund did not write options.
FUTURES CONTRACTS. The Fund may engage in futures contracts for the purpose of
hedging against changes in the value of its portfolio securities and in the
value of securities it intends to purchase. Upon entering into a futures
contract, the Fund is required to deposit with the broker an amount of cash or
cash equivalents equal to a certain percentage of the contract amount. This is
known as the "initial margin". Subsequent payments ("variation margin") are made
or received by the Fund each day, depending on the daily fluctuation of the
value of the contract. The daily changes in the contract are included in
unrealized gains or losses. The Fund recognizes a realized gain or loss when the
contract is closed. At June 30, 2000, there were no open futures contracts.
There are several risks in connection with the use of futures contracts as a
hedging device. The change in value of futures contracts primarily corresponds
with the value of their underlying instruments, which may not correlate with the
change in value of the hedged investments. In addition, there is the risk that
the Fund may not be able to enter into a closing transaction because of an
illiquid secondary market.
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,
14
<PAGE>
THE GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
--------------------------------------------------------------------------------
they also limit any potential gain/(loss) that might result should the value of
the currency increase. In addition, the Fund could be exposed to risks if the
counterparties to the contracts are unable to meet the terms of their contracts.
FOREIGN CURRENCY TRANSLATION. The books and records of the Fund are maintained
in United States (U.S.) dollars. Foreign currencies, investments and other
assets and liabilities are translated into U.S. dollars at the exchange rates
prevailing at the end of the period, and purchases and sales of investment
securities, income and expenses are translated at the exchange rate prevailing
on the respective dates of such transactions. Unrealized gains and losses, which
result from changes in foreign exchange rates and/or changes in market prices of
securities, have been included in unrealized appreciation/depreciation on
investments and foreign currency transactions. Net realized foreign currency
gains and losses resulting from changes in exchange rates include foreign
currency gains and losses between trade date and settlement date on investment
securities transactions, foreign currency transactions and the difference
between the amounts of interest and dividends recorded on the books of the Fund
and the amounts actually received. The portion of foreign currency gains and
losses related to fluctuation in exchange rates between the initial trade date
and subsequent sale trade date is included in realized gain/(loss) on
investments.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
Dividend income is recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders are recorded on the ex-dividend date. Income distributions and
capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Fund, timing differences and
differing characterization of distributions made by the Fund.
EXPENSES. Certain administrative expenses are common to, and allocated among,
the Portfolios. Such allocations are made on the basis of each Portfolio's
average net assets or other criteria directly affecting the expenses as
determined by the Adviser.
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.
15
<PAGE>
THE GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
--------------------------------------------------------------------------------
3. INVESTMENT ADVISORY AGREEMENT. The Fund has entered into an investment
advisory agreement (the "Advisory Agreement") with the Adviser which provides
that the Fund will pay the Adviser a fee, computed daily and paid monthly, at
the annual rate of 1.00% of the value of the Fund's average daily net assets. In
accordance with the Advisory Agreement, the Adviser provides a continuous
investment program for the Fund's portfolio, oversees the administration of all
aspects of the Fund's business and affairs and pays the compensation of all
Officers and Directors of the Fund who are its affiliates.
4. DISTRIBUTION PLAN. The Fund's Board of Directors has adopted a distribution
plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act. For the six months
ended June 30, 2000 the Fund incurred distribution costs payable to Gabelli &
Company, Inc., an affiliate of the Adviser, of $24,900 and $3 for Class AAA and
Class A Shares, respectively, 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 six months
ended June 30, 2000, other than short term securities, aggregated $10,597,184
and $9,963,572, respectively.
6. TRANSACTIONS WITH AFFILIATES. During the six months ended June 30, 2000, the
Fund paid brokerage commissions of $180 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 $203,000 of borrowings outstanding at June 30,
2000.
The average daily amount of borrowings outstanding within the six months ended
June 30, 2000 was $444,594, with a related weighted average interest rate of
6.88%. The maximum amount borrowed at any time during the six months ended June
30, 2000 was $2,840,000.
8. CAPITAL STOCK TRANSACTIONS. Transactions in shares of capital stock were as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31, 1999
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------- -----------
CLASS AAA CLASS AAA
-------------------------- --------------------------
<S> <C> <C> <C> <C>
Shares sold ...................................... 850,082 $12,427,636 939,175 $12,219,522
Shares issued upon reinvestment of dividends ..... 58,566 814,793 110,965 1,520,095
Shares redeemed .................................. (878,140) (12,134,267) (506,169) (6,230,521
-------- ----------- ------- ----------
Net increase ................................. 30,508 $ 1,108,162 543,971 $ 7,509,096
======== =========== ======= ===========
CLASS A (A)
--------------------------
Shares sold ...................................... 307 $ 4,886
Shares issued upon reinvestment of dividends ..... 9 124
-------- -----------
Net increase ................................. 316 $ 5,010
======== ===========
(a) From commencement of offering on March 1, 2000.
</TABLE>
16
<PAGE>
THE GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
--------------------------------------------------------------------------------
9. NEW SHARE CLASSES. The Board of Directors of the Fund approved a Rule 18f-3
Multi-Class Plan relating to the creation of three additional classes of shares
of the Fund - Class A Shares, Class B Shares and Class C Shares (the "New Share
Classes"). The existing class of shares was redesignated as Class AAA Shares. In
addition, the Board has also approved an Amended and Restated Distribution
Agreement, Rule 12b-1 plans for each of the New Share Classes and an Amended and
Restated Plan of Distribution for the existing class of shares (Class AAA
Shares). The New Share Classes were offered to the public as of March 1, 2000.
No Class B or Class C shares have been sold as of June 30, 2000. Class A shares
are subject to a maximum front-end sales charge of 5.75%. Class B shares are
subject to a contingent deferred sales charge (CDSC) upon redemption within six
years of purchase. The applicable CDSC is equal to a declining percentage of the
lesser of the net asset value per share at the date of original purchase or at
the date of redemption, based on the length of time held. Class C shares are
subject to a 1% CDSC for two years after purchase.
17
<PAGE>
<TABLE>
<CAPTION>
THE GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout each period:
INCOME FROM INVESTMENT OPERATIONS DISTRIBUTIONS
-------------------------------------------------------- ------------------------------------------------------
Net In Excess
Net Asset Net Realized and Total In Excess Net of Net
Period Value, Investment Unrealized from Net of Net Realized Realized
Ended Beginning Income Gain (Loss) on Investment Investment Investment Gain on Gain on
December 31 of Period (Loss) Investments Operations Income Income Investments Investments
----------- --------- ---------- -------------- ---------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS AAA
2000(a) $13.88 $(0.22) $0.15 $(0.07) -- -- $(0.60) --
1999 10.12 (0.18) 5.33 5.15 -- $(0.03) (1.36) --
1998 9.93 (0.12) 0.93 0.81 -- (0.01) (0.07) --
1997 10.18 0.11 0.17 0.28 $(0.14) -- (0.90) $(0.13)
1996 10.79 0.43 0.16 0.59 (0.43) -- (0.77) --
1995 9.93 0.39 0.86 1.25 (0.39) -- -- --
CLASS A
2000(b) 15.89 (0.22) (2.06) (2.28) -- -- (0.40) --
DISTRIBUTIONS RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
------------- -----------------------------------------------------------
Net
Net Asset Net Assets Investment Operating
Period Value, End of Income (Loss) Expenses to Portfolio
Ended Total End of Total Period to Average Average Net Turnover
December 31 Distributions Period Return+ (in 000's) Net Assets Assets (c)(d) Rate
----------- ------------- --------- ------- ----------- ------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS AAA
2000(a) $(0.60) $13.21 (0.7)% $17,147 (3.21)%(e) 2.16%(e) 51%
1999 (1.39) 13.88 51.1 17,593 (2.29) 2.44 151
1998 (0.08) 10.12 8.6 7,326 (1.00) 2.63 89
1997 (1.07) 9.39 2.8 9,375 1.17 2.48 100
1996 (1.20) 10.18 5.5 13,527 2.00 2.35 126
1995 (0.39) 10.79 12.6 15,742 2.90 2.41 152
CLASS A
2000(b) (0.40) 13.21 (14.3) 4 (3.21)(e) 2.16(e) 51
</TABLE>
--------------------------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
(a) For the period ended June 30, 2000; unaudited. (b) From commencement of
offering on March 1, 2000.
(c) The Fund incurred interest expense during the years ended December 31, 1999
and 1997. If interest expense had not been incurred, the ratios of operating
expenses to average net assets would have been 2.42%and 2.46%, respectively.
In addition, the ratio for the year ended December 31, 1997 does not include
a reduction of expenses for custodian fee credits. Including such credits,
the ratio would have been 2.47%.
(d) The Fund incurred interest expense during the six months ended June 30,
2000. If interest expense had not been incurred, the ratio of operating
expenses to average net assets would have been 2.03% for Class AAA and Class
A.
(e) Annualized.
See accompanying notes to financial statements.
18
<PAGE>
--------------------------------------------------------------------------------
GABELLI FAMILY OF FUNDS
--------------------------------------------------------------------------------
GABELLI ASSET FUND ________________________
Seeks to invest primarily in a diversified portfolio of common stocks selling at
significant discounts to their private market value. The Fund's primary
objective is growth of capital. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI GROWTH FUND _______________________
Seeks to invest primarily in large cap stocks believed to have favorable, yet
undervalued, prospects for earnings growth. The Fund's primary objective is
capital appreciation. (NO-LOAD)
PORTFOLIO MANAGER: HOWARD F. WARD, CFA
GABELLI WESTWOOD EQUITY FUND _____________
Seeks to invest primarily in the common stock of seasoned companies believed to
have proven records and above average historical earnings growth. The Fund's
primary objective is capital appreciation. (NO-LOAD)
PORTFOLIO MANAGER: SUSAN M. BYRNE
GABELLI SMALL CAP GROWTH FUND ____________
Seeks to invest primarily in common stock of smaller companies (market
capitalizations less than $500 million) believed to have rapid revenue and
earnings growth potential. The Fund's primary objective is capital appreciation.
(NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI BLUE CHIP VALUE FUND ______________
Seeks long-term growth of capital through investment primarily in the common
stocks of well-established, high quality companies that have market
capitalizations of greater than $5 billion.
(NO-LOAD) PORTFOLIO MANAGER: BARBARA MARCIN, CFA
GABELLI WESTWOOD SMALLCAP EQUITY FUND ___
Seeks to invest primarily in smaller capitalization equity securities - market
caps of $1 billion or less. The Fund's primary objective is long-term capital
appreciation. (NO-LOAD)
PORTFOLIO MANAGER: LYNDA CALKIN, CFA
GABELLI WESTWOOD INTERMEDIATE BOND FUND __
Seeks to invest in a diversified portfolio of bonds with various maturities. The
Fund's primary objective is total
return. (NO-LOAD)
PORTFOLIO MANAGER: PATRICIA FRAZE
GABELLI EQUITY INCOME FUND ________________
Seeks to invest primarily in equity securities with above market average yields.
The Fund pays quarterly dividends and seeks a high level of total return with an
emphasis on income. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI WESTWOOD BALANCED FUND __________
Seeks to invest in a balanced and diversified portfolio of stocks and bonds. The
Fund's primary objective is both capital appreciation and current income.
(NO-LOAD)
PORTFOLIO MANAGERS: SUSAN M. BYRNE & PATRICIA FRAZE
GABELLI WESTWOOD MIGHTY MITES (SERVICE MARK) FUND _____
Seeks to invest in micro-cap companies that have market capitalizations of $300
million or less. The Fund's primary objective is long-term capital appreciation.
(NO-LOAD)
TEAM MANAGED: MARIO J. GABELLI, CFA,
MARC J. GABELLI, LAURA K. LINEHAN AND
WALTER K. WALSH
GABELLI VALUE FUND ________________________
Seeks to invest in securities of companies believed to be undervalued. The
Fund's primary objective is long-term capital appreciation.
MAX. SALES CHARGE: 51/2%
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI UTILITIES FUND ______________________
Seeks to provide a high level of total return through a combination of capital
appreciation and current income. (NO-LOAD)
PORTFOLIO MANAGER: TIMOTHY O'BRIEN, CFA
GABELLI ABC FUND _________________________
Seeks to invest in securities with attractive opportunities for appreciation or
investment income. The Fund's primary objective is total return in various
market conditions without excessive risk of capital loss. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI MATHERS FUND _____________________
Seeks long-term capital appreciation in various market conditions without
excessive risk of capital loss. (NO-LOAD)
PORTFOLIO MANAGER: HENRY VAN DER EB, CFA
GABELLI U.S. TREASURY MONEY MARKET FUND ___
Seeks to invest exclusively in short-term U.S. Treasury securities. The Fund's
primary objective is to provide high current income consistent with the
preservation of principal and liquidity. (NO-LOAD)
PORTFOLIO MANAGER: JUDITH A. RANERI
GABELLI CASH MANAGEMENT SHARES OF
THE TREASURER'S FUND ______________________
Three money market portfolios designed to generate superior returns without
compromising portfolio safety. U.S. Treasury Money Market seeks to invest in
U.S. Treasury bills, notes and bonds. Tax Exempt Money Market seeks to invest in
municipal securities. Domestic Prime Money Market seeks to invest in prime
quality, domestic money market instruments. (NO-LOAD)
PORTFOLIO MANAGER: JUDITH A. RANERI
AN INVESTMENT IN THE ABOVE MONEY MARKET FUNDS IS NEITHER INSURED NOR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY GOVERNMENT AGENCY. ALTHOUGH
THE FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS.
GLOBAL SERIES
GABELLI GLOBAL TELECOMMUNICATIONS FUND
Seeks to invest in telecommunications companies throughout the world -
targeting undervalued companies with strong earnings and cash flow dynamics.
The Fund's primary objective is capital appreciation. (NO-LOAD) TEAM MANAGED:
MARIO J. GABELLI, CFA,
MARC J. GABELLI AND IVAN ARTEAGA, CFA
GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
Seeks to invest principally in bonds and preferred stocks which are
convertible into common stock of foreign and domestic companies. The Fund's
primary objective is total return through a combination of current income and
capital appreciation.
(NO-LOAD) PORTFOLIO MANAGER: HART WOODSON
GABELLI GLOBAL GROWTH FUND
Seeks capital appreciation through a disciplined investment program focusing
on the globalization and interactivity of the world's marketplace. The Fund
invests in companies at the forefront of accelerated growth. The Fund's
primary objective is capital appreciation. (NO-LOAD)
PORTFOLIO MANAGER: MARC J. GABELLI
GABELLI GLOBAL OPPORTUNITY FUND
Seeks to invest in common stock of companies which have rapid growth in
revenues and earnings and potential for above average capital appreciation or
are undervalued. The Fund's primary objective is capital appreciation.
(NO-LOAD)
PORTFOLIO MANAGERS: MARC J. GABELLI
AND CAESAR BRYAN
GABELLI GOLD FUND _________________________
Seeks to invest in a global portfolio of equity securities of gold mining and
related companies. The Fund's objective is long-term capital appreciation.
Investment in gold stocks is considered speculative and is affected by a variety
of world-wide economic, financial and political factors.
(NO-LOAD) PORTFOLIO MANAGER: CAESAR BRYAN
GABELLI INTERNATIONAL GROWTH FUND __________
Seeks to invest in the equity securities of foreign issuers with long-term
capital appreciation potential. The Fund offers investors global
diversification.
(NO-LOAD) PORTFOLIO MANAGER: CAESAR BRYAN
THE SIX FUNDS ABOVE INVEST IN FOREIGN SECURITIES WHICH INVOLVES RISKS NOT
ORDINARILY ASSOCIATED WITH INVESTMENTS IN DOMESTIC ISSUES, INCLUDING CURRENCY
FLUCTUATION, ECONOMIC AND POLITICAL RISKS. THE FUNDS LISTED ABOVE ARE
DISTRIBUTED BY GABELLI & COMPANY, INC.
--------------------------------------------------------------------------------
TO RECEIVE A PROSPECTUS, CALL 1-800-GABELLI (422-3554). THE PROSPECTUS
GIVES A MORE COMPLETE DESCRIPTION OF THE FUND, INCLUDING FEES AND EXPENSES.
READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
VISIT OUR WEBSITE AT:
WWW.GABELLI.COM
OR, CALL:
1-800-GABELLI
1-800-422-3554 [BULLET] 914-921-5100 [BULLET] FAX: 914-921-5118
[BULLET] [email protected]
ONE CORPORATE CENTER, RYE, NEW YORK 10580
<PAGE>
Gabelli Global Series Funds, Inc.
THE GABELLI GLOBAL 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
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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.
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GAB441Q200SR
[PHOTO OF MARIO J. GABELLI OMITTED]
THE
GABELLI
GLOBAL
CONVERTIBLE SECURITIES
FUND
SEMI-ANNUAL REPORT
JUNE 30, 2000
