[GRAPHIC OF FLAGS OMITTED]
GABELLI INTERNATIONAL GROWTH FUND, INC.
SEMI-ANNUAL REPORT - JUNE 30, 2000
[GRAPHIC OF 4 STARS OMITTED]
MORNINGSTAR RATED(TM) GABELLI INTERNATIONAL GROWTH FUND 4 STARS OVERALL AND
FOR THE THREE-YEAR PERIOD ENDED 06/30/00 AMONG 1148 INTERNATIONAL
EQUITY FUNDS, AND FOR THE FIVE-YEAR PERIOD ENDED 06/30/00 AMONG 701
INTERNATIONAL EQUITY FUNDS.
[PHOTO OF CAESAR BRYAN OMITTED]
CAESAR BRYAN
TO OUR SHAREHOLDERS,
The second quarter of 2000 was somewhat of a mirror image of the first
quarter. If the first quarter belonged to NASDAQ, the second quarter saw the
"revenge of the nerds", so to speak. Many sectors that had not participated in
the bull market during the past year performed well during the past few months,
while the high flyers came back to earth.
Having risen 12% in the first quarter, the NASDAQ Composite Index declined
13% during the second quarter. This reversal shook most overseas markets. Nearly
all stocks that performed well during the previous six months suffered badly
this quarter.
During the quarter, the Morgan Stanley Capital International EAFE Index
declined 3.9%, bringing its return for the six months ending June 30, 2000 to
(4.0)%. Japan, the largest market outside the U.S., performed particularly
poorly. The broad-based Topix index fell 9.6% during the quarter. In Europe,
performance was mixed. Within the Euro zone, Germany fell 9.1% while France
gained 2.7%. Outside the Euro zone, Europe's largest market, the U.K., declined
7.6%, bringing its six-month return to (12.2)%. In contrast, the Swiss market,
due to its heavy weighting in financial and health care stocks, managed to gain
6.8% during the second quarter.
For the most part, movements in the dollar did not heavily influence
returns in overseas markets. The yen weakened somewhat during the quarter, but
the euro actually strengthened slightly against the dollar. The exception was
the British pound, which weakened significantly against the dollar during the
quarter. The pound had been a very strong currency over the past few months,
particularly against the euro, and some weakness was expected and welcomed by
U.K. exporters.
With investors less willing to take risk, the markets of lesser-developed
countries did not do well during the second quarter. The Morgan Stanley emerging
markets index fell 10.8%.
--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Morningstar proprietary
ratings reflect historical risk adjusted performance as of June 30, 2000 and are
subject to change every month. Morningstar ratings are calculated from a Fund's
three, five and ten-year average annual returns in excess of 90-day T-Bill
returns with appropriate fee adjustments and a risk factor that reflects fund
performance below 90-day T-Bill returns. The top 10% of the funds in a broad
asset class receive five stars, the next 22.5% receive four stars, the next 35%
receive three stars, the next 22.5% receive two stars and the bottom 10% receive
one star.
<PAGE>
INVESTMENT RESULTS (CLASS AAA SHARES)(a)
--------------------------------------------------------------------------------
Quarter
-----------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
2000: Net Asset Value $24.34 $21.45 -- -- --
Total Return 6.7% (11.9)% -- -- --
--------------------------------------------------------------------------------
1999: Net Asset Value $15.94 $16.38 $17.40 $22.82 $22.82
Total Return 2.0% 2.8% 6.2% 36.9% 52.4%
--------------------------------------------------------------------------------
1998: Net Asset Value $17.03 $17.58 $14.74 $15.63 $15.63
Total Return 18.3% 3.2% (16.2)% 14.7% 17.4%
--------------------------------------------------------------------------------
1997: Net Asset Value $13.51 $14.67 $15.31 $14.40 $14.40
Total Return 0.7% 8.6% 4.4% (5.9)% 7.3%
--------------------------------------------------------------------------------
1996: Net Asset Value $11.71 $12.55 $12.53 $13.42 $13.42
Total Return 6.6% 7.2% (0.2)% 7.1% 22.2%
--------------------------------------------------------------------------------
1995: Net Asset Value -- -- $10.57 $10.98 $10.98
Total Return -- -- 5.7%(b) 3.9% 9.8%(b)
--------------------------------------------------------------------------------
-------------------------------------------------------------
Average Annual Returns (Class AAA Shares)
----------------------------------------
June 30, 2000 (a)
-----------------
1 Year ....................................... 36.71%
3 Year ....................................... 18.18%
Life of Fund (b) ............................. 19.31%
-------------------------------------------------------------
Dividend History
-----------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
----------------- -------------- ------------------
December 27, 1999 $0.970 $22.06
December 28, 1998 $1.260 $15.49
(a) Total returns and average annual returns reflect changes in share price and
reinvestment of dividends and are net of expenses for Class AAA Shares. The net
asset value of the Fund is reduced on the ex-dividend (payment) date by the
amount of the dividend paid. Of course, returns represent past performance and
do not guarantee future results. Investment returns and the principal value of
an investment will fluctuate. When shares are redeemed they may be worth more or
less than their original cost. (b) From commencement of investment operations on
June 30, 1995. Note: Investing in foreign securities involves risks not
ordinarily associated with investments in domestic issues, including currency
fluctuation, economic and political risks.
--------------------------------------------------------------------------------
INVESTMENT PERFORMANCE
For the second quarter ended June 30, 2000, The Gabelli International
Growth Fund (the "Fund") Class AAA Shares' net asset value declined 11.87%. The
Morgan Stanley Capital International EAFE Index of international markets and
Lipper International Fund Average declined 3.90% and 5.26%, respectively, over
the same period. The Morgan Stanley EAFE Index is an unmanaged indicator of
stock market performance, while the Lipper Average reflects the average
performance of mutual funds classified in this particular category. The Fund was
up 36.71% over the trailing twelve-month period. The Morgan Stanley EAFE Index
and Lipper International Fund Average rose 17.44% and 24.48%, respectively, over
the same twelve-month period.
2
<PAGE>
Since inception on June 30, 1995 through June 30, 2000, the Fund had a
cumulative return of 142.15%, which equates to an average annual return of
19.31%. The Morgan Stanley EAFE Index and Lipper International Fund Average
averaged 11.63% and 13.16%, respectively, over the same period.
MULTI-CLASS SHARES
Gabelli International Growth Fund, 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, Gabelli International
Growth Fund Class A Shares declined by 11.87% (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 $21.45.
OUR APPROACH
We purchase attractively valued companies that we believe have the
opportunity to grow earnings more rapidly than the average in that company's
local market. We pay close attention to a company's market position, management
and balance sheet, with particular emphasis on the ability of the company to
finance its growth. Generally, we value a company relative to its local market
but, where appropriate, will attempt to benefit from valuation discrepancies
between markets. Our primary focus is on security selection and not country
allocation, but the Fund will remain well diversified by sector and geography.
Country allocation is likely to reflect broad economic, financial and currency
trends as well as relative size of the market.
INTERNATIONAL ALLOCATION
The accompanying chart presents the Fund's holdings by geographic region
as of June 30, 2000. The geographic allocation will change based on current
global market conditions. Countries and/or regions represented in the chart and
below may or may not be included in the Fund's future portfolio.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
HOLDINGS BY GEOGRAPHIC REGION - 6/30/00
Other Europe 29.9%
Japan 20.3%
United Kingdom 21.8%
Switzerland 12.9%
France 10.2%
Australia 2.9%
United States 0.8%
South Africa 0.6%
Hong Kong 0.6%
COMMENTARY
As the old cliche goes, a week is a long time in politics. The same can
probably be said for investing. Three months ago, when we wrote our comments
about the first quarter, markets were fearful that economic growth was too
strong and interest rates would have to be raised significantly in order to
prevent a dangerous rise in the rate of inflation.
Both the Federal Reserve Board (the "Fed") and the European Central Bank
did raise short-term interest rates, but with minimal disruption to the U.S. and
European bond markets. Indeed, for the quarter, the U.S. ten-year government
bond yield was unchanged and the German ten-year government bond yield rose by
four basis points to 5.26%. Incidentally, Japanese bond yields were little
changed.
3
<PAGE>
Just as investors' fears about economic growth being too strong deepened,
the market received data suggesting that the economy is slowing. Now many
believe that the Fed will not need to raise interest rates further. Obviously,
we have no idea whether the Fed will raise rates, let alone when and by how
much. Maybe the next move will be down. However, the action of the last few
months provides further support for a few investment truths.
First, market psychology can shift on a dime, yet as long-term investors,
we cannot be over-influenced by short-term mood swings. Second, the consensus
can sometimes be wrong. Third, markets will find a way to correct excesses, most
often at an inconvenient moment.
At the start of the quarter, we began to add to sectors that have solid
growth prospects but which the market had largely ignored. These included
financials, pharmaceuticals and some consumer stocks.
These sectors play into a number of themes to which we remain committed.
Part and parcel of the restructuring that Europe is currently undergoing is a
requirement for individuals to plan for their own retirement, as opposed to
relying on the State. The prime beneficiary of this trend should be large
financial services companies, such as Skandia and Allianz.
We added to our pharmaceutical holdings as their valuations became more
attractive on an absolute and relative basis. This sector has excellent growth
prospects and the companies generate large amounts of free cash flow. There is
also the potential for further industry restructuring. The merger of Glaxo
Wellcome and SmithKline Beecham is likely to close in the current quarter. Other
companies, such as Roche, Novartis and AstraZeneca, are dismantling their life
sciences concept in favor of becoming pure pharmaceutical plays. These moves
should attract higher multiples.
There are fundamental issues for many consumer companies, such as pricing
power and volume growth. However, these concerns do not apply to all consumer
stocks and, when they do, management is tackling the problem. Many luxury goods
companies still offer growth at an attractive valuation. Portfolio holdings in
this sector include Richemont, Christian Dior and Swatch. Other consumer stocks,
such as Diageo and Altadis, are restructuring in order to become better, more
focused competitors. Many of these companies possess strong brands with high
market shares, solid margins and excellent free cash flow generating abilities.
INVESTMENT SCOREBOARD
For the most part, the Fund's health care and consumer stocks performed
best during the quarter. Sanofi-Synthelabo, Novartis and AstraZeneca appreciated
28%, 17% and 16%, respectively. Other winners included Furukawa Electric, which
rose 28% on the back of the worldwide popularity for optical fiber companies,
and DDI and KDD, two Japanese telecommunications companies that are due to
merge, each of which rose by 25%. Many of our Japanese holdings were among the
worst performers. These included Sony, Obic, Nikko Securities and Benesse.
Additionally, two of our European cable holdings, NTL and UnitedGlobalCom,
performed poorly.
There was an extremely wide divergence in the performance between
individual stocks, even within the same sectors, during the quarter. For
example, Philips Electronics appreciated 14% while Sony fell 31%. The fact that
Sony is a Japanese company does not sufficiently explain the situation, however,
because Fujitsu, another Japanese electronics company, actually did better than
Philips. Also (as mentioned above), DDI, the Japanese mobile communications
operator, rose 25% during the quarter, while Vodafone declined 25% during the
same period.
4
<PAGE>
LET'S TALK STOCKS
The following are stock specifics on selected holdings of our Fund.
Favorable earnings prospects do not necessarily translate into higher stock
prices, but they do express a positive trend which we believe will develop over
time. The share prices of the following holdings are stated in U.S. dollar
equivalent terms as of June 30, 2000.
ASTRAZENECA PLC (AZN.L - $46.68 - LONDON STOCK EXCHANGE; AZN.SS - $46.49 -
STOCKHOLM STOCK EXCHANGE; AZN - $46.50 - NYSE) is a leading global
pharmaceutical company. The merger of London-based Zeneca and Swedish-based
Astra created the current organization. The Company is best known for its highly
successful ulcer medicine commonly known as Losec. We believe AstraZeneca will
be successful in defending its franchise in the gastrointestinal segment. The
company also has strong positions in the cardiovascular, oncological and
respiratory treatment areas.
COMPAGNIE FINANCIERE RICHEMONT AG (RIFZ.S - $2,694.09 - ZURICH STOCK EXCHANGE)
is one of the world's leading luxury goods companies, with brand names such as
Cartier, Piaget, Montblanc, Karl Lagerfeld and Alfred Dunhill. The company also
has a major investment in tobacco with its significant stake in B.A.T. (BATS -
$6.68 - London Stock Exchange), the world's second largest tobacco company.
Adjusted for its investment in B.A.T., the market values its wholly owned luxury
goods business at a significant discount to other luxury goods producers.
FUJITSU LTD. (6702.T - $34.59 - TOKYO STOCK EXCHANGE) is one of Japan's leading
computer hardware and software companies, with sales of approximately $50
billion. The company also manufactures communications equipment and various
electronic devices. We expect further growth in Fujitsu's software and services
activities and the recovery in its manufacturing operations to continue.
NOVARTIS AG (NOVN.S - $1,583.96 - ZURICH STOCK EXCHANGE) is a Swiss-based
pharmaceutical and life sciences company. Novartis is the world's largest
pharmaceutical company in terms of sales and is also the largest global
agrochemical company. Novartis' pharmaceutical business represents roughly two
thirds of sales, with agribusiness comprising one quarter and the balance
belonging to the nutrition business. Novartis' principal products include
Sandimmune/Neoral, the organ transplant rejection drug, and Lescol, the
lipid-lowering agent.
PHILIPS ELECTRONICS NV (PHIL.LU - $47.16 - LUXEMBOURG STOCK EXCHANGE) is a
Netherlands-based company operating in consumer electronics, professional
products and systems, lighting, semiconductors, components, and IT services.
Philips also has significant interests in Taiwan Semiconductor, a major
semiconductor manufacturing company, and ASM Lithography, a semiconductor
capital equipment producer. Management has reorganized the company over the past
two years, resulting in improved growth prospects. We believe the market has not
yet fully recognized these changes and the stock remains attractively valued on
both an earnings growth basis and on a sum-of-the-parts basis.
VIVENDI (EX.PA - $88.27 - PARIS STOCK EXCHANGE) recently announced plans to
merge with Canal Plus, of France, and Seagram, of Canada. Vivendi has announced
plans to spin-off Vivendi Environment. At the completion of the merger, Vivendi
will have completed its transition from France's largest environmental services
company to a global communications company engaged in film, music and
communications. The group also owns 44% of Cegetel, France's second largest
telecommunications operator.
5
<PAGE>
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 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].
CONCLUSION
We believe the outlook for both Europe and Japan remains good. Growth is
picking up in both regions and we expect the restructuring process to continue.
This should involve governments playing lesser roles in the economy, and
corporations becoming more focused as well as building scale in their core
competencies. The likely result should be an improvement in profitability,
especially in Japan, and a continuance of the torrid pace of merger and
acquisition activity in Europe.
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 GIGRX. Please call us during the
business day for further information.
Sincerely,
/S/ SIGNATURE
CAESAR BRYAN
President and Portfolio Manager
July 14, 2000
--------------------------------------------------------------------------------
TOP TEN HOLDINGS
JUNE 30, 2000
-------------
Compagnie Financiere Richemont AG Vodafone AirTouch plc
Vivendi Fujitsu Ltd.
AstraZeneca plc Granada Group
Novartis AG Allianz AG
Philips Electronics NV Swiss Re
--------------------------------------------------------------------------------
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.
6
<PAGE>
GABELLI INTERNATIONAL GROWTH FUND, INC.
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2000 (UNAUDITED)
------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS -- 98.2%
AEROSPACE -- 1.2%
140,000 BAE SYSTEMS plc .............. $ 885,709 $ 872,756
----------- -----------
BROADCASTING -- 6.5%
9,000 Audiofina .................... 547,470 1,160,021
165,000 Granada Group plc ............ 1,439,808 1,647,766
11,000 Nippon Broadcasting
System Inc. ................. 657,475 677,035
25,575 NRJ Groupe+ .................. 241,087 1,245,304
----------- -----------
2,885,840 4,730,126
----------- -----------
BUILDING AND CONSTRUCTION -- 1.9%
75,000 CRH plc ...................... 1,136,317 1,353,358
----------- -----------
BUSINESS SERVICES -- 5.0%
7,833 Reuters Holdings plc, ADR .... 643,245 782,810
12,000 Secom Co. Ltd. ............... 832,977 876,573
22,000 Vivendi ...................... 1,796,133 1,941,865
----------- -----------
3,272,355 3,601,248
----------- -----------
CABLE -- 2.0%
14,968 NTL Inc.+ .................... 1,045,064 896,209
12,000 UnitedGlobalCom Inc., Cl. A+ . 847,544 561,000
----------- -----------
1,892,608 1,457,209
----------- -----------
COMMUNICATIONS EQUIPMENT -- 2.6%
40,000 Furukawa Electric Co. Ltd. ... 658,542 835,101
18,000 Nokia Corp., Cl. A, ADR ...... 939,581 898,875
20,000 Tecnomen Oyj+ ................ 159,565 171,855
----------- -----------
1,757,688 1,905,831
----------- -----------
COMPUTER SOFTWARE AND SERVICES -- 1.9%
1 Net One Systems Co. Ltd. ..... 14,275 11,499
2,700 Obic Co. Ltd. ................ 646,696 1,221,547
10,000 Scandinavia Online AB+ ....... 132,914 149,677
----------- -----------
793,885 1,382,723
----------- -----------
CONSUMER PRODUCTS -- 9.1%
62,000 Altadis SA ................... 909,853 952,439
5,000 Christian Dior SA ............ 968,486 1,133,765
810 Compagnie Financiere
Richemont AG, Cl. A ......... 1,459,178 2,182,211
150 Givaudan+ .................... 47,967 45,652
7,000 Nintendo Co. Ltd. ............ 824,545 1,221,924
850 Swatch Group AG .............. 660,834 1,080,639
----------- -----------
4,870,863 6,616,630
----------- -----------
EDUCATIONAL SERVICES -- 0.6%
6,400 Benesse Corp. ................ 638,633 443,376
----------- -----------
MARKET
SHARES COST VALUE
------ ---- ------
ELECTRONICS -- 7.5%
51,000 Fujitsu Ltd. ................. $ 1,634,416 $ 1,764,174
40,000 Philips Electronics NV ....... 1,803,159 1,886,585
2,900 Rohm Co. Ltd. ................ 927,555 847,354
10,000 Sony Corp. ................... 922,037 933,126
----------- -----------
5,287,167 5,431,239
----------- -----------
ENERGY AND UTILITIES -- 3.1%
115,000 BP Amoco plc ................. 974,249 1,103,201
7,444 TotalFina Elf ................ 1,071,483 1,141,409
----------- -----------
2,045,732 2,244,610
----------- -----------
ENTERTAINMENT -- 1.3%
50 Avex Inc. .................... 6,151 5,184
125,000 Publishing & Broadcasting Ltd. 848,529 960,618
----------- -----------
854,680 965,802
----------- -----------
EQUIPMENT AND SUPPLIES -- 2.2%
31,000 THK Co. Ltd. ................. 998,500 1,566,144
----------- -----------
FINANCIAL SERVICES -- 10.9%
20,000 Aegon NV ..................... 716,850 711,670
5,500 Credit Suisse Group .......... 1,074,998 1,094,033
14,000 Invik & Co. AB, Cl. B ........ 1,036,830 1,450,958
110,000 Irish Life & Permanent
plc, London ................. 863,607 927,908
3,000 Jafco Co. Ltd. ............... 734,349 489,184
95,000 Nikko Securities Co. Ltd. .... 1,217,427 940,195
48,000 Prudential Corp. plc ......... 731,486 703,047
800 Swiss Re ..................... 1,504,251 1,630,551
----------- -----------
7,879,798 7,947,546
----------- -----------
FINANCIAL SERVICES: BANKS -- 3.3%
105,005 Bank of Ireland .............. 735,432 659,168
85,000 Bank of Scotland ............. 873,289 808,336
16,000 Societe Generale, Cl. A ...... 968,475 962,388
----------- -----------
2,577,196 2,429,892
----------- -----------
FINANCIAL SERVICES: INSURANCE -- 5.2%
4,500 Allianz AG ................... 1,615,795 1,632,622
86,000 RAS SpA ...................... 842,800 954,100
46,000 Skandia Forsakrings AB ....... 174,411 1,215,331
----------- -----------
2,633,006 3,802,053
----------- -----------
FOOD AND BEVERAGE -- 3.7%
125,000 Diageo plc ................... 1,067,170 1,121,585
530,000 Parmalat Finanziaria SpA ..... 612,049 738,785
20,000 Unilever NV, New York ........ 1,012,863 860,000
----------- -----------
2,692,082 2,720,370
----------- -----------
See accompanying notes to financial statements.
7
<PAGE>
GABELLI INTERNATIONAL GROWTH FUND, INC.
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 2000 (UNAUDITED)
------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
HEALTH CARE -- 12.3%
12,000 AstraZeneca plc, ADR ......... $ 503,682 $ 558,000
15,500 AstraZeneca plc, London ...... 612,555 723,526
14,126 AstraZeneca plc, Stockholm ... 544,796 656,725
36,000 Glaxo Wellcome plc ........... 834,134 1,049,668
1,200 Novartis AG .................. 1,638,290 1,900,757
150 Roche Holding AG ............. 1,550,929 1,460,140
21,000 Sanofi-Synthelabo SA ......... 914,635 1,000,482
75,000 SmithKline Beecham plc ....... 1,056,669 981,623
9,000 Takeda Chemical
Industries Ltd. ............. 518,379 590,414
----------- -----------
8,174,069 8,921,335
----------- -----------
METALS AND MINING -- 0.9%
1,500 Anglogold Ltd. ............... 72,282 61,238
5,000 Anglogold Ltd., ADR .......... 113,375 102,813
31,081 Antofagasta Holdings plc ..... 179,741 166,246
37,500 Harmony Gold
Mining Co. Ltd. ............. 181,434 207,259
17,500 Harmony Gold
Mining Co. Ltd., ADR ........ 103,646 97,344
----------- -----------
650,478 634,900
----------- -----------
PUBLISHING -- 5.3%
111,573 Independent News &
Media plc, Dublin ........... 327,982 410,118
111,573 Independent News &
Media plc, Dublin,
New Shares .................. 327,982 410,118
10,000 Independent News &
Media plc, London ........... 42,126 35,331
10,000 Independent News &
Media plc, London,
New Shares .................. 42,126 35,331
82,037 News Corp. Ltd. .............. 628,556 1,128,431
35,000 Pearson plc .................. 577,186 1,112,128
39,000 Schibsted ASA ................ 740,052 722,854
----------- -----------
2,686,010 3,854,311
----------- -----------
REAL ESTATE -- 0.6%
40,000 Cheung Kong (Holdings) Ltd. .. 447,743 442,563
----------- -----------
TELECOMMUNICATIONS -- 8.4%
49,000 Cable & Wireless plc ......... 787,049 829,648
30 DDI Corp. .................... 342,766 288,421
30,000 HPY Holding - HTF
Holding Oyj Abp, Cl. A ...... 1,434,633 1,374,839
MARKET
SHARES COST VALUE
------ ---- ------
30 Japan Telecom Co. Ltd. ....... $ 897,301 $ 1,300,721
7,000 KDD Corp. .................... 799,282 705,971
12,000 KPN NV ....................... 325,174 536,760
300,000 Olivetti SpA+ ................ 1,246,216 1,085,550
----------- -----------
5,832,421 6,121,910
----------- -----------
TRANSPORTATION -- 0.2%
15,637 MIF Ltd.+ .................... 188,903 143,091
----------- -----------
WIRELESS COMMUNICATIONS -- 2.5%
226,376 Vodafone AirTouch plc ........ 641,867 914,554
21,675 Vodafone AirTouch plc, ADR ... 462,047 898,158
----------- -----------
1,103,914 1,812,712
----------- -----------
TOTAL COMMON STOCKS .......... 62,185,597 71,401,735
----------- -----------
PREFERRED STOCKS -- 1.7%
BROADCASTING -- 1.7%
10,000 ProSieben Media AG, Pfd. ..... 723,259 1,250,722
----------- -----------
TOTAL
INVESTMENTS -- 99.9% ......... $62,908,856 72,652,457
===========
OTHER ASSETS AND
LIABILITIES (NET) -- 0.1% .................. 60,107
-----------
NET ASSETS -- 100.0%
(3,389,488 shares outstanding) ............ $72,712,564
===========
------------------------
For Federal tax purposes:
Aggregate cost ............................. $62,908,856
===========
Gross unrealized appreciation .............. $12,027,492
Gross unrealized depreciation .............. (2,283,891)
-----------
Net unrealized appreciation ................ $ 9,743,601
===========
------------------------
+ Non-income producing security.
ADR - American Depositary Receipt.
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
-------------------------- ------ -----------
Europe ........................ 74.8% $54,337,920
Japan ......................... 20.3% 14,717,941
Asia/Pacific Rim .............. 3.5% 2,566,943
North America ................. 0.8% 561,000
South Africa .................. 0.6% 468,653
----- -----------
100.0% $72,652,457
===== ===========
See accompanying notes to financial statements.
8
<PAGE>
GABELLI INTERNATIONAL GROWTH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS:
Investments, at value (Cost $62,908,856) ............ $72,652,457
Cash and foreign currency, at value
(Cost $1,452,927) ................................. 1,462,047
Receivable for Fund shares sold ..................... 36,026
Dividends, interest and reclaims receivable ......... 78,574
-----------
TOTAL ASSETS ........................................ 74,229,104
-----------
LIABILITIES:
Payable for investments purchased ................... 1,395,268
Payable for investment advisory fees ................ 59,545
Payable for distribution fees ....................... 14,886
Payable to custodian ................................ 8,400
Other accrued expenses .............................. 38,441
-----------
TOTAL LIABILITIES ................................... 1,516,540
===========
NET ASSETS applicable to 3,389,488
shares outstanding ($0.001 per share) ............. $72,712,564
===========
NET ASSETS CONSIST OF:
Capital stock, at par value ......................... $ 3,389
Additional paid-in capital .......................... 58,857,231
Accumulated net investment loss ..................... (112,162)
Accumulated net realized gain on investments
and foreign currency transactions ................. 4,215,966
Net unrealized appreciation on investments
and foreign currency transactions ................. 9,748,140
-----------
TOTAL NET ASSETS .................................... $72,712,564
===========
SHARES OF CAPITAL STOCK:
CLASS AAA:
Net Asset Value, offering and redemption price
per share (3,389,300 shares outstanding) ......... $21.45
======
CLASS A:
Net Asset Value and redemption price
per share (188 shares outstanding) ............... $21.45
======
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) .......................... $22.76
======
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends (net of foreign taxes of $40,538) ......... $ 347,805
Interest ............................................ 73,099
-----------
TOTAL INVESTMENT INCOME ............................. 420,904
-----------
EXPENSES:
Investment advisory fees ............................ 311,392
Distribution fees ................................... 77,848
Custodian fees ...................................... 37,174
Registration fees ................................... 33,555
Shareholder services fees ........................... 25,346
Legal and audit fees ................................ 15,132
Shareholder communications expenses ................. 13,701
Organizational expense .............................. 9,604
Directors' fees ..................................... 3,249
Interest expense .................................... 3,397
Miscellaneous expenses .............................. 2,668
-----------
TOTAL EXPENSES ...................................... 533,066
-----------
NET INVESTMENT LOSS ................................. (112,162)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain on investments
and foreign currency transactions ................. 4,238,283
Net change in unrealized appreciation
on investments and foreign currency
transactions ...................................... (8,054,375)
-----------
NET REALIZED AND UNREALIZED LOSS ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS ...................................... (3,816,092)
-----------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS ................................... $(3,928,254)
===========
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment loss ...................................................... $ (112,162) $ (196,435)
Net realized gain on investments and foreign currency transactions ....... 4,238,283 2,185,222
Net change in unrealized appreciation on investments
and foreign currency transactions ...................................... (8,054,375) 14,084,470
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .......... (3,928,254) 16,073,257
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
In excess of net investment income ....................................... -- (205,615)
Net realized gain on investments ......................................... -- (1,788,353)
----------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ...................................... -- (1,993,968)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class AAA ................................................................ 27,752,482 8,013,353
Class A .................................................................. 4,886 --
----------- -----------
Net increase in net assets from capital share transactions ............... 27,757,368 8,013,353
----------- -----------
NET INCREASE IN NET ASSETS ............................................... 23,829,114 22,092,642
NET ASSETS:
Beginning of period ...................................................... 48,883,450 26,790,808
----------- -----------
End of period ............................................................ $72,712,564 $48,883,450
=========== ===========
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
GABELLI INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
1. ORGANIZATION. The Gabelli International Growth Fund, Inc. (the "Fund") was
organized on May 25, 1994 as a Maryland corporation. The Fund is a diversified,
open-end management investment company registered under the Investment Company
Act of 1940, as amended (the "1940 Act"). The Fund's primary objective is long
term capital appreciation. The Fund commenced investment operations on June
30,1995.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange, quoted by the National Association of Securities
Dealers Automated Quotations, Inc. ("NASDAQ") or traded on foreign exchanges are
valued at the last sale price on that exchange as of the close of business on
the day the securities are being valued (if there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day, except for open short positions, which are
valued at the last asked price). All other portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest average of the bid and asked prices. Portfolio securities traded on more
than one national securities exchange or market are valued according to the
broadest and most representative market, as determined by Gabelli Funds, LLC
(the "Adviser"). Securities and assets for which market quotations are not
readily available are valued at their fair value as determined in good faith
under procedures established by and under the general supervision of the Board
of Directors. Short term debt securities with remaining maturities of 60 days or
less are valued at amortized cost, unless the Directors determine such does not
reflect the securities' fair value, in which case these securities will be
valued at their fair value as determined by the Directors. Debt instruments
having a maturity greater than 60 days are valued at the highest bid price
obtained from a dealer maintaining an active market in those securities. Options
are valued at the last sale price on the exchange on which they are listed. If
no sales of such options have taken place that day, they will be valued at the
mean between their closing bid and asked prices.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
primary government securities dealers recognized by the Federal Reserve Board,
with member banks of the Federal Reserve System or with other brokers or dealers
that meet credit guidelines established by the Adviser and reviewed by the Board
of Directors. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
The Fund will always receive and maintain securities as collateral whose market
value, including accrued interest, will be at least equal to 100% of the dollar
amount invested by the Fund in each agreement. The Fund will make payment for
such securities only upon physical delivery or upon evidence of book entry
transfer of the collateral to the account of the custodian. To the extent that
any repurchase transaction exceeds one business day, the value of the collateral
is marked-to-market on a daily basis to maintain the adequacy of the collateral.
If the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are
10
<PAGE>
GABELLI INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
--------------------------------------------------------------------------------
commenced with respect to the seller of the security, realization of the
collateral by the Fund may be delayed or limited.
FORWARD FOREIGN EXCHANGE CONTRACTS. The Fund may engage in forward foreign
exchange contracts for hedging a specific transaction with respect to either the
currency in which the transaction is denominated or another currency as deemed
appropriate by the Adviser. Forward foreign exchange contracts are valued at the
forward rate and are marked-to-market daily. The change in market value is
included in unrealized appreciation/depreciation on investments and foreign
currency transactions. When the contract is closed, the Fund records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate fluctuations in
the underlying prices of the Fund's portfolio securities, but it does establish
a rate of exchange that can be achieved in the future. Although forward foreign
exchange contracts limit the risk of loss due to a decline in the value of the
hedged currency, they also limit any potential gain/(loss) that might result
should the value of the currency increase. In addition, the Fund could be
exposed to risks if the counter parties 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.
11
<PAGE>
GABELLI INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
--------------------------------------------------------------------------------
PROVISION FOR INCOME TAXES. The Fund intends to continue to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code of
1986, as amended. As a result, a Federal income tax provision is not required.
Dividends and interest from non-U.S. sources received by the Fund are generally
subject to non-U.S. withholding taxes at rates ranging up to 30%. Such
withholding taxes may be reduced or eliminated under the terms of applicable
U.S. income tax treaties, and the Fund intends to undertake any procedural steps
required to claim the benefits of such treaties. If the value of more than 50%
of the Fund's total assets at the close of any taxable year consists of stocks
or securities of non-U.S. corporations, the Fund is permitted and may elect to
treat any non-U.S. taxes paid by it as paid by its shareholders.
3. INVESTMENT ADVISORY AGREEMENT. The Fund has entered into an investment
advisory agreement (the "Advisory Agreement") with the Adviser which provides
that the Fund will pay the Adviser a fee, computed daily and paid monthly, at
the annual rate of 1.00% of the value of the Fund's average daily net assets. In
accordance with the Advisory Agreement, the Adviser provides a continuous
investment program for the Fund's portfolio, oversees the administration of all
aspects of the Fund's business and affairs and pays the compensation of all
Officers and Directors of the Fund who are its affiliates.
4. DISTRIBUTION PLAN. The Fund's Board of Directors has adopted a distribution
plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act. For the six months
ended June 30, 2000, the Fund incurred distribution costs payable to Gabelli &
Company, Inc., an affiliate of the Adviser, of $77,845 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. ORGANIZATIONAL EXPENSES. The organizational expenses of the Fund are being
amortized on a straight-line basis over a period of 60 months.
6. PORTFOLIO SECURITIES. Purchases and sales of securities for the six months
ended June 30, 2000, other than short term securities, aggregated $53,640,658
and $25,262,733, respectively.
7. LINE OF CREDIT. The Fund has access to an unsecured line of credit up to
$25,000,000 from the custodian for temporary borrowing purposes. Borrowings
under this arrangement bear interest at 0.75% above the Federal Funds rate on
outstanding balances. There were no borrowings outstanding at June 30, 2000.
The average daily amount of borrowings outstanding within the six months ended
June 30, 2000, was $5,495, with a related weighted average interest rate of
6.25%. The maximum amount borrowed at any time during the six months ended June
30, 2000 was $500,000.
12
<PAGE>
GABELLI INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
--------------------------------------------------------------------------------
8. CAPITAL STOCK TRANSACTIONS. Transactions in shares of capital stock were as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31, 1999
----------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ ---------- -----------
CLASS AAA CLASS AAA
----------------------- ------------------------
<S> <C> <C> <C> <C>
Shares sold ............................................... 3,582,818 $ 79,754,644 2,150,702 $37,651,819
Shares issued upon reinvestment of dividends .............. -- 87,158 1,922,544
Shares redeemed ........................................... (2,335,699) (52,002,162) (1,809,612) (31,561,010)
--------- ------------ ---------- -----------
Net increase ........................................... 1,247,119 $ 27,752,482 428,248 $ 8,013,353
========= ============ ========== ===========
CLASS A (A)
-----------------------
Shares sold ............................................... 188 $ 4,886
========= ============
</TABLE>
(a) From commencement of offering of Class A Shares on March 9, 2000.
9. NEW SHARE CLASSES. The Board of Directors of the Fund approved a Rule 18f-3
Multi-Class Plan relating to the creation of three additional classes of shares
of the Fund -- Class A Shares, Class B Shares and Class C Shares (the "New Share
Classes"). The existing class of shares was redesignated as Class AAA Shares. In
addition, the Board has also approved an Amended and Restated Distribution
Agreement, Rule 12b-1 plans for each of the New Share Classes and an Amended and
Restated Plan of Distribution for the existing class of shares (Class AAA
Shares). The New Share Classes were first offered on March 9, 2000. No Class B
or Class C shares have been sold as of June 30, 2000.
13
<PAGE>
THE GABELLI INTERNATIONAL GROWTH FUND, INC.
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
INCOME
FROM INVESTMENT OPERATIONS DISTRIBUTIONS
------------------------------------------------- --------------------------------------
Net
Net Asset Realized and Total Net
Period Value, Net Unrealized from Net Realized
Ended Beginning Investment Gain (Loss) on Investment Investment Gain on Total
December 31 of Period Loss Investments Operations Income Investments Distributions
----------- --------- ---------- -------------- ---------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS AAA
2000(a) $22.82 $(0.04) $(1.33) $(1.37) -- -- --
1999 15.63 (0.09) 8.25 8.16 $(0.10) $(0.87) $(0.97)
1998 14.40 (0.02) 2.51 2.49 (0.03) (1.23) (1.26)
1997 13.42 (0.13) 1.11 0.98 -- -- --
1996 10.98 (0.15)(d) 2.59 2.44 -- -- --
1995(b) 10.00 (0.03)(d) 1.01 0.98 -- -- --
CLASS A
2000(a)(c) 25.94 (0.04) (4.45) (4.49) -- -- --
</TABLE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
---------------------------------------------------------------------
Net
Net Asset Net Assets Investment Operating
Period Value, End of Loss to Expenses to Portfolio
Ended End of Total Period Average Net Average Net Turnover
December 31 Period Return+ (in 000's) Assets(f) Assets (f)(g) Rate
----------- --------- ------- ---------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C>
CLASS AAA
2000(a) $21.45 (6.0)% $72,709 (0.36)%(e) 1.71%(e) 43%
1999 22.82 52.4 48,883 (0.62) 1.90 74
1998 15.63 17.4 26,791 (0.14) 1.98 52
1997 14.40 7.3 18,133 (0.82) 2.46 63
1996 13.42 22.2 12,815 (1.21) 2.72 55
1995(b) 10.98 9.8 2,096 (1.19)(e) 2.75(e) 30
CLASS A
2000(a)(c) 21.45 (17.3) 4 (0.36)(e) 1.71(e) 43
</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 investment operations on June 30, 1995.
(c) From commencement of offering of Class A Shares on March 9, 2000.
(d) Based on average month-end shares outstanding.
(e) Annualized.
(f) The Fund incurred interest expense for the years ended December 31, 1999,
1998 and 1997. If interest expense had not been incurred, the ratios of
operating expenses to average net assets would have been 1.88%, 1.96% and
2.44%, respectively. During the periods ended December 31, 1996 and 1995,
the Adviser voluntarily reimbursed certain expenses. Before reimbursement,
the ratios of operating expenses and net investment loss to average net
assets would have been 3.62% and (2.12)% for 1996 and 8.10% and (6.54)% for
1995 (annualized), respectively.
(g) The Fund incurred interest expense for 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 1.70% for Class AAA and Class A.
See accompanying notes to financial statements.
14
<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 INTERNATIONAL GROWTH FUND, INC.
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 Werner J. Roeder, MD
CHAIRMAN AND CHIEF MEDICAL DIRECTOR
INVESTMENT OFFICER LAWRENCE HOSPITAL
GABELLI ASSET MANAGEMENT INC.
Anthony J. Colavita Anthonie C. van Ekris
ATTORNEY-AT-LAW MANAGING DIRECTOR
ANTHONY J. COLAVITA, P.C. BALMAC INTERNATIONAL, INC.
Karl Otto Pohl
FORMER PRESIDENT
DEUTSCHE BUNDESBANK
OFFICERS AND PORTFOLIO MANAGERS
Caesar Bryan Bruce N. Alpert
PRESIDENT AND VICE PRESIDENT
PORTFOLIO MANAGER AND TREASURER
James E. McKee
SECRETARY
DISTRIBUTOR
Gabelli & Company, Inc.
CUSTODIAN, TRANSFER AGENT AND DIVIDEND AGENT
State Street Bank and Trust Company
LEGAL COUNSEL
Willkie Farr & Gallagher
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This report is submitted for the general information of the shareholders of
Gabelli International Growth Fund, Inc. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective prospectus.
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GAB009Q200SR
[PHOTO OF MARIO J. GABELLI OMITTED]
GABELLI
INTERNATIONAL
GROWTH
FUND,
INC.
SEMI-ANNUAL REPORT
JUNE 30, 2000
