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The Gabelli Global Convertible Securities Fund Global Convertible

VIEWS: 34 PAGES: 32

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

                   From the Gabelli Press:

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



To Our Shareholders,
     During the second quarter, the fund generated a net total rate of return of +0.58%. This compares to the
Merrill Lynch Global 300 Convertible Index, which lost –1.36%. Over the last twelve months, the fund (+4.94%)
outperformed that benchmark (+1.20%), but lagged other asset classes. Although firmer equity markets and
lower long-term interest rates favored convertibles, these positive influences were overshadowed by a
cheapening of the market caused by hedge fund redemptions, lower equity market volatility, and volatile credit
spreads. As hedge fund redemptions subside, attractive investment opportunities are surfacing for outright long
convertible investors.
     Global equity markets, as measured by the MSCI World Free Index, gained +0.41% in the quarter and
managed a gain of +10.05% over the last year. Global investment grade bonds, as measured by the AA1 rated
Merrill Lynch Global Bond Index, fell –0.01% during the quarter but gained +7.68% over the last twelve months.
Speculative grade bonds, as measured by the B1 rated Merrill Lynch Global High Yield Index, rose +1.78%
during the quarter, and increased +10.81% 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. 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        —           —                 —
         Total Return . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .    (3.1)%       0.6%        —           —                 —
 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 June 30, 2005 (a)                                                             Since
                                                                                Year to                                                                   Inception
                                                                        Quarter Date    1 Year 3 Year                                 5 Year    10 Year    (2/3/94)
  Gabelli Global Convertible Securities Fund
    Class AAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  0.58% (2.51)% 4.94% 9.83%                                    (1.13)%    5.79%      5.78%
  Merrill Lynch Global 300 Convertible Index (c) . . . . . (1.36)         (5.58)        1.20    7.79       0.48      5.28       N/A
  Merrill Lynch Global Bond Index . . . . . . . . . . . . . . . (0.01)    (1.85)        7.68    8.83       8.23      6.06      6.63
  MSCI World Free Index . . . . . . . . . . . . . . . . . . . . . . 0.41  (0.70)      10.05    10.04      (2.08)     7.05      6.84
  Merrill Lynch Global High Yield Index (d) . . . . . . . . .       1.78    0.03      10.81    15.26       7.42       N/A       N/A
  (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 complete 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 – 6/30/05
      The accompanying chart presents the Fund’s                               Japan 23%
holdings by geographic region as of June 30, 2005. The                                                 Europe 17%
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 52%                Asia/Pacific 8%
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.
Portfolio
      The portfolio has a weighted average current yield of 2.8%, an adjusted conversion premium of 21%, 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 28%, and a credit rating of BBB. The weighted average equity market
capitalization of the underlying equities in the portfolio was U.S. $6 billion versus U.S. $27 billion for the index.
      The portfolio consists of approximately 50 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     11.2%                  12.5%              (1.3)%                (2.6)%
 Consumer Staples             8.2%                  1.7%               6.5%                  1.2%
 Energy                     11.4%                   5.3%               6.1%                  4.8%
 Financials                 11.7%                  18.4%              (6.7)%                 0.1%
 Health Care                12.3%                   9.1%               3.2%                  2.8%
 Industrials                  8.6%                 11.4%              (2.8)%                (3.9)%
 Materials                    8.0%                  4.8%               3.2%                 (5.4)%
 Media                        4.8%                  5.0%              (0.2)%                (4.0)%
 Technology                 11.2%                  15.5%              (4.3)%                (1.7)%
 Telecommunications           9.8%                  8.8%               1.0%                 (4.4)%
 Transportation               0.0%                  2.3%              (2.3)%                (5.4)%
 Utilities                    2.8%                  5.2%              (2.4)%                 2.8%
 Total                       100%                  100%

     Out of the twelve sectors represented, five were up. We were overweight four, which included Consumer
Staples (+6.5%), Energy (+6.1%), Health Care (+3.2%) and Telecommunications (+1.0%). Of the seven sectors
which where down, we were fortunate to be underweight five – Consumer Discretionary (–1.3%), Industrials
(–2.8%), Media (–0.2%), Technology (–4.3%), and Transportation (–2.3%).
      Geographic allocations during the quarter favored the U.S. (48% to 52%) and Non-Japan Asia (6 to 8%)
on new investment additions and price appreciation at the expense of Japan (27% to 23%) and Europe (19%
to 17%) on profit taking and risk management. The Fund’s geographic allocation relative to its benchmark (ex
cash and common stock) and the regional performance of the benchmark are shown below. We were
overweight both of the regions that posted positive returns, (U.S. and Non-Japan Asia), and underweight
Europe, which generated a negative return. 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
 North America              52.0%                  49.0%               3.0%                  0.6%
 Europe                     17.0%                  32.0%             (15.0)%                (3.8)%
 Japan                      23.0%                  14.0%               9.0%                 (3.4)%
 Asia/Pacific                8.0%                   5.0%               3.0%                  2.1%

     Our product mix shifted slightly with convertible bonds composing 76% of the portfolio and convertible
preferred stock and mandatory convertibles comprising 24% compared to 79% and 21% last quarter,
respectively. Comparable figures for the benchmark are 88% and 12%, respectively. About 46% of these
convertibles offered a balanced total return profile, up from 39% last quarter, as we added several new
investments, while the more equity-like portion declined on profit taking (35% to 27%) and the bond-like portion
remained unchanged at 26% after the additions made last quarter. The distribution of the index is 37%, 14%,
and 49%, respectively.
                                                       4
      Besides adding to one existing position (Man Group), we introduced three new positions, sold seven, and
trimmed a number of existing investments. In Japan, we purchased Mimasu Semiconductor. In the U.S., we
added LabOne, the laboratory testing service provider and Chesapeake Energy, the natural gas producer.
Finally, we sold positions in BAE Systems, the UK based aerospace concern, Swatch, the Swiss luxury watch
manufacturer, and five Japanese companies: Sato, Fujirebio, Horiba, Daido Metal, and Belluna, which are
involved in bar coding, clinical regents, measurement equipment, ball bearings, and clothing mail-order,
respectively.

Performance Drivers: Q2 2005
      Factors contributing to performance during the quarter included stock selection, lower long-term interest
rates, and generally firmer global equity markets. Negative factors included hedge fund redemptions, declining
equity market volatility, and weaker currency values versus the U.S. dollar. Top existing performers, where the
underlying equity gained over 15% in local currency during the quarter, included five U.S. companies: Arch Coal
(+27%), the Missouri based miner, Omnicare (+20%), the pharmaceutical distribution company who is bidding
for NeighborCare, School Specialty (+19%), the school supplies distributor that succumbed to a private equity
buyout offer, Bunge (+18%), the soybean processor, and General Motors (+18%), which was up on
Mr. Kerkorian’s $586 million tender offer to increase his control of the company to just over 7%. In Europe,
Cable & Wireless (+15%), the telecommunications group advanced, as did the French beverage company
Pernoid-Ricard (+24%) on news of its 9.3 billion pound bid for UK based Allied Domecq. In Asia, Ibiden (+40%),
which produces diesel particulate filters used for emissions control, and Taiwanese based Hon Hai (+17%), the
world’s largest contract manufacturer of electronic devises, performed well. On the negative side, the main
disappointments included Agere (–16%), the communications equipment manufacturer whose busted
convertible bonds actually posted a positive total return of (+1%) over the same period, and Doral Financial
(–23%), the Puerto Rican based mortgage lender that must restate prior earnings because of inadequate
assumptions relating to the profitability of its loan portfolio.

Global Equity Markets
     Most of the world’s major equity markets rallied during the quarter in U.S. dollar terms except Japan,
which fell by –0.69%. Small capitalization stocks had the best performance with the Russell 2000 Index up
+4.36% followed by the technology laden NASDAQ Composite, which rose by +3.07%. The U.S. as a whole,
as represented by the S&P 500 Index, was up just +1.37%. Europe, as measured by the large capitalization
Dow Jones (DJ) STOXX 50 Index, gained +0.38%. Over the last twelve months, all of the world’s major equity
markets have advanced, except Japan’s Nikkei (–1.42%), led by the DJ STOXX 50 (+16.30%), the Russell 2000
(+9.45%), the S&P 500 (+6.32%), and the NASDAQ Composite (+0.45%).




                                                      5
Interest Rates and Credit Spreads
      Long-term interest rates fell globally during the quarter reflecting weaker economic conditions in Europe
and Japan. In the U.S., the ten-year Treasury bond yield fell 57 basis points to 3.92% despite solid economic
performance as the Federal Reserve Bank’s (FED) persistent tightening continued to flatten the yield curve.
Over the last twelve months, the U.S. ten year yield has fallen by 66 basis points even though the FED has
increased short-term rates over the same period to 3.25%. This action has caused a “bear” flattening of the
yield curve as the spread between thirty year and two year Treasuries narrowed from 190 basis points a year
ago to 55 basis points by the end of June. 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 fell 49 basis points in the quarter to 3.13% and are off –1.19% over the last
twelve months reflecting continued economic weakness in the Euro Zone. Interest rates in Japan remain muted
with the Bank of Japan’s (BOJ) “zero” interest rate policy still in place until clear and persistent signs of inflation
return. Ten year Treasury yields fell 16 basis points during the quarter to 1.17%, while rates are down 44 basis
points year over year.
      After reaching a low of 267 basis points in early March, the option adjusted credit spread on the Merrill Lynch
Global High Yield Index widened during the quarter to a high of 458 basis points by mid-May in sympathy with the
downgrading of General Motors’ debt to speculative grade. However, by the end of the quarter, spreads had
tightened back to 386 basis points as equity market volatility continued its downward slope reflecting investors’
risk aversion and insatiable appetite for yield. These spreads were as wide as 1,139 basis points in October 2002.

Commodity Prices
     The Commodities Research Bureau (CRB)/Reuters Futures Price Index fell –4.3% during the quarter as
pork bellies, lumber, and coffee prices eased. Energy futures were also weaker led by natural gas (–8.7%) and
gasoline (–5.0%). The soybean complex and sugar gained while copper (+2.9%) and gold (+1.9%) held firm.
Over the last twelve months, the CRB/Reuters Index increased 12.8% lead by heating oil (+61%), orange juice
(+56%), and oil (+52%) with pork bellies, soybeans, corn, hogs, and lumber all showing double digit declines.

Volatility
      Equity market volatility, which has been on a downtrend over the last three years, continued to retreat.
Volatility, as measured by the Chicago Board Options Exchange VIX Index, fell 2% during the quarter to 12%.
This development was mirrored in Europe where the implied volatility of the German stock market, as
measured by the VDAX Index, declined from 12% to 11%. Japan bucked the trend with the ninety day historic
volatility of the Nikkei 225 rising marginally from 12% to 13%. A year ago, these measures stood at 14%, 18%,
and 22%, 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. We estimate that a
1% increase (decrease) in volatility will raise (reduce) the value of our portfolio by approximately 0.35%.
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 increase capital spending or make
acquisitions. This behavior, which is cyclical, reflects current uncertainties in the economic environment.
Although further declines in volatility appear limited, a rebound (barring any unforeseen geopolitical events)
awaits a pick-up in economic conditions, which may not occur until the second half of 2005 or later. However,
we do expect a modest increase in volatility this year spurred on by an acceleration in Merger & Acquisition
(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.
                                                          6
Currencies
     During the quarter, the U.S. dollar strengthened against the Euro (+6.6%), the British Pound Sterling
(+5.2%), and the Yen (+3.4%), as interest differentials and economic growth prospects favored the dollar.
However, over the last twelve months, concerns over the twin deficits held back the dollar’s gains against the
Yen (+1.99%), the Pound (+1.58%), and the Euro (+0.75%). Using the Merrill Lynch Global 300 Convertible
Index as a guide, weak foreign currencies versus the U.S. dollar subtracted –2.35% from this benchmark’s
performance during the quarter and –0.54% 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 equity returns to
be more modest over the next few years (i.e. mid to upper single digits) as convertibles return to the long-term
average return of around 10% to 11%. In this environment, stock picking will be of foremost importance.
      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%).
We expect to make a low double digit gross return from convertibles 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 as equity volatility remains low to marginally higher, 3) 1–2% in
increased volatility, 4) 5–6% in capital appreciation, assuming our stock selection methodology can generate
annual returns in the low double digits with a convertible 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: Strong Performance
      The Institute for Supply Management’s manufacturing index increased by 2.4 points in June to 53.8 as
growth unexpectedly accelerated for the first time in seven months. A reading over 50 indicates economic
expansion. New orders, the backlog of orders, and the employment index rose, while net export orders fell as
the U.S. dollar strengthened. Although unemployment remained at 5.1%, the economy is beginning to show
solid gains in job creation as June’s figure more than doubled the prior months. Gross Domestic Product
(GDP) grew at a +3.8% annual rate during the first quarter as industrial production and capacity utilization
rose. This was revised upward from May’s preliminary reading of +3.5%. Nevertheless, despite sound
economic growth, inflation slowed for the first time in over a year. In May, consumer prices unexpectedly fell
0.1% month over month due to lower energy prices, which fell 2%. Year over year, consumer prices have risen
3.7% versus a 5% increase during the same period last year. Core consumer prices, ex food and energy, rose
0.1% in May or 2.4% year over year, about the same rate as a year ago. Meanwhile, headline producer prices
are rising at an annual rate of 3.5% versus 4.8% a year ago. These results have led the FED Chairman Alan
Greenspan to describe the current rate of inflation as “modest”. However, although the pace of economic
growth is expected to slow this year to 3.5%, it is still above its long-term average rate of 3.3%. Ever vigilant,

                                                        7
the FED is expected to continue its “measured” pace of interest rate hikes in order to keep inflation in check.
It administered its ninth consecutive quarter point increase in late June to 3.25%. Nevertheless, the consumer
remains undaunted. Rising incomes, employment, and housing prices pushed consumer confidence, as
measured by the University of Michigan survey, to a six month high of 96, the first gain this year.

Japan: Half Full
      After falling into recession last year, Japan’s economy grew at an annual pace of 1.3% in the first quarter
of 2005. Unemployment remained unchanged at 4.4%, the lowest in over six years. Business confidence, as
measured by the quarterly Tankan survey of large manufacturing concerns, gained four points to +18, which
was the first gain in three quarters and surpassed the consensus estimate of +14. This enthusiasm was
shared by non-manufacturing firms, which rose from +11 to +15, the highest level since 1992. Finally, the real
estate sector continued to improve jumping from +20 in March to +27 points in June, which is up from just +14
points six months ago. Nevertheless, despite the BOJ’s zero interest rate policy, the recovery remains fragile.
In June, industrial production fell by –2.3% while household spending slipped by –3.1% as higher energy
prices began to take their toll and export markets weakened. Exports rose just 1.4% year over year in May,
the slowest gain since November 2003. We remain cautiously optimistic about the revival of Japan’s domestic
economy and encouraged by what we perceive to be an emerging trend of corporate activity aimed at
improving shareholder value.

Euro Zone: Soft
       In June, the manufacturing Purchasing Managers’ Index increased 1.2 points to 49.9, 0.9 points better
than expected. A reading below 50 indicates economic contraction. Current production and new orders
increased as a weak Euro improved export competitiveness. The Euro has declined 11% this year to $1.21.
Business confidence rose for the first time in 9 months, climbing to –10 from a 21-month low of –11. However,
higher oil prices, currently around $60, may reverse business optimism and spark an uptick in inflation. The
Consumer Price Index increased from 1.9% to 2.1% year over year in June, slightly above the European
Central Bank’s (ECB) target of 2%. The Bank says it will leave interest rates on hold in deference to the
weakening economy, although some politicians have called for a rate cut to spur growth. In June, the ECB cut
its 2005 GDP growth forecast to 1.4% from 1.6%. This after Italy’s economy contracted by 0.5% during the
first quarter, the most in 6 years, while the German and French economies barely grew at 0.1% and 0.2%,
respectively. Meanwhile, the consumer remains weak, despite a slight improvement in June’s unemployment
rate from 8.9% to 8.8%, as generally higher energy prices and persistent joblessness have kept the consumer
confidence index at –15, its lowest level in a year. Finally, many countries continue to face difficulties meeting
the budget restrictions established by the Maastricht Treaty, even after its terms were softened in March. The
latest concession was for Italy, as the European Commission granted it an additional year, until 2007, to
reduce its budget deficit. The rejection of the European Union constitution by France and Holland, not to
mention forthcoming elections in Germany and possibly Italy, have exacerbated political uncertainties. This
environment is likely to provide a wealth of investment opportunities as clear winners and losers emerge and
M&A activity accelerates.




                                                        8
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 June 30, 2005.
Asia Optical (AO) (0%, 10/14/2008) is a Taiwanese based producer of optical components for electrical
equipment such as lenses for DVD players, electronic microscopes and cameras. The company is the world’s
largest single lens maker. In 2004, AO had sales of Taiwanese dollars (TWD) 27 billion ($850 million), a gain
of 37%. This year, the firm expects 30% revenue growth with stable operating margins of just over 8%. Its major
customers include Pioneer, Olympus, Ricoh and Nikon. With 197 million shares outstanding, AO has an equity
market capitalization of TWD 41 billion ($1.3 billion), and net cash of TWD 1.4 billion ($45 million), for a Total
Enterprise Value (TEV) of TWD 40 billion ($1.3 billion). The stock trades on just over 7X its TEV to estimated
2006 Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) of TWD 5.6 billion ($176 million).
Our Private Market Value (PMV) is TWD 288 (+29%) based on a 10X multiple.
With the stock at TWD 222 ($6.99), the convertible trades at 119% on a 7% conversion premium.
Bunge (3.75%, 11/15/2022) is an integrated, global agribusiness and food company based in White Plains,
New York. Its products range from raw materials, such as grains and fertilizers, to retail food products. Bunge
operates primarily in North and South America and Eastern Europe with worldwide distribution capabilities.
With revenues last year of $25 billion, the company is the world’s leading oilseed processor, the largest
producer and supplier of fertilizers to farmers in South America, and the world’s leading seller of bottled
vegetable oils. As global demand for soy based animal feed and vegetable oil has surged, first quarter net
income increased from $70 million last year to $98 million, a gain of 40%. With 111 million shares outstanding,
the company has an equity market capitalization of $7.1 billion and net debt of $3.2 billion for a TEV of $10.3
billion. Bunge trades on 8.4X its 2006 estimated EV/EBITDA. Our PMV is $72 (+11%) based on a 9X multiple.
With the stock at $65, the convertible trades at 198.875% on a 1.9% current yield and slight discount to parity.
Cable & Wireless (C&W) (4.0%, 7/16/2010) is a leading international telecommunications company that
provides services in voice, data, Internet, multi channel television and mobile communications. The company
operates mainly in the UK and the Caribbean following the sale of its offices in the U.S. and Japan. This sale
was part of extensive restructuring and cost cutting efforts, which also include plans to cut over one thousand
jobs this year. The company hopes that Bulldog, its high speed Internet provider acquired last year, will revive
decreasing UK sales. After completing 30% of a 250 million pounds share buyback, C&W has net cash of 1.4
billion British pounds sterling (“pounds”) ($2.6 billion), or 0.60 pounds per share. With 2.3 billion shares
outstanding, for a market capitalization of 3.4 billion pounds ($6.2 billion), the firm’s TEV is 2 billion pounds
($3.7 billion). Trading on just over 3X March 2007’s EV/EBITDA, our PMV is 175 pounds (+20%) based on a
4.5X multiple.
With the stock at 1.45 pounds, the convertible bond trades at 112.75% on a 12% conversion premium and
3.55% current yield.
Chesapeake Energy (CHK) (5.0%, perpetual convertible preferred), with headquarters in Oklahoma City, is the
third largest independent producer of natural gas in the United States with over 19,000 onshore producing oil
and gas wells located primarily in the Mid continent region. Revenues last year were $2.7 billion. At year end
2004, proven oil and natural gas reserves were 4.9 trillion cubic feet of natural gas equivalent, an increase of
52% from 2003. Over the last several years, about two-thirds of this growth has come from acquisitions.


                                                         9
Approximately 89% of current reserves are in natural gas. Chairman and CEO Aubrey McClendon, who owns
nearly 5% of the company, continues to increase his stake. With 315 million shares outstanding, Chesapeake
has an equity market capitalization of $7.3 billion and net debt of $3.7 billion for a TEV of $11 billion. CHK trades
on 4.5X its 2006 estimated EV/EBITDA. Our PMV is $27 (+18%) per share based on a 5X multiple.
With the stock at $23, the convertible preferred trades at $112.75 on a 25% premium and 4.4% current yield.
Chinatrust Financial Holdings (0%, 7/8/2007) is a Taiwanese based financial services conglomerate. Since
issuing the first credit card in Taiwan, Chinatrust Bank, which generates 90% of the parent company’s net
income, is now the largest credit card company in the country with a 20% market share. Over the last three
years, the firm has built a successful wealth management business, which generates about 11% of the bank’s
operating profit. Net operating profit in 2004 totaled TWD 19 billion ($600 million), up 57%. The bank’s net
interest margin improved modestly to 3.04%. The balance sheet remains strong with Tier 1 capital up slightly
to 7.5% and non performing loans to total loans declining to 1.4% from 1.9% with an 80% coverage ratio. The
cost/income ratio continues to improve, falling from 47.6% to 46.2%. With 6.2 billion shares outstanding,
Chinatrust has an equity market capitalization of TWD 215 billion ($6.8 billion), and trades at 9X 2006 estimated
earnings of TWD 3.58 ($0.11) per share or 1.6X book value. Our price objective is TWD 48 (+40%) based on
10% earnings growth on a 10X P/E, or 2.2X book value.
With the stock at TWD 34.5 ($1.08), the convertible trades at 127% on a 2% conversion premium.
Doral Financial Corporation (4.75% perpetual convertible preferred) is a diversified financial holding company
based in San Juan. Doral is Puerto Rico’s largest residential mortgage lender and also has banking interests
in the U.S.. Doral Bank, a wholly owned subsidiary, is an FDIC insured, federal savings bank with seven
branches in New York City focusing on the Hispanic community. In February, Doral’s securities declined sharply
following news that bank’s financial results had been inflated through its incorrect valuation of its interest only
strip portfolio. In restating its earnings, the company is expected to take a pre tax write down of $600 million.
As of March 31st, the company had cash of $2.8 billion, up from $2.5 billion in the prior quarter, and loan
production of $2.2 billion, up from $1.8 billion. With 108 million shares outstanding, Doral has an equity market
capitalization of $1.5 billion, and trades on 6X estimated 2006 earnings of $2.33, or 1.7X times its adjusted
book value. Our PMV is $19 (+31%) per share based on earnings growth of 8% and an 8X P/E, or 2.1X
adjusted book value.
With the stock at $14.50, the perpetual convertible preferred trades at $145 on an 8.2% current yield and 59%
premium.
EMMIS Communications (6.25% (Series A) perpetual convertible preferred) based in Indianapolis, is a
diversified media company that owns 25 domestic radio stations and 16 television stations. In June, EMMIS
completed a self tender for 40% of its outstanding Class A common stock. Consequently, CEO Jeff Smulyan
now controls a 65% voting block, up from 52% previously. The company intends to sell its television assets and
focus on radio. This may take more than a year depending on the pace of media deregulation and whether or
not the assets are sold station by station or as a group. Potential buyers include Gannett and Journal
Communications. Journal Communications is the more likely buyer prior to further deregulation because its
assets overlap with EMMIS’ in only one market (duopoly rule), whereas Gannetts’ overlap in six. Leverage has
increased with net debt/EBITDA of 8X, up from 5.9X before the tender, and interest coverage of 2X. With 37
million shares outstanding, EMMIS has an equity market capitalization of $650 million and net debt of $1.5
billion for a TEV of $2.15 billion. The company is currently trading on 10X its February 2007 estimated
EV/EBITDA. Our PMV is $25 (+42%) based on an 11X multiple.

                                                         10
With the stock at $17.60, the perpetual convertible preferred trades at $42.25 on a 7.4% current yield and 45%
conversion premium.
Forester (into Man Group Plc) (3.75%, 11/12/2009) based in London, provides alternative investments
products, while being one of the world’s largest futures brokers. As of March 31st, the group had assets under
management of $43 billion. Man Investments, which contributes over 80% of pre-tax profits, is comprised of
various hedge fund managers including AHL, Glenwood, RMF, and New Managers, a joint venture with Marin
Capital Partners. Mixed investment returns have slowed asset growth over the last year, especially in Man’s
traditional European markets, but this has been offset by strong gains in structured products sold in Asia.
Consequently, despite fears to the contrary, net sales are expected to remain strong owing to stable institutional
demand, the absence of product maturities in the next few years, and redemption penalties. Meanwhile,
margins continue to improve and there is no pressure on the firm’s fee structure. With 307 million shares
outstanding, Man has an equity market capitalization of 4.3 billion pounds ($7.9 billion) and net cash of 477
million pounds ($873 million) for a TEV of 3.9 billion pounds ($7.1 billion). Trading on 9X March 2007 earnings,
our price target is 20.00 pounds (+38%) on 12X earnings.
With the stock at 14.40 pounds, the Baa1 rated convertible bond trades at 121.50% on a 3% current yield and
8% 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 over
250 hotels in 70 countries. It also owns Ladbrokes, one of the world’s biggest bookmakers, which generated
more than 80% of the group’s 12 billion pounds ($22 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 ($350 million), or 11X EBITDA, as part of an ongoing plan to reduce its hotel assets by
400 million pounds ($730 million). With 1.7 billion shares outstanding, Hilton Group has an equity market
capitalization of 4.7 billion pounds ($8.6 billion) and net debt of 750 million pounds ($1.4 billion) for a TEV of
5.5 billion pounds ($10 billion). Trading on just over 8X 2006 estimated EBITDA of 660 million pounds ($1.2
billion), our PMV is 3.75 (+31%) on a 10.5X multiple.
With the stock at 2.85 pounds, the BBB+ rated convertible trades at 117% on a 7% conversion premium and
2.9% current yield.
Hon Hai (0%, 8/8/2008) is a Taiwan based contract electronics manufacturer that produces connectors, cable
assemblies, enclosures, flat panel displays, game consoles, motherboards, and servers in addition to design
engineering and mechanical tooling services. The company’s biggest customers include Apple, Cisco, Dell,
Nokia, and Sony. Hon Hai has made a number of recent acquisitions, including Antec Electric System Co., Ltd.,
a maker of automobile wire harness products, and Chi Mei Communications, a move toward becoming a major
mobile phone original design manufacturer. The company was recently granted approval for a global share
offering of up to $1.6 billion, which will be used for future acquisitions. Sales in 2004 were TWD 540 billion ($17
billion), a gain of 45%. Hon Hai has an equity market capitalization of TWD 530 billion ($17 billion) and net debt
of TWD 5 billion ($157 million) for a TEV of TWD 535 billion ($17 billion). The company currently trades on 13X
2006 estimated earnings. Assuming 13% earnings growth and a 12X terminal multiple, our target price is TWD
220 (+33%).
With the stock at TWD 165 ($5.20), the BBB+ rated convertible trades at 128% on a 1% conversion premium.




                                                        11
Conclusion
     In the current uncertain economic environment, we believe convertibles, with their lower equity volatility
and interest rate sensitivity, offer investors an attractive investment opportunity. Our objective is to own 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.
     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.
                                                                 Sincerely,
                                                                 The Gabelli Global Portfolio Management Team
June 25, 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.

                                                 Top Ten Convertible Holdings
                                                        June 30, 2005
        Chesapeake Energy Corp., Cv.                                      Rohto Pharmaceutical Co., Cv., Zero Coupon, 09/30/08
        Agere Systems Inc., Sub. Deb. Cv., 6.500%, 12/15/09               Hilton Group Finance Jersey Ltd., Cv., 3.375%, 10/02/10
        Cincinnati Bell Inc., 6.750%, Cv. Pfd.                            FPL Group Inc., 8.00% Cv. PFD., Ser. B
        Chinatrust Financial Hldg. Co. Ltd., Cv., Zero Coupon, 07/08/07   EMMIS Communications Corp., 6.250% Cv. Pfd. Ser. A
        Freeport-McMoran Copper & Gold Inc., 5.50%, Cv. Pfd.              Labone Inc., Cv., 3.500%, 6/15/34


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 Gabelli
Asset Management 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.




                                                                   12
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 — June 30, 2005 (a)
                                                Class AAA Shares    Class A Shares      Class B Shares     Class C Shares
 1 Year . . . . . . . . . . . . . . . . . . .        4.94%              4.95%               4.07%                4.01%
                                                                       (1.06)(c)           (0.93)(d)             3.01(d)
 5 Year . . . . . . . . . . . . . . . . . . .        (1.13)            (1.10)              (1.75)               (1.62)
                                                                       (2.27)(c)           (2.14)(d)            (1.62)(d)
 10 Year . . . . . . . . . . . . . . . . . .         5.79              5.81                    5.46              5.53
                                                                       5.19(c)                 5.46(d)           5.53(d)
 Life of Fund (b) . . . . . . . . . . . .            5.78          5.79                   5.49                    5.55
                                                                   5.25(c)                5.49 (d)                5.55(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.




                                                                     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, Gabelli Advisers,
Inc. and Gabelli Fixed Income, LLC, which are affiliated with Gabelli Asset Management Inc. Gabelli
Asset Management 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                                                                                           CONTRARIAN _________________________________
Seeks long term growth of capital through investment        MICRO-CAP ___________________________________              Gabelli Mathers Fund
primarily in the common stocks of established               Westwood Mighty MitesSM Fund                               Seeks long-term capital appreciation in various market
companies which are temporarily out of favor. The           Seeks to invest in micro-cap companies that have           conditions without excessive risk of capital loss.
                                                            market capitalizations of $300 million or less. The        (Class AAA-No-load)
fund’s objective is to identify a catalyst or sequence of                                                                        Portfolio Manager: Henry Van der Eb, CFA
events that will return the company to a higher value.      Fund’s primary objective is long-term capital
                                                            appreciation. (Multiclass)           Team Managed
(Multiclass)                                                                                                           Comstock Capital Value Fund
               Portfolio Manager: Barbara Marcin, CFA
                                                            EQUITY INCOME _______________________________              Seeks capital appreciation and current income. The
                                                            Gabelli Equity Income Fund                                 Fund may use either long or short positions to achieve
Westwood Equity Fund                                                                                                   its objective. (Multiclass)
                                                            Seeks to invest primarily in equity securities with
Seeks to invest primarily in the common stock of well-      above market average yields. The Fund pays monthly                         Portfolio Manager: Martin Weiner, CFA
seasoned companies that have recently reported              dividends and seeks a high level of total return with an
positive earnings surprises and are trading below           emphasis on income. (Multiclass)                           Comstock Strategy Fund
Westwood’s proprietary growth rate estimates. The                         Portfolio Manager: Mario J. Gabelli, CFA     The Fund emphasizes investments in debt securities,
Fund’s primary objective is capital appreciation.                                                                      which maximize total return in light of credit risk,
(Multiclass)         Portfolio Manager: Susan M. Byrne Westwood Balanced Fund                                          interest rate risk, and the risk associated with the
                                                         Seeks to invest in a balanced and diversified portfolio       length of maturity of the debt instrument. (Multiclass)
FOCUSED VALUE ______________________________ of stocks and bonds. The Fund’s primary objective is                                      Portfolio Manager: Martin Weiner, CFA
Gabelli Value Fund                                       both capital appreciation and current income.
Seeks to invest in securities of companies believed to (Multiclass)                                                    QUANTITATIVE_________________________________
be undervalued. The Fund’s primary objective is long-                Co-Portfolio Managers: Susan M. Byrne             Ned Davis Research Asset Allocation Fund
                                                                                             Mark Freeman, CFA         Seeks to achieve returns greater then the weighted
term capital appreciation. (Multiclass)
                Portfolio Manager: Mario J. Gabelli, CFA Westwood Income Fund                                          composite benchmark consisting of 60% in the S&P
                                                                                                                       500 Index and 40% in the Lehman Long Term U.S.
                                                         Seeks to provide a high level of current income as well       Government Bond Index through a flexible asset
SMALL CAP VALUE ____________________________ as long-term capital appreciation by investing in
                                                                                                                       allocation strategy. The Fund’s primary objective is
Gabelli Small Cap Fund                                   income producing equity and fixed income securities.          capital appreciation. (Multiclass)      Team Managed
Seeks to invest primarily in common stock of smaller (Multiclass)            Portfolio Manager: Susan M. Byrne
companies (market capitalizations less than $1                                                                         FIXED INCOME ________________________________
billion) believed to have rapid revenue and earnings     SPECIALTY EQUITY ____________________________                 Westwood Intermediate Bond Fund
growth potential. The Fund’s primary objective is Gabelli Global Convertible Securities Fund                           Seeks to invest in a diversified portfolio of bonds with
capital appreciation. (Multiclass)                       Seeks to invest principally in bonds and preferred            various maturities. The Fund’s primary objective is
               Portfolio Manager: Mario J. Gabelli, CFA stocks which are convertible into common stock of              total return. (Multiclass)
                                                         foreign and domestic companies. The Fund’s primary                           Portfolio Manager: Mark Freeman, CFA
Westwood SmallCap Equity Fund                            objective is total return through a combination of
Seeks to invest primarily in smaller capitalization current income and capital appreciation. (Multiclass)              CASH MANAGEMENT-MONEY MARKET __________
equity securities – market caps of $2.5 billion or less.                                           Team Managed        Gabelli U.S. Treasury Money Market Fund
The Fund’s primary objective is long-term capital Gabelli Global Opportunity Fund                                      Seeks to invest exclusively in short-term U.S. Treasury
appreciation. (Multiclass)               Team Managed Seeks to invest in common stock of companies which               securities. The Fund’s primary objective is to provide
                                                         have rapid growth in revenues and earnings and                high current income consistent with the preservation
Gabelli Woodland Small Cap Value Fund                    potential for above average capital appreciation or are       of principal and liquidity. (No-load)
Seeks to invest primarily in the common stocks of undervalued. The Fund’s primary objective is capital                                    Portfolio Manager: Judith A. Raneri
smaller companies (market capitalizations less than appreciation. (Multiclass)                    Team Managed
                                                                                                                       The Treasurer’s Fund
$1.5 billion) believed to be undervalued with
                                                         SECTOR ______________________________________                 Three money market portfolios designed to generate
shareholder oriented management teams that are Gabelli Global Telecommunications Fund                                  superior returns without compromising portfolio
employing strategies to grow the company’s value. Seeks to invest in telecommunications companies                      safety. U.S. Treasury Money Market seeks to invest
The Fund’s primary objective is capital appreciation. throughout the world – targeting undervalued                     in U.S. Treasury securities and repurchase
(Multiclass)                                             companies with strong earnings and cash flow                  agreements. Tax Exempt Money Market seeks to
              Portfolio Manager: Elizabeth M. Lilly, CFA dynamics. The Fund’s primary objective is capital             invest in municipal securities. Domestic Prime
                                                         appreciation. (Multiclass)               Team Managed         Money Market seeks to invest in prime quality,
GROWTH ______________________________________                                                                          domestic money market instruments.
Gabelli Growth Fund                                      Gabelli Gold Fund                                                       (No-load) Portfolio Manager: Judith A. Raneri
Seeks to invest primarily in large cap stocks believed Seeks to invest in a global portfolio of equity
to have favorable, yet undervalued, prospects for securities of gold mining and related companies. The                 The Global Funds invest in foreign securities which
earnings growth. The Fund’s primary objective is Fund’s objective is long-term capital appreciation.                   involve risks not ordinarily associated with investments
capital appreciation. (Multiclass)                       Investment in gold stocks is considered speculative           in domestic issues, including currency fluctuation,
                Portfolio Manager: Howard F. Ward, CFA and is affected by a variety of world-wide economic,            economic and political risks.
                                                         financial and political factors. (Multiclass)
                                                                               Portfolio Manager: Caesar Bryan         An investment in the above Money Market Funds is
Gabelli International Growth Fund                                                                                      neither insured nor guaranteed by the Federal Deposit
Seeks to invest in the equity securities of foreign Gabelli Utilities Fund                                             Insurance Corporation or any government agency.
issuers with long-term capital appreciation potential. Seeks to provide a high level of total return through a         Although the Funds seek to preserve the value of your
The Fund offers investors global diversification. combination of capital appreciation and current                      investment at $1.00 per share, it is possible to lose
(Multiclass)           Portfolio Manager: Caesar Bryan income. (Multiclass)                       Team Managed         money by investing in the Funds.


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.

                      Board of Directors
Mario J. Gabelli, CFA         John D. Gabelli
Chairman and Chief            Senior Vice President
Executive Officer             Gabelli & Company, Inc.
Gabelli Asset Management Inc.
E. Val Cerutti                    Karl Otto Pöhl
Chief Executive Officer           Former President
Cerutti Consultants, Inc.         Deutsche Bundesbank
Anthony J. Colavita               Werner J. Roeder, MD
                                                                         The
Attorney-at-Law                   Medical Director


                                                                         Gabelli
Anthony J. Colavita, P.C.         Lawrence Hospital
Arthur V. Ferrara                 Anthonie C. van Ekris
Former Chairman and               Managing Director
Chief Executive Officer           BALMAC International, Inc.
Guardian Life Insurance
Company of America                Salvatore J. Zizza
                                  Chairman
                                  Hallmark Electrical Supplies Corp.
                                                                         Global
                                                                         Convertible
                             Officers
Bruce N. Alpert                   James E. McKee
President and Treasurer           Secretary
Peter D. Goldstein
Chief Compliance Officer

                          Distributor
                                                                         Securities
                     Gabelli & Company, Inc.

     Custodian, Transfer Agent and Dividend Agent
            State Street Bank and Trust Company
                                                                         Fund
                       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.
                                                                                    JUNE 30, 2005
GAB441Q205SC
     The Gabelli Global Convertible Securities Fund
                                                                Semi-Annual Report
                                                                  June 30, 2005
To Our Shareholders,
     During the second quarter of 2005, the Gabelli Global Convertible Securities Fund (the “Fund”) rose 0.6% while
the Merrill Lynch Global 300 Convertible Index declined 1.4%, the Merrill Lynch Global Bond Index was flat and the
Morgan Stanley Capital International (“MSCI”) World Free Index rose 0.4%. For the six-month period ended June 30,
2005, the Fund was down 2.5% versus declines of 5.6%, 1.9% and 0.7% for the Merrill Lynch Global 300 Convertible
Index, the Merrill Lynch Global Bond Index and the MSCI World Free Index, respectively.
     Enclosed are the financial statements and the investment portfolio as of June 30, 2005.
Comparative Results
                                                Average Annual Returns through June 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 . . . . . . . . . . . . . . . . . . . . .        0.58%    (2.51)%    4.94%     9.83%   (1.13)%   5.79%   5.78%
  Merrill Lynch Global 300 Convertible Index                  (1.36)    (5.58)     1.20      7.79     0.48     5.28    N/A
  Merrill Lynch Global Bond Index . . . . . . .               (0.01)    (1.85)     7.68      8.83     8.23     6.06    6.63
  MSCI World Free Index . . . . . . . . . . . . . .            0.41     (0.70)    10.05     10.04    (2.08)    7.05    6.84
  Class A . . . . . . . . . . . . . . . . . . . . . . . . . .  0.58     (2.35)     4.95      9.92    (1.10)    5.81    5.79
                                                              (5.17)(b) (7.94)(b) (1.06)(b) 7.80(b)  (2.27)(b) 5.19(b) 5.25(b)
  Class B . . . . . . . . . . . . . . . . . . . . . . . . . .  0.42     (2.80)     4.07      9.05    (1.75)    5.46    5.49
                                                              (4.58)(c) (7.66)(c) (0.93)(c) 8.20(c)  (2.14)(c) 5.46(c) 5.49(c)
  Class C . . . . . . . . . . . . . . . . . . . . . . . . . .  0.23     (2.93)     4.01      9.07    (1.62)    5.53    5.55
                                                              (0.77)(c) (3.90)(c)  3.01(c)   9.07(c) (1.62)(c) 5.53(c) 5.55(c)
  (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. 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 complete information about this and other matters and should
      be read carefully before investing. Other share classes are available and have different performance characteristics.
      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 UBS (formerly Warburg Dillon Reed) Global
      Convertible Index, the Merrill Lynch Global 300 Convertible Index and the Morgan Stanley Capital International (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.

 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. 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
Disclosure of Fund Expenses (Unaudited)
For the Six Month Period from January 1, 2005 through June 30, 2005                                         Expense Table
We believe it is important for you to understand the            Hypothetical 5% Return: This section provides
impact of fees and expenses regarding your                      information about hypothetical account values and
investment. All mutual funds have operating expenses.           hypothetical expenses based on the Fund’s actual
As a shareholder of a fund, you incur ongoing costs,            expense ratio. It assumes a hypothetical annualized
which include costs for portfolio management,                   return of 5% before expenses during the period
administrative services, and shareholder reports (like          shown. In this case — because the hypothetical
this one), among others. Operating expenses, which              return used is not the Fund’s actual return — the
are deducted from a fund’s gross income, directly               results do not apply to your investment and you
reduce the investment return of a fund. When a fund’s           cannot use the hypothetical account value and
expenses are expressed as a percentage of its                   expense to estimate the actual ending account
                                                                balance or expenses you paid for the period. This
average net assets, this figure is known as the expense
                                                                example is useful in making comparisons of the
ratio. The following examples are intended to help you
                                                                ongoing costs of investing in the Fund and other
understand the ongoing costs (in dollars) of investing in
                                                                funds. To do so, compare this 5% hypothetical
your Fund and to compare these costs with those of              example with the 5% hypothetical examples that
other mutual funds. The examples are based on an                appear in shareholder reports of other funds.
investment of $1,000 made at the beginning of the
period shown and held for the entire period.                    Please note that the expenses shown in the table are
                                                                meant to highlight your ongoing costs only and do not
The Expense Table below illustrates your Fund’s                 reflect any transactional costs such as sales charges
costs in two ways:                                              (loads), redemption fees, or exchange fees, if any, which
                                                                are described in the Prospectus. If these costs were
Actual Fund Return: This section provides
                                                                applied to your account, your costs would be higher.
information about actual account values and actual              Therefore, the 5% hypothetical return is useful in
expenses. You may use this section to help you to               comparing ongoing costs only, and will not help you
estimate the actual expenses that you paid over the             determine the relative total costs of owning different
period after any fee waivers and expense                        funds. The “Annualized Expense Ratio” represents the
reimbursements. The “Ending Account Value” shown                actual expenses for the last six months and may be
is derived from the Fund’s actual return during the             different from the expense ratio in the Financial Highlights
past six months, and the “Expenses Paid During                  which is for the six months ended June 30, 2005.
Period” shows the dollar amount that would have                                    Beginning      Ending     Annualized    Expenses
been paid by an investor who started with $1,000 in                              Account Value Account Value Expense      Paid During
                                                                                   01/01/05      06/30/05      Ratio        Period*
the Fund. You may use this information, together with
the amount you invested, to estimate the expenses               Gabelli Global Convertible Securities Fund
that you paid over the period.                                  Actual Fund Return
                                                                Class AAA            $1,000.00    $ 974.90      1.95%     $ 9.55
                                                                Class A              $1,000.00    $ 976.50      1.95%     $ 9.56
To do so, simply divide your account value by $1,000            Class B              $1,000.00    $ 972.00      2.69%     $13.15
(for example, an $8,600 account value divided by                Class C              $1,000.00    $ 970.70      2.73%     $13.34
$1,000 = 8.6), then multiply the result by the number           Hypothetical 5% Return
                                                                Class AAA            $1,000.00    $1,015.12     1.95%     $ 9.74
given for your Fund under the heading “Expenses                 Class A              $1,000.00    $1,015.12     1.95%     $ 9.74
Paid During Period” to estimate the expenses you                Class B              $1,000.00    $1,011.46     2.69%     $13.42
                                                                Class C              $1,000.00    $1,011.26     2.73%     $13.61
paid during this period.
                                                                * Expenses are equal to the Fund's annualized expense ratio for the
                                                                  last six months multiplied by the average account value over the
                                                                  period, multiplied by the number of days in the most recent fiscal
                                                                  half-year, then divided by 365.
                                                            2
Summary of Portfolio Holdings (Unaudited)
The following table presents portfolio holdings as a percent of total net assets.
The Gabelli Global Convertible Securities Fund
Financial Services . . . . . . . . . . . . . . . . .    12.7%       Diversified Industrial . . . . . . . . . .         .   .   .   .   .        2.8%
Health Care . . . . . . . . . . . . . . . . . . . . .   12.2%       Hotels and Gaming . . . . . . . . . . .            .   .   .   .   .        2.7%
Equipment and Supplies . . . . . . . . . . . .           9.5%       Broadcasting . . . . . . . . . . . . . . . .       .   .   .   .   .        2.7%
Energy and Utilities . . . . . . . . . . . . . . . .     9.2%       Agriculture . . . . . . . . . . . . . . . . .      .   .   .   .   .        2.6%
Electronics . . . . . . . . . . . . . . . . . . . . . .  8.5%       Retail . . . . . . . . . . . . . . . . . . . . .   .   .   .   .   .        2.2%
Telecommunications . . . . . . . . . . . . . . .         7.2%       Entertainment . . . . . . . . . . . . . . .        .   .   .   .   .        2.0%
Metals and Mining . . . . . . . . . . . . . . . . .      4.8%       Consumer Products . . . . . . . . . .              .   .   .   .   .        1.5%
Automotive: Parts and Accessories . . . .                4.6%       Food and Beverage . . . . . . . . . . .            .   .   .   .   .        1.4%
Business Services . . . . . . . . . . . . . . . . .      3.7%       Automotive . . . . . . . . . . . . . . . . .       .   .   .   .   .        1.3%
Communications Equipment . . . . . . . . .               3.0%       Paper and Forest Products . . . . .                .   .   .   .   .        0.7%
Real Estate . . . . . . . . . . . . . . . . . . . . . .  2.8%       Other Assets and Liabilities – Net                 .   .   .   .   .        1.9%
                                                                                                                                            ---------------
                                                                                                                                           ----------------
                                                                                                                                           100.0%
                                                                                                                                            ---------------
                                                                                                                                           ----------------
                                                                                                                                            ---------------
                                                                                                                                           ----------------

The Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each
fiscal year on Form N-Q, the last of which was filed for the quarter ending March 31, 2005. Shareholders may
obtain this information at www.gabelli.com or by calling the Fund at 800-GABELLI (800-422-3554). The Fund’s
Form N-Q is available on the SEC’s website at www.sec.gov and may also be reviewed and copied at the
Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference
Room may be obtained by calling 1-800-SEC-0330.

Proxy Voting
The Fund files Form N-PX with its complete proxy voting record for the 12 months ended June 30th, no later
than August 31st of each year. A description of the Fund’s proxy voting policies and procedures are available
without charge, upon request, (i) by calling 800-GABELLI (800-422-3554); (ii) by writing to The Gabelli Funds
at One Corporate Center, Rye, NY 10580-1422; and (iii) by visiting the Securities and Exchange Commission’s
website at www.sec.gov.




The Fund has a fixed distribution policy. Under the policy, the Fund declares and pays distributions quarterly
and identifies that portion of the distribution from net investment income, capital gains and paid-in capital. The
actual source of the distribution is determined after the end of the year. The Fund continues to evaluate its
distribution policy in light of ongoing economic and market conditions and may change the amount of the
quarterly distributions in the future. For the period January 1, 2000 through May 20, 2005, the Fund paid
$0.10 per share on a monthly basis. On May 20, 2005, the Board of Directors announced a change in the
distribution policy. The Fund currently intends to pay $0.03 per share on a quarterly basis in March, June,
September and December.



                                                                3
The Gabelli Global Convertible Securities Fund
Schedule of Investments — June 30, 2005 (Unaudited)

    Principal                                                                                  Market                                    Principal                                                                                    Market
    Amount                                                 Cost                                  Value                                   Amount                                                              Cost                     Value
      — –
    — ——                                                   —     —                             ——–—                                      — ——
                                                                                                                                           — –                                                               ——                       ——–—
                    CONVERTIBLE CORPORATE BONDS — 73.6%                                                                                                  Entertainment — 2.0%
                    Agriculture — 2.6%                                                                                               $     200,000       Liberty Media Corp., Deb. Cv.,
$     200,000       Bunge Ltd. Financial Corp., Cv.,                                                                                                        3.250%, 03/15/31 . . . . . $ 189,153                                 $           154,000
                       3.750%, 11/15/22 . . . . . $ 206,599                              $ 396,000                                         200,000       Liberty Media Corp., Deb. Cv.,
                                                   ------------------------------------- -------------------------------------                              3.250%, 03/15/31 (a) . . .                200,000                                 154,000
                    Automotive: Parts and Accessories — 4.6%                                                                                                                             -------------------------------------   -------------------------------------
    40,000,000(b)   Futaba Industrial Co. Ltd., Cv.,                                                                                                                                                  389,153                                 308,000
                                                                                                                                                                                         -------------------------------------   -------------------------------------
                       Zero Coupon, 09/30/09 . .                383,559                               396,009                                            Equipment and Supplies — 9.5%
      125,000       Standard Motor Products Inc.,                                                                                        40,000,000(b)   Central Glass Co. Ltd., Cv.,
                       Sub. Deb. Cv.,                                                                                                                       Zero Coupon, 03/31/10 . .                 414,616                                375,079
                       6.750%, 07/15/09 . . . . .               125,000                               118,750                              248,850(c)    Compagnie de Saint-Gobain, Cv.,
    20,000,000(b)   Suzuki Motor Corp., Cv.,                                                                                                                2.625%, 01/01/07 . . . . .                340,279                                314,072
                       Zero Coupon, 03/31/10 . .                214,477                               193,594                              375,000       Cooper Cameron Corp., Cv.,
                                                   ------------------------------------- -------------------------------------
                                                                723,036                               708,353                                               1.500%, 05/15/24 . . . . .                402,014                                414,375
                                                   ------------------------------------- -------------------------------------           35,000,000(b)   Mimasu Semiconductor
                    Business Services — 3.7%                                                                                                                Industry Co. Ltd., Cv.,
      200,000       Keane Inc., Sub. Deb. Cv.,                                                                                                              Zero Coupon, 11/30/07 . .                 378,965                                 348,923
                       2.000%, 06/15/13 . . . . .               212,873                               192,000                                                                            -------------------------------------   -------------------------------------
                                                                                                                                                                                                 1,535,874                               1,452,449
      253,200(c)    SR Teleperformance, Cv.,                                                                                                                                             -------------------------------------   -------------------------------------
                       3.250%, 01/01/08 . . . . .               369,708                               368,269                                            Financial Services — 10.6%
                                                   ------------------------------------- -------------------------------------             200,000(c)    Bank Austria Creditanstalt, Cv.,
                                                                582,581                               560,269
                                                   ------------------------------------- -------------------------------------                              1.250%, 01/15/07 . . . . .                330,513                                386,698
                    Communications Equipment — 3.0%                                                                                        350,000       Chinatrust Financial Holding
      450,000       Agere Systems Inc., Sub. Deb. Cv.,                                                                                                      Co. Ltd., Cv.,
                       6.500%, 12/15/09 . . . . .               481,695                               455,625                                               Zero Coupon, 07/08/07 . .                 490,020                                440,410
                                                   ------------------------------------- -------------------------------------
                                                                                                                                           100,000(d)    Forester Ltd., Cv.,
                    Consumer Products — 1.5%
                                                                                                                                                            3.750%, 11/12/09 . . . . .                191,702                                218,583
      170,000       Church & Dwight Co. Inc., Deb. Cv.,
                                                                                                                                         25,000,000(b)   Lopro Corp., Cv.,
                       5.250%, 08/15/33 . . . . .               201,055                               225,887
                                                   ------------------------------------- -------------------------------------                              Zero Coupon, 11/06/06 . .                 277,780                                292,704
                    Diversified Industrial — 1.4%                                                                                          250,000       Repcon Luxembourg SA, Cv.,
      400,000       Roper Industries Inc., Cv.,                                                                                                             4.500%, 01/26/11 . . . . .                297,210                                 293,211
                                                                                                                                                                                         -------------------------------------   -------------------------------------
                       1.481%, 01/15/34 . . . . .               169,077                               208,500                                                                                    1,587,225                               1,631,606
                                                   ------------------------------------- -------------------------------------                                                           -------------------------------------   -------------------------------------
                    Electronics — 8.5%                                                                                                                   Food and Beverage — 1.4%
      250,000       Asia Optical Co., Cv.,                                                                                                 117,700(c)    Pernod Ricard SA, Cv.,
                       Zero Coupon, 10/14/08 . .                286,235                               277,478                                               2.500%, 01/01/08 . . . . .                160,110                                 221,611
                                                                                                                                                                                         -------------------------------------   -------------------------------------
    40,000,000(b)   Hamamatsu Photonics KK, Cv.,
                                                                                                                                                         Health Care — 10.3%
                       Zero Coupon, 09/30/09 . .                425,893                               393,540
                                                                                                                                           375,000       Fisher Scientific International
      300,000       Hon Hai Precision Industry
                                                                                                                                                            Inc., Sub. Deb. Cv.,
                       Co. Ltd., Cv.,
                                                                                                                                                            3.250%, 03/01/24 . . . . .                416,091                                390,000
                       Zero Coupon, 08/08/08 . .                346,465                               382,812
                                                                                                                                           350,000       LabOne Inc., Cv.,
    20,000,000(b)   Ibiden Co. Ltd., Cv.,
                                                                                                                                                            3.500%, 06/15/34 . . . . .                383,097                                415,625
                       Zero Coupon, 09/30/14 . .                210,071                               254,046
                                                   ------------------------------------- -------------------------------------             250,000       Manor Care Inc., Cv.,
                                                           1,268,664                             1,307,876                                                  2.625%, 04/15/23 . . . . .                305,626                                335,625
                                                   ------------------------------------- -------------------------------------
                    Energy and Utilities — 0.6%                                                                                          40,000,000(b)   Rohto Pharmaceutical Co., Cv.,
      100,000       Hanover Compressor Co., Cv.,                                                                                                            Zero Coupon, 09/30/08 . .                 443,897                                 432,721
                                                                                                                                                                                         -------------------------------------   -------------------------------------
                       4.750%, 03/15/08 . . . . .                   95,115                                96,500                                                                                 1,548,711                               1,573,971
                                                   ------------------------------------- -------------------------------------                                                           -------------------------------------   -------------------------------------
                                                                                                                                                         Hotels and Gaming — 2.7%
                                                                                                                                           200,000(d)    Hilton Group Finance
                                                                                                                                                            Jersey Ltd., Cv.,
                                                                                                                                                            3.375%, 10/02/10 . . . . .                404,674                                 420,016
                                                                                                                                                                                         -------------------------------------   -------------------------------------

                                                                               See accompanying notes to financial statements.

                                                                                                                                 4
The Gabelli Global Convertible Securities Fund
Schedule of Investments (Continued) — June 30, 2005 (Unaudited)

    Principal                                                                                 Market                                                                                                                                                             Market
    Amount                                                Cost                                  Value                                          Shares                                                                             Cost                           Value
      — –
    — ——                                                  —     —                             ——–—                                             — –
                                                                                                                                                ——                                                                                ——                             ——–—
                    CONVERTIBLE CORPORATE BONDS (Continued)                                                                                                              Financial Services — 2.1%
                    Metals and Mining — 2.0%                                                                                                          2,000              Doral Financial Corp.,
$      300,000      Agnico-Eagle Mines Ltd.,                                                                                                                                4.750% Cv. Pfd. . . . . . . . $ 445,000                                         $ 326,000
                                                                                                                                                                                                          -------------------------------------             -------------------------------------
                       Sub. Deb. Cv.,
                                                                                                                                                                         Health Care — 1.9%
                       4.500%, 02/15/12 . . . . . $ 319,655                             $ 302,250
                                                  ------------------------------------- -------------------------------------                         5,000              Omnicare Inc.,
                    Real Estate — 2.8%                                                                                                                                      4.000% Cv. Pfd., Ser. B . .                254,375                                           290,000
                                                                                                                                                                                                          -------------------------------------             -------------------------------------
    20,000,000(b)   Heiwa Real Estate, Cv.,
                                                                                                                                                                         Metals and Mining — 2.8%
                       Zero Coupon, 06/24/08 . .               198,075                               194,572
                                                                                                                                                          470            Freeport-McMoRan Copper
    26,000,000(b)   Mitsui Fudosan Co. Ltd., Cv.,
                                                                                                                                                                            & Gold Inc.,
                       Zero Coupon, 07/30/10 . .               276,283                               241,792
                                                  ------------------------------------- -------------------------------------                                               5.500% Cv. Pfd. . . . . . . .              445,325                                           435,161
                                                               474,358                               436,364                                                                                              -------------------------------------             -------------------------------------
                                                  ------------------------------------- -------------------------------------                                            Paper and Forest Products — 0.7%
                    Retail — 2.2%
    30,000,000(b)   Kasumi Co. Ltd., Cv.,                                                                                                             2,000              Amcor Ltd.,
                       1.100%, 02/28/07 . . . . .              301,868                               331,011                                                                7.250% Cv. Pfd. . . . . . . .                  94,000                                        105,250
                                                  ------------------------------------- -------------------------------------                                                                             -------------------------------------             -------------------------------------
                    Telecommunications — 4.2%                                                                                                                            Telecommunications — 3.0%
       150,000(d)   Cable & Wireless plc, Cv.,                                                                                                      10,000               Cincinnati Bell Inc.,
                       4.000%, 07/16/10 . . . . .              264,892                               308,799                                                                6.750% Cv. Pfd., Ser. B . .                380,500                                           451,000
                                                                                                                                                                                                          -------------------------------------             -------------------------------------
       225,000      Harris Corp., Deb. Cv.,
                                                                                                                                                                         TOTAL CONVERTIBLE
                       3.500%, 08/15/22 . . . . .              229,637                               328,219
                                                  ------------------------------------- -------------------------------------                                               PREFERRED STOCKS . . .                3,430,296                                         3,547,336
                                                               494,529                               637,018                                                                                              -------------------------------------             -------------------------------------
                                                  ------------------------------------- -------------------------------------                                            TOTAL
                    TOTAL CONVERTIBLE                                                                                                                                       INVESTMENTS — 98.1% $14,569,938                                                    15,029,792
                       CORPORATE BONDS . . . 10,943,979                                     11,273,306                                                                                                    -------------------------------------
                                                                                                                                                                                                          -------------------------------------
                                                  ------------------------------------- -------------------------------------
                                                                                                                                                                         Other Assets and Liabilities (Net) — 1.9%                                           293,318
                    CORPORATE BONDS — 1.4%                                                                                                                                                                                                      -------------------------------------
                    Diversified Industrial — 1.4%                                                                                                                                                 NET ASSETS — 100.0% . . . . . . . . . . . . . $15,323,110
                                                                                                                                                                                                                                                -------------------------------------
                                                                                                                                                                                                                                                -------------------------------------
       197,518(c)   Elektrim Finance BV,                                                                                              --------------------------------------------------------------
                       2.000%, 12/15/05 . . . . .              195,663                               209,150                           (a) Security exempt from registration under Rule 144A of the Securities Act of
                                                  ------------------------------------- -------------------------------------
      Shares                                                                                                                                            1933, as amended. These securities may be resold in transactions exempt
     ------------
    -------------                                                                                                                                       from registration, normally to qualified institutional buyers. At June 30,
                    CONVERTIBLE PREFERRED STOCKS — 23.1%                                                                                                2005, the market value of Rule 144A securities amounted to $614,000 or
                    Automotive — 1.3%                                                                                                                   4.01% of total net assets. These securities have been deemed by the
         11,000     General Motors Corp.,                                                                                                               Board of Directors to be liquid securities.
                      5.250% Cv. Pfd., Ser. B . .                252,935                               204,160                         (b) Principal amount denoted in Japanese Yen.
                                                    ------------------------------------- -------------------------------------
                    Broadcasting — 2.7%                                                                                                (c) Principal amount denoted in Euros.
         10,000     Emmis Communications Corp.,                                                                                        (d) Principal amount denoted in British Pounds.
                      6.250% Cv. Pfd., Ser. A . .                462,275                               418,300
                                                    ------------------------------------- -------------------------------------                                                                                                  % of
                    Energy and Utilities — 8.6%                                                                                                                                                                                 Market                     Market
           1,500    Arch Coal Inc.,                                                                                                   Geographic Diversification                                                                Value                      Value
                      5.000% Cv. Pfd. . . . . . . .                  86,625                            198,750                         —————————
                                                                                                                                      —————————                                                                                ————                       ————
                                                                                                                                      North America . . . . . . . . . . . . . . . . . . . . . . .                                50.8%                  $ 7,629,442
           4,000    Chesapeake Energy Corp.,                                                                                          Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          23.0                     3,453,991
                      5.000% Cv. Pfd. (a) . . . .                401,281                               460,000                        Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           18.2                     2,740,409
           6,500    FPL Group Inc.,                                                                                                   Asia/Pacific . . . . . . . . . . . . . . . . . . . . . . . . . .                          — 8.0                     1,205,950
                      8.000% Cv. Pfd., Ser. B . .                366,730                               419,965                                                                                                                 —— —                     ———––——
                                                                                                                                                                                                                                100.0%                  $15,029,792
           5,000    Hanover Compressor Capital Trust,                                                                                                                                                                           ——
                                                                                                                                                                                                                               ——
                                                                                                                                                                                                                               ——
                                                                                                                                                                                                                                ——                      ———––——
                                                                                                                                                                                                                                                        ———––——
                      7.250% Cv. Pfd. . . . . . . .              241,250                               238,750
                                                    ------------------------------------- -------------------------------------
                                                            1,095,886                             1,317,465
                                                    ------------------------------------- -------------------------------------




                                                                                See accompanying notes to financial statements.

                                                                                                                                  5
                               The Gabelli Global Convertible Securities Fund
Statement of Assets and Liabilities                                                               Statement of Operations
June 30, 2005 (Unaudited)                                                                         For the Six Months Ended June 30, 2005 (Unaudited)
Assets:                                                                                           Investment Income:
  Investments, at value (cost $14,569,938)                 .   .   .   .   $15,029,792              Dividends (net of foreign taxes of $1,075) . . .                            $ 110,059
  Foreign currency, at value (cost $27) . . .              .   .   .   .            25              Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  Receivable for investments sold . . . . . .              .   .   .   .       535,994                                                                                           – 166,211
                                                                                                                                                                                ——— —
                                                                                                                                                                                   – — —
                                                                                                     Total Investment Income . . . . . . . . . . . . . . .
  Dividends and interest receivable . . . . .              .   .   .   .        92,534                                                                                           – 276,270
                                                                                                                                                                                   – — —
                                                                                                                                                                                ——— —
  Receivable for Fund shares sold . . . . . .              .   .   .   .            15            Expenses:
  Other assets . . . . . . . . . . . . . . . . . . . . .   .   .   .   .   — — —970
                                                                            — — —   —               Investment advisory fees . . . . . . . . . . .          .   .   .   .   .      100,441
  Total Assets . . . . . . . . . . . . . . . . . . . . . . . .              15,659,330              Distribution fees — Class AAA . . . . . .               .   .   .   .   .       24,103
                                                                            — — —
                                                                           — — — —
Liabilities:                                                                                        Distribution fees — Class A . . . . . . . . .           .   .   .   .   .          707
  Payable to custodian . . . . . . . . . . . . . . . . . . .                  274,564               Distribution fees — Class B . . . . . . . . .           .   .   .   .   .          585
  Payable for shareholder communications fees                                  16,169               Distribution fees — Class C . . . . . . . .             .   .   .   .   .          616
  Payable for investment advisory fees . . . . . . .                           12,732               Shareholder communications expenses                     .   .   .   .   .       20,479
  Payable for distribution fees . . . . . . . . . . . . . .                     3,535               Shareholder services fees . . . . . . . . . .           .   .   .   .   .       14,502
  Other accrued expenses . . . . . . . . . . . . . . . .                   — —29,220
                                                                            — — —
                                                                                — —                 Registration fees . . . . . . . . . . . . . . . . .     .   .   .   .   .       11,559
  Total Liabilities . . . . . . . . . . . . . . . . . . . . . .                                     Legal and audit fees . . . . . . . . . . . . . .        .   .   .   .   .       11,531
                                                                            — 336,220
                                                                               — —
                                                                           — — — —                  Custodian fees . . . . . . . . . . . . . . . . . .      .   .   .   .   .        8,476
  Net Assets applicable to 2,704,283
    shares outstanding . . . . . . . . . . . . . . . . . .                 $15,323,110              Directors’ fees . . . . . . . . . . . . . . . . . . .   .   .   .   .   .        1,252
                                                                            — — —
                                                                           — — — —
                                                                           — — — —
                                                                            — — —                   Interest expense . . . . . . . . . . . . . . . . .      .   .   .   .   .        1,073
Net Assets Consist of:                                                                              Miscellaneous expenses . . . . . . . . . .              .   .   .   .   .
  Capital stock, at $0.001 par value . . . . . . . . .                     $        2,704                                                                                        – – 3,086
                                                                                                                                                                                ——— —— —
  Additional paid-in capital . . . . . . . . . . . . . . . .                   15,379,271            Total Expenses . . . . . . . . . . . . . . . . . . . . . .                    198,410
  Accumulated net realized loss on investments                                                       Expense reimbursement (see Note 3) . . . . . .                                   (729)
    and foreign currency transactions . . . . . . .                              (516,943)           Less: Custodian fees credits . . . . . . . . . . . . .                           (865)
                                                                                                                                                                                 – – — —
                                                                                                                                                                                ——— —
  Net unrealized appreciation on investments . .                                  459,854            Total Net Expenses . . . . . . . . . . . . . . . . . . .
  Net unrealized depreciation on foreign                                                                                                                                         – 196,816
                                                                                                                                                                                   – — —
                                                                                                                                                                                ——— —
    currency translations . . . . . . . . . . . . . . . . .                — — (1,776)
                                                                            — — —— —                 Net Investment Income . . . . . . . . . . . . . . . .                       – –79,454
                                                                                                                                                                                ——— —— —
  Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . .           $15,323,110            Net Realized and Unrealized Gain (Loss) on
                                                                            — — —
                                                                           — — — —
                                                                            — — —
                                                                           — — — —
Shares of Capital Stock:                                                                            Investments and Foreign Currency:
  Class AAA:                                                                                        Net realized gain on investments . . . . . . . . . .                           985,622
  Net Asset Value, offering and redemption price                                                    Net realized gain on foreign currency
    per share ($14,594,523 ÷ 2,574,133 shares                                                         transactions . . . . . . . . . . . . . . . . . . . . . . . .                 394,885
    outstanding; 75,000,000 shares authorized                                                       Net change in unrealized appreciation/
    of $0.001 par value) . . . . . . . . . . . . . . . . . .                       $5.67              depreciation on investments and
                                                                                   — —
                                                                                    —
                                                                                   — —
                                                                                    —
  Class A:                                                                                            foreign currency translations . . . . . . . . . . .                        (2,152,056)
  Net Asset Value and redemption price per share                                                                                                                                  – – — —
                                                                                                                                                                                ——— —
    ($464,909 ÷ 81,869 shares outstanding;                                                           Net Realized and Unrealized Gain (Loss) on
                                                                                                       Investments and Foreign Currency . . . . .
    50,000,000 shares authorized of $0.001                                                                                                                                       – (771,549)
                                                                                                                                                                                    – — —
                                                                                                                                                                                ——— —
    par value) . . . . . . . . . . . . . . . . . . . . . . . . .                   $5.68             Net Decrease in Net Assets Resulting
                                                                                    —
                                                                                   — —
                                                                                    —
                                                                                   — —
  Maximum offering price per share (NAV ÷ 0.9425,                                                      from Operations . . . . . . . . . . . . . . . . . . . .                  $ – (692,095)
                                                                                                                                                                                ——— —
                                                                                                                                                                                ——— —– — —
                                                                                                                                                                                  – – — —
    based on maximum sales charge of 5.75%
    of the offering price) . . . . . . . . . . . . . . . . .                       $6.03
                                                                                   — —
                                                                                    —
                                                                                   — —
                                                                                    —
  Class B:
  Net Asset Value and offering price per share
    ($72,021 ÷ 13,317 shares outstanding;
    25,000,000 shares authorized of $0.001
    par value) . . . . . . . . . . . . . . . . . . . . . . . . .                   $5.41(a)
                                                                                    —
                                                                                   — —
                                                                                    —
                                                                                   — —
  Class C:
  Net Asset Value and offering price per share
    ($191,657 ÷ 34,964 shares outstanding;
    25,000,000 shares authorized of $0.001
    par value) . . . . . . . . . . . . . . . . . . . . . . . . .                   $5.48(a)
                                                                                   — —
                                                                                    —
                                                                                   — —
                                                                                    —
(a) Redemption price varies based on length of time held.


                                                           See accompanying notes to financial statements.

                                                                                              6
                                        The Gabelli Global Convertible Securities Fund

Statement of Changes in Net Assets

                                                                                                                                                                                                                                                Six Months Ended
                                                                                                                                                                                                                                                  June 30, 2005       Year Ended
                                                                                                                                                                                                                                                   (Unaudited)     December 31, 2004
                                                                                                                                                                                                                                                 ——————
                                                                                                                                                                                                                                                ———————             ——————
                                                                                                                                                                                                                                                                   ———————
Operations:
 Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                                                             $      79,454      $     194,040
 Net realized gain on investments and foreign currency transactions . . . . . . . . . . . . . . .                                                                                                                                                      1,380,507          1,239,372
 Net change in unrealized appreciation/depreciation on investments and
   foreign currency translations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                                                                (2,152,056)          628,898
                                                                                                                                                                                                                                                    — — —
                                                                                                                                                                                                                                                   — — — —             — — —
                                                                                                                                                                                                                                                                      — — — —
   Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . . . . . . .                                                                                                                                                          (692,095)        2,062,310
                                                                                                                                                                                                                                                    — — —
                                                                                                                                                                                                                                                   — — — —             — — —
                                                                                                                                                                                                                                                                      — — — —
Distributions to Shareholders:
  Net investment income
    Class AAA . . . . . . . . . . . . .                             .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .         (72,899)          (329,698)
    Class A . . . . . . . . . . . . . . .                           .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .          (2,091)            (4,835)
    Class B . . . . . . . . . . . . . . .                           .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .            (462)            (2,170)
    Class C . . . . . . . . . . . . . . .                           .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .            (393)            (1,316)
                                                                                                                                                                                                                                                    — — —
                                                                                                                                                                                                                                                   — — — —             — — —
                                                                                                                                                                                                                                                                      — — — —
                                                                                                                                                                                                                                                      (75,845)          (338,019)
                                                                                                                                                                                                                                                    — — —
                                                                                                                                                                                                                                                   — — — —             — — —
                                                                                                                                                                                                                                                                      — — — —
   Net realized gains
     Class AAA . . . .          .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .       (1,326,885)*       (1,071,095)
     Class A . . . . . .        .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .          (38,060)*          (15,708)
     Class B . . . . . .        .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .           (8,409)*           (7,049)
     Class C . . . . . .        .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .           (7,153)*           (4,276)
                                                                                                                                                                                                                                                    — — —
                                                                                                                                                                                                                                                   — — — —             — — —
                                                                                                                                                                                                                                                                      — — — —
                                                                                                                                                                                                                                                    (1,380,507)        (1,098,128)
                                                                                                                                                                                                                                                    — — —
                                                                                                                                                                                                                                                   — — — —             — — —
                                                                                                                                                                                                                                                                      — — — —
   Return of Capital
     Class AAA . . .        .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .          (64,339)*       (1,990,268)
     Class A . . . . .      .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .           (1,838)*          (29,187)
     Class B . . . . .      .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .             (408)*          (13,098)
     Class C . . . . .      .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .             (354)*           (7,945)
                                                                                                                                                                                                                                                    — — —
                                                                                                                                                                                                                                                   — — — —             — — —
                                                                                                                                                                                                                                                                      — — — —
                                                                                                                                                                                                                                                       (66,939)        (2,040,498)
                                                                                                                                                                                                                                                    — — —
                                                                                                                                                                                                                                                   — — — —             — — —
                                                                                                                                                                                                                                                                      — — — —
   Total Distributions to Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                                                                    (1,523,291)        (3,476,645)
                                                                                                                                                                                                                                                    — — —
                                                                                                                                                                                                                                                   — — — —             — — —
                                                                                                                                                                                                                                                                      — — — —
Capital Share Transactions:
   Class AAA . . . . . . . . . . .                          .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .       (3,644,802)        4,461,404
   Class A . . . . . . . . . . . . .                        .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .          (74,213)          516,340
   Class B . . . . . . . . . . . . .                        .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .          (46,859)           75,271
   Class C . . . . . . . . . . . . .                        .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .          103,880            59,788
                                                                                                                                                                                                                                                    — — —
                                                                                                                                                                                                                                                   — — — —             — — —
                                                                                                                                                                                                                                                                      — — — —
   Net Increase (Decrease) in Net Assets from Capital Share Transactions . . . . . . . .                                                                                                                                                            (3,661,994)        5,112,803
                                                                                                                                                                                                                                                    — — —
                                                                                                                                                                                                                                                   — — — —             — — —
                                                                                                                                                                                                                                                                      — — — —
   Redemption Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                                                              24,597             3,506
                                                                                                                                                                                                                                                    — — —
                                                                                                                                                                                                                                                   — — — —             — — —
                                                                                                                                                                                                                                                                      — — — —
  Net Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                                                                       (5,852,783)        3,701,974
Net Assets:
  Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    21,175,893                                                                                                                              17,473,919
                                                                                                                               — — —
                                                                                                                              — — — —                                                                                                                                  — — —
                                                                                                                                                                                                                                                                      — — — —
  End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,323,110                                                                                                                             $21,175,893
                                                                                                                               — — —
                                                                                                                              — — — —
                                                                                                                              — — — —
                                                                                                                               — — —                                                                                                                                   — — —
                                                                                                                                                                                                                                                                      — — — —
                                                                                                                                                                                                                                                                       — — —
                                                                                                                                                                                                                                                                      — — — —
*Based on fiscal year to date book income. Amounts are subject to change and recharacterization at fiscal year end.




                                                                                                    See accompanying notes to financial statements.

                                                                                                                                                                            7
The Gabelli Global Convertible Securities Fund
Notes to Financial Statements (Unaudited)

1. Organization. The Gabelli Global Convertible Securities Fund (the “Fund”), a series of Gabelli Global Series
Funds, Inc. (the “Corporation”), was organized on July 16, 1993 as a Maryland corporation. The Fund is a non-
diversified, open-end management investment company registered under the Investment Company Act of
1940, as amended (the “1940 Act”), and one of four separately managed portfolios (collectively, the “Portfolios”)
of the Corporation. The Fund’s primary objective is to obtain a high level of total return through a combination
of income and capital appreciation. The Fund commenced investment operations on February 3, 1994.
2. Significant Accounting Policies. The preparation of financial statements in accordance with U.S. generally
accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Fund in the preparation of its
financial statements.
Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or
traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the
last quoted sale price or a market’s official closing price as of the close of business on the day the securities
are being valued. If there were no sales that day, the security is valued at the average of the closing bid and
asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid
price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently
available price or, if the Board of Directors (the “Board”) so determines, by such other method as the Board
shall determine in good faith, to reflect its fair market value. Portfolio securities traded on more than one
national securities exchange or market are valued according to the broadest and most representative market,
as determined by Gabelli Funds, LLC (the “Adviser”).
Portfolio securities primarily traded on foreign markets are generally valued at the preceding closing values of
such securities on their respective exchanges or if after the close of the foreign markets, but prior to the close
of business on the day the securities are being valued, market conditions change significantly, certain foreign
securities may be fair valued pursuant to procedures established by the Board. Debt instruments that are not
credit impaired with remaining maturities of 60 days or less are valued at amortized cost, unless the Board
determines such amount does not reflect the securities’ fair value, in which case these securities will be valued
at their fair value as determined by the Board. Debt instruments having a maturity greater than 60 days for
which market quotations are readily available are valued at the latest average of the bid and asked prices. If
there were no asked prices quoted on such day, the security is valued using the closing bid price. Futures
contracts are valued at the closing settlement price of the exchange or board of trade on which the applicable
contract is traded.
Securities and assets for which market quotations are not readily available are valued at their fair value as
determined in good faith under procedures established by and under the general supervision of the Board. Fair
valuation methodologies and procedures may include, but are not limited to: analysis and review of available
financial and non-financial information about the company; comparisons to the valuation and changes in
valuation of similar securities, including a comparison of foreign securities to the equivalent U.S. dollar value
ADR securities at the close of the U.S. exchange; and evaluation of any other information that could be
indicative of the value of the security.


                                                        8
The Gabelli Global Convertible Securities Fund
Notes to Financial Statements (Continued) (Unaudited)

Repurchase Agreements. The Fund may enter into repurchase agreements with primary government
securities dealers recognized by the Federal Reserve Board, with member banks of the Federal Reserve
System or with other brokers or dealers that meet credit guidelines established by the Adviser and reviewed by
the Board. Under the terms of a typical repurchase agreement, the Fund takes possession of an underlying
debt obligation subject to an obligation of the seller to repurchase, and the Fund to resell, the obligation at an
agreed-upon price and time, thereby determining the yield during the Fund’s holding period. The Fund will
always receive and maintain securities as collateral whose market value, including accrued interest, will be at
least equal to 102% of the dollar amount invested by the Fund in each agreement. The Fund will make payment
for such securities only upon physical delivery or upon evidence of book entry transfer of the collateral to the
account of the custodian. To the extent that any repurchase transaction exceeds one business day, the value
of the collateral is marked-to-market on a daily basis to maintain the adequacy of the collateral. If the seller
defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to
the seller of the security, realization of the collateral by the Fund may be delayed or limited.
Futures Contracts. The Fund may engage in futures contracts for the purpose of hedging against changes in
the value of its portfolio securities and in the value of securities it intends to purchase. Upon entering into a
futures contract, the Fund is required to deposit with the broker an amount of cash or cash equivalents equal
to a certain percentage of the contract amount. This is known as the “initial margin”. Subsequent payments
(“variation margin”) are made or received by the Fund each day, depending on the daily fluctuation of the value
of the contract. The daily changes in the contract are included in unrealized gains or losses. The Fund
recognizes a realized gain or loss when the contract is closed. At June 30, 2005, there were no open futures
contracts.
There are several risks in connection with the use of futures contracts as a hedging device. The change in value
of futures contracts primarily corresponds with the value of their underlying instruments, which may not
correlate with the change in value of the hedged investments. In addition, there is the risk that the Fund may
not be able to enter into a closing transaction because of an illiquid secondary market.
Forward Foreign Exchange Contracts. The Fund may engage in forward foreign exchange contracts for
hedging a specific transaction with respect to either the currency in which the transaction is denominated or
another currency as deemed appropriate by the Adviser. Forward foreign exchange contracts are valued at the
forward rate and are marked-to-market daily. The change in market value is included in unrealized
appreciation/depreciation on investments and foreign currency translations. When the contract is closed, the
Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was
opened and the value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate fluctuations in the underlying prices of the
Fund’s portfolio securities, but it does establish a rate of exchange that can be achieved in the future. Although
forward foreign exchange contracts limit the risk of loss due to a decline in the value of the hedged currency,
they also limit any potential gain that might result should the value of the currency increase. In addition, the
Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their
contracts. At June 30, 2005, there were no open forward foreign exchange contracts.



                                                        9
The Gabelli Global Convertible Securities Fund
Notes to Financial Statements (Continued) (Unaudited)

Foreign Currency Translations. The books and records of the Fund are maintained in United States (U.S.) dollars.
Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at the exchange rates
prevailing at the end of the period, and purchases and sales of investment securities, income and expenses are
translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses,
which result from changes in foreign exchange rates and/or changes in market prices of securities, have been
included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized
foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and
losses between trade date and settlement date on investment securities transactions, foreign currency transactions
and the difference between the amounts of interest and dividends recorded on the books of the Fund and the
amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates
between the initial trade date and subsequent sale trade date is included in realized gain/(loss) on investments.
Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in securities of
foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The
risks include possible revaluation of currencies, the ability to repatriate funds, less complete financial
information about companies and possible future adverse political and economic developments. Moreover,
securities of many foreign issuers and their markets may be less liquid and their prices more volatile than
those of securities of comparable U.S. issuers.
Securities Transactions and Investment Income. Securities transactions are accounted for on the trade date with
realized gain or loss on investments determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned. Premiums and discounts on debt
securities are amortized using the yield to maturity method. Dividend income is recorded on the ex-dividend date.
Determination of Net Asset Value and Calculation of Expenses. Certain administrative expenses are
common to, and allocated among, various affiliated funds. Such allocations are made on the basis of each
Fund’s average net assets or other criteria directly affecting the expenses as determined by the Adviser
pursuant to procedures established by the Board.
In calculating the net asset value per share of each class, investment income, realized and unrealized gains
and losses, redemption fees and expenses other than class specific expenses, are allocated daily to each class
of shares based on the proportion of net assets of each class at the beginning of each day. Distribution
expenses are solely borne by the class incurring the expense.
Dividends and Distributions to Shareholders. Dividends and distributions to shareholders are recorded on
the ex-dividend date. Distributions to shareholders are based on ordinary income and long-term capital gains
as determined in accordance with Federal income tax regulations, which may differ from income and capital
gains as determined under U.S. generally accepted accounting principles. These differences are primarily due
to differing treatments of income and gains on various investment securities and foreign currency transactions,
timing differences and differing characterizations of distributions made by the Fund. Distributions from net
investment income include net realized gains on foreign currency transactions. Distributions made in excess of
current earnings and profits on a tax basis are treated as a non-taxable return of capital.
These book/tax differences are either temporary or permanent in nature. To the extent these differences are
permanent, adjustments are made to the appropriate equity accounts in the period that the differences arise.

                                                          10
The Gabelli Global Convertible Securities Fund
Notes to Financial Statements (Continued) (Unaudited)

For the year ended December 31, 2004, reclassifications were made to decrease accumulated net investment
loss by $140,370 and to decrease accumulated net realized loss on investments and foreign currency
transactions by $942,301, with an offsetting adjustment to additional paid-in capital. These reclassifications
have no impact on the net asset value of the Fund and the calculation of net investment income per share in
the financial highlights excludes these adjustments.
The tax character of distributions paid during the fiscal year ended December 31, 2004 was as follows:
                                                                                                    Year Ended
                                                                                                 December— —2004
                Distributions paid from:                                                         — — — — 31, — —
                                                                                                  ———————
                                                                                                 ————————
                Ordinary income (inclusive of short term
                  capital gains) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      $1,436,147
                Non taxable return of capital . . . . . . . . . . . . . . . . . . . . . .            2,040,498
                                                                                                     ————
                                                                                                      ———
                                                                                                    ————
                Total distributions paid . . . . . . . . . . . . . . . . . . . . . . . . . .        $3,476,645
                                                                                                    ————
                                                                                                     ————
                                                                                                     ————
                                                                                                      ———
                                                                                                      ———
                                                                                                    ————
Provision For Income Taxes. The Fund intends to continue to qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). It is the policy of the
Fund to comply with the requirements of the Code applicable to regulated investment companies and to
distribute substantially all of its net investment company taxable income and net capital gains. Therefore, no
provision for Federal income taxes is required.
Dividends and interest from non-U.S. sources received by the Fund are generally subject to non-U.S.
withholding taxes at rates ranging up to 30%. Such withholding taxes may be reduced or eliminated under the
terms of applicable U.S. income tax treaties, and the Fund intends to undertake any procedural steps required
to claim the benefits of such treaties. If the value of more than 50% of the Fund’s total assets at the close of
any taxable year consists of securities of non-U.S. corporations, the Fund is permitted and may elect to treat
any non-U.S. taxes paid by it as paid by its shareholders.
As of December 31, 2004, the components of accumulated earnings/(losses) on a tax basis were as follows:
                Capital loss carryforward . . . . . . . . . . . . . . . . . . . .      ....         $ (502,405)
                Net unrealized appreciation on investments, foreign
                  receivables and payables . . . . . . . . . . . . . . . . . .         ....          2,610,134
                Other temporary differences . . . . . . . . . . . . . . . . . .        ....            (18,147)
                                                                                                     ————
                                                                                                      ———
                                                                                                    ————
                Total accumulated gain . . . . . . . . . . . . . . . . . . . . . .     ....         $2,089,582
                                                                                                     ————
                                                                                                      ———
                                                                                                    ————
                                                                                                     ————
                                                                                                      ———
                                                                                                    ————
At December 31, 2004, the Fund has net capital loss carryforwards for Federal income tax purposes of
$502,405 which are available to reduce future required distributions of net capital gains to shareholders.
However, to the extent that distributions are in excess of net investment company taxable income and/or net
capital gain, a portion of such excess may be deemed taxable to the extent of the Fund’s earnings and profits
for the taxable year. $502,405 is available through 2010. For the year ended December 31, 2004, the Fund
utilized net capital loss carryforwards of $1,098,128.
The following summarizes the tax cost of investments and related unrealized appreciation/depreciation at
June 30, 2005:
                                                                                        Gross                 Gross       Net Unrealized
                                                                                      Unrealized            Unrealized    Appreciation/
                                                                Cost                 Appreciation          Depreciation   (Depreciation)
                                                                 –—
                                                                —–                    — — ——
                                                                                     — — — – —              — — ——
                                                                                                           — — — – —       — — –——
                                                                                                                          — — —– – —
                Investments . . . . . . . . . . . . .       $14,569,938               $1,124,106            $(664,252)       $459,854
                                                                               11
The Gabelli Global Convertible Securities Fund
Notes to Financial Statements (Continued) (Unaudited)

3. Investment Advisory Agreement. The Fund has entered into an investment advisory agreement (the
“Advisory Agreement”) with the Adviser which provides that the Fund will pay the Adviser a fee, computed daily
and paid monthly, at the annual rate of 1.00% of the value of its average daily net assets. In accordance with
the Advisory Agreement, the Adviser provides a continuous investment program for the Fund’s portfolio,
oversees the administration of all aspects of the Fund’s business and affairs and pays the compensation of all
Officers and Directors of the Fund who are the Adviser’s affiliates. The Adviser has voluntarily agreed to
reimburse expenses of the Fund to the extent necessary to maintain the annualized total operating expenses
(exclusive of interest expense) of 2.00%, 2.00%, 2.75% and 2.75% of average daily net assets for Class AAA,
Class A, Class B and Class C, respectively. For the six months ended June 30, 2005, the Adviser reimbursed
the Fund in the amount of $729. Such amount is not recoverable in future fiscal years.
4. Distribution Plan. The Fund’s Board has adopted a distribution plan (the “Plan”) for each class of shares
pursuant to Rule 12b-1 under the 1940 Act. Gabelli & Company, Inc. (“Gabelli & Company”), an affiliate of the
Adviser, serves as distributor of the Fund. Under the Class AAA, Class A, Class B and Class C Share Plans,
payments are authorized to Gabelli & Company at annual rates of 0.25%, 0.25%, 1.00% and 1.00%,
respectively, of the average daily net assets of those classes, the annual limitations under each Plan. Such
payments are accrued daily and paid monthly.
5. Portfolio Securities. Purchases and proceeds from the sales of securities for the six months ended June 30,
2005, other than short term securities, aggregated $6,552,358 and $11,665,744, respectively.
6. Transactions with Affiliates. During the six months ended June 30, 2005, Gabelli & Company informed the
Fund that it received $1,825 from investors representing commissions (sales charges and underwriting fees)
on sales and redemptions of Fund shares.
7. Line of Credit. The Fund has access to an unsecured line of credit up to $25,000,000 from the custodian
for temporary borrowing purposes. Borrowings under this arrangement bear interest at 0.75% above the
Federal Funds rate on outstanding balances. At June 30, 2005, there was a balance of $275,000 outstanding
from the line of credit.
The average daily amount of borrowings outstanding from the line of credit within the six months ended June 30,
2005 was $190,822 with a weighted average interest rate of 3.69%. The maximum amount borrowed at any time
during the six months ended June 30, 2005 was $1,920,000.
8. Capital Stock Transactions. The Fund offers four classes of shares — Class AAA Shares, Class A Shares,
Class B Shares, and Class C Shares. Class AAA Shares are offered only to investors who acquire them directly
from Gabelli & Company or through selected broker/dealers without a sales charge. Class A Shares are subject to
a maximum front-end sales charge of 5.75%. Class B Shares are subject to a contingent deferred sales charge
(“CDSC”) upon redemption within six years of purchase. The applicable CDSC is equal to a declining percentage
of the lesser of the net asset value per share at the date of the original purchase or at the date of redemption, based
on the length of time held. Class C Shares are subject to a 1% CDSC for one year after purchase. As of July 27,
2004, Class B Shares are available only through exchange of Class B Shares of other Funds distributed by Gabelli
& Company. The Board has approved Class I Shares which have not been offered publicly.
Effective June 15, 2005, the Fund imposed a redemption fee of 2.00% on Class AAA, Class A, Class B and
Class C Shares that are redeemed or exchanged on or before the seventh day after the date of a purchase.
(Prior to June 15, 2005, the Fund imposed a redemption fee on shares that were redeemed or exchanged

                                                          12
The Gabelli Global Convertible Securities Fund
Notes to Financial Statements (Continued) (Unaudited)

within the sixtieth day after the date of a purchase.) The redemption fee is deducted from the proceeds
otherwise payable to the redeeming shareholders and is retained by the Fund. The redemption fees retained
by the Fund during the six months ended June 30, 2005 amounted to $24,597.
The redemption fee does not apply to shares purchased through programs that the Adviser determined to have
appropriate short-term trading policies in place. Additionally, certain recordkeepers for qualified and non-
qualified retirement plans that could not collect the redemption fee at the participant level due to systems
limitations have received an extension to implement such systems.
Transactions in shares of capital stock were as follows:
                                                                                       Six Months Ended
                                                                                          June 30, 2005                       Year Ended
                                                                                           (Unaudited)                    December 31, 2004
                                                                                   ————————————
                                                                                  ————————————                       ————————————
                                                                                                                    ————————————
                                                                                     Shares          Amount            Shares          Amount
                                                                                   ——————
                                                                                  ——————            ——————
                                                                                                   ——————            —————— ———————
                                                                                                                    —————— ———————
                                                                                            Class AAA                         Class AAA
                                                                                   ————————————
                                                                                  ————————————                       ————————————
                                                                                                                    ————————————
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      846,291        $ 5,012,687       1,621,450       $10,337,026
Shares issued upon reinvestment of dividends . . . . . . . .                         213,471           1,239,748        482,014          3,037,994
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         (1,737,120)         (9,897,237)    (1,404,805)        (8,913,616)
                                                                                    — — —
                                                                                  — — —                –— –—
                                                                                                    —– —– —            — — —
                                                                                                                    — — —               – — ——
                                                                                                                                      —— — –
   Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . .            (677,358)       $(3,644,802)        698,659       $ 4,461,404
                                                                                    — — —
                                                                                  — — —
                                                                                    — — —
                                                                                  — — —             —– —– —
                                                                                                       –— –—
                                                                                                       –— –—
                                                                                                    —– —– —         — — —
                                                                                                                       — — —
                                                                                                                    — — —
                                                                                                                       — — —          —— — –
                                                                                                                                        – — ——
                                                                                                                                        – — ——
                                                                                                                                      —— — –
                                                                                             Class A                            Class A
                                                                                   ————————————
                                                                                  ————————————                       ————————————
                                                                                                                    ————————————
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       13,410        $     76,309         87,249       $ 546,490
Shares issued upon reinvestment of dividends . . . . . . . .                           1,952              11,369          3,755             23,269
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            (28,942)           (161,891)        (8,221)           (53,419)
                                                                                    — — —
                                                                                  — — —                –— –—
                                                                                                    —– —– —            — — —
                                                                                                                    — — —               – — ——
                                                                                                                                      —— — –
   Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . .             (13,580)       $ (74,213)           82,783       $ 516,340
                                                                                    — — —
                                                                                  — — —
                                                                                    — — —
                                                                                  — — —             —– —– —
                                                                                                       –— –—
                                                                                                       –— –—
                                                                                                    —– —– —         — — —
                                                                                                                       — — —
                                                                                                                    — — —
                                                                                                                       — — —          —— — –
                                                                                                                                        – — ——
                                                                                                                                        – — ——
                                                                                                                                      —— — –
                                                                                             Class B                            Class B
                                                                                   ————————————
                                                                                  ————————————                       ————————————
                                                                                                                    ————————————
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             —                   —          10,388       $     66,681
Shares issued upon reinvestment of dividends . . . . . . . .                             594        $      3,304          1,567              9,539
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             (9,371)            (50,163)          (159)              (949)
                                                                                    — — —
                                                                                  — — —                –— –—
                                                                                                    —– —– —            — — —
                                                                                                                    — — —               – — ——
                                                                                                                                      —— — –
   Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . .              (8,777)       $ (46,859)           11,796       $     75,271
                                                                                    — — —
                                                                                  — — —
                                                                                    — — —
                                                                                  — — —             —– —– —
                                                                                                       –— –—
                                                                                                       –— –—
                                                                                                    —– —– —         — — —
                                                                                                                       — — —
                                                                                                                    — — —
                                                                                                                       — — —          —— — –
                                                                                                                                        – — ——
                                                                                                                                        – — ——
                                                                                                                                      —— — –
                                                                                             Class C                            Class C
                                                                                   ————————————
                                                                                  ————————————                       ————————————
                                                                                                                    ————————————
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         23,314        $ 125,405             9,896       $     61,575
Shares issued upon reinvestment of dividends . . . . . . . .                             928               5,186          1,486              9,073
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             (4,849)            (26,711)        (1,689)           (10,860)
                                                                                    — — —
                                                                                  — — —                –— –—
                                                                                                    —– —– —            — — —
                                                                                                                    — — —               – — ——
                                                                                                                                      —— — –
   Net increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       19,393        $ 103,880             9,693       $     59,788
                                                                                    — — —
                                                                                  — — —
                                                                                    — — —
                                                                                  — — —             —– —– —
                                                                                                       –— –—
                                                                                                       –— –—
                                                                                                    —– —– —         — — —
                                                                                                                       — — —
                                                                                                                    — — —
                                                                                                                       — — —          —— — –
                                                                                                                                        – — ——
                                                                                                                                        – — ——
                                                                                                                                      —— — –

9. Other Matters. The Adviser and/or affiliates have received subpoenas from the Attorney General of the State
of New York and the SEC requesting information on mutual fund shares trading practices. Gabelli Asset
Management Inc., the Adviser’s parent company, is responding to these requests for documents and testimony.
The Fund does not believe that these matters will have a material adverse effect on the Fund’s financial position
or the results of its operations.
10. Indemnifications. The Fund enters into contracts that contain a variety of indemnifications. The Fund’s
maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or
losses pursuant to these contracts and expects the risk of loss to be remote.
                                                                                        13
The Gabelli Global Convertible Securities Fund
Financial Highlights

Selected data for a share of capital stock outstanding throughout each period:
                                     Income                                                                                                              Ratios to Average
                           from Investment Operations                    Distributions                                                            Net Assets/Supplemental Data
                           — — — — – — — — — — ————————————————————————
                         — — — — —– — — — —                                                                                 —————————————————————————––—————————————————
                                       Net
            Net Asset       Net    Realized and    Total                Net                                       Net Asset         Net Assets      Net        Operating         Operating
   Period    Value,     Investment Unrealized      from        Net    Realized     Return                          Value,             End of   Investment      Expenses          Expenses          Portfolio
   Ended    Beginning     Income Gain (Loss) on Investment Investment Gain on        of       Total    Redemption End of     Total    Period     Income          Before            Net of          Turnover
December 31 of Period    (Loss)(h) Investments Operations Income Investments Capital      Distributions Fees(h)    Period   Return† (in 000’s)    (Loss)   Reimbursement(j) Reimbursement(e)(f)(j)   Rate
—————— ————              ——–—— —————— ————— ————— ————— ———                               ————— ———––— ———— ———— ————— ———–––— ———————–— ——-------------———––— ——––—
Class AAA
 2005(i)      $6.26      $0.02      $(0.19)     $(0.17) $(0.02)       $(0.39) $(0.02)        $(0.43)     $0.01    $ 5.67 (2.5)%         $14,594       0.80%(g)      1.97%(g)         1.96%(g)        34%
 2004          6.77       0.07        0.62        0.69   (0.12)        (0.38)    (0.70)       (1.20)      0.00(d)   6.26 11.7            20,350       1.06          2.06             2.01            60
 2003          6.66       0.07        1.24        1.31   (0.11)           —      (1.09)       (1.20)      0.00(d)   6.77 21.5            17,281       1.12          2.07             2.01            54
 2002          8.29       0.07       (0.50)      (0.43) (0.04)            —      (1.16)       (1.20)        —       6.66 (4.9)            9,316       0.97          2.83             2.83            33
 2001         10.86      (0.09)      (1.28)      (1.37)     —          (0.00)(d) (1.20)       (1.20)        —       8.29 (13.2)           8,288      (0.93)         2.69             2.69            49
 2000         13.88      (0.54)      (1.28)      (1.82)     —          (1.20)       —         (1.20)        —      10.86 (14.0)          10,552      (3.19)         2.64             2.64            89
Class A
 2005(i)      $6.26      $0.02      $(0.18)     $(0.16) $(0.02)       $(0.39) $(0.02)        $(0.43)     $0.01    $ 5.68 (2.4)% $            465      0.82%(g)      1.97%(g)         1.96%(g)        34%
 2004          6.77       0.09        0.60        0.69   (0.11)        (0.36)    (0.73)       (1.20)      0.00(d)   6.26 11.6                598      1.41          2.06             2.01            60
 2003          6.66       0.07        1.24        1.31   (0.11)           —      (1.09)       (1.20)      0.00(d)   6.77 21.5                 86      1.12          2.07             2.01            54
 2002          8.28       0.07       (0.49)      (0.42) (0.04)            —      (1.16)       (1.20)        —       6.66 (4.7)                 2      0.97          2.83             2.83            33
 2001(b)      10.27      (0.09)      (1.10)      (1.19)     —          (0.00)(d) (0.80)       (0.80)        —       8.28 (13.3)                9     (0.93)(g)      2.69(g)          2.69(g)         49
Class B
 2005(i)      $6.01      $0.00(d) $(0.18)       $(0.18) $(0.02)       $(0.39) $(0.02)        $(0.43)     $0.01    $ 5.41 (2.8)% $             72      0.01%(g)      2.71%(g)         2.70%(g)        34%
 2004          6.59       0.03      0.59          0.62   (0.10)        (0.34)    (0.76)       (1.20)      0.00(d)   6.01 10.8                133      0.45          2.81             2.76            60
 2003          6.55       0.03      1.21          1.24   (0.07)           —      (1.13)       (1.20)      0.00(d)   6.59 20.7                 68      0.37          2.82             2.76            54
 2002          8.23       0.02     (0.50)        (0.48) (0.04)            —      (1.16)       (1.20)        —       6.55 (5.6)                24      0.22          3.58             3.58            33
 2001(a)      10.04      (0.16)    (0.75)        (0.91)     —          (0.00)(d) (0.90)       (0.90)        —       8.23 (13.8)                6     (1.68)(g)      3.44(g)          3.44(g)         49
Class C
 2005(i)      $6.09      $0.01      $(0.20)     $(0.19) $(0.02)       $(0.39) $(0.02)        $(0.43)     $0.01    $ 5.48 (2.9)% $            192      0.30%(g)      2.76%(g)         2.74%(g)        34%
 2004          6.66       0.03        0.60        0.63   (0.10)        (0.34)    (0.76)       (1.20)      0.00(d)   6.09 10.9                 95      0.44          2.81             2.76            60
 2003          6.61       0.03        1.22        1.25   (0.07)           —      (1.13)       (1.20)      0.00(d)   6.66 20.7                 39      0.37          2.82             2.76            54
 2002          8.27       0.02       (0.48)      (0.46) (0.04)            —      (1.16)       (1.20)        —       6.61 (5.3)                13      0.22          3.58             3.58            33
 2001(c)       8.58      (0.14)       0.03       (0.11)     —          (0.00)(d) (0.20)       (0.20)        —       8.27 (13.5)                0     (1.68)(g)      3.44(g)          3.44(g)         49

  † Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including
     reinvestment of dividends. Total return for the period of less than one year is not annualized.
(a) From March 28, 2001, the date shares were continuously outstanding.
(b) From May 2, 2001, the date shares were continuously outstanding. Class A shares were outstanding for the period March 13, 2000 through November 30, 2000.
     Financial Highlights are not presented for Class A for the period ending December 31, 2000, as the information for this period is not considered meaningful.
(c) From November 26, 2001, the date shares were continuously outstanding.
(d) Amount represents less than $0.005 per share.
(e) The Fund incurred interest expense during the six months ended June 30, 2005 and years ended December 31, 2004, 2003, 2002 and 2001. If interest
     expense had not been incurred, the ratios of operating expenses to average net assets would have been 1.94%, 2.00%, 2.00%, 2.82% and 2.67% (Class
     AAA), 1.94%, 2.00%, 2.00%, 2.82% and 2.67% (Class A), 2.68%, 2.75%, 2.75%, 3.57% and 3.42% (Class B) and 2.72%, 2.75%, 2.75%, 3.57% and 3.42%
     (Class C), respectively.
 (f) The Fund incurred interest expense during the year ended December 31, 2000. If interest expense had not been incurred, the ratio of operating expenses to
     average net assets would have been 2.46%.
(g) Annualized.
(h) Per share amounts have been calculated using the average shares outstanding method.
 (i) For the six months ended June 30, 2005; unaudited.
 (j) The ratios do not include a reduction of expenses for custodian fee credits on cash balances maintained with the custodian. Including such custodian fee credits,
     the expense ratios for the six months ended June 30, 2005 would have been 1.95% (Class AAA), 1.95% (Class A), 2.69% (Class B) and 2.73% (Class C),
     respectively.
                                                           See accompanying notes to financial statements.
                                                                                                    14
                                     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                                                                                           CONTRARIAN _________________________________
Seeks long term growth of capital through investment        MICRO-CAP ___________________________________              Gabelli Mathers Fund
primarily in the common stocks of established               Westwood Mighty MitesSM Fund                               Seeks long-term capital appreciation in various market
companies which are temporarily out of favor. The           Seeks to invest in micro-cap companies that have           conditions without excessive risk of capital loss.
                                                            market capitalizations of $300 million or less. The        (Class AAA-No-load)
fund’s objective is to identify a catalyst or sequence of                                                                        Portfolio Manager: Henry Van der Eb, CFA
events that will return the company to a higher value.      Fund’s primary objective is long-term capital
                                                            appreciation. (Multiclass)           Team Managed
(Multiclass)                                                                                                           Comstock Capital Value Fund
               Portfolio Manager: Barbara Marcin, CFA
                                                            EQUITY INCOME _______________________________              Seeks capital appreciation and current income. The
                                                            Gabelli Equity Income Fund                                 Fund may use either long or short positions to achieve
Westwood Equity Fund                                                                                                   its objective. (Multiclass)
                                                            Seeks to invest primarily in equity securities with
Seeks to invest primarily in the common stock of well-      above market average yields. The Fund pays monthly                         Portfolio Manager: Martin Weiner, CFA
seasoned companies that have recently reported              dividends and seeks a high level of total return with an
positive earnings surprises and are trading below           emphasis on income. (Multiclass)                           Comstock Strategy Fund
Westwood’s proprietary growth rate estimates. The                         Portfolio Manager: Mario J. Gabelli, CFA     The Fund emphasizes investments in debt securities,
Fund’s primary objective is capital appreciation.                                                                      which maximize total return in light of credit risk,
(Multiclass)         Portfolio Manager: Susan M. Byrne Westwood Balanced Fund                                          interest rate risk, and the risk associated with the
                                                         Seeks to invest in a balanced and diversified portfolio       length of maturity of the debt instrument. (Multiclass)
FOCUSED VALUE ______________________________ of stocks and bonds. The Fund’s primary objective is                                      Portfolio Manager: Martin Weiner, CFA
Gabelli Value Fund                                       both capital appreciation and current income.
Seeks to invest in securities of companies believed to (Multiclass)                                                    QUANTITATIVE_________________________________
be undervalued. The Fund’s primary objective is long-                Co-Portfolio Managers: Susan M. Byrne             Ned Davis Research Asset Allocation Fund
                                                                                             Mark Freeman, CFA         Seeks to achieve returns greater then the weighted
term capital appreciation. (Multiclass)
                Portfolio Manager: Mario J. Gabelli, CFA Westwood Income Fund                                          composite benchmark consisting of 60% in the S&P
                                                                                                                       500 Index and 40% in the Lehman Long Term U.S.
                                                         Seeks to provide a high level of current income as well       Government Bond Index through a flexible asset
SMALL CAP VALUE ____________________________ as long-term capital appreciation by investing in
                                                                                                                       allocation strategy. The Fund’s primary objective is
Gabelli Small Cap Fund                                   income producing equity and fixed income securities.          capital appreciation. (Multiclass)      Team Managed
Seeks to invest primarily in common stock of smaller (Multiclass)            Portfolio Manager: Susan M. Byrne
companies (market capitalizations less than $1                                                                         FIXED INCOME ________________________________
billion) believed to have rapid revenue and earnings     SPECIALTY EQUITY ____________________________                 Westwood Intermediate Bond Fund
growth potential. The Fund’s primary objective is Gabelli Global Convertible Securities Fund                           Seeks to invest in a diversified portfolio of bonds with
capital appreciation. (Multiclass)                       Seeks to invest principally in bonds and preferred            various maturities. The Fund’s primary objective is
               Portfolio Manager: Mario J. Gabelli, CFA stocks which are convertible into common stock of              total return. (Multiclass)
                                                         foreign and domestic companies. The Fund’s primary                           Portfolio Manager: Mark Freeman, CFA
Westwood SmallCap Equity Fund                            objective is total return through a combination of
Seeks to invest primarily in smaller capitalization current income and capital appreciation. (Multiclass)              CASH MANAGEMENT-MONEY MARKET __________
equity securities – market caps of $2.5 billion or less.                                           Team Managed        Gabelli U.S. Treasury Money Market Fund
The Fund’s primary objective is long-term capital Gabelli Global Opportunity Fund                                      Seeks to invest exclusively in short-term U.S. Treasury
appreciation. (Multiclass)               Team Managed Seeks to invest in common stock of companies which               securities. The Fund’s primary objective is to provide
                                                         have rapid growth in revenues and earnings and                high current income consistent with the preservation
Gabelli Woodland Small Cap Value Fund                    potential for above average capital appreciation or are       of principal and liquidity. (No-load)
Seeks to invest primarily in the common stocks of undervalued. The Fund’s primary objective is capital                                    Portfolio Manager: Judith A. Raneri
smaller companies (market capitalizations less than appreciation. (Multiclass)                    Team Managed
                                                                                                                       The Treasurer’s Fund
$1.5 billion) believed to be undervalued with
                                                         SECTOR ______________________________________                 Three money market portfolios designed to generate
shareholder oriented management teams that are Gabelli Global Telecommunications Fund                                  superior returns without compromising portfolio
employing strategies to grow the company’s value. Seeks to invest in telecommunications companies                      safety. U.S. Treasury Money Market seeks to invest
The Fund’s primary objective is capital appreciation. throughout the world – targeting undervalued                     in U.S. Treasury securities and repurchase
(Multiclass)                                             companies with strong earnings and cash flow                  agreements. Tax Exempt Money Market seeks to
              Portfolio Manager: Elizabeth M. Lilly, CFA dynamics. The Fund’s primary objective is capital             invest in municipal securities. Domestic Prime
                                                         appreciation. (Multiclass)               Team Managed         Money Market seeks to invest in prime quality,
GROWTH ______________________________________                                                                          domestic money market instruments.
Gabelli Growth Fund                                      Gabelli Gold Fund                                                       (No-load) Portfolio Manager: Judith A. Raneri
Seeks to invest primarily in large cap stocks believed Seeks to invest in a global portfolio of equity
to have favorable, yet undervalued, prospects for securities of gold mining and related companies. The                 The Global Funds invest in foreign securities which
earnings growth. The Fund’s primary objective is Fund’s objective is long-term capital appreciation.                   involve risks not ordinarily associated with investments
capital appreciation. (Multiclass)                       Investment in gold stocks is considered speculative           in domestic issues, including currency fluctuation,
                Portfolio Manager: Howard F. Ward, CFA and is affected by a variety of world-wide economic,            economic and political risks.
                                                         financial and political factors. (Multiclass)
                                                                               Portfolio Manager: Caesar Bryan         An investment in the above Money Market Funds is
Gabelli International Growth Fund                                                                                      neither insured nor guaranteed by the Federal Deposit
Seeks to invest in the equity securities of foreign Gabelli Utilities Fund                                             Insurance Corporation or any government agency.
issuers with long-term capital appreciation potential. Seeks to provide a high level of total return through a         Although the Funds seek to preserve the value of your
The Fund offers investors global diversification. combination of capital appreciation and current                      investment at $1.00 per share, it is possible to lose
(Multiclass)           Portfolio Manager: Caesar Bryan income. (Multiclass)                       Team Managed         money by investing in the Funds.


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.

                      Board of Directors
Mario J. Gabelli, CFA         John D. Gabelli
Chairman and Chief            Senior Vice President
Executive Officer             Gabelli & Company, Inc.
Gabelli Asset Management Inc.
E. Val Cerutti                    Karl Otto Pöhl
Chief Executive Officer           Former President
Cerutti Consultants, Inc.         Deutsche Bundesbank
Anthony J. Colavita               Werner J. Roeder, MD
                                                                        The
Attorney-at-Law                   Medical Director


                                                                        Gabelli
Anthony J. Colavita, P.C.         Lawrence Hospital
Arthur V. Ferrara                 Anthonie C. van Ekris
Former Chairman and               Managing Director
Chief Executive Officer           BALMAC International, Inc.
Guardian Life Insurance
Company of America                Salvatore J. Zizza
                                  Chairman
                                  Hallmark Electrical Supplies Corp.
                                                                        Global
                                                                        Convertible
                             Officers
Bruce N. Alpert                   James E. McKee
President and Treasurer           Secretary
Peter D. Goldstein
Chief Compliance Officer

                          Distributor
                                                                        Securities
                     Gabelli & Company, Inc.

     Custodian, Transfer Agent and Dividend Agent
            State Street Bank and Trust Company
                                                                        Fund
                       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           SEMI-ANNUAL REPORT
preceded or accompanied by an effective prospectus.
                                                                                 JUNE 30, 2005
GAB441Q205SR

								
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