UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANIES
Investment Company Act file number 811-04719
The GAMCO Westwood Funds
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
Rye, New York 10580-1422
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
(Name and address of agent for service)
registrant’s telephone number, including area code: 1-800-422-3554
Date of fiscal year end: September 30
Date of reporting period: September 30, 2010
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
GAMCO WESTWOOD FUNDS
Mighty MitesSM Fund
SmallCap Equity Fund
Income Fund
Equity Fund
Balanced Fund
Intermediate Bond Fund
ANNUAL REPORT
September 30, 2010
September 30, 2010
GAMCO WESTWOOD FUNDS
(Unaudited)
(Unaudited)
Class AAA Shares | Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Annual Returns – September 30, 2010 (a) | Average Annual Returns – September 30, 2010 (a)(b)(e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current | Current | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expense | Expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratio after | Ratio after | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross | Adviser | Maximum | Gross | Adviser | Maximum | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Since | Expense | Reimburse- | Sales | Since | Expense | Reimburse- | Sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 Year | 5 Year | 10 Year | Inception | Ratio | ments | Charge | 1 Year | 5 Year | 10 Year | Inception | Ratio | ments | Charge | ||||||||||||||||||||||||||||||||||||||||||||||||
Mighty MitesSM | 17.22 | % | 7.29 | % | 8.90 | % | 11.27 | % | 1.67 | % | 1.67 | % | None | 12.24 | % | 6.19 | % | 8.24 | % | 10.72 | % | 1.92 | % | 1.92 | % | 4.00 | % | ||||||||||||||||||||||||||||||||||
SmallCap Equity | 15.17 | 3.66 | (1.42 | ) | 5.76 | 2.80 | 1.50 | None | 10.31 | 2.59 | (1.96 | ) | 5.32 | 3.05 | 1.75 | 4.00 | |||||||||||||||||||||||||||||||||||||||||||||
Income | 9.91 | (1.23 | ) | 7.78 | 6.36 | 2.93 | 1.50 | None | 5.28 | (2.27 | ) | 7.10 | 5.84 | 3.18 | 1.75 | 4.00 | |||||||||||||||||||||||||||||||||||||||||||||
Equity | 6.76 | 0.64 | 1.98 | 9.46 | 1.57 | 1.57 | None | 2.22 | (0.42 | ) | 1.29 | 9.05 | 1.82 | 1.82 | 4.00 | ||||||||||||||||||||||||||||||||||||||||||||||
Balanced | 6.52 | 2.82 | 3.68 | 8.44 | 1.25 | 1.25 | None | 2.02 | 1.72 | 3.00 | 7.94 | 1.50 | 1.50 | 4.00 | |||||||||||||||||||||||||||||||||||||||||||||||
Intermediate Bond | 6.46 | 5.09 | 5.30 | 5.75 | 1.56 | 1.02 | None | 2.25 | 4.12 | 4.78 | 5.47 | 1.66 | 1.12 | 4.00 |
Class B Shares | Class C Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Annual Returns – September 30, 2010 (a)(c)(e) | Average Annual Returns – September 30, 2010 (a)(d)(e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current | Current | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expense | Expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratio after | Ratio after | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross | Adviser | Maximum | Gross | Adviser | Maximum | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Since | Expense | Reimburse- | Sales | Since | Expense | Reimburse- | Sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 Year | 5 Year | 10 Year | Inception | Ratio | ments | Charge | 1 Year | 5 Year | 10 Year | Inception | Ratio | ments | Charge | ||||||||||||||||||||||||||||||||||||||||||||||||
Mighty MitesSM | 11.31 | % | 6.17 | % | 8.14 | % | 10.64 | % | 2.42 | % | 2.42 | % | 5.00 | % | 15.34 | % | 6.51 | % | 8.17 | % | 10.67 | % | 2.42 | % | 2.42 | % | 1.00 | % | |||||||||||||||||||||||||||||||||
SmallCap Equity | 9.26 | 2.55 | (2.10 | ) | 5.22 | 3.55 | 2.25 | 5.00 | 13.30 | 2.92 | (2.14 | ) | 5.18 | 3.55 | 2.25 | 1.00 | |||||||||||||||||||||||||||||||||||||||||||||
Income | Class B Shares have been discontinued. | 8.14 | (1.95 | ) | 7.21 | 5.93 | 3.68 | 2.25 | 1.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | 0.85 | (0.53 | ) | 1.25 | 9.04 | 2.32 | 2.32 | 5.00 | 4.92 | (0.13 | ) | 1.24 | 9.04 | 2.32 | 2.32 | 1.00 | |||||||||||||||||||||||||||||||||||||||||||||
Balanced | 0.66 | 1.65 | 2.92 | 7.92 | 2.00 | 2.00 | 5.00 | 4.66 | 2.03 | 2.97 | 7.95 | 2.00 | 2.00 | 1.00 | |||||||||||||||||||||||||||||||||||||||||||||||
Intermediate Bond | 0.82 | 3.98 | 4.54 | 5.34 | 2.31 | 1.77 | 5.00 | 4.69 | 4.22 | 4.60 | 5.38 | 2.31 | 1.77 | 1.00 |
Class I Shares | ||||||||||||||||||||||||||||
Average Annual Returns – September 30, 2010 (a)(e) | ||||||||||||||||||||||||||||
Current | ||||||||||||||||||||||||||||
Expense | ||||||||||||||||||||||||||||
Ratio after | ||||||||||||||||||||||||||||
Gross | Adviser | Maximum | ||||||||||||||||||||||||||
Since | Expense | Reimburse- | Sales | |||||||||||||||||||||||||
1 Year | 5 Year | 10 Year | Inception | Ratio | ments | Charge | ||||||||||||||||||||||
Mighty MitesSM | 17.52 | % | 7.44 | % | 8.97 | % | 11.33 | % | 1.42 | % | 1.42 | % | None | |||||||||||||||
SmallCap Equity | 15.45 | 3.80 | (1.35 | ) | 5.81 | 2.55 | 1.25 | None | ||||||||||||||||||||
Income | 10.05 | (1.10 | ) | 7.85 | 6.42 | 2.68 | 1.25 | None | ||||||||||||||||||||
Equity | 7.14 | 0.80 | 2.06 | 9.49 | 1.32 | 1.32 | None | |||||||||||||||||||||
Balanced | 6.82 | 2.95 | 3.74 | 8.48 | 1.00 | 1.00 | None | |||||||||||||||||||||
Intermediate Bond | 6.81 | 5.22 | 5.36 | 5.78 | 1.31 | 0.77 | None |
(a) | Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price and reinvestment of distributions and are net of expenses. 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. For the SmallCap Equity, Income, and Intermediate Bond Funds, (and for the Mighty MitesSM Fund through September 30, 2005), the Adviser reimbursed expenses to limit the expense ratio. Had such limitations not been in place, returns would have been lower. The contractual expense limitations are in effect through January 31, 2011 and are renewable annually by the Adviser. Current performance may be lower or higher than the performance data presented. Visit www.tetonadv.com for performance information as of the most recent month end. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Funds before investing. The prospectus contains information about this and other matters and should be read carefully before investing. | |
(b) | Includes the effect of the maximum 4.0% sales charge at the beginning of the period. | |
(c) | Performance results include the deferred sales charges for the Class B Shares upon redemption at the end of the one year and five year periods of 5% and 2%, respectively, of the Fund’s net asset values (“NAV”) per share at the time of purchase or sale, whichever is lower. Class B Shares are not available for new purchases. | |
(d) | Performance results include the deferred sales charge for the Class C Shares upon redemption at the end of the one year period of 1% of the Fund’s NAV per share at the time of purchase or sale, whichever is lower. | |
(e) | The performance of the Class AAA Shares is used to calculate performance for the periods prior to the issuance of Class A Shares, Class B Shares, Class C Shares, and Class I Shares. The 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 performance for the Class I Shares would have been higher due to the lower expenses associated with this class of shares. The inception dates for the Class AAA Shares and the initial issuance dates for the Class A Shares, Class B Shares, Class C Shares, and Class I Shares after which shares remained continuously outstanding are listed below. |
Class AAA Shares | Class A Shares | Class B Shares | Class C Shares | Class I Shares | ||||||||||||||||
Mighty MitesSM | 05/11/98 | 11/26/01 | 06/06/01 | 08/03/01 | 01/11/08 | |||||||||||||||
SmallCap Equity | 04/15/97 | 11/26/01 | 03/27/01 | 11/26/01 | 01/11/08 | |||||||||||||||
Income | 09/30/97 | 05/09/01 | 11/26/01 | 11/26/01 | 01/11/08 | |||||||||||||||
Equity | 01/02/87 | 01/28/94 | 03/27/01 | 02/13/01 | 01/11/08 | |||||||||||||||
Balanced | 10/01/91 | 04/06/93 | 03/27/01 | 09/25/01 | 01/11/08 | |||||||||||||||
Intermediate Bond | 10/01/91 | 07/26/01 | 03/27/01 | 10/22/01 | 01/11/08 |
2
Performance Discussion
Mighty MitesSM Fund
Mighty MitesSM Fund
The GAMCO Westwood Mighty MitesSM Fund’s (the “Fund”) Class AAA Shares rose 17.2% for the year ended September 30, 2010, versus an increase of 7.4% and 13.4% for the Russell MicrocapTM Index and the Russell 2000 Index, respectively.
The economy is still growing, but at a decelerating pace. Real gross domestic product rose at an annualized rate of 1.7% from the first calendar quarter to the second quarter of 2010, according to the Bureau of Economic Analysis. This is down from a 3.7% growth rate in the first quarter of 2010. The September Purchasing Managers’ Index (PMI) was 54.4, indicating an expanding manufacturing economy, however, down 1.9% from August. The United States still faces a daunting 9.6% unemployment rate. On the positive side, second quarter corporate profits are up 37% year over year.
Merger and acquisition activity has been robust, with six announced acquisitions of the Fund’s holdings in the September quarter joining the seven announced in the first half of 2010. The majority of these transactions were by strategic acquirers, as opposed to private equity buyers. Many corporations are sitting on large cash balances, as they retrenched and slashed overhead and headcount during the recession. Instead of hiring for growth, they are finding expansion through acquisition as an attractive alternative.
Top contributors to performance were Keithley Instruments Inc. (1.3% of net assets as of September 30, 2010), Hawk Corp. (1.5%), and CoolBrands International Inc. (1.0%).
Detractors to performance were IRIS International Inc. (1.1%), GenCorp Inc. (1.0%), and Ampco-Pittsburgh Corp. (0.8%).
In an uncertain market, we do what we do best, which is to look for high quality, growing companies with strong balance sheets that are selling at a discount to their Private Market Value (PMV). We seek catalysts that will unlock those values. The portfolio is well positioned with a broad cross section of special situation equities selling at discounts to their PMV.
We appreciate your confidence and trust.
Average Annual Returns Through September 30, 2010 (a) (Unaudited)
Since | ||||||||||||||||||||||||||||
Year to | Inception | |||||||||||||||||||||||||||
Quarter | Date | 1 Year | 3 Year | 5 Year | 10 Year | (5/11/98) | ||||||||||||||||||||||
Mighty MitesSM Fund Class AAA | 10.17 | % | 13.50 | % | 17.22 | % | 1.73 | % | 7.29 | % | 8.90 | % | 11.27 | % | ||||||||||||||
Russell Microcap™ Index (b) | 7.81 | 7.94 | 7.43 | (8.49 | ) | (2.09 | ) | 4.08 | 4.54 | |||||||||||||||||||
Russell 2000 Index | 11.29 | 9.12 | 13.35 | (4.29 | ) | 1.60 | 4.00 | 4.51 |
In the current prospectus, the expense ratio for Class AAA is 1.67%. Class AAA Shares do not have a sales charge.
(a) | Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, reinvestment of distributions, and are net of expenses. 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. The Adviser reimbursed expenses through September 30, 2005 to limit the expense ratios. Had such limitations not been in place, returns would have been lower. Current performance may be higher or lower than the performance data presented. Performance returns for periods of less than one year are not annualized. Visit www.tetonadv.com for performance information as of the most recent month end. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus contains information about this and other matters and should be read carefully before investing. Other shares classes are available and have different performance characteristics. See page 2 for performance of other classes of shares. The Russell Microcap™ Index and the Russell 2000 Index are unmanaged indicators of stock market performance. Investing in small capitalization securities involves special challenges because these securities may trade less frequently and experience more abrupt price movements than large capitalization securities. Dividends are considered reinvested. You cannot invest directly in an index. | |
(b) | Inception date for the Russell Microcap™ Index is July 1, 2000. |
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
THE MIGHTY MITESSM FUND CLASS AAA, THE RUSSELL 2000 INDEX,
AND THE RUSSELL MICROCAPTM INDEX (Unaudited)
THE MIGHTY MITESSM FUND CLASS AAA, THE RUSSELL 2000 INDEX,
AND THE RUSSELL MICROCAPTM INDEX (Unaudited)
* | Past performance is not predictive of future results. The performance tables and graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. | |
** | The Russell Microcap™ Index inception date is July 1, 2000 and the value of the Index prior to July 1, 2000 is that of the Mighty MitesSM Fund (Class AAA). |
3
SmallCap Equity Fund
For the year ended September 30, 2010, the GAMCO Westwood SmallCap Equity Fund’s (the “Fund”) Class AAA Shares appreciated 15.2% versus an increase of 13.4% for the Russell 2000 Index.
At its late September 2010 meeting, the Federal Reserve’s Federal Open Market Committee (FOMC) opened the door to further quantitative easing by changing its policy statement. The FOMC said that it “is prepared to provide additional accommodation if needed to support the economic recovery.” Fed officials are considering using the Federal Reserve’s balance sheet to drive down interest rates and stimulate an economy not growing fast enough to reduce unemployment. This follows a deceleration in GDP to an annualized pace of 1.7% in the second quarter of 2010.
The implications of this policy shift are generally positive for equities. A very accommodative monetary policy has historically been benign for equities and has presaged economic recovery. As a result of the market pullback, most pronounced in May and August, stocks are at decade low valuations. U.S. stock prices are attractive relative to alternatives like corporate bonds and U.S. Treasuries.
Small capitalization equities are especially attractive given inefficiencies created in the most recent market downturn. The wave of merger activity sweeping the financial services industry over the past two years has resulted in significantly reduced research coverage for small to midsized companies. The reduced coverage has led to mispricing in valuations exacerbated by the stock market decline and economic slowdown. Not surprisingly, these cheap prices are attracting the attention of both strategic and financial buyers, as witnessed by the recent accelerating trend of corporate takeovers. The September 2010 quarter was the busiest in two years, with $563 billion of announced transactions. During the quarter, five of our holdings were acquired at premiums: Red Back Mining Inc. was acquired by Kinross Gold Corp., Pactiv Corp. was acquired by Rank Group Inc., Phoenix Technologies Ltd. was acquired by Marlin Equity Partners, LLC., Keithley Instruments Inc. was acquired by Danaher Corp., and New Alliance Bancshares Inc. (0.3% of the Fund’s net assets as September 30, 2010) announced a merger with First Niagara Financial (1.8%).
Among the better performing stocks for the fiscal year were: Brigham Exploration Co. (1.4%), LeCroy Corp. (1.3%), and Knoll Inc. (1.0%).
Some of our weaker performing stocks during the year were: FormFactor Inc. (1.0%), Nara Bancorp Inc. (0.6%), and Goodrich Petroleum Corp. (0.5%).
As bottom up, research driven, value investors, we employ many of the same metrics in the valuation of our portfolio candidates as criteria used by strategic corporate buyers and private equity outfits. Consequently, we stand to benefit from this renewed acquisition activity. Our portfolio comprises a broad cross section of special situation equities across multiple industries with attractive risk reward characteristics. We continue to search for the stocks of undervalued companies with attractive business models and solid fundamentals, run by top notch management teams.
We appreciate your confidence and trust.
Average Annual Returns Through September 30, 2010 (a) (Unaudited)
Since | ||||||||||||||||||||||||||||
Year to | Inception | |||||||||||||||||||||||||||
Quarter | Date | 1 Year | 3 Year | 5 Year | 10 Year | (4/15/97) | ||||||||||||||||||||||
SmallCap Equity Fund Class AAA | 11.24 | % | 9.06 | % | 15.17 | % | (3.76 | )% | 3.66 | % | (1.42 | )% | 5.76 | % | ||||||||||||||
Russell 2000 Index | 11.29 | 9.12 | 13.35 | (4.29 | ) | 1.60 | 4.00 | 6.87 |
In the current prospectus, the gross expense ratio for Class AAA Shares is 2.80%. The net expense ratio is 1.50%, after contractual reimbursements by Teton Advisors, Inc. (the “Adviser”) in place through January 31, 2011. Class AAA Shares do not have a sales charge.
(a) | Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, reinvestment of distributions, and are net of expenses. 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. The Adviser reimbursed expenses to limit the expense ratio. Had such limitation not been in place, returns would have been lower. Current performance may be lower or higher than the performance data presented. Performance returns for periods of less than one year are not annualized. Visit www.tetonadv.com for performance information as of the most recent month end. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus contains information about this and other matters and should be read carefully before investing. Other shares classes are available and have different performance characteristics. See page 2 for performance of other classes of shares. The Russell 2000 Index is an unmanaged index of the 2,000 smallest common stocks. Investing in small capitalization securities involves special challenges because these securities may trade less frequently and experience more abrupt price movements than large capitalization securities. Dividends are considered reinvested. You cannot invest directly in an index. |
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE SMALLCAP EQUITY FUND
CLASS AAA AND THE RUSSELL 2000 INDEX (Unaudited)
CLASS AAA AND THE RUSSELL 2000 INDEX (Unaudited)
* | Past performance is not predictive of future results. The performance tables and graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
4
Income Fund
For the year ended September 30, 2010, the GAMCO Westwood Income Fund’s (the “Fund”) Class AAA Shares rose 9.9% versus an increase of 11.4% for the Lipper Equity Income Fund Average and a 10.2% increase of a stock/bond blend comprised of a 50% blend of each of the 10 Year Treasury Note Index and the S&P 500 Index.
The market sold off early in the Fund’s second fiscal quarter as investors became concerned about the Federal Reserve discount rate tightening, a possible Greek sovereign debt default, and the consequences of the President either succeeding or failing at an ambitious domestic policy agenda. However, policy makers in the U.S. and abroad made clear their willingness to continue to provide liquidity and stimulus in order to ensure continued recovery and err on the side of strength. As a result, comfort with risk came back to the markets which moved higher although the continuing gains had not done much to persuade individual investors who continued to shun the stock market in the quarter, pouring their money into bond funds.
In the Fund’s third fiscal quarter, the stock market closed out a painful period, with losses of 11.3% in the S&P 500 Index and 11.1% in the Dow Jones Industrial Average, two broad measures of the market. Investors looked ahead and had far more doubts about the economy than they had just months ago.
The Fund’s fourth quarter offered strong returns to investors, despite weak economic statistics that presented at best a mixed picture and more often a stagnant economy. The market remained volatile, with the S&P 500’s quarterly return of 11.3% consisting of a 7% rally in July, a decline of 4.5% in August, and a 9% advance in September. Good news was good news, and bad news was interpreted as positive for the stock market because it raised the possibility of even more stimulus and easing. This helped to drive interest rates down below their already astonishingly low levels, forcing investors seeking a return towards the stock market.
Among the better performing stocks for the fiscal year ended September 30, 2010 were: E.I. du Pont de Nemours and Co. (3.8% of net assets as of September 30, 2010), Mead Johnson Nutrition Co. (2.7%), and Apple Inc. (2.7%).
Our weaker performing stocks during the year were: Transocean Ltd. (1.2%), BP plc (0.8%), and Noble Corp. (0.6%).
Notwithstanding the challenges to our economy, we find a number of stocks of companies that we believe will be able to grow both the top and bottom lines and helping us capture returns even in a flat economy. Certainly, strong earnings and growing cash positions, combined with low interest rates, make stocks relatively more attractive than bonds or cash now. However, we are looking not just for relative but absolute returns and we shall continue to invest in those companies that we believe can earn and grow in this environment, and return earnings to shareholders in the form of dividends, share repurchases, and higher share prices.
We appreciate your confidence and trust.
Average Annual Returns Through September 30, 2010 (a) (Unaudited)
Since | ||||||||||||||||||||||||||||
Year to | Inception | |||||||||||||||||||||||||||
Quarter | Date | 1 Year | 3 Year | 5 Year | 10 Year | (9/30/97) | ||||||||||||||||||||||
Income Fund Class AAA | 9.41 | % | 4.86 | % | 9.91 | % | (6.16 | )% | (1.23 | )% | 7.78 | % | 6.36 | % | ||||||||||||||
Blended Index (b) | 7.91 | 9.11 | 10.21 | 1.05 | 3.02 | 3.11 | 4.76 | |||||||||||||||||||||
10 Year Treasury Note Index | 4.51 | 14.30 | 10.24 | 9.25 | 6.68 | 6.64 | 6.29 | |||||||||||||||||||||
S&P 500 Index | 11.30 | 3.91 | 10.18 | (7.15 | ) | (0.64 | ) | (0.43 | ) | 3.23 | ||||||||||||||||||
Lipper Equity Income Fund Average | 11.58 | 5.11 | 11.40 | (6.06 | ) | 1.48 | 2.89 | 3.44 |
In the current prospectus, the gross expense ratio for Class AAA is 2.93%. The net expense ratio is 1.50%, after contractual reimbursements by Teton Advisors, Inc. (the “Adviser”) in place through January 31, 2011. Class AAA Shares do not have a sales charge.
(a) | Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, reinvestment of dividends, and are net of expenses. 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. The Adviser reimbursed expenses to limit the expense ratio. Had such limitation not been in place, returns would have been lower. Current performance may be lower or higher than the performance data presented. Performance returns for periods of less than one year are not annualized. Visit www.tetonadv.com for performance information as of the most recent month end. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus contains information about this and other matters and should be read carefully before investing. Other shares classes are available and have different performance characteristics. See page 2 for performance of other classes of shares. The Standard & Poor’s (“S&P”) 500 Index is an unmanaged indicator of stock market performance. The 10 Year Treasury Note Index is an unmanaged index tracking U.S. Treasury Notes with a 10 year maturity. The Lipper Equity Income Fund Average includes the 30 largest equity funds tracked by Lipper, Inc. Dividends are considered reinvested. You cannot invest directly in an index. | |
(b) | The Blended Index consists of a 50% blend of each of the 10 Year Treasury Note Index and the S&P 500 Index. |
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE
INCOME FUND CLASS AAA, THE BLENDED INDEX, AND THE S&P 500 INDEX (Unaudited)
INCOME FUND CLASS AAA, THE BLENDED INDEX, AND THE S&P 500 INDEX (Unaudited)
* | Past performance is not predictive of future results. The performance tables and graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
5
Equity Fund
For the year ended September 30, 2010, the GAMCO Westwood Equity Fund’s (the “Fund”) Class AAA Shares rose 6.8% versus an increase of 10.2% for the Standard & Poor’s (“S&P”) 500 Index.
The Fund underperformed the benchmark S&P 500 Index by 3.4% for the fiscal year, a result that was primarily attributable to security selection in combination with relative weightings of specific stocks in the Fund vs. the S&P 500 Index. Combining percentage of Fund and performance for the fiscal year, the lowest contributing stocks were in the following sectors: Consumer Discretionary, The Gap Inc. (2.0% of net assets as of September 30, 2010), Consumer Staples, CVS Caremark Corp. (2.1%), and Energy and Utilities EQT Corp. (2.1%).
The sectors and stocks that contributed most to relative performance with strong stock selection were producer durables companies such as Deere & Co. (1.0%) and Cummins Inc., (0.8%), and Financial Services. Topping off the four largest contributors to Fund performance were DIRECTV (2.1%), which reported positive earnings based on good growth in revenue per subscriber and cost management and E. I. du Pont de Nemours and Co. (2.0%).
We remain committed to our investment process that requires an asymmetric return/risk profile for candidate securities and employs disciplined sell criteria. We thank you for your continued confidence.
Average Annual Returns Through September 30, 2010 (a) (Unaudited)
Since | ||||||||||||||||||||||||||||||||||||
Year to | Inception | |||||||||||||||||||||||||||||||||||
Quarter | Date | 1 Year | 3 Year | 5 Year | 10 Year | 15 Year | 20 Year | (1/2/87) | ||||||||||||||||||||||||||||
Equity Fund Class AAA | 11.16 | % | 1.36 | % | 6.76 | % | (8.71 | )% | 0.64 | % | 1.98 | % | 7.21 | % | 8.41 | % | 9.46 | % | ||||||||||||||||||
S&P 500 Index | 11.30 | 3.91 | 10.18 | (7.15 | ) | 0.64 | (0.43 | ) | 6.45 | 9.05 | 9.22 | (b) |
In the current prospectus, the expense ratio for Class AAA Shares is 1.57%. Class AAA Shares do not have a sales charge.
(a) | Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, reinvestment of distributions, and are net of expenses. 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. Performance returns for periods of less than one year are not annualized. Visit www.tetonadv.com for performance information as of the most recent month end. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus contains information about this and other matters and should be read carefully before investing. Other shares classes are available and have different performance characteristics. See page 2 for performance of other classes of shares. The S&P 500 Index is an unmanaged indicator of stock market performance. Dividends are considered reinvested. You cannot invest directly in an index. | |
(b) | The S&P 500 Index since inception performance is as of December 31, 1986. |
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
THE EQUITY FUND CLASS AAA AND THE S&P 500 INDEX (Unaudited)
THE EQUITY FUND CLASS AAA AND THE S&P 500 INDEX (Unaudited)
* | Past performance is not predictive of future results. The performance tables and graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
6
Balanced Fund
For the year ended September 30, 2010, the GAMCO Westwood Balanced Fund’s (the “Fund”) Class AAA Shares rose 6.5%. The balanced benchmark comprised of 60% S&P 500 Stock Index and 40% Barclays Government/Corporate Bond Index increased 9.6%.
The Fund is designed to provide exposure to equities while reducing overall risk through investment in short-to-intermediate term fixed income securities. The equity portion of the Fund underperformed the benchmark S&P 500 Index, a result that was primarily attributable to security selection in combination with relative weightings of specific stocks in the Fund vs. the S&P 500 Index. The bond portion typically invests in high quality notes with lower interest rate sensitivity than a typical bond index, with the objective of dampening the volatility of equity holdings. Top contributing fixed income holdings for the fiscal year were intermediate term notes issued by Freddie Mac: 3.75% due 03/27/19 (1.4% of the Fund’s net assets as of September 30, 2010) and 5.25% due 04/18/16, a Citigroup note 5.5% due 10/15/14 (1.0%), and a U.S. Treasury Inflation-Protected (TIP) note 1.375% due 07/15/18 (1.4%). Bottom performing notes had short maturities: Fannie Mae 3.375% due 05/19/11 (1.1%) and Freddie Mac 4.75% due 12/08/10 (1.3%).
We remain committed to our investment process that requires an asymmetric return/risk profile for candidate securities and employs disciplined sell criteria. We thank you for your continued confidence in the investment team.
Average Annual Returns Through September 30, 2010 (a) (Unaudited)
Since | ||||||||||||||||||||||||||||
Year to | Inception | |||||||||||||||||||||||||||
Quarter | Date | 1 Year | 3 Year | 5 Year | 10 Year | (10/1/91) | ||||||||||||||||||||||
Balanced Fund Class AAA | 7.80 | % | 3.20 | % | 6.52 | % | (2.69 | )% | 2.82 | % | 3.68 | % | 8.44 | % | ||||||||||||||
60% S&P 500 and 40% Barclays Indices (b) | 8.06 | 5.91 | 9.59 | (1.45 | ) | 2.82 | 2.33 | N/A | ||||||||||||||||||||
Barclays Government/Corporate Bond Index | 3.20 | 8.91 | 8.70 | 7.10 | 6.10 | 6.46 | 5.87 | (c) | ||||||||||||||||||||
S&P 500 Index | 11.30 | 3.91 | 10.18 | (7.15 | ) | 0.64 | (0.43 | ) | 7.99 | (d) |
In the current prospectus, the expense ratio for Class AAA Shares is 1.25%. Class AAA Shares do not have a sales charge.
(a) | Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price and reinvestment of distributions and are net of expenses. 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. The Adviser reimbursed expenses in years prior to 1998 to limit the expense ratio. Had such limitation not been in place, returns would have been lower. Current performance may be lower or higher than the performance data presented. Performance returns for periods of less than one year are not annualized. Visit www.tetonadv.com for performance information as of the most recent month end. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus contains information about this and other matters and should be read carefully before investing. Other shares classes are available and have different performance characteristics. See page 2 for performance of other classes of shares. The S&P 500 Index is an unmanaged indicator of stock market performance and the Barclays Government/Corporate Bond Index is a market value weighted index that tracks the total return performance of fixed rate, publicly placed, dollar denominated obligations. Dividends are considered reinvested. You cannot invest directly in an index. | |
(b) | Bonds and equity positions have been combined. | |
(c) | The Barclays Government/Corporate Bond Index inception date was January 1, 1999. | |
(d) | The S&P 500 Index since inception performance is as of September 30, 1991. |
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE BALANCED FUND CLASS AAA,
THE S&P 500 INDEX, AND A COMPOSITE OF 60% OF THE S&P 500 INDEX AND 40% OF
THE BARCLAYS GOVERNMENT/CORPORATE BOND INDEX** (Unaudited)
THE S&P 500 INDEX, AND A COMPOSITE OF 60% OF THE S&P 500 INDEX AND 40% OF
THE BARCLAYS GOVERNMENT/CORPORATE BOND INDEX** (Unaudited)
* | Past performance is not predictive of future results. The performance tables and graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. | |
** | The Barclays Government/Corporate Bond Index inception date is January 1, 1999 and the value of the index prior to January 1, 1999 is that of the Barclays Government/Credit Bond Index. |
7
Intermediate Bond Fund
For the year ended September 30, 2010, the GAMCO Westwood Intermediate Bond Fund’s (the “Fund”) Class AAA Shares rose 6.5% versus an increase of 8.7% for the Barclays Government/Corporate Bond Index.
Across the one to thirty year maturity spectrum, Treasury interest rates or yields ended the fiscal year at lower levels. The thirty year bond yield was 3.68%, the ten year note 2.51%, and the five year 1.26%; yields on shorter term notes were less than 1%, reflecting the flight to quality and deflation concerns during the second half of the fiscal year, accompanied by expectations that the Federal Reserve Board would embark on a second round of security purchases known as quantitative easing. Long maturity bonds (longer than ten years) are generally the most price-sensitive to a decline in yields and therefore exceeded the returns of intermediate notes (ten years or shorter) in a declining rate environment. Long vs. intermediate sector returns for the Barclays Government/Corporate Bond Index were: U.S. Treasury 12.74% vs. 6.53%, U.S. Agency 13.06% vs. 4.80%, and U.S. Corporate 14.35% vs. 11.55%.
The top contributing security was the U.S. Treasury bond 7.125% due 02/15/23 (1.9% of net assets of the Fund as of September 30, 2010), followed by notes from three other issues: Freddie Mac 5.25% due 04/18/16 (2.0%), Citigroup 5.5% due 10/15/14 (1.4%), and Fannie Mae 5.375% due 06/12/17 (1.7%). No security earned a negative return. Bottom contributors were two short-term notes: Fannie Mae 3.375% due 05/19/11 (1.8%) and Hewlett-Packard Co. 2.25% due 05/27/11 (1.0%).
We remain committed to our investment process that requires an asymmetric return/risk profile for candidate securities and employs disciplined sell criteria. We thank you for your continued confidence in the investment team.
Average Annual Returns Through September 30, 2010 (a) (Unaudited)
Since | ||||||||||||||||||||||||||||
Year to | Inception | |||||||||||||||||||||||||||
Quarter | Date | 1 Year | 3 Year | 5 Year | 10 Year | (10/1/91) | ||||||||||||||||||||||
Intermediate Bond Fund Class AAA | 2.57 | % | 6.38 | % | 6.46 | % | 6.34 | % | 5.09 | % | 5.30 | % | 5.75 | % | ||||||||||||||
Barclays Government/Corporate Bond Index | 3.20 | 8.91 | 8.70 | 7.10 | 6.10 | 6.46 | 5.87 | (b) |
In the current prospectus, the gross expense ratio for AAA Shares is 1.56%. The net expense ratio is 1.02%, after contractual reimbursements, by Teton Advisors Inc. (the “Adviser”) in place through January 31, 2011. Class AAA Shares do not have a sales charge.
(a) | Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, investment of distributions, and are net of expenses. 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. The Adviser reimbursed expenses to limit the expense ratio. Had such limitation not been in place, returns would have been lower. Current performance may be lower or higher than the performance data presented. Performance returns for periods of less than one year are not annualized. Visit www.tetonadv.com for performance information as of the most recent month end. The Fund is subject to interest rate and credit risks. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus contains information about this and other matters and should be read carefully before investing. Other shares classes are available and have different performance characteristics. See page 2 for performance of other classes of shares. The Barclays Government/Corporate Bond Index is a market value weighted index that tracks the performance of fixed rate, publicly placed, dollar denominated obligations. Dividends are considered reinvested. You cannot invest directly in an index. | |
(b) | The Barclays Government/Corporate Bond Index inception date was January 1, 1999. |
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE
INTERMEDIATE BOND FUND CLASS AAA AND
THE BARCLAYS GOVERNMENT/CORPORATE BOND INDEX** (Unaudited)
INTERMEDIATE BOND FUND CLASS AAA AND
THE BARCLAYS GOVERNMENT/CORPORATE BOND INDEX** (Unaudited)
* | Past performance is not predictive of future results. The performance tables and graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. | |
** | The Barclays Government/Corporate Bond Index inception date is January 1, 1999 and the value of the index prior to January 1, 1999 is that of the Barclays Government/Credit Bond Index. |
8
Morningstar® Ratings Based on Risk Adjusted Returns as of September 30, 2010 (Unaudited).
Overall Rating | 3 Year Rating | 5 Year Rating | 10 Year Rating | |||||||||||||||||||||||
Morningstar | # of | # of | # of | # of | ||||||||||||||||||||||
FUND | Category | Stars | Funds | Stars | Funds | Stars | Funds | Stars | Funds | |||||||||||||||||
GAMCO Westwood Mighty MitesSM AAA | Small Blend | ***** | 556 | ***** | 556 | ***** | 475 | ***** | 254 | |||||||||||||||||
GAMCO Westwood Mighty MitesSM A | Small Blend | ***** | 556 | ***** | 556 | ***** | 475 | ***** | 254 | |||||||||||||||||
GAMCO Westwood Mighty MitesSM B | Small Blend | ***** | 556 | ***** | 556 | ***** | 475 | ***** | 254 | |||||||||||||||||
GAMCO Westwood Mighty MitesSM C | Small Blend | ***** | 556 | ***** | 556 | ***** | 475 | ***** | 254 | |||||||||||||||||
GAMCO Westwood Mighty MitesSM I | Small Blend | ***** | 556 | ***** | 556 | ***** | 475 | ***** | 254 | |||||||||||||||||
GAMCO Westwood SmallCap Equity AAA | Small Blend | ** | 556 | ** | 556 | *** | 475 | * | 254 | |||||||||||||||||
GAMCO Westwood SmallCap Equity A | Small Blend | *** | 556 | ** | 556 | *** | 475 | * | 254 | |||||||||||||||||
GAMCO Westwood SmallCap Equity B | Small Blend | *** | 556 | ** | 556 | *** | 475 | * | 254 | |||||||||||||||||
GAMCO Westwood SmallCap Equity I | Small Blend | ** | 556 | ** | 556 | *** | 475 | * | 254 | |||||||||||||||||
GAMCO Westwood Income AAA | Large Value | **** | 1,127 | **** | 1,127 | *** | 942 | ***** | 490 | |||||||||||||||||
GAMCO Westwood Income A | Large Value | *** | 1,127 | **** | 1,127 | *** | 942 | ***** | 490 | |||||||||||||||||
GAMCO Westwood Income C | Large Value | *** | 1,127 | **** | 1,127 | *** | 942 | ***** | 490 | |||||||||||||||||
GAMCO Westwood Income I | Large Value | **** | 1,127 | **** | 1,127 | *** | 942 | ***** | 490 | |||||||||||||||||
GAMCO Westwood Equity AAA | Large Blend | **** | 1,723 | *** | 1,723 | **** | 1,422 | **** | 761 | |||||||||||||||||
GAMCO Westwood Equity A | Large Blend | *** | 1,723 | ** | 1,723 | *** | 1,422 | **** | 761 | |||||||||||||||||
GAMCO Westwood Equity B | Large Blend | *** | 1,723 | ** | 1,723 | *** | 1,422 | **** | 761 | |||||||||||||||||
GAMCO Westwood Equity C | Large Blend | *** | 1,723 | ** | 1,723 | *** | 1,422 | **** | 761 | |||||||||||||||||
GAMCO Westwood Equity I | Large Blend | **** | 1,723 | *** | 1,723 | **** | 1,422 | **** | 761 | |||||||||||||||||
GAMCO Westwood Balanced AAA | Moderate Allocation | **** | 939 | *** | 939 | **** | 755 | **** | 413 | |||||||||||||||||
GAMCO Westwood Balanced A | Moderate Allocation | *** | 939 | *** | 939 | *** | 755 | *** | 413 | |||||||||||||||||
GAMCO Westwood Balanced B | Moderate Allocation | *** | 939 | *** | 939 | *** | 755 | *** | 413 | |||||||||||||||||
GAMCO Westwood Balanced C | Moderate Allocation | *** | 939 | *** | 939 | *** | 755 | *** | 413 | |||||||||||||||||
GAMCO Westwood Balanced I | Moderate Allocation | **** | 939 | *** | 939 | **** | 755 | **** | 413 | |||||||||||||||||
GAMCO Westwood Intermediate Bond AAA | Intermediate-Term Bond | *** | 1,009 | *** | 1,009 | *** | 862 | ** | 539 | |||||||||||||||||
GAMCO Westwood Intermediate Bond A | Intermediate-Term Bond | ** | 1,009 | ** | 1,009 | ** | 862 | ** | 539 | |||||||||||||||||
GAMCO Westwood Intermediate Bond B | Intermediate-Term Bond | ** | 1,009 | ** | 1,009 | ** | 862 | * | 539 | |||||||||||||||||
GAMCO Westwood Intermediate Bond C | Intermediate-Term Bond | ** | 1,009 | ** | 1,009 | ** | 862 | * | 539 | |||||||||||||||||
GAMCO Westwood Intermediate Bond I | Intermediate-Term Bond | *** | 1,009 | *** | 1,009 | *** | 862 | ** | 539 |
The Overall Morningstar Rating™ is derived from a weighted average of the performance figures associated with its three, five and ten year (if applicable) Morningstar Rating metrics. Data presented reflects past performance, which is no guarantee of future results. Ratings are for Class AAA, A, B, C, or I Shares; other classes may have different performance characteristics. Unrated classes of fund shares are not listed. For each fund with at least a three year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure (including the effects of sales charges, loads, and redemption fees) that accounts for variation in a fund’s monthly performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of the funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Strong relative performance is not indicative of positive fund returns. © 2010 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Teton Advisors is the investment manager for all GAMCO Westwood Funds. Investors should carefully consider the investment objectives, risks, sales charges and expenses of the fund before investing. Each Fund’s prospectus contains this and other information about the Funds and is available by calling 800-WESTWOOD, online at www.tetonadv.com, or from your financial adviser. The prospectus should be read carefully before investing. Distributed by Gabelli & Company, One Corporate Center, Rye, NY 10580.
9
GAMCO Westwood Funds
Disclosure of Fund Expenses (Unaudited)
Disclosure of Fund Expenses (Unaudited)
For the Six Month Period from April 1, 2010 through September 30, 2010 | Expense Table |
We believe it is important for you to understand the impact of fees and expenses regarding your investment. All mutual funds have operating expenses. As a shareholder of a fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of a fund. When a fund’s expenses are expressed as a percentage of its average net assets, this figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.
The Expense Table below illustrates your Fund’s costs in two ways:
Actual Fund Return: This section provides information about actual account values and actual expenses. You may use this section to help you to estimate the actual expenses that you paid over the period after any fee waivers and expense reimbursements. The “Ending Account Value” shown is derived from the Fund’s actual return during the past six months, and the “Expenses Paid During Period” shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your Fund under the heading “Expenses Paid During Period” to estimate the expenses you paid during this period.
Hypothetical 5% Return: This section provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio. It assumes a hypothetical annualized return of 5% before expenses during the period shown. In this case — because the hypothetical return used is not the Fund’s actual return — the results do not apply to your investment and you cannot use the hypothetical account value and expense to estimate the actual ending account balance or expenses you paid for the period. This example is useful in making comparisons of the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads), redemption fees, or exchange fees, if any, which are described in the Prospectus. If these costs were applied to your account, your costs would be higher. Therefore, the 5% hypothetical return is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. The “Annualized Expense Ratio” represents the actual expenses for the last six months and may be different from the expense ratio in the Financial Highlights which is for the year ended September 30, 2010.
Beginning | Ending | Annualized | Expenses | |||||||||||||
Account Value | Account Value | Expense | Paid During | |||||||||||||
4/01/10 | 9/30/10 | Ratio | Period* | |||||||||||||
GAMCO Westwood Mighty MitesSM Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 1,051.90 | 1.58 | % | $ | 8.13 | ||||||||
Class A | $ | 1,000.00 | $ | 1,050.60 | 1.83 | % | $ | 9.41 | ||||||||
Class B | $ | 1,000.00 | $ | 1,047.20 | 2.35 | % | $ | 12.06 | ||||||||
Class C | $ | 1,000.00 | $ | 1,047.50 | 2.32 | % | $ | 11.91 | ||||||||
Class I | $ | 1,000.00 | $ | 1,052.90 | 1.33 | % | $ | 6.84 | ||||||||
Hypothetical 5% Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 1,017.15 | 1.58 | % | $ | 7.99 | ||||||||
Class A | $ | 1,000.00 | $ | 1,015.89 | 1.83 | % | $ | 9.25 | ||||||||
Class B | $ | 1,000.00 | $ | 1,013.29 | 2.35 | % | $ | 11.86 | ||||||||
Class C | $ | 1,000.00 | $ | 1,013.44 | 2.32 | % | $ | 11.71 | ||||||||
Class I | $ | 1,000.00 | $ | 1,018.40 | 1.33 | % | $ | 6.73 | ||||||||
GAMCO Westwood SmallCap Equity Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 992.60 | 1.50 | % | $ | 7.49 | ||||||||
Class A | $ | 1,000.00 | $ | 991.70 | 1.75 | % | $ | 8.74 | ||||||||
Class B | $ | 1,000.00 | $ | 989.00 | 2.25 | % | $ | 11.22 | ||||||||
Class C | $ | 1,000.00 | $ | 988.90 | 2.25 | % | $ | 11.22 | ||||||||
Class I | $ | 1,000.00 | $ | 994.10 | 1.25 | % | $ | 6.25 | ||||||||
Hypothetical 5% Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 1,017.55 | 1.50 | % | $ | 7.59 | ||||||||
Class A | $ | 1,000.00 | $ | 1,016.29 | 1.75 | % | $ | 8.85 | ||||||||
Class B | $ | 1,000.00 | $ | 1,013.79 | 2.25 | % | $ | 11.36 | ||||||||
Class C | $ | 1,000.00 | $ | 1,013.79 | 2.25 | % | $ | 11.36 | ||||||||
Class I | $ | 1,000.00 | $ | 1,018.80 | 1.25 | % | $ | 6.33 | ||||||||
GAMCO Westwood Income Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 1,002.80 | 1.50 | % | $ | 7.53 | ||||||||
Class A | $ | 1,000.00 | $ | 1,002.20 | 1.75 | % | $ | 8.78 | ||||||||
Class C | $ | 1,000.00 | $ | 999.80 | 2.25 | % | $ | 11.28 | ||||||||
Class I | $ | 1,000.00 | $ | 1,004.20 | 1.25 | % | $ | 6.28 | ||||||||
Hypothetical 5% Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 1,017.55 | 1.50 | % | $ | 7.59 | ||||||||
Class A | $ | 1,000.00 | $ | 1,016.29 | 1.75 | % | $ | 8.85 | ||||||||
Class C | $ | 1,000.00 | $ | 1,013.79 | 2.25 | % | $ | 11.36 | ||||||||
Class I | $ | 1,000.00 | $ | 1,018.80 | 1.25 | % | $ | 6.33 | ||||||||
GAMCO Westwood Equity Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 955.60 | 1.54 | % | $ | 7.55 | ||||||||
Class A | $ | 1,000.00 | $ | 954.20 | 1.79 | % | $ | 8.77 | ||||||||
Class B | $ | 1,000.00 | $ | 951.00 | 2.29 | % | $ | 11.20 | ||||||||
Class C | $ | 1,000.00 | $ | 950.70 | 2.29 | % | $ | 11.20 | ||||||||
Class I | $ | 1,000.00 | $ | 956.80 | 1.29 | % | $ | 6.33 | ||||||||
Hypothetical 5% Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 1,017.35 | 1.54 | % | $ | 7.79 | ||||||||
Class A | $ | 1,000.00 | $ | 1,016.09 | 1.79 | % | $ | 9.05 | ||||||||
Class B | $ | 1,000.00 | $ | 1,013.59 | 2.29 | % | $ | 11.56 | ||||||||
Class C | $ | 1,000.00 | $ | 1,013.59 | 2.29 | % | $ | 11.56 | ||||||||
Class I | $ | 1,000.00 | $ | 1,018.60 | 1.29 | % | $ | 6.53 | ||||||||
GAMCO Westwood Balanced Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 991.80 | 1.24 | % | $ | 6.19 | ||||||||
Class A | $ | 1,000.00 | $ | 989.60 | 1.49 | % | $ | 7.43 | ||||||||
Class B | $ | 1,000.00 | $ | 987.20 | 1.99 | % | $ | 9.91 | ||||||||
Class C | $ | 1,000.00 | $ | 987.30 | 1.99 | % | $ | 9.91 | ||||||||
Class I | $ | 1,000.00 | $ | 992.30 | 0.99 | % | $ | 4.94 | ||||||||
Hypothetical 5% Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 1,018.85 | 1.24 | % | $ | 6.28 | ||||||||
Class A | $ | 1,000.00 | $ | 1,017.60 | 1.49 | % | $ | 7.54 | ||||||||
Class B | $ | 1,000.00 | $ | 1,015.09 | 1.99 | % | $ | 10.05 | ||||||||
Class C | $ | 1,000.00 | $ | 1,015.09 | 1.99 | % | $ | 10.05 | ||||||||
Class I | $ | 1,000.00 | $ | 1,020.10 | 0.99 | % | $ | 5.01 | ||||||||
GAMCO Westwood Intermediate Bond Fund | ||||||||||||||||
Actual Fund Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 1,052.00 | 1.00 | % | $ | 5.14 | ||||||||
Class A | $ | 1,000.00 | $ | 1,051.50 | 1.10 | % | $ | 5.66 | ||||||||
Class B | $ | 1,000.00 | $ | 1,048.80 | 1.75 | % | $ | 8.99 | ||||||||
Class C | $ | 1,000.00 | $ | 1,048.40 | 1.75 | % | $ | 8.99 | ||||||||
Class I | $ | 1,000.00 | $ | 1,053.30 | 0.75 | % | $ | 3.86 | ||||||||
Hypothetical 5% Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 1,020.05 | 1.00 | % | $ | 5.06 | ||||||||
Class A | $ | 1,000.00 | $ | 1,019.55 | 1.10 | % | $ | 5.57 | ||||||||
Class B | $ | 1,000.00 | $ | 1,016.29 | 1.75 | % | $ | 8.85 | ||||||||
Class C | $ | 1,000.00 | $ | 1,016.29 | 1.75 | % | $ | 8.85 | ||||||||
Class I | $ | 1,000.00 | $ | 1,021.31 | 0.75 | % | $ | 3.80 |
* | 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 (183 days), then divided by 365. |
10
Summary of Portfolio Holdings (Unaudited)
The following tables present portfolio holdings as a percent of net assets as of September 30, 2010:
GAMCO Westwood Mighty MitesSM Fund
U.S. Treasury Bills | 21.6 | % | ||
Health Care | 8.3 | % | ||
Electronics | 7.7 | % | ||
Diversified Industrial | 7.1 | % | ||
Computer Software and Services | 4.7 | % | ||
Equipment and Supplies | 4.3 | % | ||
Business Services | 4.2 | % | ||
Financial Services | 3.9 | % | ||
Specialty Chemicals | 3.6 | % | ||
Automotive: Parts and Accessories | 3.3 | % | ||
Broadcasting | 2.8 | % | ||
Retail | 2.6 | % | ||
Publishing | 2.2 | % | ||
Consumer Products | 2.2 | % | ||
Restaurants | 2.0 | % | ||
Hotels and Gaming | 1.7 | % | ||
Aviation: Parts and Services | 1.7 | % | ||
Aerospace | 1.5 | % | ||
Food and Beverage | 1.4 | % | ||
Energy and Utilities: Water | 1.4 | % | ||
Machinery | 1.1 | % | ||
Energy and Utilities: Natural Gas | 0.9 | % | ||
Real Estate | 0.9 | % | ||
Communications Equipment | 0.9 | % | ||
Semiconductors | 0.9 | % | ||
Telecommunications | 0.8 | % | ||
Energy and Utilities: Electric | 0.7 | % | ||
Educational Services | 0.6 | % | ||
Building and Construction | 0.6 | % | ||
Energy and Utilities: Integrated | 0.5 | % | ||
Energy and Utilities: Services | 0.5 | % | ||
Manufactured Housing and Recreational Vehicles | 0.5 | % | ||
Consumer Services | 0.4 | % | ||
Transportation | 0.3 | % | ||
Automotive | 0.3 | % | ||
Energy and Utilities: Oil | 0.2 | % | ||
Environmental Control | 0.2 | % | ||
Metals and Mining | 0.2 | % | ||
Entertainment | 0.2 | % | ||
Commercial Services | 0.2 | % | ||
Energy and Utilities: Alternative Energy | 0.1 | % | ||
Paper and Forest Products | 0.1 | % | ||
Agriculture | 0.1 | % | ||
Closed-End Business Development Company | 0.1 | % | ||
Airlines | 0.0 | % | ||
Cable | 0.0 | % | ||
Other Assets and Liabilities (Net) | 0.5 | % | ||
100.0 | % | |||
GAMCO Westwood SmallCap Equity Fund
Electronics | 15.4 | % | ||
Financial Services | 14.0 | % | ||
Semiconductors | 12.0 | % | ||
Computer Software and Services | 6.5 | % | ||
Energy and Utilities | 6.3 | % | ||
Health Care | 5.5 | % | ||
Equipment and Supplies | 4.8 | % | ||
Diversified Industrial | 3.4 | % | ||
Business Services | 3.4 | % | ||
Machinery | 3.3 | % | ||
Communications Equipment | 3.0 | % | ||
Specialty Chemicals | 2.5 | % | ||
Retail | 2.5 | % | ||
Aerospace | 2.4 | % | ||
Automotive | 1.9 | % | ||
Computer Hardware | 1.9 | % | ||
U.S. Treasury Bills | 1.9 | % | ||
Consumer Products | 1.4 | % | ||
Publishing | 1.0 | % | ||
Metals and Mining | 0.9 | % | ||
Entertainment | 0.9 | % | ||
Building and Construction | 0.9 | % | ||
Automotive: Parts and Accessories | 0.7 | % | ||
Telecommunications | 0.6 | % | ||
Aviation: Parts and Services | 0.5 | % | ||
Educational Services | 0.4 | % | ||
Commercial Services | 0.4 | % | ||
Food and Beverage | 0.4 | % | ||
Transportation | 0.3 | % | ||
Restaurants | 0.3 | % | ||
Real Estate | 0.1 | % | ||
Consumer Services | 0.0 | % | ||
Other Assets and Liabilities (Net) | 0.5 | % | ||
100.0 | % | |||
GAMCO Westwood Income Fund
Financial Services | 19.8 | % | ||
Food and Beverage | 14.6 | % | ||
Health Care | 8.2 | % | ||
Telecommunications | 7.4 | % | ||
Energy and Utilities: Oil | 7.0 | % | ||
U.S. Treasury Bills | 6.7 | % | ||
Energy and Utilities: Services | 4.9 | % | ||
Specialty Chemicals | 4.9 | % | ||
Diversified Industrial | 3.5 | % | ||
Banking | 3.2 | % | ||
Energy and Utilities: Natural Gas | 3.2 | % | ||
Computer Hardware | 3.2 | % | ||
Electronics | 2.9 | % | ||
Energy and Utilities: Water | 2.8 | % | ||
Broadcasting | 2.8 | % | ||
Automotive: Parts and Accessories | 1.5 | % | ||
Retail | 1.2 | % | ||
Energy and Utilities: Integrated | 0.9 | % | ||
Agriculture | 0.6 | % | ||
Computer Software and Services | 0.4 | % | ||
Business Services | 0.2 | % | ||
Other Assets and Liabilities (Net) | 0.1 | % | ||
100.0 | % | |||
11
Summary of Portfolio Holdings (Continued) (Unaudited)
GAMCO Westwood Equity Fund
Financial Services | 12.3 | % | ||
Health Care | 12.2 | % | ||
Energy: Oil | 9.2 | % | ||
Banking | 7.7 | % | ||
Energy: Natural Gas | 6.2 | % | ||
Computer Software and Services | 6.1 | % | ||
Retail | 5.2 | % | ||
Communications Equipment | 4.2 | % | ||
Cable and Satellite | 4.2 | % | ||
Energy: Integrated | 3.9 | % | ||
Consumer Products | 3.2 | % | ||
Diversified Industrial | 3.1 | % | ||
Computer Hardware | 3.1 | % | ||
Aerospace | 3.0 | % | ||
Telecommunications | 2.5 | % | ||
Machinery | 2.2 | % | ||
Transportation | 2.1 | % | ||
Specialty Chemicals | 2.0 | % | ||
Entertainment | 1.9 | % | ||
Energy: Services | 1.2 | % | ||
Metals and Mining | 1.0 | % | ||
Mutual Funds | 1.0 | % | ||
Food and Beverage | 0.9 | % | ||
Electronics | 0.9 | % | ||
Automotive | 0.7 | % | ||
Other Assets and Liabilities (Net) | 0.0 | % | ||
100.0 | % | |||
GAMCO Westwood Balanced Fund
U.S. Government Agency Obligations | 12.4 | % | ||
U.S. Government Obligations | 10.6 | % | ||
Financial Services | 8.1 | % | ||
Banking | 8.1 | % | ||
Health Care | 7.5 | % | ||
Energy: Oil | 7.3 | % | ||
Energy: Natural Gas | 4.5 | % | ||
Computer Software and Services | 4.4 | % | ||
Retail | 3.1 | % | ||
Mutual Funds | 3.1 | % | ||
Diversified Industrial | 2.9 | % | ||
Energy: Integrated | 2.9 | % | ||
Cable and Satellite | 2.5 | % | ||
Communications Equipment | 2.4 | % | ||
Transportation | 2.3 | % | ||
Consumer Products | 2.0 | % | ||
Computer Hardware | 1.9 | % | ||
Telecommunications | 1.9 | % | ||
Aerospace | 1.8 | % | ||
Electronics | 1.4 | % | ||
Food and Beverage | 1.3 | % | ||
Machinery | 1.3 | % | ||
Metals and Mining | 1.3 | % | ||
Specialty Chemicals | 1.3 | % | ||
Entertainment | 1.1 | % | ||
Wireless Communications | 0.7 | % | ||
Energy: Services | 0.7 | % | ||
Real Estate Investment Trusts | 0.6 | % | ||
Automotive | 0.4 | % | ||
Other Assets and Liabilities (Net) | 0.2 | % | ||
100.0 | % | |||
GAMCO Westwood Intermediate Bond Fund
Corporate Bonds | 36.8 | % | ||
U.S. Government Obligations | 31.9 | % | ||
U.S. Government Agency Obligations | 27.2 | % | ||
Short-Term Investments | 6.7 | % | ||
Other Assets and Liabilities (Net) | (2.6 | )% | ||
100.0 | % | |||
The GAMCO Westwood Funds (the “Funds”) file a complete schedule of portfolio holdings with the Securities and Exchange Commission (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 ended June 30, 2010. Shareholders may obtain this information at www.tetonadv.com or by calling the Fund at 1-800-WESTWOOD. The Funds’ Form N-Q is available on the SEC’s website at www.sec.gov and may also be reviewed and copied at the SEC’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
Each Fund files Form N-PX with its complete proxy voting record for the twelve months ended June 30th, no later than August 31st of each year. A description of the Funds’ proxy voting policies, procedures, and how the Funds voted proxies relating to portfolio securities are available without charge, upon request, by (i) calling 1-800-WESTWOOD; (ii) writing to The GAMCO Westwood Funds at One Corporate Center, Rye, NY 10580-1422; and (iii) visiting the SEC’s website at www.sec.gov.
12
GAMCO Westwood Mighty MitesSM Fund
Schedule of Investments — September 30, 2010
Schedule of Investments — September 30, 2010
Market | ||||||||||||
Shares | Cost | Value | ||||||||||
COMMON STOCKS — 77.7% | ||||||||||||
Aerospace — 1.5% | ||||||||||||
30,000 | Ducommun Inc. | $ | 639,415 | $ | 653,400 | |||||||
249,900 | Herley Industries Inc.† | 3,336,355 | 4,123,350 | |||||||||
139,400 | Innovative Solutions & Support Inc.† | 726,215 | 681,666 | |||||||||
4,701,985 | 5,458,416 | |||||||||||
Agriculture — 0.1% | ||||||||||||
225 | J.G. Boswell Co. | 144,675 | 144,000 | |||||||||
14,500 | Limoneira Co. | 310,810 | 292,030 | |||||||||
455,485 | 436,030 | |||||||||||
Airlines — 0.0% | ||||||||||||
5,000 | AirTran Holdings Inc.† | 36,675 | 36,750 | |||||||||
5,000 | ExpressJet Holdings Inc.† | 33,575 | 33,350 | |||||||||
8,000 | Pinnacle Airlines Corp.† | 20,239 | 43,440 | |||||||||
90,489 | 113,540 | |||||||||||
Automotive — 0.3% | ||||||||||||
128,000 | Wabash National Corp.† | 241,450 | 1,035,520 | |||||||||
Automotive: Parts and Accessories — 3.1% | ||||||||||||
100,000 | Dana Holding Corp.† | 562,671 | 1,232,000 | |||||||||
20,000 | Federal-Mogul Corp.† | 290,749 | 378,200 | |||||||||
188,500 | Midas Inc.† | 1,803,753 | 1,434,485 | |||||||||
83,800 | Modine Manufacturing Co.† | 435,090 | 1,086,886 | |||||||||
9,000 | Puradyn Filter Technologies Inc.† | 3,854 | 1,998 | |||||||||
223,000 | Standard Motor Products Inc. | 1,739,500 | 2,348,190 | |||||||||
115,000 | Strattec Security Corp.† | 1,911,982 | 2,868,100 | |||||||||
68,000 | Superior Industries International Inc. | 1,056,506 | 1,175,040 | |||||||||
40,000 | Tenneco Inc.† | 124,690 | 1,158,800 | |||||||||
7,928,795 | 11,683,699 | |||||||||||
Aviation: Parts and Services — 1.7% | ||||||||||||
9,200 | Astronics Corp.† | 116,037 | 160,540 | |||||||||
768,800 | GenCorp Inc.† | 3,009,257 | 3,782,496 | |||||||||
90,015 | Kaman Corp. | 1,171,359 | 2,359,293 | |||||||||
4,296,653 | 6,302,329 | |||||||||||
Broadcasting — 2.8% | ||||||||||||
230,000 | Acme Communications Inc.† | 377,901 | 248,400 | |||||||||
133,400 | Beasley Broadcast Group Inc., Cl. A† | 612,598 | 705,686 | |||||||||
51,900 | Crown Media Holdings Inc., Cl. A† | 360,918 | 124,041 | |||||||||
5,000 | Cumulus Media Inc., Cl. A† | 3,580 | 14,050 | |||||||||
73,800 | Entercom Communications Corp., Cl. A† | 57,010 | 580,068 | |||||||||
15,000 | Equity Media Holdings Corp.† | 44,866 | 14 | |||||||||
116,714 | Fisher Communications Inc.† | 2,160,145 | 2,034,325 | |||||||||
924 | Granite Broadcasting Corp.† (a) | 24,780 | 1 | |||||||||
606,800 | Gray Television Inc.† | 384,242 | 1,219,668 | |||||||||
110,000 | LIN TV Corp., Cl. A† | 125,349 | 488,400 | |||||||||
461,547 | Media General Inc., Cl. A† | 1,702,537 | 4,135,461 | |||||||||
213,000 | Salem Communications Corp., Cl. A† | 833,934 | 632,610 | |||||||||
50,000 | Sinclair Broadcast Group Inc., Cl. A† | 89,853 | 351,000 | |||||||||
6,777,713 | 10,533,724 | |||||||||||
Building and Construction — 0.6% | ||||||||||||
177,400 | Huttig Building Products Inc.† | 169,364 | 159,660 | |||||||||
40,000 | Layne Christensen Co.† | 1,058,071 | 1,035,600 | |||||||||
177,400 | Material Sciences Corp.† | 329,145 | 791,204 | |||||||||
9,500 | The Monarch Cement Co. | 242,808 | 229,758 | |||||||||
1,799,388 | 2,216,222 | |||||||||||
Business Services — 4.2% | ||||||||||||
28,000 | ANC Rental Corp.† (a) | 840 | 3 | |||||||||
210,000 | Ascent Media Corp., Cl. A† | 5,313,296 | 5,609,100 | |||||||||
240,000 | Bowne & Co. Inc. | 1,561,926 | 2,719,200 | |||||||||
14,500 | Cenveo Inc.† | 20,431 | 72,935 | |||||||||
103 | Chazak Value Corp.† (a) | 0 | 0 | |||||||||
100,000 | Diamond Management & Technology Consultants Inc. | 1,094,644 | 1,250,000 | |||||||||
67,500 | EDGAR Online Inc.† | 131,159 | 84,375 | |||||||||
377,243 | Edgewater Technology Inc.† | 1,212,780 | 1,026,101 | |||||||||
68,800 | GP Strategies Corp.† | 539,887 | 625,392 | |||||||||
600 | Intermec Inc.† | 7,224 | 7,356 | |||||||||
100,000 | Internap Network Services Corp.† | 494,135 | 491,000 | |||||||||
2,000 | Liquidity Services Inc.† | 10,853 | 32,020 | |||||||||
144,100 | Pure Technologies Ltd.† | 613,194 | 585,419 | |||||||||
27,800 | S1 Corp.† | 146,231 | 144,838 | |||||||||
51,700 | SearchMedia Holdings Ltd.† | 285,149 | 134,420 | |||||||||
215,438 | Stamps.com Inc.† | 2,047,749 | 2,800,694 | |||||||||
300 | StarTek Inc.† | 2,192 | 1,254 | |||||||||
50,000 | Trans-Lux Corp.† | 38,033 | 24,500 | |||||||||
13,519,723 | 15,608,607 | |||||||||||
Cable — 0.0% | ||||||||||||
90,000 | Adelphia Communications Corp., Cl. A† (a) | 15,750 | 0 | |||||||||
90,000 | Adelphia Communications Corp., Cl. A, Escrow† (a) | 0 | 0 | |||||||||
90,000 | Adelphia Recovery Trust† | 0 | 900 | |||||||||
12,500 | Outdoor Channel Holdings Inc.† | 90,231 | 69,125 | |||||||||
105,981 | 70,025 | |||||||||||
Closed-End Business Development Company — 0.1% | ||||||||||||
33,100 | MVC Capital Inc. | 325,675 | 429,307 | |||||||||
Commercial Services — 0.2% | ||||||||||||
18,000 | ICF International Inc.† | 417,773 | 451,260 | |||||||||
8,000 | Macquarie Infrastucture Co. LLC† | 111,751 | 124,000 | |||||||||
529,524 | 575,260 | |||||||||||
Communications Equipment — 0.9% | ||||||||||||
100,000 | ADC Telecommunications Inc.† | 1,252,610 | 1,267,000 | |||||||||
51,000 | Communications Systems Inc. | 527,253 | 580,890 | |||||||||
20,830 | Sycamore Networks Inc. | 429,836 | 675,100 | |||||||||
142,950 | Symmetricom Inc.† | 745,542 | 817,674 | |||||||||
4,000 | Technical Communications Corp. | 25,077 | 36,960 | |||||||||
40,000 | ViewCast.com Inc.† | 18,600 | 11,600 | |||||||||
2,998,918 | 3,389,224 | |||||||||||
Computer Software and Services — 4.7% | ||||||||||||
2,087,500 | ADPT Corp.† | 6,328,417 | 6,158,125 | |||||||||
67,038 | Computer Task Group Inc.† | 500,196 | 512,170 | |||||||||
271,400 | Furmanite Corp.† | 1,457,873 | 1,324,432 | |||||||||
1,910 | Gemalto NV | 10,942 | 78,388 | |||||||||
284,208 | Global Sources Ltd.† | 1,982,413 | 2,145,770 | |||||||||
45,300 | GSE Systems Inc.† | 245,965 | 152,661 | |||||||||
55,295 | Kratos Defense & Security Solutions Inc.† | 646,204 | 588,892 | |||||||||
250,000 | L-1 Identity Solutions Inc.† | 2,933,660 | 2,932,500 | |||||||||
4,100 | Magma Design Automation Inc.† | 11,864 | 15,170 | |||||||||
36,000 | Mercury Computer Systems Inc.† | 208,756 | 433,080 | |||||||||
400 | MTS Systems Corp. | 10,336 | 12,400 | |||||||||
155,500 | Phoenix Technologies Ltd.† | 499,297 | 606,450 | |||||||||
35,400 | Schawk Inc. | 570,926 | 653,484 | |||||||||
167,761 | Tier Technologies Inc.† | 959,395 | 929,396 | |||||||||
10,000 | Trident Microsystems Inc.† | 19,494 | 17,100 | |||||||||
3,800 | Tyler Technologies Inc.† | 39,378 | 76,608 | |||||||||
50,000 | Unica Corp.† | 1,042,177 | 1,049,000 | |||||||||
17,467,293 | 17,685,626 | |||||||||||
See accompanying notes to financial statements.
13
GAMCO Westwood Mighty MitesSM Fund
Schedule of Investments (Continued) — September 30, 2010
Schedule of Investments (Continued) — September 30, 2010
Market | ||||||||||||
Shares | Cost | Value | ||||||||||
COMMON STOCKS (Continued) | ||||||||||||
Consumer Products — 2.2% | ||||||||||||
18,000 | Adams Golf Inc.† | $ | 122,578 | $ | 77,040 | |||||||
29,000 | Callaway Golf Co. | 191,165 | 203,000 | |||||||||
54,000 | Heelys Inc.† | 204,033 | 129,600 | |||||||||
3,000 | Johnson Outdoors Inc., Cl. A† | 17,417 | 38,460 | |||||||||
68,900 | Kid Brands Inc.† | 633,079 | 592,540 | |||||||||
15,300 | Lakeland Industries Inc.† | 147,120 | 139,995 | |||||||||
269,400 | Marine Products Corp.† | 1,616,378 | 1,654,116 | |||||||||
12,500 | MarineMax Inc.† | 51,551 | 88,000 | |||||||||
300 | National Presto Industries Inc. | 8,618 | 31,941 | |||||||||
61,700 | Oil-Dri Corp. of America | 909,775 | 1,327,167 | |||||||||
22,550 | PC Group Inc.† | 36,025 | 3,608 | |||||||||
328,765 | Schiff Nutrition International Inc. | 1,750,297 | 2,695,873 | |||||||||
35,000 | Steinway Musical Instruments Inc.† | 618,483 | 602,700 | |||||||||
41,530 | Syratech Corp.† | 10,383 | 1,053 | |||||||||
146,600 | The Wet Seal Inc., Cl. A† | 585,759 | 496,974 | |||||||||
6,902,661 | 8,082,067 | |||||||||||
Consumer Services — 0.4% | ||||||||||||
407,100 | 1-800-FLOWERS.COM Inc., Cl. A† | 1,170,124 | 769,419 | |||||||||
31,300 | Bowlin Travel Centers Inc.† | 37,661 | 41,003 | |||||||||
1,100 | Collectors Universe Inc. | 3,530 | 14,817 | |||||||||
90,000 | Stewart Enterprises Inc., Cl. A | 527,358 | 485,100 | |||||||||
3,500 | Valassis Communications Inc.† | 4,639 | 118,615 | |||||||||
1,743,312 | 1,428,954 | |||||||||||
Diversified Industrial — 7.1% | ||||||||||||
44,200 | American Railcar Industries Inc.† | 571,194 | 693,056 | |||||||||
117,900 | Ampco-Pittsburgh Corp. | 2,835,730 | 2,926,278 | |||||||||
142,800 | Brush Engineered Materials Inc.† | 2,892,831 | 4,061,232 | |||||||||
48,300 | Burnham Holdings Inc., Cl. A | 699,144 | 701,074 | |||||||||
67,500 | Chase Corp. | 848,166 | 982,125 | |||||||||
106,214 | China Wind Systems Inc.† | 470,661 | 470,528 | |||||||||
43,300 | Graham Corp. | 573,298 | 672,016 | |||||||||
187,500 | Griffon Corp.† | 1,892,785 | 2,285,625 | |||||||||
25,000 | Haulotte Group SA† | 134,090 | 270,946 | |||||||||
126,900 | Hawk Corp., Cl. A† | 2,015,023 | 5,490,963 | |||||||||
185,700 | Katy Industries Inc.† | 446,086 | 148,560 | |||||||||
10,000 | Lydall Inc.† | 64,270 | 73,600 | |||||||||
437,500 | Magnetek Inc.† | 954,311 | 577,500 | |||||||||
192,900 | Myers Industries Inc. | 1,670,323 | 1,657,011 | |||||||||
31,200 | National Patent Development Corp.† | 73,653 | 43,368 | |||||||||
20,500 | Park-Ohio Holdings Corp.† | 166,688 | 272,650 | |||||||||
13,300 | RWC Inc.† | 233,944 | 99,817 | |||||||||
25,100 | Stamford Industrial Group Inc.† | 92,108 | 113 | |||||||||
252,300 | Tech/Ops Sevcon Inc.† (b) | 1,178,521 | 1,274,115 | |||||||||
10,000 | Tredegar Corp. | 185,887 | 189,800 | |||||||||
82,000 | Twin Disc Inc. | 826,071 | 1,143,900 | |||||||||
308,800 | WHX Corp.† | 1,377,222 | 2,581,568 | |||||||||
20,202,006 | 26,615,845 | |||||||||||
Educational Services — 0.6% | ||||||||||||
185,000 | Corinthian Colleges Inc.† | 1,154,420 | 1,298,700 | |||||||||
212,800 | The Princeton Review Inc.† | 630,643 | 434,112 | |||||||||
31,100 | Universal Technical Institute Inc. | 514,206 | 608,005 | |||||||||
108,500 | Voyager Learning Co., Escrow† (a) | 0 | 0 | |||||||||
2,299,269 | 2,340,817 | |||||||||||
Electronics — 7.7% | ||||||||||||
27,000 | A123 Systems Inc.† | 353,170 | 242,190 | |||||||||
50,000 | Alliance Semiconductor Corp. | 157,908 | 13,000 | |||||||||
62,000 | Ballantyne Strong Inc.† | 280,240 | 536,300 | |||||||||
87,600 | Bel Fuse Inc., Cl. A | 1,572,938 | 1,833,468 | |||||||||
1,800 | Bel Fuse Inc., Cl. B | 36,012 | 37,476 | |||||||||
79,500 | BTU International Inc.† | 329,264 | 550,140 | |||||||||
231,500 | CTS Corp. | 1,647,035 | 2,227,030 | |||||||||
57,049 | Electro Scientific Industries Inc.† | 675,423 | 633,814 | |||||||||
49,300 | IMAX Corp.† | 199,628 | 831,198 | |||||||||
169,500 | IntriCon Corp.† | 664,727 | 705,120 | |||||||||
233,000 | Keithley Instruments Inc. | 1,954,511 | 5,011,830 | |||||||||
216,700 | LeCroy Corp.† | 755,533 | 1,711,930 | |||||||||
36,700 | Mesa Laboratories Inc. | 889,121 | 844,100 | |||||||||
75,000 | Methode Electronics Inc. | 384,225 | 681,000 | |||||||||
234,400 | Microtune Inc.† | 576,343 | 679,760 | |||||||||
69,500 | MoSys Inc.† | 130,660 | 339,160 | |||||||||
63,000 | Newport Corp.† | 384,910 | 714,420 | |||||||||
79,500 | NU Horizons Electronics Corp.† | 549,751 | 552,525 | |||||||||
49,300 | Park Electrochemical Corp. | 1,037,627 | 1,298,562 | |||||||||
70,000 | Pericom Semiconductor Corp.† | 699,279 | 608,300 | |||||||||
30,300 | Schmitt Industries Inc.† | 76,922 | 75,447 | |||||||||
207,300 | Stoneridge Inc.† | 900,230 | 2,178,723 | |||||||||
343,800 | Technitrol Inc. | 1,570,455 | 1,516,158 | |||||||||
134,900 | Ultra Clean Holdings Inc.† | 287,575 | 1,162,838 | |||||||||
127,000 | Ultralife Corp.† | 770,909 | 556,260 | |||||||||
59,300 | Ultratech Inc.† | 783,364 | 1,014,030 | |||||||||
76,400 | Zoran Corp.† | 591,522 | 583,696 | |||||||||
172,200 | Zygo Corp.† | 1,232,611 | 1,687,560 | |||||||||
19,491,893 | 28,826,035 | |||||||||||
Energy and Utilities: Alternative Energy — 0.1% | ||||||||||||
34,700 | Ascent Solar Technologies Inc.† | 104,087 | 109,652 | |||||||||
74,290 | China Hydroelectric Corp., ADR† | 445,319 | 435,339 | |||||||||
549,406 | 544,991 | |||||||||||
Energy and Utilities: Electric — 0.7% | ||||||||||||
88,880 | Comverge Inc.† | 726,958 | 698,597 | |||||||||
42,520 | Maine & Maritimes Corp. | 1,581,903 | 1,909,148 | |||||||||
2,308,861 | 2,607,745 | |||||||||||
Energy and Utilities: Integrated — 0.5% | ||||||||||||
181,300 | Headwaters Inc.† | 659,059 | 652,680 | |||||||||
31,500 | MGE Energy Inc. | 1,094,707 | 1,247,085 | |||||||||
95,200 | Progress Energy Inc., CVO† | 10,472 | 14,280 | |||||||||
1,764,238 | 1,914,045 | |||||||||||
Energy and Utilities: Natural Gas — 0.9% | ||||||||||||
36,000 | Chesapeake Utilities Corp. | 981,276 | 1,303,920 | |||||||||
53,671 | Corning Natural Gas Corp. (b) | 857,412 | 1,054,635 | |||||||||
18,000 | Delta Natural Gas Co. Inc. | 426,596 | 553,500 | |||||||||
183 | Evergreen Energy Inc.† | 4,724 | 247 | |||||||||
16,700 | RGC Resources Inc. | 369,238 | 518,034 | |||||||||
20,300 | U.S. Energy Corp.† | 85,659 | 92,162 | |||||||||
2,724,905 | 3,522,498 | |||||||||||
Energy and Utilities: Oil — 0.2% | ||||||||||||
63,600 | Tesco Corp.† | 543,737 | 765,108 | |||||||||
Energy and Utilities: Services — 0.5% | ||||||||||||
9,500 | Acergy SA, ADR | 32,064 | 175,275 | |||||||||
53,800 | Allis-Chalmers Energy Inc.† | 235,098 | 224,346 | |||||||||
3,000 | Covanta Holding Corp. | 38,471 | 47,250 | |||||||||
17,000 | Dawson Geophysical Co.† | 298,475 | 453,050 | |||||||||
40,000 | RPC Inc. | 173,633 | 846,400 | |||||||||
700 | Union Drilling Inc.† | 4,515 | 3,136 | |||||||||
782,256 | 1,749,457 | |||||||||||
Energy and Utilities: Water — 1.4% | ||||||||||||
6,000 | Artesian Resources Corp., Cl. A | 73,323 | 114,420 | |||||||||
39,174 | Cadiz Inc.† | 475,627 | 401,925 | |||||||||
2,500 | California Water Service Group | 55,553 | 92,375 |
See accompanying notes to financial statements.
14
GAMCO Westwood Mighty MitesSM Fund
Schedule of Investments (Continued) — September 30, 2010
Schedule of Investments (Continued) — September 30, 2010
Market | ||||||||||||
Shares | Cost | Value | ||||||||||
COMMON STOCKS (Continued) | ||||||||||||
Energy and Utilities: Water (Continued) | ||||||||||||
40,000 | Consolidated Water Co. Ltd. | $ | 450,805 | $ | 379,200 | |||||||
35,000 | Energy Recovery Inc.† | 210,777 | 125,650 | |||||||||
8,500 | Middlesex Water Co. | 137,355 | 143,140 | |||||||||
82,200 | Pennichuck Corp. | 1,769,062 | 1,891,422 | |||||||||
63,400 | SJW Corp. | 1,431,266 | 1,561,542 | |||||||||
28,500 | The York Water Co. | 398,710 | 456,855 | |||||||||
5,002,478 | 5,166,529 | |||||||||||
Entertainment — 0.2% | ||||||||||||
22,100 | Canterbury Park Holding Corp.† | 197,542 | 171,275 | |||||||||
1,802 | Chestnut Hill Ventures† (a) | 67,956 | 82,092 | |||||||||
220,000 | Dover Motorsports Inc.† | 463,987 | 402,600 | |||||||||
2,000 | LodgeNet Interactive Corp.† | 9,988 | 5,600 | |||||||||
60,000 | Triple Crown Media Inc.† | 16,280 | 180 | |||||||||
755,753 | 661,747 | |||||||||||
Environmental Control — 0.2% | ||||||||||||
10,000 | BioteQ Environmental Technologies Inc.† | 16,559 | 7,775 | |||||||||
167,000 | Casella Waste Systems Inc., Cl. A† | 627,904 | 701,400 | |||||||||
500 | Sharps Compliance Corp.† | 1,265 | 2,525 | |||||||||
645,728 | 711,700 | |||||||||||
Equipment and Supplies — 4.3% | ||||||||||||
1,000 | AZZ Inc. | 34,894 | 42,840 | |||||||||
172,500 | Baldwin Technology Co. Inc., Cl. A† | 351,412 | 210,450 | |||||||||
20,000 | Capstone Turbine Corp.† | 31,920 | 15,442 | |||||||||
52,500 | CIRCOR International Inc. | 1,494,032 | 1,659,000 | |||||||||
231,000 | Core Molding Technologies Inc.† | 618,111 | 1,016,400 | |||||||||
120,000 | Federal Signal Corp. | 807,570 | 646,800 | |||||||||
700 | Genoil Inc.† | 158 | 99 | |||||||||
239,400 | Gerber Scientific Inc.† | 1,051,639 | 1,477,098 | |||||||||
8,500 | Gildemeister AG | 61,536 | 124,046 | |||||||||
8,000 | GrafTech International Ltd.† | 49,988 | 125,040 | |||||||||
39,600 | Interpump Group SpA† | 190,352 | 247,790 | |||||||||
108,600 | L.S. Starrett Co., Cl. A | 1,235,526 | 1,134,870 | |||||||||
20,000 | Maezawa Kyuso Industries Co. Ltd. | 108,117 | 241,016 | |||||||||
79,700 | Met-Pro Corp. | 864,851 | 804,173 | |||||||||
11,800 | Mine Safety Appliances Co. | 367,269 | 319,780 | |||||||||
201,300 | SL Industries Inc.† | 1,434,148 | 2,836,317 | |||||||||
1,000 | SRS Labs Inc.† | 5,500 | 9,340 | |||||||||
25,000 | The Eastern Co. | 331,073 | 408,500 | |||||||||
4,000 | The Gorman-Rupp Co. | 111,237 | 110,240 | |||||||||
12,000 | The Greenbrier Cos. Inc.† | 149,918 | 187,080 | |||||||||
19,900 | Thermadyne Holdings Corp.† | 264,126 | 281,187 | |||||||||
36,379 | Titan Machinery Inc.† | 503,585 | 592,978 | |||||||||
285,400 | TransAct Technologies Inc.† | 1,613,496 | 2,283,200 | |||||||||
50,500 | Vicor Corp. | 324,047 | 737,805 | |||||||||
24,000 | WaterFurnace Renewable Energy Inc. | 474,797 | 609,039 | |||||||||
500 | Watts Water Technologies Inc., Cl. A | 7,648 | 17,025 | |||||||||
12,486,950 | 16,137,555 | |||||||||||
Financial Services — 3.9% | ||||||||||||
50,000 | AmeriCredit Corp.† | 1,215,022 | 1,223,000 | |||||||||
16,100 | Berkshire Bancorp Inc.† | 219,414 | 68,586 | |||||||||
3,900 | Berkshire Hills Bancorp Inc. | 78,058 | 73,944 | |||||||||
75 | Burke & Herbert Bank and Trust Co. | 95,726 | 160,987 | |||||||||
40,000 | Capital Financial Holdings Inc.† | 35,200 | 5,700 | |||||||||
4,000 | CNA Surety Corp.† | 71,429 | 71,680 | |||||||||
29,000 | Crazy Woman Creek Bancorp Inc. | 501,616 | 322,625 | |||||||||
381,400 | Epoch Holding Corp. | 2,284,655 | 4,912,432 | |||||||||
35 | Farmers & Merchants Bank of Long Beach | 174,166 | 139,212 | |||||||||
10,442 | Fidelity Southern Corp.† | 69,329 | 68,500 | |||||||||
79,000 | Flushing Financial Corp. | 1,068,424 | 913,240 | |||||||||
10 | Guaranty Corp., Cl. A† | 137,500 | 75,000 | |||||||||
2,500 | Hampton Roads Bankshares Inc.† | 34,984 | 2,391 | |||||||||
37,750 | Hudson Valley Holding Corp. | 847,223 | 736,880 | |||||||||
90,843 | KKR & Co. LP | 265,210 | 962,936 | |||||||||
24,000 | Meadowbrook Insurance Group Inc. | 160,048 | 215,280 | |||||||||
50,000 | Medallion Financial Corp. | 368,454 | 389,500 | |||||||||
28,500 | Nara Bancorp Inc.† | 224,619 | 201,210 | |||||||||
11,055 | New York Community Bancorp Inc. | 143,811 | 179,644 | |||||||||
5,697 | Northrim BanCorp Inc. | 119,035 | 94,570 | |||||||||
20,000 | NYMAGIC Inc. | 510,299 | 513,400 | |||||||||
37,500 | Oritani Financial Corp. | 382,931 | 374,250 | |||||||||
4,300 | Provident New York Bancorp | 64,371 | 36,077 | |||||||||
45,000 | Pzena Investment Management Inc., Cl. A | 203,004 | 309,150 | |||||||||
72,300 | Sanders Morris Harris Group Inc. | 419,722 | 409,218 | |||||||||
116 | Sunwest Bank† | 322,722 | 292,900 | |||||||||
59,800 | SWS Group Inc. | 795,383 | 428,766 | |||||||||
5,300 | The Ziegler Companies Inc.† | 102,911 | 117,183 | |||||||||
2,000 | TIB Financial Corp.† | 1,728 | 860 | |||||||||
10,000 | Tree.com Inc.† | 82,623 | 65,500 | |||||||||
200 | Value Line Inc. | 5,002 | 2,774 | |||||||||
63,100 | Westfield Financial Inc. | 528,771 | 492,180 | |||||||||
39,239 | Whitney Holding Corp. | 200,454 | 320,583 | |||||||||
38,100 | Wilshire Bancorp Inc. | 330,044 | 249,174 | |||||||||
12,063,888 | 14,429,332 | |||||||||||
Food and Beverage — 1.4% | ||||||||||||
1,000 | Andrew Peller Ltd., Cl. A | 9,614 | 8,320 | |||||||||
19,500 | Boston Beer Co. Inc., Cl. A† | 489,562 | 1,303,965 | |||||||||
17,000 | Caribou Coffee Co. Inc.† | 155,028 | 176,800 | |||||||||
1,100 | Hanover Foods Corp., Cl. A | 110,881 | 110,005 | |||||||||
1,000 | Inventure Foods Inc.† | 2,660 | 3,770 | |||||||||
2,000 | J & J Snack Foods Corp. | 28,830 | 83,860 | |||||||||
138,300 | Lifeway Foods Inc.† | 1,341,573 | 1,454,916 | |||||||||
15,000 | MGP Ingredients Inc. | 69,302 | 117,750 | |||||||||
7,000 | Rock Field Co. Ltd. | 113,721 | 109,763 | |||||||||
4,000 | Scheid Vineyards Inc., Cl. A† | 81,317 | 39,280 | |||||||||
45,000 | Smart Balance Inc.† | 187,124 | 174,600 | |||||||||
34,000 | The Hain Celestial Group Inc.† | 618,551 | 815,320 | |||||||||
240,000 | Tingyi (Cayman Islands) Holding Corp. | 314,418 | 661,954 | |||||||||
280,000 | Vitasoy International Holdings Ltd. | 133,057 | 220,497 | |||||||||
17,000 | Willamette Valley Vineyards Inc.† | 80,870 | 58,820 | |||||||||
3,736,508 | 5,339,620 | |||||||||||
Health Care — 8.3% | ||||||||||||
5,000 | Alere Inc.† | 94,541 | 154,650 | |||||||||
28,500 | AngioDynamics Inc.† | 314,391 | 434,340 | |||||||||
12,800 | ArthroCare Corp.† | 140,635 | 347,904 | |||||||||
335,500 | BioLase Technology Inc.† | 473,052 | 392,535 | |||||||||
10,000 | Boiron SA | 166,957 | 331,952 | |||||||||
1,000 | Bruker Corp.† | 5,980 | 14,030 | |||||||||
37,600 | Cantel Medical Corp. | 637,223 | 609,120 | |||||||||
85,000 | CardioNet Inc.† | 452,291 | 383,350 | |||||||||
62,500 | Cepheid Inc.† | 595,116 | 1,169,375 | |||||||||
135,000 | Clarient Inc.† | 345,735 | 456,300 | |||||||||
575,700 | Continucare Corp.† | 1,326,150 | 2,417,940 | |||||||||
42,000 | Crucell NV, ADR† | 998,613 | 1,396,920 | |||||||||
79,000 | Cutera Inc.† | 638,363 | 639,900 |
See accompanying notes to financial statements.
15
GAMCO Westwood Mighty MitesSM Fund
Schedule of Investments (Continued) — September 30, 2010
Schedule of Investments (Continued) — September 30, 2010
Market | ||||||||||||
Shares | Cost | Value | ||||||||||
COMMON STOCKS (Continued) | ||||||||||||
Health Care (Continued) | ||||||||||||
60,000 | Cynosure Inc., Cl. A† | $ | 508,551 | $ | 612,600 | |||||||
220,000 | Cypress Bioscience Inc.† | 837,745 | 847,000 | |||||||||
120,000 | Del Global Technologies Corp.† | 216,585 | 67,200 | |||||||||
5,000 | DexCom Inc.† | 65,375 | 66,100 | |||||||||
1,000 | Elite Pharmaceuticals Inc.† | 2,690 | 60 | |||||||||
92,600 | Exactech Inc.† | 1,552,506 | 1,511,232 | |||||||||
28,700 | Heska Corp.† | 48,800 | 12,915 | |||||||||
73,600 | Hooper Holmes Inc.† | 69,670 | 51,520 | |||||||||
1,000 | ICU Medical Inc.† | 23,786 | 37,290 | |||||||||
10,000 | Indevus Pharmaceuticals Inc., Escrow† (a) | 0 | 11,000 | |||||||||
61,000 | InfuSystems Holdings Inc.† | 157,350 | 152,500 | |||||||||
423,800 | IRIS International Inc.† | 4,511,661 | 4,068,480 | |||||||||
10,000 | Matrixx Initiatives Inc.† | 41,764 | 51,000 | |||||||||
94,000 | Neogen Corp.† | 571,377 | 3,181,900 | |||||||||
60,000 | NightHawk Radiology Holdings Inc.† | 383,394 | 382,800 | |||||||||
1,800 | NMT Medical Inc.† | 5,643 | 792 | |||||||||
44,300 | Opko Health Inc.† | 85,440 | 99,232 | |||||||||
17,500 | Orthofix International NV† | 279,401 | 549,850 | |||||||||
114,480 | OTIX Global Inc.† | 846,853 | 1,182,578 | |||||||||
117,800 | Pain Therapeutics Inc.† | 771,767 | 728,004 | |||||||||
20,300 | Palomar Medical Technologies Inc.† | 191,961 | 209,699 | |||||||||
10,000 | PreMD Inc.† | 18,320 | 100 | |||||||||
75,500 | Quidel Corp.† | 718,528 | 829,745 | |||||||||
323,290 | Rochester Medical Corp.† | 3,651,483 | 3,527,094 | |||||||||
84,400 | RTI Biologics Inc.† | 499,719 | 221,972 | |||||||||
213,900 | Strategic Diagnostics Inc.† | 207,526 | 350,796 | |||||||||
95,000 | Syneron Medical Ltd.† | 819,192 | 942,400 | |||||||||
2,000 | Targanta Therapeutics Corp., Escrow† (a) | 0 | 1,280 | |||||||||
500 | ThermoGenesis Corp.† | 1,140 | 1,455 | |||||||||
79,400 | United-Guardian Inc. | 684,320 | 1,141,772 | |||||||||
60,600 | Vascular Solutions Inc.† | 529,724 | 695,688 | |||||||||
20,300 | Young Innovations Inc. | 347,060 | 580,783 | |||||||||
24,838,378 | 30,865,153 | |||||||||||
Hotels and Gaming — 1.7% | ||||||||||||
47,540 | Churchill Downs Inc. | 1,456,921 | 1,698,129 | |||||||||
256,000 | Dover Downs Gaming & Entertainment Inc. | 1,261,527 | 870,400 | |||||||||
2,000 | Florida Gaming Corp.��� | 6,950 | 5,550 | |||||||||
4,000 | Gaylord Entertainment Co.† | 55,334 | 122,000 | |||||||||
46,000 | Morgans Hotel Group Co.† | 187,164 | 336,720 | |||||||||
8,500 | Multimedia Games Inc.† | 76,734 | 31,450 | |||||||||
25,200 | Pinnacle Entertainment Inc.† | 184,930 | 280,980 | |||||||||
161,100 | Sonesta International Hotels Corp., Cl. A | 2,417,191 | 2,303,730 | |||||||||
58,000 | The Marcus Corp. | 663,835 | 687,300 | |||||||||
6,310,586 | 6,336,259 | |||||||||||
Machinery — 1.1% | ||||||||||||
10,000 | Astec Industries Inc.† | 296,882 | 285,300 | |||||||||
11,000 | DXP Enterprises Inc.† | 140,765 | 208,780 | |||||||||
134,000 | Flow International Corp.† | 210,750 | 352,420 | |||||||||
6,000 | Hardinge Inc. | 54,215 | 45,960 | |||||||||
59,565 | Key Technology Inc.† | 1,163,973 | 769,580 | |||||||||
6,000 | Lindsay Corp. | 180,673 | 259,920 | |||||||||
46,300 | Tennant Co. | 927,753 | 1,430,670 | |||||||||
14,800 | The Middleby Corp.† | 464,969 | 938,172 | |||||||||
3,439,980 | 4,290,802 | |||||||||||
Manufactured Housing and Recreational Vehicles — 0.5% | ||||||||||||
1,182,300 | All American Group Inc.† | 1,740,953 | 271,929 | |||||||||
13,300 | Cavco Industries Inc.† | 308,431 | 477,603 | |||||||||
26,200 | Nobility Homes Inc.† | 308,994 | 254,795 | |||||||||
21,300 | Skyline Corp. | 479,014 | 431,538 | |||||||||
30,000 | Winnebago Industries Inc.† | 338,040 | 312,600 | |||||||||
3,175,432 | 1,748,465 | |||||||||||
Metals and Mining — 0.2% | ||||||||||||
116,600 | 5N Plus Inc.† | 420,658 | 655,018 | |||||||||
20,000 | Camino Minerals Corp.† | 3,744 | 7,387 | |||||||||
424,402 | 662,405 | |||||||||||
Paper and Forest Products — 0.1% | ||||||||||||
20,000 | Cellu Tissue Holdings Inc.† | 238,500 | 238,600 | |||||||||
1,700 | Keweenaw Land Association Ltd. | 309,892 | 306,000 | |||||||||
548,392 | 544,600 | |||||||||||
Publishing — 2.2% | ||||||||||||
171,300 | Belo Corp., Cl. A† | 348,288 | 1,062,060 | |||||||||
85,507 | Cambium Learning Group Inc.† | 335,457 | 273,622 | |||||||||
78,800 | Il Sole 24 Ore† | 181,910 | 142,015 | |||||||||
1,095,000 | Journal Communications Inc., Cl. A† | 2,551,330 | 4,938,450 | |||||||||
200,000 | PRIMEDIA Inc. | 358,561 | 760,000 | |||||||||
130,000 | The E.W. Scripps Co., Cl. A† | 396,784 | 1,024,400 | |||||||||
4,172,330 | 8,200,547 | |||||||||||
Real Estate — 0.9% | ||||||||||||
8,700 | Bresler & Reiner Inc.† | 233,986 | 9,179 | |||||||||
8,800 | Capital Properties Inc., Cl. A | 120,996 | 77,000 | |||||||||
6,000 | Capital Properties Inc., Cl. B (a)(c) | 0 | 52,500 | |||||||||
57,000 | Cohen & Steers Inc. | 1,018,580 | 1,236,900 | |||||||||
40,600 | Griffin Land & Nurseries Inc. | 1,110,218 | 1,073,464 | |||||||||
1,900 | Gyrodyne Co. of America Inc.† | 49,716 | 148,010 | |||||||||
5,700 | Holobeam Inc.† | 104,121 | 105,450 | |||||||||
114,500 | Reading International Inc., Cl. A† | 576,882 | 518,685 | |||||||||
31,900 | Reading International Inc., Cl. B† | 266,800 | 243,397 | |||||||||
2,508 | Royalty LLC† (a)(c) | 0 | 1,413 | |||||||||
3,481,299 | 3,465,998 | |||||||||||
Restaurants — 2.0% | ||||||||||||
15,079 | Biglari Holdings Inc.† | 4,169,000 | 4,955,713 | |||||||||
75,000 | Denny’s Corp.† | 234,741 | 233,250 | |||||||||
50,500 | Famous Dave’s of America Inc.† | 445,815 | 480,255 | |||||||||
120,229 | Nathan’s Famous Inc.† | 1,544,836 | 1,923,664 | |||||||||
6,394,392 | 7,592,882 | |||||||||||
Retail — 2.6% | ||||||||||||
14,000 | Aaron’s Inc., Cl. A | 203,850 | 257,600 | |||||||||
47,000 | Big 5 Sporting Goods Corp. | 636,001 | 630,740 | |||||||||
165,000 | Coldwater Creek Inc.† | 598,031 | 869,550 | |||||||||
1,065,000 | CoolBrands International Inc.† | 1,051,734 | 3,622,801 | |||||||||
25,000 | Hot Topic Inc. | 167,245 | 149,750 | |||||||||
126,200 | Ingles Markets Inc., Cl. A | 1,991,966 | 2,096,182 | |||||||||
9,800 | Movado Group Inc.† | 120,100 | 106,624 | |||||||||
28,000 | Rush Enterprises Inc., Cl. A† | 339,079 | 429,520 | |||||||||
50,000 | Rush Enterprises Inc., Cl. B† | 511,706 | 687,500 | |||||||||
21,800 | The Bon-Ton Stores Inc.† | 178,394 | 221,706 | |||||||||
75,100 | The Great Atlantic & Pacific Tea Co. Inc.† | 483,903 | 297,396 | |||||||||
8,800 | Village Super Market Inc., Cl. A | 220,543 | 245,872 | |||||||||
6,502,552 | 9,615,241 | |||||||||||
See accompanying notes to financial statements.
16
GAMCO Westwood Mighty MitesSM Fund
Schedule of Investments (Continued) — September 30, 2010
Schedule of Investments (Continued) — September 30, 2010
Market | ||||||||||||
Shares | Cost | Value | ||||||||||
COMMON STOCKS (Continued) | ||||||||||||
Semiconductors — 0.9% | ||||||||||||
122,400 | Advanced Analogic Technologies Inc.† | $ | 474,312 | $ | 429,624 | |||||||
42,800 | Amtech Systems Inc.† | 359,916 | 768,688 | |||||||||
88,800 | Cascade Microtech Inc.† | 411,007 | 334,776 | |||||||||
131,500 | Entegris Inc.† | 651,392 | 614,105 | |||||||||
79,200 | Entropic Communications Inc.† | 402,578 | 760,320 | |||||||||
3,834 | GSI Group Inc.† | 10,602 | 9,623 | |||||||||
44,800 | IXYS Corp.† | 405,104 | 427,840 | |||||||||
2,714,911 | 3,344,976 | |||||||||||
Specialty Chemicals — 3.6% | ||||||||||||
2,909 | A. Schulman Inc. | 75,983 | 58,616 | |||||||||
567,500 | Ferro Corp.† | 2,287,107 | 7,315,075 | |||||||||
267,226 | General Chemical Group Inc.† | 59,859 | 9,353 | |||||||||
33,500 | Hawkins Inc. | 474,315 | 1,186,570 | |||||||||
1,000 | KMG Chemicals Inc. | 3,270 | 14,090 | |||||||||
270,000 | Omnova Solutions Inc.† | 509,785 | 1,941,300 | |||||||||
162,500 | Zep Inc. | 1,982,677 | 2,834,000 | |||||||||
5,392,996 | 13,359,004 | |||||||||||
Telecommunications — 0.8% | ||||||||||||
18,500 | Applied Signal Technology Inc. | 310,680 | 460,280 | |||||||||
20,900 | Atlantic Tele-Network Inc. | 870,291 | 1,029,116 | |||||||||
175 | Consolidated Communications Holdings Inc. | 3,117 | 3,267 | |||||||||
2,000 | Electronic Systems Technology Inc.† | 1,410 | 1,020 | |||||||||
56,000 | HickoryTech Corp. | 525,626 | 477,680 | |||||||||
80 | Horizon Telecom Inc., Cl. A | 9,250 | 7,600 | |||||||||
350 | Horizon Telecom Inc., Cl. B | 39,964 | 23,450 | |||||||||
55,100 | New Ulm Telecom Inc. | 541,273 | 283,765 | |||||||||
10,000 | PNV Inc.† (a) | 3 | 10 | |||||||||
7,788 | Preformed Line Products Co. | 338,590 | 271,568 | |||||||||
18,000 | Shenandoah Telecommunications Co. | 94,686 | 327,060 | |||||||||
17,875 | Windstream Corp. | 179,823 | 219,684 | |||||||||
2,914,713 | 3,104,500 | |||||||||||
Transportation — 0.3% | ||||||||||||
8,200 | PHI Inc.† | 130,182 | 128,658 | |||||||||
80,300 | Providence and Worcester Railroad Co. | 1,081,985 | 991,705 | |||||||||
300 | Trailer Bridge Inc.† | 3,339 | 996 | |||||||||
1,215,506 | 1,121,359 | |||||||||||
TOTAL COMMON STOCKS | 226,768,790 | 290,633,765 | ||||||||||
PREFERRED STOCKS — 0.2% | ||||||||||||
Automotive: Parts and Accessories — 0.2% | ||||||||||||
20,000 | Jungheinrich AG Pfd. | 229,855 | 669,357 | |||||||||
CONVERTIBLE PREFERRED STOCKS — 0.0% | ||||||||||||
Food and Beverage — 0.0% | ||||||||||||
500 | Seneca Foods Corp., Zero Coupon Cv. Pfd., Ser. 2003† (a) | 7,625 | 13,095 | |||||||||
WARRANTS — 0.0% | ||||||||||||
Broadcasting — 0.0% | ||||||||||||
63 | Granite Broadcasting Corp., Ser. A, expire 06/04/12† (a) | 0 | 0 | |||||||||
63 | Granite Broadcasting Corp., Ser. B, expire 06/04/12† (a) | 0 | 0 | |||||||||
0 | 0 | |||||||||||
TOTAL WARRANTS | 0 | 0 | ||||||||||
Principal | ||||||||||||
Amount | ||||||||||||
CORPORATE BONDS — 0.0% | ||||||||||||
Restaurants — 0.0% | ||||||||||||
$ | 137,000 | Biglari Holdings Inc., Sub. Deb., 14.000%, 03/30/15 | 134,249 | 133,781 | ||||||||
U.S. GOVERNMENT OBLIGATIONS — 21.6% | ||||||||||||
80,903,000 | U.S. Treasury Bills, 0.060% to 0.230%††, 10/07/10 to 03/17/11 | 80,872,744 | 80,876,519 | |||||||||
TOTAL INVESTMENTS — 99.5% | $ | 308,013,263 | 372,326,517 | |||||||||
Other Assets and Liabilities (Net) — 0.5% | 1,727,705 | |||||||||||
NET ASSETS — 100.0% | $ | 374,054,222 | ||||||||||
(a) | Security fair valued under procedures established by the Board of Trustees. The procedures may include reviewing available financial information about the company and reviewing the valuation of comparable securities and other factors on a regular basis. At September 30, 2010, the market value of fair valued securities amounted to $161,394 or 0.04% of net assets. | |
(b) | Security considered an affiliated holding because the Fund owns at least 5% of its outstanding shares. | |
(c) | At September 30, 2010, the Fund held investments in restricted and illiquid securities amounting to $53,913 or 0.01% of net assets, which were valued under methods approved by the Board of Trustees, as follows: |
09/30/10 | ||||||||||||||||
Carrying | ||||||||||||||||
Acquisition | Acquisition | Acquisition | Value | |||||||||||||
Shares | Issuer | Date | Cost | Per Unit | ||||||||||||
6,000 | Capital Properties Inc., Cl. B | 11/20/03 | — | $ | 8.7500 | |||||||||||
2,508 | Royalty LLC | 09/09/03 | — | 0.5634 |
† | Non-income producing security. | |
†† | Represents annualized yield at date of purchase. | |
ADR | American Depositary Receipt | |
CVO | Contingent Value Obligation |
See accompanying notes to financial statements.
17
GAMCO Westwood SmallCap Equity Fund
Schedule of Investments — September 30, 2010
Schedule of Investments — September 30, 2010
Market | ||||||||||||
Shares | Cost | Value | ||||||||||
COMMON STOCKS — 97.6% | ||||||||||||
Aerospace — 2.4% | ||||||||||||
3,200 | AAR Corp.† | $ | 52,269 | $ | 59,712 | |||||||
700 | Esterline Technologies Corp.† | 19,504 | 40,061 | |||||||||
1,800 | Herley Industries Inc.† | 22,411 | 29,700 | |||||||||
7,700 | Hexcel Corp.† | 116,615 | 136,983 | |||||||||
4,600 | Kaman Corp. | 82,901 | 120,566 | |||||||||
293,700 | 387,022 | |||||||||||
Automotive — 1.9% | ||||||||||||
2,400 | AutoNation Inc.† | 44,468 | 55,800 | |||||||||
500 | Group 1 Automotive Inc.† | 16,425 | 14,940 | |||||||||
1,100 | Navistar International Corp.† | 41,893 | 48,004 | |||||||||
2,400 | Penske Automotive Group Inc.† | 37,667 | 31,680 | |||||||||
6,900 | Rush Enterprises Inc., Cl. A† | 86,636 | 105,846 | |||||||||
6,100 | Wabash National Corp.† | 44,638 | 49,349 | |||||||||
271,727 | 305,619 | |||||||||||
Automotive: Parts and Accessories — 0.7% | ||||||||||||
1,900 | Federal-Mogul Corp.† | 24,695 | 35,929 | |||||||||
4,300 | Midas Inc.† | 54,734 | 32,723 | |||||||||
400 | Monro Muffler Brake Inc. | 12,436 | 18,444 | |||||||||
1,600 | Superior Industries International Inc. | 22,818 | 27,648 | |||||||||
114,683 | 114,744 | |||||||||||
Aviation: Parts and Services — 0.5% | ||||||||||||
2,000 | Astronics Corp.† | 18,913 | 34,900 | |||||||||
2,100 | Ducommun Inc. | 40,426 | 45,738 | |||||||||
59,339 | 80,638 | |||||||||||
Building and Construction — 0.9% | ||||||||||||
2,600 | Chicago Bridge & Iron Co., NV† | 50,128 | 63,570 | |||||||||
3,400 | Dycom Industries Inc.† | 31,769 | 33,966 | |||||||||
1,400 | Insituform Technologies Inc., Cl. A† | 20,052 | 33,852 | |||||||||
500 | KBR Inc. | 11,785 | 12,320 | |||||||||
113,734 | 143,708 | |||||||||||
Business Services — 3.4% | ||||||||||||
600 | Alliance Data Systems Corp.† | 24,717 | 39,156 | |||||||||
1,050 | Ascent Media Corp., Cl. A† | 24,024 | 28,045 | |||||||||
3,200 | Convergys Corp.† | 37,083 | 33,440 | |||||||||
7,043 | Edgewater Technology Inc.† | 47,384 | 19,157 | |||||||||
2,200 | FTI Consulting Inc.† | 73,008 | 76,318 | |||||||||
1,900 | G & K Services Inc., Cl. A | 47,818 | 43,434 | |||||||||
6,600 | GP Strategies Corp.† | 34,196 | 59,994 | |||||||||
2,000 | Healthcare Services Group Inc. | 34,839 | 45,580 | |||||||||
1,200 | Kforce Inc.† | 13,629 | 16,464 | |||||||||
3,000 | MDC Partners Inc., Cl. A | 17,240 | 40,110 | |||||||||
2,200 | Schawk Inc. | 25,150 | 40,612 | |||||||||
2,400 | Tetra Tech Inc.† | 51,844 | 50,328 | |||||||||
8,500 | Tier Technologies Inc.† | 64,901 | 47,090 | |||||||||
495,833 | 539,728 | |||||||||||
Commercial Services — 0.4% | ||||||||||||
2,600 | Heckmann Corp.† | 16,406 | 10,140 | |||||||||
2,000 | ICF International Inc.† | 44,927 | 50,140 | |||||||||
61,333 | 60,280 | |||||||||||
Communications Equipment — 3.0% | ||||||||||||
12,900 | CommScope Inc.† | 323,702 | 306,246 | |||||||||
5,400 | Harmonic Inc.† | 28,608 | 37,152 | |||||||||
2,800 | Plantronics Inc. | 46,551 | 94,584 | |||||||||
7,900 | Symmetricom Inc.† | 32,176 | 45,188 | |||||||||
431,037 | 483,170 | |||||||||||
Computer Hardware — 1.9% | ||||||||||||
4,200 | Cray Inc.† | 25,738 | 27,720 | |||||||||
6,000 | NCR Corp.† | 64,440 | 81,780 | |||||||||
2,200 | PC-Tel Inc.† | 12,502 | 13,508 | |||||||||
10,100 | QLogic Corp.† | 141,605 | 178,164 | |||||||||
244,285 | 301,172 | |||||||||||
Computer Software and Services — 6.5% | ||||||||||||
1,600 | Akamai Technologies Inc.† | 34,693 | 80,288 | |||||||||
2,000 | AOL Inc.† | 47,985 | 49,500 | |||||||||
2,500 | Avid Technology Inc.† | 35,985 | 32,775 | |||||||||
4,000 | Bottomline Technologies Inc.† | 60,672 | 61,440 | |||||||||
2,500 | Cadence Design Systems Inc.† | 14,093 | 19,075 | |||||||||
2,700 | Dynamics Research Corp.† | 29,252 | 27,756 | |||||||||
1,600 | Evolving Systems Inc. | 11,504 | 12,032 | |||||||||
4,000 | Fair Isaac Corp. | 74,571 | 98,640 | |||||||||
6,500 | Lawson Software Inc.† | 43,285 | 55,055 | |||||||||
29,600 | Magma Design Automation Inc.† | 59,927 | 109,520 | |||||||||
4,900 | Mercury Computer Systems Inc.† | 38,143 | 58,947 | |||||||||
7,700 | Parametric Technology Corp.† | 110,109 | 150,458 | |||||||||
2,600 | Progress Software Corp.† | 57,331 | 86,060 | |||||||||
900 | Rovi Corp.† | 15,567 | 45,369 | |||||||||
8,900 | S1 Corp.† | 46,727 | 46,369 | |||||||||
1,900 | Teradata Corp.† | 39,636 | 73,264 | |||||||||
6,900 | THQ Inc.† | 101,188 | 27,738 | |||||||||
820,668 | 1,034,286 | |||||||||||
Consumer Products — 1.4% | ||||||||||||
300 | Columbia Sportswear Co. | 13,131 | 17,532 | |||||||||
9,900 | Knoll Inc. | 117,867 | 153,549 | |||||||||
300 | The Warnaco Group Inc.† | 8,475 | 15,339 | |||||||||
1,000 | Tupperware Brands Corp. | 26,283 | 45,760 | |||||||||
165,756 | 232,180 | |||||||||||
Consumer Services — 0.0% | ||||||||||||
1,000 | TiVo Inc.† | 10,069 | 9,060 | |||||||||
Diversified Industrial — 3.4% | ||||||||||||
2,500 | A.M. Castle & Co.† | 25,591 | 33,125 | |||||||||
4,550 | Barnes Group Inc. | 97,763 | 80,035 | |||||||||
1,700 | Brush Engineered Materials Inc.† | 25,979 | 48,348 | |||||||||
1,860 | Columbus McKinnon Corp.† | 47,224 | 30,857 | |||||||||
4,381 | Federal Signal Corp. | 52,055 | 23,613 | |||||||||
6,400 | Furmanite Corp.† | 30,986 | 31,232 | |||||||||
4,788 | Griffon Corp.† | 41,704 | 58,366 | |||||||||
1,200 | Kaydon Corp. | 39,383 | 41,520 | |||||||||
700 | Lawson Products Inc. | 12,648 | 10,689 | |||||||||
1,500 | RSC Holdings Inc.† | 12,232 | 11,190 | |||||||||
4,500 | Sealed Air Corp. | 91,200 | 101,160 | |||||||||
700 | Texas Industries Inc. | 23,737 | 22,064 | |||||||||
2,600 | Tredegar Corp. | 36,867 | 49,348 | |||||||||
537,369 | 541,547 | |||||||||||
Educational Services — 0.4% | ||||||||||||
1,400 | Corinthian Colleges Inc.† | 20,026 | 9,828 | |||||||||
26,000 | The Princeton Review Inc.† | 107,046 | 53,040 | |||||||||
127,072 | 62,868 | |||||||||||
Electronics — 15.4% | ||||||||||||
1,600 | Analogic Corp. | 55,583 | 71,808 | |||||||||
3,600 | Avnet Inc.† | 77,517 | 97,236 | |||||||||
13,400 | Ballantyne Strong Inc.† | 60,697 | 115,910 | |||||||||
1,700 | Coherent Inc.† | 41,258 | 68,017 | |||||||||
13,300 | Electro Scientific Industries Inc.† | 167,119 | 147,763 | |||||||||
2,200 | FARO Technologies Inc.† | 49,512 | 47,982 |
See accompanying notes to financial statements.
18
GAMCO Westwood SmallCap Equity Fund
Schedule of Investments (Continued) — September 30, 2010
Schedule of Investments (Continued) — September 30, 2010
Market | ||||||||||||
Shares | Cost | Value | ||||||||||
COMMON STOCKS (Continued) | ||||||||||||
Electronics (Continued) | ||||||||||||
3,000 | General Cable Corp.† | $ | 86,526 | $ | 81,360 | |||||||
8,900 | International Rectifier Corp.† | 126,531 | 187,701 | |||||||||
3,600 | IXYS Corp.† | 23,882 | 34,380 | |||||||||
25,300 | LeCroy Corp.† | 150,987 | 199,870 | |||||||||
3,900 | Littelfuse Inc.† | 92,914 | 170,430 | |||||||||
7,100 | Molex Inc. | 127,140 | 148,603 | |||||||||
11,550 | Newport Corp.† | 107,655 | 130,977 | |||||||||
2,200 | OSI Systems Inc.† | 46,594 | 79,904 | |||||||||
5,300 | Park Electrochemical Corp. | 117,965 | 139,602 | |||||||||
7,400 | Radisys Corp.† | 61,848 | 69,708 | |||||||||
10,400 | Technitrol Inc. | 42,182 | 45,864 | |||||||||
10,100 | TTM Technologies Inc.† | 96,025 | 98,879 | |||||||||
3,300 | Ultralife Corp.† | 12,908 | 14,454 | |||||||||
24,700 | Vishay Intertechnology Inc.† | 153,149 | 239,096 | |||||||||
2,000 | Woodward Governor Co. | 55,723 | 64,840 | |||||||||
6,300 | Zebra Technologies Corp., Cl. A† | 160,953 | 211,932 | |||||||||
1,914,668 | 2,466,316 | |||||||||||
Energy and Utilities — 6.3% | ||||||||||||
11,500 | Brigham Exploration Co.† | 139,461 | 215,625 | |||||||||
1,000 | Flint Energy Services Ltd.† | 11,308 | 14,938 | |||||||||
5,100 | Goodrich Petroleum Corp.† | 121,373 | 74,307 | |||||||||
1,800 | Gulf Island Fabrication Inc. | 32,204 | 32,760 | |||||||||
800 | Helix Energy Solutions Group Inc.† | 9,128 | 8,912 | |||||||||
9,100 | Matrix Service Co.† | 90,878 | 79,625 | |||||||||
5,000 | Petrohawk Energy Corp.† | 106,380 | 80,700 | |||||||||
6,800 | Pike Electric Corp.† | 64,001 | 49,504 | |||||||||
4,400 | Pride International Inc.† | 79,634 | 129,492 | |||||||||
4,400 | Rowan Companies Inc.† | 80,133 | 133,584 | |||||||||
3,900 | Superior Energy Services Inc.† | 66,083 | 104,091 | |||||||||
4,300 | Tesco Corp.† | 38,672 | 51,729 | |||||||||
1,700 | Toreador Resources Corp.† | 14,433 | 19,006 | |||||||||
500 | Unit Corp.† | 16,134 | 18,645 | |||||||||
869,822 | 1,012,918 | |||||||||||
Entertainment — 0.9% | ||||||||||||
1,600 | Discovery Communications Inc., Cl. A† | 19,468 | 69,680 | |||||||||
400 | International Speedway Corp., Cl. A | 10,316 | 9,760 | |||||||||
6,350 | Take-Two Interactive Software Inc.† | 54,092 | 64,389 | |||||||||
83,876 | 143,829 | |||||||||||
Equipment and Supplies — 4.8% | ||||||||||||
1,700 | AZZ Inc. | 56,528 | 72,828 | |||||||||
1,500 | Crown Holdings Inc.† | 40,852 | 42,990 | |||||||||
14,000 | Gerber Scientific Inc.† | 89,535 | 86,380 | |||||||||
2,400 | GrafTech International Ltd.† | 28,504 | 37,512 | |||||||||
4,000 | IDEX Corp. | 112,163 | 142,040 | |||||||||
3,500 | Mine Safety Appliances Co. | 89,677 | 94,850 | |||||||||
1,850 | Robbins & Myers Inc. | 36,264 | 49,543 | |||||||||
1,800 | Tennant Co. | 44,744 | 55,620 | |||||||||
2,500 | The Greenbrier Cos. Inc.† | 32,375 | 38,975 | |||||||||
1,300 | The Toro Co. | 49,446 | 73,099 | |||||||||
1,200 | Titan Machinery Inc.† | 13,234 | 19,560 | |||||||||
3,400 | Vicor Corp. | 31,099 | 49,674 | |||||||||
624,421 | 763,071 | |||||||||||
Financial Services — 14.0% | ||||||||||||
1,500 | Beneficial Mutual Bancorp Inc.† | 15,439 | 13,455 | |||||||||
1,000 | Berkshire Hills Bancorp Inc. | 22,854 | 18,960 | |||||||||
1,600 | Brookline Bancorp Inc. | 15,947 | 15,968 | |||||||||
4,400 | Brown & Brown Inc. | 84,237 | 88,836 | |||||||||
3,700 | Cardinal Financial Corp. | 29,674 | 35,557 | |||||||||
4,200 | Columbia Banking System Inc. | 59,989 | 82,530 | |||||||||
10,000 | Cowen Group Inc., Cl. A† | 50,000 | 32,900 | |||||||||
1,750 | Danvers Bancorp Inc. | 20,319 | 26,828 | |||||||||
1,900 | Epoch Holding Corp. | 17,511 | 24,472 | |||||||||
6,850 | FBR Capital Markets Corp.† | 35,763 | 21,509 | |||||||||
1,100 | Fidelity National Financial Inc., Cl. A | 15,729 | 17,281 | |||||||||
25,000 | First Niagara Financial Group Inc. | 300,000 | 291,250 | |||||||||
6,000 | Flushing Financial Corp. | 76,928 | 69,360 | |||||||||
5,000 | HF Financial Corp. | 40,000 | 52,500 | |||||||||
5,250 | Hudson Valley Holding Corp. | 108,139 | 102,480 | |||||||||
700 | IBERIABANK Corp. | 33,330 | 34,986 | |||||||||
2,500 | Investors Bancorp Inc.† | 22,438 | 29,600 | |||||||||
4,800 | KBW Inc. | 122,895 | 122,880 | |||||||||
2,000 | Knight Capital Group Inc., Cl. A† | 32,743 | 24,780 | |||||||||
3,900 | Meadowbrook Insurance Group Inc. | 22,850 | 34,983 | |||||||||
12,600 | Nara Bancorp Inc.† | 94,500 | 88,956 | |||||||||
6,000 | National Penn Bancshares Inc. | 31,500 | 37,500 | |||||||||
3,950 | NewAlliance Bancshares Inc. | 48,300 | 49,849 | |||||||||
1,400 | Newport Bancorp Inc.† | 16,870 | 16,562 | |||||||||
2,000 | Old National Bancorp | 20,000 | 21,000 | |||||||||
2,600 | Orrstown Financial Services Inc. | 70,200 | 60,216 | |||||||||
4,100 | Sterling Bancorp | 44,849 | 35,629 | |||||||||
1,700 | Stifel Financial Corp.† | 77,799 | 78,693 | |||||||||
2,900 | SVB Financial Group† | 78,942 | 122,728 | |||||||||
4,200 | The NASDAQ OMX Group Inc.† | 83,624 | 81,606 | |||||||||
1,400 | The Navigators Group Inc.† | 61,025 | 62,482 | |||||||||
6,200 | Umpqua Holdings Corp. | 60,759 | 70,308 | |||||||||
5,250 | Valley National Bancorp | 64,134 | 67,725 | |||||||||
1,000 | Washington Banking Co. | 9,000 | 13,860 | |||||||||
3,000 | Washington Federal Inc. | 45,806 | 45,780 | |||||||||
6,300 | Washington Trust Bancorp Inc. | 118,422 | 120,456 | |||||||||
4,300 | Webster Financial Corp. | 52,272 | 75,508 | |||||||||
3,750 | Westfield Financial Inc. | 35,041 | 29,250 | |||||||||
400 | WSFS Financial Corp. | 11,024 | 15,004 | |||||||||
2,150,852 | 2,234,227 | |||||||||||
Food and Beverage — 0.4% | ||||||||||||
2,200 | The Cheesecake Factory Inc.† | 34,683 | 58,234 | |||||||||
Health Care — 5.5% | ||||||||||||
4,700 | AngioDynamics Inc.† | 61,900 | 71,628 | |||||||||
1,100 | ArthroCare Corp.† | 28,958 | 29,898 | |||||||||
1,000 | Assisted Living Concepts Inc., Cl. A† | 28,102 | 30,440 | |||||||||
16,700 | Clarient Inc.† | 66,185 | 56,446 | |||||||||
3,600 | Continucare Corp.† | 8,964 | 15,120 | |||||||||
1,200 | Cynosure Inc., Cl. A† | 9,468 | 12,252 | |||||||||
1,400 | ICU Medical Inc.† | 47,802 | 52,206 | |||||||||
2,700 | Kindred Healthcare Inc.† | 49,813 | 35,154 | |||||||||
800 | Natus Medical Inc.† | 8,676 | 11,656 | |||||||||
3,600 | Omnicare Inc. | 89,640 | 85,968 | |||||||||
4,500 | Omnicell Inc.† | 49,118 | 58,860 | |||||||||
4,500 | Patterson Companies Inc. | 125,167 | 128,925 | |||||||||
1,500 | PharMerica Corp.† | 33,426 | 14,295 | |||||||||
500 | PSS World Medical Inc.† | 8,155 | 10,690 | |||||||||
5,375 | Rochester Medical Corp.† | 55,049 | 58,641 | |||||||||
3,000 | Safeguard Scientifics Inc.† | 18,366 | 37,590 | |||||||||
1,000 | STERIS Corp. | 29,319 | 33,220 | |||||||||
1,100 | Syneron Medical Ltd.† | 9,144 | 10,912 | |||||||||
200 | Teleflex Inc. | 8,824 | 11,356 | |||||||||
3,300 | Zoll Medical Corp.† | 85,529 | 106,491 | |||||||||
821,605 | 871,748 | |||||||||||
See accompanying notes to financial statements.
19
GAMCO Westwood SmallCap Equity Fund
Schedule of Investments (Continued) — September 30, 2010
Schedule of Investments (Continued) — September 30, 2010
Market | ||||||||||||
Shares | Cost | Value | ||||||||||
COMMON STOCKS (Continued) | ||||||||||||
Machinery — 3.3% | ||||||||||||
500 | Baldor Electric Co. | $ | 15,702 | $ | 20,200 | |||||||
600 | Bucyrus International Inc. | 15,386 | 41,610 | |||||||||
3,500 | DXP Enterprises Inc.† | 43,739 | 66,430 | |||||||||
1,150 | Dynamic Materials Corp. | 33,061 | 17,377 | |||||||||
19,400 | Flow International Corp.† | 83,064 | 51,022 | |||||||||
1,500 | Gardner Denver Inc. | 53,860 | 80,520 | |||||||||
4,000 | Lydall Inc.† | 35,570 | 29,440 | |||||||||
600 | Terex Corp.† | 11,966 | 13,752 | |||||||||
6,500 | The Manitowoc Co. Inc. | 43,760 | 78,715 | |||||||||
6,000 | Trinity Industries Inc. | 129,007 | 133,620 | |||||||||
465,115 | 532,686 | |||||||||||
Metals and Mining — 0.9% | ||||||||||||
2,700 | 5N Plus Inc.† | 12,937 | 15,168 | |||||||||
950 | Franco-Nevada Corp. | 21,629 | 29,888 | |||||||||
7,100 | Globe Specialty Metals Inc.† | 95,564 | 99,684 | |||||||||
130,130 | 144,740 | |||||||||||
Publishing — 1.0% | ||||||||||||
8,500 | Belo Corp., Cl. A† | 17,711 | 52,700 | |||||||||
3,900 | Journal Communications Inc., Cl. A† | 18,539 | 17,589 | |||||||||
1,900 | Meredith Corp. | 52,935 | 63,289 | |||||||||
2,500 | The Dolan Co.† | 27,630 | 28,425 | |||||||||
116,815 | 162,003 | |||||||||||
Real Estate — 0.1% | ||||||||||||
1,200 | Kennedy-Wilson | |||||||||||
Holdings Inc.† | 11,926 | 12,720 | ||||||||||
Restaurants — 0.3% | ||||||||||||
5,700 | Denny’s Corp.† | 13,949 | 17,727 | |||||||||
5,200 | Morton’s Restaurant Group Inc.† | 33,000 | 25,428 | |||||||||
46,949 | 43,155 | |||||||||||
Retail — 2.5% | ||||||||||||
3,900 | American Eagle Outfitters Inc. | 54,453 | 58,344 | |||||||||
2,100 | AnnTaylor Stores Corp.† | 21,566 | 42,504 | |||||||||
3,300 | Foot Locker Inc. | 46,557 | 47,949 | |||||||||
1,700 | J. Crew Group Inc.† | 52,286 | 57,154 | |||||||||
3,900 | Saks Inc.† | 7,341 | 33,540 | |||||||||
1,100 | Stage Stores Inc. | 12,936 | 14,300 | |||||||||
6,900 | The Wet Seal Inc., Cl. A† | 23,184 | 23,391 | |||||||||
1,200 | Tiffany & Co. | 33,297 | 56,388 | |||||||||
1,900 | Williams-Sonoma Inc. | 25,114 | 60,230 | |||||||||
276,734 | 393,800 | |||||||||||
Semiconductors — 12.0% | ||||||||||||
23,700 | Advanced Analogic Technologies Inc.† | 98,170 | 83,187 | |||||||||
900 | Advanced Energy Industries Inc.† | 11,673 | 11,754 | |||||||||
5,600 | Atmel Corp.† | 28,728 | 44,576 | |||||||||
5,100 | ATMI Inc.† | 74,595 | 75,786 | |||||||||
13,000 | Brooks Automation Inc.† | 88,776 | 87,230 | |||||||||
8,900 | Cascade Microtech Inc.† | 49,271 | 33,553 | |||||||||
3,250 | Cohu Inc. | 44,238 | 40,918 | |||||||||
30,500 | Entegris Inc.† | 66,647 | 142,435 | |||||||||
19,500 | FormFactor Inc.† | 274,286 | 167,700 | |||||||||
8,200 | FSI International Inc.† | 5,676 | 21,812 | |||||||||
18,500 | Integrated Device Technology Inc.† | 142,640 | 108,225 | |||||||||
5,000 | Kulicke & Soffa Industries Inc.† | 10,089 | 30,950 | |||||||||
4,000 | Mattson Technology Inc.† | 16,087 | 11,000 | |||||||||
6,600 | Microsemi Corp.† | 90,928 | 113,190 | |||||||||
1,800 | MKS Instruments Inc.† | 38,742 | 32,364 | |||||||||
10,600 | ON Semiconductor Corp.† | 69,162 | 76,426 | |||||||||
6,600 | Pericom Semiconductor Corp.† | 58,279 | 57,354 | |||||||||
6,950 | PLX Technology Inc.† | 45,126 | 25,159 | |||||||||
18,400 | Silicon Image Inc.† | 65,090 | 87,952 | |||||||||
6,000 | STEC Inc.† | 69,593 | 74,700 | |||||||||
12,300 | Trident Microsystems Inc.† | 23,104 | 21,033 | |||||||||
17,200 | Ultra Clean Holdings Inc.† | 45,377 | 148,264 | |||||||||
1,550 | Ultratech Inc.† | 20,411 | 26,505 | |||||||||
5,700 | Varian Semiconductor Equipment Associates Inc.† | 153,064 | 164,046 | |||||||||
1,900 | Veeco Instruments Inc.† | 62,119 | 66,253 | |||||||||
10,300 | Verigy Ltd.† | 140,041 | 83,739 | |||||||||
10,300 | Zoran Corp.† | 86,170 | 78,692 | |||||||||
1,878,082 | 1,914,803 | |||||||||||
Specialty Chemicals — 2.5% | ||||||||||||
2,700 | Arch Chemicals Inc. | 78,367 | 94,743 | |||||||||
3,969 | Ferro Corp.† | 49,408 | 51,160 | |||||||||
4,400 | H.B. Fuller Co. | 99,098 | 87,428 | |||||||||
2,700 | Olin Corp. | 60,345 | 54,432 | |||||||||
2,200 | Valspar Corp. | 45,355 | 70,070 | |||||||||
2,650 | Zep Inc. | 41,708 | 46,216 | |||||||||
374,281 | 404,049 | |||||||||||
Telecommunications — 0.6% | ||||||||||||
1,800 | Atlantic Tele-Network Inc. | 85,758 | 88,632 | |||||||||
5,800 | UTStarcom Inc.† | 12,875 | 12,586 | |||||||||
98,633 | 101,218 | |||||||||||
Transportation — 0.3% | ||||||||||||
1,000 | Atlas Air Worldwide | |||||||||||
Holdings Inc.† | 23,011 | 50,300 | ||||||||||
TOTAL COMMON STOCKS | 13,668,208 | 15,605,839 | ||||||||||
Principal | ||||||||||||
Amount | ||||||||||||
U.S. GOVERNMENT OBLIGATIONS — 1.9% | ||||||||||||
$ | 300,000 | U.S. Treasury Bill, 0.145%††, 11/12/10 | 299,949 | 299,949 | ||||||||
TOTAL INVESTMENTS — 99.5% | $ | 13,968,157 | 15,905,788 | |||||||||
Other Assets and Liabilities (Net) — 0.5% | 78,224 | |||||||||||
NET ASSETS — 100.0% | $ | 15,984,012 | ||||||||||
† | Non-income producing security. | |
†† | Represents annualized yield at date of purchase. |
See accompanying notes to financial statements.
20
GAMCO Westwood Income Fund
Schedule of Investments — September 30, 2010
Schedule of Investments — September 30, 2010
Market | ||||||||||||
Shares | Cost | Value | ||||||||||
COMMON STOCKS — 77.1% | ||||||||||||
Agriculture — 0.6% | ||||||||||||
1,000 | Archer-Daniels-Midland Co. | $ | 28,410 | $ | 31,920 | |||||||
Automotive: Parts and Accessories — 1.5% | ||||||||||||
1,000 | Lear Corp.† | 80,101 | 78,930 | |||||||||
Banking — 3.2% | ||||||||||||
2,000 | Bank of America Corp. | 27,640 | 26,220 | |||||||||
4,000 | U.S. Bancorp | 131,903 | 86,480 | |||||||||
4,574 | Valley National Bancorp | 81,811 | 59,004 | |||||||||
241,354 | 171,704 | |||||||||||
Business Services — 0.2% | ||||||||||||
300 | Automatic Data Processing Inc. | 12,697 | 12,609 | |||||||||
Computer Hardware — 3.2% | ||||||||||||
500 | Apple Inc.† | 45,563 | 141,875 | |||||||||
200 | International Business Machines Corp. | 25,251 | 26,828 | |||||||||
70,814 | 168,703 | |||||||||||
Computer Software and Services — 0.4% | ||||||||||||
1,000 | EMC Corp.† | 12,780 | 20,310 | |||||||||
Diversified Industrial — 3.5% | ||||||||||||
6,000 | General Electric Co. | 94,338 | 97,500 | |||||||||
2,000 | Honeywell International Inc. | 78,538 | 87,880 | |||||||||
172,876 | 185,380 | |||||||||||
Electronics — 2.9% | ||||||||||||
8,000 | Intel Corp. | 188,828 | 153,840 | |||||||||
Energy and Utilities: Integrated — 0.9% | ||||||||||||
2,000 | Allegheny Energy Inc. | 50,482 | 49,040 | |||||||||
Energy and Utilities: Natural Gas — 3.2% | ||||||||||||
7,500 | Spectra Energy Corp. | 194,846 | 169,125 | |||||||||
Energy and Utilities: Oil — 7.0% | ||||||||||||
1,000 | BP plc, ADR | 75,428 | 41,170 | |||||||||
1,500 | Chevron Corp. | 127,333 | 121,575 | |||||||||
2,500 | ConocoPhillips | 200,189 | 143,575 | |||||||||
1,000 | Devon Energy Corp. | 47,079 | 64,740 | |||||||||
450,029 | 371,060 | |||||||||||
Energy and Utilities: Services — 4.9% | ||||||||||||
5,000 | Halliburton Co. | 180,373 | 165,350 | |||||||||
1,000 | Noble Corp. | 48,914 | 33,790 | |||||||||
1,000 | Transocean Ltd.† | 82,810 | 64,290 | |||||||||
312,097 | 263,430 | |||||||||||
Energy and Utilities: Water — 2.8% | ||||||||||||
6,500 | American Water Works Co. Inc. | 113,655 | 151,255 | |||||||||
Financial Services — 6.5% | ||||||||||||
416 | Alleghany Corp.† | 114,081 | 126,060 | |||||||||
4,000 | Discover Financial Services | 26,686 | 66,720 | |||||||||
6,000 | Wells Fargo & Co. | 193,140 | 150,780 | |||||||||
333,907 | 343,560 | |||||||||||
Food and Beverage — 14.6% | ||||||||||||
7,000 | ConAgra Foods Inc. | 174,145 | 153,580 | |||||||||
7,522 | General Mills Inc. | 221,761 | 274,854 | |||||||||
7,000 | Kraft Foods Inc., Cl. A | 231,325 | 216,020 | |||||||||
2,000 | PepsiCo Inc. | 107,960 | 132,880 | |||||||||
735,191 | 777,334 | |||||||||||
Health Care — 8.2% | ||||||||||||
2,883 | Bristol-Myers Squibb Co. | 70,582 | 78,158 | |||||||||
1,500 | Johnson & Johnson | 85,403 | 92,940 | |||||||||
2,520 | Mead Johnson Nutrition Co. | 107,163 | 143,413 | |||||||||
6,940 | Pfizer Inc. | 146,422 | 119,160 | |||||||||
409,570 | 433,671 | |||||||||||
Retail — 1.2% | ||||||||||||
2,000 | The Home Depot Inc. | 79,247 | 63,360 | |||||||||
Specialty Chemicals — 4.9% | ||||||||||||
700 | Air Products and Chemicals Inc. | 52,038 | 57,974 | |||||||||
4,500 | E. I. du Pont de Nemours and Co. | 224,363 | 200,790 | |||||||||
276,401 | 258,764 | |||||||||||
Telecommunications — 7.4% | ||||||||||||
6,000 | AT&T Inc. | 199,425 | 171,600 | |||||||||
1,200 | Frontier Communications Corp. | 12,539 | 9,804 | |||||||||
1,000 | Research In Motion Ltd.† | 70,686 | 48,690 | |||||||||
5,000 | Verizon Communications Inc. | 196,481 | 162,950 | |||||||||
479,131 | 393,044 | |||||||||||
TOTAL COMMON STOCKS | 4,242,416 | 4,097,039 | ||||||||||
PREFERRED STOCKS — 11.4% | ||||||||||||
Broadcasting — 2.8% | ||||||||||||
6,000 | CBS Corp., 7.250% Pfd. | 151,216 | 150,840 | |||||||||
Financial Services — 8.6% | ||||||||||||
12,000 | Bank One Capital Trust VI, 7.200% Pfd. | 305,738 | 309,840 | |||||||||
5,900 | Wells Fargo Capital Trust IV, 7.000% Pfd. | 150,504 | 148,562 | |||||||||
456,242 | 458,402 | |||||||||||
TOTAL PREFERRED STOCKS | 607,458 | 609,242 | ||||||||||
Principal | ||||||||||||
Amount | ||||||||||||
CORPORATE BONDS — 4.7% | ||||||||||||
Financial Services — 4.7% | ||||||||||||
$ | 250,000 | American Express Credit Corp., MTN, 0.417%, 06/16/11 (a) | 250,000 | 249,643 | ||||||||
U.S. GOVERNMENT OBLIGATIONS — 6.7% | ||||||||||||
355,000 | U.S. Treasury Bills, 0.180%††, 11/26/10 | 354,901 | 354,901 | |||||||||
TOTAL INVESTMENTS — 99.9% | $ | 5,454,775 | 5,310,825 | |||||||||
Other Assets and Liabilities (Net) — 0.1% | 3,503 | |||||||||||
NET ASSETS — 100.0% | $ | 5,314,328 | ||||||||||
(a) | Floating rate security. The rate disclosed is that in effect at September 30, 2010. | |
† | Non-income producing security. | |
†† | Represents annualized yield at date of purchase. | |
ADR | American Depositary Receipt | |
MTN | Medium Term Note |
See accompanying notes to financial statements.
21
GAMCO Westwood Equity Fund
Schedule of Investments — September 30, 2010
Schedule of Investments — September 30, 2010
Market | ||||||||||||
Shares | Cost | Value | ||||||||||
COMMON STOCKS — 99.0% | ||||||||||||
Aerospace — 3.0% | ||||||||||||
23,300 | Raytheon Co. | $ | 988,478 | $ | 1,065,043 | |||||||
33,800 | The Boeing Co. | 2,059,962 | 2,249,052 | |||||||||
3,048,440 | 3,314,095 | |||||||||||
Automotive — 0.7% | ||||||||||||
9,000 | Cummins Inc. | 622,772 | 815,220 | |||||||||
Banking — 7.7% | ||||||||||||
164,200 | Bank of America Corp. | 2,652,604 | 2,152,662 | |||||||||
81,184 | JPMorgan Chase & Co. | 2,204,926 | 3,090,675 | |||||||||
122,500 | Wells Fargo & Co. | 2,393,453 | 3,078,425 | |||||||||
7,250,983 | 8,321,762 | |||||||||||
Cable and Satellite — 4.2% | �� | |||||||||||
123,500 | Comcast Corp., Cl. A | 2,142,100 | 2,232,880 | |||||||||
55,000 | DIRECTV, Cl. A† | 1,607,737 | 2,289,650 | |||||||||
3,749,837 | 4,522,530 | |||||||||||
Communications Equipment — 4.2% | ||||||||||||
99,200 | Cisco Systems Inc.† | 1,956,949 | 2,172,480 | |||||||||
65,100 | Corning Inc. | 1,008,568 | 1,190,028 | |||||||||
138,100 | Motorola Inc.† | 1,113,377 | 1,177,993 | |||||||||
4,078,894 | 4,540,501 | |||||||||||
Computer Hardware — 3.1% | ||||||||||||
16,500 | International Business Machines Corp. | 1,869,596 | 2,213,310 | |||||||||
110,500 | Xerox Corp. | 1,115,586 | 1,143,675 | |||||||||
2,985,182 | 3,356,985 | |||||||||||
Computer Software and Services — 6.1% | ||||||||||||
46,600 | eBay Inc.† | 1,049,704 | 1,137,040 | |||||||||
107,800 | EMC Corp.† | 1,721,954 | 2,189,418 | |||||||||
87,000 | Microsoft Corp. | 2,392,498 | 2,130,630 | |||||||||
42,600 | Oracle Corp. | 775,933 | 1,143,810 | |||||||||
5,940,089 | 6,600,898 | |||||||||||
Consumer Products — 3.2% | ||||||||||||
15,000 | NIKE Inc., Cl. B | 831,257 | 1,202,100 | |||||||||
40,980 | Philip Morris International Inc. | 1,972,010 | 2,295,700 | |||||||||
2,803,267 | 3,497,800 | |||||||||||
Diversified Industrial — 3.1% | ||||||||||||
51,300 | Honeywell International Inc. | 2,011,507 | 2,254,122 | |||||||||
23,800 | ITT Corp. | 962,903 | 1,114,554 | |||||||||
2,974,410 | 3,368,676 | |||||||||||
Electronics — 0.9% | ||||||||||||
53,400 | Intel Corp. | 1,008,192 | 1,026,882 | |||||||||
Energy: Integrated — 3.9% | ||||||||||||
57,500 | American Electric Power Co. Inc. | 1,961,487 | 2,083,225 | |||||||||
50,500 | Dominion Resources Inc. | 1,882,908 | 2,204,830 | |||||||||
3,844,395 | 4,288,055 | |||||||||||
Energy: Natural Gas — 6.2% | ||||||||||||
23,206 | Apache Corp. | 1,755,414 | 2,268,618 | |||||||||
63,700 | EQT Corp. | 2,723,750 | 2,297,022 | |||||||||
40,100 | Sempra Energy | 2,070,553 | 2,157,380 | |||||||||
6,549,717 | 6,723,020 | |||||||||||
Energy: Oil — 9.2% | ||||||||||||
39,000 | Anadarko Petroleum Corp. | 1,981,059 | 2,224,950 | |||||||||
41,100 | Chevron Corp. | 2,959,709 | 3,331,155 | |||||||||
35,500 | Exxon Mobil Corp. | 2,434,956 | 2,193,545 | |||||||||
28,110 | Occidental Petroleum Corp. | 1,728,598 | 2,201,013 | |||||||||
9,104,322 | 9,950,663 | |||||||||||
Energy: Services — 1.2% | ||||||||||||
28,300 | National Oilwell Varco Inc. | 1,202,787 | 1,258,501 | |||||||||
Entertainment — 1.9% | ||||||||||||
63,600 | The Walt Disney Co. | 1,848,458 | 2,105,796 | |||||||||
Financial Services — 12.3% | ||||||||||||
38,600 | ACE Ltd. | 1,905,084 | 2,248,450 | |||||||||
42,300 | Aflac Inc. | 2,064,394 | 2,187,333 | |||||||||
46,400 | Ameriprise Financial Inc. | 1,835,329 | 2,196,112 | |||||||||
21,300 | Franklin Resources Inc. | 2,295,916 | 2,276,970 | |||||||||
57,000 | MetLife Inc. | 2,077,279 | 2,191,650 | |||||||||
44,100 | The Travelers Companies Inc. | 1,736,234 | 2,297,610 | |||||||||
11,914,236 | 13,398,125 | |||||||||||
Food and Beverage — 0.9% | ||||||||||||
36,300 | Sysco Corp. | 827,956 | 1,035,276 | |||||||||
Health Care — 12.2% | ||||||||||||
77,900 | Bristol-Myers Squibb Co. | 1,786,147 | 2,111,869 | |||||||||
54,000 | Covidien plc | 2,201,394 | 2,170,260 | |||||||||
53,600 | Johnson & Johnson | 3,384,893 | 3,321,056 | |||||||||
30,300 | Merck & Co. Inc. | 941,316 | 1,115,343 | |||||||||
193,900 | Pfizer Inc. | 3,152,045 | 3,329,263 | |||||||||
22,200 | Teva Pharmaceutical Industries Ltd., ADR | 1,271,914 | 1,171,050 | |||||||||
12,737,709 | 13,218,841 | |||||||||||
Machinery — 2.2% | ||||||||||||
15,800 | Caterpillar Inc. | 1,019,859 | 1,243,144 | |||||||||
15,800 | Deere & Co. | 698,924 | 1,102,524 | |||||||||
1,718,783 | 2,345,668 | |||||||||||
Metals and Mining — 1.0% | ||||||||||||
27,600 | Nucor Corp. | 1,242,177 | 1,054,320 | |||||||||
Retail — 5.2% | ||||||||||||
74,000 | CVS Caremark Corp. | 2,175,068 | 2,328,780 | |||||||||
118,700 | The Gap Inc. | 2,187,214 | 2,212,568 | |||||||||
25,600 | The TJX Companies Inc. | 1,072,338 | 1,142,528 | |||||||||
5,434,620 | 5,683,876 | |||||||||||
Specialty Chemicals — 2.0% | ||||||||||||
49,000 | E. I. du Pont de Nemours and Co. | 1,547,640 | 2,186,380 | |||||||||
Telecommunications — 2.5% | ||||||||||||
94,800 | AT&T Inc. | 2,695,216 | 2,711,280 | |||||||||
Transportation — 2.1% | ||||||||||||
27,400 | Union Pacific Corp. | 1,430,427 | 2,241,320 | |||||||||
TOTAL COMMON STOCKS | 96,560,509 | 107,566,470 | ||||||||||
SHORT-TERM INVESTMENTS — 1.0% | ||||||||||||
Mutual Funds — 1.0% | ||||||||||||
1,035,442 | Dreyfus Treasury & Agency Cash Management Fund, 0.190%* | 1,035,442 | 1,035,442 | |||||||||
TOTAL INVESTMENTS — 100.0% | $ | 97,595,951 | 108,601,912 | |||||||||
Other Assets and Liabilities (Net) — 0.0% | 48,387 | |||||||||||
NET ASSETS — 100.0% | $ | 108,650,299 | ||||||||||
† | Non-income producing security. | |
* | Current yield as of September 30, 2010. | |
ADR | American Depositary Receipt |
See accompanying notes to financial statements.
22
GAMCO Westwood Balanced Fund
Schedule of Investments — September 30, 2010
Schedule of Investments — September 30, 2010
Market | ||||||||||||
Shares | Cost | Value | ||||||||||
COMMON STOCKS —59.5% | ||||||||||||
Aerospace — 1.8% | ||||||||||||
14,100 | Raytheon Co. | $ | 506,276 | $ | 644,511 | |||||||
22,000 | The Boeing Co. | 1,347,224 | 1,463,880 | |||||||||
1,853,500 | 2,108,391 | |||||||||||
Automotive — 0.4% | ||||||||||||
5,700 | Cummins Inc. | 395,628 | 516,306 | |||||||||
Banking — 4.7% | ||||||||||||
103,100 | Bank of America Corp. | 1,652,726 | 1,351,641 | |||||||||
54,696 | JPMorgan Chase & Co. | 1,334,939 | 2,082,277 | |||||||||
86,100 | Wells Fargo & Co. | 1,625,994 | 2,163,693 | |||||||||
4,613,659 | 5,597,611 | |||||||||||
Cable and Satellite — 2.5% | ||||||||||||
77,900 | Comcast Corp., Cl. A | 1,365,321 | 1,408,432 | |||||||||
36,300 | DIRECTV, Cl. A† | 1,027,808 | 1,511,169 | |||||||||
2,393,129 | 2,919,601 | |||||||||||
Communications Equipment — 2.4% | ||||||||||||
62,600 | Cisco Systems Inc.† | 1,235,828 | 1,370,940 | |||||||||
42,300 | Corning Inc. | 663,000 | 773,244 | |||||||||
86,500 | Motorola Inc.† | 697,367 | 737,845 | |||||||||
2,596,195 | 2,882,029 | |||||||||||
Computer Hardware — 1.9% | ||||||||||||
11,400 | International Business | |||||||||||
Machines Corp. | 1,243,953 | 1,529,196 | ||||||||||
74,900 | Xerox Corp. | 763,879 | 775,215 | |||||||||
2,007,832 | 2,304,411 | |||||||||||
Computer Software and Services — 3.7% | ||||||||||||
33,600 | eBay Inc.† | 752,903 | 819,840 | |||||||||
69,900 | EMC Corp.† | 980,174 | 1,419,669 | |||||||||
56,100 | Microsoft Corp. | 1,505,984 | 1,373,889 | |||||||||
29,380 | Oracle Corp. | 527,362 | 788,853 | |||||||||
3,766,423 | 4,402,251 | |||||||||||
Consumer Products — 2.0% | ||||||||||||
9,600 | NIKE Inc., Cl. B | 534,434 | 769,344 | |||||||||
27,820 | Philip Morris International Inc. | 1,272,269 | 1,558,476 | |||||||||
1,806,703 | 2,327,820 | |||||||||||
Diversified Industrial — 1.8% | ||||||||||||
32,300 | Honeywell International Inc. | 1,268,663 | 1,419,262 | |||||||||
15,290 | ITT Corp. | 607,842 | 716,031 | |||||||||
1,876,505 | 2,135,293 | |||||||||||
Electronics — 0.7% | ||||||||||||
41,500 | Intel Corp. | 772,931 | 798,045 | |||||||||
Energy: Integrated — 2.4% | ||||||||||||
39,100 | American Electric Power Co. Inc. | 1,329,037 | 1,416,593 | |||||||||
33,200 | Dominion Resources Inc. | 1,239,473 | 1,449,512 | |||||||||
2,568,510 | 2,866,105 | |||||||||||
Energy: Natural Gas — 3.6% | ||||||||||||
14,655 | Apache Corp. | 1,087,300 | 1,432,673 | |||||||||
40,800 | EQT Corp. | 1,747,374 | 1,471,248 | |||||||||
26,000 | Sempra Energy | 1,342,036 | 1,398,800 | |||||||||
4,176,710 | 4,302,721 | |||||||||||
Energy: Oil — 5.4% | ||||||||||||
26,200 | Anadarko Petroleum Corp. | 1,281,232 | 1,494,710 | |||||||||
26,300 | Chevron Corp. | 1,894,155 | 2,131,615 | |||||||||
22,300 | Exxon Mobil Corp. | 1,441,759 | 1,377,917 | |||||||||
18,400 | Occidental Petroleum Corp. | 922,944 | 1,440,720 | |||||||||
5,540,090 | 6,444,962 | |||||||||||
Energy: Services — 0.7% | ||||||||||||
17,800 | National Oilwell Varco Inc. | 756,523 | 791,566 | |||||||||
Entertainment — 1.1% | ||||||||||||
40,300 | The Walt Disney Co. | 1,088,843 | 1,334,333 | |||||||||
Financial Services — 7.4% | ||||||||||||
24,600 | ACE Ltd. | 1,072,327 | 1,432,950 | |||||||||
27,100 | Aflac Inc. | 1,322,282 | 1,401,341 | |||||||||
32,400 | Ameriprise Financial Inc. | 1,264,736 | 1,533,492 | |||||||||
15,200 | Franklin Resources Inc. | 1,614,973 | 1,624,880 | |||||||||
35,400 | MetLife Inc. | 1,293,893 | 1,361,130 | |||||||||
26,700 | The Travelers Companies Inc. | 1,051,169 | 1,391,070 | |||||||||
7,619,380 | 8,744,863 | |||||||||||
Food and Beverage — 0.5% | ||||||||||||
23,100 | Sysco Corp. | 526,894 | 658,812 | |||||||||
Health Care — 7.5% | ||||||||||||
55,500 | Bristol-Myers Squibb Co. | 1,261,381 | 1,504,605 | |||||||||
34,100 | Covidien plc | 1,294,992 | 1,370,479 | |||||||||
35,700 | Johnson & Johnson | 2,270,988 | 2,211,972 | |||||||||
22,900 | Merck & Co. Inc. | 693,104 | 842,949 | |||||||||
126,000 | Pfizer Inc. | 2,039,069 | 2,163,420 | |||||||||
16,200 | Teva Pharmaceutical Industries Ltd., ADR | 927,806 | 854,550 | |||||||||
8,487,340 | 8,947,975 | |||||||||||
Machinery — 1.3% | ||||||||||||
10,500 | Caterpillar Inc. | 677,812 | 826,140 | |||||||||
10,100 | Deere & Co. | 449,473 | 704,778 | |||||||||
1,127,285 | 1,530,918 | |||||||||||
Metals and Mining — 0.6% | ||||||||||||
17,600 | Nucor Corp. | 794,145 | 672,320 | |||||||||
Retail — 3.1% | ||||||||||||
46,700 | CVS Caremark Corp. | 1,332,084 | 1,469,649 | |||||||||
74,900 | The Gap Inc. | 1,372,905 | 1,396,136 | |||||||||
18,800 | The TJX Companies Inc. | 782,919 | 839,044 | |||||||||
3,487,908 | 3,704,829 | |||||||||||
Specialty Chemicals — 1.3% | ||||||||||||
33,600 | E. I. du Pont de Nemours and Co. | 1,068,345 | 1,499,232 | |||||||||
Telecommunications — 1.4% | ||||||||||||
59,900 | AT&T Inc. | 1,744,713 | 1,713,140 | |||||||||
Transportation — 1.3% | ||||||||||||
18,800 | Union Pacific Corp. | 971,307 | 1,537,840 | |||||||||
TOTAL COMMON STOCKS | 62,040,498 | 70,741,374 | ||||||||||
SHORT-TERM INVESTMENTS — 3.1% | ||||||||||||
Mutual Funds — 3.1% | ||||||||||||
3,647,590 | Dreyfus Treasury & Agency Cash Management Fund, 0.190%* | 3,647,590 | 3,647,590 | |||||||||
Principal | ||||||||||||
Amount | ||||||||||||
CORPORATE BONDS — 14.2% | ||||||||||||
Banking — 3.4% | ||||||||||||
$ | 1,250,000 | Bank of America Corp., 5.375%, 06/15/14 | 1,275,695 | 1,350,384 | ||||||||
500,000 | Barclays Bank plc, Ser. 1, 5.000%, 09/22/16 | 512,417 | 547,774 | |||||||||
1,125,000 | Citigroup Inc., 5.500%, 10/15/14 | 1,128,538 | 1,221,810 | |||||||||
750,000 | JPMorgan Chase & Co., 6.300%, 04/23/19 | 772,246 | 870,614 | |||||||||
3,688,896 | 3,990,582 | |||||||||||
See accompanying notes to financial statements.
23
GAMCO Westwood Balanced Fund
Schedule of Investments (Continued) — September 30, 2010
Schedule of Investments (Continued) — September 30, 2010
Principal | Market | |||||||||||
Amount | Cost | Value | ||||||||||
CORPORATE BONDS (Continued) | ||||||||||||
Computer Software and Services — 0.7% | ||||||||||||
$ | 750,000 | Oracle Corp., 4.950%, 04/15/13 | $ | 750,226 | $ | 826,658 | ||||||
Diversified Industrial — 1.1% | ||||||||||||
1,200,000 | General Electric Co., 5.000%, 02/01/13 | 1,204,869 | 1,303,854 | |||||||||
Electronics — 0.7% | ||||||||||||
750,000 | Koninklijke Philips Electronics NV, 4.625%, 03/11/13 | 748,493 | 813,433 | |||||||||
Energy: Integrated — 0.5% | ||||||||||||
500,000 | Southern Co., 4.150%, 05/15/14 | 499,621 | 542,136 | |||||||||
Energy: Natural Gas — 0.9% | ||||||||||||
1,000,000 | Apache Corp., 5.250%, 04/15/13 | 999,945 | 1,090,743 | |||||||||
Energy: Oil — 1.9% | ||||||||||||
1,000,000 | Anadarko Petroleum Corp., 5.950%, 09/15/16 | 980,512 | 1,093,303 | |||||||||
500,000 | Marathon Oil Corp., 5.900%, 03/15/18 | 502,306 | 578,004 | |||||||||
500,000 | XTO Energy Inc., 6.500%, 12/15/18 | 570,654 | 637,756 | |||||||||
2,053,472 | 2,309,063 | |||||||||||
Financial Services — 0.7% | ||||||||||||
750,000 | ACE INA Holdings Inc., 5.600%, 05/15/15 | 748,141 | 851,614 | |||||||||
Food and Beverage — 0.8% | ||||||||||||
950,000 | Anheuser-Busch Companies Inc., 4.375%, 01/15/13 | 944,923 | 1,012,325 | |||||||||
Metals and Mining — 0.7% | ||||||||||||
750,000 | BHP Billiton Finance USA Ltd., 5.500%, 04/01/14 | 754,470 | 844,609 | |||||||||
Real Estate Investment Trusts — 0.6% | ||||||||||||
700,000 | Vornado Realty LP, 4.250%, 04/01/15 | 697,346 | 725,165 | |||||||||
Telecommunications — 0.5% | ||||||||||||
500,000 | AT&T Inc., 6.700%, 11/15/13 | 501,193 | 579,344 | |||||||||
Transportation — 1.0% | ||||||||||||
1,000,000 | Burlington Northern Santa Fe LLC, Deb., 5.650%, 05/01/17 | 986,728 | 1,155,399 | |||||||||
Wireless Communications — 0.7% | ||||||||||||
750,000 | Vodafone Group plc, 4.150%, 06/10/14 | 764,888 | 810,753 | |||||||||
TOTAL CORPORATE BONDS | 15,343,211 | 16,855,678 | ||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS — 12.4% | ||||||||||||
Federal Home Loan Mortgage Corp. — 6.6% | ||||||||||||
1,500,000 | 4.750%, 12/08/10 | 1,499,391 | 1,512,732 | |||||||||
1,500,000 | 2.125%, 03/23/12 | 1,512,412 | 1,537,397 | |||||||||
1,250,000 | 5.125%, 07/15/12 | 1,245,478 | 1,352,749 | |||||||||
1,500,000 | 5.250%, 04/18/16 | 1,484,584 | 1,774,949 | |||||||||
1,500,000 | 3.750%, 03/27/19 | 1,494,924 | 1,634,014 | |||||||||
7,236,789 | 7,811,841 | |||||||||||
Federal National Mortgage Association — 5.8% | ||||||||||||
1,250,000 | 3.375%, 05/19/11 | 1,268,557 | 1,274,936 | |||||||||
1,500,000 | 5.375%, 11/15/11 | 1,502,648 | 1,584,471 | |||||||||
1,250,000 | 4.375%, 09/15/12 | 1,311,000 | 1,343,473 | |||||||||
1,500,000 | 5.000%, 04/15/15 | 1,540,438 | 1,739,535 | |||||||||
775,000 | 5.375%, 06/12/17 | 830,211 | 932,620 | |||||||||
6,452,854 | 6,875,035 | |||||||||||
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS | 13,689,643 | 14,686,876 | ||||||||||
U.S. GOVERNMENT OBLIGATIONS — 10.6% | ||||||||||||
U.S. Treasury Bills — 0.8% | ||||||||||||
1,000,000 | U.S. Treasury Bill, 0.426%††, 04/07/11 | 997,783 | 999,138 | |||||||||
U.S. Treasury Inflation Indexed Notes — 4.3% | ||||||||||||
900,000 | 1.250%, 04/15/14 | 929,001 | 976,298 | |||||||||
1,200,000 | 2.500%, 07/15/16 | 1,301,396 | 1,468,673 | |||||||||
1,500,000 | 1.375%, 07/15/18 | 1,437,346 | 1,624,298 | |||||||||
900,000 | 2.125%, 01/15/19 | 933,756 | 1,030,112 | |||||||||
4,601,499 | 5,099,381 | |||||||||||
U.S. Treasury Notes — 5.5% | ||||||||||||
1,500,000 | 3.375%, 11/30/12 | 1,498,356 | 1,595,742 | |||||||||
750,000 | 0.750%, 08/15/13 | 750,397 | 752,930 | |||||||||
1,500,000 | 4.000%, 02/15/15 | 1,482,440 | 1,686,915 | |||||||||
1,000,000 | 3.625%, 08/15/19 | 1,023,419 | 1,099,844 | |||||||||
1,250,000 | 3.375%, 11/15/19 | 1,208,538 | 1,346,778 | |||||||||
5,963,150 | 6,482,209 | |||||||||||
TOTAL U.S. GOVERNMENT OBLIGATIONS | 11,562,432 | 12,580,728 | ||||||||||
TOTAL INVESTMENTS — 99.8% | $ | 106,283,374 | 118,512,246 | |||||||||
Other Assets and Liabilities (Net) — 0.2% | 231,591 | |||||||||||
NET ASSETS — 100.0% | $ | 118,743,837 | ||||||||||
† | Non-income producing security. | |
†† | Represents annualized yield at date of purchase. | |
* | Current yield as of September 30, 2010. | |
ADR | American Depositary Receipt |
See accompanying notes to financial statements.
24
GAMCO Westwood Intermediate Bond Fund
Schedule of Investments — September 30, 2010
Schedule of Investments — September 30, 2010
Market | ||||||||||||
Shares | Cost | Value | ||||||||||
SHORT-TERM INVESTMENTS — 6.7% | ||||||||||||
Mutual Funds — 6.7% | ||||||||||||
1,299,340 | Dreyfus Treasury & Agency Cash Management Fund, 0.190%* | $ | 1,299,340 | $ | 1,299,340 | |||||||
Principal Amount | ||||||||||||
CORPORATE BONDS — 36.8% | ||||||||||||
Aerospace — 1.3% | ||||||||||||
$ | 200,000 | The Boeing Co., 6.000%, 03/15/19 | 204,883 | 241,724 | ||||||||
Banking — 5.5% | ||||||||||||
300,000 | Bank of America Corp., 5.375%, 06/15/14 | 306,167 | 324,092 | |||||||||
225,000 | Barclays Bank plc, Ser. 1, 5.000%, 09/22/16 | 226,044 | 246,498 | |||||||||
250,000 | Citigroup Inc., 5.500%, 10/15/14 | 250,786 | 271,513 | |||||||||
200,000 | JPMorgan Chase & Co., 6.300%, 04/23/19 | 198,830 | 232,164 | |||||||||
981,827 | 1,074,267 | |||||||||||
Computer Hardware — 1.0% | ||||||||||||
200,000 | Hewlett-Packard Co., 2.250%, 05/27/11 | 200,700 | 202,655 | |||||||||
Computer Software and Services — 2.1% | ||||||||||||
250,000 | Microsoft Corp., 1.625%, 09/25/15 | 249,905 | 250,595 | |||||||||
150,000 | Oracle Corp., 4.950%, 04/15/13 | 149,972 | 165,332 | |||||||||
399,877 | 415,927 | |||||||||||
Consumer Products — 0.9% | ||||||||||||
150,000 | Philip Morris International Inc., 6.875%, 03/17/14 | 150,582 | 176,990 | |||||||||
Diversified Industrial — 1.4% | ||||||||||||
250,000 | General Electric Co., 5.000%, 02/01/13 | 251,014 | 271,636 | |||||||||
Electronics — 2.2% | ||||||||||||
200,000 | Arrow Electronics Inc., 6.000%, 04/01/20 | 199,793 | 215,983 | |||||||||
200,000 | Koninklijke Philips Electronics NV, 4.625%, 03/11/13 | 199,625 | 216,915 | |||||||||
399,418 | 432,898 | |||||||||||
Energy and Utilities: Electric Integrated — 2.6% | ||||||||||||
275,000 | Dominion Resources Inc., 6.400%, 06/15/18 | 334,268 | 335,758 | |||||||||
150,000 | Southern Co., 4.150%, 05/15/14 | 149,886 | 162,641 | |||||||||
484,154 | 498,399 | |||||||||||
Energy and Utilities: Natural Gas — 1.1% | ||||||||||||
200,000 | Apache Corp., 5.250%, 04/15/13 | 199,770 | 218,149 | |||||||||
Energy and Utilities: Oil — 3.2% | ||||||||||||
200,000 | Anadarko Petroleum Corp., 5.950%, 09/15/16 | 196,104 | 218,661 | |||||||||
125,000 | Marathon Oil Corp., 5.900%, 03/15/18 | 125,577 | 144,501 | |||||||||
200,000 | XTO Energy Inc., 6.500%, 12/15/18 | 228,262 | 255,102 | |||||||||
549,943 | 618,264 | |||||||||||
Financial Services — 6.0% | ||||||||||||
175,000 | ACE INA Holdings Inc., 5.600%, 05/15/15 | 174,561 | 198,710 | |||||||||
300,000 | Berkshire Hathaway Inc., 5.125%, 09/15/12 | 315,473 | 325,571 | |||||||||
260,000 | International Bank for Reconstruction & Development, 8.625%, 10/15/16 | 296,915 | 353,880 | |||||||||
275,000 | Merrill Lynch & Co. Inc., MTN, Series C, 5.000%, 01/15/15 | 275,136 | 293,150 | |||||||||
1,062,085 | 1,171,311 | |||||||||||
Food and Beverage — 3.9% | ||||||||||||
250,000 | Anheuser-Busch Companies Inc., 4.375%, 01/15/13 | 248,667 | 266,401 | |||||||||
200,000 | Dr Pepper Snapple Group Inc., 2.350%, 12/21/12 | 199,946 | 205,327 | |||||||||
250,000 | Kraft Foods Inc., 5.375%, 02/10/20 | 254,284 | 279,783 | |||||||||
702,897 | 751,511 | |||||||||||
Metals and Mining — 1.2% | ||||||||||||
200,000 | BHP Billiton Finance USA Ltd., 5.500%, 04/01/14 | 201,192 | 225,229 | |||||||||
Real Estate Investment Trusts — 1.3% | ||||||||||||
250,000 | Vornado Realty LP, 4.250%, 04/01/15 | 249,150 | 258,988 | |||||||||
Telecommunications — 1.1% | ||||||||||||
175,000 | AT&T Inc., 6.700%, 11/15/13 | 175,419 | 202,770 | |||||||||
Transportation — 2.0% | ||||||||||||
200,000 | Burlington Northern Santa Fe LLC, Deb., 5.650%, 05/01/17 | 199,287 | 231,080 | |||||||||
125,000 | CSX Corp., 6.250%, 04/01/15 | 124,952 | 146,438 | |||||||||
324,239 | 377,518 | |||||||||||
TOTAL CORPORATE BONDS | 6,537,150 | 7,138,236 | ||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS — 27.2% | ||||||||||||
Federal Home Loan Bank — 1.5% | ||||||||||||
250,000 | Series 656, 5.375%, 05/18/16 | 251,035 | 298,780 | |||||||||
Federal Home Loan Mortgage Corp. — 10.0% | ||||||||||||
400,000 | 2.125%, 03/23/12 | 403,700 | 409,972 | |||||||||
250,000 | 5.125%, 07/15/12 | 255,418 | 270,550 | |||||||||
225,000 | 5.000%, 07/15/14 | 245,765 | 256,761 | |||||||||
325,000 | 5.250%, 04/18/16 | 359,407 | 384,572 | |||||||||
200,000 | 5.500%, 07/18/16 | 217,698 | 240,942 | |||||||||
350,000 | 3.750%, 03/27/19 | 344,950 | 381,270 | |||||||||
1,826,938 | 1,944,067 | |||||||||||
Federal National Mortgage Association — 13.5% | ||||||||||||
350,000 | 3.375%, 05/19/11 | 354,095 | 356,982 | |||||||||
350,000 | 5.375%, 11/15/11 | 354,973 | 369,710 | |||||||||
250,000 | 4.375%, 09/15/12 | 262,242 | 268,695 | |||||||||
375,000 | 4.375%, 03/15/13 | 395,388 | 408,492 | |||||||||
350,000 | 2.750%, 02/05/14 | 364,396 | 370,636 | |||||||||
300,000 | 5.000%, 04/15/15 | 309,275 | 347,907 | |||||||||
275,000 | 5.375%, 06/12/17 | 294,591 | 330,930 | |||||||||
71,508 | Pool #745122, 5.500%, 09/01/20 | 71,267 | 77,332 | |||||||||
76,820 | Pool #255554, 5.500%, 01/01/35 | 77,769 | 82,406 | |||||||||
2,483,996 | 2,613,090 | |||||||||||
See accompanying notes to financial statements.
25
GAMCO Westwood Intermediate Bond Fund
Schedule of Investments (Continued)— September 30, 2010
Schedule of Investments (Continued)— September 30, 2010
Principal | Market | |||||||||||
Amount | Cost | Value | ||||||||||
Government National Mortgage Association — 2.2% | ||||||||||||
$ | 39,831 | Pool #562288, 6.000%, 12/15/33 | $ | 40,450 | $ | 43,690 | ||||||
75,293 | Pool #604946, 5.500%, 01/15/34 | 76,157 | 81,394 | |||||||||
66,692 | Pool #604970, 5.500%, 01/15/34 | 67,284 | 72,097 | |||||||||
99,582 | Pool #003747, 5.000%, 08/20/35 | 98,744 | 106,808 | |||||||||
112,632 | Pool #550728, 5.500%, 11/15/35 | 112,775 | 121,619 | |||||||||
395,410 | 425,608 | |||||||||||
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS | 4,957,379 | 5,281,545 | ||||||||||
U.S. GOVERNMENT OBLIGATIONS — 31.9% | ||||||||||||
U.S. Treasury Bills — 6.4% | ||||||||||||
1,250,000 | U.S. Treasury Bills, 0.230% to 0.426%†, 01/31/11 to 05/05/11 | 1,248,204 | 1,249,131 | |||||||||
U.S. Treasury Inflation Indexed Notes — 8.5% | ||||||||||||
225,000 | 1.250%, 04/15/14 | 232,259 | 244,074 | |||||||||
275,000 | 2.500%, 07/15/16 | 298,239 | 336,571 | |||||||||
300,000 | 1.375%, 07/15/18 | 284,646 | 324,860 | |||||||||
275,000 | 2.125%, 01/15/19 | 286,741 | 314,757 | |||||||||
350,000 | 2.500%, 01/15/29 | 379,418 | 420,368 | |||||||||
1,481,303 | 1,640,630 | |||||||||||
U.S. Treasury Notes — 14.2% | ||||||||||||
300,000 | 0.625%, 07/31/12 | 300,817 | 301,301 | |||||||||
350,000 | 3.375%, 11/30/12 | 370,105 | 372,340 | |||||||||
350,000 | 1.375%, 01/15/13 | 356,911 | 357,000 | |||||||||
400,000 | 0.750%, 08/15/13 | 400,212 | 401,562 | |||||||||
300,000 | 4.250%, 08/15/15 | 299,099 | 342,914 | |||||||||
250,000 | 5.125%, 05/15/16 | 253,820 | 299,414 | |||||||||
275,000 | 3.500%, 02/15/18 | 275,340 | 303,746 | |||||||||
350,000 | 3.375%, 11/15/19 | 338,391 | 377,098 | |||||||||
2,594,695 | 2,755,375 | |||||||||||
U.S. Treasury Bonds — 2.8% | ||||||||||||
250,000 | 7.125%, 02/15/23 | 298,102 | 360,586 | |||||||||
150,000 | 5.375%, 02/15/31 | 167,560 | 193,148 | |||||||||
465,662 | 553,734 | |||||||||||
TOTAL U.S. GOVERNMENT OBLIGATIONS | 5,789,864 | 6,198,870 | ||||||||||
TOTAL INVESTMENTS — 102.6% | $ | 18,583,733 | 19,917,991 | |||||||||
Other Assets and Liabilities (Net) — (2.6)% | (513,511 | ) | ||||||||||
NET ASSETS — 100.0% | $ | 19,404,480 | ||||||||||
† | Represents annualized yield at date of purchase. | |
* | Current yield as of September 30, 2010. | |
MTN | Medium Term Note |
See accompanying notes to financial statements.
26
GAMCO Westwood Funds
Statements of Assets and Liabilities
September 30, 2010
Statements of Assets and Liabilities
September 30, 2010
Mighty | SmallCap | Income | Equity | Balanced | Intermediate | |||||||||||||||||||
MitesSM Fund | Equity Fund | Fund | Fund | Fund | Bond Fund | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Investments, at value (cost $305,977,330, $13,968,157, $5,454,775, $97,595,951, $106,283,374, and $18,583,733, respectively) | $ | 369,997,767 | $ | 15,905,788 | $ | 5,310,825 | $ | 108,601,912 | $ | 118,512,246 | $ | 19,917,991 | ||||||||||||
Investments in affiliates, at value (cost $2,035,933) | 2,328,750 | — | — | — | — | — | ||||||||||||||||||
Foreign currency, at value (cost $1,019 and $20, respectively) | 1,091 | 20 | — | — | — | — | ||||||||||||||||||
Cash | 547,754 | — | 4,636 | — | — | — | ||||||||||||||||||
Receivable for Fund shares sold | 4,199,566 | 11,166 | 259 | 59,839 | 226,972 | 2,367 | ||||||||||||||||||
Receivable for investments sold | 67,226 | 177,617 | — | 1,407,385 | 265,219 | — | ||||||||||||||||||
Receivable from Adviser | — | — | 10,114 | — | — | 937 | ||||||||||||||||||
Dividends and interest receivable | 355,787 | 7,062 | 5,751 | 168,460 | 598,684 | 172,626 | ||||||||||||||||||
Prepaid expenses | 39,512 | 20,150 | 26,582 | 28,925 | 33,021 | 20,248 | ||||||||||||||||||
Total Assets | 377,537,453 | 16,121,803 | 5,358,167 | 110,266,521 | 119,636,142 | 20,114,169 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Payable to custodian | — | 3,033 | — | — | — | — | ||||||||||||||||||
Payable for investments purchased | 2,733,629 | 80,948 | — | 1,234,383 | 643,216 | 589,641 | ||||||||||||||||||
Payable for Fund shares redeemed | 155,696 | — | 8,045 | 156,293 | 52,964 | 64,077 | ||||||||||||||||||
Distributions payable | — | — | — | — | — | 9,385 | ||||||||||||||||||
Payable for investment advisory fees | 257,674 | 10,780 | — | 88,562 | 72,650 | — | ||||||||||||||||||
Payable for distribution fees | 97,616 | 4,107 | 1,192 | 23,917 | 28,034 | 5,191 | ||||||||||||||||||
Payable for accounting fees | 11,250 | — | — | 11,250 | 11,250 | — | ||||||||||||||||||
Payable for legal and audit fees | 74,688 | 30,382 | 27,629 | 47,482 | 48,614 | 29,854 | ||||||||||||||||||
Payable for shareholder services fees | 84,023 | 3,124 | 2,242 | 28,031 | 14,104 | 2,531 | ||||||||||||||||||
Other accrued expenses | 68,655 | 5,417 | 4,731 | 26,304 | 21,473 | 9,010 | ||||||||||||||||||
Total Liabilities | 3,483,231 | 137,791 | 43,839 | 1,616,222 | 892,305 | 709,689 | ||||||||||||||||||
Net Assets | $ | 374,054,222 | $ | 15,984,012 | $ | 5,314,328 | $ | 108,650,299 | $ | 118,743,837 | $ | 19,404,480 | ||||||||||||
Net Assets Consist of: | ||||||||||||||||||||||||
Paid-in capital | $ | 302,258,209 | $ | 19,609,144 | $ | 8,152,432 | $ | 131,832,163 | $ | 124,316,233 | $ | 18,034,133 | ||||||||||||
Accumulated net investment income/(loss) | (2,556,148 | ) | (12,935 | ) | (5 | ) | 421,789 | 9,610 | 4,905 | |||||||||||||||
Accumulated net realized gain/(loss) on investments and foreign currency transactions | 10,038,797 | (5,549,828 | ) | (2,694,149 | ) | (34,609,614 | ) | (17,810,878 | ) | 31,184 | ||||||||||||||
Net unrealized appreciation/depreciation on investments | 64,313,254 | 1,937,631 | (143,950 | ) | 11,005,961 | 12,228,872 | 1,334,258 | |||||||||||||||||
Net unrealized appreciation on foreign currency | 110 | — | — | — | — | — | ||||||||||||||||||
Net Assets | $ | 374,054,222 | $ | 15,984,012 | $ | 5,314,328 | $ | 108,650,299 | $ | 118,743,837 | $ | 19,404,480 | ||||||||||||
Shares of Beneficial Interest, each at $0.001 par value, unlimited number of shares authorized: | ||||||||||||||||||||||||
Class AAA: | ||||||||||||||||||||||||
Net assets | $ | 261,810,553 | $ | 10,435,204 | $ | 4,822,450 | $ | 99,985,964 | $ | 106,782,433 | $ | 17,038,377 | ||||||||||||
Shares of beneficial interest outstanding | 16,562,800 | 781,206 | 640,238 | 12,243,475 | 10,545,060 | 1,431,445 | ||||||||||||||||||
Net Asset Value, offering, and redemption price per share | $ | 15.81 | $ | 13.36 | $ | 7.53 | $ | 8.17 | $ | 10.13 | $ | 11.90 | ||||||||||||
Class A: | ||||||||||||||||||||||||
Net assets | $ | 48,464,047 | $ | 3,509,055 | $ | 340,820 | $ | 6,616,096 | $ | 5,135,675 | $ | 486,424 | ||||||||||||
Shares of beneficial interest outstanding | 3,112,699 | 266,206 | 43,761 | 813,970 | 505,044 | 40,871 | ||||||||||||||||||
Net Asset Value and redemption price per share | $ | 15.57 | $ | 13.18 | $ | 7.79 | $ | 8.13 | $ | 10.17 | $ | 11.90 | ||||||||||||
Maximum offering price per share (NAV ÷ .96, based on maximum sales charge of 4.00% of the offering price) | $ | 16.22 | $ | 13.73 | $ | 8.11 | $ | 8.47 | $ | 10.59 | $ | 12.40 | ||||||||||||
Class B: | ||||||||||||||||||||||||
Net assets | $ | 77,454 | $ | 5,547 | — | $ | 6,302 | $ | 82,138 | $ | 38,412 | |||||||||||||
Shares of beneficial interest outstanding | 5,289 | 441 | — | 791.3 | 8,011 | 3,228 | ||||||||||||||||||
Net Asset Value and offering price per share (a) | $ | 14.64 | $ | 12.58 | — | $ | 7.96 | $ | 10.25 | $ | 11.90 | |||||||||||||
Class C: | ||||||||||||||||||||||||
Net assets | $ | 40,296,590 | $ | 911,122 | $ | 96,746 | $ | 999,093 | $ | 4,974,749 | $ | 1,715,998 | ||||||||||||
Shares of beneficial interest outstanding | 2,769,587 | 73,064 | 11,577 | 126,247 | 484,713 | 151,609 | ||||||||||||||||||
Net Asset Value and offering price per share (a) | $ | 14.55 | $ | 12.47 | $ | 8.36 | $ | 7.91 | $ | 10.26 | $ | 11.32 | ||||||||||||
Class I: | ||||||||||||||||||||||||
Net assets | $ | 23,405,578 | $ | 1,123,084 | $ | 54,312 | $ | 1,042,844 | $ | 1,768,842 | $ | 125,269 | ||||||||||||
Shares of beneficial interest outstanding | 1,469,882 | 83,524 | 7,208 | 127,364 | 174,764 | 10,516 | ||||||||||||||||||
Net Asset Value, offering, and redemption price per share | $ | 15.92 | $ | 13.45 | $ | 7.53 | $ | 8.19 | $ | 10.12 | $ | 11.91 | ||||||||||||
(a) | Redemption price varies based on the length of time held. |
See accompanying notes to financial statements.
27
GAMCO Westwood Funds
Statements of Operations
For the Year Ended September 30, 2010
Statements of Operations
For the Year Ended September 30, 2010
Mighty | SmallCap | Income | Equity | Balanced | Intermediate | |||||||||||||||||||
MitesSM Fund | Equity Fund | Fund | Fund | Fund | Bond Fund | |||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||
Dividends — unaffiliated (net of foreign withholding taxes of $10,160, $145, $0, $1,379, $1,122, and $0, respectively) | $ | 2,288,566 | $ | 97,862 | $ | 164,658 | $ | 2,656,796 | $ | 1,630,216 | $ | 1,875 | ||||||||||||
Dividends — affiliated | 27,336 | — | — | — | — | — | ||||||||||||||||||
Interest | 112,087 | 395 | 1,416 | 3 | 1,811,989 | 579,418 | ||||||||||||||||||
Total Investment Income | 2,427,989 | 98,257 | 166,074 | 2,656,799 | 3,442,205 | 581,293 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Investment advisory fees | 2,734,150 | 142,528 | 51,530 | 1,267,199 | 960,011 | 105,219 | ||||||||||||||||||
Distribution fees — Class AAA | 505,770 | 24,422 | 11,995 | 295,279 | 289,754 | 39,646 | ||||||||||||||||||
Distribution fees — Class A | 150,724 | 15,955 | 795 | 32,935 | 27,476 | 1,685 | ||||||||||||||||||
Distribution fees — Class B | 867 | 59 | — | 62 | 1,044 | 926 | ||||||||||||||||||
Distribution fees — Class C | 246,849 | 6,173 | 1,476 | 10,806 | 48,608 | 9,558 | ||||||||||||||||||
Accounting fees | 45,000 | — | — | 45,000 | 45,000 | — | ||||||||||||||||||
Custodian fees | 64,600 | 7,324 | 5,144 | 30,134 | 26,286 | 7,822 | ||||||||||||||||||
Interest expense | 1 | 23 | 27 | 1,854 | — | — | ||||||||||||||||||
Legal and audit fees | 134,812 | 32,202 | 29,802 | 59,856 | 60,773 | 31,818 | ||||||||||||||||||
Registration expenses | 69,978 | 34,505 | 41,018 | 50,771 | 50,344 | 35,967 | ||||||||||||||||||
Shareholder communications expenses | 133,773 | 5,000 | 2,738 | 42,099 | 34,089 | 5,066 | ||||||||||||||||||
Shareholder services fees | 406,361 | 16,797 | 11,965 | 147,264 | 92,008 | 13,894 | ||||||||||||||||||
Trustees’ fees | 11,854 | 641 | 249 | 6,389 | 6,323 | 808 | ||||||||||||||||||
Miscellaneous expenses | 28,316 | 9,439 | 9,243 | 20,217 | 20,452 | 16,205 | ||||||||||||||||||
Total Expenses | 4,533,055 | 295,068 | 165,982 | 2,009,865 | 1,662,168 | 268,614 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Expense reimbursements (See Note 3) | — | (70,274 | ) | (87,278 | ) | — | — | (81,582 | ) | |||||||||||||||
Advisory fee reduction on unsupervised assets (See Note 3) | (69,645 | ) | — | — | — | — | — | |||||||||||||||||
Custodian fee credits | — | — | — | (31,286 | ) | (25,357 | ) | (3,693 | ) | |||||||||||||||
Total Reimbursements, Reductions, and Credits | (69,645 | ) | (70,274 | ) | (87,278 | ) | (31,286 | ) | (25,357 | ) | (85,275 | ) | ||||||||||||
Net Expenses | 4,463,410 | 224,794 | 78,704 | 1,978,579 | 1,636,811 | 183,339 | ||||||||||||||||||
Net Investment Income/(Loss) | (2,035,421 | ) | (126,537 | ) | 87,370 | 678,220 | 1,805,394 | 397,954 | ||||||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency: | ||||||||||||||||||||||||
Net realized gain/(loss) on investments — unaffiliated | 10,946,333 | 1,082,085 | (96,177 | ) | 8,500,599 | 4,758,237 | 33,821 | |||||||||||||||||
Net realized gain on investments — affiliated | 741 | — | — | — | — | — | ||||||||||||||||||
Net realized gain/(loss) on foreign currency transactions | 31,309 | (8 | ) | — | — | — | — | |||||||||||||||||
Net realized gain/(loss) on investments and foreign currency transactions | 10,978,383 | 1,082,077 | (96,177 | ) | 8,500,599 | 4,758,237 | 33,821 | |||||||||||||||||
�� | ||||||||||||||||||||||||
Net change in unrealized appreciation/depreciation: | ||||||||||||||||||||||||
on investments | 33,904,728 | 945,012 | 508,524 | (229,649 | ) | 1,729,287 | 695,999 | |||||||||||||||||
on foreign currency translations | 43 | — | — | — | — | — | ||||||||||||||||||
Net change in unrealized appreciation/depreciation on investments and foreign currency translations | 33,904,771 | 945,012 | 508,524 | (229,649 | ) | 1,729,287 | 695,999 | |||||||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency | 44,883,154 | 2,027,089 | 412,347 | 8,270,950 | 6,487,524 | 729,820 | ||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 42,847,733 | $ | 1,900,552 | $ | 499,717 | $ | 8,949,170 | $ | 8,292,918 | $ | 1,127,774 | ||||||||||||
See accompanying notes to financial statements.
28
GAMCO Westwood Funds
Statements of Changes in Net Assets
Statements of Changes in Net Assets
Mighty MitesSM Fund | SmallCap Equity Fund | |||||||||||||||
For the Year Ended September 30, | For the Year Ended September 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Operations: | ||||||||||||||||
Net investment loss | $ | (2,035,421 | ) | $ | (829,300 | ) | $ | (126,537 | ) | $ | (55,789 | ) | ||||
Net realized gain/(loss) on investments and foreign currency transactions | 10,978,383 | (583,325 | ) | 1,082,077 | (1,381,943 | ) | ||||||||||
Net change in unrealized appreciation on investments and foreign currency transactions | 33,904,771 | 32,115,262 | 945,012 | 1,432,916 | ||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 42,847,733 | 30,702,637 | 1,900,552 | (4,816 | ) | |||||||||||
Distributions to Shareholders: | ||||||||||||||||
Net realized gain | ||||||||||||||||
Class AAA | (37,124 | ) | (1,293,374 | ) | — | — | ||||||||||
Class A | (4,628 | ) | (152,184 | ) | — | — | ||||||||||
Class B | (26 | ) | (3,722 | ) | — | — | ||||||||||
Class C | (3,910 | ) | (115,030 | ) | — | — | ||||||||||
Class I | (2,984 | ) | (48,549 | ) | — | — | ||||||||||
(48,672 | ) | (1,612,859 | ) | — | — | |||||||||||
Return of capital | ||||||||||||||||
Class AAA | — | (84,422 | ) | — | — | |||||||||||
Class A | — | (9,933 | ) | — | — | |||||||||||
Class B | — | (243 | ) | — | — | |||||||||||
Class C | — | (7,508 | ) | — | — | |||||||||||
Class I | — | (3,169 | ) | — | — | |||||||||||
— | (105,275 | ) | — | — | ||||||||||||
Total Distributions to Shareholders | (48,672 | ) | (1,718,134 | ) | — | — | ||||||||||
Shares of Beneficial Interest Transactions: | ||||||||||||||||
Proceeds from shares issued in connection with the Reorganization | ||||||||||||||||
Class AAA (see Note 9) | — | �� | 41,451,718 | — | — | |||||||||||
— | 41,451,718 | — | — | |||||||||||||
Proceeds from shares issued | ||||||||||||||||
Class AAA | 128,720,205 | 88,795,321 | 3,017,670 | 2,709,256 | ||||||||||||
Class A | 37,358,815 | 12,427,143 | 1,082,263 | 1,701,476 | ||||||||||||
Class B | — | — | 1,692 | — | ||||||||||||
Class C | 25,737,887 | 10,392,401 | 586,710 | 244,375 | ||||||||||||
Class I | 10,894,878 | 11,532,568 | 1,389,079 | 182,232 | ||||||||||||
202,711,785 | 123,147,433 | 6,077,414 | 4,837,339 | |||||||||||||
Proceeds from reinvestment of distributions | ||||||||||||||||
Class AAA | 33,740 | 1,223,207 | — | — | ||||||||||||
Class A | 3,921 | 146,050 | — | — | ||||||||||||
Class B | 26 | 3,964 | — | — | ||||||||||||
Class C | 2,929 | 92,652 | — | — | ||||||||||||
Class I | 1,751 | 21,432 | — | — | ||||||||||||
42,367 | 1,487,305 | — | — | |||||||||||||
Cost of shares redeemed | ||||||||||||||||
Class AAA | (68,496,152 | ) | (40,415,394 | ) | (2,689,387 | ) | (2,069,312 | ) | ||||||||
Class A | (9,881,228 | ) | (3,947,787 | ) | (218,956 | ) | (451,556 | ) | ||||||||
Class B | (50,832 | ) | (49,442 | ) | (1,741 | ) | — | |||||||||
Class C | (2,880,022 | ) | (2,878,564 | ) | (104,065 | ) | (92,865 | ) | ||||||||
Class I | (2,769,144 | ) | (2,878,916 | ) | (693,469 | ) | (66,658 | ) | ||||||||
(84,077,378 | ) | (50,170,103 | ) | (3,707,618 | ) | (2,680,391 | ) | |||||||||
Net Increase in Net Assets from Shares of Beneficial Interest Transactions | 118,676,774 | 115,916,353 | 2,369,796 | 2,156,948 | ||||||||||||
Redemption Fees | 689 | 1,613 | 1,751 | — | ||||||||||||
Net Increase in Net Assets | 161,476,524 | 144,902,469 | 4,272,099 | 2,152,132 | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 212,577,698 | 67,675,229 | 11,711,913 | 9,559,781 | ||||||||||||
End of period | $ | 374,054,222 | $ | 212,577,698 | $ | 15,984,012 | $ | 11,711,913 | ||||||||
Undistributed net investment income | — | $ | 741 | — | — | |||||||||||
See accompanying notes to financial statements.
29
GAMCO Westwood Funds
Statements of Changes in Net Assets (Continued)
Statements of Changes in Net Assets (Continued)
Income Fund | Equity Fund | |||||||||||||||
For the Year Ended September 30, | For the Year Ended September 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 87,370 | $ | 133,741 | $ | 678,220 | $ | 1,599,465 | ||||||||
Net realized gain/(loss) on investments | (96,177 | ) | (1,616,053 | ) | 8,500,599 | (41,056,788 | ) | |||||||||
Net change in unrealized appreciation/depreciation on investments | 508,524 | 541,202 | (229,649 | ) | 11,795,997 | |||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 499,717 | (941,110 | ) | 8,949,170 | (27,661,326 | ) | ||||||||||
Distributions to Shareholders: | ||||||||||||||||
Net investment income | ||||||||||||||||
Class AAA | (76,135 | ) | (141,171 | ) | (1,172,352 | ) | (1,644,996 | ) | ||||||||
Class A | (2,880 | ) | (1,948 | ) | (45,986 | ) | (23,479 | ) | ||||||||
Class B | — | (2 | ) | (17 | ) | — | ||||||||||
Class C | (604 | ) | (5,077 | ) | (3,199 | ) | (3,498 | ) | ||||||||
Class I | (885 | ) | (1,776 | ) | (7,670 | ) | (9,480 | ) | ||||||||
(80,504 | ) | (149,974 | ) | (1,229,224 | ) | (1,681,453 | ) | |||||||||
Return of capital | ||||||||||||||||
Class AAA | — | (16,388 | ) | — | — | |||||||||||
Class A | — | (226 | ) | — | — | |||||||||||
Class B | — | (0 | )* | — | — | |||||||||||
Class C | — | (590 | ) | — | — | |||||||||||
Class I | — | (206 | ) | — | — | |||||||||||
— | (17,410 | ) | — | — | ||||||||||||
Total Distributions to Shareholders | (80,504 | ) | (167,384 | ) | (1,229,224 | ) | (1,681,453 | ) | ||||||||
Shares of Beneficial Interest Transactions: | ||||||||||||||||
Proceeds from shares issued | ||||||||||||||||
Class AAA | 449,585 | 456,273 | 12,835,644 | 42,434,854 | ||||||||||||
Class A | 288,780 | 63,868 | 1,187,734 | 3,882,541 | ||||||||||||
Class C | 13,137 | 63,682 | 171,700 | 465,564 | ||||||||||||
Class I | 14,274 | 5,781 | 640,637 | 162,767 | ||||||||||||
765,776 | 589,604 | 14,835,715 | 46,945,726 | |||||||||||||
Proceeds from reinvestment of distributions | ||||||||||||||||
Class AAA | 71,125 | 145,555 | 1,098,889 | 1,531,245 | ||||||||||||
Class A | 2,878 | 1,627 | 43,561 | 21,494 | ||||||||||||
Class B | — | — | 17 | — | ||||||||||||
Class C | 515 | 5,366 | 3,159 | 3,497 | ||||||||||||
Class I | 783 | 1,982 | 7,670 | 9,480 | ||||||||||||
75,301 | 154,530 | 1,153,296 | 1,565,716 | |||||||||||||
Cost of shares redeemed | ||||||||||||||||
Class AAA | (947,840 | ) | (1,963,238 | ) | (53,540,807 | ) | (50,965,061 | ) | ||||||||
Class A | (50,559 | ) | (49,724 | ) | (1,083,380 | ) | (2,341,995 | ) | ||||||||
Class B | (79 | )** | — | (88 | ) | (4,814 | ) | |||||||||
Class C | (190,868 | ) | (82,933 | ) | (309,984 | ) | (65,151 | ) | ||||||||
Class I | (22,634 | ) | (46,981 | ) | (333,598 | ) | (152,961 | ) | ||||||||
(1,211,980 | ) | (2,142,876 | ) | (55,267,857 | ) | (53,529,982 | ) | |||||||||
Net Decrease in Net Assets from Shares of Beneficial Interest Transactions | (370,903 | ) | (1,398,742 | ) | (39,278,846 | ) | (5,018,540 | ) | ||||||||
Net Increase/(Decrease) in Net Assets | 48,310 | (2,507,236 | ) | (31,558,900 | ) | (34,361,319 | ) | |||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 5,266,018 | 7,773,254 | 140,209,199 | 174,570,518 | ||||||||||||
End of period | $ | 5,314,328 | $ | 5,266,018 | $ | 108,650,299 | $ | 140,209,199 | ||||||||
Undistributed net investment income | — | — | $ | 421,789 | $ | 972,793 | ||||||||||
* | Amount represents less than $0.50. | |
** | Class B Shares were fully redeemed and closed on December 1, 2009. |
See accompanying notes to financial statements.
30
GAMCO Westwood Funds
Statements of Changes in Net Assets (Continued)
Statements of Changes in Net Assets (Continued)
Balanced Fund | Intermediate Bond Fund | |||||||||||||||
For the Year Ended September 30, | For the Year Ended September 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 1,805,394 | $ | 2,425,845 | $ | 397,954 | $ | 350,357 | ||||||||
Net realized gain/(loss) on investments | 4,758,237 | (21,628,326 | ) | 33,821 | 114,658 | |||||||||||
Net change in unrealized appreciation on investments | 1,729,287 | 10,332,535 | 695,999 | 719,055 | ||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 8,292,918 | (8,869,946 | ) | 1,127,774 | 1,184,070 | |||||||||||
Distributions to Shareholders: | ||||||||||||||||
Net investment income | ||||||||||||||||
Class AAA | (1,688,728 | ) | (2,263,081 | ) | (368,264 | ) | (318,721 | ) | ||||||||
Class A | (67,141 | ) | (87,731 | ) | (10,734 | ) | (11,565 | ) | ||||||||
Class B | (763 | ) | (998 | ) | (1,479 | ) | (1,976 | ) | ||||||||
Class C | (35,350 | ) | (40,735 | ) | (14,335 | ) | (9,425 | ) | ||||||||
Class I | (27,648 | ) | (27,686 | ) | (3,841 | ) | (9,566 | ) | ||||||||
(1,819,630 | ) | (2,420,231 | ) | (398,653 | ) | (351,253 | ) | |||||||||
Net realized gain | ||||||||||||||||
Class AAA | — | (675,615 | ) | (103,560 | ) | — | ||||||||||
Class A | — | (27,603 | ) | (3,757 | ) | — | ||||||||||
Class B | — | (524 | ) | (903 | ) | — | ||||||||||
Class C | — | (10,546 | ) | (4,280 | ) | — | ||||||||||
Class I | — | (7,058 | ) | (780 | ) | — | ||||||||||
— | (721,346 | ) | (113,280 | ) | — | |||||||||||
Total Distributions to Shareholders | (1,819,630 | ) | (3,141,577 | ) | (511,933 | ) | (351,253 | ) | ||||||||
Shares of Beneficial Interest Transactions: | ||||||||||||||||
Proceeds from shares issued | ||||||||||||||||
Class AAA | 12,228,366 | 35,730,717 | 4,725,121 | 5,535,519 | ||||||||||||
Class A | 210,320 | 1,844,474 | 287,448 | 727,724 | ||||||||||||
Class B | 13,292 | 29,853 | — | 104,859 | ||||||||||||
Class C | 1,095,718 | 4,458,581 | 1,558,481 | 686,880 | ||||||||||||
Class I | 895,950 | 166,080 | 140,294 | 183,455 | ||||||||||||
14,443,646 | 42,229,705 | 6,711,344 | 7,238,437 | |||||||||||||
Proceeds from reinvestment of distributions | ||||||||||||||||
Class AAA | 1,627,433 | 2,730,085 | 326,510 | 228,051 | ||||||||||||
Class A | 60,259 | 103,837 | 10,834 | 9,148 | ||||||||||||
Class B | 430 | 887 | 1,262 | 739 | ||||||||||||
Class C | 24,903 | 38,787 | 17,068 | 7,845 | ||||||||||||
Class I | 27,636 | 34,744 | 4,325 | 9,566 | ||||||||||||
1,740,661 | 2,908,340 | 359,999 | 255,349 | |||||||||||||
Cost of shares redeemed | ||||||||||||||||
Class AAA | (36,266,445 | ) | (41,553,262 | ) | (2,507,576 | ) | (3,061,654 | ) | ||||||||
Class A | (1,412,210 | ) | (1,201,273 | ) | (349,373 | ) | (339,799 | ) | ||||||||
Class B | (41,933 | ) | (39,781 | ) | (94,401 | ) | (30,651 | ) | ||||||||
Class C | (1,257,696 | ) | (1,291,065 | ) | (489,893 | ) | (621,790 | ) | ||||||||
Class I | (668,924 | ) | (125,179 | ) | (347,556 | ) | (254,421 | ) | ||||||||
(39,647,208 | ) | (44,210,560 | ) | (3,788,799 | ) | (4,308,315 | ) | |||||||||
Net Increase/(Decrease) in Net Assets from Shares of Beneficial Interest Transactions | (23,462,901 | ) | 927,485 | 3,282,544 | 3,185,471 | |||||||||||
Net Increase/(Decrease) in Net Assets | (16,989,613 | ) | (11,084,038 | ) | 3,898,385 | 4,018,288 | ||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 135,733,450 | 146,817,488 | 15,506,095 | 11,487,807 | ||||||||||||
End of period | $ | 118,743,837 | $ | 135,733,450 | $ | 19,404,480 | $ | 15,506,095 | ||||||||
Undistributed net investment income | $ | 9,610 | $ | 23,573 | $ | 4,905 | $ | 4,361 | ||||||||
See accompanying notes to financial statements.
31
GAMCO Westwood Funds
Financial Highlights
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period:
Income (Loss) from Investment Operations | Distributions to Shareholders | Ratios to Average Net Assets/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses | Operating | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | Net | Net | Net of | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset | Net | Realized and | Total | Net | Asset | Assets, | Net | Waivers/ | Before | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value, | Investment | Unrealized | From | Net | Realized | Value, | End of | Investment | Reimburse- | Waivers/ | Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | Beginning | Income | Gain (Loss) on | Investment | Investment | Gain on | Return of | Total | Redemption | End of | Total | Period | Income | ments/ | Reimburse- | Turnover | ||||||||||||||||||||||||||||||||||||||||||||||||
September 30 | of Period | (Loss)(a)(b) | Investments | Operations | Income | Investments | Capital | Distributions | Fees(a)(c) | Period | Return† | (in 000’s) | (Loss)(b) | Reductions | ments(d) | Rate†† | ||||||||||||||||||||||||||||||||||||||||||||||||
Mighty MitesSM Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 13.49 | $ | (0.10 | ) | $ | 2.42 | $ | 2.32 | — | $ | (0.00 | )(c) | — | $ | (0.00 | )(c) | $ | 0.00 | $ | 15.81 | 17.2 | % | $ | 261,810 | (0.67 | )% | 1.55 | % | 1.58 | %(e) | 27 | % | |||||||||||||||||||||||||||||||
2009 | 13.41 | (0.08 | ) | 0.47 | 0.39 | — | (0.29 | ) | $ | (0.02 | ) | (0.31 | ) | 0.00 | 13.49 | 3.5 | 170,181 | (0.69 | ) | 1.65 | 1.66 | (e) | 32 | |||||||||||||||||||||||||||||||||||||||||
2008 | 17.05 | (0.00 | )(c) | (2.11 | ) | (2.11 | ) | $ | (0.06 | ) | (1.47 | ) | — | (1.53 | ) | 0.00 | 13.41 | (13.2 | ) | 55,808 | (0.01 | ) | 1.71 | 1.71 | 18 | |||||||||||||||||||||||||||||||||||||||
2007 | 16.01 | 0.08 | 3.42 | 3.50 | — | (2.46 | ) | — | (2.46 | ) | 0.00 | 17.05 | 23.9 | 48,252 | 0.48 | 1.64 | 1.64 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||
2006 | 16.73 | (0.04 | ) | 1.34 | 1.30 | — | (2.02 | ) | — | (2.02 | ) | — | 16.01 | 9.0 | 36,843 | (0.28 | ) | 1.61 | 1.61 | 4 | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 13.32 | $ | (0.13 | ) | $ | 2.38 | $ | 2.25 | — | $ | (0.00 | )(c) | — | $ | (0.00 | )(c) | $ | 0.00 | $ | 15.57 | 16.9 | % | $ | 48,464 | (0.91 | )% | 1.80 | % | 1.83 | %(e) | 27 | % | |||||||||||||||||||||||||||||||
2009 | 13.26 | (0.10 | ) | 0.47 | 0.37 | — | (0.29 | ) | $ | (0.02 | ) | (0.31 | ) | 0.00 | 13.32 | 3.4 | 16,187 | (0.90 | ) | 1.90 | 1.91 | (e) | 32 | |||||||||||||||||||||||||||||||||||||||||
2008 | 16.94 | (0.04 | ) | (2.10 | ) | (2.14 | ) | $ | (0.07 | ) | (1.47 | ) | — | (1.54 | ) | 0.00 | 13.26 | (13.5 | ) | 6,134 | (0.27 | ) | 1.96 | 1.96 | 18 | |||||||||||||||||||||||||||||||||||||||
2007 | 15.94 | 0.36 | 3.10 | 3.46 | — | (2.46 | ) | — | (2.46 | ) | 0.00 | 16.94 | 23.8 | 2,246 | 2.13 | 1.89 | 1.89 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||
2006 | 16.70 | (0.10 | ) | 1.36 | 1.26 | — | (2.02 | ) | — | (2.02 | ) | — | 15.94 | 8.7 | 3 | (0.63 | ) | 1.86 | 1.86 | 4 | ||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 12.59 | $ | (0.19 | ) | $ | 2.24 | $ | 2.05 | — | $ | (0.00 | )(c) | — | $ | (0.00 | )(c) | $ | 0.00 | $ | 14.64 | 16.3 | % | $ | 77 | (1.41 | )% | 2.30 | % | 2.33 | %(e) | 27 | % | |||||||||||||||||||||||||||||||
2009 | 12.63 | (0.14 | ) | 0.41 | 0.27 | — | (0.29 | ) | $ | (0.02 | ) | (0.31 | ) | 0.00 | 12.59 | 2.8 | 116 | (1.34 | ) | 2.40 | 2.41 | (e) | 32 | |||||||||||||||||||||||||||||||||||||||||
2008 | 16.21 | (0.10 | ) | (2.01 | ) | (2.11 | ) | — | (1.47 | ) | — | (1.47 | ) | 0.00 | 12.63 | (13.9 | ) | 169 | (0.73 | ) | 2.46 | 2.46 | 18 | |||||||||||||||||||||||||||||||||||||||||
2007 | 15.43 | (0.06 | ) | 3.30 | 3.24 | — | (2.46 | ) | — | (2.46 | ) | 0.00 | 16.21 | 23.0 | 422 | (0.40 | ) | 2.39 | 2.39 | 21 | ||||||||||||||||||||||||||||||||||||||||||||
2006 | 16.31 | (0.15 | ) | 1.29 | 1.14 | — | (2.02 | ) | — | (2.02 | ) | — | 15.43 | 8.1 | 452 | (1.00 | ) | 2.36 | 2.36 | 4 | ||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 12.51 | $ | (0.19 | ) | $ | 2.23 | $ | 2.04 | — | $ | (0.00 | )(c) | — | $ | (0.00 | )(c) | $ | 0.00 | $ | 14.55 | 16.3 | % | $ | 40,297 | (1.41 | )% | 2.30 | % | 2.33 | %(e) | 27 | % | |||||||||||||||||||||||||||||||
2009 | 12.55 | (0.15 | ) | 0.42 | 0.27 | — | (0.29 | ) | $ | (0.02 | ) | (0.31 | ) | 0.00 | 12.51 | 2.8 | 13,566 | (1.42 | ) | 2.40 | 2.41 | (e) | 32 | |||||||||||||||||||||||||||||||||||||||||
2008 | 16.13 | (0.10 | ) | (2.00 | ) | (2.10 | ) | $ | (0.01 | ) | (1.47 | ) | — | (1.48 | ) | 0.00 | 12.55 | (13.9 | ) | 4,671 | (0.78 | ) | 2.46 | 2.46 | 18 | |||||||||||||||||||||||||||||||||||||||
2007 | 15.35 | 0.10 | 3.14 | 3.24 | — | (2.46 | ) | — | (2.46 | ) | 0.00 | 16.13 | 23.2 | 2,041 | 0.65 | 2.39 | 2.39 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||
2006 | 16.24 | (0.15 | ) | 1.28 | 1.13 | — | (2.02 | ) | — | (2.02 | ) | — | 15.35 | 8.1 | 311 | (1.01 | ) | 2.36 | 2.36 | 4 | ||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 13.55 | $ | (0.06 | ) | $ | 2.43 | $ | 2.37 | — | $ | (0.00 | )(c) | — | $ | (0.00 | )(c) | $ | 0.00 | $ | 15.92 | 17.5 | % | $ | 23,406 | (0.41 | )% | 1.30 | % | 1.33 | %(e) | 27 | % | |||||||||||||||||||||||||||||||
2009 | 13.44 | (0.06 | ) | 0.48 | 0.42 | — | (0.29 | ) | $ | (0.02 | ) | (0.31 | ) | 0.00 | 13.55 | 3.7 | 12,528 | (0.48 | ) | 1.40 | 1.41 | (e) | 32 | |||||||||||||||||||||||||||||||||||||||||
2008(f) | 13.96 | 0.03 | (0.55 | ) | (0.52 | ) | — | — | — | — | 0.00 | 13.44 | (3.7 | ) | 893 | 0.26 | (g) | 1.46 | (g) | 1.46 | (g) | 18 |
† | 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 distributions and does not reflect applicable sales charges. Total return for a period of less than one year is not annualized. | |
†† | Effective in 2008, a change in accounting policy was adopted with regard to the calculation of the portfolio turnover rate to include cash proceeds due to mergers. Had this policy been adopted retroactively, the portfolio turnover rate for the year ended September 30, 2007 would have been 23%. The portfolio turnover rate for the year ended 2006 would have been as shown. Also, for the year ended September 30, 2009, the calculation of the portfolio turnover rate excluded from purchases the value of securities acquired in connection with the Fund’s Reorganization (see Note 9). | |
(a) | Per share data is calculated using the average shares outstanding method. | |
(b) | Due to capital share activity, net investment income per share and the ratio to average net assets are not necessarily correlated among the different classes of shares. | |
(c) | Amount represents less than $0.005 per share. | |
(d) | The Fund incurred interest expense during the year ended September 30, 2006. If interest expense had not been incurred, the ratios of operating expenses to average net assets would have been 1.57% (Class AAA), 1.82% (Class A), and 2.32% (Class B and Class C), respectively. For the years ended September 30, 2010, 2009, 2008, and 2007, the effect of interest expense was minimal. | |
(e) | Before advisory fee reduction on unsupervised assets totaling 0.03% and 0.01% of net assets for the years ended September 30, 2010 and 2009, respectively. | |
(f) | From the commencement of offering Class I Shares on January 11, 2008 through September 30, 2008. | |
(g) | Annualized. |
See accompanying notes to financial statements.
32
GAMCO Westwood Funds
Financial Highlights
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period:
Income (Loss) from Investment Operations | Distributions to Shareholders | Ratios to Average Net Assets /Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating | Operating | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | Net | Net | Expenses | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset | Net | Realized and | Total | Asset | Assets, | Net | Net of | Before | ||||||||||||||||||||||||||||||||||||||||||||||||
Value, | Investment | Unrealized | from | Net | Value, | End of | Investment | Waivers/ | Waivers/ | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | Beginning | Income | Gain (Loss) on | Investment | Investment | Total | Redemption | End of | Total | Period | Income | Reimburse- | Reimburse- | Turnover | ||||||||||||||||||||||||||||||||||||||||||
September 30 | of Period | (Loss)(a) | Investments | Operations | Income | Distributions | Fees(a)(b) | Period | Return† | (in 000’s) | (Loss) | ments†† | ments††† | Rate | ||||||||||||||||||||||||||||||||||||||||||
SmallCap Equity Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 11.60 | $ | (0.10 | ) | $ | 1.86 | $ | 1.76 | — | — | $ | 0.00 | $ | 13.36 | 15.2 | % | $ | 10,435 | (0.81 | )% | 1.50 | %(c) | 1.99 | % | 28 | % | |||||||||||||||||||||||||||||
2009 | 11.99 | (0.06 | ) | (0.33 | ) | (0.39 | ) | — | — | — | 11.60 | (3.3 | ) | 8,856 | (0.68 | ) | 1.50 | (c) | 2.80 | 55 | ||||||||||||||||||||||||||||||||||||
2008 | 14.99 | (0.03 | ) | (2.97 | ) | (3.00 | ) | — | — | — | 11.99 | (20.0 | ) | 8,491 | (0.23 | ) | 1.51 | (c) | 2.55 | 123 | ||||||||||||||||||||||||||||||||||||
2007 | 12.51 | (0.04 | ) | 2.68 | 2.64 | $ | (0.16 | ) | $ | (0.16 | ) | — | 14.99 | 21.2 | 8,672 | (0.28 | ) | 1.50 | 2.03 | 90 | ||||||||||||||||||||||||||||||||||||
2006 | 11.29 | 0.14 | 1.08 | 1.22 | — | — | — | 12.51 | 10.8 | 8,717 | 1.16 | 1.50 | 1.81 | 81 | ||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 11.47 | $ | (0.13 | ) | $ | 1.84 | $ | 1.71 | — | — | $ | 0.00 | $ | 13.18 | 14.9 | % | $ | 3,509 | (1.06 | )% | 1.75 | %(c) | 2.24 | % | 28 | % | |||||||||||||||||||||||||||||
2009 | 11.88 | (0.09 | ) | (0.32 | ) | (0.41 | ) | — | — | — | 11.47 | (3.5 | ) | 2,200 | (0.98 | ) | 1.75 | (c) | 3.05 | 55 | ||||||||||||||||||||||||||||||||||||
2008 | 14.89 | (0.06 | ) | (2.95 | ) | (3.01 | ) | — | — | — | 11.88 | (20.2 | ) | 703 | (0.49 | ) | 1.76 | (c) | 2.80 | 123 | ||||||||||||||||||||||||||||||||||||
2007 | 12.45 | (0.09 | ) | 2.67 | 2.58 | $ | (0.14 | ) | $ | (0.14 | ) | — | 14.89 | 20.9 | 778 | (0.62 | ) | 1.75 | 2.28 | 90 | ||||||||||||||||||||||||||||||||||||
2006 | 11.25 | 0.13 | 1.07 | 1.20 | — | — | — | 12.45 | 10.7 | 403 | 1.04 | 1.75 | 2.06 | 81 | ||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 11.01 | $ | (0.19 | ) | $ | 1.76 | $ | 1.57 | — | — | $ | 0.00 | $ | 12.58 | 14.3 | % | $ | 6 | (1.56 | )% | 2.25 | %(c) | 2.74 | % | 28 | % | |||||||||||||||||||||||||||||
2009 | 11.46 | (0.12 | ) | (0.33 | ) | (0.45 | ) | — | — | — | 11.01 | (3.9 | ) | 5 | (1.43 | ) | 2.25 | (c) | 3.55 | 55 | ||||||||||||||||||||||||||||||||||||
2008 | 14.44 | (0.12 | ) | (2.86 | ) | (2.98 | ) | — | — | — | 11.46 | (20.6 | ) | 5 | (0.97 | ) | 2.26 | (c) | 3.30 | 123 | ||||||||||||||||||||||||||||||||||||
2007 | 12.03 | (0.15 | ) | 2.60 | 2.45 | $ | (0.04 | ) | $ | (0.04 | ) | — | 14.44 | 20.4 | 7 | (1.05 | ) | 2.25 | 2.78 | 90 | ||||||||||||||||||||||||||||||||||||
2006 | 10.93 | 0.05 | 1.05 | 1.10 | — | — | — | 12.03 | 10.1 | 6 | 0.44 | 2.25 | 2.56 | 81 | ||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 10.91 | $ | (0.18 | ) | $ | 1.74 | $ | 1.56 | — | — | $ | 0.00 | $ | 12.47 | 14.3 | % | $ | 911 | (1.55 | )% | 2.25 | %(c) | 2.74 | % | 28 | % | |||||||||||||||||||||||||||||
2009 | 11.36 | (0.12 | ) | (0.33 | ) | (0.45 | ) | — | — | — | 10.91 | (4.0 | ) | 345 | (1.43 | ) | 2.25 | (c) | 3.55 | 55 | ||||||||||||||||||||||||||||||||||||
2008 | 14.31 | (0.12 | ) | (2.83 | ) | (2.95 | ) | — | — | — | 11.36 | (20.6 | ) | 196 | (0.94 | ) | 2.26 | (c) | 3.30 | 123 | ||||||||||||||||||||||||||||||||||||
2007 | 11.97 | (0.14 | ) | 2.57 | 2.43 | $ | (0.09 | ) | $ | (0.09 | ) | — | 14.31 | 20.4 | 298 | (1.04 | ) | 2.25 | 2.78 | 90 | ||||||||||||||||||||||||||||||||||||
2006 | 10.87 | 0.09 | 1.01 | 1.10 | — | — | — | 11.97 | 10.1 | 238 | 0.74 | 2.25 | 2.56 | 81 | ||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 11.65 | $ | (0.08 | ) | $ | 1.88 | $ | 1.80 | — | — | $ | 0.00 | $ | 13.45 | 15.5 | % | $ | 1,123 | (0.59 | )% | 1.25 | %(c) | 1.74 | % | 28 | % | |||||||||||||||||||||||||||||
2009 | 12.00 | (0.04 | ) | (0.31 | ) | (0.35 | ) | — | — | — | 11.65 | (2.9 | ) | 306 | (0.47 | ) | 1.25 | (c) | 2.55 | 55 | ||||||||||||||||||||||||||||||||||||
2008(d) | 12.92 | (0.01 | ) | (0.91 | ) | (0.92 | ) | — | — | — | 12.00 | (7.1 | ) | 165 | (0.06 | )(e) | 1.26 | (c)(e) | 2.30 | (e) | 123 |
† | 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 distributions and does not reflect applicable sales charges. Total return for a period of less than one year is not annualized. | |
†† | The ratios include a reduction for custodian fee credits on cash balances maintained with the custodian (“Custodian Fee Credits”). Historically, the ratios reflected operating expenses before the reduction for Custodian Fee Credits, and the ratios reflecting the reduction for Custodian Fee Credits were shown in a separate column entitled “Operating Expenses Net of Waivers/Reimbursements/Custodian Fee Credits.” If the ratios did not reflect a reduction for Custodian Fee Credits, the ratios for the years ended September 30, 2009, 2008, 2007, and 2006 would have been 1.50%, 1.58%, 1.71%, and 1.71% (Class AAA), 1.75%, 1.83%, 1.96%, and 1.96% (Class A), 2.25%, 2.33%, 2.46%, and 2.46% (Class B and Class C), and 1.25%, and 1.36% (Class I), respectively. For the year ended September 30, 2010, there were no Custodian Fee Credits. | |
††† | The ratios include a reduction for Custodian Fee Credits. Historically, the ratios reflected operating expenses before the reduction for waivers/reimbursements and Custodian Fee Credits. If the ratios did not reflect a reduction for Custodian Fee Credits, the ratios for the years ended September 30, 2009, 2008, 2007, and 2006 would have been 2.80%, 2.62%, 2.24%, and 2.02% (Class AAA), 3.05%, 2.87%, 2.49%, and 2.27% (Class A), 3.55%, 3.37%, 2.99%, and 2.77% (Class B and Class C), and 2.55% and 2.40% (Class I), respectively. For the year ended September 30, 2010, there were no Custodian Fee Credits. | |
(a) | Per share data is calculated using the average shares outstanding method. | |
(b) | Amount represents less than $0.005 per share. | |
(c) | The Fund incurred interest expense of $682 during the year ended September 30, 2008. A portion of this interest expense was paid for by prior years custodian fee credits. The impact to the ratios of operating expenses to the average net assets was minimal. If interest expense had not been incurred, the ratio of operating expenses to the average net assets would have been 1.50% (Class AAA), 1.75% (Class A), 2.25% (Class B and Class C), and 1.25% (Class I), respectively. For the years ended September 30, 2010, and 2009 the effect of interest expense was minimal. | |
(d) | From the commencement of offering Class I Shares on January 11, 2008 through September 30, 2008. | |
(e) | Annualized. |
See accompanying notes to financial statements.
33
GAMCO Westwood Funds
Financial Highlights
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period:
Income (Loss) from Investment Operations | Distributions to Shareholders | Ratios to Average Net Assets/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | Operating | Operating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized and | Net | Net | Expenses | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Total | Net | Asset | Assets, | Net of | Before | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Value, | Net | Gain | from | Net | Realized | Value, | End of | Net | Waivers/ | Waivers/ | Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | Beginning | Investment | (Loss) on | Investment | Investment | Gain on | Return of | Total | End of | Total | Period | Investment | Reimburse- | Reimburse- | Turnover | |||||||||||||||||||||||||||||||||||||||||||||
September 30 | of Period | Income(a) | Investments | Operations | Income | Investments | Capital | Distributions | Period | Return† | (in 000’s) | Income | ments††(b) | ments††† | Rate | |||||||||||||||||||||||||||||||||||||||||||||
Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 6.96 | $ | 0.13 | $ | 0.56 | $ | 0.69 | $ | (0.12 | ) | — | — | $ | (0.12 | ) | $ | 7.53 | 9.9 | % | $ | 4,822 | 1.73 | % | 1.50 | % | 3.19 | % | 10 | % | ||||||||||||||||||||||||||||||
2009 | 7.85 | 0.16 | (0.85 | ) | (0.69 | ) | (0.18 | ) | — | $ | (0.02 | ) | (0.20 | ) | 6.96 | (8.1 | ) | 4,869 | 2.57 | 1.50 | 2.93 | 14 | ||||||||||||||||||||||||||||||||||||||
2008 | 10.21 | 0.26 | (2.05 | ) | (1.79 | ) | (0.34 | ) | $ | (0.21 | ) | (0.02 | ) | (0.57 | ) | 7.85 | (18.2 | ) | 7,285 | 2.83 | 1.51 | 2.41 | 28 | |||||||||||||||||||||||||||||||||||||
2007 | 12.04 | 0.50 | 0.59 | 1.09 | (0.47 | ) | (2.45 | ) | — | (2.92 | ) | 10.21 | 10.0 | 17,871 | 4.65 | 1.50 | 1.94 | 64 | ||||||||||||||||||||||||||||||||||||||||||
2006 | 16.53 | 0.55 | (0.31 | ) | 0.24 | (0.40 | ) | (4.33 | ) | — | (4.73 | ) | 12.04 | 3.4 | 12,054 | 4.36 | 1.50 | 1.87 | 141 | |||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 7.20 | $ | 0.10 | $ | 0.59 | $ | 0.69 | $ | (0.10 | ) | — | — | $ | (0.10 | ) | $ | 7.79 | 9.7 | % | $ | 341 | 1.29 | % | 1.75 | % | 3.44 | % | 10 | % | ||||||||||||||||||||||||||||||
2009 | 8.12 | 0.08 | (0.81 | ) | (0.73 | ) | (0.17 | ) | — | $ | (0.02 | ) | (0.19 | ) | 7.20 | (8.4 | ) | 77 | 1.28 | 1.75 | 3.18 | 14 | ||||||||||||||||||||||||||||||||||||||
2008 | 10.54 | 0.24 | (2.11 | ) | (1.87 | ) | (0.32 | ) | $ | (0.21 | ) | (0.02 | ) | (0.55 | ) | 8.12 | (18.3 | ) | 51 | 2.53 | 1.76 | 2.66 | 28 | |||||||||||||||||||||||||||||||||||||
2007 | 12.34 | 0.50 | 0.59 | 1.09 | (0.44 | ) | (2.45 | ) | — | (2.89 | ) | 10.54 | 9.7 | 80 | 4.45 | 1.75 | 2.19 | 64 | ||||||||||||||||||||||||||||||||||||||||||
2006 | 16.76 | 0.54 | (0.32 | ) | 0.22 | (0.31 | ) | (4.33 | ) | — | (4.64 | ) | 12.34 | 3.2 | 97 | 4.21 | 1.75 | 2.12 | 141 | |||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 7.70 | $ | 0.08 | $ | 0.62 | $ | 0.70 | $ | (0.04 | ) | — | — | $ | (0.04 | ) | $ | 8.36 | 9.1 | % | $ | 97 | 1.04 | % | 2.25 | % | 3.94 | % | 10 | % | ||||||||||||||||||||||||||||||
2009 | 8.65 | 0.11 | (0.91 | ) | (0.80 | ) | (0.13 | ) | — | $ | (0.02 | ) | (0.15 | ) | 7.70 | (8.8 | ) | 261 | 1.68 | 2.25 | 3.68 | 14 | ||||||||||||||||||||||||||||||||||||||
2008 | 11.22 | 0.20 | (2.26 | ) | (2.06 | ) | (0.28 | ) | $ | (0.21 | ) | (0.02 | ) | (0.51 | ) | 8.65 | (18.8 | ) | 319 | 1.99 | 2.26 | 3.16 | 28 | |||||||||||||||||||||||||||||||||||||
2007 | 12.98 | 0.38 | 0.71 | 1.09 | (0.40 | ) | (2.45 | ) | — | (2.85 | ) | 11.22 | 9.1 | 397 | 3.35 | 2.25 | 2.68 | 64 | ||||||||||||||||||||||||||||||||||||||||||
2006 | 17.26 | 0.50 | (0.32 | ) | 0.18 | (0.13 | ) | (4.33 | ) | — | (4.46 | ) | 12.98 | 2.8 | 16 | 3.71 | 2.25 | 2.62 | 141 | |||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 6.97 | $ | 0.14 | $ | 0.56 | $ | 0.70 | $ | (0.14 | ) | — | — | $ | (0.14 | ) | $ | 7.53 | 10.1 | % | $ | 54 | 1.97 | % | 1.25 | % | 2.94 | % | 10 | % | ||||||||||||||||||||||||||||||
2009 | 7.85 | 0.19 | (0.85 | ) | (0.66 | ) | (0.20 | ) | — | $ | (0.02 | ) | (0.22 | ) | 6.97 | (7.8 | ) | 59 | 3.13 | 1.25 | 2.68 | 14 | ||||||||||||||||||||||||||||||||||||||
2008(c) | 9.14 | 0.18 | (1.18 | ) | (1.00 | ) | (0.27 | ) | — | (0.02 | ) | (0.29 | ) | 7.85 | (11.2 | ) | 118 | 2.82 | (d) | 1.26 | (d) | 2.16 | (d) | 28 |
† | 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 distributions and does not reflect applicable sales charges. Total return for a period of less than one year is not annualized. | |
†† | The ratios include a reduction for custodian fee credits on cash balances maintained with the custodian (“Custodian Fee Credits”). Historically, the ratios reflected operating expenses before the reduction for Custodian Fee Credits, and the ratios reflecting the reduction for Custodian Fee Credits were shown in a separate column entitled “Operating Expenses Net of Waivers/Reimbursements/Custodian Fee Credits.” If the ratios did not reflect a reduction for Custodian Fee Credits, the ratios for the years ended September 30, 2009, 2008, 2007, and 2006 would have been 1.63%, 1.58%, 1.76%, and 1.65% (Class AAA), 1.88%, 1.83%, 2.01%, and 1.90% (Class A), 2.38%, 2.33%, 2.51%, and 2.40% (Class C), and 1.38% and 1.36% (Class I) respectively. For the year ended September 30, 2010, there were no Custodian Fee Credits. | |
††† | The ratios include a reduction for Custodian Fee Credits. Historically, the ratios reflected operating expenses before the reduction for waivers/reimbursements and Custodian Fee Credits. If the ratios did not reflect a reduction for Custodian Fee Credits, the ratios for the years ended September 30, 2009, 2008, 2007, and 2006 would have been 3.06%, 2.48%, 2.20%, and 2.02% (Class AAA), 3.31%, 2.73%, 2.45%, and 2.27% (Class A), 3.81%, 3.23%, 2.94%, and 2.77% (Class C), and 2.81% and 2.26% (Class I), respectively. For the year ended September 30, 2010, there were no Custodian Fee Credits. | |
(a) | Per share data is calculated using the average shares outstanding method. | |
(b) | The Fund incurred interest expense of $1,169 and $4,188 during the years ended September 30, 2009 and September 30, 2008, respectively. All of the interest expense for 2009 and a portion of this interest expense in 2008 was paid for by prior years custodian fee credits. This would impact the ratios of operating expenses to the average net assets by 0.02% and 0.03% for all Classes, respectively. If interest expense had not been incurred, the ratios of operating expenses to the average net assets would have been 1.48% and 1.50% (Class AAA), 1.73 and 1.75% (Class A), 2.23% and 2.25% (Class C), and 1.23% and 1.25% (Class I), respectively. For the years ended September 30, 2010 and 2007, the effect of interest expense was minimal. For the year ended September 30, 2006, there was no interest expense. | |
(c) | From the commencement of offering Class I Shares on January 11, 2008 through September 30, 2008. | |
(d) | Annualized. |
See accompanying notes to financial statements.
34
GAMCO Westwood Funds
Financial Highlights
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period:
Income (Loss) from Investment Operations | Distributions to Shareholders | Ratios to Average Net Assets/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset | Net | and | Total | Net | Net Assets, | |||||||||||||||||||||||||||||||||||||||||||||||
Value, | Investment | Unrealized | from | Net | Net Realized | Asset Value, | End of | Net | Portfolio | |||||||||||||||||||||||||||||||||||||||||||
Period Ended | Beginning | Income | Gain (Loss) on | Investment | Investment | Gain on | Total | End of | Total | Period | Investment | Operating | Turnover | |||||||||||||||||||||||||||||||||||||||
September 30 | of Period | (Loss)(a) | Investments | Operations | Income | Investments | Distributions | Period | Return† | (in 000’s) | Income (Loss) | Expenses†† | Rate | |||||||||||||||||||||||||||||||||||||||
Equity Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 7.72 | $ | 0.04 | $ | 0.48 | $ | 0.52 | $ | (0.07 | ) | — | $ | (0.07 | ) | $ | 8.17 | 6.8 | % | $ | 99,986 | 0.55 | % | 1.54 | %(b) | 52 | % | |||||||||||||||||||||||||
2009 | 9.21 | 0.08 | (1.48 | ) | (1.40 | ) | (0.09 | ) | — | (0.09 | ) | 7.72 | (15.2 | ) | 132,314 | 1.21 | 1.57 | (b) | 111 | |||||||||||||||||||||||||||||||||
2008 | 12.63 | 0.08 | (1.87 | ) | (1.79 | ) | (0.05 | ) | $ | (1.58 | ) | (1.63 | ) | 9.21 | (16.0 | ) | 167,946 | 0.73 | 1.47 | 71 | ||||||||||||||||||||||||||||||||
2007 | 12.51 | 0.04 | 2.15 | 2.19 | (0.05 | ) | (2.02 | ) | (2.07 | ) | 12.63 | 19.7 | 189,913 | 0.37 | 1.47 | 58 | ||||||||||||||||||||||||||||||||||||
2006 | 11.08 | 0.06 | 1.42 | 1.48 | (0.05 | ) | — | (0.05 | ) | 12.51 | 13.4 | 169,404 | 0.55 | 1.50 | 73 | |||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 7.69 | $ | 0.02 | $ | 0.48 | $ | 0.50 | $ | (0.06 | ) | — | $ | (0.06 | ) | $ | 8.13 | 6.5 | % | $ | 6,616 | 0.31 | % | 1.79 | %(b) | 52 | % | |||||||||||||||||||||||||
2009 | 9.11 | 0.06 | (1.43 | ) | (1.37 | ) | (0.05 | ) | — | (0.05 | ) | 7.69 | (15.0 | ) | 6,131 | 0.89 | 1.82 | (b) | 111 | |||||||||||||||||||||||||||||||||
2008 | 12.57 | 0.05 | (1.89 | ) | (1.84 | ) | (0.04 | ) | $ | (1.58 | ) | (1.62 | ) | 9.11 | (16.6 | ) | 5,079 | 0.47 | 1.72 | 71 | ||||||||||||||||||||||||||||||||
2007 | 12.45 | 0.01 | 2.15 | 2.16 | (0.02 | ) | (2.02 | ) | (2.04 | ) | 12.57 | 19.5 | 3,527 | 0.12 | 1.72 | 58 | ||||||||||||||||||||||||||||||||||||
2006 | 11.05 | 0.03 | 1.41 | 1.44 | (0.04 | ) | — | (0.04 | ) | 12.45 | 13.1 | 2,780 | 0.27 | 1.75 | 73 | |||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 7.54 | $ | (0.02 | ) | $ | 0.46 | $ | 0.44 | $ | (0.02 | ) | — | $ | (0.02 | ) | $ | 7.96 | 5.9 | % | $ | 6 | (0.19 | )% | 2.29 | %(b) | 52 | % | ||||||||||||||||||||||||
2009 | 8.95 | 0.04 | (1.45 | ) | (1.41 | ) | — | — | — | 7.54 | (15.8 | ) | 6 | 0.57 | 2.32 | (b) | 111 | |||||||||||||||||||||||||||||||||||
2008 | 12.36 | (0.00 | )(c) | (1.83 | ) | (1.83 | ) | — | $ | (1.58 | ) | (1.58 | ) | 8.95 | (16.7 | ) | 13 | (0.01 | ) | 2.22 | 71 | |||||||||||||||||||||||||||||||
2007 | 12.31 | (0.05 | ) | 2.12 | 2.07 | — | (2.02 | ) | (2.02 | ) | 12.36 | 18.8 | 23 | (0.39 | ) | 2.22 | 58 | |||||||||||||||||||||||||||||||||||
2006 | 10.96 | (0.02 | ) | 1.40 | 1.38 | (0.03 | ) | — | (0.03 | ) | 12.31 | 12.6 | 32 | (0.20 | ) | 2.25 | 73 | |||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 7.49 | $ | (0.02 | ) | $ | 0.46 | $ | 0.44 | $ | (0.02 | ) | — | $ | (0.02 | ) | $ | 7.91 | 5.9 | % | $ | 999 | (0.19 | )% | 2.29 | %(b) | 52 | % | ||||||||||||||||||||||||
2009 | 8.95 | 0.02 | (1.44 | ) | (1.42 | ) | (0.04 | ) | — | (0.04 | ) | 7.49 | (15.8 | ) | 1,067 | 0.37 | 2.32 | (b) | 111 | |||||||||||||||||||||||||||||||||
2008 | 12.36 | (0.00 | )(c) | (1.83 | ) | (1.83 | ) | — | $ | (1.58 | ) | (1.58 | ) | 8.95 | (16.7 | ) | 736 | (0.02 | ) | 2.22 | 71 | |||||||||||||||||||||||||||||||
2007 | 12.31 | (0.05 | ) | 2.12 | 2.07 | — | (2.02 | ) | (2.02 | ) | 12.36 | 18.8 | 320 | (0.39 | ) | 2.22 | 58 | |||||||||||||||||||||||||||||||||||
2006 | 10.97 | (0.03 | ) | 1.40 | 1.37 | (0.03 | ) | — | (0.03 | ) | 12.31 | 12.6 | 316 | (0.28 | ) | 2.25 | 73 | |||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 7.73 | $ | 0.06 | $ | 0.49 | $ | 0.55 | $ | (0.09 | ) | — | $ | (0.09 | ) | $ | 8.19 | 7.1 | % | $ | 1,043 | 0.81 | % | 1.29 | %(b) | 52 | % | |||||||||||||||||||||||||
2009 | 9.23 | 0.10 | (1.49 | ) | (1.39 | ) | (0.11 | ) | — | (0.11 | ) | 7.73 | (15.0 | ) | 691 | 1.44 | 1.32 | (b) | 111 | |||||||||||||||||||||||||||||||||
2008(d) | 10.35 | 0.07 | (1.19 | ) | (1.12 | ) | — | — | — | 9.23 | (10.8 | ) | 797 | 1.00 | (e) | 1.22 | (e) | 71 |
† | 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 distributions and does not reflect applicable sales charges. Total return for a period of less than one year is not annualized. | |
†† | The ratios include a reduction for custodian fee credits on cash balances maintained with the custodian (“Custodian Fee Credits”). Historically, the ratios reflected operating expenses before the reduction for Custodian Fee Credits, and the ratios reflecting the reduction for Custodian Fee Credits were shown in a separate column entitled “Operating Expenses Net of Custodian Fee Credits.” If the ratios did not reflect a reduction for Custodian Fee Credits, the ratios for the years ended September 30, 2010, 2009, 2008, 2007, and 2006 would have been 1.56%, 1.59%, 1.49%, 1.52%, and 1.54% (Class AAA), 1.81%, 1.84%, 1.74%, 1.77%, and 1.79% (Class A), 2.31%, 2.34%, 2.24%, 2.27%, and 2.29% (Class B and Class C), and 1.31%, 1.34%, and 1.24% (Class I), respectively. | |
(a) | Per share data is calculated using the average shares outstanding method. | |
(b) | The Fund incurred interest expense of $1,854 and $106 during the years ended September 30, 2010 and 2009, respectively. This interest expense was paid for by prior year custodian fee credits. The effect of interest expense was minimal. | |
(c) | Amount represents less than $0.005 per share. | |
(d) | From the commencement of offering Class I Shares on January 11, 2008 through September 30, 2008. | |
(e) | Annualized. |
See accompanying notes to financial statements.
35
GAMCO Westwood Funds
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period:
Income (Loss) from Investment Operations | Distributions to Shareholders | Ratios to Average Net Assets/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset | and | Total | Net | Net | Net Assets, | |||||||||||||||||||||||||||||||||||||||||||||||
Value, | Net | Unrealized | from | Net | Realized | Asset Value, | End of | Net | Portfolio | |||||||||||||||||||||||||||||||||||||||||||
Period Ended | Beginning | Investment | Gain (Loss) on | Investment | Investment | Gain on | Total | End of | Total | Period | Investment | Operating | Turnover | |||||||||||||||||||||||||||||||||||||||
September 30 | of Period | Income(a) | Investments | Operations | Income | Investments | Distributions | Period | Return† | (in 000’s) | Income | Expenses†† | Rate | |||||||||||||||||||||||||||||||||||||||
Balanced Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 9.65 | $ | 0.14 | $ | 0.49 | $ | 0.63 | $ | (0.15 | ) | — | $ | (0.15 | ) | $ | 10.13 | 6.5 | % | $ | 106,782 | 1.45 | % | 1.24 | % | 33 | % | |||||||||||||||||||||||||
2009 | 10.47 | 0.17 | (0.77 | ) | (0.60 | ) | (0.17 | ) | $ | (0.05 | ) | (0.22 | ) | 9.65 | (5.6 | ) | 123,323 | 1.86 | 1.25 | 89 | ||||||||||||||||||||||||||||||||
2008 | 12.58 | 0.21 | (1.17 | ) | (0.96 | ) | (0.22 | ) | (0.93 | ) | (1.15 | ) | 10.47 | (8.4 | ) | 138,174 | 1.83 | 1.21 | 60 | |||||||||||||||||||||||||||||||||
2007 | 12.82 | 0.22 | 1.36 | 1.58 | (0.21 | ) | (1.61 | ) | (1.82 | ) | 12.58 | 13.6 | 152,185 | 1.76 | 1.19 | 46 | ||||||||||||||||||||||||||||||||||||
2006 | 12.74 | 0.22 | 0.95 | 1.17 | (0.24 | ) | (0.85 | ) | (1.09 | ) | 12.82 | 9.8 | 145,028 | 1.78 | 1.27 | 68 | ||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 9.69 | $ | 0.12 | $ | 0.48 | $ | 0.60 | $ | (0.12 | ) | — | $ | (0.12 | ) | $ | 10.17 | 6.2 | % | $ | 5,136 | 1.20 | % | 1.49 | % | 33 | % | |||||||||||||||||||||||||
2009 | 10.51 | 0.14 | (0.76 | ) | (0.62 | ) | (0.15 | ) | $ | (0.05 | ) | (0.20 | ) | 9.69 | (5.8 | ) | 5,995 | 1.61 | 1.50 | 89 | ||||||||||||||||||||||||||||||||
2008 | 12.63 | 0.18 | (1.18 | ) | (1.00 | ) | (0.19 | ) | (0.93 | ) | (1.12 | ) | 10.51 | (8.7 | ) | 5,639 | 1.56 | 1.46 | 60 | |||||||||||||||||||||||||||||||||
2007 | 12.87 | 0.19 | 1.36 | 1.55 | (0.18 | ) | (1.61 | ) | (1.79 | ) | 12.63 | 13.3 | 5,519 | 1.51 | 1.44 | 46 | ||||||||||||||||||||||||||||||||||||
2006 | 12.74 | 0.19 | 0.95 | 1.14 | (0.16 | ) | (0.85 | ) | (1.01 | ) | 12.87 | 9.5 | 5,596 | 1.53 | 1.52 | 68 | ||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 9.77 | $ | 0.07 | $ | 0.48 | $ | 0.55 | $ | (0.07 | ) | — | $ | (0.07 | ) | $ | 10.25 | 5.7 | % | $ | 82 | 0.69 | % | 1.99 | % | 33 | % | |||||||||||||||||||||||||
2009 | 10.60 | 0.10 | (0.78 | ) | (0.68 | ) | (0.10 | ) | $ | (0.05 | ) | (0.15 | ) | 9.77 | (6.3 | ) | 105 | 1.13 | 2.00 | 89 | ||||||||||||||||||||||||||||||||
2008 | 12.72 | 0.13 | (1.20 | ) | (1.07 | ) | (0.12 | ) | (0.93 | ) | (1.05 | ) | 10.60 | (9.1 | ) | 125 | 1.10 | 1.96 | 60 | |||||||||||||||||||||||||||||||||
2007 | 12.95 | 0.13 | 1.37 | 1.50 | (0.12 | ) | (1.61 | ) | (1.73 | ) | 12.72 | 12.7 | 194 | 1.02 | 1.94 | 46 | ||||||||||||||||||||||||||||||||||||
2006 | 12.76 | 0.13 | 0.95 | 1.08 | (0.04 | ) | (0.85 | ) | (0.89 | ) | 12.95 | 9.0 | 141 | 1.02 | 2.02 | 68 | ||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 9.78 | $ | 0.07 | $ | 0.48 | $ | 0.55 | $ | (0.07 | ) | — | $ | (0.07 | ) | $ | 10.26 | 5.7 | % | $ | 4,975 | 0.70 | % | 1.99 | % | 33 | % | |||||||||||||||||||||||||
2009 | 10.61 | 0.10 | (0.77 | ) | (0.67 | ) | (0.11 | ) | $ | (0.05 | ) | (0.16 | ) | 9.78 | (6.2 | ) | 4,859 | 1.06 | 2.00 | 89 | ||||||||||||||||||||||||||||||||
2008 | 12.74 | 0.12 | (1.19 | ) | (1.07 | ) | (0.13 | ) | (0.93 | ) | (1.06 | ) | 10.61 | (9.1 | ) | 1,389 | 1.05 | 1.96 | 60 | |||||||||||||||||||||||||||||||||
2007 | 12.97 | 0.13 | 1.37 | 1.50 | (0.12 | ) | (1.61 | ) | (1.73 | ) | 12.74 | 12.7 | 1,003 | 1.01 | 1.94 | 46 | ||||||||||||||||||||||||||||||||||||
2006 | 12.78 | 0.13 | 0.95 | 1.08 | (0.04 | ) | (0.85 | ) | (0.89 | ) | 12.97 | 9.0 | 946 | 1.02 | 2.02 | 68 | ||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 9.64 | $ | 0.17 | $ | 0.48 | $ | 0.65 | $ | (0.17 | ) | — | $ | (0.17 | ) | $ | 10.12 | 6.8 | % | $ | 1,769 | 1.70 | % | 0.99 | % | 33 | % | |||||||||||||||||||||||||
2009 | 10.46 | 0.19 | (0.77 | ) | (0.58 | ) | (0.19 | ) | $ | (0.05 | ) | (0.24 | ) | 9.64 | (5.3 | ) | 1,451 | 2.07 | 1.00 | 89 | ||||||||||||||||||||||||||||||||
2008(b) | 11.33 | 0.17 | (0.87 | ) | (0.70 | ) | (0.17 | ) | — | (0.17 | ) | 10.46 | (6.2 | ) | 1,490 | 2.14 | (c) | 0.96 | (c) | 60 |
† | 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 distributions and does not reflect applicable sales charges. Total return for a period of less than one year is not annualized. | |
†† | The ratios include a reduction for custodian fee credits on cash balances maintained with the custodian (“Custodian Fee Credits”). Historically, the ratios reflected operating expenses before the reduction for Custodian Fee Credits. If the ratios did not reflect a reduction for Custodian Fee Credits, the ratios for the years ended September 30, 2010, 2009, 2008, 2007, and 2006 would have been 1.26%, 1.27%, 1.23%, 1.27%, and 1.32% (Class AAA), 1.51%, 1.52%, 1.48%, 1.52%, and 1.57% (Class A), 2.01%, 2.02%, 1.98%, 2.02%, and 2.07% (Class B and Class C), and 1.01%, 1.02%, and 0.98% (Class I), respectively. | |
(a) | Per share data is calculated using the average shares outstanding method. | |
(b) | From the commencement of offering Class I Shares on January 11, 2008 through September 30, 2008. | |
(c) | Annualized. |
See accompanying notes to financial statements.
36
GAMCO Westwood Funds
Financial Highlights
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period:
Income (Loss) from Investment Operations | Distributions to Shareholders | Ratios to Average Net Assets/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | Operating | Operating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized | Net | Net | Expenses | Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset | and | Total | Net | Asset | Assets, | Net of | Before | |||||||||||||||||||||||||||||||||||||||||||||||||
Value, | Net | Unrealized Gain | from | Net | Realized | Value, | End of | Net | Waivers/ | Waivers/ | Portfolio | |||||||||||||||||||||||||||||||||||||||||||||
Period Ended | Beginning | Investment | (Loss) on | Investment | Investment | Gain on | Total | End of | Total | Period | Investment | Reimburse- | Reimburse- | Turnover | ||||||||||||||||||||||||||||||||||||||||||
September 30 | of Period | Income(a) | Investments | Operations | Income | Investments | Distributions | Period | Return† | (in 000’s) | Income | ments†† | ments††† | Rate | ||||||||||||||||||||||||||||||||||||||||||
Intermediate Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 11.52 | $ | 0.27 | $ | 0.46 | $ | 0.73 | $ | (0.27 | ) | $ | (0.08 | ) | $ | (0.35 | ) | $ | 11.90 | 6.5 | % | $ | 17,038 | 2.32 | % | 1.00 | % | 1.47 | % | 14 | % | |||||||||||||||||||||||||
2009 | 10.84 | 0.28 | 0.68 | 0.96 | (0.28 | ) | — | (0.28 | ) | 11.52 | 9.0 | 13,949 | 2.51 | 1.00 | 1.54 | 18 | ||||||||||||||||||||||||||||||||||||||||
2008 | 10.80 | 0.36 | 0.04 | 0.40 | (0.36 | ) | — | (0.36 | ) | 10.84 | 3.7 | 10,498 | 3.23 | 1.00 | 1.69 | 32 | ||||||||||||||||||||||||||||||||||||||||
2007 | 10.81 | 0.40 | 0.00 | (b) | 0.40 | (0.41 | ) | — | (0.41 | ) | 10.80 | 3.7 | 9,413 | 3.73 | 1.00 | 1.54 | 20 | |||||||||||||||||||||||||||||||||||||||
2006 | 10.93 | 0.39 | (0.11 | ) | 0.28 | (0.39 | ) | (0.01 | ) | (0.40 | ) | 10.81 | 2.7 | 9,917 | 3.65 | 1.00 | 1.47 | 35 | ||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 11.51 | $ | 0.26 | $ | 0.47 | $ | 0.73 | $ | (0.26 | ) | $ | (0.08 | ) | $ | (0.34 | ) | $ | 11.90 | 6.4 | % | $ | 487 | 2.23 | % | 1.10 | % | 1.57 | % | 14 | % | |||||||||||||||||||||||||
2009 | 10.84 | 0.27 | 0.67 | 0.94 | (0.27 | ) | — | (0.27 | ) | 11.51 | 8.7 | 523 | 2.40 | 1.10 | 1.64 | 18 | ||||||||||||||||||||||||||||||||||||||||
2008 | 10.80 | 0.34 | 0.05 | 0.39 | (0.35 | ) | — | (0.35 | ) | 10.84 | 3.6 | 101 | 3.09 | 1.10 | 1.79 | 32 | ||||||||||||||||||||||||||||||||||||||||
2007 | 10.81 | 0.39 | 0.00 | (b) | 0.39 | (0.40 | ) | — | (0.40 | ) | 10.80 | 3.7 | 69 | 3.64 | 1.10 | 1.64 | 20 | |||||||||||||||||||||||||||||||||||||||
2006 | 10.93 | 0.39 | (0.12 | ) | 0.27 | (0.38 | ) | (0.01 | ) | (0.39 | ) | 10.81 | 2.6 | 92 | 3.59 | 1.10 | 1.57 | 35 | ||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 11.51 | $ | 0.18 | $ | 0.47 | $ | 0.65 | $ | (0.18 | ) | $ | (0.08 | ) | $ | (0.26 | ) | $ | 11.90 | 5.8 | % | $ | 38 | 1.59 | % | 1.75 | % | 2.22 | % | 14 | % | |||||||||||||||||||||||||
2009 | 10.84 | 0.20 | 0.67 | 0.87 | (0.20 | ) | — | (0.20 | ) | 11.51 | 8.0 | 130 | 1.77 | 1.75 | 2.29 | 18 | ||||||||||||||||||||||||||||||||||||||||
2008 | 10.80 | 0.28 | 0.03 | 0.31 | (0.27 | ) | — | (0.27 | ) | 10.84 | 2.9 | 48 | 2.53 | 1.75 | 2.44 | 32 | ||||||||||||||||||||||||||||||||||||||||
2007 | 10.81 | 0.32 | 0.00 | (b) | 0.32 | (0.33 | ) | — | (0.33 | ) | 10.80 | 3.0 | 93 | 2.97 | 1.75 | 2.29 | 20 | |||||||||||||||||||||||||||||||||||||||
2006 | 10.93 | 0.31 | (0.11 | ) | 0.20 | (0.31 | ) | (0.01 | ) | (0.32 | ) | 10.81 | 2.0 | 282 | 2.87 | 1.75 | 2.22 | 35 | ||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 10.96 | $ | 0.17 | $ | 0.44 | $ | 0.61 | $ | (0.17 | ) | $ | (0.08 | ) | $ | (0.25 | ) | $ | 11.32 | 5.7 | % | $ | 1,716 | 1.50 | % | 1.75 | % | 2.22 | % | 14 | % | |||||||||||||||||||||||||
2009 | 10.31 | 0.19 | 0.65 | 0.84 | (0.19 | ) | — | (0.19 | ) | 10.96 | 8.3 | 582 | 1.76 | 1.75 | 2.29 | 18 | ||||||||||||||||||||||||||||||||||||||||
2008 | 10.28 | 0.24 | 0.05 | 0.29 | (0.26 | ) | — | (0.26 | ) | 10.31 | 2.8 | 478 | 2.29 | 1.75 | 2.44 | 32 | ||||||||||||||||||||||||||||||||||||||||
2007 | 10.31 | 0.40 | 0.09 | 0.49 | (0.52 | ) | — | (0.52 | ) | 10.28 | 4.8 | 15 | 3.96 | 1.75 | 2.29 | 20 | ||||||||||||||||||||||||||||||||||||||||
2006 | 10.82 | 0.32 | (0.36 | ) | (0.04 | ) | (0.46 | ) | (0.01 | ) | (0.47 | ) | 10.31 | (0.3 | ) | 0.1 | 3.08 | 1.75 | 2.22 | 35 | ||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | $ | 11.52 | $ | 0.30 | $ | 0.47 | $ | 0.77 | $ | (0.30 | ) | $ | (0.08 | ) | $ | (0.38 | ) | $ | 11.91 | 6.8 | % | $ | 125 | 2.58 | % | 0.75 | % | 1.22 | % | 14 | % | |||||||||||||||||||||||||
2009 | 10.85 | 0.31 | 0.67 | 0.98 | (0.31 | ) | — | (0.31 | ) | 11.52 | 9.1 | 322 | 2.75 | 0.75 | 1.29 | 18 | ||||||||||||||||||||||||||||||||||||||||
2008(c) | 11.09 | 0.28 | (0.25 | ) | 0.03 | (0.27 | ) | — | (0.27 | ) | 10.85 | 0.2 | 363 | 3.57 | (d) | 0.75 | (d) | 1.44 | (d) | 32 |
† | 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 distributions and does not reflect applicable sales charges. Total return for a period of less than one year is not annualized. | |
†† | The ratios include a reduction for custodian fee credits on cash balances maintained with the custodian (“Custodian Fee Credits”). Historically, the ratios reflected operating expenses before the reduction for Custodian Fee Credits, and the ratios reflecting the reduction for Custodian Fee Credits were shown in a separate column entitled “Operating Expenses Net of Waivers/Reimbursements/Custodian Fee Credits.” If the ratios did not reflect a reduction for Custodian Fee Credits, the ratios for the years ended September 30, 2010, 2009, 2008, 2007, and 2006 would have been 1.02%, 1.04%, 1.07%, 1.10%, and 1.06% (Class AAA), 1.12%, 1.14%, 1.17%, 1.20%, and 1.16% (Class A), 1.77%, 1.79%, 1.82%, 1.85%, and 1.81% (Class B and Class C), and 0.77%, 0.79%, and 0.84% (Class I), respectively. | |
††† | The ratios include a reduction for Custodian Fee Credits. Historically, the ratios reflected operating expenses before the reduction for waivers/reimbursements and Custodian Fee Credits. If the ratios did not reflect a reduction for Custodian Fee Credits, the ratios for the years ended September 30, 2010, 2009, 2008, 2007, and 2006 would have been 1.49%, 1.58%, 1.76%, 1.64%, and 1.53% (Class AAA), 1.59%, 1.68%, 1.86%, 1.74%, and 1.63% (Class A), 2.24%, 2.33%, 2.51%, 2.39%, and 2.28% (Class B and Class C), and 1.24%, 1.33%, and 1.53% (Class I), respectively. | |
(a) | Per share data is calculated using the average shares outstanding method. | |
(b) | Amount represents less than $0.005 per share. | |
(c) | From the commencement of offering Class I Shares on January 11, 2008 through September 30, 2008. | |
(d) | Annualized. |
See accompanying notes to financial statements.
37
GAMCO Westwood Funds
Notes to Financial Statements
Notes to Financial Statements
1. Organization. The GAMCO Westwood Funds (the “Trust”) was organized as a Massachusetts business trust on June 12, 1986. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified open-end management investment company and currently consists of six active separate investment portfolios: GAMCO Westwood Mighty MitesSM Fund (“Mighty MitesSM Fund”), GAMCO Westwood SmallCap Equity Fund (“SmallCap Equity Fund”), GAMCO Westwood Income Fund (“Income Fund”), GAMCO Westwood Equity Fund (“Equity Fund”), GAMCO Westwood Balanced Fund (“Balanced Fund”), and GAMCO Westwood Intermediate Bond Fund (“Intermediate Bond Fund”), (individually, a “Fund” and collectively, the “Funds”), each with five classes of shares outstanding except for the Income Fund with four classes outstanding. Each class of shares outstanding bears the same voting, dividend, liquidation, and other rights and conditions, except that the expenses incurred in the distribution and marketing of such shares are different for each class.
The investment objectives of each Fund are as follows:
• | Mighty MitesSM Fund seeks to provide long-term capital appreciation by investing primarily in micro-capitalization equity securities. | ||
• | SmallCap Equity Fund seeks to provide long-term capital appreciation by investing primarily in small capitalization equity securities. | ||
• | Income Fund seeks to provide a high level of current income as well as long-term capital appreciation by investing primarily in income producing equity and fixed income securities. | ||
• | Equity Fund seeks to provide capital appreciation. The Fund’s secondary goal is to produce current income. | ||
• | Balanced Fund seeks to provide capital appreciation and current income resulting in a high total investment return consistent with prudent investment risk and a balanced investment approach. | ||
• | Intermediate Bond Fund seeks to maximize total return, while maintaining a level of current income consistent with the maintenance of principal and liquidity. |
2. Significant Accounting Policies. The Trust’s financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Funds 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 Trustees (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 Teton Advisors, Inc. (the “Adviser”).
Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market but prior to the close of business on the day the securities are being valued. Debt instruments with remaining maturities of sixty days or less that are not credit impaired 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 fair valued as determined by the Board. Debt instruments having a maturity greater than sixty days for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations.
Securities and assets for which market quotations are not readily available are fair valued as determined by 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 with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with 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.
38
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
Notes to Financial Statements (Continued)
The inputs and valuation techniques used to measure fair value of the Funds’ investments are summarized into three levels as described in the hierarchy below:
• | Level 1 – quoted prices in active markets for identical securities; | ||
• | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and | ||
• | Level 3 – significant unobservable inputs (including a Fund’s determinations as to the fair value of investments). |
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Funds’ investments in securities by inputs used to value the Funds’ investments as of September 30, 2010 is as follows:
Valuation Inputs | ||||||||||||||||
Level 1 | Level 2 Other Significant | Level 3 Significant | Total Market Value | |||||||||||||
Quoted Prices | Observable Inputs | Unobservable Inputs | at 9/30/10 | |||||||||||||
MIGHTY MITESSM FUND | ||||||||||||||||
INVESTMENTS IN SECURITIES: | ||||||||||||||||
ASSETS (Market Value): | ||||||||||||||||
Common Stocks: | ||||||||||||||||
Broadcasting | $ | 10,533,723 | — | $ | 1 | $ | 10,533,724 | |||||||||
Business Services | 15,608,607 | — | 0 | 15,608,607 | ||||||||||||
Cable | 70,025 | — | 0 | 70,025 | ||||||||||||
Consumer Products | 8,081,014 | $ | 1,053 | — | 8,082,067 | |||||||||||
Educational Services | 2,340,817 | — | 0 | 2,340,817 | ||||||||||||
Energy and Utilities: Integrated | 1,899,765 | 14,280 | — | 1,914,045 | ||||||||||||
Entertainment | 579,655 | — | 82,092 | 661,747 | ||||||||||||
Financial Services | 14,354,332 | 75,000 | — | 14,429,332 | ||||||||||||
Health Care | 30,852,873 | — | 12,280 | 30,865,153 | ||||||||||||
Real Estate | 3,412,085 | 52,500 | 1,413 | 3,465,998 | ||||||||||||
Telecommunications | 3,104,490 | — | 10 | 3,104,500 | ||||||||||||
Other Industries (a) | 199,557,750 | — | — | 199,557,750 | ||||||||||||
Total Common Stocks | 290,395,136 | 142,833 | 95,796 | 290,633,765 | ||||||||||||
Preferred Stocks (a) | 669,357 | — | — | 669,357 | ||||||||||||
Convertible Preferred Stocks (a) | — | 13,095 | — | 13,095 | ||||||||||||
Warrants (a) | — | 0 | — | 0 | ||||||||||||
Corporate Bonds | — | 133,781 | — | 133,781 | ||||||||||||
U.S. Government Obligations | — | 80,876,519 | — | 80,876,519 | ||||||||||||
TOTAL INVESTMENTS IN SECURITIES – ASSETS | $ | 291,064,493 | $ | 81,166,228 | $ | 95,796 | $ | 372,326,517 | ||||||||
SMALLCAP EQUITY FUND | ||||||||||||||||
INVESTMENTS IN SECURITIES: | ||||||||||||||||
ASSETS (Market Value): | ||||||||||||||||
Common Stocks (a) | $ | 15,605,839 | — | — | $ | 15,605,839 | ||||||||||
U.S. Government Obligations | — | $ | 299,949 | — | 299,949 | |||||||||||
TOTAL INVESTMENTS IN SECURITIES – ASSETS | $ | 15,605,839 | $ | 299,949 | — | $ | 15,905,788 | |||||||||
INCOME FUND | ||||||||||||||||
INVESTMENTS IN SECURITIES: | ||||||||||||||||
ASSETS (Market Value): | ||||||||||||||||
Common Stocks (a) | $ | 4,097,039 | — | — | $ | 4,097,039 | ||||||||||
Preferred Stocks (a) | 609,242 | — | — | 609,242 | ||||||||||||
Corporate Bonds | — | $ | 249,643 | — | 249,643 | |||||||||||
U.S. Government Obligations | — | 354,901 | — | 354,901 | ||||||||||||
TOTAL INVESTMENTS IN SECURITIES – ASSETS | $ | 4,706,281 | $ | 604,544 | — | $ | 5,310,825 | |||||||||
EQUITY FUND | ||||||||||||||||
INVESTMENTS IN SECURITIES: | ||||||||||||||||
ASSETS (Market Value): | ||||||||||||||||
Common Stocks (a) | $ | 107,566,470 | — | — | $ | 107,566,470 | ||||||||||
Short-Term Investments (a) | 1,035,442 | — | — | 1,035,442 | ||||||||||||
TOTAL INVESTMENTS IN SECURITIES – ASSETS | $ | 108,601,912 | — | — | $ | 108,601,912 | ||||||||||
BALANCED FUND | ||||||||||||||||
INVESTMENTS IN SECURITIES: | ||||||||||||||||
ASSETS (Market Value): | ||||||||||||||||
Common Stocks (a) | $ | 70,741,374 | — | — | $ | 70,741,374 | ||||||||||
Short-Term Investments (a) | 3,647,590 | — | — | 3,647,590 | ||||||||||||
Corporate Bonds | — | $ | 16,855,678 | — | 16,855,678 | |||||||||||
U.S. Government Agency Obligations | — | 14,686,876 | — | 14,686,876 | ||||||||||||
U.S. Government Obligations | — | 12,580,728 | — | 12,580,728 | ||||||||||||
TOTAL INVESTMENTS IN SECURITIES – ASSETS | $ | 74,388,964 | $ | 44,123,282 | — | $ | 118,512,246 | |||||||||
39
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
Notes to Financial Statements (Continued)
Valuation Inputs (Continued) | ||||||||||||||||
Level 1 | Level 2 Other Significant | Level 3 Significant | Total Market Value | |||||||||||||
Quoted Prices | Observable Inputs | Unobservable Inputs | at 9/30/10 | |||||||||||||
INTERMEDIATE BOND FUND | ||||||||||||||||
INVESTMENTS IN SECURITIES: | ||||||||||||||||
ASSETS (Market Value): | ||||||||||||||||
Short-Term Investments (a) | $ | 1,299,340 | — | — | $ | 1,299,340 | ||||||||||
Corporate Bonds | — | $ | 7,138,236 | — | 7,138,236 | |||||||||||
U.S. Government Agency Obligations | — | 5,281,545 | — | 5,281,545 | ||||||||||||
U.S. Government Obligations | — | 6,198,870 | — | 6,198,870 | ||||||||||||
TOTAL INVESTMENTS IN SECURITIES – ASSETS | $ | 1,299,340 | $ | 18,618,651 | — | $ | 19,917,991 | |||||||||
(a) | Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings. |
The Funds did not have significant transfers between Level 1 and Level 2 during the year ended September 30, 2010.
There were no Level 3 investments held at September 30, 2010 or September 30, 2009 for SmallCap Equity Fund, Income Fund, Equity Fund, Balanced Fund, and Intermediate Bond Fund.
The following table reconciles Level 3 investments for which significant unobservable inputs were used to determine fair value:
Net change | ||||||||||||||||||||||||||||||||||||
in unrealized | ||||||||||||||||||||||||||||||||||||
appreciation/ | ||||||||||||||||||||||||||||||||||||
depreciation | ||||||||||||||||||||||||||||||||||||
Change in | during the | |||||||||||||||||||||||||||||||||||
Balance | Accrued | Realized | unrealized | Net | Transfers | Transfers | Balance | period on Level 3 | ||||||||||||||||||||||||||||
as of | discounts/ | gain/ | appreciation/ | purchases/ | into | out of | as of | investments held | ||||||||||||||||||||||||||||
MIGHTY MITESSM FUND | 9/30/09 | (premiums) | (loss) | depreciation† | (sales) | Level 3†† | Level 3†† | 9/30/10 | at 9/30/10† | |||||||||||||||||||||||||||
INVESTMENTS IN SECURITIES: | ||||||||||||||||||||||||||||||||||||
ASSETS (Market Value): | ||||||||||||||||||||||||||||||||||||
Common Stocks: | ||||||||||||||||||||||||||||||||||||
Broadcasting | $ | 0 | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | 1 | $ | 1 | ||||||||||||||||||
Business Services | 0 | — | — | — | — | — | — | 0 | — | |||||||||||||||||||||||||||
Cable | 0 | — | — | — | — | — | — | 0 | — | |||||||||||||||||||||||||||
Computer Software and Services | 25,500 | — | 72,254 | (14,284 | ) | (83,470 | ) | — | — | — | — | |||||||||||||||||||||||||
Educational Services | — | — | — | — | 0 | — | — | 0 | — | |||||||||||||||||||||||||||
Energy and Utilities: Natural Gas | 1,872 | — | 0 | (1,872 | ) | (0 | ) | — | — | — | — | |||||||||||||||||||||||||
Entertainment | 60,790 | — | — | 21,302 | — | — | — | 82,092 | 21,302 | |||||||||||||||||||||||||||
Equipment and Supplies | 0 | — | (1,645 | ) | 1,645 | (0 | ) | — | — | — | — | |||||||||||||||||||||||||
Food and Beverage | 0 | — | (18,046 | ) | 18,046 | (0 | ) | — | — | — | — | |||||||||||||||||||||||||
Health Care | 12,280 | — | — | — | — | — | — | 12,280 | — | |||||||||||||||||||||||||||
Real Estate | 7,970 | — | — | (6,557 | ) | — | — | — | 1,413 | (6,557 | ) | |||||||||||||||||||||||||
Telecommunications | — | — | — | (10 | ) | — | 20 | — | 10 | (10 | ) | |||||||||||||||||||||||||
Total Common Stocks | 108,412 | — | 52,563 | 18,271 | (83,470 | ) | 20 | — | 95,796 | 14,736 | ||||||||||||||||||||||||||
Convertible Preferred Stocks: | ||||||||||||||||||||||||||||||||||||
Business Services | 0 | — | (13,849 | ) | 13,849 | (0 | ) | — | — | — | — | |||||||||||||||||||||||||
Warrants: | ||||||||||||||||||||||||||||||||||||
Broadcasting | 1 | — | — | — | — | — | (1 | ) | — | — | ||||||||||||||||||||||||||
TOTAL INVESTMENTS IN SECURITIES | $ | 108,413 | $ | — | $ | 38,714 | $ | 32,120 | $ | (83,470 | ) | $ | 20 | $ | (1 | ) | $ | 95,796 | $ | 14,736 | ||||||||||||||||
† | Net change in unrealized appreciation/depreciation on investments is included in the related amounts in the Statement of Operations. | |
†† | The Fund’s policy is to recognize transfers into and transfers out of Level 3 as of the beginning of the reporting period. |
In January 2010, the Financial Accounting Standards Board (“FASB”) issued amended guidance to improve disclosure about fair value measurements which requires additional disclosures about transfers between Levels 1 and 2 and separate disclosures about purchases, sales, issuances, and settlements in the reconciliation of fair value measurements using significant unobservable inputs (Level 3). FASB also clarified existing disclosure requirements relating to the levels of disaggregation of fair value measurement and inputs and valuation techniques used to measure fair value. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2009 and interim periods within those fiscal years. Management has adopted the amended guidance and determined that there was no material impact to the Funds’ financial statements except for additional disclosures made in the notes. Disclosures about purchases, sales, issuances, and settlements in the rollforward of activity in Level 3 fair value measurements are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years. Management is currently evaluating the impact of the additional disclosure requirements on the Funds’ financial statements.
40
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
Notes to Financial Statements (Continued)
Securities Sold Short. The Mighty MitesSM Fund may enter into short sale transactions. Short selling involves selling securities that may or may not be owned and, at times, borrowing the same securities for delivery to the purchaser, with an obligation to replace such borrowed securities at a later date. The proceeds received from short sales are recorded as liabilities and the Mighty MitesSM Fund records an unrealized gain or loss to the extent of the difference between the proceeds received and the value of an open short position on the day of determination. The Mighty MitesSM Fund records a realized gain or loss when the short position is closed out. By entering into a short sale, the Mighty MitesSM Fund bears the market risk of an unfavorable change in the price of the security sold short. Dividends on short sales are recorded as an expense by the Mighty MitesSM Fund on the ex-dividend date and interest expense is recorded on the accrual basis. The Mighty MitesSM Fund did not hold any short positions as of September 30, 2010.
Foreign Currency Translations. The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at the current exchange rates. 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 that 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 Funds and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gain/loss on investments.
Foreign Securities. The Funds 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 inability 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.
Foreign Taxes. The Funds may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and recoveries as applicable, based upon their current interpretation of tax rules and regulations that exist in the markets in which they invest.
Restricted and Illiquid Securities. Each Fund may invest up to 10% (except for the Mighty MitesSM Fund, SmallCap Equity Fund, and Income Fund which may invest up to 15%) of its net assets in securities for which the markets are illiquid. Illiquid securities include securities the disposition of which is subject to substantial legal or contractual restrictions. The sale of illiquid securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. For the restricted and illiquid securities the Mighty MitesSM Fund held as of September 30, 2010, refer to its Schedule of Investments.
Investments in other Investment Companies. All Funds may invest, from time to time, in shares of other investment companies (or entities that would be considered investment companies but are excluded from the definition pursuant to certain exceptions under the 1940 Act) (the “Acquired Funds”) in accordance with the 1940 Act and related rules. Shareholders in these Funds would bear the pro rata portion of the periodic expenses of the Acquired Funds in addition to the Fund’s expenses. For the year ended September 30, 2010, the Mighty MitesSM Fund’s, Balanced Fund’s, and Intermediate Bond Fund’s pro rata portion of the periodic expenses charged by the Acquired Funds was 1, 1, and 2 basis points, respectively. For the year ended September 30, 2010, the Equity Fund’s pro rata portion of the periodic expenses charged by the Acquired Funds was less than 1 basis point. During the year ended September 30, 2010, the Income Fund and SmallCap Equity Fund had no investments in other investment companies.
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 on the accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method. Dividend income is recorded on the ex-dividend date except for certain dividends which are recorded as soon as the Funds are informed of the dividend.
41
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
Notes to Financial Statements (Continued)
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 (“NAV”) 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 upon the proportion of net assets of each class at the beginning of each day. Distribution expenses are borne solely by the class incurring the expense.
Custodian Fee Credits and Interest Expense. When cash balances are maintained in a Fund’s custody account, the Fund receives credits which are used to offset custodian fees. The gross expenses paid under each custody arrangement are included in custodian fees in the Statements of Operations with the corresponding expense offset, if any, shown as “custodian fee credits.” When cash balances are overdrawn, a Fund is charged an overdraft fee equal to 90% of the current Treasury Bill rate on outstanding balances. This amount, if any, would be included in “interest expense” in the Statements of Operations.
Currently included in the Statements of Operations as of September 30, 2010 are interest expense and custodian fee expense that were paid for by prior year custodian fee credits as follows:
Mighty | SmallCap | Intermediate | ||||||||||||||||||||||
MitesSM | Equity | Income | Equity | Balanced | Bond | |||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||
Expenses paid for by prior year custodian fee credits: | ||||||||||||||||||||||||
Interest expense | $ | — | $ | — | $ | — | $ | (1,854 | ) | — | — | |||||||||||||
Custodian fee expense | — | — | — | (29,432 | ) | $ | (25,357 | ) | $ | (3,693 | ) |
Distributions to Shareholders. Distributions from net investment income are declared and paid annually for the Mighty MitesSM Fund, SmallCap Equity Fund, and Equity Fund, and quarterly for the Income Fund and Balanced Fund. The Intermediate Bond Fund declares dividends daily and pays those dividends monthly. Distributions of net realized gain on investments are normally declared and paid at least annually by each Fund. Distributions to shareholders are recorded on the ex-dividend date. Distributions to shareholders are based on income and capital gains as determined in accordance with federal income tax regulations, which may differ from income and capital gains as determined under GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities and foreign currency transactions held by the Funds, timing differences, and differing characterizations of distributions made by the Funds. Distributions from net investment income for federal income tax purposes include net realized gains on foreign currency transactions. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, adjustments are made to the appropriate capital accounts in the period when the differences arise. Permanent differences were primarily due to the tax treatment of currency gains and losses, reclassifications of capital gains on investments in passive foreign investment companies (Mighty MitesSM Fund), a write-off of the current year net operating loss, expired capital loss carryforwards (SmallCap Equity Fund), adjustments on investments in Treasury Inflation Protected Securities (Balanced Fund), and reclasses of litigation income from prior year (Intermediate Bond Fund). These reclassifications have no impact on the NAV of the Funds. For the year ended September 30, 2010, the following reclassifications were made to increase/decrease such amounts with offsetting adjustments to paid-in capital.
Accumulated Undistributed | Accumulated Net Realized | |||||||||||
Net Investment Income (Loss) | Gain (Loss) on Investments | Paid-in Capital | ||||||||||
Mighty MitesSM Fund | $ | (521,468 | ) | $ | (40,229 | ) | $ | 561,697 | ||||
SmallCap Equity Fund | 113,608 | 1,833,948 | (1,947,556 | ) | ||||||||
Income Fund | — | — | — | |||||||||
Equity Fund | — | — | — | |||||||||
Balanced Fund | 273 | (273 | ) | — | ||||||||
Intermediate Bond Fund | 1,243 | (1,243 | ) | — |
42
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
Notes to Financial Statements (Continued)
The tax character of distributions paid during the years ended September 30, 2010 and September 30, 2009 was as follows:
Year Ended September 30, | Year Ended September 30, | Year Ended September 30, | ||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Mighty MitesSM Fund | SmallCap Equity Fund | Income Fund | ||||||||||||||||||||||
Distributions paid from: | ||||||||||||||||||||||||
Ordinary Income | ||||||||||||||||||||||||
(inclusive of short-term capital gains) | $ | 48,672 | $ | 197,333 | $ | — | $ | — | $ | 80,504 | $ | 149,974 | ||||||||||||
Net long-term capital gains | — | 1,415,526 | — | — | — | — | ||||||||||||||||||
Return of capital | — | 105,275 | — | — | — | 17,410 | ||||||||||||||||||
Total distributions paid | $ | 48,672 | $ | 1,718,134 | $ | — | $ | — | $ | 80,504 | $ | 167,384 | ||||||||||||
Equity Fund | Balanced Fund | Intermediate Bond Fund | ||||||||||||||||||||||
Distributions paid from: | ||||||||||||||||||||||||
Ordinary Income | $ | 1,229,224 | $ | 1,681,453 | $ | 1,819,630 | $ | 2,402,273 | $ | 398,653 | $ | 344,690 | ||||||||||||
Net long-term capital gains | — | — | — | 739,304 | 113,280 | 6,563 | ||||||||||||||||||
Total distributions paid | $ | 1,229,224 | $ | 1,681,453 | $ | 1,819,630 | $ | 3,141,577 | $ | 511,933 | $ | 351,253 | ||||||||||||
Provision for Income Taxes. The Funds intend to continue to qualify as regulated investment companies under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). It is the policy of the Funds to comply with the requirements of the Code applicable to regulated investment companies and to distribute substantially all of the Funds’ net investment company taxable income and net capital gains. Therefore, no provision for federal income taxes is required.
At September 30, 2010, the components of accumulated earnings/losses on a tax basis were as follows:
Mighty | SmallCap | Intermediate | ||||||||||||||||||||||
MitesSM | Equity | Income | Equity | Balanced | Bond | |||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||
Undistributed ordinary income (inclusive of short-term capital gains) | $ | 7,833,558 | — | $ | 6,683 | $ | 421,789 | $ | 9,610 | $ | 14,290 | |||||||||||||
Undistributed long-term capital gain | 3,266,809 | — | — | — | — | 31,184 | ||||||||||||||||||
Accumulated capital loss carryforward | — | $ | (5,431,359 | ) | (2,598,244 | ) | (33,088,077 | ) | (16,647,270 | ) | — | |||||||||||||
Unrealized appreciation/depreciation | 60,698,205 | 1,806,235 | (144,105 | ) | 9,484,424 | 11,065,264 | 1,334,258 | |||||||||||||||||
Post-October losses | — | (8 | ) | (95,748 | ) | — | — | — | ||||||||||||||||
Other temporary differences* | (2,559 | ) | — | (6,690 | ) | — | — | (9,385 | ) | |||||||||||||||
Total accumulated earnings | $ | 71,796,013 | $ | (3,625,132 | ) | $ | (2,838,104 | ) | $ | (23,181,864 | ) | $ | (5,572,396 | ) | $ | 1,370,347 | ||||||||
* | Other temporary differences are primarily due to income and currency adjustments on investments in passive foreign investment companies (Mighty MitesSM Fund), income from investments in hybrid securities (Income Fund), and current year dividend payables (Intermediate Bond Fund). |
The following summarizes capital loss carryforwards and expiration dates for each Fund at September 30, 2010:
Mighty | SmallCap | Intermediate | ||||||||||||||||||||||
MitesSM | Equity | Income | Equity | Balanced | Bond | |||||||||||||||||||
Expiring in Fiscal Year | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||
2011 | — | $ | 4,845,486 | — | — | — | — | |||||||||||||||||
2012 | — | — | — | — | — | — | ||||||||||||||||||
2013 | — | — | — | — | — | — | ||||||||||||||||||
2014 | — | — | — | — | — | — | ||||||||||||||||||
2015 | — | — | — | — | — | — | ||||||||||||||||||
2016 | — | 210 | — | — | — | — | ||||||||||||||||||
2017 | — | 585,663 | $ | 1,094,920 | $ | 4,107,080 | $ | 2,011,631 | — | |||||||||||||||
2018 | — | — | 1,503,324 | 28,980,997 | 14,635,639 | — |
These capital loss carryforwards are available to reduce future required distributions of net capital gains to shareholders.
During the year ended September 30, 2010, the SmallCap Equity Fund utilized capital loss carryforwards of $135,125, and $1,835,749 of capital loss carryforwards expired.
Under the current tax law, capital losses related to securities realized after October 31 and prior to the Funds’ fiscal year end may be treated as occurring on the first day of the following year. For the year ended September 30, 2010, the Income Fund deferred capital losses of $95,748 and the SmallCap Equity Fund deferred currency losses of $8.
At September 30, 2010, the differences between book basis and tax basis unrealized appreciation/depreciation were primarily due to deferral of losses from wash sales for tax purposes and (Mighty MitesSM Fund, SmallCap Equity Fund, Income Fund, Equity Fund, and Balanced Fund), mark-to-market adjustments on investments in passive foreign investment companies (Mighty MitesSM Fund and SmallCap Equity Fund), and basis adjustments on investments in partnerships (Mighty MitesSM Fund).
43
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
Notes to Financial Statements (Continued)
The following summarizes the tax cost of investments and the related net unrealized appreciation/depreciation at September 30, 2010:
Mighty | SmallCap | Intermediate | ||||||||||||||||||||||
MitesSM | Equity | Income | Equity | Balanced | Bond | |||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||
Aggregate cost of investments | $ | 311,628,422 | $ | 14,099,553 | $ | 5,454,930 | $ | 99,117,488 | $ | 107,446,982 | $ | 18,583,733 | ||||||||||||
Gross unrealized appreciation | $ | 76,872,583 | $ | 2,888,135 | $ | 368,123 | $ | 12,838,547 | $ | 13,287,693 | $ | 1,334,258 | ||||||||||||
Gross unrealized depreciation | (16,174,488 | ) | (1,081,900 | ) | (512,228 | ) | (3,354,123 | ) | (2,222,429 | ) | — | |||||||||||||
Net unrealized appreciation/depreciation | $ | 60,698,095 | $ | 1,806,235 | $ | (144,105 | ) | $ | 9,484,424 | $ | 11,065,264 | $ | 1,334,258 | |||||||||||
The Funds are required to evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Funds as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. For the year ended September 30, 2010, the Funds did not incur any income tax, interest, or penalties. As of September 30, 2010, the Adviser has reviewed all open tax years and concluded that there was no impact to the Funds’ net assets or results of operations. Tax years ended September 30, 2007 through September 30, 2010 remain subject to examination by the Internal Revenue Service and state taxing authorities. On an ongoing basis, the Adviser will monitor the Funds’ tax positions to determine if adjustments to this conclusion are necessary.
3. Investment Advisory Agreements and Other Transactions. The Funds have entered into investment advisory agreements (the “Advisory Agreements”) with the Adviser which provide that the Funds will pay the Adviser a fee, computed daily and paid monthly, at the annual rate of 1.00% for the Mighty MitesSM Fund, SmallCap Equity Fund, Income Fund, and Equity Fund, 0.75% for the Balanced Fund, and 0.60% for the Intermediate Bond Fund, of the value of the Fund’s average daily net assets. In accordance with the Advisory Agreements, the Adviser provides a continuous investment program for the Funds’ portfolios, oversees the administration of all aspects of the Funds’ business and affairs, and pays the compensation of all Officers and Trustees of the Funds who are affiliated persons of the Adviser.
The Adviser has contractually agreed to waive investment advisory fees and/or to reimburse expenses to the SmallCap Equity Fund, Income Fund, and Intermediate Bond Fund, in the event annual expenses of such Funds exceed certain prescribed limits. Such fee waiver/reimbursement arrangement continues until at least January 31, 2011. For the year ended September 30, 2010, the Adviser waived fees or reimbursed expenses in the amounts of $70,274, $87,278, and $81,582 for the SmallCap Equity Fund, Income Fund, and Intermediate Bond Fund, respectively. In addition, the SmallCap Equity Fund, Income Fund, and Intermediate Bond Fund are obliged to repay the Adviser for a period of two fiscal years following the fiscal year in which the Adviser reimbursed the Funds only to the extent that the operating expenses of the Funds fall below the applicable expense limitation for Class AAA of 1.50%, 1.50%, and 1.00%, respectively, and for Class A of 1.75%, 1.75%, and 1.10%, respectively, and for Class B (for the SmallCap Equity and Intermediate Bond Funds only) and Class C of 2.25%, 2.25%, and 1.75%, respectively, and for Class I of 1.25%, 1.25%, and 0.75%, respectively, of average daily net assets, the annual limitation under the Advisory Agreements. As of September 30, 2010, the cumulative unreimbursed amounts which may be recovered by the Adviser within the next two fiscal years are $169,043, $163,095, and $157,984 for the SmallCap Equity, Income, and Intermediate Bond Funds, respectively.
Recoverable by Fiscal | Recoverable by Fiscal | |||||||||||
Year End 2011 | Year End 2012 | Total | ||||||||||
SmallCap Equity Fund | $ | 98,769 | $ | 70,274 | $ | 169,043 | ||||||
Income Fund | 75,817 | 87,278 | 163,095 | |||||||||
Intermediate Bond Fund | 76,402 | 81,582 | 157,984 |
The Adviser has a Subadvisory Agreement with Westwood Management Corp. (the “Subadvisor”) for the Equity Fund, Balanced Fund, and Intermediate Bond Fund. The Adviser paid the Subadvisor out of its advisory fees with respect to these three Funds a fee computed daily and payable monthly, in an amount equal on an annualized basis to the greater of (i) $150,000 per year on an aggregate basis for all applicable Funds or (ii) 35% of the net revenues to the Adviser from the applicable Funds.
The Trust pays each Trustee who is not considered an affiliated person an annual retainer of $3,000 plus $500 for each Board meeting attended and they are reimbursed by the Trust for any out of pocket expenses incurred in attending meetings, all apportioned among the Funds. All Board committee members receive $500 per meeting attended and the Chairman of the Audit Committee and the Lead Trustee each receive a $1,000 annual fee. A Trustee may receive a single meeting fee,
44
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
Notes to Financial Statements (Continued)
allocated among the participating funds, for participation in certain meetings held on behalf of multiple funds. Trustees who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Trust.
There was a reduction in the advisory fee paid to the Adviser relating to certain portfolio holdings, i.e., unsupervised assets, of the Funds with respect to which the Adviser has transferred dispositive and voting control to the Funds’ Proxy Voting Committee. During the year ended September 30, 2010, the Mighty MitesSM Fund’s Proxy Voting Committee exercised control and discretion over all rights to vote or consent with respect to such securities and the Adviser reduced its fee with respect to such securities by $69,645.
4. Distribution Plan. The Trust’s Board has adopted a distribution plan (the “Plan”) for each class of shares, except Class I Shares, pursuant to Rule 12b-1 under the 1940 Act. Gabelli & Company, Inc. (“Gabelli & Co.”), an affiliate of the Adviser, serves as Distributor of the Funds. Under the Class AAA, Class A, Class B, and Class C Share Plans, payments are authorized to Gabelli & Co. at annual rates of 0.25%, 0.50% (for the Intermediate Bond Fund’s Class A Shares at an annual rate of 0.35%), 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 sales of securities for the year ended September 30, 2010, other than short-term securities, are as follows:
Purchases | Sales | Purchases | Sales | |||||||||||||
(excluding U.S. | (excluding U.S. | of U.S. | of U.S. | |||||||||||||
Government | Government | Government | Government | |||||||||||||
Securities) | Securities) | Securities | Securities | |||||||||||||
Mighty MitesSM Fund | $ | 159,011,351 | $ | 54,243,336 | — | — | ||||||||||
SmallCap Equity Fund | 5,857,769 | 3,828,724 | — | — | ||||||||||||
Income Fund | 482,658 | 1,036,255 | — | — | ||||||||||||
Equity Fund | 64,833,822 | 104,784,904 | — | — | ||||||||||||
Balanced Fund | 37,931,913 | 50,124,910 | $ | 2,703,543 | $ | 11,504,699 | ||||||||||
Intermediate Bond Fund | 1,819,333 | 541,210 | 2,782,992 | 1,715,402 |
6. Transactions with Affiliates. During the year ended September 30, 2010, the Mighty MitesSM Fund, and the Income Fund paid brokerage commissions on security trades of $199,588 and $1,400, respectively, to Gabelli & Co. Additionally, Gabelli & Co. informed the Trust that it retained $61,195 from investors representing commissions (sales charges and underwriting fees) on sales and redemptions of Fund shares.
The cost of calculating each Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement between each Fund and the Adviser. During the year ended September 30, 2010, the Mighty MitesSM Fund, Equity Fund, and Balanced Fund each paid or accrued $45,000 to the Adviser in connection with the cost of computing these Funds’ NAVs. This expense was not charged during the year ended September 30, 2010 for the SmallCap Equity Fund, Income Fund, and Intermediate Bond Fund.
7. Shares of Beneficial Interest. The Funds, except for the Income Fund that no longer offers Class B Shares, offer five classes of shares — Class AAA Shares, Class A Shares, Class B Shares, Class C Shares, and Class I Shares. Class AAA Shares are offered without a sales charge only to investors who acquire them directly from Gabelli & Co., through selected broker/dealers, or the transfer agent. Class I Shares are offered through Gabelli & Co. and selected broker/dealers to foundations, endowments, institutions, and employee benefit plans without a sales charge. Class A Shares are subject to a maximum front-end sales charge of 4.00%. Class B Shares are subject to a contingent deferred sales charge (“CDSC”) upon redemption within six years of purchase and automatically convert to Class A Shares approximately eight years after the original purchase. The applicable Class B CDSC is equal to a percentage declining from 5% of the lesser of the NAV 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 1.00% CDSC for one year after purchase. Class B Shares are available only through exchange of Class B Shares of other funds distributed by Gabelli & Co. Income Fund’s Class B Shares were fully redeemed on December 1, 2009.
The Mighty MitesSM Fund, and, since January 28, 2010, the SmallCap Equity Fund and Income Fund impose a redemption fee of 2.00% on all classes of shares that are redeemed or exchanged on or before the seventh 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 respective Fund. The redemption fees retained by the Mighty MitesSM Fund during the years ended September 30, 2010 and September 30, 2009 amounted to $689 and $1,613, respectively. Redemption fees retained by the SmallCap Equity Fund and Income Fund between January 28, 2010 and September 30, 2010 were $1,751 and $0, respectively. The redemption fee does not apply to redemptions of shares where (i) the shares were purchased through automatic reinvestment of distributions, (ii) the redemption was initiated by the Fund, (iii) the shares were purchased
45
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
Notes to Financial Statements (Continued)
through programs that collect the redemption fee at the program level and remit them to the Fund, or (iv) the shares were purchased through programs that the Adviser determines to have appropriate anti-short-term trading policies in place or as to which the Adviser has received assurances that look-through redemption fee procedures or effective anti-short-term trading policies and procedures are in place.
Transactions in shares of beneficial interest were as follows:
Year Ended September 30, | Year Ended September 30, | Year Ended September 30, | ||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Mighty MitesSM Fund | SmallCap Equity Fund | Income Fund | ||||||||||||||||||||||
Class AAA | ||||||||||||||||||||||||
Shares issued in connection with the Reorganization (see Note 9) | — | 4,198,136 | — | — | — | — | ||||||||||||||||||
Shares sold | 8,736,054 | 7,785,753 | 232,247 | 291,836 | 61,267 | 73,786 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 2,532 | 114,319 | — | — | 9,616 | 25,741 | ||||||||||||||||||
Shares redeemed | (4,793,343 | ) | (3,642,911 | ) | (214,599 | ) | (236,421 | ) | (129,829 | ) | (328,356 | ) | ||||||||||||
Net increase/(decrease) in Class AAA Shares | 3,945,243 | 8,455,297 | 17,648 | 55,415 | (58,946 | ) | (228,829 | ) | ||||||||||||||||
Class A | ||||||||||||||||||||||||
Shares sold | 2,583,100 | 1,096,555 | 91,708 | 188,907 | 39,505 | 11,452 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 298 | 13,791 | — | — | 378 | 280 | ||||||||||||||||||
Shares redeemed | (686,314 | ) | (357,199 | ) | (17,281 | ) | (56,260 | ) | (6,795 | ) | (7,384 | ) | ||||||||||||
Net increase in Class A Shares | 1,897,084 | 753,147 | 74,427 | 132,647 | 33,088 | 4,348 | ||||||||||||||||||
Class B* | ||||||||||||||||||||||||
Shares sold | — | — | 133 | — | — | — | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 2 | 394 | — | — | — | — | ||||||||||||||||||
Shares redeemed | (3,880 | ) | (4,624 | ) | (143 | ) | — | (10 | ) | — | ||||||||||||||
Net decrease in Class B Shares | (3,878 | ) | (4,230 | ) | (10 | ) | — | (10 | ) | — | ||||||||||||||
Class C | ||||||||||||||||||||||||
Shares sold | 1,898,393 | 988,773 | 50,161 | 27,074 | 1,464 | 8,822 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 237 | 9,275 | — | — | 63 | 881 | ||||||||||||||||||
Shares redeemed | (213,750 | ) | (285,572 | ) | (8,735 | ) | (12,713 | ) | (23,854 | ) | (12,725 | ) | ||||||||||||
Net increase/(decrease) in Class C Shares | 1,684,880 | 712,476 | 41,426 | 14,361 | (22,327 | ) | (3,022 | ) | ||||||||||||||||
Class I | ||||||||||||||||||||||||
Shares sold | 740,998 | 1,102,323 | 109,191 | 19,535 | 1,883 | 946 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 131 | 1,997 | — | — | 106 | 345 | ||||||||||||||||||
Shares redeemed | (195,587 | ) | (246,385 | ) | (51,916 | ) | (7,039 | ) | (3,172 | ) | (7,880 | ) | ||||||||||||
Net increase/(decrease) in Class I Shares | 545,542 | 857,935 | 57,275 | 12,496 | (1,183 | ) | (6,589 | ) | ||||||||||||||||
Equity Fund | Balanced Fund | Intermediate Bond Fund | ||||||||||||||||||||||
Class AAA | ||||||||||||||||||||||||
Shares sold | 1,629,832 | 6,213,830 | 1,229,228 | 3,966,708 | 408,397 | 495,853 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 137,019 | 214,761 | 162,237 | 305,230 | 28,200 | 20,315 | ||||||||||||||||||
Shares redeemed | (6,668,783 | ) | (7,524,253 | ) | (3,632,606 | ) | (4,679,971 | ) | (216,571 | ) | (273,157 | ) | ||||||||||||
Net increase/(decrease) in Class AAA Shares | (4,901,932 | ) | (1,095,662 | ) | (2,241,141 | ) | (408,033 | ) | 220,026 | 243,011 | ||||||||||||||
Class A | ||||||||||||||||||||||||
Shares sold | 147,529 | 576,810 | 21,197 | 205,597 | 24,621 | 65,718 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 5,445 | 3,019 | 5,985 | 11,556 | 936 | 813 | ||||||||||||||||||
Shares redeemed | (136,675 | ) | (339,586 | ) | (141,135 | ) | (134,455 | ) | (30,124 | ) | (30,392 | ) | ||||||||||||
Net increase/(decrease) in Class A Shares | 16,299 | 240,243 | (113,953 | ) | 82,698 | (4,567 | ) | 36,139 | ||||||||||||||||
Class B | ||||||||||||||||||||||||
Shares sold | — | — | 1,335 | 3,190 | — | 9,510 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 2 | — | 42 | 98 | 104 | 65 | ||||||||||||||||||
Shares redeemed | (11 | ) | (643 | ) | (4,101 | ) | (4,394 | ) | (8,155 | ) | (2,713 | ) | ||||||||||||
Net increase/(decrease) in Class B Shares | (9 | ) | (643 | ) | (2,724 | ) | (1,106 | ) | (8,051 | ) | 6,862 | |||||||||||||
Class C | ||||||||||||||||||||||||
Shares sold | 21,984 | 69,307 | 109,432 | 501,603 | 141,211 | 64,466 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 403 | 502 | 2,454 | 4,285 | 1,543 | 736 | ||||||||||||||||||
Shares redeemed | (38,560 | ) | (9,620 | ) | (124,274 | ) | (139,637 | ) | (44,256 | ) | (58,414 | ) | ||||||||||||
Net increase/(decrease) in Class C Shares | (16,173 | ) | 60,189 | (12,388 | ) | 366,251 | 98,498 | 6,788 | ||||||||||||||||
Class I | ||||||||||||||||||||||||
Shares sold | 78,474 | 24,086 | 89,745 | 18,594 | 12,158 | 16,543 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 955 | 1,329 | 2,755 | 3,883 | 373 | 854 | ||||||||||||||||||
Shares redeemed | (41,387 | ) | (22,407 | ) | (68,243 | ) | (14,400 | ) | (29,971 | ) | (22,963 | ) | ||||||||||||
Net increase/(decrease) in Class I Shares | 38,042 | 3,008 | 24,257 | 8,077 | (17,440 | ) | (5,566 | ) | ||||||||||||||||
* | Income Fund’s Class B Shares were fully redeemed on December 1, 2009. |
46
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
Notes to Financial Statements (Continued)
8. Transactions in Securities of Affiliated Issuers. The 1940 Act defines affiliated issuers as those in which a Fund’s holdings of an issuer represent 5% or more of the outstanding voting securities of the issuer. A summary of the Mighty MitesSM Fund’s transactions in the securities of these issuers during the year ended September 30, 2010 is set forth below:
Percent | ||||||||||||||||||||||||||||||||||||
Net Change | Value at | Owned | ||||||||||||||||||||||||||||||||||
Beginning | Shares | Shares | Ending | Dividend | in Unrealized | Realized | September 30, | of Shares | ||||||||||||||||||||||||||||
Shares | Purchased | Sold | Shares | Income | Appreciation | Gain | 2010 | Outstanding | ||||||||||||||||||||||||||||
Corning Natural Gas Corp.* | 44,500 | 9,371 | (200 | ) | 53,671 | $ | 27,336 | $ | 197,182 | $ | 741 | $ | 1,054,635 | 5.16 | % | |||||||||||||||||||||
Tech/Ops Sevon Inc.* | 70,048 | 182,252 | — | 252,300 | — | 169,634 | — | 1,274,115 | 7.55 | |||||||||||||||||||||||||||
Total | $ | 27,336 | $ | 366,816 | $ | 741 | $ | 2,328,750 | ||||||||||||||||||||||||||||
* | Security was not affiliated at September 30, 2009. |
9. Fund Reorganization. Shareholders of the B.B. Micro-Cap Growth Fund (the “B.B. Fund”) approved an Agreement and Plan of Reorganization and Liquidation (the “Agreement”) between the B.B. Fund and the Mighty MitesSM Fund.
On March 27, 2009, the Mighty MitesSM Fund acquired all of the net assets of the B.B. Fund, pursuant to the Agreement. The acquisition was accomplished by a tax free exchange of 4,198,136.274 Class AAA Shares of the Mighty MitesSM Fund valued at $41,451,718 for the net assets of the B.B. Fund on March 27, 2009. One share of the B.B. Fund was converted into 0.563 share of the Mighty MitesSM Fund. The net assets of the Mighty MitesSM Fund immediately before the acquisition were $70,875,603. The combined net assets after the acquisition as of March 27, 2009 were $112,327,321.
Included in the net assets acquired by the Mighty MitesSM Fund were the following components:
Net Unrealized | ||||||||||||
Paid In Capital | Depreciation | Net Assets | ||||||||||
B.B. Micro-Cap Growth Fund | $ | 46,225,670 | $ | (4,773,952 | ) | $ | 41,451,718 |
10. Indemnifications. The Funds enter into contracts that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts. Management has reviewed the Funds’ existing contracts and expects the risk of loss to be remote.
11. Other Matters. On April 24, 2008, an affiliate of the Adviser, Gabelli Funds, LLC, entered into a settlement with the SEC to resolve an inquiry regarding prior frequent trading activity in shares of the GAMCO Global Growth Fund (the “Global Growth Fund”) by one investor who was banned from the Global Growth Fund in August 2002. In the administrative settlement order, the SEC found that Gabelli Funds, LLC had willfully violated Section 206(2) of the 1940 Act, Section 17(d) of the 1940 Act and Rule 17d-1 thereunder, and had willfully aided and abetted and caused violations of Section 12(d)(1)(B)(i) of the 1940 Act. Under the terms of the settlement, Gabelli Funds, LLC, while neither admitting nor denying the SEC’s findings and allegations, paid $16 million (which included a $5 million civil monetary penalty), approximately $12.8 million of which is in the process of being paid to shareholders of the Global Growth Fund in accordance with a plan developed by an independent distribution consultant and approved by the independent directors of the Global Growth Fund and acceptable to the staff of the SEC, and agreed to cease and desist from future violations of the above referenced federal securities laws and rule. The SEC order also noted the cooperation that Gabelli Funds, LLC had given the staff of the SEC during its inquiry. The settlement did not have a material adverse impact on Gabelli Funds, LLC. On the same day, the SEC filed a civil action against the Executive Vice President and Chief Operating Officer of Gabelli Funds, LLC, alleging violations of certain federal securities laws arising from the same matter. The officer is also an officer of the Funds, the Global Growth Fund, and other funds in the Gabelli/GAMCO fund complex. The officer denied the allegations and is continuing in his positions with Gabelli Funds, LLC, the Adviser, and the Funds. The court dismissed certain claims and found that the SEC was not entitled to pursue various remedies against the officer while leaving one remedy in the event the SEC were able to prove violations of law. The court subsequently dismissed without prejudice the remaining remedy against the officer, which would allow the SEC to appeal the court’s rulings. On October 29, 2010, the SEC filed its appeal with the U.S. Court of Appeals for the Second Circuit regarding the lower court’s orders. Gabelli Funds, LLC currently expects that any resolution of the action against the officer will not have a material adverse impact on Gabelli Funds, LLC or the Adviser.
12. Subsequent Events. Management has evaluated the impact on the Funds of all subsequent events occurring through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.
47
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of
The GAMCO Westwood Funds:
The GAMCO Westwood Funds:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of GAMCO Westwood Mighty MitesSM Fund, GAMCO Westwood SmallCap Equity Fund, GAMCO Westwood Income Fund, GAMCO Westwood Equity Fund, GAMCO Westwood Balanced Fund, and GAMCO Westwood Intermediate Bond Fund (constituting The GAMCO Westwood Funds, hereafter referred to as the “Funds”) at September 30, 2010, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, NY
November 24, 2010
New York, NY
November 24, 2010
48
2010 Tax Notice to Shareholders (Unaudited)
U.S. Government Income: — The percentage of the ordinary income dividend paid by the Mighty MitesSM Fund, Income Fund, Equity Fund, Balanced Fund, and Intermediate Bond Fund (collectively, the “Funds”) during the year ended September 30, 2010 which was derived from U.S. Treasury securities was 0.00%, 0.20%, 0.00%, 10.79%, and 21.07%, respectively. Such income is exempt from state and local tax in all states. However, many states, including New York and California, allow a tax exemption for a portion of the income earned only if a mutual fund has invested at least 50% of its assets at the end of each quarter of the Fund’s fiscal year in U.S. Government securities. The Funds did not meet this strict requirement during the year ended September 30, 2010. Due to the diversity in state and local tax law, it is recommended that you consult your personal tax adviser for the applicability of the information provided as to your specific situation.
Mighty MitesSM Fund — For the year ended September 30, 2010, the Fund paid to shareholders ordinary income dividends (comprised of short-term capital gains) totaling $0.003, $0.003, $0.003, $0.003, and $0.003 per share for Class AAA, Class A, Class B, Class C, and Class I Shares, respectively. For the year ended September 30, 2010, 22.05% of the ordinary income dividend qualifies for the dividends received deductions available to corporations. The Fund designates 28.74% of the ordinary income distribution as qualified dividend income, pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designates 100% of the ordinary income distribution as qualified short-term gain, pursuant to the American Jobs Creation Act of 2004.
Income Fund — For the year ended September 30, 2010, the Fund paid to shareholders ordinary income dividends (comprised of net investment income) totaling $0.117, $0.102, $0.042, and $0.135 per share for Class AAA, Class A, Class C, and Class I Shares, respectively. For the year ended September 30, 2010, 100% of the ordinary income dividends qualifies for the dividends received deductions available to corporations. The Fund designates 100% of the ordinary income distributions as qualified dividend income, pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designates 0.82% of the ordinary income distributions as qualified interest income, pursuant to the American Jobs Creation Act of 2004.
Equity Fund — For the year ended September 30, 2010, the Fund paid to shareholders ordinary income dividends (comprised of net investment income) totaling $0.071, $0.058, $0.021, $0.023, and $0.090 per share for Class AAA, Class A, Class B, Class C, and Class I Shares, respectively. For the year ended September 30, 2010, 100% of the ordinary income dividend qualifies for the dividends received deductions available to corporations. The Fund designates 100% of the ordinary income distribution as qualified dividend income, pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designates 0.69% of the ordinary income distribution as qualified interest income, pursuant to the American Jobs Creation Act of 2004.
Balanced Fund — For the year ended September 30, 2010, the Fund paid to shareholders ordinary income dividends (comprised of net investment income) totaling $0.147, $0.122, $0.072, $0.072, and $0.172 per share for Class AAA, Class A, Class B, Class C, and Class I Shares, respectively. For the year ended September 30, 2010, 85.96% of the ordinary income dividend qualifies for the dividends received deductions available to corporations. The Fund designates 89.27% of the ordinary income distributions as qualified dividend income, pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designates 52.70% of the ordinary income distributions as qualified interest income, pursuant to the American Jobs Creation Act of 2004.
Intermediate Bond Fund — For the year ended September 30, 2010, the Fund paid to shareholders ordinary income dividends (comprised of net investment income) totaling $0.269, $0.258, $0.181, $0.174, and $0.298 per share for Class AAA, Class A, Class B, Class C, and Class I Shares, respectively, and long-term capital gains totaling $113,280. The distributions of long-term capital gains have been designated as a capital gain dividend by the Fund’s Board of Trustees. For the year ended September 30, 2010, the Fund designates 99.99% of the ordinary income distributions as qualified interest income, pursuant to the American Jobs Creation Act of 2004.
All designations are based on financial information available as of the date of this annual report and, accordingly, are subject to change. For each item, it is the intention of the Fund to designate the maximum amount permitted under the Internal Revenue Code and the regulations thereunder. |
49
GAMCO Westwood Funds
Board Consideration and Re-Approval of Investment Advisory and Sub-Advisory Agreements (Unaudited)
In determining whether to approve the continuance of each of the Agreements, the Board considered the following information:
1) The nature, extent, and quality of services provided by the Adviser and the Sub-Adviser.
The Board reviewed in detail the nature and extent of the services provided by the Adviser and the Sub-Adviser under the Agreements and the quality of those services over the past year. The Board noted that these services included managing the investment program of the Funds, including the purchase and sale of portfolio securities, as well as the provision of general corporate services. The Board considered that the Adviser also provided, at its expense, office facilities for use by the Funds and supervisory personnel responsible for supervising the performance of administrative, accounting, and related services including, for each Fund, net asset value determinations, yield calculations, and monitoring to assure compliance with stated investment policies and restrictions under the 1940 Act and related securities regulations. The Board noted that, in addition to managing the investment program for the Funds, the Adviser provided certain non-advisory and compliance services, including services under the Funds’ Rule 38a-1 compliance program.
The Board also considered that the Adviser paid for all compensation of officers and Board Members of the Funds that were affiliated with the Adviser and that the Adviser further provided services to shareholders of the Funds who had invested through various programs offered by third party financial intermediaries (“Participating Organizations”). The Board evaluated these factors based on its direct experience with the Adviser and Sub-Adviser and in consultation with Fund Counsel. The Board noted that the Adviser had engaged, at its expense, the Bank of New York Mellon, to assist it in performing certain of its administrative functions. The Board concluded that the nature and extent of the services provided was reasonable and appropriate in relation to the advisory fee, that the level of services provided by the Adviser, either directly or through the Bank of New York Mellon, and by the Sub-Adviser had not diminished over the past year and that the quality of service continued to be high.
The Board reviewed the personnel responsible for providing services to the Funds and concluded, based on their experience and interaction with the Adviser and Sub-Adviser, that (i) the Adviser and Sub-Adviser were able to retain quality personnel, (ii) the Adviser, Sub-Adviser, and their agents exhibited a high level of diligence and attention to detail in carrying out their advisory and administrative responsibilities under the Agreements, (iii) the Adviser and Sub-Adviser were responsive to requests of the Board, (iv) the scope and depth of the Adviser’s and Sub-Adviser’s resources were adequate, and (v) the Adviser and Sub-Adviser had kept the Board apprised of developments relating to each Fund and the industry in general. The Board also focused on the Adviser’s reputation and long standing relationship with the Funds. The Board also believed that the Adviser had devoted substantial resources and made substantial commitments to address new regulatory compliance requirements applicable to the Funds.
2) The performance of the Funds, the Adviser, and the Sub-Adviser.
The Board reviewed the investment performance of each Fund, on an absolute basis, as compared with its Lipper peer group of other SEC registered funds, and against each Fund’s broad based securities market benchmarks as reflected in each Fund’s prospectuses and annual report. The Board also considered rankings and ratings of the Funds issued by Lipper over the short, intermediate, and long term. The Board considered each Fund’s one, three, five and, where available, ten year average annual total return for the periods ended June 30, 2010, but placed greatest emphasis on a Fund’s longer term performance. The peer groups considered by the Board were developed by Lipper and were comprised of funds of comparable size within the same Lipper peer group category (the “Peer Group”), regardless of asset size or primary channel of distribution. Each Fund’s performance against the performance Peer Group (the “Performance Peer Group”) was considered by the Board as providing an objective comparative benchmark against which each Fund’s performance could be assessed. In general, the Board considered these comparisons helpful in their assessment as to whether the Adviser was obtaining for the Funds’ shareholders the total return performance that was available in the marketplace, given each Fund’s investment objectives, strategies, limitations, and restrictions. In reviewing the Funds’ performance, the Board noted that the Equity Fund’s performance was below the median for the one year and ten year periods and above the median for the three year and five year periods; the Balanced Fund’s performance was below the median for the one year and three year periods and was above the median for the five year and ten year periods; the SmallCap Equity Fund’s performance was above the median for the one year, three year and five year periods and below the median for the ten year period; the Mighty MitesSM Fund’s performance was above the median for the one year, three year, five year and ten year periods; the Income Fund’s performance was below the median for the one year and three year periods; and the Intermediate Bond Fund’s performance was below the median for the one year, three year, five year and ten year periods. The Board also noted that the Income Fund had changed its investment objective in 2005 and therefore only had five years of Peer Group performance data for comparison purposes. The Board Members concluded that the Funds’ performance was reasonable in comparison with that of the Performance Peer Groups.
50
In connection with its assessment of the performance of the Adviser and the Sub-Adviser, the Board considered the Adviser’s and Sub-Adviser’s financial condition and whether they had the resources necessary to continue to carry out their responsibilities under the Agreements. The Board concluded that the Adviser and Sub-Adviser had the financial resources necessary to continue to perform their obligations under the Agreements and to continue to provide the high quality services that they have provided to the Funds to date.
3) The cost of the advisory services and the profits to the Adviser and Sub-Adviser and their affiliates from the relationship with the Funds.
In connection with the Board’s consideration of the cost of the advisory and sub-advisory services and the profits to the Adviser, Sub-Adviser, and their affiliates from their relationships with the Fund, the Board considered a number of factors. First, the Board compared the level of the advisory fee for each Fund against comparative Lipper expense peer groups (“Expense Peer Group”). The Board also considered comparative non-management fee expenses and comparative total fund expenses of the Funds and each Expense Peer Group. The Board considered this information as useful in assessing whether the Adviser and Sub-Adviser were providing services at a cost that was competitive with other similar funds. In assessing this information, the Board considered both the comparative contract rates as well as the level of the advisory fees after waivers and/or reimbursements. The Board noted that the SmallCap Equity Fund, the Income Fund, and the Intermediate Bond Fund operated pursuant to a Waiver and Expense Reimbursement Agreement with the Adviser wherein the Adviser had agreed to waive a portion of its fee or reimburse a Fund for a portion of its expenses necessary to limit the Fund’s total operating expenses to the level set forth in the respective Fund’s prospectus. The Board noted that the advisory fees and expense ratios for the Equity Fund and the Mighty MitesSM Fund were higher than average when compared with those of their Expense Peer Groups. The Board further noted that the advisory fees and expense ratios for the Balanced Fund and the Income Fund were higher and lower than average, respectively, when compared with their Expense Peer Groups. The Board then noted that although the advisory fee for the SmallCap Equity Fund was higher than average when compared with its Expense Peer Group, its expense ratio was on par with the group average. Finally, the Board noted that although the Intermediate Bond Fund’s advisory fee was lower than average, its expense ratio was higher than average when compared with its Expense Peer Group. The Board also reviewed the fees charged by the Adviser and Sub-Adviser to provide similar advisory services to other registered investment companies with similar investment objectives and to separate accounts, noting that in some cases the fees charged by the Adviser or Sub-Adviser were higher and, in other cases lower, than the fees charged to the Funds. In evaluating this information, the Board considered the difference in services provided by the Adviser and Sub-Adviser to these other accounts. In particular, the Board considered the differences in risks involved in managing separate accounts and the Funds from a compliance and regulatory perspective.
The Board also considered an analysis prepared by the Adviser of the estimated profitability to the Adviser of its relationship with the Funds and reviewed with the Adviser its cost allocation methodology in connection with its profitability. In this regard, the Board reviewed Pro-forma Income Statements of the Adviser for the year ended December 31, 2009. The Board considered one analysis for the Adviser as a whole, and a second analysis for the Adviser with respect to each of the Funds. With respect to the Fund analysis, the Board received an analysis based on each Fund’s average net assets during the period as well as a pro-forma analysis of profitability at higher and lower asset levels. The Board concluded that the profitability of the Funds to the Adviser under either analysis was not excessive.
4) The extent to which economies of scale will be realized as the Funds grow and whether fee levels reflect those economies of scale.
With respect to the Board’s consideration of economies of scale, the Board discussed whether economies of scale would be realized by the Funds at higher asset levels. The Board also reviewed data from the Expense Peer Groups to assess whether the Expense Peer Group funds had advisory fee breakpoints and, if so, at what asset levels. The Board also assessed whether certain of the Adviser’s costs would increase if asset levels rise. The Board concluded that under foreseeable conditions, they were unable to assess at this time whether economies of scale would be realized if the Funds were to experience significant asset growth. In the event there was to be significant asset growth in the Funds, the Board determined to reassess whether the advisory fee appropriately took into account any economies of scale that had been realized as a result of that growth.
5) Other Factors.
In addition to the above factors, the Board also discussed other benefits received by the Adviser and Sub-Adviser from their management of the Funds. The Board considered that the Adviser and Sub-Adviser do use soft dollars in connection with their management of the Funds. Based on a consideration of all these factors in their totality, the Board Members, including all of the Independent Board Members, determined that each Fund’s advisory fee and, with respect to the Equity Fund, the Balanced Fund, and the Intermediate Bond Fund, the sub-advisory fee, was fair and reasonable with respect to the quality of services provided and in light of the other factors described above that the Board deemed relevant. Accordingly, the Board Members determined to approve the continuation of each Fund’s Advisory Agreement and, with respect to the Equity Fund, the Balanced Fund, and the Intermediate Bond Fund, the Sub-Advisory agreements. The Board based its decision on evaluations of all these factors as a whole and did not consider any one factor as all important or controlling.
51
GAMCO Westwood Funds
Additional Fund Information (Unaudited)
Additional Fund Information (Unaudited)
The business and affairs of the Trust are managed under the direction of its Board of Trustees. Information pertaining to the Trustees and officers of the Trust is set forth below. The Trust’s Statement of Additional Information includes additional information about the GAMCO Westwood Funds’ Trustees and is available, without charge, upon request, by calling 800-GABELLI (800-422-3554) or by writing to the GAMCO Westwood Funds at One Corporate Center, Rye, NY 10580-1422.
Term of | Number of | |||||||||
Name, Position(s), | Office and | Funds in Fund | ||||||||
Address1 | Length of | Complex Overseen | Principal Occupation(s) | Other Directorships | ||||||
and Age | Time Served2 | by Trustee | During Past Five Years | Held by Trustee3 | ||||||
INDEPENDENT TRUSTEES4: | ||||||||||
Anthony J. Colavita Trustee Age: 74 | Since 1994 | 34 | President of the law firm of Anthony J. Colavita, P.C. | — | ||||||
James P. Conn Trustee Age: 72 | Since 1994 | 18 | Former Managing Director and Chief Investment Officer of Financial Security Assurance Holdings Ltd. (1992-1998) | — | ||||||
Werner J. Roeder, M.D. Trustee Age: 70 | Since 1994 | 22 | Medical Director of Lawrence Hospital and practicing private physician | — | ||||||
Salvatore J. Zizza Trustee Age: 64 | Since 2004 | 28 | Chairman of Zizza & Company, Ltd. (consulting) | Director of Harbor BioSciences, Inc. (biotechnology); Director of Trans-Lux Corporation (business services); Director and Chief Executive Officer of General Employment Enterprises, Inc. (staffing) | ||||||
OFFICERS: | ||||||||||
Bruce N. Alpert President and Secretary Age: 58 | Since 1994 | — | Executive Vice President and Chief Operating Officer of Gabelli Funds, LLC since 1988 and an officer of all of the registered investment companies in the Gabelli/GAMCO Funds complex; Director of Teton Advisors, Inc. since 1998; Chairman of Teton Advisors, Inc. 2008 to 2010; President of Teton Advisors, Inc., 1998 through 2008; Senior Vice President of GAMCO Investors, Inc. since 2008 | — | ||||||
Agnes Mullady Treasurer Age: 52 | Since 2006 | — | Senior Vice President of GAMCO Investors, Inc. since 2009; Vice President of Gabelli Funds, LLC since 2007; Officer of all of the registered investment companies in the Gabelli/GAMCO Funds complex; Senior Vice President of U.S. Trust Company, N.A. and Treasurer and Chief Financial Officer of Excelsior Funds from 2004 through 2005 | — | ||||||
Peter D. Goldstein Chief Compliance Officer Age: 57 | Since 2004 | — | Director of Regulatory Affairs at GAMCO Investors, Inc. since 2004; Chief Compliance Officer of all of the registered investment companies in the Gabelli/GAMCO Funds complex | — |
1 | Address: One Corporate Center, Rye, NY 10580-1422, unless otherwise noted. | |
2 | Each Trustee will hold office for an indefinite term until the earliest of (i) the next meeting of shareholders, if any, called for the purpose of considering the election or re-election of such Trustee and until the election and qualification of his or her successor, if any, elected at such meeting, or (ii) the date a Trustee resigns or retires, or a Trustee is removed by the Board of Trustees or shareholders, in accordance with the Trust’s Amended By-Laws and Amended and Restated Declaration of Trust. Each officer will hold office for an indefinite term until the date he or she resigns or retires or until his or her successor is elected and qualified. | |
3 | This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934 (i.e., public companies) or other investment companies registered under the Investment Company Act of 1940. | |
4 | Trustees who are not interested persons are considered “Independent” Trustees. |
52
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GAMCO Westwood Funds and Your Personal Privacy
Who are we?
The GAMCO Westwood Funds are investment companies registered with the Securities and Exchange Commission under the Investment Company Act of 1940. We are managed by Teton Advisors, Inc., which is an affiliate of GAMCO Investors, Inc., a publicly held company that has subsidiaries that provide investment advisory or brokerage services for a variety of clients. Teton Advisors, Inc. is a publicly held company that provides investment advisory services to the GAMCO Westwood Funds.
What kind of non-public information do we collect about you if you become a shareholder?
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. 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 website, 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.
GABELLI FAMILY OF FUNDS
VALUE
Gabelli Asset Fund
Gabelli Asset Fund
Seeks to invest primarily in a diversified portfolio of common stocks selling at significant discounts to their private market value. The Fund’s primary objective is growth of capital. (Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
Gabelli Blue Chip Value Fund
Seeks long term growth of capital through investment primarily in the common stocks of established companies which are temporarily out of favor. The fund’s objective is to identify a catalyst or sequence of events that will return the company to a higher value. (Multiclass)
Portfolio Manager: Barbara Marcin, CFA
GAMCO Westwood Equity Fund
Seeks to invest primarily in the common stock of well seasoned companies that have recently reported positive earnings surprises and are trading below Westwood’s proprietary growth rate estimates. The Fund’s primary objective is capital appreciation. (Multiclass)
Portfolio Manager: Susan M. Byrne
FOCUSED VALUE
Gabelli Value Fund
Gabelli Value Fund
Seeks to invest in securities of companies believed to be undervalued. The Fund’s primary objective is long-term capital appreciation. (Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
SMALL CAP VALUE
Gabelli Small Cap Fund
Gabelli Small Cap Fund
Seeks to invest primarily in common stock of smaller companies (market capitalizations at the time of investment of $2 billion or less) believed to have rapid revenue and earnings growth potential. The Fund’s primary objective is capital appreciation. (Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
GAMCO Westwood SmallCap Equity Fund
Seeks to invest primarily in smaller capitalization equity securities — market caps of $2.5 billion or less. The Fund’s primary objective is long-term capital appreciation. (Multiclass)
Portfolio Manager: Nicholas F. Galluccio
Gabelli Woodland Small Cap Value Fund
Seeks to invest primarily in the common stocks of smaller companies (market capitalizations generally less than $3.0 billion) believed to be undervalued with shareholder oriented management teams that are employing strategies to grow the company’s value. The Fund’s primary objective is capital appreciation. (Multiclass)
Portfolio Manager: Elizabeth M. Lilly, CFA
GROWTH
GAMCO Growth Fund
GAMCO Growth Fund
Seeks to invest primarily in large cap stocks believed to have favorable, yet undervalued, prospects for earnings growth. The Fund’s primary objective is capital appreciation. (Multiclass)
Portfolio Manager: Howard F. Ward, CFA
GAMCO International Growth Fund
Seeks to invest in the equity securities of foreign issuers with long-term capital appreciation potential. The Fund offers investors global diversification. (Multiclass)
Portfolio Manager: Caesar Bryan
AGGRESSIVE GROWTH
GAMCO Global Growth Fund
GAMCO Global Growth Fund
Seeks capital appreciation through a disciplined investment program focusing on the globalization and interactivity of the world’s marketplace. The Fund invests in companies at the forefront of accelerated growth. The Fund’s primary objective is capital appreciation. (Multiclass)
Team Managed
MICRO-CAP
GAMCO Westwood Mighty MitesSM Fund
GAMCO Westwood Mighty MitesSM Fund
Seeks to invest in micro-cap companies that have market capitalizations of $300 million or less. The Fund’s primary objective is long-term capital appreciation. (Multiclass)
Team Managed
EQUITY INCOME
Gabelli Equity Income Fund
Gabelli Equity Income Fund
Seeks to invest primarily in equity securities with above average market yields. The Fund pays monthly dividends and seeks a high level of total return with an emphasis on income. (Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
GAMCO Westwood Balanced Fund
Seeks to invest in a balanced and diversified portfolio of stocks and bonds. The Fund’s primary objective is both capital appreciation and current income. (Multiclass)
Co-Portfolio Managers: Susan M. Byrne
Mark Freeman, CFA
Mark Freeman, CFA
GAMCO Westwood Income Fund
Seeks to provide a high level of current income as well as long-term capital appreciation by investing in income producing equity and fixed income securities. (Multiclass)
Portfolio Manager: Barbara Marcin, CFA
SPECIALTY EQUITY
GAMCO Global Convertible Securities Fund
GAMCO Global Convertible Securities Fund
Seeks to invest principally in bonds and preferred stocks which are convertible into common stock of foreign and domestic companies. The Fund’s primary objective is total return through a combination of current income and capital appreciation. (Multiclass)
Team Managed
GAMCO Global Opportunity Fund
Seeks to invest in common stock of companies which have rapid growth in revenues and earnings and potential for above average capital appreciation or are undervalued. The Fund’s primary objective is capital appreciation. (Multiclass)
Team Managed
Gabelli SRI Green Fund
Seeks to invest in common and preferred stocks meeting guidelines for social responsibility (avoiding defense contractors and manufacturers of alcohol, abortifacients, gaming, and tobacco products) and sustainability (companies engaged in climate change, energy security and independence, natural resource shortages, organic living, and urbanization). The Fund’s primary objective is capital appreciation. (Multiclass)
Co-Portfolio Managers: Christopher C. Desmarais
John M. Segrich, CFA
John M. Segrich, CFA
SECTOR
GAMCO Global Telecommunications Fund
GAMCO Global Telecommunications Fund
Seeks to invest in telecommunications companies throughout the world — targeting undervalued companies with strong earnings and cash flow dynamics. The Fund’s primary objective is capital appreciation. (Multiclass)
Team Managed
GAMCO Gold Fund
Seeks to invest in a global portfolio of equity securities of gold mining and related companies. The Fund’s objective is long-term capital appreciation. Investment in gold stocks is considered speculative and is affected by a variety of worldwide economic, financial, and political factors. (Multiclass)
Portfolio Manager: Caesar Bryan
Gabelli Utilities Fund
Seeks to provide a high level of total return through a combination of capital appreciation and current income. (Multiclass)
Team Managed
MERGER AND ARBITRAGE
Gabelli ABC Fund
Gabelli ABC Fund
Seeks to invest in securities with attractive opportunities for appreciation or investment income. The Fund’s primary objective is total return in various market conditions without excessive risk of capital loss. (No-load)
Portfolio Manager: Mario J. Gabelli, CFA
Gabelli Enterprise Mergers and Acquisitions Fund
Seeks to invest in securities believed to be likely acquisition targets within 12—18 months or in arbitrage transactions of publicly announced mergers or other corporate reorganizations. The Fund’s primary objective is capital appreciation. (Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
CONTRARIAN
GAMCO Mathers Fund
GAMCO Mathers Fund
Seeks long-term capital appreciation in various market conditions without excessive risk of capital loss. (No-load)
Portfolio Manager: Henry Van der Eb, CFA
Comstock Capital Value Fund
Seeks capital appreciation and current income. The Fund may use either long or short positions to achieve its objective. (Multiclass)
Portfolio Manager: Martin Weiner, CFA
FIXED INCOME
GAMCO Westwood Intermediate Bond Fund
GAMCO Westwood Intermediate Bond Fund
Seeks to invest in a diversified portfolio of bonds with various maturities. The Fund’s primary objective is total return. (Multiclass)
Portfolio Manager: Mark Freeman, CFA
CASH MANAGEMENT-MONEY MARKET
Gabelli U.S. Treasury Money Market Fund
Gabelli U.S. Treasury Money Market Fund
Seeks to invest exclusively in short-term U.S. Treasury securities. The Fund’s primary objective is to provide high current income consistent with the preservation of principal and liquidity. (No-load)
Co-Portfolio Managers: Judith A. Raneri
Ronald S. Eaker
Ronald S. Eaker
An investment in the above Money Market Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
The Funds may invest in foreign securities which involve risks not ordinarily associated with investments in domestic issues, including currency fluctuation, economic, and political risks.
To receive a prospectus, call 800-GABELLI (422-3554). Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus contains more information about this and other matters and should be read carefully before investing.
GAMCO WESTWOOD FUNDS
GAMCO Westwood Mighty MitesSM Fund
GAMCO Westwood SmallCap Equity Fund
GAMCO Westwood Income Fund
GAMCO Westwood Equity Fund
GAMCO Westwood Balanced Fund
GAMCO Westwood Intermediate Bond Fund
GAMCO Westwood SmallCap Equity Fund
GAMCO Westwood Income Fund
GAMCO Westwood Equity Fund
GAMCO Westwood Balanced Fund
GAMCO Westwood Intermediate Bond Fund
One Corporate Center
Rye, New York 10580-1422
General and Account Information:
800-WESTWOOD [800-937-8966]
fax: 914-921-5118
website: www.tetonadv.com
e-mail: info@tetonadv.com
Rye, New York 10580-1422
General and Account Information:
800-WESTWOOD [800-937-8966]
fax: 914-921-5118
website: www.tetonadv.com
e-mail: info@tetonadv.com
Board of Trustees
ANTHONY J. COLAVITA | WERNER J. ROEDER, MD | |
President | Medical Director | |
Anthony J. Colavita, P.C. | Lawrence Hospital | |
JAMES P. CONN | SALVATORE J. ZIZZA | |
Former Chief Investment Officer | Chairman | |
Financial Security Assurance | Zizza & Co., Ltd. | |
Holdings Ltd. | ||
Officers | ||
BRUCE N. ALPERT | PETER D. GOLDSTEIN | |
President and Secretary | Chief Compliance Officer | |
AGNES MULLADY | ||
Treasurer |
Investment Adviser
Teton Advisors, Inc.
Teton Advisors, Inc.
Distributor
Gabelli & Company, Inc.
Gabelli & Company, Inc.
Custodian
The Bank of New York Mellon
The Bank of New York Mellon
Legal Counsel
Paul, Hastings, Janofsky & Walker LLP
Paul, Hastings, Janofsky & Walker LLP
We have separated the portfolio managers’ 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 managers’ commentary is unrestricted. The financial statements and investment portfolio are mailed separately from the commentary. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.tetonadv.com.
This report is submitted for the information of the shareholders of the GAMCO Westwood Funds. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
GABWWQ310AR
Item 2. Code of Ethics.
(a) | The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. | ||
(c) | There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. | ||
(d) | The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions. |
Item 3. Audit Committee Financial Expert.
As of the end of the period covered by the report, the registrant’s board of directors has determined that James P. Conn is qualified to serve as an audit committee financial expert serving on its audit committee and that he is “independent.”
Item 4. Principal Accountant Fees and Services.
Audit Fees
(a) | The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $160,500 in 2009 and $126,704 in 2010. |
Audit-Related Fees
(b) | The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $0 in 2009 and $0 in 2010. |
Tax Fees
(c) | The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $26,000 in 2009 and $22,400 in 2010. Tax fees represent tax compliance services provided in connection with the review of the Registrant’s tax returns. |
All Other Fees
(d) | The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 in 2009 and $0 in 2010. |
(e)(1) | Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. |
Pre-Approval Policies and Procedures. The Audit Committee (“Committee”) of the registrant is responsible for pre-approving (i) all audit and permissible non-audit services to be provided by the independent registered public accounting firm to the registrant and (ii) all permissible non-audit services to be provided by the independent registered public accounting firm to the Adviser, Gabelli Advisers, Inc., and any affiliate of Gabelli Funds, LLC (“Gabelli”) that provides services to the registrant (a “Covered Services Provider”) if the registered public accounting firm’s engagement related directly to the operations and financial reporting of the registrant. The Committee may delegate its responsibility to pre-approve any such audit and permissible non-audit services to the Chairperson of the Committee, and the Chairperson must report to the Committee, at its next regularly scheduled meeting after the Chairperson’s pre-approval of such services, his or her decision(s). The Committee may also establish detailed pre-approval policies and procedures for pre-approval of such services in accordance with applicable laws, including the delegation of some or all of the Committee’s pre-approval responsibilities to the other persons (other than Gabelli or the registrant’s officers). Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the permissible non-audit services were not recognized by the registrant at the time of the engagement to be non-audit services; and (ii) such services are promptly brought to the attention of the Committee and approved by the Committee or Chairperson prior to the completion of the audit.
(e)(2) | The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows: |
(b) N/A
(c) 100%
(d) N/A
(f) | The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was 0%. |
(g) | The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $0 in 2009 and $0 in 2010. | ||
(h) | The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. |
Item 5. Audit Committee of Listed registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). | ||
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
(a)(1) | Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto. | ||
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. | ||
(a)(3) | Not applicable. | ||
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) The GAMCO Westwood Funds
By (Signature and Title)* | /s/ Bruce N. Alpert | ||
Date 12/2/10 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Bruce N. Alpert | ||
Date 12/2/10 | |||
By (Signature and Title)* | /s/ Agnes Mullady | ||
Date 12/2/10 |
* | Print the name and title of each signing officer under his or her signature. |