UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT 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
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
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, 2011
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, 2011
GAMCO WESTWOOD FUNDS
(Unaudited)
Class AAA Shares | Class A Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Annual Returns – September 30, 2011 (a) | Average Annual Returns – September 30, 2011 (a)(b)(e) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 Year | 5 Year | 10 Year | Since | Gross | Current | Maximum | 1 Year | 5 Year | 10 Year | Since | Gross | Current | Maximum | |||||||||||||||||||||||||||||||||||||||||||||
Mighty MitesSM | (3.32 | )% | 4.75 | % | 8.84 | % | 10.11 | % | 1.58 | % | 1.58 | % | None | (7.37 | )% | 3.69 | % | 8.18 | % | 9.59 | % | 1.83 | % | 1.83 | % | 4.00 | % | |||||||||||||||||||||||||||||||
SmallCap Equity | (3.82 | ) | 0.77 | 3.91 | 5.07 | 1.99 | 1.50 | None | (7.86 | ) | (0.29 | ) | 3.31 | 4.65 | 2.24 | 1.75 | 4.00 | |||||||||||||||||||||||||||||||||||||||||
Income | 2.60 | (1.39 | ) | 6.89 | 6.09 | 3.19 | 2.00 | None | (1.80 | ) | (2.45 | ) | 6.18 | 5.58 | 3.44 | 2.25 | 4.00 | |||||||||||||||||||||||||||||||||||||||||
Equity | (3.84 | ) | (2.63 | ) | 3.23 | 8.89 | 1.54 | 1.54 | None | (7.87 | ) | (3.64 | ) | 2.55 | 8.49 | 1.79 | 1.79 | 4.00 | ||||||||||||||||||||||||||||||||||||||||
Balanced | (0.96 | ) | 0.73 | 4.19 | 7.95 | 1.24 | 1.24 | None | (5.12 | ) | (0.36 | ) | 3.52 | 7.47 | 1.49 | 1.49 | 4.00 | |||||||||||||||||||||||||||||||||||||||||
Intermediate Bond | 2.72 | 5.07 | 4.33 | 5.59 | 1.49 | 1.02 | None | (1.52 | ) | 4.13 | 3.81 | 5.32 | 1.59 | 1.12 | 4.00 | |||||||||||||||||||||||||||||||||||||||||||
Class B Shares | Class C Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Annual Returns – September 30, 2011 (a)(c)(e) | Average Annual Returns – September 30, 2011 (a)(d)(e) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 Year | 5 Year | 10 Year | Since | Gross | Current | Maximum | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio | Current Expense Ratio after Adviser Reim burse- ments | Maximum Sales Charge | |||||||||||||||||||||||||||||||||||||||||||||
Mighty MitesSM | (8.91 | )% | 3.61 | % | 8.02 | % | 9.47 | % | 2.33 | % | 2.33 | % | 5.00 | % | (4.96 | )% | 4.01 | % | 8.04 | % | 9.50 | % | 2.33 | % | 2.33 | % | 1.00 | % | ||||||||||||||||||||||||||||||
SmallCap Equity | | Class B Shares have been discontinued. | | (5.45 | ) | 0.03 | 3.07 | 4.48 | 2.74 | 2.25 | 1.00 | |||||||||||||||||||||||||||||||||||||||||||||||
Income | Class B Shares have been discontinued. | 0.78 | (2.14 | ) | 6.24 | 5.63 | 3.94 | 2.75 | 1.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity | | Class B Shares have been discontinued. | | (5.38 | ) | (3.35 | ) | 2.47 | 8.46 | 2.29 | 2.29 | 1.00 | ||||||||||||||||||||||||||||||||||||||||||||||
Balanced | (6.59 | ) | (0.46 | ) | 3.39 | 7.42 | 1.99 | 1.99 | 5.00 | (2.68 | ) | (0.05 | ) | 3.41 | 7.45 | 1.99 | 1.99 | 1.00 | ||||||||||||||||||||||||||||||||||||||||
Intermediate Bond | (3.03 | ) | 3.97 | 3.56 | 5.17 | 2.24 | 1.77 | 5.00 | 0.89 | 4.68 | 3.55 | 5.20 | 2.24 | 1.77 | 1.00 | |||||||||||||||||||||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Annual Returns – September 30, 2011 (a)(e) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio | Current Expense Ratio after Adviser Reimburse- ments | Maximum Sales Charge | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mighty MitesSM | (3.01 | )% | 4.97 | % | 8.95 | % | 10.19 | % | 1.33 | % | 1.33 | % | None | |||||||||||||||||||||||||||||||||||||||||||||
SmallCap Equity | (3.64 | ) | 0.94 | 4.00 | 5.13 | 1.74 | 1.25 | None | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income | 2.85 | (1.21 | ) | 6.99 | 6.16 | 2.94 | 1.75 | None | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | (3.56 | ) | (2.41 | ) | 3.34 | 8.93 | 1.29 | 1.29 | None | |||||||||||||||||||||||||||||||||||||||||||||||||
Balanced | (0.69 | ) | 0.91 | 4.29 | 8.00 | 0.99 | 0.99 | None | ||||||||||||||||||||||||||||||||||||||||||||||||||
Intermediate Bond | 2.97 | 5.25 | 4.42 | 5.64 | 1.24 | 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, 2012 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 these 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) | Assuming payment of the maximum contingent deferred sales charge (CDSC). The maximum CDSC for Class B Shares is 5% and is gradually reduced to 0% after six years. |
(d) | Assuming payment of the 1% maximum CDSC imposed on redemptions made within one year of purchase. |
(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 | — | 11/26/01 | 01/11/08 | |||||||||||||||
Income | 09/30/97 | 5/9/01 | — | 11/26/01 | 01/11/08 | |||||||||||||||
Equity | 01/02/87 | 1/28/94 | — | 2/13/01 | 01/11/08 | |||||||||||||||
Balanced | 10/1/91 | 04/06/93 | 03/27/01 | 09/25/01 | 01/11/08 | |||||||||||||||
Intermediate Bond | 10/1/91 | 07/26/01 | 03/27/01 | 10/22/01 | 01/11/08 |
2
Performance Discussion
Mighty MitesSM Fund
Macroeconomic news this year has been dominated by the “sovereigns” – primarily the governments of the European Union (“EU”), the U.S., and China. The formation of the EU under the Maastricht Treaty of 1992 was an historic step in unifying a continent that had been fragmented since the fall of the Roman Empire, including establishing the criteria for a single currency under the European Monetary Union. The legacy of the treaty – which left members with individual control over fiscal policy but centralized authority over monetary policy – is now in question, as weaker governments lack the exchange rate tools that would allow adjustment to a more competitive footing. European leaders are working to balance the interests of distressed countries such as Greece and Portugal against those of healthier economies such as Germany and Finland within the current framework.
The U.S. faces its own fiscal challenges as $15 trillion of federal debt, nearing 100% of GDP, reaches percentage levels not seen since the end of World War II. Unlike captives of the EU, however, the U.S. can (for a time) improve competitiveness by devaluing the dollar, and possesses the special privilege of repaying its debts in the currency it controls. That did not stop Standard & Poor’s on August 5, 2011 from issuing its first downgrade of U.S. debt, from AAA to AA+, citing the “political brinksmanship” of a summer budget debate that ultimately failed to reduce the country’s long-term debt load.
In our constant search for hidden assets, we continue to examine companies’ earnings and cash flow. We look for companies with excellent growth prospects, new products, entering new markets, and taking market share. We look for companies trading at a discount to their private market value (PMV), the value an informed industrialist would be willing to pay to acquire companies with similar characteristics. In the Russell 2000, 74 companies have been or are in the process of being acquired thus far this year. M&A activity combined with buybacks by small-cap company executives and a lack of initial public offerings (IPOs) should tighten supply of small-caps. We also seek a catalyst: something happening in the company’s industry or business model that will surface value. Examples of such catalysts are a change in management, sale or spin-off of a division, the development of a profitable new business, or changes in government regulations, political climate, or competitive conditions.
Among the better performing stocks for the fiscal year were: Schiff Nutrition International Inc. (1.8% of net assets as of September 30, 2011), Ascent Capital Group Inc. (1.7%), and Continucare Corp. (0.9%). Some of our weaker performing stocks during the year were Materion Corp. (0.7%), Rochester Medical Corp. (0.6%), and Journal Communications Inc. (0.6%).
We appreciate your confidence and trust.
Average Annual Returns Through September 30, 2011 (a) (unaudited) | ||||||||||||||||
1 Year | 5 Year | 10 Year | Since Inception (5/11/98) | |||||||||||||
Mighty MitesSM Fund Class AAA | (3.32 | )% | 4.75 | % | 8.84 | % | 10.11 | % | ||||||||
Russell Microcap™ Index | (4.83 | ) | (4.36 | ) | 5.28 | N.A. | ||||||||||
Russell 2000 Index | (3.53 | ) | (1.02 | ) | 6.12 | 3.61 | ||||||||||
Lipper Small Cap Value Fund Average | (5.23 | ) | (0.99 | ) | 7.57 | 5.52 | (b) | |||||||||
In the current prospectus dated January 31, 2011, the expense ratio for Class AAA Shares is 1.58%. See page 32 for the expense ratios for the year ended September 30, 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 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. 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 these and other matters and should be read carefully before investing. Other share 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. The Russell 2000 Index is an unmanaged indicator which measures the performance of the small-cap segment of the U.S. equity market. The Lipper Small Cap Value Fund Average reflects the average performance of mutual funds classified in this particular category. 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. |
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(b) Lipper Small Cap Value Fund Average since inception performance is as of April 30, 1998. |
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COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
THE MIGHTY MITESSM FUND CLASS AAA, THE RUSSELL 2000 INDEX,
AND THE RUSSELL MICROCAP™ 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 June 30, 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
A moderating economic climate earlier in 2011 gave way to a tumultuous third quarter for the U.S. which began with protracted political wrangling over the U.S. federal debt ceiling, a downgrade of U.S. debt by Standard & Poor’s, followed by disappointing employment numbers. The fiscal year ended in a market sell-off over potential liquidity problems within the European Union (“EU”).
The calm that followed last summer’s attempted solution to sovereign debt and fiscal spending levels in Greece proved to have been only temporary. A contentious Greek debt refinancing and angry public protests, in response to Greek fiscal austerity measures, sparked a broad realization that significantly more aid was needed to stem a budding solvency problem across the entire EU.
These fears were most clearly shown in the movement of the VIX volatility index, which spiked to levels not seen since the crisis of fall 2008. Exhibiting a strong inverse correlation to the VIX, the Russell 2000 Index set new lows for the year as investors abandoned small-cap stocks and fled to defensive sectors such as utilities and consumer staples.
Retail investors have already fled small-caps with negative flows for twenty consecutive weeks totaling $9 billion. Large-caps are attractive with the Standard & Poor’s 500 today selling for 12.1x forward twelve month earnings and a dividend yield of 2.17%. But small-caps have faster rates of earnings growth and the reduction in Wall Street sell-side research coverage, caused by the consolidation in financial services has created natural pricing inefficiencies that have been amplified. The Russell 2000’s forward price earnings ratio, P/E, stands at 12.6x versus its long-term average of 15.4x. The Russell 2000 is trading at 9x EV/EBITDA (enterprise value / earnings before interest and taxes plus depreciation), 20+ percent below its fifteen year long-term average. Its price-to-book comes in at 1.5x, below its average of 2.2x. Currently, about 18% of the Russell 2000’s market cap sits in cash and almost 20% of the universe trades under 3x cash. Given its 25% decline from the recent peak, the small-cap benchmark is already priced for a big decline in growth expectations or even recession.
Deal activity is back, thanks to near record low interest rates. And, unlike prior periods where mega-deals made headlines, the current wave of corporate buyouts is targeting small- to mid-size companies. To give you an idea of the surge in deal activity among small-caps, through the second and third fiscal quarters of the year there were $1.5 trillion of deals globally, up 22% from the same period in 2010, according to Dealogic. And $573 billion of those deals belong to U.S. companies, an increase of 38% from last year. Some 70% of the transactions last year were less than $5 billion, so smaller companies are increasingly becoming acquisition targets.
Among the better performing stocks for the fiscal year were: LeCroy Corp (0.9% of net assets as of September 30, 2011, a niche builder of high end oscilloscopes and protocol analyzers used by design engineers for industrial, optical network, and consumer electronic end markets. Brigham Exploration Co. (0.8%) which explores and develops domestic offshore oil and gas formations utilizing technologically advanced techniques and Vishay Intertechnology Inc. (0.2%), which benefited from firmer pricing and improved operating leverage as the electronic supply chain tightens, were some of the other stocks that performed well during the year.
Some of our weaker performing stocks during the year were: Qlogic Corp. (2.0%), Goodrich Petroleum Corp. (1.3%), and Jones Group, Inc. (0.9%). The Jones Group, Inc. designs and markets branded apparel, dresses, footwear, jeans, sportswear, jewelry, and handbags through department stores and branded specialty retail and outlet stores. Excess inventory and rising cotton prices depressed margins in the quarter, causing the stock to decline.
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, 2011 (a) (unaudited) | ||||||||||||||||
1 Year | 5 Year | 10 Year | Since Inception (4/15/97) | |||||||||||||
SmallCap Equity Fund Class AAA | (3.82 | )% | 0.77 | % | 3.91 | % | 5.07 | % | ||||||||
Russell 2000 Index | (3.53 | ) | (1.02 | ) | 6.12 | 5.86 | ||||||||||
In the current prospectus dated January 31, 2011, the gross expense ratio for Class AAA Shares is 1.99%. The net expense ratio is 1.50%, after contractual reimbursements by Teton Advisors, Inc. (the “Adviser”) in place through January 31, 2012. See page 33 for the expense ratios for the year ended September 30, 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. 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 these and other matters and should be read carefully before investing. Other share 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 indicator which measures the performance of the small-cap segment of the U.S. equity market. 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. |
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COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE SMALLCAP EQUITY FUND
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
This is the eighth consecutive quarter of dividend increases that started in the fourth quarter of 2009, and since that time the total dividends paid by the companies that comprise the S&P 500 Index have increased 22%.
According to long term studies by Ibbotson Associates, since 1926 the S&P 500 Index has risen approximately 9.5% annually with 45% of that return coming from dividends and 55% coming from capital appreciation. This does not take into account the impact of reinvested dividends. If dividends are reinvested year after year, their contribution over time to the total return is higher. This is the power of compounding interest or, in this case, dividends, and makes the case for the long term power of reinvested dividends.
The key to dividend investing is to concentrate on those companies that not only can afford their current payouts, but also will be able to boost these payouts regularly over time.
The dividend is a concrete reflection of the real strength of earnings. It is the compounding effect of these growing dividends, reinvested year after year, that has comprised almost half the long term return on the stock market, and we believe that these dividends are critical to long term future returns.
Among the better performing stocks for the fiscal year were: American Water Works Co. Inc. (3.7% of net assets as of September 30, 2011), Apple Inc. (3.6%), and Mead Johnson Nutrition Co. (3.3%).
Some of our weaker performing stocks during the year were: International Paper Co. (2.2%), General Motors Co. (1.5%), and Citigroup Inc. (1.3%).
We believe that the economic and earnings cycles continue to favor dividend payors and dividend growers over non-dividend stocks, and we shall continue to try to invest in those that offer the best total return. Our objective is to convert the returns from the dividends and appreciation of the companies in the Fund into both a current return and long-term appreciation for our investors.
Average Annual Through September 30, 2011 (a)(c) (unaudited) | ||||||||||||||||
1 Year | 5 Year | 10 Year | Since Inception (9/30/97) | |||||||||||||
Income Fund Class AAA | 2.60 | % | (1.39 | )% | 6.89 | % | 6.09 | % | ||||||||
S&P 500 Index | 1.14 | (1.18 | ) | 2.82 | 3.08 | |||||||||||
Lipper Equity Income Fund Average | 0.27 | (1.64 | ) | 3.24 | 3.21 | |||||||||||
Blended Index (b) | (11.21 | ) | (8.64 | ) | (2.73 | ) | (2.42 | ) | ||||||||
10 Year Treasury Note Index | (23.56 | ) | (16.10 | ) | (8.29 | ) | (7.91 | ) | ||||||||
In the current prospectus dated January 31, 2011, the gross expense ratio for Class AAA is 3.19%. The net expense ratio is 2.00%, after contractual reimbursements by Teton Advisors, Inc. (the “Adviser”) in place through January 31, 2012. See page 34 for the expense ratios for the year ended September 30, 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. 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 these and other matters and should be read carefully before investing. Other share classes are available and have different performance characteristics. See page 2 for performance of other classes of shares. The S&P 500 Index is a market capitalization-weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market. The Lipper Equity Income Fund Average includes the 30 largest equity funds tracked by Lipper, Inc. The 10 Year Treasury Note Index is an unmanaged index tracking U.S. Treasury Notes with a 10 year maturity. Dividends are considered reinvested. You cannot invest directly in an index. |
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(b) The Blended Index consists of a 50% blend of each of the 10 Year Treasury Note Index and the S&P 500 Index. |
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(c) As per the January 31, 2011 prospectus, the Fund’s benchmarks are the S&P 500 Index and the Lipper Equity Income Fund Average. |
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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)
* | 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
As the fiscal year opened, a key factor in the double digit gain of stocks during the fourth quarter of 2010 had been the belief that continued stimulus from the Federal Reserve’s commitment to buy an additional $600 billion in government debt (QE2) would lead to stronger economic growth.
January started 2011 well with strong earnings and economic reports; bond yields moved sharply higher. By month end, however, protests in Egypt helped push stock markets lower and prompted a bid for bonds and a concomitant sharp decline in interest rates. Violence in Libya and crude oil’s price surge kept the pressure on in early February, but corporate earnings reports and improving employment conditions strengthened investor positive sentiment. With Middle East protests and the potential economic impact from the Japanese tsunami weighing on investors, March returns – though positive – lagged those of January and February. The best performing sectors during the first quarter of 2011 were those tied to higher commodity prices and economic optimism; lagging sectors were Financial Services and Consumer Staples, amid investor concern about rising food costs. The flight-to-safety Treasury bid dissipated near the end of March with a steady stream of economic data supporting a U.S. recovery being on track.
The key driver of market performance during the second quarter of 2011 was a significant decline in investor risk appetite. Renewed fears of a Greek debt default, slower economic growth in the U.S. and China, and the impact of Japanese production interruptions all conspired to reduce demand for equities in favor of US Treasury debt. The best performing groups were the traditionally defensive sectors.
Risk tolerance plummeted in the closing quarter of the fiscal year, the third quarter of 2011, as a number of events conspired to reduce investor optimism about future economic growth and confidence in the decision making of politicians in the U.S. and Europe. Volatility-weary investors sold stocks and riskier bonds in favor of US Treasury securities, which – further supported by the Federal Reserve’s announced decision on September 21 to purchase longer-maturity Treasuries – experienced one of their sharpest yield declines in history.
Top contributors to the fund’s performance for the year were Chevron Corp (2.3% of net assets as of September 30, 2011), energy company EQT Corp. (2.0%), and IBM Corp. The major detractors to the fund’s performance were MetLife Inc. (2.1%), General Motors Co. (1.9%), and Newfield Exploration Co. (1.9%).
We appreciate your confidence and trust.
Average Annual Returns through September 30, 2011 (a) (unaudited) | ||||||||||||||||
1 Year | 5 Year | 10 Year | Since Inception (1/2/87) | |||||||||||||
Equity Fund Class AAA | (3.84 | )% | (2.63 | )% | 3.23 | % | 8.89 | % | ||||||||
S&P 500 Index | 1.14 | (1.18 | ) | 2.82 | 8.89 | (b) | ||||||||||
Lipper Large Cap Value Fund Average | 3.66 | 5.78 | 5.22 | 8.05 | (b) | |||||||||||
In the current prospectus dated January 31, 2011, the expense ratio for Class AAA Shares is 1.54%. See page 35 for the expense ratios for the year ended September 30, 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. 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 Fund before investing. The prospectus contains information about these and other matters and should be read carefully before investing. Other share classes are available and have different performance characteristics. See page 2 for performance of other classes of shares. The S&P 500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market. The Lipper Large Cap Value Fund Average reflects the average performance of mutual funds classified in this particular category. Dividends are considered reinvested. You cannot invest directly in an index. |
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(b) S&P 500 Index and the Lipper Large Cap Value Fund Average since inception performance are as of December 31, 1986. |
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COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
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
The Fund is designed to provide exposure to equities while reducing overall risk through investment in short-to-intermediate fixed income securities. The Equity Fund strategy comments also apply to the equity portion of the Balanced Fund.
The bond portion typically invests in high quality notes with lower interest rate sensitivity (and generally a shorter maturity) than the typical bond index, with the objective of dampening the volatility of equity holdings.
Top three contributing fixed income holdings for the fiscal year were intermediate term notes issued by Freddie Mac: 3.75% due 03-27-2019 (1.9% of net assets as of September 30, 2011), Anadarko Petroleum 5.95% due 09-15-2016 (1.3%), and US Treasury 3.625% due 8-15-19 (1.3%). The only securities with negative returns were Bank of America Corp 5.375% due 06-15-14 (1.4%) and Barclays Bank 5.000% due 09-22-16 ( 0.9%).
We appreciate your confidence and trust.
Average Annual Returns through September 30, 2011 (a)(d) (unaudited) | ||||||||||||||||
1 Year | 5 Year | 10 Year | Since Inception (10/1/91) | |||||||||||||
Balanced Fund Class AAA | (0.96 | )% | 0.73 | % | 4.19 | % | 7.95 | % | ||||||||
Barclays Capital Government/Credit Bond Index | 5.14 | 6.52 | 5.74 | 6.78 | (c) | |||||||||||
S&P 500 Index | 1.14 | (1.18 | ) | 2.82 | 7.64 | (c) | ||||||||||
60% S&P 500 Index and 40% Barclays Capital Government/Credit Bond Index (b) | 2.74 | 1.90 | 3.99 | 7.30 | ||||||||||||
Lipper Mixed Asset Target Allocation Moderate Fund Average | (0.33 | ) | 1.15 | 4.03 | 6.72 | (c) | ||||||||||
Barclays Capital Government/Corporate Bond Index | 5.15 | 6.48 | 5.69 | N.A. | ||||||||||||
60% S&P 500 Index and 40% Barclays Capital Government/Corporate Bond Index (e) | 2.74 | 1.88 | 3.97 | 6.50 | ||||||||||||
In the current prospectus dated January 31, 2011, the expense ratio for Class AAA Shares is 1.24%. See page 36 for the expense ratios for the year ended September 30, 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 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. 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 these and other matters and should be read carefully before investing. Other share classes are available and have different performance characteristics. See page 2 for performance of other classes of shares. The S&P 500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market. The Barclays Capital Government/Credit Bond Index and Barclays Capital Government/Corporate Bond Index are market value weighted indices that track the performance of fixed rate, publicly placed, dollar denominated obligations. The Lipper Mixed Asset Target Allocation Moderate Fund Average reflects the average performance of mutual funds classified in this particular category. Dividends are considered reinvested. You cannot invest directly in an index. |
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(b) The Blended Index consists of a 60% blend of each of the S&P 500 Index and 40% Barclays Capital Government/Credit Bond Index. |
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(c) S&P 500 Index, Barclays Capital Government/Credit Bond Index, and the Lipper Mixed Asset Target Allocation Moderate Fund Average since inception performance are as of September 30, 1991. |
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(d) As per the January 31, 2011 prospectus, the Fund’s benchmarks are the 60% S&P 500 and the 40% Barclays Capital Government/Credit Bond Blended Index. |
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(e) The Blended Index consists of a 60% blend of each of the S&P 500 Index and 40% Barclays Capital Government/Corporate Bond Index. |
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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/CREDIT 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 as a whole, Treasury yields declined to 2.92% on the 30 year bond, to 1.93% on the 10 year note, and to 0.97% on the 5 year note, with yields on shorter term notes near 0%, reflecting the flight to quality amid concerns about growth in the developed world as well as in China, and about Euro-area stability. Long maturity bonds (longer than 10 years) are generally the most price sensitive to a decline in yields and therefore trounced the returns of intermediate notes (10 years or shorter) in this plummeting rate environment. Representative long- vs. intermediate-maturity fiscal year returns for the Barclays Capital Government/Credit Bond Index (“Barclays Index”) include: U.S. Treasury 27.5% vs. 6%, U.S. Agency 19% vs. 3%, U.S. Corporate 12% vs. 4%, and for the Barclays Index as a whole 12.7% vs. 3.4%.
The significant flight-to-quality during the last fiscal quarter resulted in higher quality Aaa- and Aa- rated debt outperforming Baa during the period. For the twelve months as a whole, however, yield seeking investors slightly favored Baa-rated debt to A- or better. The Utilities sector led the fiscal year performance of the Barclays Index at 8%, followed by US Treasuries at 6%; Financial Institutions lagged at 1%.
The sectors of the fund that were over weighted with respect to their Barclays Index counterparts, industrial and agency notes, contributed the most to the total return of the fund during the fiscal year. The top contributing segment within all fund sectors continued to be TIPs (US Treasury Inflation-Indexed securities), returning 10.46% for the twelve months. The three top contributing securities were Treasury issues: US Treasury Inflation-Indexed 2.500% due 01-15-29 (2.3% of net assets as of September 30, 2011) was the top contributor, followed by US Treasury 3.375% due 11-15-19 (2.0%) and US Treasury 7.125% due 02-15-23 (1.9%). Notes issued by three financial institutions had the only negative returns for the year: Bank of America 5.375% due 06-15-14 (1.5%), Merrill Lynch 5.000% due 01-15-15 (1.3%), and Barclays Bank 5.000% due 09-22-16 (1.1%).
We appreciate your confidence and trust.
Average Annual Returns through September 30, 2011 (a)(c) (unaudited) | ||||||||||||||||
1 Year | 5 Year | 10 Year | Since Inception (10/1/91) | |||||||||||||
Intermediate Bond Fund Class AAA | 2.72 | % | 5.07 | % | 4.33 | % | 5.59 | % | ||||||||
Barclays Capital Government/Credit Bond Index | 5.14 | 6.52 | 5.74 | 6.78 | (b) | |||||||||||
Lipper Intermediate Investment Grade Debt Fund Average | 3.66 | 5.78 | 5.22 | 6.25 | (b) | |||||||||||
Barclays Capital Government/Corporate Bond Index | 5.15 | 6.48 | 5.69 | N.A. | ||||||||||||
In the current prospectus dated January 31, 2011, the gross expense ratio for AAA Shares is 1.49%. The net expense ratio is 1.02%, after contractual reimbursements by Teton Advisors Inc. (the “Adviser”) in place through January 31, 2012. See page 37 for the expense ratios for the year ended September 30, 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. 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 these and other matters and should be read carefully before investing. Other share classes are available and have different performance characteristics. See page 2 for performance of other classes of shares. The Barclays Capital Government/Credit Bond Index and Barclays Capital Government/Corporate Bond Index are market value weighted indices that track the performance of fixed rate, publicly placed, dollar denominated obligations. The Lipper Intermediate Investment Grade Debt Fund Average reflects the average performance of mutual funds classified in this particular category. Dividends are considered reinvested. You cannot invest directly in an index. |
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(b) The Barclays Capital Government/Credit Bond Index and the Lipper Intermediate Investment Grade Debt Fund Average since inception performance are as of September 30, 1991. |
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(c) As per the January 31, 2011 prospectus, the Fund’s benchmark is the Barclays Capital Government/Credit Bond Index. |
|
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE
INTERMEDIATE BOND FUND CLASS AAA AND
THE BARCLAYS CAPITAL GOVERNMENT/CREDIT 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 Capital 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 Capital Government/Credit Bond Index. |
8
Morningstar® Ratings Based on Risk Adjusted returns as of September 30, 2011. (Unaudited)
Overall Rating | 3 Year Rating | 5 Year Rating | 10 Year Rating | |||||||||||||||
FUND | Morningstar Category | Stars | # of Funds | Stars | # of Funds | Stars | # of Funds | Stars | # of Funds | |||||||||
GAMCO Westwood Mighty Mites AAA | Small Blend | ««««« | 578 | ««««« | 578 | ««««« | 493 | ««««« | 289 | |||||||||
GAMCO Westwood Mighty Mites A | Small Blend | ««««« | 578 | ««««« | 578 | ««««« | 493 | ««««« | 289 | |||||||||
GAMCO Westwood Mighty Mites B | Small Blend | ««««« | 578 | ««««« | 578 | ««««« | 493 | ««««« | 289 | |||||||||
GAMCO Westwood Mighty Mites C | Small Blend | ««««« | 578 | ««««« | 578 | ««««« | 493 | ««««« | 289 | |||||||||
GAMCO Westwood Mighty Mites I | Small Blend | ««««« | 578 | ««««« | 578 | ««««« | 493 | ««««« | 289 | |||||||||
GAMCO Westwood SmallCap Equity AAA | Small Blend | «« | 578 | «« | 578 | ««« | 493 | « | 289 | |||||||||
GAMCO Westwood SmallCap Equity A | Small Blend | «« | 578 | «« | 278 | «« | 493 | « | 289 | |||||||||
GAMCO Westwood SmallCap Equity I | Small Blend | «« | 578 | «« | 578 | ««« | 493 | « | 289 | |||||||||
GAMCO Westwood Income AAA | Large Value | «««« | 1114 | «««« | 1114 | «««« | 964 | ««««« | 545 | |||||||||
GAMCO Westwood Income A | Large Value | «««« | 1114 | «««« | 1114 | «««« | 964 | ««««« | 545 | |||||||||
GAMCO Westwood Income C | Large Value | «««« | 1114 | «««« | 1114 | «««« | 964 | ««««« | 545 | |||||||||
GAMCO Westwood Income I | Large Value | «««« | 1114 | «««« | 1114 | «««« | 964 | ««««« | 545 | |||||||||
GAMCO Westwood Equity AAA | Large Blend | ««« | 1652 | « | 1652 | ««« | 1408 | «««« | 832 | |||||||||
GAMCO Westwood Equity A | Large Blend | «« | 1652 | « | 1652 | «« | 1408 | ««« | 832 | |||||||||
GAMCO Westwood Equity C | Large Blend | «« | 1652 | « | 1652 | «« | 1408 | ««« | 832 | |||||||||
GAMCO Westwood Equity I | Large Blend | « | 1652 | « | 1652 | ««« | 1408 | «««« | 832 | |||||||||
GAMCO Westwood Balanced AAA | Moderate Allocation | ««« | 847 | «« | 847 | ««« | 711 | ««« | 386 | |||||||||
GAMCO Westwood Balanced A | Moderate Allocation | «« | 847 | « | 847 | «« | 711 | ««« | 386 | |||||||||
GAMCO Westwood Balanced B | Moderate Allocation | «« | 847 | « | 847 | «« | 711 | ««« | 386 | |||||||||
GAMCO Westwood Balanced C | Moderate Allocation | ««« | 847 | « | 847 | ««« | 711 | ««« | 386 | |||||||||
GAMCO Westwood Balanced I | Moderate Allocation | «« | 847 | «« | 847 | ««« | 711 | ««« | 386 | |||||||||
GAMCO Westwood Intermediate Bond AAA | Intermediate-Term Bond | «« | 1026 | «« | 1026 | «« | 862 | «« | 568 | |||||||||
GAMCO Westwood Intermediate Bond A | Intermediate-Term Bond | « | 1026 | « | 1026 | «« | 862 | « | 568 | |||||||||
GAMCO Westwood Intermediate Bond B | Intermediate-Term Bond | « | 1026 | « | 1026 | «« | 862 | « | 568 | |||||||||
GAMCO Westwood Intermediate Bond C | Intermediate-Term Bond | «« | 1026 | « | 1026 | «« | 862 | « | 568 | |||||||||
GAMCO Westwood Intermediate Bond I | Intermediate-Term Bond | «« | 1026 | «« | 1026 | ««« | 862 | «« | 568 |
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. 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. © 2011 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 G.distributors, LLC, One Corporate Center, Rye, NY 10580. Call 800-WESTWOOD for a prospectus.
9
GAMCO Westwood Funds
Disclosure of Fund Expenses (Unaudited)
For the Six Month Period from April 1, 2011 through September 30, 2011
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, 2011.
Beginning Account Value 04/01/11 | Ending Account Value 09/30/11 | Annualized Expense Ratio | Expenses Paid During Period* | |||||||||||||
The GAMCO Westwood Mighty Mites Fund |
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Actual Fund Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 815.90 | 1.51 | % | $ | 6.87 | ||||||||
Class A | $ | 1,000.00 | $ | 815.30 | 1.76 | % | $ | 8.01 | ||||||||
Class B | $ | 1,000.00 | $ | 812.10 | 2.35 | % | $ | 10.68 | ||||||||
Class C | $ | 1,000.00 | $ | 813.10 | 2.25 | % | $ | 10.23 | ||||||||
Class I | $ | 1,000.00 | $ | 817.70 | 1.25 | % | $ | 5.70 | ||||||||
Hypothetical 5% Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 1,017.50 | 1.51 | % | $ | 7.64 | ||||||||
Class A | $ | 1,000.00 | $ | 1,016.24 | 1.76 | % | $ | 8.90 | ||||||||
Class B | $ | 1,000.00 | $ | 1,013.29 | 2.35 | % | $ | 11.86 | ||||||||
Class C | $ | 1,000.00 | $ | 1,013.79 | 2.25 | % | $ | 11.36 | ||||||||
Class I | $ | 1,000.00 | $ | 1,018.80 | 1.25 | % | $ | 6.33 | ||||||||
The GAMCO Westwood SmallCap Equity Fund |
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Actual Fund Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 721.10 | 1.50 | % | $ | 6.47 | ||||||||
Class A | $ | 1,000.00 | $ | 720.40 | 1.75 | % | $ | 7.55 | ||||||||
Class C | $ | 1,000.00 | $ | 718.30 | 2.25 | % | $ | 9.69 | ||||||||
Class I | $ | 1,000.00 | $ | 721.60 | 1.25 | % | $ | 5.39 | ||||||||
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 | ||||||||
The GAMCO Westwood Income Fund |
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Actual Fund Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 899.90 | 2.00 | % | $ | 9.53 | ||||||||
Class A | $ | 1,000.00 | $ | 897.60 | 2.25 | % | $ | 10.70 | ||||||||
Class C | $ | 1,000.00 | $ | 896.70 | 2.75 | % | $ | 13.08 | ||||||||
Class I | $ | 1,000.00 | $ | 900.00 | 1.75 | % | $ | 8.34 | ||||||||
Hypothetical 5% Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 1,015.04 | 2.00 | % | $ | 10.10 | ||||||||
Class A | $ | 1,000.00 | $ | 1,013.79 | 2.25 | % | $ | 11.36 | ||||||||
Class C | $ | 1,000.00 | $ | 1,011.28 | 2.75 | % | $ | 13.87 | ||||||||
Class I | $ | 1,000.00 | $ | 1,016.29 | 1.75 | % | $ | 8.85 | ||||||||
The GAMCO Westwood Equity Fund |
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Actual Fund Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 821.20 | 1.48 | % | $ | 6.76 | ||||||||
Class A | $ | 1,000.00 | $ | 820.70 | 1.73 | % | $ | 7.90 | ||||||||
Class C | $ | 1,000.00 | $ | 818.20 | 2.23 | % | $ | 10.16 | ||||||||
Class I | $ | 1,000.00 | $ | 822.50 | 1.24 | % | $ | 5.67 | ||||||||
Hypothetical 5% Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 1,017.65 | 1.48 | % | $ | 7.49 | ||||||||
Class A | $ | 1,000.00 | $ | 1,016.39 | 1.73 | % | $ | 8.74 | ||||||||
Class C | $ | 1,000.00 | $ | 1,013.89 | 2.23 | % | $ | 11.26 | ||||||||
Class I | $ | 1,000.00 | $ | 1,018.85 | 1.24 | % | $ | 6.28 | ||||||||
The GAMCO Westwood Balanced Fund |
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Actual Fund Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 900.30 | 1.20 | % | $ | 5.72 | ||||||||
Class A | $ | 1,000.00 | $ | 899.70 | 1.45 | % | $ | 6.91 | ||||||||
Class B | $ | 1,000.00 | $ | 897.10 | 1.94 | % | $ | 9.23 | ||||||||
Class C | $ | 1,000.00 | $ | 896.40 | 1.95 | % | $ | 9.27 | ||||||||
Class I | $ | 1,000.00 | $ | 901.60 | 0.95 | % | $ | 4.53 | ||||||||
Hypothetical 5% Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 1,019.05 | 1.20 | % | $ | 6.07 | ||||||||
Class A | $ | 1,000.00 | $ | 1,017.80 | 1.45 | % | $ | 7.33 | ||||||||
Class B | $ | 1,000.00 | $ | 1,015.34 | 1.94 | % | $ | 9.80 | ||||||||
Class C | $ | 1,000.00 | $ | 1,015.29 | 1.95 | % | $ | 9.85 | ||||||||
Class I | $ | 1,000.00 | $ | 1,020.31 | 0.95 | % | $ | 4.81 | ||||||||
The GAMCO Westwood Intermediate Bond Fund |
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Actual Fund Return | ||||||||||||||||
Class AAA | $ | 1,000.00 | $ | 1,039.50 | 1.00 | % | $ | 5.11 | ||||||||
Class A | $ | 1,000.00 | $ | 1,039.00 | 1.10 | % | $ | 5.62 | ||||||||
Class B | $ | 1,000.00 | $ | 1,035.70 | 1.75 | % | $ | 8.93 | ||||||||
Class C | $ | 1,000.00 | $ | 1,035.30 | 1.75 | % | $ | 8.93 | ||||||||
Class I | $ | 1,000.00 | $ | 1,040.70 | 0.75 | % | $ | 3.84 | ||||||||
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, 2011:
GAMCO Westwood Mighty MitesSM Fund
U.S. Government Obligations | 23.9% | |||
Health Care | 9.3% | |||
Diversified Industrial | 7.3% | |||
Electronics | 4.7% | |||
Computer Software and Services | 4.5% | |||
Business Services | 4.3% | |||
Equipment and Supplies | 4.3% | |||
Financial Services | 4.0% | |||
Consumer Products | 3.7% | |||
Automotive: Parts and Accessories | 3.0% | |||
Food and Beverage | 3.0% | |||
Hotels and Gaming | 2.0% | |||
Broadcasting | 2.0% | |||
Restaurants | 2.0% | |||
Retail | 1.9% | |||
Machinery | 1.9% | |||
Specialty Chemicals | 1.8% | |||
Aviation: Parts and Services | 1.7% | |||
Commercial Services | 1.3% | |||
Publishing | 1.2% | |||
Energy and Utilities: Water | 1.2% | |||
Metals and Mining | 1.1% | |||
Real Estate | 1.1% | |||
Energy and Utilities: Natural Gas | 0.9% | |||
Educational Services | 0.9% | |||
Telecommunications | 0.8% |
Energy and Utilities: Services | 0.8% | |||
Building and Construction | 0.8% | |||
Semiconductors | 0.8% | |||
Energy and Utilities: Oil | 0.5% | |||
Aerospace and Defense | 0.4% | |||
Manufactured Housing and Recreational Vehicles | 0.4% | |||
Consumer Services | 0.4% | |||
Environmental Control | 0.3% | |||
Energy and Utilities: Integrated | 0.3% | |||
Communications Equipment | 0.3% | |||
Automotive | 0.3% | |||
Transportation | 0.3% | |||
Entertainment | 0.3% | |||
Agriculture | 0.2% | |||
Paper and Forest Products | 0.1% | |||
Energy and Utilities: Electric | 0.1% | |||
Closed-End Business Development Company | 0.1% | |||
Energy and Utilities: Alternative Energy | 0.0% | |||
Cable | 0.0% | |||
Computer Hardware | 0.0% | |||
Airlines | 0.0% | |||
Other Assets and Liabilities (Net) | (0.2)% | |||
|
| |||
100.0% | ||||
|
|
GAMCO Westwood SmallCap Equity Fund
Financial Services | 11.7% | |||
Electronics | 10.2% | |||
Energy and Utilities | 8.7% | |||
Health Care | 7.1% | |||
Diversified Industrial | 6.1% | |||
Semiconductors | 6.0% | |||
U.S. Government Obligations | 5.7% | |||
Retail | 5.6% | |||
Business Services | 5.5% | |||
Computer Software and Services | 5.3% | |||
Equipment and Supplies | 4.0% | |||
Aerospace | 3.8% | |||
Building and Construction | 3.3% | |||
Computer Hardware | 2.3% | |||
Metals and Mining | 2.2% | |||
IT Services | 1.7% | |||
Machinery | 1.6% |
Automotive | 1.5% | |||
Telecommunications | 1.4% | |||
Consumer Products | 1.4% | |||
Specialty Chemicals | 1.3% | |||
Commercial Services | 1.1% | |||
Aviation: Parts and Services | 0.5% | |||
Automotive: Parts and Accessories | 0.5% | |||
Food Products | 0.4% | |||
Publishing | 0.4% | |||
Entertainment | 0.2% | |||
Health Care Providers and Services | 0.2% | |||
Communications Equipment | 0.1% | |||
Transportation | 0.1% | |||
Restaurants | 0.1% | |||
Other Assets and Liabilities (Net) | (0.0)% | |||
|
| |||
100.0% | ||||
|
|
GAMCO Westwood Income Fund
Food and Beverage | 14.2% | |||
U.S. Government Obligations | 11.6% | |||
Financial Services | 10.6% | |||
Health Care | 10.5% | |||
Energy and Utilities: Oil | 6.7% | |||
Specialty Chemicals | 4.5% | |||
Energy and Utilities: Services | 4.4% | |||
Computer Hardware | 4.3% | |||
Telecommunications | 4.3% | |||
Energy and Utilities: Water | 3.7% | |||
Diversified Industrial | 3.4% | |||
Electronics | 3.3% | |||
Banking | 3.2% |
Energy and Utilities: Natural Gas | 2.8% | |||
Paper and Forest Products | 2.2% | |||
Consumer Products | 2.1% | |||
Automotive | 1.5% | |||
Retail | 1.3% | |||
Metals and Mining | 1.2% | |||
Energy and Utilities: Integrated | 1.1% | |||
Agriculture | 0.5% | |||
Computer Software and Services | 0.4% | |||
Other Assets and Liabilities (Net) | 2.2% | |||
|
| |||
100.0% | ||||
|
|
11
Summary of Portfolio Holdings (Continued) (Unaudited)
GAMCO Westwood Equity Fund
Health Care | 14.6% | |||
Financial Services | 12.0% | |||
Energy: Oil | 10.8% | |||
Banking | 7.9% | |||
Energy: Natural Gas | 6.1% | |||
Diversified Industrial | 5.0% | |||
Retail | 4.2% | |||
Entertainment | 4.2% | |||
Computer Software and Services | 4.0% | |||
Electronics | 4.0% | |||
Specialty Chemicals | 3.7% | |||
Energy: Integrated | 3.1% | |||
Aerospace | 3.0% |
Telecommunications | 3.0% | |||
Computer Hardware | 3.0% | |||
Consumer Products | 2.1% | |||
Transportation | 2.0% | |||
Cable and Satellite | 1.9% | |||
Automotive | 1.9% | |||
Food and Beverage | 1.1% | |||
Mutual Funds | 0.9% | |||
Machinery | 0.9% | |||
Other Assets and Liabilities (Net) | 0.6% | |||
|
| |||
100.0% | ||||
|
|
GAMCO Westwood Balanced Fund
U.S. Government Agency Obligations | 11.4% | |||
Banking | 9.2% | |||
Energy: Oil | 9.1% | |||
Health Care | 8.5% | |||
Financial Services | 8.3% | |||
U.S. Government Obligations | 7.7% | |||
Energy: Natural Gas | 4.7% | |||
Diversified Industrial | 4.5% | |||
Mutual Funds | 3.5% | |||
Computer Software and Services | 3.2% | |||
Electronics | 3.2% | |||
Telecommunications | 2.5% | |||
Energy: Integrated | 2.5% | |||
Retail | 2.5% | |||
Transportation | 2.4% |
Entertainment | 2.4% | |||
Specialty Chemicals | 2.2% | |||
Aerospace | 1.8% | |||
Computer Hardware | 1.8% | |||
Food and Beverage | 1.7% | |||
Cable and Satellite | 1.2% | |||
Consumer Products | 1.2% | |||
Automotive | 1.1% | |||
Metals and Mining | 1.0% | |||
Wireless Communications | 0.9% | |||
Real Estate Investment Trusts | 0.8% | |||
Machinery | 0.5% | |||
Other Assets and Liabilities (Net) | 0.2% | |||
|
| |||
100.0% | ||||
|
|
GAMCO Westwood Intermediate Bond Fund
Corporate Bonds | 35.7% | |||
U.S. Government Agency Obligations | 27.9% | |||
U.S. Government Obligations | 23.7% | |||
Short-Term Investments | 13.9% |
Other Assets and Liabilities (Net) | (1.2)% | |||
|
| |||
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, 2011. Shareholders may obtain this information at www.gabelli.com or by calling the Fund at 800-GABELLI (800-422-3554). 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 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 800-GABELLI (800-422-3554); (ii) writing to The Gabelli 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, 2011
Shares | Cost | Market | ||||||||||
COMMON STOCKS — 76.2% |
| |||||||||||
Aerospace and Defense — 0.4% |
| |||||||||||
150,100 | Innovative Solutions & Support Inc.† | $ | 790,524 | $ | 724,983 | |||||||
137,929 | Kratos Defense & Security Solutions Inc.† | 1,617,230 | 926,883 | |||||||||
|
|
|
| |||||||||
2,407,754 | 1,651,866 | |||||||||||
|
|
|
| |||||||||
Agriculture — 0.2% |
| |||||||||||
225 | J.G. Boswell Co. | 144,675 | 151,875 | |||||||||
48,800 | Limoneira Co. | 1,034,332 | 696,864 | |||||||||
|
|
|
| |||||||||
1,179,007 | 848,739 | |||||||||||
|
|
|
| |||||||||
Airlines — 0.0% |
| |||||||||||
8,000 | Pinnacle Airlines Corp.† | 20,239 | 23,440 | |||||||||
|
|
|
| |||||||||
Automotive — 0.3% |
| |||||||||||
26,200 | Lithia Motors Inc., Cl. A | 462,577 | 376,756 | |||||||||
63,600 | Sonic Automotive Inc., Cl. A | 811,187 | 686,244 | |||||||||
100,000 | Wabash National Corp.† | 190,947 | 477,000 | |||||||||
|
|
|
| |||||||||
1,464,711 | 1,540,000 | |||||||||||
|
|
|
| |||||||||
Automotive: Parts and Accessories — 2.9% |
| |||||||||||
105,000 | Dana Holding Corp.† | 624,231 | 1,102,500 | |||||||||
24,000 | Federal-Mogul Corp.† | 359,877 | 354,000 | |||||||||
299,548 | Midas Inc.† | 2,693,835 | 2,456,294 | |||||||||
130,800 | Modine Manufacturing Co.† | 991,672 | 1,185,048 | |||||||||
22,500 | Puradyn Filter Technologies Inc.† | 6,760 | 4,725 | |||||||||
313,036 | Standard Motor Products Inc. | 2,823,285 | 4,060,077 | |||||||||
156,000 | Strattec Security Corp. | 3,188,048 | 3,740,880 | |||||||||
90,032 | Superior Industries International Inc. | 1,437,735 | 1,390,994 | |||||||||
40,000 | Tenneco Inc.† | 124,690 | 1,024,400 | |||||||||
42,000 | The Pep Boys - Manny, Moe & Jack | 522,651 | 414,540 | |||||||||
|
|
|
| |||||||||
12,772,784 | 15,733,458 | |||||||||||
|
|
|
| |||||||||
Aviation: Parts and Services — 1.7% |
| |||||||||||
13,500 | Astronics Corp.† | 207,652 | 381,375 | |||||||||
1,350 | Astronics Corp., Cl. B† | 20,537 | 37,192 | |||||||||
78,574 | Ducommun Inc. | 1,658,656 | 1,177,038 | |||||||||
1,083,800 | GenCorp Inc.† | 4,588,728 | 4,866,262 | |||||||||
110,200 | Kaman Corp. | 1,849,119 | 3,069,070 | |||||||||
|
|
|
| |||||||||
8,324,692 | 9,530,937 | |||||||||||
|
|
|
| |||||||||
Broadcasting — 2.0% |
| |||||||||||
508,300 | Acme Communications Inc.† | 664,354 | 355,810 | |||||||||
545,000 | Beasley Broadcast Group Inc., Cl. A† (a) | 2,902,659 | 2,081,900 | |||||||||
66,900 | Crown Media Holdings Inc., Cl. A† | 381,410 | 95,667 | |||||||||
5,000 | Cumulus Media Inc., Cl. A† | 3,580 | 14,200 | |||||||||
73,800 | Entercom Communications Corp., Cl. A† | 57,011 | 387,450 | |||||||||
15,000 | Equity Media Holdings Corp.† | 44,866 | 37 | |||||||||
181,161 | Fisher Communications Inc.† | 3,719,200 | 4,047,137 | |||||||||
924 | Granite Broadcasting Corp.† (b) | 24,780 | 0 | |||||||||
617,500 | Gray Television Inc.† | 406,570 | 963,300 | |||||||||
30,832 | Gray Television Inc., Cl. A† | 52,106 | 43,165 | |||||||||
110,000 | LIN TV Corp., Cl. A† | 125,349 | 239,800 | |||||||||
830,000 | Media General Inc., Cl. A† | 3,592,334 | 1,585,300 | |||||||||
315,132 | Salem Communications Corp., Cl. A | 1,178,766 | 721,652 | |||||||||
50,000 | Sinclair Broadcast Group Inc., Cl. A | 89,853 | 358,500 | |||||||||
|
|
|
| |||||||||
13,242,838 | 10,893,918 | |||||||||||
|
|
|
| |||||||||
Building and Construction — 0.8% |
| |||||||||||
580,000 | Huttig Building Products Inc.† | 554,208 | 255,200 | |||||||||
70,000 | Layne Christensen Co.† | 1,839,650 | 1,617,000 | |||||||||
177,400 | Material Sciences Corp.† | 329,145 | 1,147,778 | |||||||||
44,174 | MYR Group Inc.† | 1,075,181 | 779,229 |
Shares | Cost | Market | ||||||||||
22,200 | The Monarch Cement Co. | $ | 578,326 | $ | 566,100 | |||||||
|
|
|
| |||||||||
4,376,510 | 4,365,307 | �� | ||||||||||
|
|
|
| |||||||||
Business Services — 4.3% |
| |||||||||||
28,000 | ANC Rental Corp.† (b) | 840 | 3 | |||||||||
200,000 | APAC Customer Services Inc.† | 1,691,950 | 1,704,000 | |||||||||
240,000 | Ascent Capital Group Inc., Cl. A† | 6,308,789 | 9,436,799 | |||||||||
21,500 | Cenveo Inc.† | 58,613 | 64,715 | |||||||||
103 | Chazak Value Corp.† (b) | 0 | 0 | |||||||||
67,500 | EDGAR Online Inc.† | 131,159 | 42,525 | |||||||||
632,589 | Edgewater Technology Inc.† (a) | 1,916,819 | 1,473,932 | |||||||||
50,000 | Fortegra Financial Corp.† | 394,500 | 262,500 | |||||||||
105,236 | GP Strategies Corp.† | 958,211 | 1,051,307 | |||||||||
15,000 | Intermec Inc.† | 121,849 | 97,800 | |||||||||
325,000 | Internap Network Services Corp.† | 2,041,604 | 1,599,000 | |||||||||
2,000 | Liquidity Services Inc.† | 10,853 | 64,140 | |||||||||
290,900 | Pure Technologies Ltd.† | 1,343,932 | 880,001 | |||||||||
183,500 | S1 Corp.† | 1,273,290 | 1,682,695 | |||||||||
49,895 | SearchMedia Holdings Ltd.† | 274,981 | 83,325 | |||||||||
233,987 | Stamps.com Inc. | 1,980,819 | 4,782,694 | |||||||||
14,600 | The Dolan Co.† | 172,154 | 131,254 | |||||||||
85,000 | Trans-Lux Corp.† | 37,751 | 7,650 | |||||||||
|
|
|
| |||||||||
18,718,114 | 23,364,340 | |||||||||||
|
|
|
| |||||||||
Cable — 0.0% |
| |||||||||||
90,000 | Adelphia Communications Corp., Cl. A† (b) | 15,750 | 0 | |||||||||
90,000 | Adelphia Communications Corp., Cl. A, Escrow† (b) | 0 | 0 | |||||||||
90,000 | Adelphia Recovery Trust† | 0 | 1,296 | |||||||||
22,500 | Outdoor Channel Holdings Inc.† | 158,571 | 128,700 | |||||||||
|
|
|
| |||||||||
174,321 | 129,996 | |||||||||||
|
|
|
| |||||||||
Closed-End Business Development Company — 0.1% |
| |||||||||||
45,000 | MVC Capital Inc. | 499,586 | 471,150 | |||||||||
|
|
|
| |||||||||
Commercial Services — 1.3% |
| |||||||||||
27,800 | ICF International Inc.† | 658,922 | 522,918 | |||||||||
22,000 | KAR Auction Services Inc.† | 306,413 | 266,420 | |||||||||
20,000 | Macquarie Infrastructure Co. LLC | 363,599 | 448,800 | |||||||||
33,000 | McGrath Rentcorp | 889,126 | 785,070 | |||||||||
30,000 | Pendrell Corp.† | 48,782 | 67,500 | |||||||||
208,375 | PRGX Global Inc.† | 1,229,747 | 983,530 | |||||||||
920,000 | Swisher Hygiene Inc.† | 931,149 | 3,731,272 | |||||||||
|
|
|
| |||||||||
4,427,738 | 6,805,510 | |||||||||||
|
|
|
| |||||||||
Communications Equipment — 0.3% |
| |||||||||||
4,900 | Communications Systems Inc. | 53,589 | 63,700 | |||||||||
20,830 | Sycamore Networks Inc. | 294,441 | 375,982 | |||||||||
265,077 | Symmetricom Inc.† | 1,459,762 | 1,150,434 | |||||||||
4,000 | Technical Communications Corp. | 25,077 | 29,640 | |||||||||
30,000 | ViewCast.com Inc.† | 14,100 | 4,425 | |||||||||
|
|
|
| |||||||||
1,846,969 | 1,624,181 | |||||||||||
|
|
|
| |||||||||
Computer Hardware — 0.0% |
| |||||||||||
50,000 | Dot Hill Systems Corp.† | 147,720 | 75,500 | |||||||||
|
|
|
| |||||||||
Computer Software and Services — 4.5% |
| |||||||||||
3,418,382 | ADPT Corp.† | 10,014,653 | 9,161,264 | |||||||||
241,000 | Callidus Software Inc.† | 1,475,232 | 1,111,010 | |||||||||
13,000 | Cinedigm Digital Cinema Corp., Cl. A† | 22,644 | 15,600 | |||||||||
102,538 | Computer Task Group Inc.† | 957,516 | 1,145,349 | |||||||||
27,304 | Dynamics Research Corp.† | 397,841 | 243,551 | |||||||||
60,000 | EarthLink Inc. | 461,435 | 391,800 | |||||||||
30,000 | Emulex Corp.† | 230,746 | 192,000 | |||||||||
673,000 | FalconStor Software Inc.† | 2,492,832 | 1,965,160 | |||||||||
404,900 | Furmanite Corp.† | 2,367,201 | 2,190,509 | |||||||||
1,910 | Gemalto NV | 10,942 | 91,571 | |||||||||
383,537 | Global Sources Ltd.† | 2,890,477 | 2,596,545 | |||||||||
45,300 | GSE Systems Inc.† | 245,965 | 79,728 |
See accompanying notes to financial statements.
13
GAMCO Westwood Mighty MitesSM Fund
Schedule of Investments (Continued) — September 30, 2011
Shares | Cost | Market | ||||||||||
COMMON STOCKS (Continued) |
| |||||||||||
Computer Software and Services (Continued) |
| |||||||||||
23,300 | Guidance Software Inc.† | $ | 147,440 | $ | 151,217 | |||||||
320,000 | Harris Interactive Inc.† | 360,794 | 156,800 | |||||||||
112,200 | interCLICK Inc.† | 574,369 | 622,710 | |||||||||
437,709 | Lionbridge Technologies Inc.† | 1,558,896 | 1,076,764 | |||||||||
4,100 | Magma Design Automation Inc.† | 11,864 | 18,655 | |||||||||
107,900 | Mercury Computer Systems Inc.† | 1,568,284 | 1,240,850 | |||||||||
4,400 | MTS Systems Corp. | 166,619 | 134,816 | |||||||||
115,096 | Pervasive Software Inc.† | 754,855 | 690,576 | |||||||||
11,200 | Rimage Corp. | 172,882 | 141,680 | |||||||||
40,321 | Schawk Inc. | 658,934 | 397,968 | |||||||||
154,831 | Tier Technologies Inc.† | 884,484 | 571,326 | |||||||||
10,000 | Trident Microsystems Inc.† | 19,494 | 5,200 | |||||||||
3,800 | Tyler Technologies Inc.† | 39,378 | 96,064 | |||||||||
|
|
|
| |||||||||
28,485,777 | 24,488,713 | |||||||||||
|
|
|
| |||||||||
Consumer Products — 3.7% |
| |||||||||||
210,289 | A. T. Cross Co., Cl. A† | 2,143,085 | 2,372,060 | |||||||||
18,000 | Adams Golf Inc.† | 122,578 | 97,200 | |||||||||
2,000 | Brunswick Corp. | 30,085 | 28,080 | |||||||||
29,000 | Callaway Golf Co. | 191,165 | 149,930 | |||||||||
57,000 | Heelys Inc.† | 214,205 | 115,140 | |||||||||
4,300 | Johnson Outdoors Inc., Cl. A† | 33,657 | 66,134 | |||||||||
119,376 | Kid Brands Inc.† | 887,668 | 315,153 | |||||||||
15,300 | Lakeland Industries Inc.† | 147,120 | 119,340 | |||||||||
495,015 | Marine Products Corp.† | 3,076,076 | 1,692,951 | |||||||||
14,500 | MarineMax Inc.† | 65,214 | 93,815 | |||||||||
300 | National Presto Industries Inc. | 8,618 | 26,073 | |||||||||
111,474 | Oil-Dri Corp. of America | 1,933,674 | 2,071,187 | |||||||||
22,550 | PC Group Inc.† | 36,025 | 1,691 | |||||||||
900,039 | Schiff Nutrition International Inc.† | 6,414,627 | 9,972,432 | |||||||||
62,900 | Steinway Musical Instruments Inc.† | 1,226,627 | 1,356,124 | |||||||||
41,530 | Syratech Corp.† | 10,383 | 1,053 | |||||||||
313,400 | The Wet Seal Inc., Cl. A† | 1,197,295 | 1,404,032 | |||||||||
119,200 | ValueVision Media Inc., Cl. A† | 565,203 | 281,312 | |||||||||
|
|
|
| |||||||||
18,303,305 | 20,163,707 | |||||||||||
|
|
|
| |||||||||
Consumer Services — 0.4% |
| |||||||||||
485,500 | 1-800-FLOWERS.COM Inc., Cl. A† | 1,407,277 | 1,126,360 | |||||||||
33,800 | Bowlin Travel Centers Inc.† | 41,186 | 53,742 | |||||||||
1,100 | Collectors Universe Inc. | 2,704 | 16,225 | |||||||||
135,000 | Stewart Enterprises Inc., Cl. A | 782,327 | 803,250 | |||||||||
3,500 | Valassis Communications Inc.† | 4,639 | 65,590 | |||||||||
|
|
|
| |||||||||
2,238,133 | 2,065,167 | |||||||||||
|
|
|
| |||||||||
Diversified Industrial — 7.3% |
| |||||||||||
54,000 | American Railcar Industries Inc.† | 726,623 | 830,520 | |||||||||
210,391 | Ampco-Pittsburgh Corp. | 5,229,119 | 4,302,496 | |||||||||
142,400 | Burnham Holdings Inc., Cl. A | 2,057,076 | 2,000,720 | |||||||||
124,097 | Chase Corp. | 1,740,795 | 1,334,043 | |||||||||
120,720 | Cleantech Solutions International Inc.† | 536,358 | 54,324 | |||||||||
114,900 | Columbus McKinnon Corp.† | 1,954,794 | 1,259,304 | |||||||||
128,500 | FormFactor Inc.† | 1,185,770 | 800,555 | |||||||||
49,800 | Graham Corp. | 705,835 | 828,672 | |||||||||
258,603 | Griffon Corp.† | 2,698,541 | 2,115,372 | |||||||||
380,800 | Handy & Harman Ltd.† | 2,252,539 | 3,842,272 | |||||||||
25,000 | Haulotte Group SA† | 134,090 | 217,374 | |||||||||
251,300 | Katy Industries Inc.† | 458,478 | 10,555 | |||||||||
13,564 | L.B. Foster Co., Cl. A | 430,775 | 301,528 | |||||||||
125,203 | Lawson Products Inc. | 2,511,769 | 1,692,745 | |||||||||
140,149 | Lydall Inc.† | 1,277,957 | 1,247,326 | |||||||||
23,900 | M&F Worldwide Corp.† | 564,544 | 588,418 | |||||||||
552,557 | Magnetek Inc.† | 1,102,168 | 508,352 | |||||||||
303,900 | Myers Industries Inc. | 2,774,683 | 3,084,585 | |||||||||
408,525 | National Patent Development Corp.† | 639,996 | 592,361 | |||||||||
202,567 | Park-Ohio Holdings Corp.† | 3,559,523 | 2,432,830 | |||||||||
2,500 | Raven Industries Inc. | 126,243 | 120,500 | |||||||||
13,700 | RWC Inc.† | 238,058 | 116,450 | |||||||||
314,954 | Sevcon Inc.† (a) | 1,580,073 | 1,999,958 |
Shares | Cost | Market | ||||||||||
25,100 | Stamford Industrial Group Inc.† | $ | 92,108 | $ | 28 | |||||||
84,000 | Standex International Corp. | 2,480,607 | 2,614,920 | |||||||||
420,300 | Techprecision Corp.† | 842,793 | 479,142 | |||||||||
57,083 | Tredegar Corp. | 1,067,988 | 846,541 | |||||||||
152,068 | Twin Disc Inc. | 3,026,211 | 4,055,654 | |||||||||
85,507 | Vishay Precision Group Inc.† | 1,439,635 | 1,126,982 | |||||||||
|
|
|
| |||||||||
43,435,149 | 39,404,527 | |||||||||||
|
|
|
| |||||||||
Educational Services — 0.9% |
| |||||||||||
345,000 | Corinthian Colleges Inc.† | 1,877,204 | 538,200 | |||||||||
318,119 | Universal Technical Institute Inc.† | 5,923,371 | 4,323,237 | |||||||||
108,500 | Voyager Learning Co., Escrow† (b) | 0 | 0 | |||||||||
|
|
|
| |||||||||
7,800,575 | 4,861,437 | |||||||||||
|
|
|
| |||||||||
Electronics — 4.7% |
| |||||||||||
19,000 | A123 Systems Inc.† | 235,830 | 65,360 | |||||||||
37,500 | Alliance Semiconductor Corp.† | 99,246 | 11,250 | |||||||||
45,451 | Ballantyne Strong Inc.† | 205,438 | 139,989 | |||||||||
107,500 | Bel Fuse Inc., Cl. A | 2,037,459 | 1,843,625 | |||||||||
1,800 | Bel Fuse Inc., Cl. B | 36,012 | 28,062 | |||||||||
73,950 | BTU International Inc.† | 296,355 | 328,338 | |||||||||
17,139 | CSR plc, ADR† | 251,601 | 222,464 | |||||||||
301,500 | CTS Corp. | 2,343,352 | 2,451,195 | |||||||||
101,867 | Dialight plc | 1,243,483 | 1,223,160 | |||||||||
78,149 | Electro Scientific Industries Inc.† | 984,885 | 929,191 | |||||||||
46,400 | IMAX Corp.† | 189,037 | 671,872 | |||||||||
233,300 | LeCroy Corp.† | 976,997 | 1,843,070 | |||||||||
52,500 | Mesa Laboratories Inc. | 1,311,455 | 1,955,100 | |||||||||
75,000 | Methode Electronics Inc. | 384,225 | 557,250 | |||||||||
74,000 | Mocon Inc. | 1,104,730 | 1,169,570 | |||||||||
69,500 | MoSys Inc.† | 130,660 | 254,370 | |||||||||
63,800 | Newport Corp.† | 399,295 | 689,678 | |||||||||
52,200 | Park Electrochemical Corp. | 1,120,995 | 1,115,514 | |||||||||
70,000 | Pericom Semiconductor Corp.† | 699,279 | 518,700 | |||||||||
649,871 | Pulse Electronics Corp. | 3,107,573 | 1,858,631 | |||||||||
78,000 | Schmitt Industries Inc.† | 211,687 | 249,600 | |||||||||
208,300 | Stoneridge Inc.† | 910,658 | 1,087,326 | |||||||||
18,000 | Texas Industries Inc. | 638,242 | 571,320 | |||||||||
134,900 | Ultra Clean Holdings† | 287,575 | 578,721 | |||||||||
229,650 | Ultralife Corp.† | 1,293,272 | 1,145,954 | |||||||||
82,900 | Ultratech Inc.† | 1,353,070 | 1,421,735 | |||||||||
209,000 | Zygo Corp.† | 1,654,584 | 2,416,040 | |||||||||
|
|
|
| |||||||||
23,506,995 | 25,347,085 | |||||||||||
|
|
|
| |||||||||
Energy and Utilities: Alternative Energy — 0.0% |
| |||||||||||
89,590 | China Hydroelectric Corp., ADR† | 536,631 | 186,347 | |||||||||
|
|
|
| |||||||||
Energy and Utilities: Electric — 0.1% |
| |||||||||||
20,000 | Central Vermont Public Service Corp. | 626,059 | 704,200 | |||||||||
|
|
|
| |||||||||
Energy and Utilities: Integrated — 0.3% |
| |||||||||||
272,300 | Headwaters Inc.† | 1,091,231 | 392,112 | |||||||||
30,500 | MGE Energy Inc. | 1,062,659 | 1,240,435 | |||||||||
95,200 | Progress Energy Inc., CVO† | 10,472 | 8,568 | |||||||||
|
|
|
| |||||||||
2,164,362 | 1,641,115 | |||||||||||
|
|
|
| |||||||||
Energy and Utilities: Natural Gas — 0.9% |
| |||||||||||
21,242 | American DG Energy Inc.† | 55,665 | 28,252 | |||||||||
35,000 | Chesapeake Utilities Corp. | 957,766 | 1,403,850 | |||||||||
80,507 | Corning Natural Gas Corp. | 857,412 | 1,428,990 | |||||||||
36,300 | Delta Natural Gas Co. Inc. | 998,791 | 1,110,780 | |||||||||
95,800 | Gastar Exploration Ltd.† | 406,048 | 287,400 | |||||||||
35,400 | RGC Resources Inc. | 401,299 | 672,600 | |||||||||
20,300 | U.S. Energy Corp.† | 85,659 | 46,893 | |||||||||
|
|
|
| |||||||||
3,762,640 | 4,978,765 | |||||||||||
|
|
|
| |||||||||
Energy and Utilities: Oil — 0.5% |
| |||||||||||
186,744 | Callon Petroleum Co.† | 1,284,136 | 722,699 | |||||||||
24,690 | Gulf Island Fabrication Inc. | 677,075 | 510,589 | |||||||||
10,900 | Mitcham Industries Inc.† | 173,694 | 122,080 | |||||||||
73,000 | RAM Energy Resources Inc.† | 137,638 | 57,670 |
See accompanying notes to financial statements.
14
GAMCO Westwood Mighty MitesSM Fund
Schedule of Investments (Continued) — September 30, 2011
Shares | Cost | Market | ||||||||||
COMMON STOCKS (Continued) |
| |||||||||||
Energy and Utilities: Oil (Continued) |
| |||||||||||
63,600 | Tesco Corp.† | $ | 543,737 | $ | 737,760 | |||||||
197,600 | Triangle Petroleum Corp.† | 1,473,400 | 709,384 | |||||||||
|
|
|
| |||||||||
4,289,680 | 2,860,182 | |||||||||||
|
|
|
| |||||||||
Energy and Utilities: Services — 0.8% |
| |||||||||||
67,620 | Archer Ltd.† | 256,348 | 250,316 | |||||||||
800 | Covanta Holding Corp. | 13,498 | 12,152 | |||||||||
30,000 | Global Industries Ltd.† | 233,730 | 237,600 | |||||||||
70,100 | Pike Electric Corp.† | 661,297 | 474,577 | |||||||||
90,348 | Dawson Geophysical Co.† | 2,574,185 | 2,130,406 | |||||||||
60,000 | RPC Inc. | 173,633 | 979,200 | |||||||||
9,500 | Subsea 7 SA, ADR† | 32,064 | 181,925 | |||||||||
10,000 | TGC Industries Inc.† | 77,992 | 44,000 | |||||||||
31,500 | Union Drilling Inc.† | 353,297 | 148,050 | |||||||||
|
|
|
| |||||||||
4,376,044 | 4,458,226 | |||||||||||
|
|
|
| |||||||||
Energy and Utilities: Water — 1.2% |
| |||||||||||
6,000 | Artesian Resources Corp., Cl. A | 73,323 | 105,060 | |||||||||
42,174 | Cadiz Inc.† | 513,311 | 333,596 | |||||||||
5,000 | California Water Service Group | 55,552 | 88,550 | |||||||||
65,000 | Consolidated Water Co. Ltd. | 699,457 | 512,200 | |||||||||
45,500 | Energy Recovery Inc.† | 242,329 | 136,955 | |||||||||
11,200 | Middlesex Water Co. | 187,867 | 191,184 | |||||||||
82,000 | Pennichuck Corp. | 1,764,370 | 2,294,360 | |||||||||
99,300 | SJW Corp. | 2,338,311 | 2,161,761 | |||||||||
28,500 | The York Water Co. | 398,710 | 461,130 | |||||||||
|
|
|
| |||||||||
6,273,230 | 6,284,796 | |||||||||||
|
|
|
| |||||||||
Entertainment — 0.3% |
| |||||||||||
40,500 | Canterbury Park Holding Corp.† | 414,930 | 380,295 | |||||||||
1,802 | Chestnut Hill Ventures† (b) | 67,956 | 104,864 | |||||||||
237,500 | Dover Motorsports Inc.† | 495,954 | 289,750 | |||||||||
655,241 | Entravision Communications Corp., Cl. A† | 1,544,764 | 668,346 | |||||||||
2,000 | LodgeNet Interactive Corp.† | 5,393 | 3,380 | |||||||||
15,000 | Triple Crown Media Inc.† | 274 | 62 | |||||||||
|
|
|
| |||||||||
2,529,271 | 1,446,697 | |||||||||||
|
|
|
| |||||||||
Environmental Control — 0.3% |
| |||||||||||
7,500 | BioteQ Environmental Technologies Inc.† | 12,419 | 2,004 | |||||||||
319,800 | Casella Waste Systems Inc., Cl. A† | 1,659,960 | 1,682,148 | |||||||||
300 | Sharps Compliance Corp.† | 759 | 1,353 | |||||||||
|
|
|
| |||||||||
1,673,138 | 1,685,505 | |||||||||||
|
|
|
| |||||||||
Equipment and Supplies — 4.3% |
| |||||||||||
1,000 | AZZ Inc. | 34,894 | 38,770 | |||||||||
178,500 | Baldwin Technology Co. Inc., Cl. A† | 359,548 | 212,415 | |||||||||
784,100 | Capstone Turbine Corp.† | 1,449,977 | 784,100 | |||||||||
92,500 | CIRCOR International Inc. | 2,764,181 | 2,716,725 | |||||||||
284,549 | Core Molding Technologies Inc.† | 954,655 | 2,199,564 | |||||||||
262,890 | Federal Signal Corp. | 1,741,850 | 1,161,974 | |||||||||
308,804 | Gerber Scientific Inc., Escrow† (b) | 0 | 3,088 | |||||||||
8,500 | Gildemeister AG† | 61,536 | 109,301 | |||||||||
8,000 | GrafTech International Ltd.† | 49,988 | 101,600 | |||||||||
590,000 | Interpump Group SpA | 4,162,140 | 3,367,318 | |||||||||
20,000 | Maezawa Kyuso Industries Co. Ltd. | 108,117 | 271,490 | |||||||||
87,500 | Met-Pro Corp. | 949,826 | 750,750 | |||||||||
11,800 | Mine Safety Appliances Co. | 367,269 | 318,128 | |||||||||
17,903 | Powell Industries Inc.† | 634,070 | 554,456 | |||||||||
232,916 | SL Industries Inc.† (a) | 2,064,158 | 3,924,635 | |||||||||
700 | SRS Labs Inc.† | 3,850 | 5,012 | |||||||||
36,992 | The Eastern Co. | 547,632 | 675,104 | |||||||||
28,068 | The Gorman-Rupp Co. | 709,876 | 692,999 | |||||||||
15,000 | The Greenbrier Companies Inc.† | 216,179 | 174,750 | |||||||||
218,617 | The L.S. Starrett Co., Cl. A | 2,510,240 | 2,361,064 | |||||||||
41,579 | Titan Machinery Inc.† | 620,325 | 744,264 | |||||||||
142,000 | TransAct Technologies Inc.† | 636,670 | 1,164,400 | |||||||||
55,500 | Vicor Corp. | 409,310 | 485,625 |
Shares | Cost | Market | ||||||||||
27,000 | WaterFurnace Renewable Energy Inc. | $ | 544,223 | $ | 477,183 | |||||||
500 | Watts Water Technologies Inc., Cl. A | 7,648 | 13,325 | |||||||||
|
|
|
| |||||||||
21,908,162 | 23,308,040 | |||||||||||
|
|
|
| |||||||||
Financial Services — 4.0% |
| |||||||||||
49,400 | Anchor Bancorp.† | 508,737 | 306,774 | |||||||||
16,100 | Berkshire Bancorp Inc.† | 219,414 | 104,167 | |||||||||
3,900 | Berkshire Hills Bancorp Inc. | 78,058 | 72,033 | |||||||||
75 | Burke & Herbert Bank and Trust Co. | 95,726 | 168,937 | |||||||||
40,000 | Capital Financial Holdings Inc.† | 35,200 | 2,300 | |||||||||
6,791 | Capitol Federal Financial Inc. | 75,244 | 71,713 | |||||||||
29,000 | Crazy Woman Creek Bancorp Inc.† | 501,616 | 264,480 | |||||||||
28,866 | Edelman Financial Group Inc. | 177,619 | 186,474 | |||||||||
421,900 | Epoch Holding Corp. | 2,897,269 | 5,725,183 | |||||||||
138 | Farmers & Merchants Bank of Long Beach | 608,991 | 555,450 | |||||||||
12,403 | Fidelity Southern Corp. | 83,428 | 80,620 | |||||||||
175,600 | Flushing Financial Corp. | 2,455,138 | 1,896,480 | |||||||||
10 | Guaranty Corp., Cl. A† | 137,500 | 60,000 | |||||||||
110,610 | Hallmark Financial Services† | 953,965 | 815,196 | |||||||||
6,600 | Hampden Bancorp Inc. | 75,984 | 86,922 | |||||||||
227 | Hampton Roads Bankshares Inc.† | 18,089 | 1,067 | |||||||||
16,000 | Hancock Holding Co. | 200,587 | 428,480 | |||||||||
39,900 | Heritage Financial Group Inc. | 414,190 | 414,960 | |||||||||
60,125 | Hudson Valley Holding Corp. | 1,248,867 | 1,047,979 | |||||||||
175,723 | JMP Group Inc. | 1,462,799 | 1,020,951 | |||||||||
30,000 | Kaiser Federal Financial Group Inc. | 300,000 | 354,000 | |||||||||
90,843 | KKR & Co. LP | 265,210 | 944,767 | |||||||||
148,462 | Meadowbrook Insurance Group Inc. | 1,429,095 | 1,322,796 | |||||||||
90,000 | Medallion Financial Corp. | 695,704 | 837,000 | |||||||||
46,500 | Nara Bancorp Inc.† | 400,243 | 282,255 | |||||||||
11,055 | New York Community Bancorp Inc. | 143,811 | 131,555 | |||||||||
28,500 | Newport Bancorp Inc.† | 356,595 | 357,675 | |||||||||
5,697 | Northrim BanCorp Inc. | 119,035 | 110,237 | |||||||||
40,000 | Oritani Financial Corp. | 412,856 | 514,400 | |||||||||
8,300 | Provident New York Bancorp | 105,316 | 48,306 | |||||||||
45,000 | Pzena Investment Management Inc., Cl. A | 203,004 | 147,600 | |||||||||
116 | Sunwest Bank† | 322,722 | 310,880 | |||||||||
88,456 | SWS Group Inc. | 908,931 | 414,859 | |||||||||
10,500 | The Ziegler Companies Inc.† | 202,341 | 223,125 | |||||||||
220 | TIB Financial Corp.† | 3,300 | 2,092 | |||||||||
7,500 | Tree.com Inc.† | 61,967 | 37,500 | |||||||||
55,000 | Trustco Bank Corp NY | 253,000 | 245,300 | |||||||||
43,600 | Washington Trust Bancorp Inc. | 975,242 | 862,408 | |||||||||
87,100 | Westfield Financial Inc. | 746,912 | 573,989 | |||||||||
38,100 | Wilshire Bancorp Inc.† | 330,044 | 104,394 | |||||||||
100,000 | WisdomTree Investments Inc.† | 402,626 | 702,000 | |||||||||
30,000 | Xenith Bankshares Inc.† | 127,500 | 101,100 | |||||||||
|
|
|
| |||||||||
21,013,875 | 21,938,404 | |||||||||||
|
|
|
| |||||||||
Food and Beverage — 3.0% |
| |||||||||||
2,300 | Andrew Peller Ltd., Cl. A | 22,063 | 19,885 | |||||||||
19,800 | Boston Beer Co. Inc., Cl. A† | 532,580 | 1,439,460 | |||||||||
37,000 | Calavo Growers Inc. | 804,607 | 759,240 | |||||||||
158,100 | Caribou Coffee Co. Inc.† | 1,592,620 | 1,868,742 | |||||||||
35,000 | Feihe International Inc.† | 305,571 | 189,000 | |||||||||
1,100 | Hanover Foods Corp., Cl. A | 110,881 | 95,700 | |||||||||
50,700 | Inventure Foods Inc.† | 235,681 | 197,730 | |||||||||
2,000 | J & J Snack Foods Corp. | 28,830 | 96,100 | |||||||||
228,300 | Lifeway Foods Inc.† | 2,213,439 | 2,435,961 | |||||||||
15,000 | MGP Ingredients Inc. | 69,302 | 76,050 | |||||||||
32,000 | Peet’s Coffee & Tea Inc.† | 1,338,707 | 1,780,480 | |||||||||
7,800 | Rock Field Co. Ltd. | 125,557 | 132,073 | |||||||||
5,000 | Scheid Vineyards Inc., Cl. A† | 80,258 | 40,000 | |||||||||
260,000 | Smart Balance Inc.† | 1,328,163 | 1,534,000 | |||||||||
150,000 | Snyders-Lance Inc. | 3,235,673 | 3,127,500 | |||||||||
4,000 | Spartan Stores Inc. | 80,124 | 61,920 | |||||||||
48,000 | The Hain Celestial Group Inc.† | 989,778 | 1,466,400 | |||||||||
270,000 | Tingyi (Cayman Islands) Holding Corp. | 393,787 | 664,997 |
See accompanying notes to financial statements.
15
GAMCO Westwood Mighty MitesSM Fund
Schedule of Investments (Continued) — September 30, 2011
Shares | Cost | Market | ||||||||||
COMMON STOCKS (Continued) |
| |||||||||||
Food and Beverage (Continued) |
| |||||||||||
280,000 | Vitasoy International Holdings Ltd. | $ | 133,057 | $ | 179,418 | |||||||
27,300 | Willamette Valley Vineyards Inc.† | 114,672 | 82,583 | |||||||||
|
|
|
| |||||||||
13,735,350 | 16,247,239 | |||||||||||
|
|
|
| |||||||||
Health Care — 9.3% |
| |||||||||||
32,960 | Accuray Inc.† | 244,893 | 132,499 | |||||||||
5,000 | Alere Inc.† | 94,541 | 98,250 | |||||||||
73,000 | American Dental Partners Inc.† | 921,413 | 705,180 | |||||||||
25,000 | AngioDynamics Inc.† | 317,759 | 328,500 | |||||||||
12,800 | ArthroCare Corp.† | 140,635 | 368,256 | |||||||||
72,000 | Bio-Reference Laboratories Inc.† | 1,547,567 | 1,325,520 | |||||||||
345,666 | BioLase Technology Inc.† | 473,052 | 1,036,998 | |||||||||
10,000 | Boiron SA | 166,957 | 271,299 | |||||||||
1,000 | Bruker Corp.† | 5,980 | 13,530 | |||||||||
150,000 | Caliper Life Sciences Inc.† | 1,563,909 | 1,570,500 | |||||||||
250,426 | Cantel Medical Corp. | 5,498,774 | 5,288,997 | |||||||||
14,000 | Cardica Inc.† | 66,718 | 27,160 | |||||||||
105,000 | CardioNet Inc.† | 544,934 | 315,000 | |||||||||
62,500 | Cepheid Inc.† | 595,116 | 2,426,875 | |||||||||
777,200 | Continucare Corp.† | 2,385,770 | 4,958,536 | |||||||||
113,800 | Cutera Inc.† | 938,574 | 810,256 | |||||||||
60,000 | Cynosure Inc., Cl. A† | 508,551 | 605,400 | |||||||||
5,000 | DexCom Inc.† | 65,375 | 60,000 | |||||||||
20,163 | DGT Holdings Corp.† | 295,791 | 174,107 | |||||||||
108,300 | Exactech Inc.† | 1,812,890 | 1,524,864 | |||||||||
19,870 | Heska Corp.† | 169,276 | 171,279 | |||||||||
73,600 | Hooper Holmes Inc.† | 69,670 | 48,576 | |||||||||
1,300 | ICU Medical Inc.† | 34,815 | 47,840 | |||||||||
10,000 | Indevus Pharmaceuticals Inc., Escrow† (b) | 0 | 11,000 | |||||||||
552,900 | InfuSystems Holdings Inc.† | 1,464,327 | 525,255 | |||||||||
174,500 | IntriCon Corp.† | 684,490 | 535,715 | |||||||||
587,045 | IRIS International Inc.† | 6,062,882 | 5,265,794 | |||||||||
195,597 | LeMaitre Vascular Inc. | 1,336,627 | 1,224,437 | |||||||||
91,700 | Neogen Corp.† | 559,479 | 3,183,824 | |||||||||
1,800 | NMT Medical Inc.† | 5,643 | 7 | |||||||||
41,212 | Omnicell Inc.† | 678,741 | 567,901 | |||||||||
50,000 | Opko Health Inc.† | 108,408 | 216,500 | |||||||||
60,000 | Orchid Cellmark Inc.† | 166,500 | 160,800 | |||||||||
17,500 | Orthofix International NV† | 279,401 | 603,925 | |||||||||
117,800 | Pain Therapeutics Inc.† | 536,167 | 560,728 | |||||||||
210,500 | Palomar Medical Technologies Inc.† | 2,915,206 | 1,658,740 | |||||||||
10,000 | PreMD Inc.† | 18,320 | 91 | |||||||||
152,561 | Quidel Corp.† | 1,733,466 | 2,497,424 | |||||||||
444,738 | Rochester Medical Corp.† | 4,888,653 | 3,388,904 | |||||||||
84,400 | RTI Biologics Inc.† | 499,719 | 277,676 | |||||||||
35,000 | Skilled Healthcare Group Inc., Cl. A† | 336,589 | 126,350 | |||||||||
213,900 | Strategic Diagnostics Inc.† | 207,526 | 389,298 | |||||||||
142,000 | SurModics Inc.† | 1,654,966 | 1,292,200 | |||||||||
95,000 | Syneron Medical Ltd.† | 819,192 | 941,450 | |||||||||
2,000 | Targanta Therapeutics Corp., Escrow† (b) | 0 | 1,280 | |||||||||
500 | ThermoGenesis Corp.† | 1,140 | 620 | |||||||||
125,000 | Trinity Biotech plc, ADR | 1,105,442 | 1,145,000 | |||||||||
82,900 | United-Guardian Inc. | 734,019 | 1,236,868 | |||||||||
2,000 | Utah Medical Products Inc. | 55,578 | 52,700 | |||||||||
139,831 | Vascular Solutions Inc.† | 1,396,454 | 1,601,065 | |||||||||
28,800 | Young Innovations Inc. | 592,009 | 820,800 | |||||||||
|
|
|
| |||||||||
47,303,904 | 50,595,774 | |||||||||||
|
|
|
| |||||||||
Hotels and Gaming — 2.0% |
| |||||||||||
62,540 | Churchill Downs Inc. | 2,081,479 | 2,440,936 | |||||||||
256,000 | Dover Downs Gaming & Entertainment Inc. | 1,261,527 | 576,000 | |||||||||
2,500 | Florida Gaming Corp.† | 6,253 | 13,125 | |||||||||
4,000 | Gaylord Entertainment Co.† | 55,334 | 77,360 | |||||||||
274,422 | Morgans Hotel Group Co.† | 2,193,569 | 1,643,788 | |||||||||
8,500 | Multimedia Games Holding Co. Inc.† | 76,734 | 34,340 |
Shares | Cost | Market | ||||||||||
37,500 | Pinnacle Entertainment Inc.† | $ | 319,583 | $ | 340,500 | |||||||
242,973 | Sonesta International Hotels Corp., | 4,043,607 | 4,592,190 | |||||||||
121,100 | The Marcus Corp. | 1,404,883 | 1,204,945 | |||||||||
|
|
|
| |||||||||
11,442,969 | 10,923,184 | |||||||||||
|
|
|
| |||||||||
Machinery — 1.9% |
| |||||||||||
65,300 | Astec Industries Inc.† | 2,027,213 | 1,911,984 | |||||||||
11,000 | DXP Enterprises Inc.† | 140,765 | 207,130 | |||||||||
134,000 | Flow International Corp.† | 210,750 | 296,140 | |||||||||
143,000 | Global Power Equipment Group Inc.† | 3,353,592 | 3,327,610 | |||||||||
6,000 | Hardinge Inc. | 54,215 | 49,440 | |||||||||
108,111 | Key Technology Inc.† | 1,948,398 | 1,255,169 | |||||||||
6,000 | Lindsay Corp. | 180,673 | 322,800 | |||||||||
47,300 | Tennant Co. | 964,940 | 1,673,001 | |||||||||
14,800 | The Middleby Corp.† | 464,969 | 1,042,808 | |||||||||
|
|
|
| |||||||||
9,345,515 | 10,086,082 | |||||||||||
|
|
|
| |||||||||
Manufactured Housing and Recreational Vehicles — 0.4% |
| |||||||||||
49,659 | Arctic Cat Inc.† | 679,660 | 719,559 | |||||||||
16,700 | Cavco Industries Inc.† | 441,334 | 575,148 | |||||||||
43,900 | Nobility Homes Inc.† | 452,176 | 289,740 | |||||||||
27,300 | Skyline Corp. | 596,868 | 260,715 | |||||||||
45,000 | Winnebago Industries Inc.† | 484,341 | 311,400 | |||||||||
|
|
|
| |||||||||
2,654,379 | 2,156,562 | |||||||||||
|
|
|
| |||||||||
Metals and Mining — 1.1% |
| |||||||||||
87,400 | 5N Plus Inc.† | 315,355 | 612,192 | |||||||||
650,000 | Alkane Resources Ltd.† | 704,489 | 717,064 | |||||||||
100,000 | Allana Potash Corp.† | 197,161 | 82,069 | |||||||||
20,000 | Camino Minerals Corp.† | 3,744 | 3,913 | |||||||||
100,000 | Duluth Metals Ltd.† | 298,512 | 220,441 | |||||||||
160,800 | Materion Corp.† | 3,377,526 | 3,646,944 | |||||||||
14,200 | Shiloh Industries Inc. | 151,924 | 127,374 | |||||||||
600,000 | Tanami Gold NL† | 556,226 | 586,425 | |||||||||
|
|
|
| |||||||||
5,604,937 | 5,996,422 | |||||||||||
|
|
|
| |||||||||
Paper and Forest Products — 0.1% |
| |||||||||||
8,449 | Keweenaw Land Association Ltd.† | 773,361 | 760,326 | |||||||||
|
|
|
| |||||||||
Publishing — 1.2% |
| |||||||||||
171,300 | Belo Corp., Cl. A | 348,287 | 837,657 | |||||||||
143,571 | Cambium Learning Group Inc.† | 545,692 | 429,277 | |||||||||
860,000 | Il Sole 24 Ore SpA† | 1,643,363 | 887,756 | |||||||||
1,130,000 | Journal Communications Inc., Cl. A† | 2,719,402 | 3,356,100 | |||||||||
145,000 | The E.W. Scripps Co., Cl. A† | 533,809 | 1,015,000 | |||||||||
|
|
|
| |||||||||
5,790,553 | 6,525,790 | |||||||||||
|
|
|
| |||||||||
Real Estate — 1.1% | ||||||||||||
7,000 | Bresler & Reiner Inc.† | 130,140 | 7,700 | |||||||||
14,100 | Capital Properties Inc., Cl. A | 173,352 | 115,268 | |||||||||
6,000 | Capital Properties Inc., Cl. B (b)(c) | 0 | 49,050 | |||||||||
77,000 | Cohen & Steers Inc. | 1,564,220 | 2,213,750 | |||||||||
85,800 | Griffin Land & Nurseries Inc. | 2,375,036 | 2,203,344 | |||||||||
2,153 | Gyrodyne Co. of America Inc.† | 63,142 | 118,971 | |||||||||
6,600 | Holobeam Inc.† | 119,456 | 138,600 | |||||||||
129,500 | Reading International Inc., Cl. A† | 651,432 | 556,850 | |||||||||
47,200 | Reading International Inc., Cl. B† | 385,553 | 389,400 | |||||||||
2,508 | Royalty LLC† (b)(c) | 0 | 7,550 | |||||||||
|
|
|
| |||||||||
5,462,331 | 5,800,483 | |||||||||||
|
|
|
| |||||||||
Restaurants — 2.0% |
| |||||||||||
15,679 | Biglari Holdings Inc.† | 4,405,662 | 4,647,099 | |||||||||
80,500 | Denny’s Corp.† | 252,176 | 268,065 | |||||||||
134,143 | Famous Dave’s of America Inc.† | 1,286,234 | 1,154,971 | |||||||||
180,229 | Nathan’s Famous Inc.† | 2,601,772 | 3,422,549 | |||||||||
52,000 | The Cheesecake Factory Inc.† | 1,501,534 | 1,281,800 | |||||||||
|
|
|
| |||||||||
10,047,378 | 10,774,484 | |||||||||||
|
|
|
|
See accompanying notes to financial statements.
16
GAMCO Westwood Mighty MitesSM Fund
Schedule of Investments (Continued) — September 30, 2011
Shares | Cost | Market | ||||||||||
COMMON STOCKS (Continued) |
| |||||||||||
Retail — 1.9% |
| |||||||||||
35,000 | 57Th Street General Acquisition Corp.† | $ | 320,834 | $ | 137,550 | |||||||
41,000 | Aaron’s Inc.† | 726,779 | 1,035,250 | |||||||||
72,000 | Big 5 Sporting Goods Corp. | 934,245 | 437,760 | |||||||||
3,000 | Casual Male Retail Group Inc.† | 13,320 | 11,280 | |||||||||
230,000 | Coldwater Creek Inc.† | 813,391 | 287,500 | |||||||||
178,300 | HOT Topic Inc. | 1,060,959 | 1,360,429 | |||||||||
156,200 | Ingles Markets Inc., Cl. A | 2,508,566 | 2,224,288 | |||||||||
295,071 | Krispy Kreme Doughnuts Inc.† | 1,845,719 | 2,012,384 | |||||||||
15,800 | Movado Group Inc. | 196,770 | 192,444 | |||||||||
29,565 | PetMed Express Inc. | 352,775 | 266,085 | |||||||||
28,000 | Pier 1 Imports Inc.† | 293,203 | 273,840 | |||||||||
74,300 | Rush Enterprises Inc., Cl. A† | 1,185,555 | 1,052,088 | |||||||||
57,500 | Rush Enterprises Inc., Cl. B† | 623,178 | 671,025 | |||||||||
31,800 | The Bon-Ton Stores Inc. | 280,194 | 158,046 | |||||||||
330,000 | The Great Atlantic & Pacific Tea Co. Inc.† | 61,465 | 57,750 | |||||||||
16,600 | Village Super Market Inc., Cl. A | 438,893 | 397,404 | |||||||||
|
|
|
| |||||||||
11,655,846 | 10,575,123 | |||||||||||
|
|
|
| |||||||||
Semiconductors — 0.8% |
| |||||||||||
339,100 | Advanced Analogic Technologies Inc.† | 1,305,034 | 1,468,303 | |||||||||
236,160 | Cascade Microtech Inc.† | 1,323,037 | 857,261 | |||||||||
127,500 | Entegris Inc.† | 627,307 | 813,450 | |||||||||
1,319 | GSI Group Inc.† | 10,601 | 10,130 | |||||||||
93,700 | IXYS Corp.† | 991,052 | 1,019,456 | |||||||||
50,000 | Rubicon Ltd.† | 34,834 | 15,247 | |||||||||
|
|
|
| |||||||||
4,291,865 | 4,183,847 | |||||||||||
|
|
|
| |||||||||
Specialty Chemicals — 1.8% |
| |||||||||||
11,009 | A. Schulman Inc. | 250,598 | 187,043 | |||||||||
36,000 | Chemtura Corp.† | 568,735 | 361,080 | |||||||||
710,800 | Ferro Corp.† | 3,484,281 | 4,371,420 | |||||||||
267,226 | General Chemical Group Inc.† | 59,859 | 3,340 | |||||||||
30,000 | Hawkins Inc. | 429,913 | 955,200 | |||||||||
1,000 | KMG Chemicals Inc. | 3,270 | 12,320 | |||||||||
270,000 | Omnova Solutions Inc.† | 509,785 | 966,600 | |||||||||
212,600 | Zep Inc. | 2,939,336 | 3,193,252 | |||||||||
|
|
|
| |||||||||
8,245,777 | 10,050,255 | |||||||||||
|
|
|
| |||||||||
Telecommunications — 0.8% |
| |||||||||||
64,200 | Atlantic Tele-Network Inc. | 2,512,674 | 2,110,896 | |||||||||
170,000 | Cincinnati Bell Inc.† | 483,386 | 525,300 | |||||||||
75 | Consolidated Communications Holdings Inc. | 1,336 | 1,354 | |||||||||
1,000 | Electronic Systems Technology Inc. | 705 | 785 | |||||||||
60,000 | HickoryTech Corp. | 563,742 | 577,200 | |||||||||
80 | Horizon Telecom Inc., Cl. A | 9,250 | 6,680 | |||||||||
350 | Horizon Telecom Inc., Cl. B | 39,964 | 18,200 | |||||||||
56,100 | New ULM Telecom Inc. | 547,403 | 347,820 | |||||||||
400 | North State Telephone Co., Cl. A | 31,368 | 33,600 | |||||||||
500 | (d) | Otelco Inc., IDS | 9,074 | 8,030 | ||||||||
7,788 | Preformed Line Products Co. | 338,590 | 356,690 | |||||||||
18,500 | Shenandoah Telecommunications Co. | 104,466 | 206,090 | |||||||||
500 | SureWest Communications | 5,393 | 5,235 | |||||||||
34,700 | TeleCommunication Systems Inc., Cl. A† | 171,287 | 119,715 | |||||||||
17,875 | Windstream Corp. | 179,823 | 208,423 | |||||||||
|
|
|
| |||||||||
4,998,461 | 4,526,018 | |||||||||||
|
|
|
| |||||||||
Transportation — 0.3% |
| |||||||||||
8,200 | PHI Inc.† | 130,182 | 152,889 | |||||||||
88,355 | Providence and Worcester Railroad Co. | 1,187,436 | 1,111,506 | |||||||||
21,000 | RailAmerica Inc.† | 337,641 | 273,630 | |||||||||
3,000 | Trailer Bridge Inc.† | 7,995 | 1,500 | |||||||||
|
|
|
| |||||||||
1,663,254 | 1,539,525 | |||||||||||
|
|
|
| |||||||||
TOTAL COMMON STOCKS | 405,541,889 | 413,622,369 | ||||||||||
|
|
|
|
Shares | Cost | Market | ||||||||||
PREFERRED STOCKS — 0.1% |
| |||||||||||
Automotive: Parts and Accessories — 0.1% |
| |||||||||||
20,000 | Jungheinrich AG Pfd. | $ | 229,855 | $ | 536,568 | |||||||
|
|
|
| |||||||||
CONVERTIBLE PREFERRED STOCKS — 0.0% |
| |||||||||||
Food and Beverage — 0.0% |
| |||||||||||
500 | Seneca Foods Corp., Zero Coupon Cv. Pfd., Ser. 2003 (b)† | 7,625 | 9,900 | |||||||||
|
|
|
| |||||||||
RIGHTS — 0.0% |
| |||||||||||
Health Care — 0.0% |
| |||||||||||
200,000 | Clinical Data Inc., CVR, expire 04/14/18† (b) | 0 | 190,000 | |||||||||
|
|
|
| |||||||||
WARRANTS — 0.0% |
| |||||||||||
Broadcasting — 0.0% |
| |||||||||||
63 | Granite Broadcasting Corp., Ser. A, expire 06/04/12† (b) | 0 | 0 | |||||||||
63 | Granite Broadcasting Corp., Ser. B, expire 06/04/12† (b) | 0 | 0 | |||||||||
|
|
|
| |||||||||
0 | 0 | |||||||||||
|
|
|
| |||||||||
Metals and Mining — 0.0% |
| |||||||||||
6,667 | Duluth Metals Ltd., expire 01/18/13† (b) | 0 | 0 | |||||||||
|
|
|
| |||||||||
TOTAL WARRANTS | 0 | 0 | ||||||||||
|
|
|
| |||||||||
Principal | ||||||||||||
U.S. GOVERNMENT OBLIGATIONS — 23.9% |
| |||||||||||
$129,846,000 | U.S. Treasury Bills, | 129,826,313 | 129,831,975 | |||||||||
|
|
|
| |||||||||
TOTAL INVESTMENTS — 100.2% | $ | 535,605,682 | 544,190,812 | |||||||||
|
| |||||||||||
Other Assets and Liabilities |
| (1,329,563 | ) | |||||||||
|
| |||||||||||
NET ASSETS — 100.0% |
| $ | 542,861,249 | |||||||||
|
|
(a) | Security considered an affiliated holding because the Fund owns at least 5% of its outstanding shares. |
(b) | 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, 2011, the market value of fair valued securities amounted to $376,735 or 0.07% of net assets. |
(c) | At September 30, 2011, the Fund held investments in restricted and illiquid securities amounting to $56,600 or 0.01% of net assets, which were valued under methods approved by the Board of Trustees, as follows: |
Acquisition | Issuer | Acquisition | Acquisition | 09/30/11 | ||||||||||||
6,000 | Capital Properties Inc., Cl. B | 11/20/03 | — | $ | 8.1750 | |||||||||||
2,508 | Royalty LLC | 09/09/03 | — | 3.0104 |
(d) | Denoted in units. |
† | Non-income producing security. |
†† | Represents annualized yield at date of purchase. |
ADR | American Depositary Receipt |
CVO | Contingent Value Obligation |
CVR | Contingent Value Right |
IDS | Income Deposit Securities |
See accompanying notes to financial statements.
17
GAMCO Westwood SmallCap Equity Fund
Schedule of Investments — September 30, 2011
Shares | Cost | Market | ||||||||||
COMMON STOCKS — 94.3% |
| |||||||||||
Aerospace — 3.8% | ||||||||||||
31,750 | AAR Corp. | $ | 800,533 | $ | 529,272 | |||||||
1,650 | Curtiss-Wright Corp. | 60,143 | 47,570 | |||||||||
36,000 | Hexcel Corp.† | 739,157 | 797,760 | |||||||||
4,950 | Kaman Corp. | 101,285 | 137,857 | |||||||||
|
|
|
| |||||||||
1,701,118 | 1,512,459 | |||||||||||
|
|
|
| |||||||||
Automotive — 1.5% |
| |||||||||||
1,200 | Navistar International Corp.† | 49,917 | 38,544 | |||||||||
20,000 | Penske Automotive Group Inc. | 410,451 | 320,000 | |||||||||
11,300 | Rush Enterprises Inc., Cl. A† | 181,208 | 160,008 | |||||||||
13,700 | Wabash National Corp.† | 116,501 | 65,349 | |||||||||
|
|
|
| |||||||||
758,077 | 583,901 | |||||||||||
|
|
|
| |||||||||
Automotive: Parts and Accessories — 0.5% |
| |||||||||||
11,050 | Federal-Mogul Corp.† | 233,421 | 162,988 | |||||||||
1,750 | Superior Industries International Inc. | 27,088 | 27,038 | |||||||||
|
|
|
| |||||||||
260,509 | 190,026 | |||||||||||
|
|
|
| |||||||||
Aviation: Parts and Services — 0.5% |
| |||||||||||
13,450 | Ducommun Inc. | 315,282 | 201,481 | |||||||||
|
|
|
| |||||||||
Building and Construction — 3.3% |
| |||||||||||
25,450 | Dycom Industries Inc.† | 420,011 | 389,385 | |||||||||
28,750 | Insituform Technologies Inc., Cl. A† | 529,727 | 332,925 | |||||||||
33,300 | MYR Group Inc.† | 806,764 | 587,412 | |||||||||
|
|
|
| |||||||||
1,756,502 | 1,309,722 | |||||||||||
|
|
|
| |||||||||
Business Services — 5.5% |
| |||||||||||
30,150 | ABM Industries Inc. | 676,645 | 574,659 | |||||||||
21,050 | Convergys Corp.† | 268,680 | 197,449 | |||||||||
23,600 | Fortegra Financial Corp.† | 181,443 | 123,900 | |||||||||
18,050 | FTI Consulting Inc.† | 659,856 | 664,420 | |||||||||
7,600 | G & K Services Inc., Cl. A | 227,957 | 194,104 | |||||||||
7,000 | GP Strategies Corp.† | 47,363 | 69,930 | |||||||||
3,100 | Healthcare Services Group Inc. | 38,915 | 50,034 | |||||||||
40,550 | PRGX Global Inc.† | 274,219 | 191,396 | |||||||||
3,900 | Tetra Tech Inc.† | 88,097 | 73,086 | |||||||||
13,000 | Tier Technologies Inc.† | 77,463 | 47,970 | |||||||||
|
|
|
| |||||||||
2,540,638 | 2,186,948 | |||||||||||
|
|
|
| |||||||||
Commercial Services — 1.1% |
| |||||||||||
21,400 | Checkpoint Systems Inc.† | 357,761 | 290,612 | |||||||||
2,200 | ICF International Inc.† | 49,870 | 41,382 | |||||||||
8,150 | KAR Auction Services Inc.† | 118,642 | 98,697 | |||||||||
|
|
|
| |||||||||
526,273 | 430,691 | |||||||||||
|
|
|
| |||||||||
Communications Equipment — 0.1% | ||||||||||||
8,500 | Symmetricom Inc.† | 36,993 | 36,890 | |||||||||
|
|
|
| |||||||||
Computer Hardware — 2.3% | ||||||||||||
6,450 | NCR Corp.† | 79,197 | 108,941 | |||||||||
64,100 | QLogic Corp.† | 1,040,974 | 812,788 | |||||||||
|
|
|
| |||||||||
1,120,171 | 921,729 | |||||||||||
|
|
|
| |||||||||
Computer Software and Services — 5.3% |
| |||||||||||
15,200 | Akamai Technologies Inc.† | 441,491 | 302,176 | |||||||||
7,400 | Belden Inc. | 199,449 | 190,846 | |||||||||
4,300 | Bottomline Technologies Inc.† | 72,316 | 86,602 | |||||||||
17,100 | Callidus Software Inc.† | 104,387 | 78,831 | |||||||||
8,300 | Dynamics Research Corp.† | 114,125 | 74,036 | |||||||||
7,850 | Evolving Systems Inc. | 55,207 | 49,847 | |||||||||
6,100 | Fair Isaac Corp. | 141,485 | 133,163 | |||||||||
23,350 | Magma Design Automation Inc.† | 79,819 | 106,242 | |||||||||
5,200 | Mercury Computer Systems Inc.† | 50,180 | �� | 59,800 | ||||||||
40,200 | Netscout Systems Inc.† | 626,860 | 459,084 | |||||||||
13,000 | Parametric Technology Corp.† | 225,105 | 199,940 | |||||||||
15,900 | Progress Software Corp.† | 337,664 | 279,045 | |||||||||
5,200 | Quest Software Inc.† | 81,827 | 82,576 | |||||||||
|
|
|
| |||||||||
2,529,915 | 2,102,188 | |||||||||||
|
|
|
|
Shares | Cost | Market | ||||||||||
Consumer Products — 1.4% |
| |||||||||||
17,650 | A. T. Cross Co., Cl. A† | $ | 198,011 | $ | 199,092 | |||||||
10,700 | Hanesbrands Inc.† | 324,209 | 267,607 | |||||||||
6,350 | Knoll Inc. | 84,004 | 86,995 | |||||||||
|
|
|
| |||||||||
606,224 | 553,694 | |||||||||||
|
|
|
| |||||||||
Diversified Industrial — 6.1% |
| |||||||||||
2,750 | A.M. Castle & Co.† | 30,515 | 30,085 | |||||||||
18,200 | Badger Meter Inc. | 657,326 | 526,526 | |||||||||
11,550 | Barnes Group Inc. | 262,530 | 222,337 | |||||||||
29,960 | Columbus McKinnon Corp.† | 536,373 | 328,362 | |||||||||
10,081 | Federal Signal Corp. | 82,068 | 44,558 | |||||||||
12,900 | Furmanite Corp.† | 80,503 | 69,789 | |||||||||
5,138 | Griffon Corp.† | 44,983 | 42,029 | |||||||||
6,650 | Kaydon Corp. | 248,182 | 190,722 | |||||||||
10,450 | Kennametal Inc. | 419,337 | 342,133 | |||||||||
6,200 | Lawson Products Inc. | 137,715 | 83,824 | |||||||||
14,500 | RSC Holdings Inc.† | 182,479 | 103,385 | |||||||||
10,700 | Sealed Air Corp. | 239,940 | 178,690 | |||||||||
7,100 | Texas Industries Inc. | 307,190 | 225,354 | |||||||||
2,300 | Tredegar Corp. | 32,716 | 34,109 | |||||||||
|
|
|
| |||||||||
3,261,857 | 2,421,903 | |||||||||||
|
|
|
| |||||||||
Electronics — 10.2% |
| |||||||||||
8,700 | Avnet Inc.† | 241,991 | 226,896 | |||||||||
15,900 | Ballantyne Strong Inc.† | 80,051 | 48,972 | |||||||||
51,650 | Electro Scientific Industries Inc.† | 829,841 | 614,119 | |||||||||
21,800 | General Cable Corp.† | 771,162 | 509,030 | |||||||||
8,050 | International Rectifier Corp.† | 127,091 | 149,891 | |||||||||
45,750 | LeCroy Corp.† | 356,342 | 361,425 | |||||||||
7,600 | Molex Inc. | 139,049 | 154,812 | |||||||||
32,600 | Newport Corp.† | 458,261 | 352,406 | |||||||||
5,600 | Park Electrochemical Corp. | 127,230 | 119,672 | |||||||||
55,300 | Pulse Electronics Corp. | 272,648 | 158,158 | |||||||||
41,400 | Radisys Corp.† | 328,323 | 253,368 | |||||||||
25,400 | TTM Technologies Inc.† | 334,594 | 241,554 | |||||||||
10,000 | Ultralife Corp.† | 45,261 | 49,900 | |||||||||
10,550 | Vishay Intertechnology Inc.† | 71,604 | 88,198 | |||||||||
22,100 | Woodward Inc. | 728,556 | 605,540 | |||||||||
5,050 | Zebra Technologies Corp., Cl. A† | 127,588 | 156,247 | |||||||||
|
|
|
| |||||||||
5,039,592 | 4,090,188 | |||||||||||
|
|
|
| |||||||||
Energy and Utilities — 8.7% |
| |||||||||||
4,600 | Approach Resources Inc.† | 76,969 | 78,154 | |||||||||
13,100 | Brigham Exploration Co.† | 283,300 | 330,906 | |||||||||
6,000 | Complete Production Services Inc.† | 133,048 | 113,100 | |||||||||
18,000 | Comstock Resources Inc.† | 461,279 | 278,280 | |||||||||
3,100 | Energy XXI Bermuda Ltd.† | 107,029 | 66,495 | |||||||||
43,600 | Goodrich Petroleum Corp.† | 790,660 | 515,352 | |||||||||
7,850 | Gulf Island Fabrication Inc. | 227,070 | 162,338 | |||||||||
22,550 | Key Energy Services Inc.† | 358,648 | 213,999 | |||||||||
16,250 | Matrix Service Co.† | 180,848 | 138,287 | |||||||||
42,500 | Newpark Resources Inc.† | 317,985 | 258,825 | |||||||||
25,300 | Patterson-UTI Energy Inc. | 695,921 | 438,702 | |||||||||
35,050 | PetroQuest Energy Inc.† | 283,597 | 192,775 | |||||||||
16,150 | Pike Electric Corp.† | 151,825 | 109,336 | |||||||||
46,850 | Pioneer Drilling Co.† | 550,163 | 336,383 | |||||||||
4,700 | Tesco Corp.† | 50,921 | 54,520 | |||||||||
42,050 | Union Drilling Inc.† | 400,488 | 197,635 | |||||||||
|
|
|
| |||||||||
5,069,751 | 3,485,087 | |||||||||||
|
|
|
| |||||||||
Entertainment — 0.2% |
| |||||||||||
6,750 | Take-Two Interactive Software Inc.† | 65,949 | 85,860 | |||||||||
|
|
|
| |||||||||
Equipment and Supplies — 4.0% |
| |||||||||||
1,800 | AZZ Inc. | 65,344 | 69,786 | |||||||||
2,600 | CIRCOR International Inc. | 114,168 | 76,362 | |||||||||
14,500 | Crown Holdings Inc.† | 540,375 | 443,845 | |||||||||
9,950 | GrafTech International Ltd.† | 148,047 | 126,365 | |||||||||
4,300 | IDEX Corp. | 129,145 | 133,988 | |||||||||
15,050 | Mine Safety Appliances Co. | 486,500 | 405,748 |
See accompanying notes to financial statements.
18
GAMCO Westwood SmallCap Equity Fund
Schedule of Investments (Continued) — September 30, 2011
Shares | Cost | Market | ||||||||||
COMMON STOCKS (Continued) |
| |||||||||||
Equipment and Supplies (Continued) |
| |||||||||||
5,000 | Moog Inc., Cl. A† | $ | 163,424 | $ | 163,100 | |||||||
2,750 | The Greenbrier Companies Inc.† | 38,370 | 32,037 | |||||||||
16,400 | USG Corp.† | 118,226 | 110,372 | |||||||||
3,650 | Vicor Corp. | 36,415 | 31,938 | |||||||||
|
|
|
| |||||||||
1,840,014 | 1,593,541 | |||||||||||
|
|
|
| |||||||||
Financial Services — 11.7% |
| |||||||||||
6,350 | Anchor Bancorp.† | 62,204 | 39,433 | |||||||||
5,300 | Astoria Financial Corp. | 73,979 | 40,757 | |||||||||
2,200 | BankUnited Inc. | 60,869 | 45,672 | |||||||||
8,300 | Boston Private Financial Holdings Inc. | 57,934 | 48,804 | |||||||||
30,650 | Brown & Brown Inc. | 717,904 | 545,570 | |||||||||
4,000 | Cardinal Financial Corp. | 33,974 | 34,480 | |||||||||
5,500 | Columbia Banking System Inc. | 88,486 | 78,760 | |||||||||
2,100 | Epoch Holding Corp. | 22,914 | 28,497 | |||||||||
9,450 | Fidelity National Financial Inc., Cl. A | 148,797 | 143,451 | |||||||||
5,300 | Financial Institutions Inc. | 86,028 | 75,578 | |||||||||
32,595 | First Niagara Financial Group Inc. | 394,851 | 298,244 | |||||||||
15,900 | Flushing Financial Corp. | 208,360 | 171,720 | |||||||||
5,300 | HF Financial Corp. | 44,616 | 45,474 | |||||||||
9,495 | Hudson Valley Holding Corp. | 179,039 | 165,498 | |||||||||
16,050 | KBW Inc. | 337,029 | 221,329 | |||||||||
8,300 | Knight Capital Group Inc., Cl. A† | 112,581 | 100,928 | |||||||||
15,500 | Meadowbrook Insurance Group Inc. | 146,464 | 138,105 | |||||||||
13,450 | Nara Bancorp Inc.† | 101,100 | 81,641 | |||||||||
6,450 | National Penn Bancshares Inc. | 36,885 | 45,214 | |||||||||
6,450 | OceanFirst Financial Corp. | 85,843 | 75,272 | |||||||||
4,000 | Old National Bancorp | 43,365 | 37,280 | |||||||||
20,350 | Oriental Financial Group Inc. | 245,371 | 196,785 | |||||||||
2,200 | Piper Jaffray Companies† | 72,949 | 39,446 | |||||||||
13,450 | Sterling Bancorp | 137,836 | 97,647 | |||||||||
13,700 | Stifel Financial Corp.† | 462,804 | 363,872 | |||||||||
4,150 | SVB Financial Group† | 165,988 | 153,550 | |||||||||
11,500 | Texas Capital Bancshares Inc.† | 282,872 | 262,775 | |||||||||
21,400 | The Bancorp Inc.† | 180,328 | 153,224 | |||||||||
5,050 | The Navigators Group Inc.† | 244,368 | 218,160 | |||||||||
19,400 | Trustco Bank Corp NY | 89,069 | 86,524 | |||||||||
6,650 | Umpqua Holdings Corp. | 66,329 | 58,454 | |||||||||
11,927 | Valley National Bancorp | 151,413 | 126,307 | |||||||||
14,400 | Washington Federal Inc. | 234,922 | 183,456 | |||||||||
10,000 | Washington Trust Bancorp Inc. | 205,868 | 197,800 | |||||||||
4,050 | Westfield Financial Inc. | 36,547 | 26,690 | |||||||||
19,200 | Xenith Bankshares Inc.† | 80,380 | 64,704 | |||||||||
|
|
|
| |||||||||
5,700,266 | 4,691,101 | |||||||||||
|
|
|
| |||||||||
Food Products — 0.4% |
| |||||||||||
17,400 | Viterra Inc. | 188,908 | 171,194 | |||||||||
|
|
|
| |||||||||
Health Care — 7.1% |
| |||||||||||
12,450 | AngioDynamics Inc.† | 169,952 | 163,593 | |||||||||
6,700 | ArthroCare Corp.† | 210,461 | 192,759 | |||||||||
2,900 | ICU Medical Inc.† | 112,793 | 106,720 | |||||||||
4,800 | Kindred Healthcare Inc.† | 88,248 | 41,376 | |||||||||
14,950 | Omnicare Inc. | 453,905 | 380,179 | |||||||||
7,450 | Omnicell Inc.† | 94,300 | 102,661 | |||||||||
31,550 | Patterson Companies Inc. | 956,349 | 903,277 | |||||||||
5,725 | Rochester Medical Corp.† | 56,020 | 43,625 | |||||||||
5,400 | STERIS Corp. | 184,252 | 158,058 | |||||||||
4,250 | Teleflex Inc. | 251,707 | 228,523 | |||||||||
5,200 | Thoratec Corp.† | 143,363 | 169,728 | |||||||||
23,200 | VCA Antech Inc.† | 459,793 | 370,736 | |||||||||
|
|
|
| |||||||||
3,181,143 | 2,861,235 | |||||||||||
|
|
|
| |||||||||
Health Care Providers and Services — 0.2% |
| |||||||||||
16,100 | AMN Healthcare Services Inc.† | 107,389 | 64,561 | |||||||||
|
|
|
| |||||||||
IT Services — 1.7% |
| |||||||||||
34,700 | Heartland Payment Systems Inc. | 680,574 | 684,284 | |||||||||
|
|
|
|
Shares | Cost | Market | ||||||||||
Machinery — 1.6% |
| |||||||||||
3,800 | DXP Enterprises Inc.† | $ | 56,415 | $ | 71,554 | |||||||
20,850 | Flow International Corp.† | 74,763 | 46,078 | |||||||||
4,300 | Lydall Inc.† | 37,401 | 38,270 | |||||||||
6,900 | The Manitowoc Co. Inc. | 56,180 | 46,299 | |||||||||
20,600 | Trinity Industries Inc. | 551,592 | 441,046 | |||||||||
|
|
|
| |||||||||
776,351 | 643,247 | |||||||||||
|
|
|
| |||||||||
Metals and Mining — 2.2% |
| |||||||||||
5,950 | Carpenter Technology Corp. | 269,841 | 267,095 | |||||||||
17,450 | Century Aluminum Co.† | 257,568 | 156,003 | |||||||||
5,300 | Commercial Metals Co. | 81,000 | 50,403 | |||||||||
18,100 | Globe Specialty Metals Inc. | 322,987 | 262,812 | |||||||||
11,000 | Titanium Metals Corp. | 170,786 | 164,780 | |||||||||
|
|
|
| |||||||||
1,102,182 | 901,093 | |||||||||||
|
|
|
| |||||||||
Publishing — 0.4% |
| |||||||||||
2,100 | Meredith Corp. | 59,172 | 47,544 | |||||||||
13,250 | The Dolan Co.† | 125,542 | 119,117 | |||||||||
|
|
|
| |||||||||
184,714 | 166,661 | |||||||||||
|
|
|
| |||||||||
Restaurants — 0.1% |
| |||||||||||
5,500 | Morton’s Restaurant Group Inc.† | 35,473 | 26,290 | |||||||||
|
|
|
| |||||||||
Retail — 5.6% |
| |||||||||||
30,550 | American Eagle Outfitters Inc. | 423,206 | 358,046 | |||||||||
29,750 | Ethan Allen Interiors Inc. | 577,211 | 404,897 | |||||||||
13,300 | Lumber Liquidators Holdings Inc.† | 206,204 | 200,830 | |||||||||
32,100 | Office Depot Inc.† | 140,841 | 66,126 | |||||||||
18,850 | RadioShack Corp. | 263,419 | 219,037 | |||||||||
16,900 | Stage Stores Inc. | 275,067 | 234,403 | |||||||||
38,150 | The Jones Group Inc. | 483,824 | 351,361 | |||||||||
42,800 | The Pep Boys - Manny, Moe & Jack | 549,365 | 422,436 | |||||||||
|
|
|
| |||||||||
2,919,137 | 2,257,136 | |||||||||||
|
|
|
| |||||||||
Semiconductors — 6.0% |
| |||||||||||
23,450 | Advanced Energy Industries Inc.† | 289,780 | 202,139 | |||||||||
39,900 | ATMI Inc.† | 749,440 | 631,218 | |||||||||
14,000 | Brooks Automation Inc. | 101,511 | 114,100 | |||||||||
14,000 | Cascade Microtech Inc.† | 77,204 | 50,820 | |||||||||
30,300 | Cohu Inc. | 409,799 | 299,364 | |||||||||
68,500 | FormFactor Inc.† | 633,640 | 426,755 | |||||||||
32,100 | Integrated Device Technology Inc.† | 240,510 | 165,315 | |||||||||
6,500 | Intersil Corp., Cl. A | 69,620 | 66,885 | |||||||||
1,900 | MKS Instruments Inc. | 42,040 | 41,249 | |||||||||
11,400 | ON Semiconductor Corp.† | 79,234 | 81,738 | |||||||||
7,000 | Pericom Semiconductor Corp.† | 55,806 | 51,870 | |||||||||
44,700 | Rubicon Ltd.† | 40,154 | 13,631 | |||||||||
6,450 | STEC Inc.† | 73,830 | 65,403 | |||||||||
13,700 | Ultra Clean Holdings† | 39,115 | 58,773 | |||||||||
6,400 | Ultratech Inc.† | 158,203 | 109,760 | |||||||||
1,000 | Veeco Instruments Inc.† | 36,004 | 24,400 | |||||||||
|
|
|
| |||||||||
3,095,890 | 2,403,420 | |||||||||||
|
|
|
| |||||||||
Specialty Chemicals — 1.3% |
| |||||||||||
32,569 | Ferro Corp.† | 365,424 | 200,299 | |||||||||
2,900 | Olin Corp. | 62,752 | 52,229 | |||||||||
2,450 | Valspar Corp. | 58,053 | 76,465 | |||||||||
11,800 | Zep Inc. | 207,115 | 177,236 | |||||||||
|
|
|
| |||||||||
693,344 | 506,229 | |||||||||||
|
|
|
| |||||||||
Telecommunications — 1.4% |
| |||||||||||
6,350 | Atlantic Tele-Network Inc. | 234,327 | 208,788 | |||||||||
35,100 | Sierra Wireless Inc.† | 358,938 | 240,435 | |||||||||
38,500 | TeleCommunication Systems Inc., Cl. A† | 173,662 | 132,825 | |||||||||
|
|
|
| |||||||||
766,927 | 582,048 | |||||||||||
|
|
|
| |||||||||
Transportation — 0.1% |
| |||||||||||
1,750 | Marten Transport Ltd. | 38,289 | 30,170 | |||||||||
|
|
|
| |||||||||
TOTAL COMMON STOCKS | 46,899,452 | 37,694,977 | ||||||||||
|
|
|
|
See accompanying notes to financial statements.
19
GAMCO Westwood SmallCap Equity Fund
Schedule of Investments (Continued) — September 30, 2011
Principal | Cost | Market | ||||||||||
U.S. GOVERNMENT OBLIGATIONS — 5.7% |
| |||||||||||
$2,295,000 | U.S. Treasury Bills, | $ | 2,294,660 | $ | 2,294,743 | |||||||
|
|
|
| |||||||||
TOTAL INVESTMENTS — 100.0% | $ | 49,194,112 | 39,989,720 | |||||||||
|
| |||||||||||
Other Assets and Liabilities (Net) — (0.0)% |
| (16,255 | ) | |||||||||
|
| |||||||||||
NET ASSETS — 100.0% |
| $ | 39,973,465 | |||||||||
|
|
† | 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, 2011
Shares | Cost | Market | ||||||||||
COMMON STOCKS — 80.3% |
| |||||||||||
Agriculture — 0.5% |
| |||||||||||
1,000 | Archer-Daniels-Midland Co. | $ | 28,410 | $ | 24,810 | |||||||
|
|
|
| |||||||||
Automotive — 1.5% |
| |||||||||||
4,000 | General Motors Co.† | 132,000 | 80,720 | |||||||||
|
|
|
| |||||||||
Banking — 3.2% |
| |||||||||||
4,000 | Bank of America Corp. | 49,700 | 24,480 | |||||||||
4,000 | U.S. Bancorp | 131,903 | 94,160 | |||||||||
4,802 | Valley National Bancorp | 81,798 | 50,853 | |||||||||
|
|
|
| |||||||||
263,401 | 169,493 | |||||||||||
|
|
|
| |||||||||
Computer Hardware — 4.3% |
| |||||||||||
500 | Apple Inc.† | 45,563 | 190,590 | |||||||||
200 | International Business Machines Corp. | 25,251 | 35,006 | |||||||||
|
|
|
| |||||||||
70,814 | 225,596 | |||||||||||
|
|
|
| |||||||||
Computer Software and Services — 0.4% |
| |||||||||||
1,000 | EMC Corp.† | 12,780 | 20,990 | |||||||||
|
|
|
| |||||||||
Consumer Products — 2.1% |
| |||||||||||
2,000 | Tupperware Brands Corp. | 96,142 | 107,480 | |||||||||
|
|
|
| |||||||||
Diversified Industrial — 3.4% |
| |||||||||||
6,000 | General Electric Co. | 94,338 | 91,440 | |||||||||
2,000 | Honeywell International Inc. | 78,538 | 87,820 | |||||||||
|
|
|
| |||||||||
172,876 | 179,260 | |||||||||||
|
|
|
| |||||||||
Electronics — 3.3% |
| |||||||||||
8,000 | Intel Corp. | 188,828 | 170,640 | |||||||||
|
|
|
| |||||||||
Energy and Utilities: Integrated — 1.1% |
| |||||||||||
1,334 | FirstEnergy Corp. | 50,482 | 59,910 | |||||||||
|
|
|
| |||||||||
Energy and Utilities: Natural Gas — 2.8% |
| |||||||||||
6,000 | Spectra Energy Corp. | 155,279 | 147,180 | |||||||||
|
|
|
| |||||||||
Energy and Utilities: Oil — 6.7% |
| |||||||||||
1,500 | Chevron Corp. | 127,333 | 138,780 | |||||||||
2,500 | ConocoPhillips | 200,189 | 158,300 | |||||||||
1,000 | Devon Energy Corp. | 47,078 | 55,440 | |||||||||
|
|
|
| |||||||||
374,600 | 352,520 | |||||||||||
|
|
|
| |||||||||
Energy and Utilities: Services — 4.4% |
| |||||||||||
5,000 | Halliburton Co. | 180,373 | 152,600 | |||||||||
1,000 | Noble Corp.† | 48,914 | 29,350 | |||||||||
1,000 | Transocean Ltd. | 82,810 | 47,740 | |||||||||
|
|
|
| |||||||||
312,097 | 229,690 | |||||||||||
|
|
|
| |||||||||
Energy and Utilities: Water — 3.7% |
| |||||||||||
6,500 | American Water Works Co. Inc. | 113,655 | 196,170 | |||||||||
|
|
|
| |||||||||
Financial Services — 4.7% |
| |||||||||||
2,700 | Citigroup Inc. | 121,500 | 69,174 | |||||||||
1,000 | JPMorgan Chase & Co. | 40,890 | 30,120 | |||||||||
6,000 | Wells Fargo & Co. | 193,140 | 144,720 | |||||||||
|
|
|
| |||||||||
355,530 | 244,014 | |||||||||||
|
|
|
|
Shares | Cost | Market | ||||||||||
Food and Beverage — 14.2% |
| |||||||||||
7,000 | ConAgra Foods Inc. | $ | 174,145 | $ | 169,540 | |||||||
6,522 | General Mills Inc. | 193,302 | 250,901 | |||||||||
6,000 | Kraft Foods Inc., Cl. A | 196,380 | 201,480 | |||||||||
2,000 | PepsiCo Inc. | 107,960 | 123,800 | |||||||||
|
|
|
| |||||||||
671,787 | 745,721 | |||||||||||
|
|
|
| |||||||||
Health Care — 10.5% |
| |||||||||||
2,883 | Bristol-Myers Squibb Co. | 70,582 | 90,468 | |||||||||
1,500 | Johnson & Johnson | 85,403 | 95,565 | |||||||||
2,520 | Mead Johnson Nutrition Co. | 107,163 | 173,452 | |||||||||
2,000 | Merck & Co. Inc. | 70,774 | 65,420 | |||||||||
6,940 | Pfizer Inc. | 146,422 | 122,699 | |||||||||
|
|
|
| |||||||||
480,344 | 547,604 | |||||||||||
|
|
|
| |||||||||
Metals and Mining — 1.2% |
| |||||||||||
1,000 | Newmont Mining Corp. | 53,974 | 62,900 | |||||||||
|
|
|
| |||||||||
Paper and Forest Products — 2.2% |
| |||||||||||
5,000 | International Paper Co. | 144,201 | 116,250 | |||||||||
|
|
|
| |||||||||
Retail — 1.3% |
| |||||||||||
2,000 | The Home Depot Inc. | 79,247 | 65,740 | |||||||||
|
|
|
| |||||||||
Specialty Chemicals — 4.5% |
| |||||||||||
1,000 | Air Products & Chemicals Inc. | 78,554 | 76,370 | |||||||||
4,000 | E. I. du Pont de Nemours and Co. | 198,318 | 159,880 | |||||||||
|
|
|
| |||||||||
276,872 | 236,250 | |||||||||||
|
|
|
| |||||||||
Telecommunications — 4.3% |
| |||||||||||
4,000 | AT&T Inc. | 128,045 | 114,080 | |||||||||
3,000 | Verizon Communications Inc. | 118,791 | 110,400 | |||||||||
|
|
|
| |||||||||
246,836 | 224,480 | |||||||||||
|
|
|
| |||||||||
TOTAL COMMON STOCKS | 4,280,155 | 4,207,418 | ||||||||||
|
|
|
| |||||||||
PREFERRED STOCKS — 5.9% |
| |||||||||||
Financial Services — 5.9% |
| |||||||||||
12,000 | Bank One Capital Trust VI, | 305,738 | 310,320 | |||||||||
|
|
|
| |||||||||
Principal | ||||||||||||
U.S. GOVERNMENT OBLIGATIONS — 11.6% |
| |||||||||||
$ 609,000 | U.S. Treasury Bills, | 608,923 | 608,932 | |||||||||
|
|
|
| |||||||||
TOTAL INVESTMENTS — 97.8% | $ | 5,194,816 | 5,126,670 | |||||||||
|
| |||||||||||
Other Assets and Liabilities (Net) — 2.2% |
| 114,579 | ||||||||||
|
| |||||||||||
NET ASSETS — 100.0% |
| $ | 5,241,249 | |||||||||
|
|
† | Non-income producing security. |
†† | Represents annualized yield at date of purchase. |
See accompanying notes to financial statements.
21
GAMCO Westwood Equity Fund
Schedule of Investments — September 30, 2011
Shares | Cost | Market | ||||||||||
COMMON STOCKS — 98.5% |
| |||||||||||
Aerospace — 3.0% |
| |||||||||||
14,900 | General Dynamics Corp. | $ | 1,151,680 | $ | 847,661 | |||||||
28,600 | The Boeing Co. | 1,751,978 | 1,730,586 | |||||||||
|
|
|
| |||||||||
2,903,658 | 2,578,247 | |||||||||||
|
|
|
| |||||||||
Automotive — 1.9% |
| |||||||||||
79,500 | General Motors Co.† | 2,697,836 | 1,604,310 | |||||||||
|
|
|
| |||||||||
Banking — 7.9% |
| |||||||||||
259,200 | Bank of America Corp. | 3,327,594 | 1,586,304 | |||||||||
53,400 | CIT Group Inc.† | 2,033,673 | 1,621,758 | |||||||||
57,384 | JPMorgan Chase & Co. | 1,813,639 | 1,728,406 | |||||||||
73,400 | Wells Fargo & Co. | 1,831,454 | 1,770,408 | |||||||||
|
|
|
| |||||||||
9,006,360 | 6,706,876 | |||||||||||
|
|
|
| |||||||||
Cable and Satellite — 1.9% |
| |||||||||||
78,900 | Comcast Corp., Cl. A | 1,374,387 | 1,649,010 | |||||||||
|
|
|
| |||||||||
Computer Hardware — 3.0% |
| |||||||||||
180,900 | Dell Inc.† | 2,658,218 | 2,559,735 | |||||||||
|
|
|
| |||||||||
Computer Software and Services — 4.0% |
| |||||||||||
68,600 | Microsoft Corp. | 2,035,370 | 1,707,454 | |||||||||
57,700 | Oracle Corp. | 1,565,666 | 1,658,298 | |||||||||
|
|
|
| |||||||||
3,601,036 | 3,365,752 | |||||||||||
|
|
|
| |||||||||
Consumer Products — 2.1% |
| |||||||||||
28,280 | Philip Morris International Inc. | 1,335,904 | 1,764,107 | |||||||||
|
|
|
| |||||||||
Diversified Industrial — 5.0% |
| |||||||||||
38,200 | Honeywell International Inc. | 1,526,937 | 1,677,362 | |||||||||
61,300 | ITT Corp. | 2,902,791 | 2,574,600 | |||||||||
|
|
|
| |||||||||
4,429,728 | 4,251,962 | |||||||||||
|
|
|
| |||||||||
Electronics — 4.0% |
| |||||||||||
76,200 | Intel Corp. | 1,608,902 | 1,625,346 | |||||||||
61,800 | TE Connectivity Ltd. | 2,238,844 | 1,739,052 | |||||||||
|
|
|
| |||||||||
3,847,746 | 3,364,398 | |||||||||||
|
|
|
| |||||||||
Energy: Integrated — 3.1% |
| |||||||||||
45,400 | American Electric Power Co. Inc. | 1,572,016 | 1,726,108 | |||||||||
17,200 | Dominion Resources Inc. | 664,061 | 873,244 | |||||||||
|
|
|
| |||||||||
2,236,077 | 2,599,352 | |||||||||||
|
|
|
| |||||||||
Energy: Natural Gas — 6.1% |
| |||||||||||
20,006 | Apache Corp. | 1,518,203 | 1,605,281 | |||||||||
32,500 | EQT Corp. | 1,347,543 | 1,734,200 | |||||||||
35,100 | Sempra Energy | 1,809,405 | 1,807,650 | |||||||||
|
|
|
| |||||||||
4,675,151 | 5,147,131 | |||||||||||
|
|
|
| |||||||||
Energy: Oil — 10.8% |
| |||||||||||
24,200 | Anadarko Petroleum Corp. | 1,188,955 | 1,525,810 | |||||||||
20,800 | Chevron Corp. | 1,430,145 | 1,924,416 | |||||||||
23,500 | Exxon Mobil Corp. | 1,689,134 | 1,706,805 | |||||||||
40,300 | Newfield Exploration Co.† | 2,507,596 | 1,599,507 | |||||||||
33,810 | Occidental Petroleum Corp. | 2,225,289 | 2,417,415 | |||||||||
|
|
|
| |||||||||
9,041,119 | 9,173,953 | |||||||||||
|
|
|
| |||||||||
Entertainment — 4.2% |
| |||||||||||
58,100 | The Walt Disney Co. | 1,733,761 | 1,752,296 | |||||||||
60,400 | Time Warner Inc. | 1,788,628 | 1,810,188 | |||||||||
|
|
|
| |||||||||
3,522,389 | 3,562,484 | |||||||||||
|
|
|
|
Shares | Cost | Market | ||||||||||
Financial Services — 12.0% |
| |||||||||||
28,600 | ACE Ltd. | $ | 1,312,158 | $ | 1,733,160 | |||||||
45,100 | Aflac Inc. | 2,206,143 | 1,576,245 | |||||||||
42,500 | Ameriprise Financial Inc. | 1,803,982 | 1,672,800 | |||||||||
16,900 | Franklin Resources Inc. | 1,829,971 | 1,616,316 | |||||||||
63,200 | MetLife Inc. | 2,492,521 | 1,770,232 | |||||||||
36,800 | The Travelers Companies Inc. | 1,618,845 | 1,793,264 | |||||||||
|
|
|
| |||||||||
11,263,620 | 10,162,017 | |||||||||||
|
|
|
| |||||||||
Food and Beverage — 1.1% |
| |||||||||||
36,300 | Sysco Corp. | 827,956 | 940,170 | |||||||||
|
|
|
| |||||||||
Health Care — 14.6% |
| |||||||||||
33,600 | Abbott Laboratories | 1,732,286 | 1,718,304 | |||||||||
27,600 | Bristol-Myers Squibb Co. | 664,162 | 866,088 | |||||||||
39,700 | Covidien plc | 1,534,940 | 1,750,770 | |||||||||
42,600 | Johnson & Johnson | 2,597,957 | 2,714,046 | |||||||||
27,100 | Merck & Co. Inc. | 844,943 | 886,441 | |||||||||
148,100 | Pfizer Inc. | 2,416,914 | 2,618,408 | |||||||||
48,000 | Teva Pharmaceutical Industries Ltd., ADR | 2,528,958 | 1,786,560 | |||||||||
|
|
|
| |||||||||
12,320,160 | 12,340,617 | |||||||||||
|
|
|
| |||||||||
Machinery — 0.9% |
| |||||||||||
12,100 | Deere & Co. | 530,725 | 781,297 | |||||||||
|
|
|
| |||||||||
Retail — 4.2% |
| |||||||||||
51,500 | CVS Caremark Corp. | 1,525,241 | 1,729,370 | |||||||||
35,600 | Wal-Mart Stores Inc. | 1,930,401 | 1,847,640 | |||||||||
|
|
|
| |||||||||
3,455,642 | 3,577,010 | |||||||||||
|
|
|
| |||||||||
Specialty Chemicals — 3.7% |
| |||||||||||
40,100 | E. I. du Pont de Nemours and Co. | 1,262,833 | 1,602,797 | |||||||||
68,900 | The Dow Chemical Co. | 2,278,227 | 1,547,494 | |||||||||
|
|
|
| |||||||||
3,541,060 | 3,150,291 | |||||||||||
|
|
|
| |||||||||
Telecommunications — 3.0% |
| |||||||||||
89,900 | AT&T Inc. | 2,435,151 | 2,563,948 | |||||||||
|
|
|
| |||||||||
Transportation — 2.0% |
| |||||||||||
21,200 | Union Pacific Corp. | 1,137,033 | 1,731,404 | |||||||||
|
|
|
| |||||||||
TOTAL COMMON STOCKS | 86,840,956 | 83,574,071 | ||||||||||
|
|
|
| |||||||||
SHORT-TERM INVESTMENTS — 0.9% |
| |||||||||||
Mutual Funds — 0.9% |
| |||||||||||
790,302 | Dreyfus Treasury & Agency Cash Management Fund, 0.050%* | 790,302 | 790,302 | |||||||||
|
|
|
| |||||||||
TOTAL INVESTMENTS — 99.4% | $ | 87,631,258 | 84,364,373 | |||||||||
|
| |||||||||||
Other Assets and Liabilities (Net) — 0.6% |
| 483,070 | ||||||||||
|
| |||||||||||
NET ASSETS — 100.0% |
| $ | 84,847,443 | |||||||||
|
|
† | Non-income producing security. |
* | Current yield. |
ADR | American Depositary Receipt |
See accompanying notes to financial statements.
22
GAMCO Westwood Balanced Fund
Schedule of Investments — September 30, 2011
Shares | Cost | Market | ||||||||||
COMMON STOCKS — 57.9% |
| |||||||||||
Aerospace — 1.8% |
| |||||||||||
8,800 | General Dynamics Corp. | $ | 659,025 | $ | 500,632 | |||||||
17,400 | The Boeing Co. | 1,074,936 | 1,052,874 | |||||||||
|
|
|
| |||||||||
1,733,961 | 1,553,506 | |||||||||||
|
|
|
| |||||||||
Automotive — 1.1% |
| |||||||||||
47,600 | General Motors Co.† | 1,624,011 | 960,568 | |||||||||
|
|
|
| |||||||||
Banking — 4.6% |
| |||||||||||
158,400 | Bank of America Corp. | 1,773,019 | 969,408 | |||||||||
32,600 | CIT Group Inc.† | 1,224,660 | 990,062 | |||||||||
34,296 | JPMorgan Chase & Co. | 994,165 | 1,032,996 | |||||||||
44,000 | Wells Fargo & Co. | 1,113,911 | 1,061,280 | |||||||||
|
|
|
| |||||||||
5,105,755 | 4,053,746 | |||||||||||
|
|
|
| |||||||||
Cable and Satellite — 1.2% |
| |||||||||||
51,400 | Comcast Corp., Cl. A | 908,380 | 1,074,260 | |||||||||
|
|
|
| |||||||||
Computer Hardware — 1.8% |
| |||||||||||
109,700 | Dell Inc.† | 1,614,652 | 1,552,255 | |||||||||
|
|
|
| |||||||||
Computer Software and Services — 2.3% |
| |||||||||||
40,900 | Microsoft Corp. | 1,194,408 | 1,018,001 | |||||||||
35,300 | Oracle Corp. | 957,728 | 1,014,522 | |||||||||
|
|
|
| |||||||||
2,152,136 | 2,032,523 | |||||||||||
|
|
|
| |||||||||
Consumer Products — 1.2% |
| |||||||||||
16,220 | Philip Morris International Inc. | 750,357 | 1,011,804 | |||||||||
|
|
|
| |||||||||
Diversified Industrial — 3.0% |
| |||||||||||
23,700 | Honeywell International Inc. | 967,617 | 1,040,667 | |||||||||
37,290 | ITT Corp. | 1,802,311 | 1,566,180 | |||||||||
|
|
|
| |||||||||
2,769,928 | 2,606,847 | |||||||||||
|
|
|
| |||||||||
Electronics — 2.3% |
| |||||||||||
46,600 | Intel Corp. | 949,650 | 993,978 | |||||||||
36,300 | TE Connectivity Ltd. | 1,306,264 | 1,021,482 | |||||||||
|
|
|
| |||||||||
2,255,914 | 2,015,460 | |||||||||||
|
|
|
| |||||||||
Energy: Integrated — 1.9% |
| |||||||||||
29,300 | American Electric Power Co. Inc. | 1,005,094 | 1,113,986 | |||||||||
11,400 | Dominion Resources Inc. | 426,916 | 578,778 | |||||||||
|
|
|
| |||||||||
1,432,010 | 1,692,764 | |||||||||||
|
|
|
| |||||||||
Energy: Natural Gas — 3.5% |
| |||||||||||
12,255 | Apache Corp. | 926,171 | 983,341 | |||||||||
18,400 | EQT Corp. | 759,462 | 981,824 | |||||||||
20,900 | Sempra Energy | 1,076,644 | 1,076,350 | |||||||||
|
|
|
| |||||||||
2,762,277 | 3,041,515 | |||||||||||
|
|
|
| |||||||||
Energy: Oil — 6.4% |
| |||||||||||
14,500 | Anadarko Petroleum Corp. | 699,655 | 914,225 | |||||||||
11,600 | Chevron Corp. | 786,540 | 1,073,232 | |||||||||
15,400 | Exxon Mobil Corp. | 1,075,480 | 1,118,502 | |||||||||
24,600 | Newfield Exploration Co.† | 1,533,979 | 976,374 | |||||||||
21,000 | Occidental Petroleum Corp. | 1,338,559 | 1,501,500 | |||||||||
|
|
|
| |||||||||
5,434,213 | 5,583,833 | |||||||||||
|
|
|
| |||||||||
Entertainment — 2.4% | ||||||||||||
33,300 | The Walt Disney Co. | 939,371 | 1,004,328 | |||||||||
36,300 | Time Warner Inc. | 1,078,478 | 1,087,911 | |||||||||
|
|
|
| |||||||||
2,017,849 | 2,092,239 | |||||||||||
|
|
|
| |||||||||
Financial Services — 7.1% | ||||||||||||
17,400 | ACE Ltd. | 725,149 | 1,054,440 | |||||||||
30,300 | Aflac Inc. | 1,418,529 | 1,058,985 | |||||||||
25,800 | Ameriprise Financial Inc. | 1,095,475 | 1,015,488 | |||||||||
9,400 | Franklin Resources Inc. | 1,000,274 | 899,016 | |||||||||
38,400 | MetLife Inc. | 1,475,873 | 1,075,584 |
Shares | Cost | Market | ||||||||||
22,300 | The Travelers Companies Inc. | $ | 986,128 | $ | 1,086,679 | |||||||
|
|
|
| |||||||||
6,701,428 | 6,190,192 | |||||||||||
|
|
|
| |||||||||
Food and Beverage — 0.6% |
| |||||||||||
20,400 | Sysco Corp. | 465,297 | 528,360 | |||||||||
|
|
|
| |||||||||
Health Care — 8.5% |
| |||||||||||
19,900 | Abbott Laboratories | 1,031,095 | 1,017,686 | |||||||||
18,900 | Bristol-Myers Squibb Co. | 452,710 | 593,082 | |||||||||
21,500 | Covidien plc | 813,768 | 948,150 | |||||||||
25,900 | Johnson & Johnson | 1,616,095 | 1,650,089 | |||||||||
16,900 | Merck & Co. Inc. | 516,660 | 552,799 | |||||||||
88,100 | Pfizer Inc. | 1,430,739 | 1,557,608 | |||||||||
29,200 | Teva Pharmaceutical Industries Ltd., ADR | 1,483,481 | 1,086,824 | |||||||||
|
|
|
| |||||||||
7,344,548 | 7,406,238 | |||||||||||
|
|
|
| |||||||||
Machinery — 0.5% |
| |||||||||||
7,000 | Deere & Co. | 308,549 | 451,990 | |||||||||
|
|
|
| |||||||||
Retail — 2.5% |
| |||||||||||
30,800 | CVS Caremark Corp. | 914,379 | 1,034,264 | |||||||||
21,300 | Wal-Mart Stores Inc. | 1,154,714 | 1,105,470 | |||||||||
|
|
|
| |||||||||
2,069,093 | 2,139,734 | |||||||||||
|
|
|
| |||||||||
Specialty Chemicals — 2.2% |
| |||||||||||
24,500 | E. I. du Pont de Nemours and Co. | 814,716 | 979,265 | |||||||||
41,300 | The Dow Chemical Co. | 1,374,971 | 927,598 | |||||||||
|
|
|
| |||||||||
2,189,687 | 1,906,863 | |||||||||||
|
|
|
| |||||||||
Telecommunications — 1.9% |
| |||||||||||
59,300 | AT&T Inc. | 1,660,264 | 1,691,236 | |||||||||
|
|
|
| |||||||||
Transportation — 1.1% |
| |||||||||||
12,200 | Union Pacific Corp. | 659,721 | 996,374 | |||||||||
|
|
|
| |||||||||
TOTAL COMMON STOCKS | 51,960,030 | 50,582,307 | ||||||||||
|
|
|
| |||||||||
Principal | ||||||||||||
CORPORATE BONDS — 19.3% |
| |||||||||||
Banking — 4.6% |
| |||||||||||
$1,250,000 | Bank of America Corp., | 1,269,155 | 1,240,087 | |||||||||
750,000 | Barclays Bank plc, Ser. 1, | 777,205 | 752,501 | |||||||||
1,125,000 | Citigroup Inc., | 1,127,727 | 1,169,631 | |||||||||
750,000 | JPMorgan Chase & Co., | 770,060 | 849,791 | |||||||||
|
|
|
| |||||||||
3,944,147 | 4,012,010 | |||||||||||
|
|
|
| |||||||||
Computer Software and Services — 0.9% |
| |||||||||||
750,000 | Oracle Corp., | 750,140 | 798,457 | |||||||||
|
|
|
| |||||||||
Diversified Industrial — 1.5% | ||||||||||||
1,200,000 | General Electric Co., | 1,202,837 | 1,257,201 | |||||||||
|
|
|
| |||||||||
Electronics — 0.9% |
| |||||||||||
750,000 | Koninklijke Philips Electronics NV, 4.625%, 03/11/13 | 749,092 | 786,071 | |||||||||
|
|
|
| |||||||||
Energy: Integrated — 0.6% |
| |||||||||||
500,000 | Southern Co., | 499,721 | 533,227 | |||||||||
|
|
|
| |||||||||
Energy: Natural Gas — 1.2% |
| |||||||||||
1,000,000 | Apache Corp., | 1,002,500 | 1,064,894 | |||||||||
|
|
|
|
See accompanying notes to financial statements.
23
GAMCO Westwood Balanced Fund
Schedule of Investments (Continued) — September 30, 2011
Principal | Cost | Market | ||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||
Energy: Oil — 2.7% |
| |||||||||||
$1,000,000 | Anadarko Petroleum Corp., | $ | 983,309 | $ | 1,094,976 | |||||||
500,000 | Marathon Oil Corp., | 502,050 | 583,332 | |||||||||
500,000 | XTO Energy Inc., | 563,296 | 653,844 | |||||||||
|
|
|
| |||||||||
2,048,655 | 2,332,152 | |||||||||||
|
|
|
| |||||||||
Financial Services — 1.2% |
| |||||||||||
950,000 | ACE INA Holdings Inc., | 966,508 | 1,063,864 | |||||||||
|
|
|
| |||||||||
Food and Beverage — 1.1% |
| |||||||||||
950,000 | Anheuser-Busch Companies Inc., 4.375%, 01/15/13 | 947,090 | 987,234 | |||||||||
|
|
|
| |||||||||
Metals and Mining — 1.0% |
| |||||||||||
750,000 | BHP Billiton Finance USA Ltd., | 753,268 | 824,317 | |||||||||
|
|
|
| |||||||||
Real Estate Investment Trusts — 0.8% |
| |||||||||||
700,000 | Vornado Realty LP, | 697,873 | 726,462 | |||||||||
|
|
|
| |||||||||
Telecommunications — 0.6% |
| |||||||||||
500,000 | AT&T Inc., | 500,833 | 555,714 | |||||||||
|
|
|
| |||||||||
Transportation — 1.3% |
| |||||||||||
1,000,000 | Burlington Northern Santa | 988,441 | 1,157,638 | |||||||||
|
|
|
| |||||||||
Wireless Communications — 0.9% |
| |||||||||||
750,000 | Vodafone Group plc, | 761,022 | 806,264 | |||||||||
|
|
|
| |||||||||
TOTAL CORPORATE BONDS | 15,812,127 | 16,905,505 | ||||||||||
|
|
|
| |||||||||
Shares | ||||||||||||
SHORT-TERM INVESTMENTS — 3.5% |
| |||||||||||
Mutual Funds — 3.5% |
| |||||||||||
3,065,270 | Dreyfus Treasury & Agency Cash Management Fund, 0.050%* | 3,065,270 | 3,065,270 | |||||||||
|
|
|
| |||||||||
Principal | ||||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS — 11.4% |
| |||||||||||
Federal Home Loan Mortgage Corp. — 5.2% |
| |||||||||||
$1,500,000 | 2.125%, 03/23/12 | 1,503,997 | 1,513,765 | |||||||||
1,250,000 | 5.125%, 07/15/12 | 1,247,970 | 1,298,664 | |||||||||
1,500,000 | 3.750%, 03/27/19 | 1,495,438 | 1,697,367 | |||||||||
|
|
|
| |||||||||
4,247,405 | 4,509,796 | |||||||||||
|
|
|
|
Principal | Cost | Market | ||||||||||
Federal National Mortgage Association — 6.2% |
| |||||||||||
$1,500,000 | 5.375%, 11/15/11 | $ | 1,500,280 | $ | 1,500,280 | |||||||
1,250,000 | 4.375%, 09/15/12 | 1,279,914 | 1,298,769 | |||||||||
1,500,000 | 5.000%, 04/15/15 | 1,532,145 | 1,717,000 | |||||||||
775,000 | 5.375%, 06/12/17 | 822,856 | 941,058 | |||||||||
|
|
|
| |||||||||
5,135,195 | 5,457,107 | |||||||||||
|
|
|
| |||||||||
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS | 9,382,600 | 9,966,903 | ||||||||||
|
|
|
| |||||||||
U.S. GOVERNMENT OBLIGATIONS — 7.7% |
| |||||||||||
U.S. Treasury Bills — 1.1% |
| |||||||||||
1,000,000 | U.S. Treasury Bill, | 999,309 | 999,720 | |||||||||
|
|
|
| |||||||||
U.S. Treasury Inflation Indexed Notes — 4.4% |
| |||||||||||
1,200,000 | 2.500%, 07/15/16 | 1,347,267 | 1,543,825 | |||||||||
900,000 | 2.125%, 01/15/19 | 964,668 | 1,103,844 | |||||||||
1,000,000 | 1.375%, 01/15/20 | 1,091,358 | 1,163,935 | |||||||||
|
|
|
| |||||||||
3,403,293 | 3,811,604 | |||||||||||
|
|
|
| |||||||||
U.S. Treasury Notes — 2.2% |
| |||||||||||
750,000 | 0.750%, 08/15/13 | 750,259 | 756,650 | |||||||||
1,000,000 | 3.625%, 08/15/19 | 1,021,096 | 1,151,719 | |||||||||
|
|
|
| |||||||||
1,771,355 | 1,908,369 | |||||||||||
|
|
|
| |||||||||
TOTAL U.S. GOVERNMENT OBLIGATIONS | 6,173,957 | 6,719,693 | ||||||||||
|
|
|
| |||||||||
TOTAL INVESTMENTS — 99.8% | $ | 86,393,984 | 87,239,678 | |||||||||
|
| |||||||||||
Other Assets and Liabilities (Net) — 0.2% |
| 184,838 | ||||||||||
|
| |||||||||||
NET ASSETS — 100.0% |
| $ | 87,424,516 | |||||||||
|
|
† | Non-income producing security. |
†† | Represents annualized yield at date of purchase. |
* | Current yield. |
ADR | American Depositary Receipt |
See accompanying notes to financial statements.
24
GAMCO Westwood Intermediate Bond Fund
Schedule of Investments — September 30, 2011
Principal | Cost | Market | ||||||||||
CORPORATE BONDS — 35.7% |
| |||||||||||
Aerospace — 1.2% |
| |||||||||||
$ 200,000 | The Boeing Co., | $ | 204,415 | $ | 243,289 | |||||||
|
|
|
| |||||||||
Banking — 5.0% |
| |||||||||||
300,000 | Bank of America Corp., | 304,597 | 297,621 | |||||||||
225,000 | Barclays Bank plc, Ser. 1, | 225,887 | 225,750 | |||||||||
250,000 | Citigroup Inc., | 250,606 | 259,918 | |||||||||
200,000 | JPMorgan Chase & Co., | 198,937 | 226,611 | |||||||||
|
|
|
| |||||||||
980,027 | 1,009,900 | |||||||||||
|
|
|
| |||||||||
Computer Software and Services — 2.1% |
| |||||||||||
250,000 | �� | Microsoft Corp., | 249,832 | 255,058 | ||||||||
150,000 | Oracle Corp., | 149,983 | 159,691 | |||||||||
|
|
|
| |||||||||
399,815 | 414,749 | |||||||||||
|
|
|
| |||||||||
Consumer Products — 0.8% |
| |||||||||||
150,000 | Philip Morris International Inc., | 150,427 | 170,322 | |||||||||
|
|
|
| |||||||||
Diversified Industrial — 1.3% |
| |||||||||||
250,000 | General Electric Co., | 250,591 | 261,917 | |||||||||
|
|
|
| |||||||||
Electronics — 2.5% |
| |||||||||||
200,000 | Arrow Electronics Inc., | 199,810 | 213,939 | |||||||||
275,000 | Koninklijke Philips Electronics NV, | 278,385 | 288,226 | |||||||||
|
|
|
| |||||||||
478,195 | 502,165 | |||||||||||
|
|
|
| |||||||||
Energy and Utilities: Electric Integrated — 2.4% |
| |||||||||||
275,000 | Dominion Resources Inc., | 327,405 | 331,256 | |||||||||
150,000 | Southern Co., | 149,916 | 159,968 | |||||||||
|
|
|
| |||||||||
477,321 | 491,224 | |||||||||||
|
|
|
| |||||||||
Energy and Utilities: Natural Gas — 1.0% |
| |||||||||||
200,000 | Apache Corp., | 199,858 | 212,979 | |||||||||
|
|
|
| |||||||||
Energy and Utilities: Oil — 3.1% |
| |||||||||||
200,000 | Anadarko Petroleum Corp., | 196,664 | 218,995 | |||||||||
125,000 | Marathon Oil Corp., | 125,512 | 145,833 | |||||||||
200,000 | XTO Energy Inc., | 225,319 | 261,537 | |||||||||
|
|
|
| |||||||||
547,495 | 626,365 | |||||||||||
|
|
|
| |||||||||
Financial Services — 5.5% |
| |||||||||||
175,000 | ACE INA Holdings Inc., | 174,637 | 195,975 | |||||||||
300,000 | Berkshire Hathaway Finance Corp., | 307,610 | 312,906 | |||||||||
260,000 | International Bank for Reconstruction | 290,903 | 345,553 | |||||||||
275,000 | Merrill Lynch & Co. Inc., | 275,107 | 266,190 | |||||||||
|
|
|
| |||||||||
1,048,257 | 1,120,624 | |||||||||||
|
|
|
|
Principal | Cost | Market | ||||||||||
Food and Beverage — 3.7% |
| |||||||||||
$ 250,000 | Anheuser-Busch Companies Inc., | $ | 249,236 | $ | 259,798 | |||||||
200,000 | Dr Pepper Snapple Group Inc., | 199,973 | 203,076 | |||||||||
250,000 | Kraft Foods Inc., | 253,915 | 283,413 | |||||||||
|
|
|
| |||||||||
703,124 | 746,287 | |||||||||||
|
|
|
| |||||||||
Metals and Mining — 1.1% |
| |||||||||||
200,000 | BHP Billiton Finance USA Ltd., | 200,872 | 219,818 | |||||||||
|
|
|
| |||||||||
Real Estate Investment Trusts — 1.3% |
| |||||||||||
250,000 | Vornado Realty LP, | 249,326 | 259,451 | |||||||||
|
|
|
| |||||||||
Semiconductors — 1.8% |
| |||||||||||
350,000 | Intel Corp., | 349,170 | 358,299 | |||||||||
|
|
|
| |||||||||
Telecommunications — 1.0% |
| |||||||||||
175,000 | AT&T Inc., | 175,293 | 194,500 | |||||||||
|
|
|
| |||||||||
Transportation — 1.9% |
| |||||||||||
200,000 | Burlington Northern Santa | 199,379 | 231,528 | |||||||||
125,000 | CSX Corp., | 124,961 | 144,357 | |||||||||
|
|
|
| |||||||||
324,340 | 375,885 | |||||||||||
|
|
|
| |||||||||
TOTAL CORPORATE BONDS | 6,738,526 | 7,207,774 | ||||||||||
|
|
|
| |||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS — 27.9% |
| |||||||||||
Federal Home Loan Bank — 1.5% |
| |||||||||||
250,000 | 5.375%, 05/18/16 | 250,872 | 296,987 | |||||||||
|
|
|
| |||||||||
Federal Home Loan Mortgage Corp. — 8.4% |
| |||||||||||
400,000 | 2.125%, 03/23/12 | 401,191 | 403,671 | |||||||||
250,000 | 5.125%, 07/15/12 | 252,415 | 259,733 | |||||||||
225,000 | 5.000%, 07/15/14 | 240,436 | 253,158 | |||||||||
325,000 | 5.250%, 04/18/16 | 353,604 | 383,978 | |||||||||
350,000 | 3.750%, 03/27/19 | 345,464 | 396,052 | |||||||||
|
|
|
| |||||||||
1,593,110 | 1,696,592 | |||||||||||
|
|
|
| |||||||||
Federal National Mortgage Association — 16.3% |
| |||||||||||
250,000 | 4.375%, 09/15/12 | 256,003 | 259,754 | |||||||||
375,000 | 4.375%, 03/15/13 | 387,167 | 396,770 | |||||||||
400,000 | 0.750%, 12/18/13 | 402,865 | 401,991 | |||||||||
350,000 | 2.750%, 02/05/14 | 360,143 | 368,519 | |||||||||
500,000 | 2.625%, 11/20/14 | 530,923 | 530,366 | |||||||||
300,000 | 5.000%, 04/15/15 | 307,370 | 343,400 | |||||||||
500,000 | 2.375%, 07/28/15 | 529,394 | 526,546 | |||||||||
275,000 | 5.375%, 06/12/17 | 291,981 | 333,924 | |||||||||
54,446 | Pool # 745122, | 54,226 | 59,241 | |||||||||
59,690 | Pool # 255554, | 60,348 | 65,215 | |||||||||
|
|
|
| |||||||||
3,180,420 | 3,285,726 | |||||||||||
|
|
|
| |||||||||
Government National Mortgage Association — 1.7% |
| |||||||||||
32,582 | Pool #562288, | 33,040 | 36,523 | |||||||||
62,153 | Pool #604946, | 62,795 | 69,040 | |||||||||
50,603 | Pool #604970, | 51,000 | 56,211 | |||||||||
79,763 | Pool #003747, | 79,109 | 88,037 | |||||||||
89,424 | Pool #550728, | 89,504 | 99,194 | |||||||||
|
|
|
| |||||||||
315,448 | 349,005 | |||||||||||
|
|
|
|
See accompanying notes to financial statements.
25
GAMCO Westwood Intermediate Bond Fund
Schedule of Investments (Continued) — September 30, 2011
Principal | Cost | Market | ||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued) |
| |||||||||||
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS | $ | 5,339,850 | $ | 5,628,310 | ||||||||
|
|
|
| |||||||||
U.S. GOVERNMENT OBLIGATIONS — 23.7% |
| |||||||||||
U.S. Treasury Bills — 1.5% |
| |||||||||||
$ 300,000 | U.S. Treasury Bill, | 299,793 | 299,916 | |||||||||
|
|
|
| |||||||||
U.S. Treasury Inflation Indexed Notes — 9.3% |
| |||||||||||
275,000 | 2.500%, 07/15/16 | 308,752 | 353,793 | |||||||||
300,000 | 1.375%, 07/15/18 | 295,837 | 348,564 | |||||||||
275,000 | 2.125%, 01/15/19 | 295,798 | 337,286 | |||||||||
300,000 | 1.375%, 01/15/20 | 334,596 | 349,181 | |||||||||
350,000 | 2.500%, 01/15/29 | 391,057 | 473,328 | |||||||||
|
|
|
| |||||||||
1,626,040 | 1,862,152 | |||||||||||
|
|
|
| |||||||||
U.S. Treasury Notes — 10.0% |
| |||||||||||
300,000 | 0.625%, 07/31/12 | 300,374 | 301,196 | |||||||||
200,000 | 1.375%, 01/15/13 | 202,219 | 202,977 | |||||||||
800,000 | 0.750%, 08/15/13 | 803,671 | 807,094 | |||||||||
275,000 | 3.500%, 02/15/18 | 275,299 | 312,404 | |||||||||
350,000 | 3.375%, 11/15/19 | 339,483 | 396,977 | |||||||||
|
|
|
| |||||||||
1,921,046 | 2,020,648 | |||||||||||
|
|
|
|
Principal | Cost | Market | ||||||||||
U.S. Treasury Bonds — 2.9% |
| |||||||||||
$ 250,000 | 7.125%, 02/15/23 | $ | 295,198 | $ | 377,149 | |||||||
150,000 | 5.375%, 02/15/31 | 167,015 | 211,031 | |||||||||
|
|
|
| |||||||||
462,213 | 588,180 | |||||||||||
|
|
|
| |||||||||
TOTAL U.S. GOVERNMENT OBLIGATIONS | 4,309,092 | 4,770,896 | ||||||||||
|
|
|
| |||||||||
Shares | ||||||||||||
SHORT-TERM INVESTMENTS — 13.9% |
| |||||||||||
Mutual Funds — 13.9% |
| |||||||||||
2,794,690 | Dreyfus Treasury & Agency Cash Management Fund, 0.050%* | 2,794,690 | 2,794,690 | |||||||||
|
|
|
| |||||||||
TOTAL | $ | 19,182,158 | 20,401,670 | |||||||||
|
| |||||||||||
Other Assets and Liabilities (Net) — (1.2)% |
| (234,042 | ) | |||||||||
|
| |||||||||||
NET ASSETS — 100.0% |
| $ | 20,167,628 | |||||||||
|
|
†† | Represents annualized yield at date of purchase. |
* | Current yield. |
MTN | Medium Term Note |
See accompanying notes to financial statements.
26
GAMCO Westwood Funds
Statements of Assets and Liabilities
September 30, 2011
Mighty MitesSM Fund | SmallCap Equity Fund | Income Fund | Equity Fund | Balanced Fund | Intermediate Bond Fund | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Investments, at value (cost $523,098,366, $49,194,112, $5,194,816, $87,631,258, $86,393,984, and $19,182,158, respectively) | $ | 530,118,197 | $ | 39,989,720 | $ | 5,126,670 | $ | 84,364,373 | $ | 87,239,678 | $ | 20,401,670 | ||||||||||||
Investments in affiliates, at value (cost $12,507,316) | 14,072,615 | — | — | — | — | — | ||||||||||||||||||
Cash | — | — | 2,460 | — | — | — | ||||||||||||||||||
Receivable for Fund shares issued | 1,337,156 | 49,570 | 112,020 | 29,778 | 25,523 | 120,759 | ||||||||||||||||||
Receivable for investments sold | 2,092,220 | 209,990 | — | 843,008 | 93,369 | — | ||||||||||||||||||
Dividends and interest receivable | 157,501 | 18,168 | 6,564 | 129,436 | 455,740 | 157,415 | ||||||||||||||||||
Prepaid expenses | 43,643 | 25,089 | 27,297 | 28,546 | 31,065 | 20,679 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Assets | 547,821,332 | 40,292,537 | 5,275,011 | 85,395,141 | 87,845,375 | 20,700,523 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Liabilities: | ||||||||||||||||||||||||
Payable to custodian | 18,525 | 122,826 | — | — | — | — | ||||||||||||||||||
Payable for investments purchased | 2,340,188 | 83,232 | — | 266,445 | 235,400 | 403,932 | ||||||||||||||||||
Payable for Fund shares redeemed | 1,519,717 | 30,879 | — | 107,746 | 38,403 | 67,626 | ||||||||||||||||||
Distributions payable | — | — | — | — | — | 10,557 | ||||||||||||||||||
Payable for investment advisory fees | 462,870 | 16,091 | 2,787 | 74,444 | 57,184 | 5,334 | ||||||||||||||||||
Payable for distribution fees | 171,802 | 13,161 | 1,263 | 19,536 | 22,272 | 5,440 | ||||||||||||||||||
Payable for accounting fees | 3,750 | — | — | 3,750 | 3,750 | — | ||||||||||||||||||
Payable for legal and audit fees | 37,634 | 24,708 | 21,074 | 30,895 | 30,794 | 23,904 | ||||||||||||||||||
Payable for shareholder communications expenses | 94,882 | 5,189 | 2,609 | 19,542 | 14,875 | 3,158 | ||||||||||||||||||
Payable for shareholder services fees | 226,213 | 6,754 | 1,835 | 22,017 | 14,910 | 2,562 | ||||||||||||||||||
Other accrued expenses | 84,502 | 16,232 | 4,194 | 3,323 | 3,271 | 10,382 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Liabilities | 4,960,083 | 319,072 | 33,762 | 547,698 | 420,859 | 532,895 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Assets | $ | 542,861,249 | $ | 39,973,465 | $ | 5,241,249 | $ | 84,847,443 | $ | 87,424,516 | $ | 20,167,628 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Assets Consist of: | ||||||||||||||||||||||||
Paid-in capital | $ | 528,054,939 | $ | 50,448,828 | $ | 7,965,600 | $ | 110,015,047 | $ | 93,860,540 | $ | 18,816,891 | ||||||||||||
Accumulated net investment income/(loss) | (2,733,830 | ) | (802 | ) | 4,962 | 578,749 | 9,389 | 4,515 | ||||||||||||||||
Accumulated net realized gain/(loss) on investments and foreign currency transactions | 8,955,094 | (1,270,148 | ) | (2,661,167 | ) | (22,479,468 | ) | (7,291,107 | ) | 126,710 | ||||||||||||||
Net unrealized appreciation/depreciation on investments | 8,585,130 | (9,204,392 | ) | (68,146 | ) | (3,266,885 | ) | 845,694 | 1,219,512 | |||||||||||||||
Net unrealized appreciation/depreciation on foreign currency | (84 | ) | (21 | ) | — | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Assets | $ | 542,861,249 | $ | 39,973,465 | $ | 5,241,249 | $ | 84,847,443 | $ | 87,424,516 | $ | 20,167,628 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares of Beneficial Interest, each at $0.001 par value; unlimited number of shares authorized: | ||||||||||||||||||||||||
Class AAA: | ||||||||||||||||||||||||
Net assets | $344,799,760 | $28,843,290 | $4,665,357 | $79,328,664 | $76,940,887 | $16,958,704 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares of beneficial interest outstanding | 23,214,420 | 2,244,935 | 609,730 | 10,153,407 | 7,805,978 | 1,423,642 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Asset Value, offering, and redemption price per share | $14.85 | $12.85 | $7.65 | $7.81 | $9.86 | $11.91 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class A: | ||||||||||||||||||||||||
Net assets | $64,457,045 | $4,965,641 | $47,372 | $3,444,952 | $4,297,982 | $841,767 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares of beneficial interest outstanding | 4,412,872 | 392,636 | 5,986 | 442,726 | 434,182 | 70,678 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Asset Value and redemption price per share | $14.61 | $12.65 | $7.91 | $7.78 | $9.90 | $11.91 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Maximum offering price per share (NAV ÷ 0.96, based on maximum sales charge of 4.00% of the offering price) | $15.22 | $13.18 | $8.24 | $8.10 | $10.31 | $12.41 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class B: | ||||||||||||||||||||||||
Net assets | $9,939 | $— | $— | $— | $34,052 | $7,882 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares of beneficial interest outstanding | 727.7 | — | — | — | 3,408 | 662 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Asset Value and offering price per share(a) | $13.66 | $— | $— | $— | $9.99 | $11.91 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class C: | ||||||||||||||||||||||||
Net assets | $79,826,839 | $5,405,691 | $437,131 | $815,748 | $4,317,506 | $2,233,907 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares of beneficial interest outstanding | 5,874,108 | 454,066 | 51,487 | 107,911 | 432,005 | 197,255 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Asset Value and offering price per share(a) | $13.59 | $11.91 | $8.49 | $7.56 | $9.99 | $11.32 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class I: | ||||||||||||||||||||||||
Net assets | $53,767,666 | $758,843 | $91,389 | $1,258,079 | $1,834,089 | $125,368 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares of beneficial interest outstanding | 3,590,442 | 58,547 | 11,939 | 160,747 | 186,184 | 10,514 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Asset Value, offering, and redemption price per share | $14.98 | $12.96 | $7.65 | $7.83 | $9.85 | $11.92 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2011
Mighty MitesSM Fund | SmallCap Equity Fund | Income Fund | Equity Fund | Balanced Fund | Intermediate Bond Fund | |||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||
Dividends – unaffiliated (net of foreign withholding taxes of $19,338, $1,053, $0, $5,144, $3,189, and $0, respectively) | $ | 3,628,782 | $ | 245,653 | $ | 155,573 | $ | 2,428,822 | $ | 1,582,177 | $ | 532 | ||||||||||||
Dividends – affiliated | 16,350 | — | — | — | — | — | ||||||||||||||||||
Interest | 227,647 | 1,750 | 1,017 | 61 | 1,715,717 | 590,010 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Investment Income | 3,872,779 | 247,403 | 156,590 | 2,428,883 | 3,297,894 | 590,542 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Expenses: | ||||||||||||||||||||||||
Investment advisory fees | 5,825,223 | 322,948 | 53,783 | 1,083,017 | 862,166 | 103,009 | ||||||||||||||||||
Distribution fees – Class AAA | 965,561 | 54,838 | 12,674 | 252,443 | 257,920 | 38,787 | ||||||||||||||||||
Distribution fees – Class A | 383,865 | 27,696 | 557 | 26,093 | 24,647 | 1,938 | ||||||||||||||||||
Distribution fees – Class B | 418 | — | — | — | 502 | 225 | ||||||||||||||||||
Distribution fees – Class C | 772,122 | 38,223 | 1,257 | 10,283 | 48,587 | 9,395 | ||||||||||||||||||
Accounting fees | 45,000 | 3,750 | — | 45,000 | 45,000 | — | ||||||||||||||||||
Custodian fees | 149,759 | 27,973 | 5,114 | 21,377 | 20,867 | 6,116 | ||||||||||||||||||
Interest expense | — | 3 | 28 | 325 | 9 | 11 | ||||||||||||||||||
Legal and audit fees | 79,233 | 22,051 | 15,421 | 36,316 | 35,540 | 20,766 | ||||||||||||||||||
Registration expenses | 114,500 | 44,115 | 41,604 | 54,243 | 53,424 | 37,152 | ||||||||||||||||||
Shareholder communications expenses | 217,180 | 12,028 | 5,143 | 36,562 | 29,549 | 6,260 | ||||||||||||||||||
Shareholder services fees | 668,567 | 19,923 | 5,200 | 93,996 | 65,860 | 9,184 | ||||||||||||||||||
Tax expense | 11,599 | — | — | — | — | — | ||||||||||||||||||
Trustees’ fees | 35,436 | 2,009 | 333 | 6,755 | 7,253 | 1,069 | ||||||||||||||||||
Miscellaneous expenses | 34,186 | 9,038 | 7,683 | 14,861 | 15,609 | 12,400 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Expenses | 9,302,649 | 584,595 | 148,797 | 1,681,271 | 1,466,933 | 246,312 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less: | ||||||||||||||||||||||||
Expense reimbursements (See Note 3) | — | (60,150 | ) | (49,220 | ) | — | — | (67,194 | ) | |||||||||||||||
Advisory fee reduction on unsupervised assets (See Note 3) | (114,002 | ) | — | — | — | — | — | |||||||||||||||||
Custodian fee credits | — | — | — | (21,582 | ) | (20,867 | ) | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Reimbursements, Reductions, and Credits | (114,002 | ) | (60,150 | ) | (49,220 | ) | (21,582 | ) | (20,867 | ) | (67,194 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Expenses | 9,188,647 | 524,445 | 99,577 | 1,659,689 | 1,446,066 | 179,118 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Investment Income/(Loss) | (5,315,868 | ) | (277,042 | ) | 57,013 | 769,194 | 1,851,828 | 411,424 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency: | ||||||||||||||||||||||||
Net realized gain on investments – unaffiliated | 16,482,068 | 2,331,633 | 32,007 | 12,130,146 | 10,519,771 | 126,815 | ||||||||||||||||||
Net realized loss on investments – affiliated | (40,877 | ) | — | — | — | — | — | |||||||||||||||||
Net realized loss on foreign currency transactions | (540 | ) | (344 | ) | — | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net realized gain on investments and foreign currency transactions | 16,440,651 | 2,331,289 | 32,007 | 12,130,146 | 10,519,771 | 126,815 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net change in unrealized appreciation/depreciation: | ||||||||||||||||||||||||
on investments | (55,728,124 | ) | (11,142,023 | ) | 75,804 | (14,272,846 | ) | (11,383,178 | ) | (114,746 | ) | |||||||||||||
on foreign currency translations | (194 | ) | (21 | ) | — | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net change in unrealized appreciation/depreciation on investments and foreign currency translations | (55,728,318 | ) | (11,142,044 | ) | 75,804 | (14,272,846 | ) | (11,383,178 | ) | (114,746 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency | (39,287,667 | ) | (8,810,755 | ) | 107,811 | (2,142,700 | ) | (863,407 | ) | 12,069 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (44,603,535 | ) | $ | (9,087,797 | ) | $ | 164,824 | $ | (1,373,506 | ) | $ | 988,421 | $ | 423,493 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
28
GAMCO Westwood Funds
Statements of Changes in Net Assets
Mighty MitesSM Fund | SmallCap Equity Fund | |||||||||||||||
For the Year Ended September 30, | For the Year Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Operations: | ||||||||||||||||
Net investment loss | $ | (5,315,868 | ) | $ | (2,035,421 | ) | $ | (277,042 | ) | $ | (126,537 | ) | ||||
Net realized gain on investments and foreign currency transactions | 16,440,651 | 10,978,383 | 2,331,289 | 1,082,077 | ||||||||||||
Net change in unrealized appreciation/depreciation on investments and foreign currency transactions | (55,728,318 | ) | 33,904,771 | (11,142,044 | ) | 945,012 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | (44,603,535 | ) | 42,847,733 | (9,087,797 | ) | 1,900,552 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders: | ||||||||||||||||
Net investment income | ||||||||||||||||
Class AAA | (1,069,974 | ) | — | — | — | |||||||||||
Class A | (134,992 | ) | — | — | — | |||||||||||
Class I | (151,906 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
(1,356,872 | ) | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain | ||||||||||||||||
Class AAA | (7,450,321 | ) | (37,124 | ) | — | — | ||||||||||
Class A | (1,501,930 | ) | (4,628 | ) | — | — | ||||||||||
Class B | (2,195 | ) | (26 | ) | — | — | ||||||||||
Class C | (1,401,220 | ) | (3,910 | ) | — | — | ||||||||||
Class I | (685,228 | ) | (2,984 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
(11,040,894 | ) | (48,672 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Distributions to Shareholders | (12,397,766 | ) | (48,672 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares of Beneficial Interest Transactions: | ||||||||||||||||
Proceeds from shares issued | ||||||||||||||||
Class AAA | 253,257,034 | 128,720,205 | 38,636,054 | 3,017,670 | ||||||||||||
Class A | 63,679,119 | 37,358,815 | 5,475,623 | 1,082,263 | ||||||||||||
Class B | 3,399 | — | — | 1,692 | ||||||||||||
Class C | 60,838,781 | 25,737,887 | 6,599,251 | 586,710 | ||||||||||||
Class I | 49,088,183 | 10,894,878 | 667,710 | 1,389,079 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
426,866,516 | 202,711,785 | 51,378,638 | 6,077,414 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Proceeds from reinvestment of distributions | ||||||||||||||||
Class AAA | 7,225,290 | 33,740 | — | — | ||||||||||||
Class A | 1,326,762 | 3,921 | — | — | ||||||||||||
Class B | 2,195 | 26 | — | — | ||||||||||||
Class C | 1,059,902 | 2,929 | — | — | ||||||||||||
Class I | 420,004 | 1,751 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
10,034,153 | 42,367 | — | — | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Cost of shares redeemed | ||||||||||||||||
Class AAA | (142,889,080 | ) | (68,496,152 | ) | (13,681,559 | ) | (2,689,387 | ) | ||||||||
Class A | (42,628,667 | ) | (9,881,228 | ) | (3,035,396 | ) | (218,956 | ) | ||||||||
Class B | (77,183 | ) | (50,832 | ) | (7,381 | )* | (1,741 | ) | ||||||||
Class C | (12,427,131 | ) | (2,880,022 | ) | (491,456 | ) | (104,065 | ) | ||||||||
Class I | (13,080,698 | ) | (2,769,144 | ) | (1,086,703 | ) | (693,469 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
(211,102,759 | ) | (84,077,378 | ) | (18,302,495 | ) | (3,707,618 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net Increase in Net Assets from Shares of Beneficial Interest Transactions | 225,797,910 | 118,676,774 | 33,076,143 | 2,369,796 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Redemption Fees | 10,418 | 689 | 1,107 | 1,751 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Increase in Net Assets | 168,807,027 | 161,476,524 | 23,989,453 | 4,272,099 | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 374,054,222 | 212,577,698 | 15,984,012 | 11,711,913 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 542,861,249 | $ | 374,054,222 | $ | 39,973,465 | $ | 15,984,012 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
* | SmallCap Equity Fund’s Class B Shares were fully redeemed and closed on May 3, 2011. |
See accompanying notes to financial statements.
29
GAMCO Westwood Funds
Statements of Changes in Net Assets (Continued)
Income Fund | Equity Fund | |||||||||||||||
For the Year Ended September 30, | For the Year Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 57,013 | $ | 87,370 | $ | 769,194 | $ | 678,220 | ||||||||
Net realized gain/(loss) on investments | 32,007 | (96,177 | ) | 12,130,146 | 8,500,599 | |||||||||||
Net change in unrealized appreciation/depreciation on investments | 75,804 | 508,524 | (14,272,846 | ) | (229,649 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 164,824 | 499,717 | (1,373,506 | ) | 8,949,170 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders: | ||||||||||||||||
Net investment income | ||||||||||||||||
Class AAA | (48,541 | ) | (76,135 | ) | (588,343 | ) | (1,172,352 | ) | ||||||||
Class A | (1,450 | ) | (2,880 | ) | (16,239 | ) | (45,986 | ) | ||||||||
Class B | — | — | — | (17 | ) | |||||||||||
Class C | (200 | ) | (604 | ) | — | (3,199 | ) | |||||||||
Class I | (880 | ) | (885 | ) | (7,652 | ) | (7,670 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total Distributions to Shareholders | (51,071 | ) | (80,504 | ) | (612,234 | ) | (1,229,224 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares of Beneficial Interest Transactions: | ||||||||||||||||
Proceeds from shares issued | ||||||||||||||||
Class AAA | 1,108,637 | 449,585 | 5,519,516 | 12,835,644 | ||||||||||||
Class A | 30,861 | 288,780 | 818,942 | 1,187,734 | ||||||||||||
Class B | — | — | — | — | ||||||||||||
Class C | 368,371 | 13,137 | 94,732 | 171,700 | ||||||||||||
Class I | 36,697 | 14,274 | 1,638,720 | 640,637 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
1,544,566 | 765,776 | 8,071,910 | 14,835,715 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Proceeds from reinvestment of distributions | ||||||||||||||||
Class AAA | 45,374 | 71,125 | 543,647 | 1,098,889 | ||||||||||||
Class A | 1,429 | 2,878 | 15,625 | 43,561 | ||||||||||||
Class B | — | — | — | 17 | ||||||||||||
Class C | 163 | 515 | — | 3,159 | ||||||||||||
Class I | 789 | 783 | 7,644 | 7,670 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
47,755 | 75,301 | 566,916 | 1,153,296 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Cost of shares redeemed | ||||||||||||||||
Class AAA | (1,414,492 | ) | (947,840 | ) | (24,852,941 | ) | (53,540,807 | ) | ||||||||
Class A | (342,556 | ) | (50,559 | ) | (4,081,784 | ) | (1,083,380 | ) | ||||||||
Class B | — | (79 | )* | (7,254 | )** | (88 | ) | |||||||||
Class C | (21,841 | ) | (190,868 | ) | (251,745 | ) | (309,984 | ) | ||||||||
Class I | (316 | ) | (22,634 | ) | (1,262,218 | ) | (333,598 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
(1,779,205 | ) | (1,211,980 | ) | (30,455,942 | ) | (55,267,857 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net Decrease in Net Assets from Shares of Beneficial Interest Transactions | (186,884 | ) | (370,903 | ) | (21,817,116 | ) | (39,278,846 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Redemption Fees | 52 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Increase/(Decrease) in Net Assets | (73,079 | ) | 48,310 | (23,802,856 | ) | (31,558,900 | ) | |||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 5,314,328 | 5,266,018 | 108,650,299 | 140,209,199 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 5,241,249 | $ | 5,314,328 | $ | 84,847,443 | $ | 108,650,299 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income | $ | 4,962 | $ | — | $ | 578,749 | $ | 421,789 | ||||||||
|
|
|
|
|
|
|
|
* | Income Fund’s Class B Shares were fully redeemed and closed on December 1, 2009. |
** | Equity Fund’s Class B Shares were fully redeemed and closed on March 1, 2011. |
See accompanying notes to financial statements.
30
GAMCO Westwood Funds
Statements of Changes in Net Assets (Continued)
Balanced Fund | Intermediate Bond Fund | |||||||||||||||
For the Year Ended September 30, | For the Year Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 1,851,828 | $ | 1,805,394 | $ | 411,424 | $ | 397,954 | ||||||||
Net realized gain on investments | 10,519,771 | 4,758,237 | 126,815 | 33,821 | ||||||||||||
Net change in unrealized appreciation/depreciation on investments | (11,383,178 | ) | 1,729,287 | (114,746 | ) | 695,999 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Increase in Net Assets Resulting from Operations | 988,421 | 8,292,918 | 423,493 | 1,127,774 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders: | ||||||||||||||||
Net investment income | ||||||||||||||||
Class AAA | (1,696,462 | ) | (1,688,728 | ) | (380,579 | ) | (368,264 | ) | ||||||||
Class A | (71,218 | ) | (67,141 | ) | (12,938 | ) | (10,734 | ) | ||||||||
Class B | (398 | ) | (763 | ) | (384 | ) | (1,479 | ) | ||||||||
Class C | (44,960 | ) | (35,350 | ) | (14,227 | ) | (14,335 | ) | ||||||||
Class I | (39,011 | ) | (27,648 | ) | (3,686 | ) | (3,841 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
(1,852,049 | ) | (1,819,630 | ) | (411,814 | ) | (398,653 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain | ||||||||||||||||
Class AAA | — | — | (28,090 | ) | (103,560 | ) | ||||||||||
Class A | — | — | (887 | ) | (3,757 | ) | ||||||||||
Class B | — | — | (64 | ) | (903 | ) | ||||||||||
Class C | — | — | (1,914 | ) | (4,280 | ) | ||||||||||
Class I | — | — | (334 | ) | (780 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
— | — | (31,289 | ) | (113,280 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Distributions to Shareholders | (1,852,049 | ) | (1,819,630 | ) | (443,103 | ) | (511,933 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares of Beneficial Interest Transactions: | ||||||||||||||||
Proceeds from shares issued | ||||||||||||||||
Class AAA | 12,270,171 | 12,228,366 | 4,691,931 | 4,725,121 | ||||||||||||
Class A | 240,458 | 210,320 | 627,660 | 287,448 | ||||||||||||
Class B | 2,800 | 13,292 | — | — | ||||||||||||
Class C | 619,606 | 1,095,718 | 2,336,655 | 1,558,481 | ||||||||||||
Class I | 1,019,973 | 895,950 | 94,434 | 140,294 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
14,153,008 | 14,443,646 | 7,750,680 | 6,711,344 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Proceeds from reinvestment of distributions | ||||||||||||||||
Class AAA | 1,636,576 | 1,627,433 | 259,105 | 326,510 | ||||||||||||
Class A | 62,979 | 60,259 | 10,138 | 10,834 | ||||||||||||
Class B | 332 | 430 | 314 | 1,262 | ||||||||||||
Class C | 38,862 | 24,903 | 13,841 | 17,068 | ||||||||||||
Class I | 38,936 | 27,636 | 3,988 | 4,325 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
1,777,685 | 1,740,661 | 287,386 | 359,999 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Cost of shares redeemed | ||||||||||||||||
Class AAA | (43,102,456 | ) | (36,266,445 | ) | (5,027,808 | ) | (2,507,576 | ) | ||||||||
Class A | (1,055,724 | ) | (1,412,210 | ) | (284,419 | ) | (349,373 | ) | ||||||||
Class B | (53,292 | ) | (41,933 | ) | (30,170 | ) | (94,401 | ) | ||||||||
Class C | (1,244,361 | ) | (1,257,696 | ) | (1,816,362 | ) | (489,893 | ) | ||||||||
Class I | (930,553 | ) | (668,924 | ) | (96,549 | ) | (347,556 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
(46,386,386 | ) | (39,647,208 | ) | (7,255,308 | ) | (3,788,799 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net Increase/(Decrease) in Net Assets from Shares of Beneficial Interest Transactions | (30,455,693 | ) | (23,462,901 | ) | 782,758 | 3,282,544 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Increase/(Decrease) in Net Assets | (31,319,321 | ) | (16,989,613 | ) | 763,148 | 3,898,385 | ||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 118,743,837 | 135,733,450 | 19,404,480 | 15,506,095 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 87,424,516 | $ | 118,743,837 | $ | 20,167,628 | $ | 19,404,480 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income | $ | 9,389 | $ | 9,610 | $ | 4,515 | $ | 4,905 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
31
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a)(b) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Net Investment Income | Net Realized Gain on Investments | Return of Capital | Total Distributions | Redemption Fees(a)(c) | Net Asset Value, End of Period | Total Return† | Net Assets, End of Period (in 000’s) | Net Investment Income (Loss)(b) | Operating Expenses Net of Waivers/ Reimburse- ments/ Reductions | Operating Expenses Before Waivers/ Reimburse- ments/ Reductions(d) | Portfolio Turnover Rate†† | ||||||||||||||||||||||||||||||||||||||||||||||||
Mighty MitesSM Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 15.81 | $ | (0.14 | ) | $ | (0.34 | ) | $ | (0.48 | ) | $ | (0.06 | ) | $ | (0.42 | ) | — | $ | (0.48 | ) | $ | 0.00 | $ | 14.85 | (3.3 | )% | $ | 344,800 | (0.79 | )% | 1.46 | % | 1.48 | %(e) | 20 | % | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 15.57 | $ | (0.18 | ) | $ | (0.32 | ) | $ | (0.50 | ) | $ | (0.04 | ) | $ | (0.42 | ) | — | $ | (0.46 | ) | $ | 0.00 | $ | 14.61 | (3.5 | )% | $ | 64,457 | (1.04 | )% | 1.71 | % | 1.73 | %(e) | 20 | % | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 14.64 | $ | (0.20 | ) | $ | (0.36 | ) | $ | (0.56 | ) | — | $ | (0.42 | ) | — | $ | (0.42 | ) | $ | 0.00 | $ | 13.66 | (4.1 | )% | $ | 10 | (1.29 | )% | 2.21 | % | 2.23 | %(e) | 20 | % | |||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 14.55 | $ | (0.25 | ) | $ | (0.29 | ) | $ | (0.54 | ) | — | $ | (0.42 | ) | — | $ | (0.42 | ) | $ | 0.00 | $ | 13.59 | (4.0 | )% | $ | 79,827 | (1.57 | )% | 2.21 | % | 2.23 | %(e) | 20 | % | |||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 15.92 | $ | (0.10 | ) | $ | (0.33 | ) | $ | (0.43 | ) | $ | (0.09 | ) | $ | (0.42 | ) | — | $ | (0.51 | ) | $ | 0.00 | $ | 14.98 | (3.0 | )% | $ | 53,767 | (0.57 | )% | 1.21 | % | 1.23 | %(e) | 20 | % | |||||||||||||||||||||||||||
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%. 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 acquisition of the net assets of the B.B. Micro-Cap Growth Fund. |
(a) | Per share data is calculated using the average shares outstanding method. |
(b) | Due to capital share activity, net investment income (loss), 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) | For the years ended September 30, 2010, 2009, 2008, and 2007, the effect of interest expense was minimal. For the year ended September��30, 2011, there was no interest expense. |
(e) | Before advisory fee reduction on unsupervised assets totaling 0.02%, 0.03%, and 0.01% of net assets for the years ended September 30, 2011, 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
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended September 30 | Net Asset Value, Beginning of Period | Net Investment Loss(a) | Net Realized and Unrealized Gain (Loss) on Investments | Total From Investment Operations | Net Investment Income | Total Distributions | Redemption Fees(a)(b) | Net Asset Value, End of Period | Total Return† | Net Assets, End of Period (in 000’s) | Net Investment Loss | Operating Expenses Net of Waivers/ Reimburse- ments†† | Operating Expenses Before Waivers/ Reimburse- ments††† | Portfolio Turnover Rate | ||||||||||||||||||||||||||||||||||||||||||
SmallCap Equity Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 13.36 | $ | (0.12 | ) | $ | (0.39 | ) | $ | (0.51 | ) | — | — | $ | 0.00 | $ | 12.85 | (3.8 | )% | $ | 28,843 | (0.73 | )% | 1.50 | %(c) | 1.69 | % | 52 | % | |||||||||||||||||||||||||||
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 | ) | 1.58 | (c) | 2.62 | 123 | ||||||||||||||||||||||||||||||||||||
2007 | 12.51 | (0.04 | ) | 2.68 | 2.64 | $ | (0.16 | ) | $ | (0.16 | ) | — | 14.99 | 21.2 | 8,672 | (0.28 | ) | 1.71 | 2.24 | 90 | ||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 13.18 | $ | (0.16 | ) | $ | (0.37 | ) | $ | (0.53 | ) | — | — | $ | 0.00 | $ | 12.65 | (4.0 | )% | $ | 4,965 | (0.98 | )% | 1.75 | %(c) | 1.94 | % | 52 | % | |||||||||||||||||||||||||||
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 | ) | 1.83 | (c) | 2.87 | 123 | ||||||||||||||||||||||||||||||||||||
2007 | 12.45 | (0.09 | ) | 2.67 | 2.58 | $ | (0.14 | ) | $ | (0.14 | ) | — | 14.89 | 20.9 | 778 | (0.62 | ) | 1.96 | 2.49 | 90 | ||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 12.47 | $ | (0.22 | ) | $ | (0.34 | ) | $ | (0.56 | ) | — | — | $ | 0.00 | $ | 11.91 | (4.5 | )% | $ | 5,406 | (1.50 | )% | 2.25 | %(c) | 2.44 | % | 52 | % | |||||||||||||||||||||||||||
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 | ) | 2.33 | (c) | 3.37 | 123 | ||||||||||||||||||||||||||||||||||||
2007 | 11.97 | (0.14 | ) | 2.57 | 2.43 | $ | (0.09 | ) | $ | (0.09 | ) | — | 14.31 | 20.4 | 298 | (1.04 | ) | 2.46 | 2.99 | 90 | ||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 13.45 | $ | (0.07 | ) | $ | (0.42 | ) | $ | (0.49 | ) | — | — | $ | 0.00 | $ | 12.96 | (3.6 | )% | $ | 759 | (0.46 | )% | 1.25 | %(c) | 1.44 | % | 52 | % | |||||||||||||||||||||||||||
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) | 1.36 | (c)(e) | 2.40 | (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 do not include a reduction for custodian fee credits on cash balances maintained with the custodian (“Custodian Fee Credits”). Including such Custodian Fee Credits, the ratios for the years ended September 30, 2009, 2008, and 2007 would have been 1.50%, 1.51%, and 1.50% (Class AAA), 1.75%, 1.76%, and 1.75% (Class A), 2.25%, 2.26%, and 2.25% (Class B and Class C), and 1.25% and 1.26% (Class I) respectively. For the years ended September 30, 2011 and 2010, there were no Custodian Fee Credits. |
††† | The ratios do not include a reduction for Custodian Fee Credits. Including such Custodian Fee Credits, the ratios for the years ended September 30, 2009, 2008, and 2007 would have been 2.80%, 2.55%, and 2.03% (Class AAA), 3.05%, 2.80%, and 2.28% (Class A), 3.55%, 3.30%, and 2.78% (Class B and Class C), and 2.55% and 2.30% (Class I), respectively. For the years ended September 30, 2011 and 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, 2011, 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
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended September 30 | Net Asset Value, Beginning of Period | Net Investment Income (a) | Net Realized and Unrealized Gain (Loss) on Investments | Total From Investment Operations | Net Investment Income | Net Realized Gain on Investments | Return of Capital | Total Distributions | Redemption Fees (a)(b) | Net Asset Value, End of Period | Total Return† | Net Assets, End of Period (in 000’s) | Net Investment Income | Operating Expenses Net of Waivers/ Reimburse- ments††(c) | Operating Expenses Before Waivers/ Reimburse- ments ††† | Portfolio Turnover Rate | ||||||||||||||||||||||||||||||||||||||||||||||||
Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 7.53 | $ | 0.09 | $ | 0.11 | $ | 0.20 | $ | (0.08 | ) | — | — | $ | (0.08 | ) | $ | 0.00 | $ | 7.65 | 2.6 | % | $ | 4,665 | 1.08 | % | 1.84 | % | 2.74 | % | 14 | % | ||||||||||||||||||||||||||||||||
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 | 1.63 | 3.06 | 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 | 1.58 | 2.48 | 28 | ||||||||||||||||||||||||||||||||||||||||
2007 | 12.04 | 0.50 | 0.59 | 1.09 | (0.47 | ) | (2.45 | ) | — | (2.92 | ) | — | 10.21 | 10.0 | 17,871 | 4.65 | 1.76 | 2.20 | 64 | |||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 7.79 | $ | 0.08 | $ | 0.10 | $ | 0.18 | $ | (0.06 | ) | — | — | $ | (0.06 | ) | $ | 0.00 | $ | 7.91 | 2.2 | % | $ | 47 | 0.98 | % | 1.89 | % | 3.15 | % | 14 | % | ||||||||||||||||||||||||||||||||
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 | 1.88 | 3.31 | 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 | 1.83 | 2.73 | 28 | ||||||||||||||||||||||||||||||||||||||||
2007 | 12.34 | 0.50 | 0.59 | 1.09 | (0.44 | ) | (2.45 | ) | — | (2.89 | ) | — | 10.54 | 9.7 | 80 | 4.45 | 2.01 | 2.45 | 64 | |||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 8.36 | $ | 0.02 | $ | 0.13 | $ | 0.15 | $ | (0.02 | ) | — | — | $ | (0.02 | ) | $ | 0.00 | $ | 8.49 | 1.8 | % | $ | 437 | 0.19 | % | 2.62 | % | 3.47 | % | 14 | % | ||||||||||||||||||||||||||||||||
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 | 2.38 | 3.81 | 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 | 2.33 | 3.23 | 28 | ||||||||||||||||||||||||||||||||||||||||
2007 | 12.98 | 0.38 | 0.71 | 1.09 | (0.40 | ) | (2.45 | ) | — | (2.85 | ) | — | 11.22 | 9.1 | 397 | 3.35 | 2.51 | 2.94 | 64 | |||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 7.53 | $ | 0.10 | $ | 0.12 | $ | 0.22 | $ | (0.10 | ) | — | — | $ | (0.10 | ) | $ | 0.00 | $ | 7.65 | 2.9 | % | $ | 92 | 1.26 | % | 1.61 | % | 2.48 | % | 14 | % | ||||||||||||||||||||||||||||||||
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 | 1.38 | 2.81 | 14 | |||||||||||||||||||||||||||||||||||||||||
2008(d) | 9.14 | 0.18 | (1.18 | ) | (1.00 | ) | (0.27 | ) | — | (0.02 | ) | (0.29 | ) | — | 7.85 | (11.2 | ) | 118 | 2.82 | (e) | 1.36 | (e) | 2.26 | (e) | 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 do not include a reduction for custodian fee credits on cash balances maintained with the custodian (“Custodian Fee Credits”). Including such Custodian Fee Credits, the ratios for the years ended September 30, 2009, 2008, and 2007 would have been 1.50%, 1.51%, and 1.50% (Class AAA), 1.75%, 1.76%, and 1.75% (Class A), 2.25%, 2.26%, and 2.25% (Class C), and 1.25% and 1.26% (Class I), respectively. For the years ended September 30, 2011 and 2010, there were no Custodian Fee Credits. |
††† | The ratios do not include a reduction for Custodian Fee Credits. Including such Custodian Fee Credits, the ratios for the years ended September 30, 2009, 2008, and 2007 would have been 2.93%, 2.41%, and 1.94% (Class AAA), 3.18%, 2.66%, and 2.19% (Class A), 3.68%, 3.16%, and 2.68% (Class C), and 2.68% and 2.16% (Class I), respectively. For the years ended September 30, 2011 and 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 $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, 2011, 2010, and 2007, 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.
34
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Net Investment Income | Net Realized Gain on Investments | Total Distributions | Net Asset Value, End of Period | Total Return† | Net Assets, End of Period (in 000’s) | Net Investment Income (Loss) | Operating Expenses†† | Portfolio Turnover Rate | |||||||||||||||||||||||||||||||||||||||
Equity Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Class AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 8.17 | $ | 0.07 | $ | (0.38 | ) | $ | (0.31 | ) | $ | (0.05 | ) | — | $ | (0.05 | ) | $ | 7.81 | (3.8 | )% | $ | 79,328 | 0.73 | % | 1.54 | %(b) | 38 | % | |||||||||||||||||||||||
2010 | 7.72 | 0.04 | 0.48 | 0.52 | (0.07 | ) | — | (0.07 | ) | 8.17 | 6.8 | 99,986 | 0.55 | 1.56 | (b) | 52 | ||||||||||||||||||||||||||||||||||||
2009 | 9.21 | 0.08 | (1.48 | ) | (1.40 | ) | (0.09 | ) | — | (0.09 | ) | 7.72 | (15.2 | ) | 132,314 | 1.21 | 1.59 | (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 | 1.49 | 71 | ||||||||||||||||||||||||||||||||
2007 | 12.51 | 0.04 | 2.15 | 2.19 | (0.05 | ) | (2.02 | ) | (2.07 | ) | 12.63 | 19.7 | 189,913 | 0.37 | 1.52 | 58 | ||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 8.13 | $ | 0.04 | $ | (0.37 | ) | $ | (0.33 | ) | $ | (0.02 | ) | — | $ | (0.02 | ) | $ | 7.78 | (4.0 | )% | $ | 3,445 | 0.44 | % | 1.79 | %(b) | 38 | % | |||||||||||||||||||||||
2010 | 7.69 | 0.02 | 0.48 | 0.50 | (0.06 | ) | — | (0.06 | ) | 8.13 | 6.5 | 6,616 | 0.31 | 1.81 | (b) | 52 | ||||||||||||||||||||||||||||||||||||
2009 | 9.11 | 0.06 | (1.43 | ) | (1.37 | ) | (0.05 | ) | — | (0.05 | ) | 7.69 | (15.0 | ) | 6,131 | 0.89 | 1.84 | (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 | 1.74 | 71 | ||||||||||||||||||||||||||||||||
2007 | 12.45 | 0.01 | 2.15 | 2.16 | (0.02 | ) | (2.02 | ) | (2.04 | ) | 12.57 | 19.5 | 3,527 | 0.12 | 1.77 | 58 | ||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 7.91 | $ | (0.00 | )(c) | $ | (0.35 | ) | $ | (0.35 | ) | — | — | — | $ | 7.56 | (4.4 | )% | $ | 816 | (0.02 | )% | 2.29 | %(b) | 38 | % | ||||||||||||||||||||||||||
2010 | 7.49 | (0.02 | ) | 0.46 | 0.44 | $ | (0.02 | ) | — | $ | (0.02 | ) | 7.91 | 5.9 | 999 | (0.19 | ) | 2.31 | (b) | 52 | ||||||||||||||||||||||||||||||||
2009 | 8.95 | 0.02 | (1.44 | ) | (1.42 | ) | (0.04 | ) | — | (0.04 | ) | 7.49 | (15.8 | ) | 1,067 | 0.37 | 2.34 | (b) | 111 | |||||||||||||||||||||||||||||||||
2008 | 12.36 | (0.00 | )(c) | (1.83 | ) | (1.83 | ) | — | $ | (1.58 | ) | (1.58 | ) | 8.95 | (16.7 | ) | 736 | (0.02 | ) | 2.24 | 71 | |||||||||||||||||||||||||||||||
2007 | 12.31 | (0.05 | ) | 2.12 | 2.07 | — | (2.02 | ) | (2.02 | ) | 12.36 | 18.8 | 320 | (0.39 | ) | 2.27 | 58 | |||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 8.19 | $ | 0.10 | $ | (0.39 | ) | $ | (0.29 | ) | $ | (0.07 | ) | — | $ | (0.07 | ) | $ | 7.83 | (3.6 | )% | $ | 1,258 | 1.07 | % | 1.29 | %(b) | 38 | % | |||||||||||||||||||||||
2010 | 7.73 | 0.06 | 0.49 | 0.55 | (0.09 | ) | — | (0.09 | ) | 8.19 | 7.1 | 1,043 | 0.81 | 1.31 | (b) | 52 | ||||||||||||||||||||||||||||||||||||
2009 | 9.23 | 0.10 | (1.49 | ) | (1.39 | ) | (0.11 | ) | — | (0.11 | ) | 7.73 | (15.0 | ) | 691 | 1.44 | 1.34 | (b) | 111 | |||||||||||||||||||||||||||||||||
2008(d) | 10.35 | 0.07 | (1.19 | ) | (1.12 | ) | — | — | — | 9.23 | (10.8 | ) | 797 | 1.00 | (e) | 1.24 | (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 do not include a reduction for custodian fee credits on cash balances maintained with the custodian (“Custodian Fee Credits”). Including such Custodian Fee Credits, the ratios for the years ended September 30, 2011, 2010, 2009, 2008, and 2007 would have been 1.52%, 1.54%, 1.57%, 1.47%, and 1.47% (Class AAA), 1.77%,1.79%, 1.82%, 1.72%, and 1.72% (Class A), 2.27%, 2.29%, 2.32%, 2.22%, and 2.22% (Class C), and 1.27%, 1.29%, 1.32%, and 1.22% (Class I), respectively. |
(a) | Per share data is calculated using the average shares outstanding method. |
(b) | The Fund incurred interest expense of $325, $1,854, and $106 during the years ended September 30, 2011, 2010, and 2009, respectively. This interest expense was paid for by prior years 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | Net Asset Value, Beginning of Period | Net Investment Income(a) | Net Realized and Unrealized Gain (Loss)�� on Investments | Total from Investment Operations | Net Investment Income | Net Realized Gain on Investments | Total Distributions | Net Asset Value, End of Period | Total Return† | Net Assets, End of Period (in 000’s) | Net Investment Income | Operating Expenses†† | Portfolio Turnover Rate | |||||||||||||||||||||||||||||||||||||||
Balanced Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 10.13 | $ | 0.18 | $ | (0.27 | ) | $ | (0.09 | ) | $ | (0.18 | ) | — | $ | (0.18 | ) | $ | 9.86 | (1.0 | )% | $ | 76,941 | 1.65 | % | 1.24 | % | 24 | % | |||||||||||||||||||||||
2010 | 9.65 | 0.14 | 0.49 | 0.63 | (0.15 | ) | — | (0.15 | ) | 10.13 | 6.5 | 106,782 | 1.45 | 1.26 | 33 | |||||||||||||||||||||||||||||||||||||
2009 | 10.47 | 0.17 | (0.77 | ) | (0.60 | ) | (0.17 | ) | $ | (0.05 | ) | (0.22 | ) | 9.65 | (5.6 | ) | 123,323 | 1.86 | 1.27 | 89 | ||||||||||||||||||||||||||||||||
2008 | 12.58 | 0.21 | (1.17 | ) | (0.96 | ) | (0.22 | ) | (0.93 | ) | (1.15 | ) | 10.47 | (8.4 | ) | 138,174 | 1.83 | 1.23 | 60 | |||||||||||||||||||||||||||||||||
2007 | 12.82 | 0.22 | 1.36 | 1.58 | (0.21 | ) | (1.61 | ) | (1.82 | ) | 12.58 | 13.6 | 152,185 | 1.76 | 1.27 | 46 | ||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 10.17 | $ | 0.15 | $ | (0.26 | ) | $ | (0.11 | ) | $ | (0.16 | ) | — | $ | (0.16 | ) | $ | 9.90 | (1.2 | )% | $ | 4,298 | 1.40 | % | 1.49 | % | 24 | % | |||||||||||||||||||||||
2010 | 9.69 | 0.12 | 0.48 | 0.60 | (0.12 | ) | — | (0.12 | ) | 10.17 | 6.2 | 5,136 | 1.20 | 1.51 | 33 | |||||||||||||||||||||||||||||||||||||
2009 | 10.51 | 0.14 | (0.76 | ) | (0.62 | ) | (0.15 | ) | $ | (0.05 | ) | (0.20 | ) | 9.69 | (5.8 | ) | 5,995 | 1.61 | 1.52 | 89 | ||||||||||||||||||||||||||||||||
2008 | 12.63 | 0.18 | (1.18 | ) | (1.00 | ) | (0.19 | ) | (0.93 | ) | (1.12 | ) | 10.51 | (8.7 | ) | 5,639 | 1.56 | 1.48 | 60 | |||||||||||||||||||||||||||||||||
2007 | 12.87 | 0.19 | 1.36 | 1.55 | (0.18 | ) | (1.61 | ) | (1.79 | ) | 12.63 | 13.3 | 5,519 | 1.51 | 1.52 | 46 | ||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 10.25 | $ | 0.09 | $ | (0.26 | ) | $ | (0.17 | ) | $ | (0.09 | ) | — | $ | (0.09 | ) | $ | 9.99 | (1.7 | )% | $ | 34 | 0.83 | % | 1.99 | % | 24 | % | |||||||||||||||||||||||
2010 | 9.77 | 0.07 | 0.48 | 0.55 | (0.07 | ) | — | (0.07 | ) | 10.25 | 5.7 | 82 | 0.69 | 2.01 | 33 | |||||||||||||||||||||||||||||||||||||
2009 | 10.60 | 0.10 | (0.78 | ) | (0.68 | ) | (0.10 | ) | $ | (0.05 | ) | (0.15 | ) | 9.77 | (6.3 | ) | 105 | 1.13 | 2.02 | 89 | ||||||||||||||||||||||||||||||||
2008 | 12.72 | 0.13 | (1.20 | ) | (1.07 | ) | (0.12 | ) | (0.93 | ) | (1.05 | ) | 10.60 | (9.1 | ) | 125 | 1.10 | 1.98 | 60 | |||||||||||||||||||||||||||||||||
2007 | 12.95 | 0.13 | 1.37 | 1.50 | (0.12 | ) | (1.61 | ) | (1.73 | ) | 12.72 | 12.7 | 194 | 1.02 | 2.02 | 46 | ||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 10.26 | $ | 0.10 | $ | (0.27 | ) | $ | (0.17 | ) | $ | (0.10 | ) | — | $ | (0.10 | ) | $ | 9.99 | (1.7 | )% | $ | 4,318 | 0.90 | % | 1.99 | % | 24 | % | |||||||||||||||||||||||
2010 | 9.78 | 0.07 | 0.48 | 0.55 | (0.07 | ) | — | (0.07 | ) | 10.26 | 5.7 | 4,975 | 0.70 | 2.01 | 33 | |||||||||||||||||||||||||||||||||||||
2009 | 10.61 | 0.10 | (0.77 | ) | (0.67 | ) | (0.11 | ) | $ | (0.05 | ) | (0.16 | ) | 9.78 | (6.2 | ) | 4,859 | 1.06 | 2.02 | 89 | ||||||||||||||||||||||||||||||||
2008 | 12.74 | 0.12 | (1.19 | ) | (1.07 | ) | (0.13 | ) | (0.93 | ) | (1.06 | ) | 10.61 | (9.1 | ) | 1,389 | 1.05 | 1.98 | 60 | |||||||||||||||||||||||||||||||||
2007 | 12.97 | 0.13 | 1.37 | 1.50 | (0.12 | ) | (1.61 | ) | (1.73 | ) | 12.74 | 12.7 | 1,003 | 1.01 | 2.02 | 46 | ||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 10.12 | $ | 0.21 | $ | (0.27 | ) | $ | (0.06 | ) | $ | (0.21 | ) | — | $ | (0.21 | ) | $ | 9.85 | (0.7 | )% | $ | 1,834 | 1.92 | % | 0.99 | % | 24 | % | |||||||||||||||||||||||
2010 | 9.64 | 0.17 | 0.48 | 0.65 | (0.17 | ) | — | (0.17 | ) | 10.12 | 6.8 | 1,769 | 1.70 | 1.01 | 33 | |||||||||||||||||||||||||||||||||||||
2009 | 10.46 | 0.19 | (0.77 | ) | (0.58 | ) | (0.19 | ) | $ | (0.05 | ) | (0.24 | ) | 9.64 | (5.3 | ) | 1,451 | 2.07 | 1.02 | 89 | ||||||||||||||||||||||||||||||||
2008(b) | 11.33 | 0.17 | (0.87 | ) | (0.70 | ) | (0.17 | ) | — | (0.17 | ) | 10.46 | (6.2 | ) | 1,490 | 2.14 | (c) | 0.98 | (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 do not include include a reduction for custodian fee credits on cash balances maintained with the custodian (“Custodian Fee Credits”). Including such Custodian Fee Credits, the ratios for the years ended September 30, 2011, 2010, 2009, 2008, and 2007 would have been 1.22%, 1.24%, 1.25%,1.21%, and 1.19% (Class AAA), 1.47%, 1.49%, 1.50%, 1.46%, and 1.44% (Class A), 1.97%, 1.99%, 2.00%, 1.96%, and 1.94% (Class B and Class C), and 0.97%, 0.99%, 1.00%, and 0.96% (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
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period Ended | Net Asset Value, Beginning of Period | Net Investment Income(a) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Net Investment Income | Net Realized Gain on Investments | Total Distributions | Net Asset Value, End of Period | Total Return† | Net Assets, End of Period (in 000’s) | Net Investment Income | Operating Expenses Net of Waivers/ Reimburse- ments†† | Operating Expenses Before Waivers/ Reimburse- ments††† | Portfolio Turnover Rate | ||||||||||||||||||||||||||||||||||||||||||
Intermediate Bond Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class AAA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 11.90 | $ | 0.29 | $ | 0.03 | $ | 0.32 | $ | (0.29 | ) | $ | (0.02 | ) | $ | (0.31 | ) | $ | 11.91 | 2.7 | % | $ | 16,959 | 2.45 | % | 1.00 | % | 1.39 | % | 16 | % | |||||||||||||||||||||||||
2010 | 11.52 | 0.27 | 0.46 | 0.73 | (0.27 | ) | (0.08 | ) | (0.35 | ) | 11.90 | 6.5 | 17,038 | 2.32 | 1.02 | 1.49 | 14 | |||||||||||||||||||||||||||||||||||||||
2009 | 10.84 | 0.28 | 0.68 | 0.96 | (0.28 | ) | — | (0.28 | ) | 11.52 | 9.0 | 13,949 | 2.51 | 1.04 | 1.58 | 18 | ||||||||||||||||||||||||||||||||||||||||
2008 | 10.80 | 0.36 | 0.04 | 0.40 | (0.36 | ) | — | (0.36 | ) | 10.84 | 3.7 | 10,498 | 3.23 | 1.07 | 1.76 | 32 | ||||||||||||||||||||||||||||||||||||||||
2007 | 10.81 | 0.40 | 0.00 | (b) | 0.40 | (0.41 | ) | — | (0.41 | ) | 10.80 | 3.7 | 9,413 | 3.73 | 1.10 | 1.64 | 20 | |||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 11.90 | $ | 0.27 | $ | 0.04 | $ | 0.31 | $ | (0.28 | ) | $ | (0.02 | ) | $ | (0.30 | ) | $ | 11.91 | 2.6 | % | $ | 842 | 2.33 | % | 1.10 | % | 1.49 | % | 16 | % | |||||||||||||||||||||||||
2010 | 11.51 | 0.26 | 0.47 | 0.73 | (0.26 | ) | (0.08 | ) | (0.34 | ) | 11.90 | 6.4 | 487 | 2.23 | 1.12 | 1.59 | 14 | |||||||||||||||||||||||||||||||||||||||
2009 | 10.84 | 0.27 | 0.67 | 0.94 | (0.27 | ) | — | (0.27 | ) | 11.51 | 8.7 | 523 | 2.40 | 1.14 | 1.68 | 18 | ||||||||||||||||||||||||||||||||||||||||
2008 | 10.80 | 0.34 | 0.05 | 0.39 | (0.35 | ) | — | (0.35 | ) | 10.84 | 3.6 | 101 | 3.09 | 1.17 | 1.86 | 32 | ||||||||||||||||||||||||||||||||||||||||
2007 | 10.81 | 0.39 | 0.00 | (b) | 0.39 | (0.40 | ) | — | (0.40 | ) | 10.80 | 3.7 | 69 | 3.64 | 1.20 | 1.74 | 20 | |||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 11.90 | $ | 0.20 | $ | 0.03 | $ | 0.23 | $ | (0.20 | ) | $ | (0.02 | ) | $ | (0.22 | ) | $ | 11.91 | 2.0 | % | $ | 8 | 1.71 | % | 1.75 | % | 2.14 | % | 16 | % | |||||||||||||||||||||||||
2010 | 11.51 | 0.18 | 0.47 | 0.65 | (0.18 | ) | (0.08 | ) | (0.26 | ) | 11.90 | 5.8 | 38 | 1.59 | 1.77 | 2.24 | 14 | |||||||||||||||||||||||||||||||||||||||
2009 | 10.84 | 0.20 | 0.67 | 0.87 | (0.20 | ) | — | (0.20 | ) | 11.51 | 8.0 | 130 | 1.77 | 1.79 | 2.33 | 18 | ||||||||||||||||||||||||||||||||||||||||
2008 | 10.80 | 0.28 | 0.03 | 0.31 | (0.27 | ) | — | (0.27 | ) | 10.84 | 2.9 | 48 | 2.53 | 1.82 | 2.51 | 32 | ||||||||||||||||||||||||||||||||||||||||
2007 | 10.81 | 0.32 | 0.00 | (b) | 0.32 | (0.33 | ) | — | (0.33 | ) | 10.80 | 3.0 | 93 | 2.97 | 1.85 | 2.39 | 20 | |||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 11.32 | $ | 0.17 | $ | 0.04 | $ | 0.21 | $ | (0.19 | ) | $ | (0.02 | ) | $ | (0.21 | ) | $ | 11.32 | 1.9 | % | $ | 2,234 | 1.51 | % | 1.75 | % | 2.14 | % | 16 | % | |||||||||||||||||||||||||
2010 | 10.96 | 0.17 | 0.44 | 0.61 | (0.17 | ) | (0.08 | ) | (0.25 | ) | 11.32 | 5.7 | 1,716 | 1.50 | 1.77 | 2.24 | 14 | |||||||||||||||||||||||||||||||||||||||
2009 | 10.31 | 0.19 | 0.65 | 0.84 | (0.19 | ) | — | (0.19 | ) | 10.96 | 8.3 | 582 | 1.76 | 1.79 | 2.33 | 18 | ||||||||||||||||||||||||||||||||||||||||
2008 | 10.28 | 0.24 | 0.05 | 0.29 | (0.26 | ) | — | (0.26 | ) | 10.31 | 2.8 | 478 | 2.29 | 1.82 | 2.51 | 32 | ||||||||||||||||||||||||||||||||||||||||
2007 | 10.31 | 0.40 | 0.09 | 0.49 | (0.52 | ) | — | (0.52 | ) | 10.28 | 4.8 | 15 | 3.96 | 1.85 | 2.39 | 20 | ||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | $ | 11.91 | $ | 0.32 | $ | 0.03 | $ | 0.35 | $ | (0.32 | ) | $ | (0.02 | ) | $ | (0.34 | ) | $ | 11.92 | 3.0 | % | $ | 125 | 2.68 | % | 0.75 | % | 1.14 | % | 16 | % | |||||||||||||||||||||||||
2010 | 11.52 | 0.30 | 0.47 | 0.77 | (0.30 | ) | (0.08 | ) | (0.38 | ) | 11.91 | 6.8 | 125 | 2.58 | 0.77 | 1.24 | 14 | |||||||||||||||||||||||||||||||||||||||
2009 | 10.85 | 0.31 | 0.67 | 0.98 | (0.31 | ) | — | (0.31 | ) | 11.52 | 9.1 | 322 | 2.75 | 0.79 | 1.33 | 18 | ||||||||||||||||||||||||||||||||||||||||
2008(c) | 11.09 | 0.28 | (0.25 | ) | 0.03 | (0.27 | ) | — | (0.27 | ) | 10.85 | 0.2 | 363 | 3.57 | (d) | 0.84 | (d) | 1.53 | (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 do not include a reduction for custodian fee credits on cash balances maintained with the custodian (“Custodian Fee Credits”). Including such Custodian Fee Credits, the ratios for the years ended September 30, 2010, 2009, 2008, and 2007 would have been 1.00%, 1.00%, 1.00%, and 1.00% (Class AAA), 1.10%, 1.10%,1.10%, and 1.10% (Class A), 1.75%, 1.75%, 1.75%, and 1.75% (Class B and Class C), and 0.75%, 0.75%, and 0.75% (Class I), respectively. For the year ended September 30, 2011, there were no Custodian Fee Credits. |
††† | The ratios do not include a reduction for Custodian Fee Credits. Including such Custodian Fee Credits, the ratios for the years ended September 30, 2010, 2009, 2008, and 2007 would have been 1.47%, 1.54%, 1.69%, and 1.54% (Class AAA), 1.57%, 1.64%, 1.79%, and 1.64% (Class A), 2.22%, 2.29%, 2.44%, and 2.29% (Class B and Class C), and 1.22%, 1.29%, and 1.44% (Class I), respectively. For the year ended September 30, 2011, 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) | 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
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 (“Mighty Mites 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 SmallCap Equity Fund, Income Fund, and Equity 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 Mites Fund seeks to provide long-term capital appreciation by investing primarily in companies with a market capitalization of $500 million or less at the time of initial investment. |
• | SmallCap Equity Fund seeks to provide long-term capital appreciation by investing primarily in companies with a market capitalization between $100 million and $2.5 billion at the time of initial investment. |
• | Income Fund seeks to provide a high level of current income as well as long-term capital appreciation. |
• | Equity Fund seeks to provide capital appreciation. The Equity 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)
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 the 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, 2011 is as follows:
Valuation Inputs | ||||||||||||||||
Level 1 Quoted Prices | Level 2 Other Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Total Market Value at 9/30/11 | |||||||||||||
MIGHTY MITESSM FUND | ||||||||||||||||
INVESTMENTS IN SECURITIES: | ||||||||||||||||
ASSETS (Market Value): | ||||||||||||||||
Common Stocks: | ||||||||||||||||
Broadcasting | $ | 10,893,918 | — | $ | 0 | $ | 10,893,918 | |||||||||
Business Services | 23,364,337 | — | 3 | 23,364,340 | ||||||||||||
Cable | 129,996 | — | 0 | 129,996 | ||||||||||||
Educational Services | 4,861,437 | — | 0 | 4,861,437 | ||||||||||||
Entertainment | 1,341,833 | — | 104,864 | 1,446,697 | ||||||||||||
Equipment and Supplies | 23,304,952 | — | 3,088 | 23,308,040 | ||||||||||||
Health Care | 50,583,494 | — | 12,280 | 50,595,774 | ||||||||||||
Real Estate | 5,743,883 | $ | 49,050 | 7,550 | 5,800,483 | |||||||||||
Other Industries (a) | 293,221,684 | — | — | 293,221,684 | ||||||||||||
Total Common Stocks | 413,445,534 | 49,050 | 127,785 | 413,622,369 | ||||||||||||
Preferred Stocks (a) | 536,568 | — | — | 536,568 | ||||||||||||
Convertible Preferred Stocks (a) | — | 9,900 | — | 9,900 | ||||||||||||
Rights (a) | — | — | 190,000 | 190,000 | ||||||||||||
Warrants (a) | — | — | 0 | 0 | ||||||||||||
U.S. Government Obligations | — | 129,831,975 | — | 129,831,975 | ||||||||||||
TOTAL INVESTMENTS IN SECURITIES – ASSETS | $ | 413,982,102 | $ | 129,890,925 | $ | 317,785 | $ | 544,190,812 | ||||||||
SMALLCAP EQUITY FUND | ||||||||||||||||
INVESTMENTS IN SECURITIES: | ||||||||||||||||
ASSETS (Market Value): | ||||||||||||||||
Common Stocks (a) | $ | 37,694,977 | — | — | $ | 37,694,977 | ||||||||||
U.S. Government Obligations | — | $ | 2,294,743 | — | 2,294,743 | |||||||||||
TOTAL INVESTMENTS IN SECURITIES – ASSETS | $ | 37,694,977 | $ | 2,294,743 | — | $ | 39,989,720 | |||||||||
INCOME FUND | ||||||||||||||||
INVESTMENTS IN SECURITIES: | ||||||||||||||||
ASSETS (Market Value): | ||||||||||||||||
Common Stocks (a) | $ | 4,207,418 | — | — | $ | 4,207,418 | ||||||||||
Preferred Stocks (a) | 310,320 | — | — | 310,320 | ||||||||||||
U.S. Government Obligations | — | $ | 608,932 | — | 608,932 | |||||||||||
TOTAL INVESTMENTS IN SECURITIES – ASSETS | $ | 4,517,738 | $ | 608,932 | — | $ | 5,126,670 | |||||||||
EQUITY FUND | ||||||||||||||||
INVESTMENTS IN SECURITIES: | ||||||||||||||||
ASSETS (Market Value): | ||||||||||||||||
Common Stocks (a) | $ | 83,574,071 | — | — | $ | 83,574,071 | ||||||||||
Short-Term Investments (a) | 790,302 | — | — | 790,302 | ||||||||||||
TOTAL INVESTMENTS IN SECURITIES – ASSETS | $ | 84,364,373 | — | — | $ | 84,364,373 |
39
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
Valuation Inputs | ||||||||||||||||
Level 1 Quoted Prices | Level 2 Other Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Total Market Value at 9/30/11 | |||||||||||||
BALANCED FUND | ||||||||||||||||
INVESTMENTS IN SECURITIES: | ||||||||||||||||
ASSETS (Market Value): | ||||||||||||||||
Common Stocks (a) | $ | 50,582,307 | — | — | $ | 50,582,307 | ||||||||||
Corporate Bonds | — | $ | 16,905,505 | — | 16,905,505 | |||||||||||
Short-Term Investments (a) | 3,065,270 | — | — | 3,065,270 | ||||||||||||
U.S. Government Agency Obligations | — | 9,966,903 | — | 9,966,903 | ||||||||||||
U.S. Government Obligations | — | 6,719,693 | — | 6,719,693 | ||||||||||||
TOTAL INVESTMENTS IN SECURITIES – ASSETS | $ | 53,647,577 | $ | 33,592,101 | — | $ | 87,239,678 | |||||||||
INTERMEDIATE BOND FUND | ||||||||||||||||
INVESTMENTS IN SECURITIES: | ||||||||||||||||
ASSETS (Market Value): | ||||||||||||||||
Corporate Bonds | — | $ | 7,207,774 | — | $ | 7,207,774 | ||||||||||
U.S. Government Agency Obligations | — | 5,628,310 | — | 5,628,310 | ||||||||||||
U.S. Government Obligations | — | 4,770,896 | — | 4,770,896 | ||||||||||||
Short-Term Investments (a) | $ | 2,794,690 | — | — | 2,794,690 | |||||||||||
TOTAL INVESTMENTS IN SECURITIES – ASSETS | $ | 2,794,690 | $ | 17,606,980 | — | $ | 20,401,670 |
(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, 2011.
There were no Level 3 investments held at September 30, 2011 or September 30, 2010 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:
MIGHTY MITESSM FUND | Balance as of 9/30/10 | Accrued discounts/ (premiums) | Realized gain/ (loss) | Change in unrealized appreciation/ depreciation† | Purchases | Sales | Transfers into Level 3†† | Transfers out of Level 3†† | Balance as of 9/30/11 | Net change in unrealized appreciation/ depreciation during the period on Level 3 investments held at 9/30/11† | ||||||||||||||||||||||||||||||
INVESTMENTS IN SECURITIES: |
| |||||||||||||||||||||||||||||||||||||||
ASSETS (Market Value): | ||||||||||||||||||||||||||||||||||||||||
Common Stocks: | ||||||||||||||||||||||||||||||||||||||||
Broadcasting | $ | 1 | $ | — | $ | — | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | $ | 0 | $ | (1 | ) | ||||||||||||||||||
Business Services | 0 | — | — | — | — | — | 3 | — | 3 | — | ||||||||||||||||||||||||||||||
Cable | 0 | — | — | — | — | — | — | — | 0 | — | ||||||||||||||||||||||||||||||
Educational Services | 0 | — | — | — | — | — | — | — | 0 | — | ||||||||||||||||||||||||||||||
Entertainment | 82,092 | — | — | 22,772 | — | — | — | — | 104,864 | 22,772 | ||||||||||||||||||||||||||||||
Equipment & Supplies | — | — | — | 3,088 | 0 | — | — | — | 3,088 | 3,088 | ||||||||||||||||||||||||||||||
Health Care | 12,280 | — | — | — | — | — | — | — | 12,280 | — | ||||||||||||||||||||||||||||||
Real Estate | 1,413 | — | — | 6,137 | — | — | — | — | 7,550 | 6,137 | ||||||||||||||||||||||||||||||
Telecommunications | 10 | — | (3 | ) | (7 | ) | — | (0 | ) | — | — | — | — | |||||||||||||||||||||||||||
Total Common Stocks | 95,796 | — | (3 | ) | 31,989 | 0 | (0 | ) | 3 | — | 127,785 | 31,996 | ||||||||||||||||||||||||||||
Rights: | ||||||||||||||||||||||||||||||||||||||||
Health Care | — | — | — | 190,000 | 0 | — | — | — | 190,000 | 190,000 | ||||||||||||||||||||||||||||||
Warrants: | ||||||||||||||||||||||||||||||||||||||||
Broadcasting | — | — | — | — | — | — | 0 | — | 0 | — | ||||||||||||||||||||||||||||||
Metals & Mining | — | — | — | — | 0 | — | — | — | 0 | — | ||||||||||||||||||||||||||||||
TOTAL INVESTMENTS IN SECURITIES | $ | 95,796 | $ | — | $ | (3 | ) | $ | 221,989 | $ | 0 | $ | (0 | ) | $ | 3 | $ | — | $ | 317,785 | $ | 221,996 |
† | 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. |
40
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
In May 2011, the FASB issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“IFRS”).” ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 will require reporting entities to disclose the following information for fair value measurements categorized within Level 3 of the fair value hierarchy: quantitative information about the unobservable inputs used in the fair value measurement, the valuation processes used by the reporting entity, and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers into and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. At this time, management is evaluating the implications of ASU 2011-04 and its impact on the financial statements.
Securities Sold Short. The Mighty Mites 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 Mites 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 Mites Fund records a realized gain or loss when the short position is closed out. By entering into a short sale, the Mighty Mites 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 Mites Fund on the ex-dividend date and interest expense is recorded on the accrual basis. At September 30, 2011, there were no short sales outstanding for the Mighty Mites Fund.
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 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 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 Mites 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 Mites Fund held as of September 30, 2011, refer to its Schedule of Investments.
41
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
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, 2011, the Mighty Mites Fund’s, Equity Fund’s, Balanced Fund’s, and Intermediate Bond Fund’s pro rata portion of the periodic expenses charged by the Acquired Funds was less than one basis point for each of these four funds. During the year ended September 30, 2011, the Income Fund and SmallCap Equity Fund held 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 from foreign securities that are recorded as soon after the ex-dividend date as a Fund becomes aware of such dividends.
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 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 for the year ended September 30, 2011 are custodian fee expense and interest expense that were paid for by prior year custodian fee credits as follows:
Mighty MitesSM Fund | SmallCap Equity Fund | Income Fund | Equity Fund | Balanced Fund | Intermediate Bond Fund | |||||||||||||||||||
Expenses paid for by prior year custodian fee credits: | ||||||||||||||||||||||||
Custodian fee expense | $ | — | $ | — | $ | — | $ | (21,582 | ) | $ | (20,867 | ) | $ | — | ||||||||||
Interest expense | — | (3 | ) | (28 | ) | (325 | ) | (9 | ) | (11 | ) |
Distributions to Shareholders. Distributions from net investment income are declared and paid annually for the Mighty Mites 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 changes to net operating loss and capital gain adjustments on the sale of securities with different book and tax basis (Mighty Mites and SmallCap Equity Funds), expired capital loss carryforward (SmallCap Equity Fund) and hybrid securities (Income Fund). These reclassifications have no impact on the NAV of the Funds. For the year ended September 30, 2011, the following reclassifications were made to increase/decrease such amounts with offsetting adjustments to paid-in-capital.
42
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
Accumulated Undistributed Net Investment Income (Loss) | Accumulated Net Realized Gain (Loss) on Investments | Paid-in Capital | ||||||||||
Mighty MitesSM Fund | $ | 6,495,058 | $ | (6,483,460 | ) | $ | (11,598 | ) | ||||
SmallCap Equity Fund | 289,175 | 1,948,391 | (2,237,566 | ) | ||||||||
Income Fund | (975 | ) | 975 | — | ||||||||
Equity Fund | — | — | — | |||||||||
Balanced Fund | — | — | — | |||||||||
Intermediate Bond Fund | — | — | — |
The tax character of distributions paid during the years ended September 30, 2011 and September 30, 2010 was as follows:
Year Ended September 30, | Year Ended September 30, | Year Ended September 30, | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Mighty MitesSM Fund | SmallCap Equity Fund | Income Fund | ||||||||||||||||||||||
Ordinary Income (inclusive of short-term capital gains) | $ | 7,833,559 | $ | 48,672 | $ | — | $ | — | $ | 51,071 | $ | 80,504 | ||||||||||||
Net long-term capital gains | 4,564,207 | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | $ | 12,397,766 | $ | 48,672 | $ | — | $ | — | $ | 51,071 | $ | 80,504 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Equity Fund | Balanced Fund | Intermediate Bond Fund | ||||||||||||||||||||||
Ordinary Income | $ | 612,234 | $ | 1,229,224 | $ | 1,852,049 | $ | 1,819,630 | $ | 411,814 | $ | 398,653 | ||||||||||||
Net long-term capital gains | — | — | — | — | 31,289 | 113,280 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | $ | 612,234 | $ | 1,229,224 | $ | 1,852,049 | $ | 1,819,630 | $ | 443,103 | $ | 511,933 | ||||||||||||
|
|
|
|
|
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|
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|
|
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, 2011, the components of accumulated earnings/losses on a tax basis were as follows:
Mighty MitesSM Fund | SmallCap Equity Fund | Income Fund | Equity Fund | Balanced Fund | Intermediate Bond Fund | |||||||||||||||||||
Undistributed ordinary income | $ | 2,598,469 | $ | — | $ | 9,762 | $ | 578,749 | $ | 9,389 | $ | 18,823 | ||||||||||||
Undistributed long-term capital gain | 7,697,816 | — | — | — | — | 122,960 | ||||||||||||||||||
Accumulated capital loss carryforward | — | (585,873 | ) | (2,661,013 | ) | (21,626,325 | ) | (6,176,716 | ) | — | ||||||||||||||
Unrealized appreciation/depreciation | 4,510,567 | (9,888,689 | ) | (68,300 | ) | (4,120,028 | ) | (268,697 | ) | 1,219,511 | ||||||||||||||
Post-October losses | (542 | ) | (801 | ) | — | — | — | — | ||||||||||||||||
Other temporary differences | — | — | (4,800 | ) | — | — | (10,557 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total accumulated earnings | $ | 14,806,310 | $ | (10,475,363 | ) | $ | (2,724,351 | ) | $ | (25,167,604 | ) | $ | (6,436,024 | ) | $ | 1,350,737 | ||||||||
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|
The following summarizes capital loss carryforwards and expiration dates for each Fund at September 30, 2011:
Expiring in Fiscal Year | Mighty MitesSM Fund | SmallCap Equity Fund | Income Fund | Equity Fund | Balanced Fund | Intermediate Bond Fund | ||||||||||||||||||
2012 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
2013 | — | — | — | — | — | — | ||||||||||||||||||
2014 | — | — | — | — | — | — | ||||||||||||||||||
2015 | — | — | — | — | — | — | ||||||||||||||||||
2016 | — | 210 | — | — | — | — | ||||||||||||||||||
2017 | — | 585,663 | 1,094,920 | — | — | — | ||||||||||||||||||
2018 | — | — | 1,503,326 | 21,626,325 | 6,176,716 | — | ||||||||||||||||||
2019 | — | — | 62,767 | — | — | — |
Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carryforward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. In addition, these losses must be utilized prior to the losses incurred in pre-enactment taxable years. As a result of the rule, pre-enactment capital loss carryforwards may have an increased likelihood of expiring unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
43
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
These capital loss carryforwards are available to reduce future required distributions of net capital gains to shareholders.
During the year ended September 30, 2011, the SmallCap Equity Fund, Equity Fund, and Balanced Fund utilized capital loss carryforwards of $2,876,339, $11,461,752, and $10,470,553, respectively, and $1,969,147 of capital loss carryforwards expired for SmallCap Equity Fund.
Under the current tax law, capital losses related to securities realized after October 31 and prior to a fund’s fiscal year end may be treated as occurring on the first day of the following year. For the year ended September 30, 2011, Mighty Mites Fund and SmallCap Equity Fund deferred currency losses of $542 and $801, respectively.
At September 30, 2011, the temporary difference between book basis and tax basis net unrealized appreciation/depreciation on investments was primarily due to deferral of losses from wash sales for tax purposes.
The following summarizes the tax cost of investments and the related net unrealized appreciation/depreciation at September 30, 2011:
Mighty MitesSM Fund | SmallCap Equity Fund | Income Fund | Equity Fund | Balanced Fund | Intermediate Bond Fund | |||||||||||||||||||
Aggregate cost of investments | $ | 539,680,162 | $ | 49,878,388 | $ | 5,194,971 | $ | 88,484,401 | $ | 87,508,375 | $ | 19,182,158 | ||||||||||||
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Gross unrealized appreciation | $ | 66,625,512 | $ | 517,803 | $ | 483,756 | $ | 5,882,659 | $ | 5,999,584 | $ | 1,239,819 | ||||||||||||
Gross unrealized depreciation | (62,114,862 | ) | (10,406,471 | ) | (552,057 | ) | (10,002,687 | ) | (6,268,281 | ) | (20,307 | ) | ||||||||||||
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Net unrealized appreciation/depreciation | $ | 4,510,650 | $ | (9,888,668 | ) | $ | (68,301 | ) | $ | (4,120,028 | ) | $ | (268,697 | ) | $ | 1,219,512 | ||||||||
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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, 2011, Mighty Mites Fund paid $11,599 for tax and interest. As of September 30, 2011, 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, 2008 through September 30, 2011 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 Mites 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.
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 transferred dispositive and voting control to the Funds’ Proxy Voting Committee. During the year ended September 30, 2011, the Mighty Mites 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 $114,002.
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, 2012. For the year ended September 30, 2011, the Adviser waived fees or reimbursed expenses in the amounts of $60,150, $49,220, and $67,194 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%, 2.00%, and 1.00%, respectively, and for Class A of 1.75%, 2.25%, and 1.10%, respectively, and for Class B (for the Intermediate Bond Fund only) and Class C of 2.25%, 2.75%, and 1.75%, respectively, and for Class I of 1.25%, 1.75%, and 0.75%, respectively, of average daily net assets, the annual limitation under the Advisory Agreements. Under the previous Advisory Agreement, which was in effect until January 27, 2011, Income Fund’s expense limitation was 1.50% for Class AAA, 1.75% for Class A, 2.25% for Class C, and 1.25% for Class I, of average daily net assets. As of September 30, 2011, the cumulative unreimbursed amounts which may be recovered by the Adviser within the next two fiscal years are $130,424, $136,498, and $148,776 for the SmallCap Equity, Income, and Intermediate Bond Funds, respectively.
44
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
For the year ended September 30, 2010, expiring September 30, 2012 | For the year ended September 30, 2011, expiring September 30, 2013 | Total | ||||||||||
SmallCap Equity Fund | $ | 70,274 | $ | 60,150 | $ | 130,424 | ||||||
Income Fund | 87,278 | 49,220 | 136,498 | |||||||||
Intermediate Bond Fund | 81,582 | 67,194 | 148,776 |
The Adviser has a Subadvisory Agreement with Westwood Management Corp. (the “Subadviser”) for the Equity Fund, Balanced Fund, and Intermediate Bond Fund. The Adviser paid the Subadviser 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 $9,000 plus $2,000 for each Board meeting attended, and they are reimbursed by the Trust for any out of pocket expenses incurred in attending meetings. All Board committee members receive $1,000 per meeting attended, the Chairman of the Audit Committee receives a $3,000 annual fee, and the Lead Trustee receives an annual fee of $2,000. A Trustee may receive a single meeting fee, allocated among the participating funds, for attending 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.
4. Distribution Plan. The Trust’s Board has adopted a distribution plan (the “Plan”) for each class of shares, except for Class I Shares, pursuant to Rule 12b-1 under the 1940 Act. G.distributors, LLC serves as successor “Distributor” to Gabelli & Company, Inc. (“Gabelli & Co.”) effective August 1, 2011, both affiliates of the Funds. Under the Class AAA, Class A, Class B, and Class C Share Plans, payments are authorized to the Distributor 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, 2011, other than short-term securities, are as follows:
Purchases (excluding U.S. Government Securities) | Sales (excluding U.S. Government Securities) | Purchases of U.S. Government Securities | Sales of U.S. Government Securities | |||||||||||||
Mighty MitesSM Fund | $ | 253,843,285 | $ | 84,982,563 | — | $ | 137,000 | |||||||||
SmallCap Equity Fund | 46,829,305 | 15,906,535 | — | — | ||||||||||||
Income Fund | 708,057 | 1,003,500 | — | 250,000 | ||||||||||||
Equity Fund | 40,098,494 | 61,709,581 | — | — | ||||||||||||
Balanced Fund | 26,128,407 | 45,039,884 | $ | 1,071,462 | 11,986,872 | |||||||||||
Intermediate Bond Fund | 428,384 | 200,000 | 2,199,597 | 2,361,292 |
6. Transactions with Affiliates. During the year ended September 30, 2011, the Mighty Mites Fund, and the Income Fund paid brokerage commissions on security trades of $184,006 and $906, respectively, to Gabelli & Co. Additionally, the current and former Distributors retained $129,970 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, 2011, the Mighty Mites Fund, Equity Fund, and Balanced Fund each paid or accrued $45,000 and SmallCap Equity Fund paid or accrued $3,750 to the Adviser in connection with the cost of computing these Funds’ NAVs. This expense was not charged during the year ended September 30, 2011 for the Income Fund and Intermediate Bond Fund.
7. Shares of Beneficial Interest. The Funds, except for the SmallCap Equity Fund, Income Fund, and Equity Fund that no longer offer 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 the Distributor, through selected broker/dealers, or the transfer agent. Class I Shares are offered without a sales charge solely to certain institutions, directly through the Distributor, or brokers that have entered in to selling agreements specified with respect to Class I Shares. 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 the Distributor. SmallCap Equity Fund’s, Income Fund’s, and Equity Fund’s Class B Shares were fully redeemed on May 3, 2011, December 1, 2009, and March 1, 2011, respectively, and are not available for exchanges from other funds.
45
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
The Mighty Mites Fund, and, since January 28, 2010, the SmallCap Equity Fund and the 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 as an increase in paid-in capital. The redemption fees retained by the Mighty Mites Fund during the years ended September 30, 2011 and September 30, 2010 amounted to $10,418 and $689, respectively. Redemption fees retained by the SmallCap Equity Fund and Income Fund for the year ended September 30, 2011 and for the period between January 28, 2010 and September 30, 2010 were $1,107, $52, $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 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, | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Mighty MitesSM Fund | SmallCap Equity Fund | Income Fund | ||||||||||||||||||||||
Class AAA | ||||||||||||||||||||||||
Shares sold | 14,701,924 | 8,736,054 | 2,341,059 | 232,247 | 134,471 | 61,267 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 445,730 | 2,532 | — | — | 5,654 | 9,616 | ||||||||||||||||||
Shares redeemed | (8,496,034 | ) | (4,793,343 | ) | (877,330 | ) | (214,599 | ) | (170,633 | ) | (129,829 | ) | ||||||||||||
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Net increase/(decrease) in Class AAA Shares | 6,651,620 | 3,945,243 | 1,463,729 | 17,648 | (30,508 | ) | (58,946 | ) | ||||||||||||||||
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Class A | ||||||||||||||||||||||||
Shares sold | 3,765,987 | 2,583,100 | 331,023 | 91,708 | 3,772 | 39,505 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 83,026 | 298 | — | — | 179 | 378 | ||||||||||||||||||
Shares redeemed | (2,548,840 | ) | (686,314 | ) | (204,593 | ) | (17,281 | ) | (41,726 | ) | (6,795 | ) | ||||||||||||
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Net increase/(decrease) in Class A Shares | 1,300,173 | 1,897,084 | 126,430 | 74,427 | (37,775 | ) | 33,088 | |||||||||||||||||
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Class B | ||||||||||||||||||||||||
Shares sold | 209 | — | — | 133 | — | — | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 146 | 2 | — | — | — | — | ||||||||||||||||||
Shares redeemed | (4,916 | ) | (3,880 | ) | (441 | )* | (143 | ) | — | (10 | )** | |||||||||||||
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Net increase/(decrease) in Class B Shares | (4,561 | ) | (3,878 | ) | (441 | ) | (10 | ) | — | (10 | ) | |||||||||||||
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Class C | ||||||||||||||||||||||||
Shares sold | 3,846,639 | 1,898,393 | 415,018 | 50,161 | 42,287 | 1,464 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 71,039 | 237 | — | — | 19 | 63 | ||||||||||||||||||
Shares redeemed | (813,157 | ) | (213,750 | ) | (34,016 | ) | (8,735 | ) | (2,396 | ) | (23,854 | ) | ||||||||||||
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Net increase/(decrease) in Class C Shares | 3,104,521 | 1,684,880 | 381,002 | 41,426 | 39,910 | (22,327 | ) | |||||||||||||||||
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Class I | ||||||||||||||||||||||||
Shares sold | 2,863,434 | 740,998 | 40,970 | 109,191 | 4,674 | 1,883 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 25,752 | 131 | — | — | 98 | 106 | ||||||||||||||||||
Shares redeemed | (768,626 | ) | (195,587 | ) | (65,947 | ) | (51,916 | ) | (41 | ) | (3,172 | ) | ||||||||||||
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Net increase/(decrease) in Class I Shares | 2,120,560 | 545,542 | (24,977 | ) | 57,275 | 4,731 | (1,183 | ) | ||||||||||||||||
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Equity Fund | Balanced Fund | Intermediate Bond Fund | ||||||||||||||||||||||
Class AAA | ||||||||||||||||||||||||
Shares sold | 610,765 | 1,629,832 | 1,128,520 | 1,229,228 | 397,169 | 408,397 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 65,103 | 137,019 | 154,208 | 162,237 | 22,028 | 28,200 | ||||||||||||||||||
Shares redeemed | (2,765,936 | ) | (6,668,783 | ) | (4,021,810 | ) | (3,632,606 | ) | (427,000 | ) | (216,571 | ) | ||||||||||||
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Net increase/(decrease) in Class AAA Shares | (2,090,068 | ) | (4,901,932 | ) | (2,739,082 | ) | (2,241,141 | ) | (7,803 | ) | 220,026 | |||||||||||||
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Class A | ||||||||||||||||||||||||
Shares sold | 89,981 | 147,529 | 22,244 | 21,197 | 53,130 | 24,621 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 1,876 | 5,445 | 5,917 | 5,985 | 861 | 936 | ||||||||||||||||||
Shares redeemed | (463,101 | ) | (136,675 | ) | (99,023 | ) | (141,135 | ) | (24,184 | ) | (30,124 | ) | ||||||||||||
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Net increase/(decrease) in Class A Shares | (371,244 | ) | 16,299 | (70,862 | ) | (113,953 | ) | 29,807 | (4,567 | ) | ||||||||||||||
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Class B | ||||||||||||||||||||||||
Shares sold | — | — | 253 | 1,335 | — | — | ||||||||||||||||||
Shares issued upon reinvestment of distributions | — | 2 | 31 | 42 | 27 | 104 | ||||||||||||||||||
Shares redeemed | (791 | )*** | (11 | ) | (4,887 | ) | (4,101 | ) | (2,593 | ) | (8,155 | ) | ||||||||||||
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Net increase/(decrease) in Class B Shares | (791 | ) | (9 | ) | (4,603 | ) | (2,724 | ) | (2,566 | ) | (8,051 | ) | ||||||||||||
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46
GAMCO Westwood Funds
Notes to Financial Statements (Continued)
Year Ended September 30, | Year Ended September 30, | Year Ended September 30, | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Equity Fund | Balanced Fund | Intermediate Bond Fund | ||||||||||||||||||||||
Class C | ||||||||||||||||||||||||
Shares sold | 11,113 | 21,984 | 58,562 | 109,432 | 206,062 | 141,211 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | — | 403 | 3,614 | 2,454 | 1,234 | 1,543 | ||||||||||||||||||
Shares redeemed | (29,449 | ) | (38,560 | ) | (114,884 | ) | (124,274 | ) | (161,650 | ) | (44,256 | ) | ||||||||||||
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Net increase/(decrease) in Class C Shares | (18,336 | ) | (16,173 | ) | (52,708 | ) | (12,388 | ) | 45,646 | 98,498 | ||||||||||||||
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Class I | ||||||||||||||||||||||||
Shares sold | 180,607 | 78,474 | 92,692 | 89,745 | 7,954 | 12,158 | ||||||||||||||||||
Shares issued upon reinvestment of distributions | 916 | 955 | 3,667 | 2,755 | 339 | 373 | ||||||||||||||||||
Shares redeemed | (148,140 | ) | (41,387 | ) | (84,939 | ) | (68,243 | ) | (8,295 | ) | (29,971 | ) | ||||||||||||
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Net increase/(decrease) in Class I Shares | 33,383 | 38,042 | 11,420 | 24,257 | (2 | ) | (17,440 | ) | ||||||||||||||||
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* | SmallCap Equity Fund’s Class B Shares were fully redeemed on May 3, 2011. |
** | Income Fund’s Class B Shares were fully redeemed on December 1, 2009. |
*** | Equity Fund’s Class B Shares were fully redeemed on March 1, 2011. |
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 Mites Fund’s transactions in the securities of these issuers during the year ended September 30, 2011 is set forth below:
Beginning Shares | Shares Purchased | Shares Sold | Ending Shares | Dividends | Net Change In Unrealized Appreciation/ Depreciation | Realized Gain/ (Loss) | Value at September 30, 2011 | Percent Owned of Shares Outstanding | ||||||||||||||||||||||||||||
Beasley Broadcast Group Inc., Cl. A* | 133,400 | 420,000 | (8,400 | ) | 545,000 | — | $ | (913,847 | ) | $ | (53,984 | ) | $ | 2,081,900 | 8.92 | % | ||||||||||||||||||||
Corning Natural Gas Corp.** | 53,671 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Edgewater Technology Inc.* | 377,243 | 255,346 | — | 632,589 | — | (256,208 | ) | — | 1,473,932 | 5.08 | % | |||||||||||||||||||||||||
Sevcon Inc.*** | 252,300 | 62,654 | — | 314,954 | — | 324,291 | — | 1,999,958 | 9.37 | % | ||||||||||||||||||||||||||
SL Industries Inc.* | 201,300 | 32,616 | (1,000 | ) | 232,916 | — | 458,308 | — | 3,924,635 | 5.13 | % | |||||||||||||||||||||||||
Sonesta International Hotels Corp., Cl. A* | 161,100 | 81,873 | — | 242,973 | $ | 16,350 | 662,044 | 13,107 | 4,592,190 | 6.57 | % | |||||||||||||||||||||||||
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Total | $ | 16,350 | $ | 274,588 | $ | (40,877 | ) | $ | 14,072,615 | |||||||||||||||||||||||||||
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* | Security was not affiliated at September 30, 2010. |
** | Security is no longer considered affiliated at September 30, 2011. |
*** | Security name changed from Tech/Ops Sevcon Inc. |
9. 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.
10. Other Matters. On April 24, 2008, an affiliate of the Adviser, Gabelli Funds, LLC (by virtue of common ownership), entered into a settlement with the SEC to resolve an inquiry regarding prior frequent trading 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. Under the terms of the settlement, Gabelli Funds, LLC, without admitting or denying the SEC’s findings and allegations, paid $16 million (which included a $5 million civil monetary penalty). On the same day, the SEC filed a civil action in the U.S. District Court for the Southern District of New York 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, who also is an officer of the Global Growth Fund and other funds in the Gabelli/GAMCO complex, including these Funds, denies the allegations and is continuing in his positions with the Adviser and the funds. The settlement by Gabelli Funds, LLC did not have, and the resolution of the action against the officer is not expected to have, a material adverse impact on the Adviser or its ability to fulfill its obligations under the Advisory Agreement.
11. 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:
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, 2011, 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, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, NY
November 28, 2011
48
2011 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, 2011 which was derived from U.S. Treasury securities was 0.00%, 0.59%, 0.00%, 11.53%, and 18.45%, 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, 2011. 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, 2011, the Fund paid to shareholders ordinary income dividends (comprised of short-term capital gains) totaling $0.060, $0.037, and $0.092 per share for Class AAA, Class A, and Class I Shares, respectively, and long-term capital gains totaling $4,564,207, or the maximum allowable. 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, 2011, 22.05% 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 100% of the ordinary income distribution as qualified short-term gain and 16.46% of the ordinary income distributions as qualified interest income, pursuant to the American Jobs Creation Act of 2004.
Income Fund – For the year ended September 30, 2011, the Fund paid to shareholders ordinary income dividends (comprised of net investment income) totaling $0.079, $0.060, $0.019, and $0.100 per share for Class AAA, Class A, Class C, and Class I Shares, respectively. For the year ended September 30, 2011, 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 0.65% 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, 2011, the Fund paid to shareholders ordinary income dividends (comprised of net investment income) totaling $0.050, $0.024, and $0.073 per share for Class AAA, Class A, and Class I Shares, respectively. For the year ended September 30, 2011, 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 0.04% 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, 2011, the Fund paid to shareholders ordinary income dividends (comprised of net investment income) totaling $0.184, $0.158, $0.094, $0.102, and $0.212 per share for Class AAA, Class A, Class B, Class C, and Class I Shares, respectively. For the year ended September 30, 2011, 80.28% of the ordinary income dividend qualifies for the dividends received deductions available to corporations. The Fund designates 84.38% of the ordinary income distributions as qualified dividend income, pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designates 48.23% 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, 2011, the Fund paid to shareholders ordinary income dividends (comprised of net investment income) totaling $0.288, $0.276, $0.200, $0.190, and $0.317 per share for Class AAA, Class A, Class B, Class C, and Class I Shares, respectively, and long-term capital gains totaling $31,289, or the maximum allowable. The distributions of long-term capital gains have been designated as a capital gain dividend by the Fund’s Board of Trustees.
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.
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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, 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, BNY Mellon Asset Servicing (BNY), 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 BNY, 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, 2011, 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 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 above the median for the one year and ten year periods and below the median for the three year and five year periods; the Balanced Fund’s performance was below the median for the one year, three year and five year periods and was at the median for the ten year period; 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 Mites Fund’s performance was below the median for the one year period and above the median for the three year, five year and ten year periods; the Income Fund’s performance was below the median for the one year, three year period and five 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 concluded that the Funds’ performance was reasonable in comparison with that of the Performance Peer Groups.
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
50
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, the Balanced Fund, the SmallCap Equity Fund, the Mighty Mites Fund, and the Income Fund were higher than average when compared with those of their Expense Peer Groups. Finally, the Board noted that although the Intermediate Bond Fund’s net 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, 2010. 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, 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 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.
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GAMCO Westwood Funds
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.
Name, Position(s), | Term of Office and Length of Time Served2 | Number of Funds in Fund Complex Overseen by Trustee | Principal Occupation(s) | Other Directorships | ||||||
INDEPENDENT TRUSTEES4: | ||||||||||
Anthony J. Colavita Trustee Age: 75 | Since 1994 | 35 | President of the law firm of Anthony J. Colavita, P.C. | — | ||||||
James P. Conn Trustee Age: 73 | Since 1994 | 19 | Former Managing Director and Chief Investment Officer of Financial Security Assurance Holdings Ltd. (1992-1998) | Director of First Republic Bank (banking) through January 2008 and LaQuinta Corp. (hotels) through January 2006 | ||||||
Werner J. Roeder, M.D. Trustee Age: 71 | Since 1994 | 22 | Medical Director of Lawrence Hospital and practicing private physician | |||||||
Salvatore J. Zizza Trustee Age: 65 | Since 2004 | 29 | Chairman (since 1978) of Zizza & Company, Ltd. (financial consulting); Chairman (since 2006) of Metropolitan Paper Recycling, Inc. (recycling); Chairman (since 2000) of BAM Inc. (manufacturing); Chairman (since 2009) of E-Corp English (business services) | Non-Executive Chairman and Director of Harbor BioSciences, Inc. (biotechnology); Vice Chairman and Director of Trans-Lux Corporation (business services); Chairman and Chief Executive Officer of General Employment Enterprises, Inc. (staffing) Director (since December 2009); Bion Environmental Technologies (technology) (2005-2008); Director of Earl Schieb Inc. (automotive painting) through April 2009. | ||||||
OFFICERS: | ||||||||||
Bruce N. Alpert President and Secretary Age: 59 | 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: 53 | Since 2006 | — | President and Chief Operating Officer of the Open-End Fund Division of Gabelli Funds, LLC since September 2010; 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 | — | ||||||
Peter D. Goldstein Chief Compliance Officer Age: 58 | 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. |
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Gabelli/GAMCO Funds and Your Personal Privacy
Who are we?
The Gabelli/GAMCO Funds are investment companies registered with the Securities and Exchange Commission under the Investment Company Act of 1940. We are managed by Gabelli Funds, LLC, which is affiliated with GAMCO Investors, Inc. GAMCO Investors, Inc. is a publicly held company that has subsidiaries that provide investment advisory or brokerage services for a variety of clients.
What kind of non-public information do we collect about you if you become a Fund 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
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)
Team Managed
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 G. 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
Seeks to invest in securities of companies believed to be undervalued. The Fund’s primary objective is long-term capital appreciation. (Multiclass)
Team Managed
SMALL CAP
Gabelli Small Cap Growth 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
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
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
Seeks to invest in micro-cap companies that have market capitalizations of $500 million or less. The Fund’s primary objective is long-term capital appreciation. (Multiclass) Team Managed
EQUITY INCOME
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 R. 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 G. Marcin, CFA
SPECIALTY EQUITY
GAMCO Vertumnus Fund (formerly 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)
Portfolio Manager: Mario J. Gabelli, CFA
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) Team Managed
SECTOR
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)
Portfolio Manager: Mario J. Gabelli, CFA
MERGER AND ARBITRAGE
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
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 Managers: Charles L. Minter
Martin Weiner, CFA
FIXED INCOME
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 R. Freeman, CFA
CASH MANAGEMENT-MONEY MARKET
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
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 (800-422-3554). Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. The prospectus contains more information about this and other matters and should be read carefully before investing.
Distributed by G.distributors, LLC, One Corporate Center, Rye, NY 10580.
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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
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
Board of Trustees | ||
ANTHONY J. COLAVITA President Anthony J. Colavita, P.C. | WERNER J. ROEDER, MD Medical Director Lawrence Hospital | |
JAMES P. CONN Former Chief Investment Officer Financial Security Assurance Holdings Ltd. | SALVATORE J. ZIZZA Chairman Zizza & Co., Ltd. | |
Officers | ||
BRUCE N. ALPERT President and Secretary | PETER D. GOLDSTEIN Chief Compliance Officer | |
AGNES MULLADY Treasurer |
Investment Adviser
Teton Advisors, Inc.
Custodian
The Bank of New York Mellon
Distributor
G.distributors, LLC
Legal Counsel
Paul Hastings 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’ commentaries are unrestricted. The financial statements and investment portfolio are mailed separately from the commentaries. Both the commentaries 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.
GABWWQ311AR
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 $126,704 in 2010 and $126,704 in 2011. |
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 2010 and $0 in 2011. |
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 $22,400 in 2010 and $22,400 in 2011. 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 2010 and $0 in 2011. |
(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) 0%
(c) 100%
(d) 0%
(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 2010 and $0 in 2011. |
(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 | |
Bruce N. Alpert, Principal Executive Officer |
Date 12/7/11
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 | |
Bruce N. Alpert, Principal Executive Officer |
Date 12/7/11
By (Signature and Title)* | /s/ Agnes Mullady | |
Agnes Mullady, Principal Financial Officer and Treasurer |
Date 12/7/11
* Print the name and title of each signing officer under his or her signature.