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					The Gabelli Global
Convertible Securities Fund
Shareholder Commentary – September 30, 2005

                  From the Gabelli Press:

                  Global Convertible Investing:                                      A. Hartswell Woodson, III
                  The Gabelli Way
                  by Hart Woodson



To Our Shareholders,
      During the third quarter, the Fund generated a net total rate of return of +6.35%. This compared to its
benchmark, the Merrill Lynch Global 300 Convertible Index, which gained +4.64%. Over the last twelve months,
the Fund (+11.51%) outperformed its benchmark (+6.34%), as well as investment grade and speculative grade
bonds. Firmer global equity markets, tighter credit spreads, and overweight allocations to energy and Japan
assisted performance. Higher interest rates and a stronger U.S. dollar hindered results. Going forward, we
expect convertibles to benefit from a combination of attractive current income, selective credit spread
tightening, increasing volatility and capital appreciation.
     Global equity markets, as measured by the MSCI World Free Index, gained +6.57% in the quarter and
managed a gain of +16.84% over the last year. Global investment grade bonds, as measured by the AA1 rated
Merrill Lynch Global Bond Index, fell –0.82% during the quarter but gained +3.25% over the last twelve months.
Speculative grade bonds, as measured by the B1 rated Merrill Lynch Global High Yield Index, rose +1.12%
during the quarter, and increased +6.89% year over year.

 We have separated the portfolio manager’s commentary from the financial statements and investment portfolio
 due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done this to
 ensure that the content of the portfolio manager’s commentary is unrestricted. The financial statements and
 investment portfolio are mailed separately from the commentary. Both the commentary and the financial
 statements, including the portfolio of investments, will be available on our website at www.gabelli.com/funds.
INVESTMENT RESULTS (CLASS AAA SHARES) (a)
                                                                                                         — — — — – – – –Quarter – – – – – — — — —
                                                                                                                        –––—
                                                                                                        — — — — —––––––– —––––— — — —
                                                                                                         1st     2nd              3rd         4th                     Year
 2005:   Net Asset Value        .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .        $5.77             $5.67           $6.00        —              —
         Total Return . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .        (3.1)%             0.6%            6.4%        —              —
 2004:   Net Asset Value        .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .        $6.73             $6.41           $6.11       $6.26          $6.26
         Total Return . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .         4.0%             (0.2)%           0.1%        7.6%          11.7%
 2003:   Net Asset Value        .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .        $6.50             $6.79           $6.73       $6.77          $6.77
         Total Return . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .         2.1%              9.2%            3.7%        5.1%          21.5%
 2002:   Net Asset Value    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .        $7.81             $7.28           $6.37       $6.66          $6.66
         Total Return . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .        (2.1)%            (3.0)%          (8.5)%       9.5%          (4.9)%
 2001:   Net Asset Value    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .        $9.94             $9.77           $8.22       $8.29          $8.29
         Total Return . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .        (5.8)%             1.3%          (13.0)%       4.6%         (13.2)%
 2000:   Net Asset Value    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .       $15.04            $13.21          $11.81      $10.86         $10.86
         Total Return . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .        10.6%            (10.2)%          (8.4)%      (5.5)%        (14.0)%
 1999:   Net Asset Value    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .       $10.89            $11.91          $12.71      $13.88         $13.88
         Total Return . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .         7.6%              9.4%            6.7%       20.3%          51.1%
 1998:   Net Asset Value    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .       $10.43            $10.36           $9.09      $10.12         $10.12
         Total Return . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .        11.1%             (0.7)%         (12.3)%      12.2%           8.6%
 1997:   Net Asset Value    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .       $10.27            $10.98          $11.15       $9.39          $9.39
         Total Return . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .         0.9%              6.9%            1.5%       (6.1)%          2.8%
 1996:   Net Asset Value    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .       $11.34            $11.55          $11.41      $10.18         $10.18
         Total Return . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .         5.1%              1.9%           (1.2)%      (0.3)%          5.5%
 1995:   Net Asset Value    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .       $10.09            $10.64          $11.05      $10.79         $10.79
         Total Return . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .         1.6%              5.5%            3.9%        1.2%          12.6%
 1994:   Net Asset Value    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .       $10.38            $10.37          $10.64       $9.93          $9.93
         Total Return . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .         3.8%(b)          (0.1)%           2.6%       (5.2)%          0.9%(b)

                                                            Average Annual Returns through September 30, 2005 (a)                                                      Since
                                                                                       Year to                                                                       Inception
                                                                              Quarter Date      1 Year  3 Year    5 Year                                     10 Year (2/3/94)
  Gabelli Global Convertible Sec. Fund Class AAA 6.35%                                                                   3.68% 11.51% 15.46%        1.87%    6.04%     6.21%
  Merrill Lynch Global 300 Convertible Index (c)                                                    .   .   . . 4.64     (1.20)    6.34    11.38     2.04    5.95       N/A
  Merrill Lynch Global Bond Index . . . . . . . . . . .                                             .   .   . . (0.82)   (2.66)    3.25     7.07     8.18    6.01      6.37
  Merrill Lynch Global High Yield Index (d) . . . .                                                 .   .   . . 1.12      1.15     6.89    16.97     7.66     N/A       N/A
  MSCI World Free Index . . . . . . . . . . . . . . . . .                                           .   .   . . 6.57      4.70    16.84    18.35    (1.27)   5.67      5.75
  (a) Past performance does not guarantee future results. Investment returns and the principal value of an investment will
      fluctuate. Total returns and average annual returns reflect changes in share price and reinvestment of dividends and are net
      of expenses. When shares are redeemed, they may be worth more or less than their original cost. Current performance may
      be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most
      recent month end. Investors should consider the investment objectives, risks and charges and expenses of the
      Fund carefully before investing. The prospectus contains more information about this and other matters and
      should be read carefully before investing. Performance returns for periods less than one year are not annualized. Other
      share classes are available and have different performance characteristics. See Page 13 for performance of other classes
      of shares. Investing in foreign securities involves risks not ordinarily associated with investments in domestic issues,
      including currency fluctuation, economic and political risks. The Merrill Lynch Global 300 Convertible Index, the Merrill Lynch
      Global Bond Index, the Morgan Stanley Capital International (MSCI) World Free Index and the Merrill Lynch Global High
      Yield Index are unmanaged indicators of investment performance.
  (b) From commencement of investment operations on February 3, 1994.
  (c) There is no data available for the Merrill Lynch Global 300 Convertible Index prior to December 31, 1994.
  (d) There is no data available for the Merrill Lynch Global High Yield Index prior to December 31, 1997.

                                      New Quarterly Distribution Policy - $0.03 per share
 The Board of Directors of The Gabelli Global Convertible Securities Fund adopted a change in the Fund’s distribution policy.
 The Fund intends to pay $0.03 per share on a quarterly basis in March, June, September and December. Distributions had
 been paid monthly at the rate of $0.10 per month. The first distribution under the new policy was in June of 2005. For more
 specific dividend and tax information, please visit our website at www.gabelli.com or call 800-GABELLI (800-422-3554).
 Shareholders should be aware that a portion of the distribution may represent a non-taxable return of capital. Such
 distributions will reduce the cost basis of your shares if you hold them in a taxable account.

                                                                                                                    2
Our Investment Objective
     The Fund’s objective is to obtain a high rate of total return by investing in global convertible securities. We
expect to achieve a competitive rate of return by investing primarily in coupon paying convertible securities
which meet our selective investment criteria.

Our Approach
      We weigh both country-specific and company-specific factors to make our investment decisions. Country-
specific factors include political stability, economic growth, inflation and trends in interest rates. With regard to
companies, we seek firms which are undervalued in relation to their long-term potential value. We then look for
some dynamic in the country or company which can unlock this value. For example, in developing countries, it
is the need to provide the infrastructure for growth. In Japan, it is the change from an industrial to a consumer
oriented economy. In commodities, it is the increase in industrial demand.

Global Allocation                                            HOLDINGS BY GEOGRAPHIC REGION – 9/30/05
                                                                              Japan 23%
      The accompanying chart presents the Fund’s
                                                                                                      Europe 15%
holdings by geographic region as of September 30,
2005. 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.                 North America 56%                Asia/Pacific 6%

What are Global Convertible Securities?
     Global convertible securities are bonds, preferred shares and warrants of domestic or foreign issuers which
may be converted into a fixed number of shares of the underlying company. Convertibles are hybrid securities
which combine the capital appreciation potential of equities with the higher yield of fixed income instruments. They
can be thought of as a straight bond together with an embedded call option (or warrant) on the underlying equity.

What are the Benefits of Global Convertible Securities?
      Reduced volatility is foremost. Investing in foreign equity markets can be rewarding but volatile. Our goal
is to earn a high, risk-adjusted rate of return. Due to its fixed income characteristics, a convertible security will
provide more stability than its underlying common stock. In the current market environment, the Fund provides
an attractive alternative by combining the capital appreciation potential of global equity investing with the higher
current income usually associated with bonds.

The Portfolio
Attribution Analysis
      The portfolio consists of approximately 45 investments, excluding cash and common stock. No single
position represents more than 5% of the portfolio nor any one sector more than 25%. The table below shows
the portfolio’s sector weightings (ex cash and common stock) versus the benchmark, the Merrill Lynch Global
300 Convertible Index, as well as how each sector in the index performed during the quarter.




                                                         3
                                                                                   ML Global 300 Convertible
                         Gabelli Global        ML Global 300        Overweight/       Index Performance
 Sector                 Convertible Fund      Convertible Index    (Underweight)          by Sector
 Consumer Discretionary     10.9%                  12.2%              (1.3)%                 0.1%
 Consumer Staples            5.4%                   1.4%               4.0%                  6.8%
 Energy                     13.1%                   6.0%               7.1%                 22.6%
 Financials                 12.7%                  18.3%              (5.6)%                 3.3%
 Health Care                13.2%                   9.9%               3.3%                  4.8%
 Industrials                 7.5%                  12.1%              (4.6)%                 6.7%
 Materials                   8.0%                   5.2%               2.8%                 12.9%
 Media                       4.7%                   4.9%              (0.2)%                 1.4%
 Technology                 11.4%                  15.1%              (3.7)%                 3.8%
 Telecommunications         10.8%                   8.4%               2.4%                  0.5%
 Transportation              0.0%                   2.1%              (2.1)%                (1.0)%
 Utilities                   2.3%                   4.4%              (2.1)%                 5.4%
 Total                     100.0%                 100.0%

     Out of the twelve sectors represented, all except Transportation showed a positive total rate of return. We
had no exposure to Transportation (–1.0%) and our largest overweight was in Energy (+7.1%), the best
performing sector (+22.6%).
      Geographic allocations during the quarter shifted in favor of the U.S. (52% to 56%) at the expense of
Europe (17% to 15%) and Non-Japan Asia (8% to 6%). The Fund’s geographic allocation relative to its
benchmark (ex cash and common stock) and the regional performance of the benchmarks are shown below.
All of the regions posted positive returns, but our largest overweight, Japan (+9%), was the best performing
region (+8.7%). Of course, the actual attribution of our portfolio is also a function of the individual stock
selection within sectors and regions.

                                                                                   ML Global 300 Convertible
                         Gabelli Global        ML Global 300        Overweight/       Index Performance
 Region                 Convertible Fund      Convertible Index    (Underweight)          by Region
 United States              56.0%                  48.0%               8.0%                  3.6%
 Europe                     15.0%                  33.0%             (18.0)%                 4.4%
 Japan                      23.0%                  14.0%               9.0%                  8.7%
 Non-Japan Asia              6.0%                   5.0%               1.0%                  3.0%


     Our product mix shifted slightly with convertible bonds composing 74% of the portfolio and convertible
preferred stock and mandatory convertibles comprising 26% compared to 76% and 24% last quarter,
respectively. Comparable figures for the benchmark are 89% and 11%, respectively. About 31% of these
convertibles offered a balanced total return profile, down from 46% last quarter, as some under performing
investments were sold, while the more equity-like portion rose on capital appreciation (27% to 48%) and the
bond-like portion declined from 26% to 21%. The distribution of the index is 31%, 25%, and 44%, respectively.
The estimated delta of our portfolio ended the quarter at 66% versus 48% on the index.

                                                       4
      During the quarter, we introduced five new positions, sold six, and trimmed a number of existing
investments. In Japan, we purchased regional lender Mie Bank, and homebuilder Kyoritsu Maintenance. In the
U.S., we added Sovereign Bank, which operates on the East Coast, Cal Dive, which provides repair and
maintenance services to the oil and gas industry in the Gulf of Mexico, and Cypress Semiconductor, which is
preparing a spin off of its solar energy subsidiary, Sun Power.
      The portfolio has a weighted average current yield of approximately 2.9%, an adjusted conversion
premium of 20%, and a credit rating of BBB. This compares to the Merrill Lynch Global 300 Convertible Index,
which has a current yield of 2.1%, a conversion premium of 24%, and a credit rating of BBB. The weighted
average equity market capitalization of the underlying equities in the portfolio is $6 billion versus $29 billion for
the index.

Performance Drivers: Q3 2005
      Factors contributing to positive performance during the quarter included stock selection, tighter credit
spreads, and firmer global equity markets. Negative factors included higher interest rates, and weaker currency
values versus the U.S. dollar. The top five convertible performers included Chesapeake Energy (+46%),
pharmaceutical company Rohto (+35%), communications equipment manufacturer Harris Corporation (+29%),
coal miner Arch Coal (+26%), and pharmaceutical provider, Omnicare (+25%). The top five disappointments
included agribusiness Bunge (–19%), building materials manufacturer Wienerberger (–16%), General Motors
(–8%), auto parts supplier Standard Motor Products (–6%), and assisted living provider Manor Care (–5%).

Global Equity Markets
     All of the world’s major equity markets rallied during the quarter in U.S. dollar terms with Japan’s Nikkei
225 leading the group at +14.85%. Europe, as measured by the large capitalization Dow Jones (DJ) STOXX
50 Index, was next with a gain of +7.44%. The U.S. brought up the rear with the S&P 500 Index up just +3.60%.
The technology laden NASDAQ Composite performed slightly better gaining +4.78%, while small capitalization
stocks, as measured by the Russell 2000 Index, rose by +4.70%. Over the last twelve months, all of the world’s
major equity markets have advanced lead by the Nikkei 225 (+22.52%), the DJ STOXX 50 (+22.37%), the
Russell 2000 (+18.08%), the NASDAQ (+13.44%), and the S&P 500 (+12.25%).

Interest Rates and Credit Spreads
      Long-term interest rates rose during the quarter reflecting inflation concerns. In the U.S., the ten year
Treasury bond yield rose by 41 basis points to 4.33% as the Federal Reserve Bank’s (FED) persistent
tightening policy continued to flatten the yield curve. Over the last twelve months, the U.S. ten year yield has
risen by 20 basis points as the FED has increased short-term rates over the same period by 200 basis points
to 3.75%. This action has caused a “bear” flattening of the yield curve as the spread between ten year and two
year Treasuries narrowed from 251 basis points a year ago to 16 basis points by the end of September. The
FED has orchestrated this flattening in order to remove excess liquidity from the economy, which was injected
after the collapse of the stock market bubble in 2000. Meanwhile, commensurate Euro interest rates rose by
just 2 basis points in the quarter to 3.15% and are off –0.86% over the last twelve months reflecting generally
weak economic growth in the Euro Zone. Interest rates in Japan perked up to reflect the improvement in
economic fundamentals. Ten year Treasury yields gained 31 basis points during the quarter to 1.48%, an
increase of 26%, while rates are up just 4 basis points year over year. But more importantly, in Japan, the yield
curve actually steepened in anticipation of the long awaited end to a decade of deflation.

                                                         5
      The option adjusted credit spread (OAS) on the Merrill Lynch Global High Yield Index continued its tightening
trend during the quarter falling 34 basis points to 352 as investors’ risk aversion and insatiable appetite for yield
returned following the disruptions caused by the General Motors downgrade in May. Credit spreads bottomed in
early March 2005 at 267 basis points having descended from a high of 1,139 basis points in October 2002.

Commodity Prices
     The Reuters/Jefferies Commodities Research Bureau (CRB) Futures Price Index leapt +11% during the
quarter as natural gas (+99%), pork bellies (+60%), gasoline (+36%), and heating oil (+28%) rose. Agricultural
commodities were weaker lead by soybeans (–12%), coffee (–11%), and lumber (–6%), while copper (+16%)
and gold (+7%) held firm. Over the last twelve months, the Reuters/Jefferies CRB Index increased +16.83%
lead by natural gas (105%), gasoline (+59%), heating oil (+49%), and crude oil (+33%) with only hogs, lumber,
pork bellies, and cocoa in negative territory.

Volatility
      Global equity market volatility, which has been on a downtrend over the last three years, was mixed during
the quarter with the U.S. largely unchanged, Europe slightly higher in the face of German elections, and Japan
lower on firmer equity markets. Volatility in the U.S., as measured by the Chicago Board Options Exchange
(CBOE) VIX Index, remained flat at around 12% despite a brief spike due to the disruptions caused by
hurricane Katrina. In Europe, election uncertainties moved the volatility of the German stock market, as
measured by the VDAX Index, up 4% to 15%. Japanese equity market volatility, as measured by the ninety day
historic volatility of the Nikkei 225, fell 2.5% to 11%. A year ago, these measures stood at 13%, 17%, and 17%,
respectively. The theoretical value of a convertible portfolio is positively affected by a rise in volatility, which
increases the value of the convertible’s embedded call option, all else being equal. Volatility has been declining
as companies have generally used their excess cash to repay debt and remunerate shareholders in the form
of higher dividends (or stock buybacks) rather than by increasing capital spending or making acquisitions. This
behavior, which is cyclical, reflects current uncertainties in the economic environment. However, we do expect
a modest increase in volatility this year spurred on by an acceleration in M&A activity as companies seek top
line growth through acquisitions, modest rate hikes (especially in the U.S.), and the introduction of new
accounting standards in Europe.

Currencies
      During the quarter, the U.S. dollar strengthened against the Yen (+2.3%), the British Pound Sterling
(+1.5%), and the Euro (+0.70%), as interest differentials and economic growth prospects favored the dollar.
Over the last twelve months, the U.S. dollar has gained against the Yen (+3.1%), the Pound (+2.6%), and the
Euro (+3.3%). Using the Merrill Lynch Global 300 Convertible Index as a guide, weak foreign currencies versus
the U.S. dollar subtracted –0.57% from this benchmark’s performance during the quarter and –1.61% over the
last year. Our policy is to opportunistically hedge currency risk based on underlying macro economic and
technical factors.

Future Outlook
     After two decades of double-digit returns from equities (1980s and 1990s), we expect returns to be more
modest over the next few years (i.e. mid to upper single digits) as we return to the long-term average return of
around 10 % to 11%. In this environment, stock picking will be of foremost importance.

                                                         6
      As far as convertibles are concerned, we believe they represent a particularly attractive asset class now
as current income becomes an increasingly important component of total return (traditionally around 50%).
Over the long run, we expect to earn a low double digit gross return with less risk than traditional equities as
follows: 1) 3–4% in current return, 2) 1–2% in company specific spread tightening while we expect spreads in
general to remain tight to slightly wider, 3) 1–2% in increased equity market volatility, 4) 5–6% in capital
appreciation, assuming our stock selection methodology can generate annual returns in the low double digits
with a convertible participation, or delta, of 50–60%. From a currency perspective, we hope to benefit from any
U.S. dollar weakness while mitigating the risks of dollar strength via our hedging activities.
      In summary, during the balance of the year, we expect convertibles to benefit from a combination of
improved pricing following the cessation of recent hedge fund redemptions, attractive current income, selective
credit spread tightening, increasing volatility, and capital appreciation.

Macro Environment
United States: Headwinds
       The economy continues to adjust following hurricanes Katrina and Rita. The consequent rise in energy
prices caused a 1.2% month over month jump in the headline Consumer Price Index (CPI), which rose at a
4.7% annual rate through September. September also saw a 1.9% monthly surge in the headline Producer
Price Index (PPI), which is up 6.9% from the same period last year. To deter inflation, the Fed continued its
gradual tightening process by raising short-term rates for the eleventh consecutive time to 3.75%. Meanwhile,
the economy remained on a firm footing, but some warning signs have emerged. For example, although second
quarter GDP grew at 3.3%, in line with consensus, this was below the 3.8% rate seen in the first quarter. And
although manufacturing, as measured by the Institute for Supply Management’s (ISM) index gained 5.8 points
in September to 59.4 on reconstruction hopes, the service sector was weak falling 11.7 points to 53.3. A
reading over 50 indicates economic expansion. Finally, although unemployment remained unchanged from
levels seen a year ago at 5.1%, consumer confidence has suffered. In September, the University of Michigan
survey fell from 89.1 to 76.9, a thirteen-year low. In the months ahead, the main focus will be on assessing the
resilience of the American consumer, who faces increasingly strong headwinds from higher interest rates and
energy prices.

Japan: Cautiously Optimistic
       Cautious optimism continues to define our outlook for the Japanese economy. GDP grew at an annualized
rate of 3.3% in the third quarter, a pace commensurate with that of the United States. August exports rose 9.1%
year over year, but the trade surplus shrunk on higher priced energy imports and a weaker U.S. economy.
According to the quarterly Tankan survey, business confidence among large manufacturers rose one point in
September to +19, which was below expectations of +21. Industrial production also faded slightly in August
rising by just +1.2% and missing expectations for a +1.8% gain. Meanwhile, the Bank of Japan (BOJ) is
expected to continue its zero interest rate policy until persistent evidence of inflation returns. This is not
expected until well into 2006 as the core CPI, which includes energy but not food, fell 0.1% year over year
through August. Higher energy costs have crimped consumer confidence, whose index slipped slightly in the
third quarter to 44.8. Values below 50 indicate that pessimists outnumber optimists, but the figure nevertheless
remains near an 8 year high of 45.6. In August, retail sales were up 1.5% year over year and the unemployment
rate fell 0.5% to 4.3%. Finally, Tokyo commercial real estate prices were up 0.6% year over year, the first up
tick since 1990.

                                                       7
Euro Zone: Weak Euro Drives Exports
       In September, the PMI manufacturing index increased 1.3 points to 51.7, 0.9 points better than expected.
A reading above 50 indicates economic expansion. Current production and new orders increased as a weak
Euro improved export competitiveness. The Euro has declined 11% this year to $1.20. Business confidence
improved from –10 in June to –7 in September. However, higher oil prices, which remain over $60 per barrel,
may reverse business optimism and spark an up tick in inflation. The CPI flash estimate for September rose to
2.5% year over year versus 2.2% in August, which is now meaningfully above the European Central Bank’s
(ECB) target of 2%. Central Bank President Jean-Claude Trichet recently toughened his rhetoric on interest
rates intimating that the Bank is increasingly concerned about inflation and is prepared “at any time” to raise
rates, which have been dormant for nearly five years. Meanwhile, the International Monetary Fund (IMF) cut its
2005 Euro Zone growth forecast for the third time this year to just 1.2% and to only 1.6% next year. Consumer
confidence remains weak hurt by both inflation and rising joblessness as August’s unemployment rate rose
from 8.5% to 8.6%. Finally, an indecisive election in Germany has left the new Chancellor, Angela Merkel, a
difficult task implementing much needed reforms. This environment is likely to provide a wealth of investment
opportunities as clear winners and losers emerge and M&A activity accelerates.

Let’s Talk Converts
      The following are specifics on selected holdings of our Fund. Favorable earnings prospects do not
necessarily translate into higher security prices, but they do express a positive trend that we believe will develop
over time. The prices of the following holdings are as of September 30, 2005.
Cal Dive (3.25%, 12/15/2025), based in Houston, offers deep-sea construction and maintenance services to
offshore oil and gas operations primarily in the Gulf of Mexico and North Sea. It also owns and operates several
mature oil and gas properties. The company is benefiting from post hurricane demand for construction and
repair services in the Gulf of Mexico. Cal Dive’s revenues increased 30% year over year during the second
quarter to $166 million. Net income was up 43% to $27 million over the same period. With 39 million shares
outstanding, an equity market capitalization of $2.1 billion, and net debt of $240 million, the total enterprise
value (“TEV”) is $2.3 billion. Currently trading on 6X estimated 2007 Earnings Before Interest, Taxes,
Depreciation and Amortization (“EBITDA”) of $395 million, our Private Market Value (“PMV”) is $75 (+36%)
based on an 8X multiple.
With the stock at $55.60, the convertible trades at 118.35% on a 2.75% current yield and a 37% conversion
premium. The bond is puttable at par in December 2012 for a yield to put of 0.65%.
Compagnie De Saint-Gobain (SGO) (2.625%, 1/1/2007) is a major materials group with revenues of €32 billion
($38 billion). The company operates in three sectors. Its housing products businesses, which accounts for about
half of sales, makes and distributes building materials. Its glass products group makes containers, flat glass,
and insulation. And its high performance materials unit manufactures ceramics, plastics, and abrasives. SGO
is a world leader in many of these products. In August 2005, SGO launched a hostile bid for UK based BPB,
the world’s largest plasterboard maker for 3.7 billion British pounds sterling (“pounds”) ($6.5 billion) in cash. If
completed, the transaction, which would be accretive, would make SGO the leading maker of interior walls and
ceilings. With 335 million shares outstanding, SGO has an equity market capitalization of €16 billion ($19
billion) and net debt and minority interest of €6 billion ($7 billion) for a total enterprise value of €22 billion ($26
billion). With a free cash flow yield of over 5%, SGO trades on just under 5X our 2006 estimated EBITDA of
€4.5 billion ($5.4 billion). Our PMV is €56 (+19%) based on a 5.5X economic value (“EV”)/EBITDA multiple.


                                                          8
Positive catalysts include growth opportunities in building materials and emerging markets, and possible tort
reform in the U.S. that would favorably impact the company’s asbestos liability obligations.
With the stock at €47, the convertible bond trades at 105% on a 2.5% current yield and a 17% conversion
premium.
Cypress Semiconductor (1.25%, 6/15/2008), is a San Jose-based integrated semiconductor manufacturer. It
has 3 divisions: Memory, Non-Memory and SunPower. The first two produce SRAM chips and a variety of USB
devices while SunPower manufactures high efficiency photovoltaic cells. After an anticipated slowdown in 2005,
revenues are expected to gain 20% in 2006 to $1.1 billion. An IPO of Cypress’s SunPower subsidiary is
expected in the fourth quarter. Sales at SunPower were just $17 million in the second quarter but are expected
to grow to $150 million in 2006 on the back of an important order out of Germany and expanded capacity. Due
to its integration with Cypress, SunPower has been insulated from an industry-wide silicon shortage. With 131
million shares outstanding at $13.50, Cypress has an equity market capitalization of $1.8 billion and net debt
of $425 million for a TEV of $2.2 billion. The company trades on about 1.5X 2006 estimated sales. Our PMV is
$20 (+40%) based 2X sales for the core semiconductor business and 4X sales for SunPower.
With the stock at $13.50, the convertible trades at 109% on an 1.15% current yield and a 4% conversion
premium.
Hilton Group PLC (3.375%, 10/2/2010) is a leader in the leisure sector, with interests in hotels, health clubs
and a range of UK regulated betting and gaming services. It owns the Hilton hotel chain outside the U.S. with
approximately 400 hotels in 80 countries. It also owns Ladbrokes, one of the world’s biggest bookmakers, which
generated more than 80% of the group’s 12 billion pounds ($21 billion) in revenues last year. Ladbrokes
continues to grow its online gambling business with over 600,000 registered users. This year, Hilton has thus
far sold 18 hotels for 190 million pounds ($330 million), or 11X EBITDA, as part of on ongoing plan to reduce
its hotel assets by 400 million pounds ($700 million). With 1.7 billion shares outstanding, Hilton Group has an
equity market capitalization of 5.7 billion pounds ($9.9 billion) and net debt of 840 million pounds ($1.4 billion)
for a TEV of 6.5 billion pounds ($11.3 billion). Trading on just over 10.25X 2006 estimated EBITDA of 640 million
pounds ($1.1 billion), our PMV is 3.75 pounds (+11%) on a 11X multiple. In October 2005, Hilton Corporation
of the U.S. proposed a bid for the hotel assets of the Hilton Group in an effort to reunite the Hilton brand globally.
The offer is thought to be in cash for 3.6 billion pounds ($6.3 billion). If completed, our PMV would rise to over
4.0 pounds per share (+18%) based on a higher stand alone multiple for the gaming assets and an improved
balance sheet.
With the stock at 3.38 pounds, the BBB rated convertible trades at 135% on a 4% conversion premium and
2.5% current yield.
Ibiden (0%, 9/30/2014), based in Japan, was originally founded in 1912 as an electric power utility. Today, the
company develops, produces, and markets ceramics, housing materials, and electronics. Its products include
printed circuit boards, graphite specialties, integrated circuit packages, ceramic fibers, and decorative laminates.
In Europe, Ibiden has an 80% market share in diesel particulate filters, which are growing rapidly because of
initiatives to tighten emission controls. In April 2003, the company launched a renewal plan aimed at increasing
sales, profits, and efficiency. Sales last fiscal year were ¥248 billion ($2.2 billion). With 118 million shares
outstanding, Ibiden has an equity market capitalization of ¥547 billion ($4.8 billion) and net debt and minority
interest of ¥17 billion ($148 million) for a TEV of ¥564 billion ($4.9 billion). The shares trade on 7.7X March 2007
estimated EV/EBITDA of ¥73 billion ($635 million). Our PMV is ¥5,400 (+16%) based on a 9X multiple.


                                                          9
With the stock at ¥4,640, the convertible bond trades at 222.9% on a 0% conversion premium and is puttable
at par in September 2009.
Kyoritsu Maintenance (0%, 9/30/2009), is a Tokyo-based residential management firm specializing in the
“Geshukuya” style of student and employee housing. It operates over 275 facilities and is the largest firm of its
type in Japan. In August 2004, Kyoritsu took a 25% stake in Japan’s first hotel REIT, Japan Hotel REIT
Advisors, which has benefited from the recent 14 year high in the TOPIX real estate index. The company
estimates revenues in March 2006 of ¥63 billion ($550 million), up 9% from the prior year. With 11 million
shares outstanding, the company has an equity market capitalization of ¥33 billion ($290 million) with net debt
of ¥23 billion ($200 million) for a TEV of ¥56 billion ($490 million). Kyoritsu trades at 7.8X its March 2007
estimated EBITDA of ¥7.8 billion ($67 million). Our PMV is ¥3,400 (+15%) based on an 8.5X multiple.
With the stock at ¥2,935, the convertible trades at 115% on a 2% conversion premium.
MIE Bank (1.8%, 9/29/2006), is a regional bank based in the Mie Prefecture of Japan. The bank is positioned
to benefit from an expected end to deflation and a general economic recovery. This was evident in the improved
credit quality of MIE’s loan portfolio. Over the past year, the percentage of risk-monitored loans declined from
4.35% to 3.73%. The bank’s capital adequacy ratio also improved from 8.92% to 9.72%. Over the next two
years, earnings are expected to grow at a compounded rate of over 10%. Mie currently trades at just over 1X
its book value of ¥605. Our PMV is ¥700 (+12%), based on a multiple of 1.15X book value.
With the stock at ¥626, the convertible trades at 124.8% on a –0.50% conversion premium.
Pemex (into Repsol - REP) (4.25%, 1/26/2011) based in Madrid, Spain, is Europe’s fifth largest integrated
international oil and gas producer operating in more than 28 countries. A leader in Spain and Argentina, it is
one of the ten largest oil companies in the world with sales last year of over €40 billion ($48 billion). Repsol
produces more than 1.1 million barrels of oil equivalent per day, and its oil and gas reserves total more than
5.4 billion barrels of oil equivalent. These reserves are located mostly in Latin America and North Africa. Its
refining capacity is more than 1.2 million barrels per day, which we believe is significantly undervalued. It
markets its oil products through a wide network of more than 6,600 sales outlets in Europe and Latin America.
With 1,220 million shares outstanding, REP has an equity market capitalization of €31 billion ($37 billion) and
net debt and minority interest of €7 billion ($8 billion) for a total enterprise value of €38 billion ($45 billion). With
a free cash flow yield of over 9%, REP trades on 4.75X our 2006-estimated EBITDA of €8 billion ($9.6 billion).
Our PMV is €30 (+20%) based on a 5.5X EV/EBITDA multiple. Catalysts include new management (COO,
Ramon Blanco Balin), improving top line growth and margins, debt reduction, dividend increases, and
improving economic conditions in Argentina.
With the stock at €25, the U.S. dollar denominated, Baa1 rated convertible bond trades at 135.6% on a 3.3%
current yield and 5% conversion premium.
Rohto (0%, 9/30/2008), based in Osaka, Japan, was founded in 1899 and manufactures and markets
pharmaceutical and cosmetic products. The company, which had sales last fiscal year (March 2005) of ¥73
billion ($635 million), sells eyewash, bath soaps, gastrointestinal medicine, and hand cream. It also
manufactures contact lenses and health foods. In 1975, Rohto acquired the trademark rights of the U.S. based
Mentholatum Company. In 1997, Rohto introduced Dristan in Japan and revolutionized the domestic cold
medicines market. With 107 million shares outstanding, the company has an equity market capitalization of
¥113 billion (i.e. $980 million) and net debt of ¥9 billion ($77 million) for a TEV of ¥122 billion ($1 billion). With
a free cash flow yield of over 5%, Rohto trades on 8.4X its TEV to estimated March 2006 EBITDA of ¥14.5
billion ($126 million). Our PMV is ¥1,200 (+14%) based on a 9.5X multiple.
With the stock at ¥1,056, the convertible trades at 180% on a 2% conversion premium.
                                                           10
Sovereign Bancorp (4.375%, 3/01/2034), is a super regional bank based in Philadelphia. The nineteenth largest
bank in the U.S., Sovereign offers deposit and loan services to consumers and small businesses in the
Northeast. The bank has made 16 acquisitions since 1995. Activist investment firm Relational Investors, which
has a 6.51% stake in SOV, has criticized the bank’s excessive leverage and acquisition strategy. Sovereign
Chairman Jay Sidhu has taken heed as second quarter earnings rose 40% year over year, asset quality and
profitability improved, and a share buyback program continues. With 365 million shares outstanding, the
company has an equity market capitalization of $7.7 billion. Trading on just 1.3X book value, our PMV is $30
(+41%) based on just under 2X book value.
With the stock at $21.20, the convertible trust preferred trades at $43.65 on a 5% current yield and a 27%
conversion premium.

Conclusion
      In the current uncertain economic environment, we believe that convertibles offer investors an attractive
investment opportunity. Our objective is to own the convertible securities of great businesses selling at a
discount to their private market value with a catalyst in place to unlock that value. We thank you for your
continued support of our efforts.
                                                     Sincerely,
                                                     The Gabelli Global Portfolio Management Team
October 27, 2005
NOTE: The views expressed in this report reflect those of the portfolio managers only through the end of the period
stated in this report. The managers’ views are subject to change at any time based on market and other conditions.
     The Fund’s daily net asset value is available in the financial press and each evening after 6:00 PM
(Eastern Time) by calling 800-GABELLI (800-422-3554). The Fund’s Nasdaq symbol is GAGCX for Class AAA
Shares. Please call us during the business day for further information.

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. The Fund imposes a 2% redemption fee on shares sold within 7 days of a
purchase. See the prospectus for more details.

www.gabelli.com
     Please visit us on the Internet. Our homepage at www.gabelli.com contains information about GAMCO
Investors Inc., the Gabelli Mutual Funds, IRAs, 401(k)s, current and historical quarterly reports, closing prices
and other current news. You can send us e-mail at info@gabelli.com.
      You may sign up for our e-mail alerts at www.gabelli.com and receive early notice of quarterly report
availability, news events, media sightings and mutual fund prices.




                                                        11
Multi-Class Shares
      The Gabelli Global Series Funds, Inc. began offering additional classes of Fund shares in March of 2000.
Class AAA Shares are no-load shares offered directly by selected broker/dealers. Class A and Class C Shares
are targeted to the needs of investors who seek advice through financial consultants. Class I Shares are
available solely to certain institutions which invest directly with the Fund. The minimum initial investment
amount for Class I shares is $500,000. The Board of Directors determined that expanding the types of Fund
shares available through various distribution options will enhance the ability of the Fund to attract additional
investors.

                                            Average Annual Returns — September 30, 2005 (a)
                                                  Class AAA Shares   Class A Shares   Class B Shares         Class C Shares
   1 Year . . . . . . . . . . . . . . . . . . .        11.51%          11.50%            10.68%                 10.54%
                                                                        5.14(c)           5.68(d)                9.54(d)
   5 Year . . . . . . . . . . . . . . . . . . .        1.87               1.89             1.18                   1.34
                                                                          0.70(c)          0.80(d)                1.34(d)
   10 Year . . . . . . . . . . . . . . . . . .         6.04               6.06             5.69                   5.76
                                                                          5.45(c)          5.69(d)                5.76(d)
   Life of Fund (b) . . . . . . . . . . . .            6.21               6.22             5.90                   5.97
                                                                          5.69(c)          5.90(d)                5.97(d)

  (a) Total returns and average annual returns reflect changes in share price and reinvestment of dividends and are net
      of expenses. 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. Current performance may be lower or higher than the performance data presented. Visit
      www.gabelli.com for performance information as of the most recent month end. Investors should consider the
      investment objectives, risks and charges and expenses of the Fund carefully before investing. The
      prospectus contains more complete information about this and other matters and should be read carefully
      before investing.
      The Class AAA Shares’ net asset values are used to calculate performance for the periods prior to the issuance of
      Class A Shares, Class B Shares and Class C Shares on May 2, 2001, March 28, 2001 and November 26, 2001,
      respectively. The actual performance for the Class B Shares and Class C Shares would have been lower due to the
      additional expenses associated with these Classes of shares. Investing in foreign securities involves risks not
      ordinarily associated with investments in domestic issues, including currency fluctuation, economic and political risks.
  (b) Performance is calculated from inception of Class AAA Shares on February 3, 1994.
  (c) Includes the effect of the maximum 5.75% sales charge at the beginning of the period.
  (d) Includes the effect of the applicable contingent deferred sales charge at the end of the period shown for Class B and
      Class C Shares, respectively.




                                                                     12
                                        Top Ten Convertible Holdings
                                             September 30, 2005
Agere Systems Inc. (Sub. Deb. Cv., 6.500%, 12/15/09)        Hon Hai Precision Ind. Co. Ltd. (Cv., Zero Coupon, 08/08/08)
Hilton Group Finance Jersey Ltd. (Cv., 3.375%, 10/02/10)    Fisher Scientific Intl. Inc. (Sub. Deb. Cv., 3.250%, 03/01/24)
Futaba Industrial Co. Ltd. (Cv., Zero Coupon, 09/30/09)     Repcon Luxembourg SA (Cv., 4.500%, 01/26/11)
Hamamatsu Photonics KK (Cv., Zero Coupon, 09/30/09)         Agnico-Eagle Mines Ltd. (Sub. Deb. CV., 4.500%, 02/15/12)
Harris Corp. (Deb. Cv., 3.500%, 08/15/22)                   Cooper Cameron Corp. (Cv., 1.500%, 05/15/24)




                                                           13
Gabelli Funds and Your Personal Privacy
Who are we?
The Gabelli Funds are investment companies registered with the Securities and Exchange Commission
under the Investment Company Act of 1940. We are managed by Gabelli Funds, LLC and Gabelli
Advisers, Inc., which are affiliated with GAMCO Investors, Inc. GAMCO Investors, Inc. is a publicly-held
company that has subsidiaries that provide investment advisory or brokerage services for a variety of
clients.
What kind of non-public information do we collect about you if you become a Gabelli customer?
If you apply to open an account directly with us, you will be giving us some non-public information about
yourself. The non-public information we collect about you is:
• Information you give us on your application form. This could include your name, address,
     telephone number, social security number, bank account number, and other information.
• Information about your transactions with us, any transactions with our affiliates and transactions
     with the entities we hire to provide services to you. This would include information about the
     shares that you buy or redeem, and the deposits and withdrawals that you make. If we hire someone
     else to provide services—like a transfer agent—we will also have information about the transactions
     that you conduct through them.
What information do we disclose and to whom do we disclose it?
We do not disclose any non-public personal information about our customers or former customers to
anyone, other than our affiliates, our service providers who need to know such information and as
otherwise permitted by law. If you want to find out what the law permits, you can read the privacy rules
adopted by the Securities and Exchange Commission. They are in volume 17 of the Code of Federal
Regulations, Part 248. The Commission often posts information about its regulations on its web site,
www.sec.gov.
What do we do to protect your personal information?
We restrict access to non-public personal information about you to the people who need to know that
information in order to provide services to you or the Fund and to ensure that we are complying with the
laws governing the securities business. We maintain physical, electronic, and procedural safeguards to
keep your personal information confidential.
                                     G A B E L L I FA M I LY O F F U N D S
VALUE ________________________________________              AGGRESSIVE GROWTH _________________________                MERGER AND ARBITRAGE _____________________
Gabelli Asset Fund                                          Gabelli Global Growth Fund                                 Gabelli ABC Fund
Seeks to invest primarily in a diversified portfolio of     Seeks capital appreciation through a disciplined           Seeks to invest in securities with attractive oppor-
common stocks selling at significant discounts to           investment program focusing on the globalization and       tunities for appreciation or investment income. The
their private market value. The Fund’s primary              interactivity of the world’s marketplace. The Fund         Fund’s primary objective is total return in various market
objective is growth of capital. (Multiclass)                invests in companies at the forefront of accelerated       conditions without excessive risk of capital loss.
              Portfolio Manager: Mario J. Gabelli, CFA      growth. The Fund’s primary objective is capital            (No-load)      Portfolio Manager: Mario J. Gabelli, CFA
                                                            appreciation. (Multiclass)            Team Managed
Gabelli Blue Chip Value Fund
                                                            MICRO-CAP ___________________________________
Seeks long term growth of capital through investment
                                                            Westwood Mighty MitesSM Fund                               CONTRARIAN _________________________________
primarily in the common stocks of established                                                                          Gabelli Mathers Fund
companies which are temporarily out of favor. The           Seeks to invest in micro-cap companies that have
                                                            market capitalizations of $300 million or less. The        Seeks long-term capital appreciation in various market
fund’s objective is to identify a catalyst or sequence of                                                              conditions without excessive risk of capital loss.
events that will return the company to a higher value.      Fund’s primary objective is long-term capital
                                                            appreciation. (Multiclass)           Team Managed          (Class AAA-No-load)
(Multiclass)
               Portfolio Manager: Barbara Marcin, CFA                                                                            Portfolio Manager: Henry Van der Eb, CFA
                                                            EQUITY INCOME _______________________________
Westwood Equity Fund                                        Gabelli Equity Income Fund                                 Comstock Capital Value Fund
                                                            Seeks to invest primarily in equity securities with        Seeks capital appreciation and current income. The
Seeks to invest primarily in the common stock of well-      above market average yields. The Fund pays monthly
seasoned companies that have recently reported                                                                         Fund may use either long or short positions to achieve
                                                            dividends and seeks a high level of total return with an   its objective. (Multiclass)
positive earnings surprises and are trading below           emphasis on income. (Multiclass)
Westwood’s proprietary growth rate estimates. The                                                                                      Portfolio Manager: Martin Weiner, CFA
                                                                          Portfolio Manager: Mario J. Gabelli, CFA
Fund’s primary objective is capital appreciation.
(Multiclass)       Portfolio Manager: Susan M. Byrne     Westwood Balanced Fund                                        Comstock Strategy Fund
                                                         Seeks to invest in a balanced and diversified portfolio       The Fund emphasizes investments in debt securities,
FOCUSED VALUE ______________________________ of stocks and bonds. The Fund’s primary objective is                      which maximize total return in light of credit risk,
Gabelli Value Fund                                       both capital appreciation and current income.                 interest rate risk, and the risk associated with the
Seeks to invest in securities of companies believed to (Multiclass)                                                    length of maturity of the debt instrument. (Multiclass)
be undervalued. The Fund’s primary objective is long-                Co-Portfolio Managers: Susan M. Byrne                             Portfolio Manager: Martin Weiner, CFA
                                                                                             Mark Freeman, CFA
term capital appreciation. (Multiclass)
                Portfolio Manager: Mario J. Gabelli, CFA Westwood Income Fund
                                                         Seeks to provide a high level of current income as well       QUANTITATIVE_________________________________
SMALL CAP VALUE ____________________________ as long-term capital appreciation by investing in                         Ned Davis Research Asset Allocation Fund
Gabelli Small Cap Fund                                   income producing equity and fixed income securities.          Seeks to achieve returns greater then the weighted
Seeks to invest primarily in common stock of smaller (Multiclass)            Portfolio Manager: Susan M. Byrne         composite benchmark consisting of 60% in the S&P
companies (market capitalizations less than $1                                                                         500 Index and 40% in the Lehman Long Term U.S.
billion) believed to have rapid revenue and earnings     SPECIALTY EQUITY ____________________________                 Government Bond Index through a flexible asset
growth potential. The Fund’s primary objective is Gabelli Global Convertible Securities Fund                           allocation strategy. The Fund’s primary objective is
capital appreciation. (Multiclass)                       Seeks to invest principally in bonds and preferred            capital appreciation. (Multiclass)  Team Managed
               Portfolio Manager: Mario J. Gabelli, CFA stocks which are convertible into common stock of
                                                         foreign and domestic companies. The Fund’s primary
                                                         objective is total return through a combination of
Westwood SmallCap Equity Fund                                                                                          FIXED INCOME ________________________________
Seeks to invest primarily in smaller capitalization current income and capital appreciation. (Multiclass)              Westwood Intermediate Bond Fund
equity securities – market caps of $2.5 billion or less.                                           Team Managed
                                                                                                                       Seeks to invest in a diversified portfolio of bonds with
The Fund’s primary objective is long-term capital Gabelli Global Opportunity Fund                                      various maturities. The Fund’s primary objective is
appreciation. (Multiclass)               Team Managed Seeks to invest in common stock of companies which               total return. (Multiclass)
                                                         have rapid growth in revenues and earnings and                               Portfolio Manager: Mark Freeman, CFA
Gabelli Woodland Small Cap Value Fund                    potential for above average capital appreciation or are
Seeks to invest primarily in the common stocks of undervalued. The Fund’s primary objective is capital
smaller companies (market capitalizations less than appreciation. (Multiclass)                    Team Managed
$1.5 billion) believed to be undervalued with                                                                          CASH MANAGEMENT-MONEY MARKET __________
                                                         SECTOR ______________________________________                 Gabelli U.S. Treasury Money Market Fund
shareholder oriented management teams that are Gabelli Global Telecommunications Fund
employing strategies to grow the company’s value. Seeks to invest in telecommunications companies                      Seeks to invest exclusively in short-term U.S. Treasury
The Fund’s primary objective is capital appreciation. throughout the world – targeting undervalued                     securities. The Fund’s primary objective is to provide
(Multiclass)                                                                                                           high current income consistent with the preservation
                                                         companies with strong earnings and cash flow                  of principal and liquidity. (No-load)
              Portfolio Manager: Elizabeth M. Lilly, CFA dynamics. The Fund’s primary objective is capital
                                                         appreciation. (Multiclass)               Team Managed                            Portfolio Manager: Judith A. Raneri
GROWTH ______________________________________
Gabelli Growth Fund                                      Gabelli Gold Fund
Seeks to invest primarily in large cap stocks believed Seeks to invest in a global portfolio of equity                 An investment in the above Money Market Fund is
to have favorable, yet undervalued, prospects for securities of gold mining and related companies. The                 neither insured nor guaranteed by the Federal Deposit
earnings growth. The Fund’s primary objective is Fund’s objective is long-term capital appreciation.                   Insurance Corporation or any government agency.
capital appreciation. (Multiclass)                       Investment in gold stocks is considered speculative           Although the Fund seeks to preserve the value of your
                Portfolio Manager: Howard F. Ward, CFA and is affected by a variety of world-wide economic,            investment at $1.00 per share, it is possible to lose
                                                         financial and political factors. (Multiclass)                 money by investing in the Fund.
                                                                               Portfolio Manager: Caesar Bryan
Gabelli International Growth Fund
Seeks to invest in the equity securities of foreign Gabelli Utilities Fund                                             The Global Funds invest in foreign securities which
issuers with long-term capital appreciation potential. Seeks to provide a high level of total return through a         involve risks not ordinarily associated with investments
The Fund offers investors global diversification. combination of capital appreciation and current                      in domestic issues, including currency fluctuation,
(Multiclass)           Portfolio Manager: Caesar Bryan income. (Multiclass)                       Team Managed         economic and political risks.


To receive a prospectus, call 800-GABELLI (422-3554). Investors should consider the investment objectives, risks and charges and expenses of the Fund carefully
         before investing. The prospectus contains more complete information about this and other matters and should be read carefully before investing.
            Gabelli Global Series Funds, Inc.
The Gabelli Global Convertible Securities Fund
                    One Corporate Center
                  Rye, New York 10580-1422
                        800-GABELLI
                        800-422-3554
                      fax: 914-921-5118
                website: www.gabelli.com
                e-mail: info@gabelli.com
          Net Asset Value available daily by calling
               800-GABELLI after 6:00 P.M.


Mario J. Gabelli, CFA
                      Board of Directors
                                  John D. Gabelli
                                                                        The
Chairman and Chief                Senior Vice President
Executive Officer
GAMCO Investors, Inc.
E. Val Cerutti
                                  Gabelli & Company, Inc.

                                  Karl Otto Pöhl
                                                                        Gabelli
Chief Executive Officer           Former President
Cerutti Consultants, Inc.         Deutsche Bundesbank
Anthony J. Colavita
Attorney-at-Law
Anthony J. Colavita, P.C.
                                  Werner J. Roeder, MD
                                  Medical Director
                                  Lawrence Hospital
                                                                        Global
Arthur V. Ferrara
Former Chairman and
Chief Executive Officer
Guardian Life Insurance
                                  Anthonie C. van Ekris
                                  Managing Director
                                  BALMAC International, Inc.            Convertible
Company of America                Salvatore J. Zizza
                                  Chairman
                                  Hallmark Electrical Supplies Corp.

                             Officers
                                                                        Securities
Bruce N. Alpert
President and Treasurer
Peter D. Goldstein
                                  James E. McKee
                                  Secretary
                                                                        Fund
Chief Compliance Officer

                          Distributor
                     Gabelli & Company, Inc.

     Custodian, Transfer Agent and Dividend Agent
            State Street Bank and Trust Company

                       Legal Counsel
           Skadden, Arps, Slate, Meagher & Flom LLP

This report is submitted for the general information of the
shareholders of The Gabelli Global Convertible Securities Fund. It is
not authorized for distribution to prospective investors unless         SHAREHOLDER COMMENTARY
preceded or accompanied by an effective prospectus.
                                                                              SEPTEMBER 30, 2005
GAB441Q305SC
    The Gabelli Global Convertible Securities Fund
                                                Third Quarter Report
                                                 September 30, 2005

To Our Shareholders,
     During the third quarter of 2005, the Gabelli Global Convertible Securities Fund (Fund) was up 6.35%,
while the Merrill Lynch Global Bond Index, Merrill Lynch Global 300 Convertible Index and Morgan Stanley
Capital International (MSCI) World Free Index returned (0.82)%, 4.64% and 6.57%, respectively.
     Enclosed is the portfolio of investments as of September 30, 2005.
Comparative Results
                                       Average Annual Returns through         September 30, 2005 (a)                     Since
                                                                  Year to                                              Inception
                                                         Quarter   Date       1 Year     3 Year   5 Year    10 Year     (2/3/94)
 Gabelli Global Convertible Fund
   Class AAA . . . . . . . . . . . . . . . . . . .        6.35%     3.68%     11.51%     15.46%   1.87%      6.04%      6.21%
 Merrill Lynch Global Bond Index . . . . . (0.82)                  (2.66)      3.25       7.07    8.18       6.01       N/A*
 Merrill Lynch Global 300
   Convertible Index . . . . . . . . . . . . . . .        4.64     (1.20)      6.34      11.38     2.04      6.01       6.37
 MSCI World Free Index . . . . . . . . . . . .            6.57      4.70      16.84      18.35    (1.27)     5.67       5.75
 Class A . . . . . . . . . . . . . . . . . . . . . . . .  6.34      3.84      11.50      15.50     1.89      6.06       6.22
                                                          0.17(b) (2.10)(b)    5.14(b)   13.25(b) 0.70(b)    5.45(b)    5.69(b)
 Class B . . . . . . . . . . . . . . . . . . . . . . . .  6.10      3.13      10.68      14.59     1.18      5.69       5.90
                                                          1.10(c) (1.87)(c)    5.68(c)   13.83(c) 0.80(c)    5.69(c)    5.90(c)
 Class C . . . . . . . . . . . . . . . . . . . . . . . .  6.20      3.09      10.54      14.68     1.34      5.76       5.97
                                                          5.20(c)   2.09(c)    9.54(c)   14.68(c) 1.34(c)    5.76(c)    5.97(c)
 (a) Returns represent past performance and do not guarantee future results. Investment returns and the principal value
     of an investment will fluctuate. Total returns and average annual returns reflect changes in share price and
     reinvestment of dividends and are net of expenses. When shares are redeemed, they may be worth more or less
     than their original cost. Current performance may be lower or higher than the performance data presented.
     Performance returns for periods less than one year are not annualized. Visit www.gabelli.com for performance
     information as of the most recent month end. Investors should consider the investment objectives, risks and
     charges and expenses of the Fund carefully before investing. The prospectus contains more information
     about this and other matters and should be read carefully before investing. Investing in foreign securities
     involves risks not ordinarily associated with investments in domestic issues, including currency fluctuation,
     economic and political risks.
     The Class AAA Shares’ net asset values are used to calculate performance for the periods prior to the issuance of
     Class A Shares, Class B Shares and Class C Shares on May 2, 2001, March 28, 2001 and November 26, 2001,
     respectively. The actual performance for the Class B Shares and Class C Shares would have been lower due to the
     additional expenses associated with these classes of shares. The Merrill Lynch Global 300 Convertible Index and
     the MSCI World Free Index are unmanaged indicators of investment performance.
 (b) Includes the effect of the maximum 5.75% sales charge at the beginning of the period.
 (c) Includes the effect of the applicable contingent deferred sales charge at the end of the period shown for Class B
     and Class C Shares, respectively. Class B Shares are not available for new purchases.
 * There is no data available for the Merrill Lynch Global 300 Convertible Index prior to December 31, 1994.

 We have separated the portfolio manager’s commentary from the financial statements and investment portfolio due to
 corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that the
 content of the portfolio manager’s commentary is unrestricted. The financial statements and investment portfolio are
 mailed separately from the commentary. Both the commentary and the financial statements, including the portfolio of
 investments, will be available on our website at www.gabelli.com/funds.
    The Gabelli Global Convertible Securities Fund
    Schedule of Investments — September 30, 2005 (Unaudited)

     Principal                                                                   Market                  Principal                                                                   Market
     Amount                                                                      Value*                  Amount                                                                      Value*
       –– ––
     —–—–                                                                        —–——                      ––––
                                                                                                         —––––                                                                       —–——
                    CONVERTIBLE CORPORATE BONDS — 72.8%                                                                  Equipment and Supplies — 2.6%
                    Agriculture — 1.3%                                                               $    275,000        Cooper Cameron Corp., Cv.,
$     100,000       Bunge Ltd. Financial Corp., Cv.,                                                                       1.500%, 05/15/24 . . . . . . . . . . . . . . . . . .   $ 332,063
                                                                                                                                                                                   -----------------
                                                                                                                                                                                  -----------------
                       3.750%, 11/15/22 . . . . . . . . . . . . . . . . . . $ 164,250
                                                                             -----------------
                                                                            -----------------                      Financial Services — 11.0%
                    Automotive: Parts and Accessories — 5.8%                                            200,000(c) Bank Austria Creditanstalt, Cv.,
    40,000,000(b)   Futaba Industrial Co. Ltd., Cv.,                                                                  1.250%, 01/15/07 . . . . . . . . . . . . . . . . . .              328,117
                       Zero Coupon, 09/30/09 . . . . . . . . . . . . . . .         432,625              100,000(d) Forester Ltd., Cv.,
      125,000       Standard Motor Products Inc., Sub. Deb. Cv.,                                                      3.750%, 11/12/09 . . . . . . . . . . . . . . . . . .              239,135
                       6.750%, 07/15/09 . . . . . . . . . . . . . . . . . .        111,250           15,000,000(b) Lopro Corp., Cv.,
    20,000,000(b)   Suzuki Motor Corp., Cv.,                                                                          Zero Coupon, 11/06/06 . . . . . . . . . . . . . . .               167,694
                       Zero Coupon, 03/31/10 . . . . . . . . . . . . . . .         208,608           30,000,000(b) Mie Bank Ltd., Sub. Deb. Cv.,
                                                                             -----------------
                                                                            -----------------
                                                                                   752,483                            1.800%, 09/29/06 . . . . . . . . . . . . . . . . . .              321,089
                                                                             -----------------
                                                                            -----------------           250,000    Repcon Luxembourg SA, Cv.,
                    Business Services — 1.5%                                                                          4.500%, 01/26/11 . . . . . . . . . . . . . . . . . .               361,514
      126,600(c)    SR Teleperformance, Cv.,                                                                                                                                       -----------------
                                                                                                                                                                                  -----------------
                                                                                                                                                                                      1,417,549
                       3.250%, 01/01/08 . . . . . . . . . . . . . . . . . .        195,205                                                                                         -----------------
                                                                                                                                                                                  -----------------
                                                                             -----------------
                                                                            -----------------
                                                                                                                   Health Care — 10.3%
                    Communications Equipment — 5.8%
                                                                                                          375,000  Fisher Scientific International Inc., Sub. Deb. Cv.,
      450,000       Agere Systems Inc., Sub. Deb. Cv.,
                                                                                                                      3.250%, 03/01/24 . . . . . . . . . . . . . . . . . .              382,500
                       6.500%, 12/15/09 . . . . . . . . . . . . . . . . . .        452,250
                                                                                                        250,000    LabOne Inc., Cv., 3.500%, 06/15/34 . . . . . . .                     315,000
      250,000       Cypress Semiconductor Corp., Sub. Deb. Cv.,
                                                                                                        250,000    Manor Care Inc., Cv., 2.625%, 04/15/23 . . . .                       325,000
                       1.250%, 06/15/08 . . . . . . . . . . . . . . . . . .        293,438
                                                                            -----------------
                                                                             -----------------       20,000,000(b) Rohto Pharmaceutical Co., Cv.,
                                                                                   745,688                            Zero Coupon, 09/30/08 . . . . . . . . . . . . . . .                316,772
                                                                             -----------------
                                                                            -----------------                                                                                      -----------------
                                                                                                                                                                                  -----------------
                    Consumer Products — 1.7%                                                                                                                                          1,339,272
                                                                                                                                                                                   -----------------
                                                                                                                                                                                  -----------------
      170,000       Church & Dwight Co. Inc., Deb. Cv.,                                                              Hotels and Gaming — 3.5%
                       5.250%, 08/15/33 . . . . . . . . . . . . . . . . . .        226,950
                                                                            -----------------
                                                                             -----------------            200,000(d) Hilton Group Finance Jersey Ltd., Cv.,
                    Diversified Industrial — 1.7%                                                                       3.375%, 10/02/10 . . . . . . . . . . . . . . . . . .             447,344
                                                                                                                                                                                   -----------------
                                                                                                                                                                                  -----------------
      400,000       Roper Industries Inc., Cv.,                                                                          Metals and Mining — 2.6%
                       1.481%, 01/15/34 . . . . . . . . . . . . . . . . . .        220,500
                                                                             -----------------
                                                                            -----------------             300,000        Agnico-Eagle Mines Ltd., Sub. Deb. Cv.,
                    Electronics — 10.2%                                                                                    4.500%, 02/15/12 . . . . . . . . . . . . . . . . . .          333,375
                                                                                                                                                                                   -----------------
                                                                                                                                                                                  -----------------
      250,000       Asia Optical Co., Cv.,                                                                         Real Estate — 6.3%
                       Zero Coupon, 10/14/08 . . . . . . . . . . . . . . .         280,082           20,000,000(b) Heiwa Real Estate, Cv.,
    40,000,000(b)   Hamamatsu Photonics KK, Cv.,                                                                     Zero Coupon, 06/24/08 . . . . . . . . . . . . . . .                218,904
                       Zero Coupon, 09/30/09 . . . . . . . . . . . . . . .         426,273           30,000,000(b) Kyoritsu Maintenance Co. Ltd., Cv.,
      300,000       Hon Hai Precision Industry Co. Ltd., Cv.,                                                        Zero Coupon, 09/30/09 . . . . . . . . . . . . . . .                305,946
                       Zero Coupon, 08/08/08 . . . . . . . . . . . . . . .         414,300           26,000,000(b) Mitsui Fudosan Co. Ltd., Cv.,
    10,000,000(b)   Ibiden Co. Ltd., Cv.,                                                                            Zero Coupon, 07/30/10 . . . . . . . . . . . . . . .                 295,262
                       Zero Coupon, 09/30/14 . . . . . . . . . . . . . . .         200,387                                                                                         -----------------
                                                                                                                                                                                  -----------------
                                                                             -----------------
                                                                            -----------------                                                                                            820,112
                                                                                1,321,042                                                                                          -----------------
                                                                                                                                                                                  -----------------
                                                                             -----------------
                                                                            -----------------                        Telecommunications — 5.6%
                    Energy and Utilities — 1.7%                                                           150,000(d) Cable & Wireless plc, Cv.,
      100,000       Cal Dive International Inc., Cv.,                                                                  4.000%, 07/16/10 . . . . . . . . . . . . . . . . . .             300,185
                       3.250%, 12/15/25 . . . . . . . . . . . . . . . . . .        126,375                225,000    Harris Corp., Deb. Cv.,
      100,000       Hanover Compressor Co., Cv.,                                                                       3.500%, 08/15/22 . . . . . . . . . . . . . . . . . .              423,000
                       4.750%, 03/15/08 . . . . . . . . . . . . . . . . . .          95,875                                                                                        -----------------
                                                                                                                                                                                  -----------------
                                                                             -----------------
                                                                            -----------------                                                                                            723,185
                                                                                   222,250                                                                                         -----------------
                                                                                                                                                                                  -----------------
                                                                             -----------------
                                                                            -----------------                            TOTAL CONVERTIBLE CORPORATE BONDS . .                        9,417,268
                    Entertainment — 1.2%                                                                                                                                           -----------------
                                                                                                                                                                                  -----------------
      200,000       Liberty Media Corp., Deb. Cv.,                                                                   CORPORATE BONDS — 1.6%
                       3.250%, 03/15/31 (a) . . . . . . . . . . . . . . . .        156,000                           Diversified Industrial — 1.6%
                                                                             -----------------
                                                                            -----------------             197,518(c) Elektrim Finance BV,
                                                                                                                        2.000%, 12/15/05 . . . . . . . . . . . . . . . . . .             210,088
                                                                                                                                                                                   -----------------
                                                                                                                                                                                  -----------------

                                                                                                 2
The Gabelli Global Convertible Securities Fund
Schedule of Investments (Continued) — September 30, 2005 (Unaudited)

                                                                          Market
 Shares                                                                   Value*
   –––
 —––                                                                      —–——
           CONVERTIBLE PREFERRED STOCKS — 25.6%                                                --------------------------------------------------------------
           Automotive — 1.5%                                                                                                                         For Federal tax purposes:
  11,000   General Motors Corp.,                                                                                                                     Aggregate cost . . . . . . . . . . . . . . . . . . . .   $11,737,677
                                                                                                                                                                                                               ------------------
                                                                                                                                                                                                              ------------------
                                                                                                                                                                                                               ------------------
                                                                                                                                                                                                              ------------------
              5.250% Cv. Pfd., Ser. B . . . . . . . . . . . . . . $ 190,080                                                   Gross unrealized appreciation . . . . . . . . .                                 $ 1,564,817
                                                                       -----------------
                                                                      -----------------
           Broadcasting — 3.4%                                                                                                Gross unrealized depreciation . . . . . . . . .                                       (368,758)
                                                                                                                                                                                                               ------------------
                                                                                                                                                                                                              ------------------
  10,000   Emmis Communications Corp.,                                                                                                               Net unrealized appreciation (depreciation)               $ 1,196,059
              6.250% Cv. Pfd., Ser. A . . . . . . . . . . . . . .            434,750                                                                                                                           ------------------
                                                                                                                                                                                                              ------------------
                                                                                                                                                                                                               ------------------
                                                                                                                                                                                                              ------------------
                                                                      -----------------
                                                                       -----------------       --------------------------------------------------------------
           Energy and Utilities — 8.0%                                                          (a) Security exempt from registration under Rule 144A of the Securities Act of
   1,000   Arch Coal Inc.,                                                                                       1933, as amended. These securities may be resold in transactions exempt
              5.000% Cv. Pfd. . . . . . . . . . . . . . . . . . . . .        163,450                             from registration, normally to qualified institutional buyers. At September 30,
   2,000   Chesapeake Energy Corp.,                                                                              2005, the market value of Rule 144A securities amounted to $487,000 or
              5.000% Cv. Pfd. (a) . . . . . . . . . . . . . . . . .          331,000                             3.77% of total investments. These securities have been deemed by the Board
   4,000   FPL Group Inc.,                                                                                       of Directors to be liquid securities.
              8.000% Cv. Pfd., Ser. B . . . . . . . . . . . . . .            284,600            (b) Principal amount denoted in Japanese Yen.
   5,000   Hanover Compressor Capital Trust,                                                    (c) Principal amount denoted in Euros.
              7.250% Cv. Pfd. . . . . . . . . . . . . . . . . . . . .        255,000            (d) Principal amount denoted in British Pounds.
                                                                       -----------------
                                                                      -----------------         *                Portfolio securities are valued at the last quoted sale price or closing
                                                                          1,034,050
                                                                       -----------------
                                                                      -----------------                          values. If these are unavailable, then the average of the closing bid and
           Financial Services — 3.0%                                                                             asked prices is used. If there is no asked price, the security is valued at
   2,000   Doral Financial Corp.,                                                                                the closing bid price on that day. Debt instruments are valued at the
              4.750% Cv. Pfd. . . . . . . . . . . . . . . . . . . . .        319,000                             average of the closing bid and asked prices. If the security matures in 60
   1,500   Sovereign Bancorp Inc.,                                                                               days or less and is not credit-impaired, it is valued at amortized cost. All
              4.375% Cv. Pfd. . . . . . . . . . . . . . . . . . . . .          66,750                            securities and assets for which market quotations are not readily available
                                                                       -----------------
                                                                      -----------------
                                                                             385,750                             or any security that the Board determines does not reflect its fair market
                                                                       -----------------
                                                                      -----------------                          value are valued in good faith under procedures established by the Board.
           Health Care — 2.8%
   5,000   Omnicare Inc.,                                                                                                                                                                     % of
              4.000% Cv. Pfd., Ser. B . . . . . . . . . . . . . .            365,000                                                                                                         Market              Market
                                                                       -----------------
                                                                      -----------------        Geographic Diversification                                                                    Value               Value
           Metals and Mining — 2.7%                                                             —————————
                                                                                               —————————                                                                                    ————                ————
                                                                                               North America . . . . . . . . . . . . . . . . . . . . . . .                                   55.3%            $ 7,158,695
    320    Freeport-McMoRan Copper & Gold Inc.,                                                Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             22.4               2,893,561
              5.500% Cv. Pfd. . . . . . . . . . . . . . . . . . . . .        354,240           Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              16.1               2,081,587
                                                                       -----------------
                                                                      -----------------
                                                                                               Asia/Pacific . . . . . . . . . . . . . . . . . . . . . . . . . .                             —6.2—
           Paper and Forest Products — 0.8%                                                                                                                                                                       799,893
                                                                                                                                                                                              ——              ———––——
   2,000   Amcor Ltd.,                                                                                                                                                                      100.0%            $12,933,736
                                                                                                                                                                                            ——
                                                                                                                                                                                            ————
                                                                                                                                                                                              ——              ———––——
                                                                                                                                                                                                              ———––——
              7.250% Cv. Pfd. . . . . . . . . . . . . . . . . . . . .        105,510
                                                                       -----------------
                                                                      -----------------
           Telecommunications — 3.4%
  10,000   Cincinnati Bell Inc.,
              6.750% Cv. Pfd., Ser. B . . . . . . . . . . . . . .            437,000
                                                                       -----------------
                                                                      -----------------
           TOTAL CONVERTIBLE PREFERRED STOCKS . .                         3,306,380
                                                                       -----------------
                                                                      -----------------
           TOTAL INVESTMENTS — 100.0%
              (Cost $11,737,677) . . . . . . . . . . . . . . . . . $12,933,736
                                                                       -----------------
                                                                      -----------------
                                                                       -----------------
                                                                      -----------------




                                                                                           3
            Gabelli Global Series Funds, Inc.
The Gabelli Global Convertible Securities Fund
                    One Corporate Center
                  Rye, New York 10580-1422
                        800-GABELLI
                        800-422-3554
                      fax: 914-921-5118
                website: www.gabelli.com
                e-mail: info@gabelli.com
          Net Asset Value available daily by calling
               800-GABELLI after 6:00 P.M.


Mario J. Gabelli, CFA
                      Board of Directors
                                  John D. Gabelli
                                                                        The
Chairman and Chief                Senior Vice President
Executive Officer
GAMCO Investors, Inc.
E. Val Cerutti
                                  Gabelli & Company, Inc.

                                  Karl Otto Pöhl
                                                                        Gabelli
Chief Executive Officer           Former President
Cerutti Consultants, Inc.         Deutsche Bundesbank
Anthony J. Colavita
Attorney-at-Law
Anthony J. Colavita, P.C.
                                  Werner J. Roeder, MD
                                  Medical Director
                                  Lawrence Hospital
                                                                        Global
Arthur V. Ferrara
Former Chairman and
Chief Executive Officer
Guardian Life Insurance
                                  Anthonie C. van Ekris
                                  Managing Director
                                  BALMAC International, Inc.            Convertible
Company of America                Salvatore J. Zizza
                                  Chairman
                                  Hallmark Electrical Supplies Corp.

                             Officers
                                                                        Securities
Bruce N. Alpert
President and Treasurer
Peter D. Goldstein
                                  James E. McKee
                                  Secretary
                                                                        Fund
Chief Compliance Officer

                          Distributor
                     Gabelli & Company, Inc.

     Custodian, Transfer Agent and Dividend Agent
            State Street Bank and Trust Company

                       Legal Counsel
           Skadden, Arps, Slate, Meagher & Flom LLP

This report is submitted for the general information of the
shareholders of The Gabelli Global Convertible Securities Fund. It is
not authorized for distribution to prospective investors unless          THIRD QUARTER REPORT
preceded or accompanied by an effective prospectus.
                                                                             SEPTEMBER 30, 2005
GAB441Q305SR

				
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