[Graphic of flags omitted]
GABELLI INTERNATIONAL GROWTH FUND, INC.
FIRST QUARTER REPORT - MARCH 31, 2000
[Graphic of 4 stars omitted]
MORNINGSTAR RATED(TM) GABELLI INTERNATIONAL GROWTH
FUND 4 STARS OVERALL AND FOR THE THREE-YEAR PERIOD ENDED
03/31/00 AMONG 1124 INTERNATIONAL EQUITY FUNDS.
[PHOTO OF CAESAR BRYAN OMITTED]
CAESAR BRYAN
TO OUR SHAREHOLDERS,
Not surprisingly, most equity markets marked time during the first three
months of 2000. The fourth quarter was a tough act to follow but international
markets, for the most part, avoided a New Year hangover. Both of the largest
markets outside the United States, namely Japan and the United Kingdom, declined
by a small amount during the quarter. Their losses, no doubt, would have been
greater had it not been for the stellar performance of the Nasdaq Composite
Index, which powered ahead by a startling 12.4% during the first quarter
following its strong performance at the end of last year.
Europe produced the usual mixed bag. Sweden rose by 12.3%, lead by the
performance of the telecommunications equipment supplier, L.M. Erricson. In
contrast, Belgium fell by 17.6%. Germany rose 4.3%, France was flat and
Switzerland fell by 5.2%. As for the rest of the world, Australia lost 7.8%,
Hong Kong gained 2.5% and Latin America was the best of the emerging market
regions. The dollar was roughly flat against the euro. In summary, the first
quarter belonged to the Nasdaq stocks.
INVESTMENT PERFORMANCE
For the first quarter ended March 31, 2000, The Gabelli International
Growth Fund's (the "Fund") total return was 6.66%. The Morgan Stanley Capital
International EAFE Index of international markets and Lipper International Fund
Average had returns of (0.05)% and 0.73% 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 an impressive 59.41%
over the trailing-twelve month period. The Morgan Stanley EAFE Index and Lipper
International Fund Average rose 25.40% and 39.77%, respectively, over the same
twelve-month period.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Morningstar proprietary
ratings reflect historical risk adjusted performance as of March 31, 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 (a)
- --------------------------------------------------------------------------------
Quarter
----------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
2000: Net Asset Value $24.34 -- -- -- --
Total Return 6.7% -- -- -- --
- -------------------------------------------------------------------------------
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)
- -------------------------------------------------------------------------------
Dividend History
- -------------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
- ----------------- -------------- ------------------
December 27, 1999 $0.970 $22.06
December 28, 1998 $1.260 $15.49
- ----------------------------------------------------
Average Annual Returns - March 31, 2000 (a)
-------------------------------------------
1 Year .................................... 59.41%
3 Year .................................... 26.70%
Life of Fund (b) .......................... 23.66%
- ----------------------------------------------------
(a) Total returns and average annual returns reflect changes in share price and
reinvestment of dividends and are net of expenses. The net asset value of the
Fund is reduced on the ex-dividend (payment) date by the amount of the dividend
paid. Of course, returns represent past performance and do not guarantee future
results. Investment returns and the principal value of an investment will
fluctuate. When shares are redeemed they may be worth more or less than their
original cost. (b) From commencement of investment operations on 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.
- --------------------------------------------------------------------------------
For the three-year period ended March 31, 2000, the Fund's total return
averaged 26.70% annually versus average annual total returns of 16.63% and
18.02% for the Morgan Stanley EAFE Index and Lipper International Fund Average,
respectively. Since inception on June 30, 1995 through March 31, 2000, the Fund
had a cumulative total return of 174.77%, which equates to an average annual
total return of 23.66%.
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
2
<PAGE>
consultants. For the month ended March 31, 2000, The Gabelli International
Growth Fund Class A Shares declined by 3.14% (Class B and Class C Shares have
not been issued as of March 31, 2000). The Class A Shares ended the quarter with
a net asset value of $24.34.
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 March 31, 2000. The geographic allocation will change based on current
global market conditions. Countries and/or regions represented in the chart and
below may or may not be included in the Fund's future portfolio.
[Graphic omitted]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
HOLDINGS BY GEOGRAPHIC REGION - 3/31/00
- ---------------------------------------
Japan 25.5%
Other Europe 33.3%
United Kingdom 18.7%
Switzerland 7.3%
France 7.8%
Canada 1.1%
Australia 2.8%
Cash 1.9%
United States 0.9%
South Africa 0.7%
COMMENTARY
As we suggested in the Fund's annual report, 1999's performance is
unlikely to be repeated this year. Overall, a positive return of 6.66% for the
quarter was better than could reasonably have been expected.
For a number of reasons the investment environment has become more
challenging. First, stocks have had a good run in most international markets.
This is especially so for companies involved in many of the growth sectors of
the economy. These, of course, are the sectors to which the Fund is attracted.
On the other hand, slower growth sectors of the market have lagged badly.
Therefore, some rotation from the winners to the losers can be expected and has
already occurred. As a consequence, we have recently added to the Fund's
pharmaceutical and financial services holdings, which are both attractively
valued and have not performed well during the past year.
Second, the Federal Reserve Board and other central banks, including the
European Central Bank, are raising interest rates. Higher interest rates are
generally not positive for equity markets. However, if higher interest rates
slow the economy and prevent inflation from rising, equity markets should not be
too adversely affected.
3
<PAGE>
Japan remains the exception to this. Short term interest rates in Japan
remain effectively at zero and the ten-year government bond yields less than 2%.
The authorities have stated that interest rates in Japan will remain at low
levels until a self-sustaining economic recovery takes hold. Recent economic
statistics suggest that a turnaround is near. Corporate investment has revived
and the consumer, dormant for so long, is beginning to stir. This nascent
consumer activity is based upon a rise in wages that actually had fallen
significantly during the past two years. A decline in wages is a highly unusual
occurrence in a developed economy.
The Fund's holdings in Japan have been concentrated in non-manufacturing
sectors such as broadcasting, telecommunications and information software, all
of which had performed well through the beginning of February. Since then, the
share prices of many of these companies have fallen dramatically, largely due to
what we believe is the "Softbank and Hikari Tsushin effect". These two stocks
became the darlings of investors in Japan during the second half of 1999. As the
stocks appreciated in value, more investors got sucked in. As the stock prices
continued to climb, the more other investors, fearful of being left behind,
climbed aboard. Softbank's share price went from (Y)40,000 in October to
(Y)198,000 on February 15, 2000. At around that time, a well-known analyst put a
price target of (Y)400,000 on the shares. Good call? No. The current price is
back to about (Y)40,000 again. Hikari Tsushin's price decline has been even more
dramatic. The problem for us was that on the way down, Softbank and Hikari
Tsushin kept falling "limit down" with no trades taking place. As a consequence,
traders and investors had to sell other securities in the same broad sector to
raise cash. When this process ends, we expect our investments to recover. Many
of the companies in which we invest have a proprietary product, and are growing
at rates over 20% and trade on reasonable multiples of earnings. We believe that
we have suffered collateral damage. Incidentally, the Fund did own Softbank,
which has a portfolio of equity and venture capital investments, when it was
trading at a discount to its investments. We sold the shares at around (Y)20,000
in the spring of 1999, obviously a little early.
Looking ahead, we expect the portfolio to remain concentrated in the
European markets. We believe these markets should provide attractive returns as
the European economy becomes more competitive following the introduction of the
euro. We anticipate many industries continuing their consolidation, including
telecommunications and media. We believe the takeover of Mannesmann by Vodafone
is only the beginning. Two recent media deals have validated the high valuations
accorded to media properties in Europe. Here again, we expect further
transactions that will benefit our portfolio holdings.
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 March 31, 2000.
ALLIANZ AG (ALVG.F - $407.44 - 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.
4
<PAGE>
Allianz controls significant stakes in a number of leading financial companies
in Germany and will be at the center of any reorganization of corporate Germany.
AUDIOFINA (AUDK.LU - $123.05 - LUXEMBOURG STOCK EXCHANGE) is a Luxembourg-based
European entertainment company. The company holds 49.85% of CLT-UFA, which owns
22 television channels with 120 million daily viewers and 18 radio stations with
25 million daily listeners. CLT-UFA also holds the broadcasting and marketing
rights to numerous European sports teams. The recent agreement merging Pearson
plc's television assets with CLT-UFA will strengthen the company's position
globally.
CABLE & WIRELESS PLC (CWP - $56.00 - NYSE) is a United Kingdom-based provider of
global telecommunications network services. Major subsidiaries include Hong Kong
Telecommunications (HKT - $25.75 - NYSE) (54% owned); the publicly traded,
U.K.-based company, Cable & Wireless Communications (CWZ - $85.00 - NYSE) (53%
owned), which is the largest cable system operator in the U.K.; and Cable &
Wireless Optus in Australia. CWZ owns 100% of Mercury Communications, the second
largest provider of telecommunications services in Britain, and is a majority
stakeholder in Bell Cable Media, Nynex CableComms and Videotron Holdings plc. In
August, the company agreed to sell Cable & Wireless Communications' consumer
business to NTL Inc. (NTLI - $92.8125 - Nasdaq) for 8 billion pounds, and will
retain its data assets including Mercury Communications. In late February,
Pacific Century Cyberworks (1186 - $2.34 - Hong Kong Stock Exchange) offered to
acquire Cable & Wireless HKT. Hong Kong Telecom is the dominant
telecommunications service provider in Hong Kong. Cable & Wireless has
dramatically expanded its global Internet presence with its September 1998
acquisition of Internet MCI for $1.75 billion and its recently announced
acquisition of eight Internet service providers in Europe.
COMPAGNIE FINANCIERE RICHEMONT AG (RIFZ.S - $2,541.58 - ZURICH STOCK EXCHANGE)
is one of the world's leading luxury goods companies with such brand names 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 RIFZ.S's wholly owned luxury goods business at a significant
discount to other luxury goods producers.
GRANADA GROUP PLC (GAA.L - $10.71 - LONDON STOCK EXCHANGE) is a dominant media
and hospitality company in the U.K. The company is focusing its efforts on
building leading brands that offer a full range of products and services in
their markets. Granada operates Ondigital with its partner Carlton
Communications and Granada Sky Broadcasting with its partner BSkyB. These pay
television initiatives complement Granada's programming expertise, positioning
the company to take advantage of the growth in the pay television sector.
INVIK & CO. (INVIKA - $144.89 - STOCKHOLM STOCK EXCHANGE) is a holding company
based in Sweden. The company currently trades at a discount to its underlying
assets. Nearly all of Invik's investments are in other publicly traded
companies. The most important investment is Netcom, which is a full service
telecommunications company based in Sweden. Other investments include Kinnevik
and MTG. Management has a successful record of building shareholder value.
NINTENDO CO. LTD. (7974.T - $175.78 - TOKYO STOCK EXCHANGE) is best known for
its hand-held game machine called Game Boy. Nintendo is expected to soon
introduce its next generation Game Boy which is likely to
5
<PAGE>
have interactive capabilities. In addition, the company is also expected to
introduce a replacement for the Nintendo 64 system to be called Dolphin.
Nintendo is the leading electronic games company and has a very strong balance
sheet with a large amount of net cash.
NOKIA CORP. (NOK - $217.25 - NYSE) is the world's leading mobile phone supplier
as well as a developer and manufacturer of fixed and cellular networks and a
provider of related customer services. The company is benefiting from a growing
global cellular market and is also working to shape the mobile Internet through
partnerships with leading software companies.
NRJ SA (NRJ.PA - $742.10 - PARIS STOCK EXCHANGE), based in Paris, is a major
force in the European radio industry. The company was founded in 1981 and
currently owns and operates one of the leading French radio networks, the NRJ
network. NRJ also owns a majority of the Nostalgie Network in France and manages
the Cherie FM and Rire and Chanson networks. The company has been an active
acquirer of radio networks outside of France. Today, it has operations in
Germany, Sweden, Finland, Norway, Belgium, Switzerland, Austria and Denmark. In
2000, the company announced a restructuring and merger with Group Sonopar, which
owns 42% of NRJ, that will consolidate the ownership of the stations currently
managed by NRJ, including Group Sonopar owned networks Cherie FM and Rire and
Chanson.
NTT MOBILE COMMUNICATION NETWORK INC. (9437.T - $40,999.17 - TOKYO STOCK
EXCHANGE) is Japan's leading mobile communications provider. The company
provides cellular service, paging service, satellite mobile communications, and
the Personal Handyphone System ("PHS") mobile computing platform. NTT continues
to benefit from the growing trend of mobile data transmission as its I-Mode
system gains popularity. NTT Mobile Communications is now well known as NTT
DoCoMo in Japan.
OBIC CO. LTD. (4684.T - $701.17 - TOKYO STOCK EXCHANGE) provides computer system
integration, office automation, consultation, and system support services for
small and medium size companies. The company also trades, sells, leases and
maintains computer, peripheral and related systems in addition to developing
customized software and network systems. Obic has sales ties with Fujitsu,
Mitsubishi Electric, Hewlett-Packard, and IBM and is also well positioned to
benefit from proprietary software systems.
PEARSON PLC (PSON.L - $34.73 - LONDON STOCK EXCHANGE) is a leading global
publisher with many strong brands. The company has tripled the size of its
educational publishing unit through the Simon & Schuster acquisition as well as
seen its Financial Times Group flourish both in print and electronically.
Pearson will continue to grow as the company positions itself ahead of the
trends that are shaping the industry. The company recently merged its television
assets with CLT-UFA, Europe's largest over the air broadcaster, in exchange for
a 22% interest in Audiofina.
ROCHE HOLDING AG (ROCZG.S - $10,864.14 - ZURICH STOCK EXCHANGE) is primarily a
pharmaceutical company that also operates in vitamins and fine chemicals,
diagnostics, and flavors and fragrances. Pharmaceuticals make up approximately
sixty percent of sales, vitamins and fine chemicals comprise approximately
fifteen percent, diagnostics roughly nineteen percent and the balance is the
flavors and fragrances business. Roche's pharmaceutical business should benefit
from its strong pipeline as well as additional synergies from the Boehringer
Mannheim acquisition.
6
<PAGE>
TELECOM ITALIA MOBILE SPA (TIM.MI - $12.2758 - MILAN STOCK EXCHANGE), is the
leading mobile communications provider in Italy, one of the most highly
penetrated markets in the world, with more than 18 million subscribers. The
company has seen good response to its initial wireless data application products
including short messaging services. The company began trading as a public
company in July 1998 following a carve-out by its parent Telecom Italia (TIT.MI
- - $14.9378 - Milan Stock Exchange), the national provider of wired local and
long distance service in Italy. Telecom Italia Mobile continues to succeed in a
stable competitive environment that includes two established competitors,
Omnitel and Wind, as well as a new emerging competitor. The Italian government
will award additional licenses designated UMTS licenses in the near future.
These will provide existing operators the opportunity to acquire additional
capacity for the provision of high bandwidth services and create an opportunity
for new competitive entry.
VIVENDI (EX - $115.38 - PARIS STOCK EXCHANGE) is a Paris based company which was
originally involved in the utility business. Cash flow from running municipal
water and waste operations has been reinvested in media and telephony
operations. Its telephony business is conducted through Cegetel and SFR in
France. In the media sector, Vivendi owns Havas, a leading publisher, and
significant equity stakes in Europe's two leading pay television
companies--Canal Plus and BspyB. More recently, the company has undertaken a
number of Internet initiatives, including a joint venture with Vodafone AirTouch
to develop a multi access portal (MAP).
VODAFONE AIRTOUCH PLC (VOD - $55.5625 - NYSE; VOD - $5.5499 - LONDON STOCK
EXCHANGE) is the world's largest mobile telecommunications company with more
than 28 million subscribers in 23 countries. The defining event in Vodaphone's
history was the completion of its acquisition of AirTouch, of the United States,
during 1999. Vodaphone continues to engage in acquisitions and alliances on a
global basis. In Germany, it recently closed the acquisition of Mannesman, an
industrial company transformed a telecommunications company. In the United
States, it recently completed the merger of its U.S. wireless operations with
those of Bell Atlantic to create a seamless national provider. In Japan, it has
invested $550 million in nine of Japan's regional cellular operators. Vodaphone
has also established itself as a leader in the delivery of mobile Internet
services through its formation of MAP in alliance with Vivendi of France, the
parent of pay TV and media company Canal Plus.
MINIMUM INITIAL INVESTMENT -- $1,000
The Fund's minimum initial investment for both regular and retirement
accounts is $1,000. There are no subsequent investment minimums. No initial
minimum is required for those establishing an Automatic Investment Plan.
Additionally, the Fund and other Gabelli Funds are available through the
no-transaction fee programs at many major discount brokerage firms.
INTERNET
You can now visit us on the Internet. Our home page at
http://www.gabelli.com contains information about Gabelli Asset Management Inc.,
the Gabelli Mutual Funds, IRAs, 401(k)s, quarterly reports, closing prices and
other current news. You can send us e-mail at [email protected].
7
<PAGE>
IN CONCLUSION
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/ CAESAR BRYAN
CAESAR BRYAN
President and Portfolio Manager
April 14, 2000
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
MARCH 31, 2000
--------------
Vodafone AirTouch plc Nokia Corp.
Vivendi NRJSA
Invik & Co. AB Allianz AG
Compagnie Financiere Richemont AG Obic Co. Ltd.
Telecom Italia Mobile SpA Pearson plc
- --------------------------------------------------------------------------------
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 -- MARCH 31, 2000 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
------ ------
COMMON STOCKS -- 97.0%
BROADCASTING -- 7.3%
9,000 Audiofina ...................... $ 1,107,406
100,000 Granada Group plc .............. 1,070,957
3,000 Nippon Broadcasting System Inc. 237,230
3,000 Nippon Broadcasting System Inc.,
New Shares+ ................... 237,230
1,650 NRJ SA ......................... 1,224,467
25,000 Tokyo Broadcasting System Inc. . 986,025
-----------
4,863,315
-----------
BUILDING AND CONSTRUCTION -- 1.5%
55,000 CRH plc ........................ 990,107
-----------
BUSINESS SERVICES -- 5.1%
5,833 Reuters Holdings plc, ADR ...... 696,314
9,000 Secom Co. Ltd. ................. 771,291
17,000 Vivendi ........................ 1,961,541
-----------
3,429,146
-----------
CABLE -- 3.2%
9,968 NTL Inc.+ ...................... 925,155
81,818 TeleWest Communications plc+ ... 627,372
8,000 UnitedGlobalCom Inc., Cl. A+ ... 600,500
-----------
2,153,027
-----------
COMMUNICATIONS EQUIPMENT -- 5.0%
10,000 Alcatel Alsthom SA, ADR ........ 438,125
7,500 Ericsson (L.M.) Telephone Co.,
Cl. B, ADR .................... 703,594
20,000 Furukawa Electric Co. Ltd. ..... 335,979
6,000 Nokia Corp., Cl. A, ADR ........ 1,303,500
6,000 Telelogic AB+ .................. 542,483
-----------
3,323,681
-----------
COMPUTER HARDWARE -- 1.0%
1,000 Logitech International SA+ ..... 632,237
-----------
COMPUTER SOFTWARE AND SERVICES -- 9.3%
2 Acces Co. Ltd.+ ................ 325,267
4,000 Aldata Solutions Oyj+ .......... 360,039
4,000 Aspiro Information AB+ ......... 173,873
3,000 Comptel Oyj+ ................... 332,078
6,000 Cresco Ltd. .................... 701,173
3,000 Justsystem Corp. ............... 230,803
5,000 Logica plc ..................... 168,805
23 Net One Systems Co. Ltd. ....... 810,732
9,300 NetCom ASA+ .................... 464,807
1,600 Obic Co. Ltd. .................. 1,121,878
9,000 Square Co. Ltd. ................ 929,055
9,000 Sumisho Computer Systems Corp. . 560,939
-----------
6,179,449
-----------
MARKET
SHARES VALUE
------ ------
CONSUMER PRODUCTS -- 6.0%
2,500 Christian Dior SA .............. $ 578,600
570 Compagnie Financiere Richemont
AG, Cl. A ..................... 1,448,702
6,000 Nintendo Co. Ltd. .............. 1,054,682
800 Swatch Group AG ................ 933,137
-----------
4,015,121
-----------
ELECTRONICS -- 6.5%
33,000 Fujitsu Ltd. ................... 1,012,319
5,500 Philips Electronics NV ......... 924,802
5,000 Sony Corp. ..................... 706,043
5,000 Sony Corp., New Shares+ ........ 710,912
5,500 STMicroelectronics NV .......... 1,011,173
-----------
4,365,249
-----------
EDUCATIONAL SERVICES -- 0.9%
3,200 Benesse Corp. .................. 333,447
3,200 Benesse Corp., New Shares+ ..... 281,404
-----------
614,851
-----------
ENERGY AND UTILITIES -- 1.4%
56,000 BP Amoco plc ................... 511,448
2,944 Total Fina Elf ................. 441,178
-----------
952,626
-----------
ENTERTAINMENT -- 2.3%
3,605 Avex Inc. ...................... 686,349
100,000 Publishing & Broadcasting Ltd. . 848,563
-----------
1,534,912
-----------
EQUIPMENT AND SUPPLIES -- 1.6%
23,000 THK Co. Ltd. ................... 1,057,214
-----------
FINANCIAL SERVICES-- 11.8%
3,000 Allianz AG ..................... 1,222,312
52,005 Bank of Ireland ................ 370,992
55,000 Bank of Scotland ............... 621,872
12,300 Invik & Co. AB, Cl. B .......... 1,782,195
110,000 Irish Life & Permanent plc,
London ........................ 1,001,126
3,000 Jafco Co. Ltd. ................. 671,958
40,000 Nikko Securities Co. Ltd. ...... 605,346
33,000 Prudential Corp. plc ........... 497,410
23,000 Skandia Forsakrings AB ......... 1,090,414
-----------
7,863,625
-----------
HEALTH CARE -- 8.7%
13,500 AstraZeneca plc, London ........ 545,854
14,126 AstraZeneca plc, Stockholm ..... 571,459
2,000 AstraZeneca plc, ADR ........... 81,000
31,000 Glaxo Wellcome plc ............. 886,147
600 Novartis AG .................... 820,766
95 Roche Holding AG ............... 1,032,093
9
<PAGE>
GABELLI INTERNATIONAL GROWTH FUND, INC.
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2000 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
------ ------
COMMON STOCKS (CONTINUED)
HEALTH CARE (CONTINUED)
15,000 Sanofi-Synthelabo SA ........... $ 572,375
50,000 SmithKline Beecham plc ......... 659,296
9,000 Takeda Chemical Industries Ltd. 639,821
-----------
5,808,811
-----------
METALS AND MINING -- 1.0%
1,500 Anglogold Ltd. ................. 71,838
5,000 Anglogold Ltd., ADR ............ 120,000
31,081 Antofagasta Holdings plc ....... 195,016
37,500 Harmony Gold Mining Co. Ltd. ... 218,040
7,500 Harmony Gold Mining Co. Ltd., ADR 45,937
-----------
650,831
-----------
PUBLISHING -- 6.8%
30,000 Arnoldo Mondadori Editore SpA .. 765,561
4,060 Computec Media AG .............. 159,394
91,573 Independent News & Media plc, Dublin 898,779
10,000 Independent News & Media plc, London 97,700
67,037 News Corp. Ltd. ................ 936,023
32,000 Pearson plc .................... 1,111,438
24,000 Schibsted ASA .................. 594,066
-----------
4,562,961
-----------
TELECOMMUNICATIONS -- 10.3%
54,000 Cable & Wireless plc ........... 1,013,022
15 DDI Corp. ...................... 122,559
1,000 e.Biscom SpA+ .................. 263,326
21,000 HPY Holding - HTF Holding Oyj
Abp, Cl. A .................... 879,749
20 Japan Telecom Co. Ltd. ......... 847,251
1,500 KDD Corp. ...................... 126,211
9,000 KPN NV ......................... 1,031,138
220,000 Olivetti SpA+ .................. 789,979
25,000 Panafon Hellenic Telecom SA, GDR 363,125
15,000 Rogers Communications Inc., Cl. B+ 443,909
10,000 Rogers Communications Inc.,
Cl. B, ADR+ ................... 298,125
27,205 Telefonica SA .................. 687,724
-----------
6,866,118
-----------
TRANSPORTATION -- 0.3%
15,637 MIF Ltd.+ ...................... 177,788
-----------
WIRELESS COMMUNICATIONS -- 7.0%
23 NTT Mobile Communications
Network Inc. .................. 942,981
110,000 Telecom Italia Mobile SpA ...... 1,350,337
206,376 Vodafone AirTouch plc .......... 1,145,360
21,675 Vodafone AirTouch plc, ADR ..... 1,204,317
-----------
4,642,995
-----------
TOTAL COMMON STOCKS ............ 64,684,064
-----------
MARKET
SHARES VALUE
------ ------
PREFERRED STOCKS -- 1.4%
BROADCASTING -- 1.4%
8,000 ProSieben Media AG, Pfd. ....... $ 915,418
-----------
PRINCIPAL
AMOUNT
---------
U.S. GOVERNMENT OBLIGATIONS -- 1.9%
$1,281,000 U.S. Treasury Bills,
5.76% to 5.94%++,
due 04/27/00 to 06/15/00 ...... 1,272,954
-----------
TOTAL INVESTMENTS -- 100.3%
(Cost $47,137,879) ........... 66,872,436
OTHER ASSETS AND
LIABILITIES (NET) -- (0.3)% .. (203,125)
-----------
NET ASSETS -- 100.0%
(2,738,615 shares outstanding) $66,669,311
===========
- ------------------------
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depositary Receipt.
GDR - Global Depositary Receipt.
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
-------------------------- ------ ------
Europe ....................... 67.1% $44,872,746
Japan ........................ 25.5% 17,046,100
North America ................ 3.9% 2,615,488
Asia/Pacific Rim ............. 2.8% 1,882,286
South Africa ................. 0.7% 455,816
----- -----------
100.0% $66,872,436
===== ===========
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:
5 1/2%
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
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
GAB009Q100SR
[Photo of Mario J. Gabelli omitted]
GABELLI
INTERNATIONAL
GROWTH
FUND,
INC.
FIRST QUARTER REPORT
MARCH 31, 2000
