[GRAPHIC OF FLAGS OMITTED]
[PHOTO OF CAESAR BRYAN OMITTED]
CAESAR BRYAN
GABELLI INTERNATIONAL GROWTH FUND, INC.
THIRD QUARTER REPORT - SEPTEMBER 30, 2000
[GRAPHIC OF 4 STARS OMITTED]
MORNINGSTAR RATED(TRADEMARK) GABELLI INTERNATIONAL GROWTH FUND 4 STARS
OVERALL AND FOR THE THREE-YEAR PERIOD ENDED 09/30/00 AMONG 1175 INTERNATIONAL
EQUITY FUNDS, AND FOR THE FIVE-YEAR PERIOD ENDED 09/30/00 AMONG
730 INTERNATIONAL EQUITY FUNDS.
TO OUR SHAREHOLDERS,
The third quarter of 2000 was not very profitable for those investing
outside the United States. For the most part, this was due to the continued
strength of the U.S. dollar accompanied by the weakness of the Euro. In local
currency terms, many European markets actually appreciated, but due to the
weakness of the Euro, dollar-based investors suffered losses. For example, the
Dow Jones Stoxx Index of leading European companies was slightly up during the
quarter in local currency terms, but translated into dollars the Index fell by
7.38%.
In dollar terms, only three markets rose during the quarter, none of which
are particularly large centers of investment: Norway rose by 4.2%, Denmark by
5.5% and Ireland appreciated by 7.5%. Most of the larger European markets
declined sharply, including the U.K. by 2.2%, France by 11.1%, Germany by 9.3%,
Italy by 11.2%, and Switzerland by 6.8%. None of the Asian markets that we
invest in appreciated during the quarter. The Nikkei 225 Index declined by 11.3%
and the Hong Kong Index fell by a modest 3.25%. Even Australia declined by
10.1%. No solace could be found in the emerging markets either, as the Morgan
Stanley Capital International (MSCI) Emerging Markets Index dropped by 13.0%.
--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Morningstar proprietary
ratings reflect historical risk adjusted performance as of September 30, 2000
and are subject to change every month. Morningstar ratings are calculated from a
Fund's three, five and ten-year average annual returns in excess of 90-day
T-Bill returns with appropriate fee adjustments and a risk factor that reflects
fund performance below 90-day T-Bill returns. The top 10% of the funds in a
broad asset class receive five stars, the next 22.5% receive four stars, the
next 35% receive three stars, the next 22.5% receive two stars and the bottom
10% receive one star.
<PAGE>
INVESTMENT RESULTS (CLASS AAA SHARES) (a)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Quarter
--------------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
<S> <C> <C> <C> <C> <C>
2000: Net Asset Value ................... $24.34 $21.45 $20.07 -- --
Total Return ...................... 6.7% (11.9)% (6.4)% -- --
-------------------------------------------------------------------------------------------------------------
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)
-------------------------------------------------------------------------------------------------------------
</TABLE>
----------------------------------------------------------
Average Annual Returns (Class AAA Shares)
September 30, 2000 (a)
----------------------
1 Year ........................................ 20.42%
5 Year ........................................ 16.47%
Life of Fund (b) .............................. 16.82%
----------------------------------------------------------
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 third quarter ended September 30, 2000, the Gabelli International
Growth Fund's Class AAA Shares ("the Fund") net asset value declined 6.43%. The
Morgan Stanley Capital International EAFE Index of international markets and
Lipper International Fund Average declined 8.01% and 7.52%, 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 20.42% over the trailing twelve-month period. The Morgan Stanley EAFE Index
and Lipper International Fund Average rose 3.42% and 10.77%, respectively, over
the same twelve-month period.
2
<PAGE>
For the five-year period ended September 30, the Fund returned 16.47%
annually versus average annual returns of 8.88% and 10.38% for the Morgan
Stanley EAFE Index and the Lipper International Growth Fund Average,
respectively. Since inception on June 30, 1995 through September 30, 2000, the
Fund had a cumulative total return of 126.57%, which equates to an average
annual total return of 16.82%.
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 third quarter ended September 30, 2000, the Gabelli
International Growth Fund Class A Shares declined by 6.39% (excluding the effect
of the 5.75% front-end sales charge on the Class A Shares). (Class B and Class C
Shares have not been issued as of September 30, 2000). The Class A Shares ended
the third quarter with a net asset value of $20.08.
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 September 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]
HOLDINGS BY GEOGRAPHIC REGION - 9/30/00
EDGAR REPRESENTATION OF DATE POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
OTHER EUROPE 27.4%
UNITED KINGDOM 22.8%
JAPAN 18.0%
SWITZERLAND 14.5%
FRANCE 11.4%
AUSTRALIA 2.9%
HONG KONG 2.1%
UNITED STATES 0.5%
SOUTH AFRICA 0.4%
3
<PAGE>
COMMENTARY
Equity market participants are always on the lookout for things to fret
about, and recently they have not been disappointed. The persistent weakness of
the Euro has been a major disappointment for international investors. If the
strengthening of the dollar had occurred a few years ago, prior to the
introduction of the Euro, it would probably not have caused such widespread
consternation. The weakness of the Euro is thought to be the result of
significant capital flows out of the Euro zone and into the U.S. This reflects
the desire of Euro zone companies to acquire U.S. assets. Needless to say, when
it rains it pours. Every mistake by European Central Bank representatives has
been seized upon by the market, and thus has driven the Euro even lower.
Investors have also been unnerved by the increase in the price of oil.
Tensions in the Middle East and a damaged U.S. destroyer add to the feelings of
uncertainty. Interestingly, in an era of less government intervention and a
laissez-faire attitude towards markets, both the Euro and oil prices were the
subjects of government intervention. On September 22, all the major central
banks intervened to support the Euro, and its price rose to $0.90 against the
dollar. However, since then the Euro has fallen to a new low relative to the
dollar. The President, by Executive Order, also announced the sale of part of
the Strategic Oil Reserve. This was done to prevent a shortage of heating oil
this winter, but the move was not successful in lowering crude oil prices.
Aside from the price of oil and the sinking Euro, some signs of financial
stress have surfaced. The difference between government bond yields and the
yield on lower quality corporate bonds, as well as emerging market debt, have
widened considerably. Furthermore, some emerging market stock indices have
almost fallen to levels last seen during the Russian debt crisis of 1998. Is
there a silver lining to these storm clouds? We believe there is. First, bond
yields are falling, which suggests that the world economy is slowing. Indeed, if
the economy is in fact slowing, we are closer to a point where short-term
interest rates can be reduced. Second, although we do not know how low the Euro
can fall, we expect the currency to recover and reflect good economic
fundamentals in Europe. And lastly, while both Europe and Japan have been
adversely impacted by higher energy costs, we have probably seen the high in oil
prices.
The pace of consolidation has not slowed and corporate merger and
acquisition activity is expected to remain at high levels. Also, economic reform
continues with the French, German and Italian governments proposing significant
tax reform packages. Looking ahead, the weak Euro has improved Europe's
competitive position and we expect reasonable corporate earnings growth during
2001.
We believe that the Japanese economy is in recovery mode. Higher corporate
profitability has led to increased capital spending, which in turn is beginning
to feed through to better consumer confidence. Japan appears to be recovering
from its lost decade. This year, non-financial corporate profits will exceed
financial corporate profits for the first time since 1989. The Nikkei peaked at
40,000 in December 1989, compared to the current level of around 15,000. Some
multiple contraction! Our optimism for Japan is largely based on the positive
outlook for corporate earnings. Although the Bank of Japan has abandoned its
zero interest rate policy, Japanese interest rates still remain low.
4
<PAGE>
INVESTMENT SCOREBOARD
During the third quarter, the best performing sectors were the financial,
consumer, energy and pharmaceuticals, while the telecommunications and
technology sectors lagged behind. This is reflected in the Fund's winners and
losers during the quarter. Our top three performing stocks were in the financial
services industry: Bank of Ireland, RAS, and Irish Life and Permanent
appreciated 26%, 18.5%, and 17%, respectively. Otherwise, Swatch Group,
AstraZeneca and Reuters all rose more than 10%. Our losers were mainly Japanese
telecommunications stocks. Japan Telecom and DDI, competitors of Japan's
incumbent telephone company NTT, both declined by over 30%. Fujitsu and THK also
performed poorly.
In contrast to the second quarter, only a few changes were made to the
portfolio during the third quarter. Four of the five new purchases were made in
the Far East, and the other in Europe. In Japan, we purchased a position in
Capcom, a leading video game software company that is developing new sources of
distribution and therefore revenue. We also purchased Stanley Electric, which
has the growth characteristics of an electronics company but is valued as an
auto parts supplier, and Fujisoft, a software company. Otherwise, in the Far
East we purchased Swire Pacific, a leading Hong Kong based conglomerate that
controls Cathay Pacific Airways. In Europe, we purchased a holding in Aventis,
the German-French pharmaceutical and life sciences company.
We sold our positions in Olivetti, KPN, Furukawa and Antofagasta Holdings.
The high price of radio spectrum for Third Generation Mobile Services caused us
to become more cautious on the outlook for Olivetti, the holding company for
Telecom Italia and KPN. Furukawa and Antofagasta reached our target price and we
sold the securities. Looking ahead, the portfolio remains well diversified with
leading companies trading on defensible valuations. Our emphasis remains on
Europe and Japan, and our largest exposure is to the financial, pharmaceutical,
media and consumer sectors.
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 September 30, 2000.
ALLIANZ AG (ALVG.F - $330.47 - FRANKFURT STOCK EXCHANGE) provides many insurance
and reinsurance products including property, casualty, life and health
insurance. Allianz operates in over fifty countries through its subsidiaries and
affiliates. The company owns brands such as AGF in France and RAS is Italy.
Allianz controls significant stakes in a number of leading financial companies
in Germany and should be at the center of the expected corporate reorganization
there, following the implementation of the recently enacted tax reform package
which eliminates corporate capital gains taxes.
5
<PAGE>
ASTRAZENECA PLC (AZN.L - $52.40 - LONDON STOCK EXCHANGE; AZN.SS - $52.42 -
STOCKHOLM STOCK EXCHANGE; AZN - $52.5625 - NYSE) is a leading global
pharmaceutical company. AstraZeneca 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, oncology and
respiratory treatment areas.
COMPAGNIE FINANCIERE RICHEMONT AG (RIFZ.S - $3005.60 - 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 investment in B.A.T., the
world's second largest tobacco company. Adjusted for its stake in B.A.T., the
market values its wholly owned luxury goods business at a significant discount
to other luxury goods producers.
NIKKO SECURITIES CO. LTD. (8603.T - $8.88 - TOKYO) is one of Japan's leading
securities firms and investment banks. Nikko has strong capital ties to
CitiGroup. This formerly retail-oriented firm is just beginning to focus on
other high-growth areas such as underwriting, through Nikko and Salomon Smith
Barney, and principal trading.
NOVARTIS AG (NOVN.S - $1533.17 - ZURICH STOCK EXCHANGE) is the 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. The company recently acquired Wesley Jessen to enhance its
Ciba Vision unit. Novartis also maintains a strong drug pipeline in a continued
effort to bring new drugs to market.
PHILIPS ELECTRONICS NV (PHIL.LU - $43.00 - 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.
SWATCH GROUP AG (UHRZN.S - $1446.39 - ZURICH STOCK EXCHANGE) is the world's
largest manufacturer of finished watches. The Swatch Group offers watches in
every price and market category from high priced luxury watches to moderately
priced basic watches. The company generated over $1.9 billion in sales in 1999.
Swatch is also involved in the research and development of state-of-the-art
microelectronic products and technologies as well as services such as providing
official timing at sporting events.
6
<PAGE>
SWISS RE (RUKN.SW - $1909.24 - ZURICH STOCK EXCHANGE) is one of the world's
largest reinsurance companies, with gross premium income of approximately $15
billion in 1999. The life business contributed 30% of total premium income
following Swiss Re's acquisition of U.S.-based Life Re Corp. in 1999. Life
insurance is a growth market and reinsurance companies actually benefit from
consolidation in the life insurance sector. The company expects an improvement
in the non-life insurance segment following promising signs during the past
business cycle. Swiss Re has a consistent track record, as 1999 was the
sixteenth consecutive year of double-digit increases in earnings per share.
TOTALFINA ELF (TOTXF - $146.31 - NYSE) is a leading international oil and gas
company. The company operates in more than 100 countries and spans all
activities from oil and gas exploration to the transport, marketing and refining
of oil and gas products. The company was formed by the acquisition of Petrofina
by Total SA in 1999, and then by an exchange offer for Elf Aquitaine shares in
September 1999. In addition to oil and gas-related goods and services,
approximately 20% of the group's sales come from its chemical business.
VIVENDI (EX.PA - $74.30 - PARIS STOCK EXCHANGE) recently announced plans to
merge with Canal Plus, of France, and Seagram, of Canada. Vivendi has also
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.
MINIMUM INITIAL INVESTMENT - $1,000
The Fund's minimum initial investment for regular accounts is $1,000.
There are no subsequent investment minimums. No initial minimum is required for
those establishing an Automatic Investment Plan. Additionally, the Fund and
other Gabelli Funds are available through the no-transaction fee programs at
many major brokerage firms.
7
<PAGE>
WWW.GABELLI.COM
You can now visit us on the Internet. Our home page at
http://www.gabelli.com contains information about Gabelli Asset Management Inc.,
the Gabelli Mutual Funds, IRAs, 401(k)s, quarterly reports, closing prices and
other current news. You can send us e-mail at [email protected].
IN 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 and 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
October 16, 2000
------------------------------------------------------------------
TOP TEN HOLDINGS
SEPTEMBER 30, 2000
------------------
AstraZeneca plc Allianz AG
Compagnie Financiere Richemont AG Vivendi
Novartis AG Swatch Group AG
Swiss Re TotalFina Elf
Philips Electronics NV Nikko Securities Co. Ltd.
------------------------------------------------------------------
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>
GABELLI INTERNATIONAL GROWTH FUND, INC.
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MARKET
SHARES VALUE
------ -----
COMMON STOCKS -- 92.9%
AEROSPACE -- 0.9%
125,000 BAE Systems plc .................................. $ 674,566
----------
BROADCASTING -- 3.6%
9,000 Audiofina ........................................ 975,257
13,000 Nippon Broadcasting System Inc. .................. 724,227
25,575 NRJ Groupe+ ...................................... 1,006,534
----------
2,706,018
----------
BUILDING AND CONSTRUCTION -- 1.6%
75,000 CRH plc .......................................... 1,193,922
----------
BUSINESS SERVICES -- 4.6%
8,833 Reuters Holdings plc, ADR ........................ 992,608
12,000 Secom Co. Ltd. ................................... 965,019
20,000 Vivendi .......................................... 1,486,005
----------
3,443,632
----------
CABLE -- 1.4%
14,968 NTL Inc.+ ........................................ 693,205
12,000 UnitedGlobalCom Inc., Cl. A+ ..................... 360,000
----------
1,053,205
----------
COMMUNICATIONS EQUIPMENT -- 1.0%
18,000 Nokia Corp., Cl. A, ADR .......................... 716,625
----------
COMPUTER SOFTWARE AND SERVICES -- 3.0%
26,000 Capcom Co. Ltd. .................................. 1,008,144
4,500 FujiSoft ABC Inc. ................................ 308,579
2,700 Obic Co. Ltd. .................................... 961,966
----------
2,278,689
----------
CONSUMER PRODUCTS -- 9.5%
62,000 Altadis SA ....................................... 894,515
20,000 Christian Dior SA ................................ 1,077,442
810 Compagnie Financiere Richemont AG, Cl. A ......... 2,434,536
7,000 Nintendo Co. Ltd. ................................ 1,278,086
1,000 Swatch Group AG .................................. 1,446,391
----------
7,130,970
----------
DIVERSIFIED INDUSTRIAL -- 0.7%
90,000 Swire Pacific Ltd., Cl. A ........................ 560,993
----------
EDUCATIONAL SERVICES -- 0.5%
6,400 Benesse Corp. .................................... 384,971
----------
ELECTRONICS -- 5.9%
30,000 Fujitsu Ltd. ..................................... 696,835
38,800 Philips Electronics NV ........................... 1,669,793
2,200 Rohm Co. Ltd. .................................... 602,832
12,000 Sony Corp. ....................................... 1,217,102
20,000 Stanley Electronic Co. Ltd. ...................... 242,088
----------
4,428,650
----------
MARKET
SHARES VALUE
------ -----
ENERGY AND UTILITIES -- 3.6%
145,000 BP Amoco plc ..................................... $1,290,583
9,444 TotalFina Elf .................................... 1,381,715
----------
2,672,298
----------
ENTERTAINMENT -- 2.8%
124,526 Granada Compass plc+ ............................. 1,165,422
125,000 Publishing & Broadcasting Ltd. ................... 907,113
----------
2,072,535
----------
EQUIPMENT AND SUPPLIES -- 0.8%
16,000 THK Co. Ltd. ..................................... 621,877
----------
FINANCIAL SERVICES -- 11.3%
25,000 Aegon NV ......................................... 943,092
7,000 Credit Suisse Group .............................. 1,308,116
14,000 Invik & Co. AB, Cl. B ............................ 1,299,282
110,000 Irish Life & Permanent plc, London ............... 1,093,720
150,000 Nikko Securities Co. Ltd. ........................ 1,332,593
58,000 Prudential plc ................................... 791,500
900 Swiss Re ......................................... 1,718,312
----------
8,486,615
----------
FINANCIAL SERVICES: BANKS -- 4.3%
160,005 Bank of Ireland .................................. 1,281,324
110,000 Bank of Scotland ................................. 967,678
18,000 Societe Generale, Cl. A .......................... 1,006,230
----------
3,255,232
----------
FINANCIAL SERVICES: INSURANCE -- 4.8%
4,500 Allianz AG ....................................... 1,487,108
100,000 RAS SpA .......................................... 1,314,814
41,000 Skandia Forsakrings AB ........................... 812,934
----------
3,614,856
----------
FOOD AND BEVERAGE -- 4.2%
145,000 Diageo plc ....................................... 1,295,942
630,000 Parmalat Finanziaria SpA ......................... 920,061
20,000 Unilever NV, New York ............................ 965,000
----------
3,181,003
----------
HEALTH CARE -- 14.7%
12,000 AstraZeneca plc, ADR ............................. 630,750
20,500 AstraZeneca plc, London .......................... 1,074,160
14,126 AstraZeneca plc, Stockholm ....................... 740,540
13,000 Aventis SA ....................................... 975,080
41,000 Glaxo Wellcome plc ............................... 1,241,467
1,350 Novartis AG ...................................... 2,069,785
150 Roche Holding AG ................................. 1,319,109
21,000 Sanofi-Synthelabo SA ............................. 1,128,534
75,000 SmithKline Beecham plc ........................... 1,027,373
13,000 Takeda Chemical Industries Ltd. .................. 858,967
----------
11,065,765
----------
9
<PAGE>
GABELLI INTERNATIONAL GROWTH FUND, INC.
PORTFOLIO OF INVESTMENTS (CONTINUED) -- SEPTEMBER 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MARKET
SHARES VALUE
------ -----
COMMON STOCKS (CONTINUED)
METALS AND MINING -- 0.4%
37,500 Harmony Gold Mining Co. Ltd. ..................... $ 190,589
17,500 Harmony Gold Mining Co. Ltd., ADR ................ 89,688
----------
280,277
----------
PUBLISHING -- 5.3%
243,146 Independent News & Media plc, Dublin ............. 890,417
82,037 News Corp. Ltd. .................................. 1,155,127
44,545 Pearson plc ...................................... 1,237,505
39,000 Schibsted ASA .................................... 685,199
----------
3,968,248
----------
REAL ESTATE -- 1.3%
78,000 Cheung Kong (Holdings) Ltd. ...................... 942,876
----------
TELECOMMUNICATIONS -- 4.3%
49,000 Cable & Wireless plc ............................. 699,109
30 DDI Corp. ........................................ 197,113
27,000 HPY Holding - HTF Holding Oyj Abp, Cl. A ......... 964,694
30 Japan Telecom Co. Ltd. ........................... 866,186
7,000 KDD Corp. ........................................ 499,381
----------
3,226,483
----------
TRANSPORTATION -- 0.2%
15,637 MIF Ltd.+ ........................................ 159,326
----------
MARKET
SHARES VALUE
------ -----
WIRELESS COMMUNICATIONS -- 2.2%
226,376 Vodafone Group plc ............................... $ 845,110
21,675 Vodafone Group plc, ADR .......................... 801,975
-----------
1,647,085
-----------
TOTAL COMMON STOCKS 69,766,717
-----------
PREFERRED STOCKS -- 1.5%
BROADCASTING -- 1.5%
10,000 ProSieben Media AG, Pfd. ......................... 1,145,388
-----------
TOTAL INVESTMENTS -- 94.4%
(Cost $65,956,371) .............................. 70,912,105
OTHER ASSETS AND
LIABILITIES (NET) -- 5.6% ....................... 4,202,463
-----------
NET ASSETS -- 100.0%
(3,741,763 shares outstanding) .................. $75,114,568
===========
------------------------
+ Non-income producing security.
ADR - American Depositary Receipt.
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
-------------------------- ------ -------------
North America ............... 0.5% $ 360,000
Europe ...................... 76.1% 53,939,754
South Africa ................ 0.4% 280,277
Asia/Pacific Rim ............ 5.0% 3,566,109
Japan ....................... 18.0% 12,765,965
----- -----------
100.0% $70,912,105
====== ===========
10
<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.
--------------------------------------------------------------------------------
GAB009Q300SR
[PHOTO OF MARIO GABELLI OMITTED]
GABELLI
INTERNATIONAL
GROWTH
FUND,
INC.
THIRD QUARTER REPORT
SEPTEMBER 30, 2000