UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Fund Act file number 811-04719
The Gabelli Westwood Funds
------------------------------------------------
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, NY 10580-1422
------------------------------------------------
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, NY 10580-1422
------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-422-3554
------------------
Date of fiscal year end: September 30, 2004
--------------------
Date of reporting period: March 31, 2004
------------------
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 Fund 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, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
THE GABELLI WESTWOOD FUNDS
================================================================================
EQUITY FUND SMALLCAP EQUITY FUND
BALANCED FUND REALTY FUND
INTERMEDIATE BOND FUND MIGHTY MITES SM FUND
CLASS AAA SHARES CLASS A SHARES
--------------------------------------------------- -------------------------------------------------
Average Annual Returns -- March 31, 2004 (a)(e) Average Annual Returns -- March 31, 2004 (a)(b)(e)
Since Since
1 Year 5 Year 10 Year Inception 1 Year 5 Year 10 Year Inception
-------------------------------------- -------------------------------------------------
Equity .............. 30.61% 3.20% 11.95% 11.60% 25.11% 2.09% 11.18% 11.14%
Balanced ............ 19.94 4.62 10.46 10.56 14.80 3.50 9.73 9.89
Intermediate Bond ... 3.14 6.19 6.45 6.57 (1.08) 5.28 6.00 6.20
SmallCap Equity ..... 26.64 (1.49) -- 4.60 21.34 (2.35) -- 3.90
Realty .............. 45.94 17.68 -- 10.22 39.70 16.57 -- 9.41
Mighty Mites SM ..... 34.95 14.93 -- 14.47 29.21 13.85 -- 13.56
CLASS B SHARES CLASS C SHARES
------------------------------------------ ----------------------------------------
Average Annual Returns -- March 31, 2004 (a)(c)(e) Average Annual Returns -- March 31, 2004 (a)(d)(e)
Since Since
1 Year 5 Year 10 Year Inception 1 Year 5 Year 10 Year Inception
-------------------------------------- -------------------------------------------------
Equity .............. 25.26% 2.65% 11.52% 11.34% 28.74% 2.69% 11.51% 11.33%
Balanced ............ 14.68 3.99 10.05 10.15 18.20 4.22 10.11 10.20
Intermediate Bond ... (1.51) 5.47 6.19 6.36 3.10 6.08 6.40 6.53
SmallCap Equity ..... 22.32 (2.20) -- 4.29 25.43 (1.63) -- 4.49
Realty .............. 41.22 17.22 -- 10.03 44.66 17.57 -- 10.14
Mighty Mites SM ..... 29.98 14.24 -- 13.98 33.25 14.48 -- 14.09
(a) Total returns and average annual returns reflect changes in share price and
reinvestment of dividends and are net of expenses. Of course, returns
represent past performance and do not guarantee future results. Investment
returns and the principal value of an investment will fluctuate. When
shares are redeemed they may be worth more or less than their original
cost. Current performance may be lower or higher than the performance data
presented. Visit www.gabelli.com for performance information as of the most
recent month-end. Investors should consider the investment objectives,
risks and charges and expenses of the Fund before investing. The prospectus
contains more complete information about this and other matters and should
be read carefully before investing.
(b) Includes the effect of the maximum 4.0% sales charge at the beginning of
the period.
(c) Includes the effect of the applicable contingent deferred sales charge upon
redemption of Class B Shares within 72 months.
(d) Includes the effect of the applicable contingent deferred sales charge upon
redemption of Class C Shares within 12 months.
(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 and
Class C 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 inception dates for the Class AAA Shares and the
initial issuance dates for the Class A Shares, Class B Shares and Class C
Shares after which shares remained continuously outstanding are listed
below.
Class AAA Shares Class A Shares Class B Shares Class C Shares
---------------- -------------- -------------- --------------
Equity ................ 01/02/87 01/28/94 03/27/01 02/13/01
Balanced .............. 10/01/91 04/06/93 03/27/01 09/25/01
Intermediate Bond ..... 10/01/91 07/26/01 03/27/01 10/22/01
SmallCap Equity ....... 04/15/97 11/26/01 03/27/01 11/26/01
Realty ................ 09/30/97 05/09/01 11/26/01 11/26/01
Mighty Mites SM ....... 05/11/98 11/26/01 06/06/01 08/03/01
THE GABELLI WESTWOOD EQUITY FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES COST VALUE
------ ---- -----
COMMON STOCKS -- 99.5%
AEROSPACE -- 4.8%
124,700 Boeing Co. .............$ 4,949,668 $ 5,121,429
113,800 Lockheed Martin Corp. .. 6,072,744 5,193,832
------------ ------------
11,022,412 10,315,261
------------ ------------
AUTOMOTIVE -- 1.8%
79,900 General Motors Corp. ... 3,605,769 3,763,290
------------ ------------
AVIATION: PARTS AND SERVICES -- 2.6%
63,300 United Technologies
Corp. ................ 3,789,119 5,462,790
------------ ------------
BROADCASTING -- 1.3%
63,100 Clear Channel
Communications Inc. ... 2,438,872 2,672,285
------------ ------------
CABLE -- 1.3%
97,200 Comcast Corp., Cl. A,
Special+ .............. 2,730,175 2,709,936
------------ ------------
COMPUTER HARDWARE -- 6.5%
99,400 Apple Computer Inc.+ ... 2,017,343 2,688,770
251,187 Hewlett-Packard Co. .... 4,559,754 5,737,111
59,400 International Business
Machines Corp. ....... 4,985,531 5,455,296
------------ ------------
11,562,628 13,881,177
------------ ------------
CONSUMER PRODUCTS -- 3.6%
39,200 Altria Group Inc. ...... 1,603,831 2,134,440
53,900 Procter & Gamble Co. ... 4,793,725 5,653,032
------------ ------------
6,397,556 7,787,472
------------ ------------
DIVERSIFIED INDUSTRIAL -- 5.2%
98,000 Eaton Corp. ............ 4,973,274 5,506,620
182,800 General Electric Co. ... 5,202,607 5,579,056
------------ ------------
10,175,881 11,085,676
------------ ------------
ELECTRONICS -- 1.3%
70,600 Hubbell Inc., Cl. B .... 2,863,124 2,833,178
------------ ------------
ENERGY AND UTILITIES: INTEGRATED -- 7.9%
93,700 Burlington Resources
Inc. ................ 4,883,991 5,962,131
80,300 ConocoPhillips ......... 4,740,093 5,605,743
113,260 Progress Energy Inc. ... 4,856,890 5,332,281
------------ ------------
14,480,974 16,900,155
------------ ------------
ENERGY AND UTILITIES: NATURAL GAS -- 3.9%
129,506 Apache Corp. ........... 3,184,564 5,590,774
57,700 Nabors Industries Ltd.+ 2,158,773 2,639,775
------------ ------------
5,343,337 8,230,549
------------ ------------
ENERGY AND UTILITIES: OIL -- 6.6%
62,600 ChevronTexaco Corp. .... 5,594,749 5,495,028
140,900 Exxon Mobil Corp. ...... 5,661,023 5,860,031
43,700 Murphy Oil Corp. ....... 1,921,775 2,751,789
------------ ------------
13,177,547 14,106,848
------------ ------------
ENERGY AND UTILITIES: WATER -- 1.3%
132,975 Aqua America Inc. ...... 2,557,319 2,882,898
------------ ------------
FINANCIAL SERVICES -- 18.1%
103,800 American Express Co. ... 3,831,585 5,382,030
69,200 Bank of America Corp. .. 3,309,294 5,603,816
64,600 Bear Stearns Companies
Inc. ................. 4,053,831 5,664,128
112,933 Citigroup Inc. ......... 4,746,293 5,838,636
75,600 Eaton Vance Corp. ...... 2,627,929 2,881,872
64,900 Lehman Brothers
Holdings Inc. ........ 4,743,184 5,378,263
SHARES COST VALUE
------ ---- -----
119,400 Prudential Financial
Inc. .................$ 3,865,726 $ 5,346,732
65,400 St. Paul Companies Inc. 2,475,501 2,616,654
------------ ------------
29,653,343 38,712,131
------------ ------------
FINANCIAL SERVICES: BANKS -- 5.1%
52,200 Bank One Corp. ......... 2,108,807 2,845,944
86,500 KeyCorp ................ 2,032,099 2,620,085
61,200 M&T Bank Corp. ......... 4,978,809 5,498,820
------------ ------------
9,119,715 10,964,849
------------ ------------
FOOD AND BEVERAGE -- 4.1%
112,900 ConAgra Foods Inc. ..... 2,711,437 3,041,526
84,000 Dean Foods Co.+ ........ 2,636,394 2,805,600
60,700 General Mills Inc. ..... 2,792,125 2,833,476
------------ ------------
8,139,956 8,680,602
------------ ------------
HEALTH CARE -- 4.9%
113,500 Merck & Co. Inc. ....... 4,999,318 5,015,565
152,600 Pfizer Inc. ............ 4,698,234 5,348,630
------------ ------------
9,697,552 10,364,195
------------ ------------
HOTELS AND GAMING -- 1.5%
77,600 Starwood Hotels & Resorts
Worldwide Inc. ........ 1,793,016 3,142,800
------------ ------------
METALS AND MINING -- 2.5%
156,000 Alcoa Inc. ............. 4,881,278 5,411,640
------------ ------------
PAPER AND FOREST PRODUCTS -- 3.9%
66,300 International Paper Co. 2,581,412 2,801,838
65,728 Rayonier Inc. .......... 2,598,993 2,872,971
42,900 Temple-Inland Inc. ..... 2,424,532 2,717,286
------------ ------------
7,604,937 8,392,095
------------ ------------
REAL ESTATE INVESTMENT TRUSTS -- 1.3%
46,600 Simon Property
Group Inc. ........... 1,662,532 2,723,304
------------ ------------
SPECIALTY CHEMICALS -- 2.4%
121,100 E.I. du Pont de
Nemours and Co. ...... 5,471,447 5,112,842
------------ ------------
TELECOMMUNICATIONS -- 5.2%
61,500 Harris Corp. ........... 2,121,480 2,977,215
112,700 SBC Communications
Inc. ................. 2,841,689 2,765,658
81,400 Univision Communications
Inc.+ ................ 2,866,713 2,687,014
72,804 Verizon Communications
Inc. ................. 2,615,633 2,660,258
------------ ------------
10,445,515 11,090,145
------------ ------------
TRANSPORTATION -- 2.4%
84,600 Union Pacific Corp. .... 4,757,271 5,060,772
------------ ------------
TOTAL COMMON STOCKS .... 183,371,275 212,286,890
------------ ------------
TOTAL
INVESTMENTS -- 99.5% .$183,371,275 212,286,890
============
OTHER ASSETS AND
LIABILITIES (NET) -- 0.5% .......... 997,395
------------
NET ASSETS -- 100.0% .................$213,284,285
============
---------------
For Federal tax purposes:
Aggregate Cost .......................$183,371,275
============
Gross unrealized appreciation ........$ 30,558,768
Gross unrealized depreciation ........ (1,643,153)
------------
Net unrealized appreciation ..........$ 28,915,615
============
----------------
+ Non-income producing security.
See accompanying notes to financial statements.
2
THE GABELLI WESTWOOD BALANCED FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES COST VALUE
------ ---- -----
COMMON STOCKS -- 55.9%
AEROSPACE -- 2.8%
48,700 Boeing Co. .............$ 1,714,765 $ 2,000,109
46,000 Lockheed Martin Corp. .. 2,428,248 2,099,440
------------ ------------
4,143,013 4,099,549
------------ ------------
AUTOMOTIVE -- 1.2%
36,600 General Motors Corp. ... 1,475,358 1,723,860
------------ ------------
AVIATION: PARTS AND SERVICES -- 1.4%
23,700 United Technologies
Corp. ................ 1,258,285 2,045,310
------------ ------------
BROADCASTING -- 0.7%
23,401 Clear Channel
Communications Inc. ... 900,831 991,032
------------ ------------
CABLE -- 0.7%
36,100 Comcast Corp., Cl. A+ .. 1,008,278 1,006,468
------------ ------------
COMPUTER HARDWARE -- 3.5%
36,500 Apple Computer Inc.+ ... 654,047 987,325
95,788 Hewlett-Packard Co. .... 1,663,294 2,187,798
21,800 International Business
Machines Corp. ........ 1,614,298 2,002,112
------------ ------------
3,931,639 5,177,235
------------ ------------
CONSUMER PRODUCTS -- 2.0%
14,500 Altria Group Inc. ...... 565,223 789,525
20,400 Procter & Gamble Co. ... 1,810,206 2,139,552
------------ ------------
2,375,429 2,929,077
------------ ------------
DIVERSIFIED INDUSTRIAL -- 2.8%
36,700 Eaton Corp. ............ 2,146,195 2,062,173
68,000 General Electric Co. ... 1,837,036 2,075,360
------------ ------------
3,983,231 4,137,533
------------ ------------
ENERGY AND UTILITIES: INTEGRATED -- 5.5%
34,100 Burlington Resources
Inc. .................. 1,770,477 2,169,783
29,200 ConocoPhillips ......... 1,723,846 2,038,452
43,900 Kinder Morgan Energy
Partners LP ........... 1,750,032 1,979,451
43,649 Progress Energy Inc. ... 1,831,110 2,054,995
------------ ------------
7,075,465 8,242,681
------------ ------------
ENERGY AND UTILITIES: NATURAL GAS -- 2.1%
49,480 Apache Corp. ........... 1,184,954 2,136,052
21,000 Nabors Industries
Ltd.+ ................. 784,514 960,750
------------ ------------
1,969,468 3,096,802
------------ ------------
ENERGY AND UTILITIES: OIL -- 3.7%
22,800 ChevronTexaco Corp. .... 1,846,313 2,001,384
60,800 Exxon Mobil Corp. ...... 2,237,581 2,528,672
16,000 Murphy Oil Corp. ....... 685,871 1,007,520
------------ ------------
4,769,765 5,537,576
------------ ------------
FINANCIAL SERVICES -- 12.9%
39,100 American Express Co. ... 1,426,330 2,027,335
24,800 Bank of America Corp. .. 1,341,710 2,008,304
36,700 Bank One Corp. ......... 1,679,934 2,000,884
23,500 Bear Stearns Companies
Inc. .................. 1,454,004 2,060,480
41,433 Citigroup Inc. ......... 1,473,275 2,142,086
28,800 Eaton Vance Corp. ...... 1,000,915 1,097,856
31,400 KeyCorp ................ 761,456 951,106
23,900 Lehman Brothers
Holdings Inc. ......... 1,742,611 1,980,593
21,200 M&T Bank Corp. ......... 1,704,417 1,904,820
43,800 Prudential Financial
Inc. .................. 1,386,598 1,961,364
23,800 St. Paul Companies Inc. 900,372 952,238
------------ ------------
14,871,622 19,087,066
------------ ------------
SHARES COST VALUE
------ ---- -----
FOOD AND BEVERAGE -- 2.2%
42,200 ConAgra Foods Inc. .....$ 1,009,963 $ 1,136,868
30,800 Dean Foods Co.+ ........ 964,080 1,028,720
22,600 General Mills Inc. ..... 1,039,569 1,054,968
------------ ------------
3,013,612 3,220,556
------------ ------------
HEALTH CARE -- 2.6%
42,700 Merck & Co. Inc. ....... 1,854,502 1,886,913
55,500 Pfizer Inc. ............ 1,628,778 1,945,275
------------ ------------
3,483,280 3,832,188
------------ ------------
HOTELS AND GAMING -- 0.8%
30,200 Starwood Hotels & Resorts
Worldwide Inc. ........ 695,475 1,223,100
------------ ------------
METALS AND MINING -- 1.3%
58,100 Alcoa Inc. ............. 1,546,331 2,015,489
------------ ------------
PAPER AND FOREST PRODUCTS -- 2.8%
47,100 International Paper Co. 1,791,865 1,990,446
24,878 Rayonier Inc. .......... 992,974 1,087,417
18,400 Temple-Inland Inc. ..... 1,039,893 1,165,456
------------ ------------
3,824,732 4,243,319
------------ ------------
REAL ESTATE INVESTMENT TRUSTS -- 1.5%
31,800 ProLogis ............... 779,688 1,140,666
19,700 Simon Property Group Inc. 701,993 1,151,268
------------ ------------
1,481,681 2,291,934
------------ ------------
SPECIALTY CHEMICALS -- 1.3%
47,300 E.I. du Pont de Nemours
and Co. ............... 2,113,002 1,997,006
------------ ------------
TELECOMMUNICATIONS -- 2.8%
22,900 Harris Corp. ........... 801,975 1,108,589
41,400 SBC Communications Inc. 1,055,696 1,015,956
30,200 Univision Communications
Inc.+ ................. 1,059,640 996,902
26,738 Verizon Communications
Inc. .................. 888,867 977,007
------------ ------------
3,806,178 4,098,454
------------ ------------
TRANSPORTATION -- 1.3%
31,900 Union Pacific Corp. .... 1,812,272 1,908,258
------------ ------------
TOTAL COMMON STOCKS .... 69,538,947 82,904,493
------------ ------------
PRINCIPAL
AMOUNT
---------
ASSET BACKED SECURITIES -- 0.6%
$ 825,000 GS Mortgage Securities Corp. II,
97-GL Cl. A2D,
6.940%, 07/13/30 ...... 833,199 921,129
------------ ------------
SHARES
------
PREFERRED STOCKS -- 4.5%
FINANCIAL SERVICES -- 4.5%
43,500 Fannie Mae,
5.375% Pfd., Ser. I ... 2,290,856 2,268,525
91,400 JP Morgan Chase Capital,
5.875% Pfd., Ser. XI .. 2,278,356 2,282,258
77,900 Wells Fargo Capital Trust,
7.000% Pfd., Ser. IV .. 2,107,746 2,101,742
------------ ------------
6,676,958 6,652,525
------------ ------------
TOTAL PREFERRED STOCKS . 6,676,958 6,652,525
------------ ------------
See accompanying notes to financial statements.
3
THE GABELLI WESTWOOD BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COST VALUE
--------- ---- -----
CORPORATE BONDS -- 12.0%
COMPUTER HARDWARE -- 1.4%
$ 750,000 Hewlett-Packard Co.,
3.625%, 03/15/08 ......$ 748,142 $ 767,287
1,250,000 IBM Corp.,
4.875%, 10/01/06 ...... 1,282,331 1,336,326
------------ ------------
2,030,473 2,103,613
------------ ------------
DIVERSIFIED INDUSTRIAL -- 0.9%
1,200,000 General Electric Co.,
5.000%, 02/01/13 ...... 1,215,905 1,258,735
------------ ------------
ENERGY AND UTILITIES: OIL -- 1.1%
920,000 Conoco Inc.,
5.900%, 04/15/04 ...... 919,457 921,204
750,000 Occidental Petroleum,
4.250%, 03/15/10 ...... 758,332 769,762
------------ ------------
1,677,789 1,690,966
------------ ------------
FINANCIAL SERVICES -- 3.6%
1,325,000 Bank of America Corp.,
5.875%, 02/15/09 ...... 1,340,346 1,480,105
1,225,000 Bear Stearns Co. Inc.,
2.875%, 07/02/08 ...... 1,215,373 1,211,472
1,125,000 Citigroup Inc.,
6.500%, 01/18/11 ...... 1,265,495 1,300,059
1,225,000 Goldman Sachs Group Inc.,
6.650%, 05/15/09 ...... 1,216,578 1,407,247
------------ ------------
5,037,792 5,398,883
------------ ------------
FOOD AND BEVERAGE -- 0.7%
950,000 Anheuser-Busch Cos. Inc.,
4.375%, 01/15/13 ...... 933,080 957,530
------------ ------------
REAL ESTATE INVESTMENT TRUSTS -- 1.2%
1,600,000 Archstone-Smith Trust,
7.200%, 03/01/13 ...... 1,549,930 1,833,136
------------ ------------
RETAIL -- 2.0%
1,275,000 Neiman Marcus Group Inc.,
6.650%, 06/01/08 ...... 1,274,280 1,427,426
1,250,000 Wal-Mart Stores,
6.875%, 08/10/09 ...... 1,324,091 1,468,648
------------ ------------
2,598,371 2,896,074
------------ ------------
TELECOMMUNICATIONS -- 1.1%
1,460,000 Verizon Communications,
6.460%, 04/15/08 ...... 1,469,007 1,645,566
------------ ------------
TOTAL CORPORATE BONDS .. 16,512,347 17,784,503
------------ ------------
FOREIGN GOVERNMENT BONDS -- 1.4%
1,000,000 Canadian Global Bond,
6.750%, 08/28/06 ...... 1,026,090 1,115,640
1,000,000 Italy Global Bond,
2.500%, 03/31/06 ...... 999,372 1,016,540
------------ ------------
TOTAL FOREIGN
GOVERNMENT BONDS ...... 2,025,462 2,132,180
------------ ------------
PRINCIPAL
AMOUNT COST VALUE
--------- ---- -----
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 12.2%
FEDERAL HOME LOAN BANK -- 0.9%
$1,250,000 3.250%, 08/15/05 ......$ 1,280,120 $ 1,280,883
------------ ------------
FEDERAL HOME LOAN MORTGAGE CORP.-- 2.3%
1,750,000 3.500%, 09/15/07 ...... 1,782,317 1,810,231
750,000 3.250%, 02/25/08 ...... 747,653 754,897
750,000 6.625%, 09/15/09 ...... 859,841 875,176
------------ ------------
3,389,811 3,440,304
------------ ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 9.0%
1,450,000 3.000%, 06/15/04 ...... 1,452,862 1,455,756
1,625,000 6.500%, 08/15/04 ...... 1,624,299 1,657,939
1,250,000 7.125%, 03/15/07 ...... 1,322,178 1,424,361
750,000 3.250%, 11/15/07 ...... 776,756 767,780
1,000,000 4.000%, 12/15/08 ...... 1,018,905 1,019,047
1,200,000 6.000%, 05/15/11 ...... 1,204,361 1,368,616
900,000 6.000%, 01/18/12 ...... 891,269 930,042
1,500,000 4.375%, 03/15/13 ...... 1,531,290 1,530,923
1,000,000 Zero Coupon, 05/12/04 . 998,861 998,861
1,000,000 Zero Coupon, 07/07/04 . 997,305 997,359
1,250,000 Zero Coupon, 06/01/04 . 1,247,882 1,247,945
------------ ------------
13,065,968 13,398,629
------------ ------------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS .... 17,735,899 18,119,816
------------ ------------
U.S. GOVERNMENT OBLIGATIONS -- 12.6%
U.S. TREASURY BILLS -- 1.7%
2,500,000 U.S. Treasury Bills,
0.929% to 0.949%++,
04/22/04 to 06/03/04 .. 2,497,581 2,497,617
------------ ------------
U.S. TREASURY NOTES -- 10.9%
2,150,000 2.250%, 07/31/04 ...... 2,150,822 2,159,492
2,000,000 5.750%, 11/15/05 ...... 2,046,864 2,139,922
2,725,000 3.500%, 11/15/06 ...... 2,729,228 2,841,134
2,800,000 6.125%, 08/15/07 ...... 2,961,516 3,160,940
2,500,000 5.750%, 08/15/10 ...... 2,838,259 2,871,095
2,750,000 5.000%, 08/15/11 ...... 2,793,128 3,031,124
------------ ------------
15,519,817 16,203,707
------------ ------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS ........... 18,017,398 18,701,324
------------ ------------
TOTAL
INVESTMENTS -- 99.2% $131,340,210 147,215,970
============
OTHER ASSETS AND LIABILITIES
(NET) -- 0.8% ...................... 1,154,395
------------
NET ASSETS -- 100.0% ................ $148,370,365
============
--------------
For Federal tax purposes:
Aggregate Cost ...................... $131,340,210
============
Gross unrealized appreciation ....... $ 16,550,455
Gross unrealized depreciation ....... (674,695)
------------
Net unrealized appreciation ......... $ 15,875,760
============
--------------
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
See accompanying notes to financial statements.
4
THE GABELLI WESTWOOD INTERMEDIATE BOND FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COST VALUE
--------- ---- -----
ASSET BACKED SECURITIES -- 2.3%
$225,000 GS Mortgage Securities Corp. II,
97-GL Cl. A2D,
6.940%, 07/13/30 ......$ 231,523 $ 251,217
------------ ------------
CORPORATE BONDS -- 43.4%
COMPUTER HARDWARE -- 5.5%
325,000 Hewlett-Packard Co.,
3.625%, 03/15/08 ...... 326,102 332,491
250,000 IBM Corp.,
4.875%, 10/01/06 ...... 257,982 267,265
------------ ------------
584,084 599,756
------------ ------------
DIVERSIFIED INDUSTRIAL -- 2.4%
250,000 General Electric Co.,
5.000%, 02/01/13 ...... 253,314 262,236
------------ ------------
ENERGY AND UTILITIES: OIL -- 6.5%
125,000 BP Capital Markets plc,
4.000%, 04/29/05 ...... 126,567 128,406
225,000 ChevronTexaco Corp.,
3.375%, 02/15/08 ...... 226,366 230,667
125,000 Conoco Inc.,
5.900%, 04/15/04 ...... 124,926 125,164
225,000 Occidental Petroleum,
4.250%, 03/15/10 ...... 225,000 230,929
------------ ------------
702,859 715,166
------------ ------------
FINANCIAL SERVICES -- 18.7%
300,000 Bank of America Corp.,
5.875%, 02/15/09 ...... 311,320 335,118
100,000 Bayerische Landesbank,
4.125%, 01/14/05 ...... 100,746 102,076
275,000 Bear Stearns Co. Inc.,
2.875%, 07/02/08 ...... 272,590 271,963
225,000 Citigroup Inc.,
6.500%, 01/18/11 ...... 252,648 260,012
300,000 Goldman Sachs Group Inc.,
6.650%, 05/15/09 ...... 312,434 344,632
200,000 International Bank for
Reconstruction
& Development,
8.625%, 10/15/16 ...... 248,385 278,580
175,000 Merrill Lynch & Co.,
5.000%, 02/03/14 ...... 174,570 179,568
275,000 Toyota Motor Credit Corp.,
2.875%, 08/01/08 ...... 271,976 274,530
------------ ------------
1,944,669 2,046,479
------------ ------------
FOOD AND BEVERAGE -- 2.3%
250,000 Anheuser-Busch Cos. Inc.,
4.375%, 01/15/13 ...... 245,558 251,982
------------ ------------
PRINCIPAL
AMOUNT COST VALUE
--------- ---- -----
REAL ESTATE INVESTMENT TRUSTS -- 1.5%
$150,000 Archstone-Smith Trust,
7.200%, 03/01/13 ......$ 145,680 $ 171,856
------------ ------------
RETAIL -- 5.2%
300,000 Neiman Marcus Group Inc.,
6.650%, 06/01/08 ...... 317,127 335,865
200,000 Wal-Mart Stores,
6.875%, 08/10/09 ...... 211,855 234,984
------------ ------------
528,982 570,849
------------ ------------
TELECOMMUNICATIONS -- 1.3%
125,000 Verizon Communications,
6.460%, 04/15/08 ...... 126,641 140,888
------------ ------------
TOTAL CORPORATE BONDS .. 4,531,787 4,759,212
------------ ------------
FOREIGN GOVERNMENT BONDS -- 4.8%
175,000 Canadian Global Bond,
6.750%, 08/28/06 ...... 176,004 195,237
325,000 Italy Global Bond,
2.500%, 03/31/06 ...... 325,510 330,376
------------ ------------
TOTAL FOREIGN
GOVERNMENT BONDS ...... 501,514 525,613
------------ ------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 30.4%
FEDERAL HOME LOAN MORTGAGE CORP. -- 6.1%
250,000 5.500%, 07/15/06 ...... 259,975 270,036
250,000 3.250%, 02/25/08 ...... 249,218 251,632
150,000 5.125%, 08/20/12 ...... 149,072 151,944
------------ ------------
658,265 673,612
------------ ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 23.9%
325,000 3.000%, 06/15/04 ...... 325,509 326,290
400,000 6.500%, 08/15/04 ...... 404,409 408,108
200,000 3.250%, 11/15/07 ...... 202,186 204,741
175,000 3.250%, 08/15/08 ...... 176,091 177,827
150,000 4.000%, 12/15/08 ...... 153,026 152,857
350,000 6.000%, 05/15/11 ...... 374,768 399,180
150,000 6.000%, 01/18/12 ...... 148,545 155,007
250,000 4.375%, 03/15/13 ...... 247,996 255,154
210,000 Zero Coupon, 04/07/04 . 209,966 209,966
125,000 Zero Coupon, 05/12/04 . 124,858 124,858
200,000 Zero Coupon, 06/25/04 . 199,532 199,542
------------ ------------
2,566,886 2,613,530
------------ ------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 0.4%
37,023 GNMA, Pool #580871,
6.500%, 12/15/31 ...... 37,168 39,105
------------ ------------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS .... 3,262,319 3,326,247
------------ ------------
See accompanying notes to financial statements.
5
THE GABELLI WESTWOOD INTERMEDIATE BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COST VALUE
--------- ---- -----
U.S. GOVERNMENT OBLIGATIONS -- 17.0%
U.S. TREASURY BILLS -- 1.4%
$150,000 U.S. Treasury Bill,
0.949%++, 04/22/04 ....$ 149,918 $ 149,918
------------ ------------
U.S. TREASURY BONDS -- 9.2%
250,000 7.250%, 05/15/16 ...... 298,949 322,852
250,000 7.125%, 02/15/23 ...... 313,761 325,088
300,000 6.125%, 11/15/27 ...... 309,266 354,023
------------ ------------
921,976 1,001,963
------------ ------------
U.S. TREASURY NOTES -- 6.4%
300,000 2.250%, 07/31/04 ...... 300,748 301,324
250,000 3.500%, 11/15/06 ...... 258,509 260,655
125,000 5.750%, 08/15/10 ...... 138,610 143,555
------------ ------------
697,867 705,534
------------ ------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS ........... 1,769,761 1,857,415
------------ ------------
SHARES COST VALUE
------ ---- -----
WARRANTS -- 0.0%
ENERGY AND UTILITIES -- 0.0%
8 Forman Petroleum Corp.,
Series A,
expire 01/14/07+ (a) ..$ 0 $ 0
25 Forman Petroleum Corp.,
Series B,
expire 01/14/07+ (a) .. 0 1
25 Forman Petroleum Corp.,
Series C,
expire 01/14/07+ (a) .. 0 0
25 Forman Petroleum Corp.,
Series D,
expire 01/14/07+ (a) .. 0 0
------------ ------------
0 1
------------ ------------
TOTAL WARRANTS ......... 0 1
------------ ------------
TOTAL
INVESTMENTS -- 97.9% ..$ 10,296,904 10,719,705
============
OTHER ASSETS AND LIABILITIES
(NET) -- 2.1% ....................... 234,869
------------
NET ASSETS -- 100.0% .................$ 10,954,574
============
--------------
For Federal tax purposes:
Aggregate Cost .......................$ 10,296,904
============
Gross unrealized appreciation ........$ 423,597
Gross unrealized depreciation ........ (796)
------------
Net unrealized appreciation ..........$ 422,801
============
--------------
(a) Securities fair valued under procedures established by the Board of
Trustees. The aggregate value of fair valued securities is $1 or 0.0% of
net assets. See Note 2 to the financial statements.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
See accompanying notes to financial statements.
6
THE GABELLI WESTWOOD SMALLCAP EQUITY FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES COST VALUE
------ ---- -----
COMMON STOCKS -- 92.1%
AUTOMOTIVE -- 0.9%
6,500 China Yuchai
International Ltd. ....$ 196,580 $ 130,065
------------ ------------
BROADCASTING -- 1.1%
8,100 Radio One Inc., Cl. D+ . 129,588 149,850
------------ ------------
BUSINESS SERVICES -- 3.8%
10,100 Digital Insight Corp.+ . 210,683 209,272
17,400 Euronet Worldwide Inc.+ 323,583 330,774
------------ ------------
534,266 540,046
------------ ------------
COMPUTER SOFTWARE AND SERVICES -- 15.6%
8,100 Altiris Inc.+ .......... 256,967 226,314
4,200 Anteon International
Corp.+ ................ 103,688 121,338
5,400 Avocent Corp.+ ......... 201,035 198,666
7,300 Digitalnet Holding Inc.+ 155,912 148,920
17,500 Epicor Software Corp.+ . 278,587 232,225
9,100 eResearch Technology
Inc.+ ................. 280,818 255,255
11,600 Magma Design Automation
Inc.+ ................. 288,421 242,556
7,900 Micros Systems Inc.+ ... 339,230 356,685
14,300 Omnicell Inc.+ ......... 285,770 283,283
7,400 Sonic Solutions+ ....... 156,799 140,304
------------ ------------
2,347,227 2,205,546
------------ ------------
CONSUMER PRODUCTS -- 4.1%
10,700 Deckers Outdoor Corp.+ . 237,399 277,665
12,200 K-Swiss Inc. ........... 244,029 298,534
------------ ------------
481,428 576,199
------------ ------------
DIVERSIFIED INDUSTRIAL -- 6.5%
11,800 Amcol International Corp. 228,808 205,910
3,600 Briggs & Stratton Corp. 221,989 242,892
7,300 Ceradyne Inc.+ ......... 213,339 263,895
14,300 JLG Industries Inc. .... 226,059 204,490
------------ ------------
890,195 917,187
------------ ------------
ELECTRONICS -- 14.1%
21,800 Aeroflex Inc.+ ......... 334,356 293,428
14,600 August Technology Corp.+ 295,130 219,000
7,300 Engineered Support
Systems Inc. .......... 343,397 356,167
9,800 FARO Technologies
Inc.+ ................. 276,097 225,106
5,800 International Rectifier
Corp.+ ................ 125,682 266,742
11,800 OmniVision Technologies
Inc.+ ................. 312,496 322,258
14,800 Ultralife Batteries
Inc.+ ................. 273,103 315,684
------------ ------------
1,960,261 1,998,385
------------ ------------
ENERGY AND UTILITIES -- 5.5%
6,300 Evergreen Resources
Inc.+ ................. 167,245 216,405
6,100 Houston Exploration
Co.+ .................. 190,451 272,853
3,000 Quicksilver Resources
Inc.+ ................. 73,156 116,280
8,930 Southern Union Co.+ .... 141,630 169,223
------------ ------------
572,482 774,761
------------ ------------
EQUIPMENT AND SUPPLIES -- 2.9%
9,000 Middleby Corp. ......... 304,336 411,120
------------ ------------
FOOD AND BEVERAGE -- 3.7%
6,200 CBRL Group Inc. ........ 231,437 245,768
8,700 Central European
Distribution Corp.+ ... 290,261 281,358
------------ ------------
521,698 527,126
------------ ------------
SHARES COST VALUE
------ ---- -----
HEALTH CARE -- 8.0%
14,600 Abaxis Inc.+ ...........$ 292,955 $ 295,650
10,600 American Healthways
Inc.+ ................. 295,457 258,852
8,900 Merit Medical Systems
Inc.+ ................. 214,548 192,596
3,200 Quality Systems Inc.+ .. 139,811 145,376
9,900 USANA Health Sciences
Inc.+ ................. 310,129 230,967
------------ ------------
1,252,900 1,123,441
------------ ------------
HEALTH CARE: PHARMACEUTICALS -- 5.2%
9,500 Bradley Pharmaceuticals
Inc.+ ................. 198,201 239,210
11,900 K-V Pharmaceutical Co.,
Cl. A+ ................ 296,229 292,264
4,900 Kos Pharmaceuticals
Inc.+ ................. 150,929 199,626
------------ ------------
645,359 731,100
------------ ------------
HOTELS AND GAMING -- 3.6%
10,800 Shuffle Master Inc.+ ... 383,437 502,092
------------ ------------
RETAIL -- 10.4%
8,500 Aeropostale Inc.+ ...... 255,952 308,210
9,900 First Cash Financial
Services Inc.+ ........ 220,863 332,937
9,550 Hot Topic Inc.+ ........ 164,059 252,598
6,600 The Sports Authority
Inc.+ ................. 193,313 264,528
6,600 Urban Outfitters Inc.+ . 251,006 317,196
------------ ------------
1,085,193 1,475,469
------------ ------------
TELECOMMUNICATIONS -- 3.1%
8,700 Comtech Telecommunications
Corp.+ ................ 276,926 201,840
8,400 UTStarcom Inc.+ ........ 305,634 241,584
------------ ------------
582,560 443,424
------------ ------------
TRANSPORTATION -- 2.1%
13,500 SCS Transportation Inc.+ 203,315 294,300
------------ ------------
WIRELESS COMMUNICATIONS -- 1.5%
15,700 California Amplifier
Inc.+ ................. 235,499 210,066
------------ ------------
TOTAL COMMON STOCKS .... 12,326,324 13,010,177
------------ ------------
FOREIGN COMMON STOCKS -- 3.8%
ELECTRONICS -- 1.7%
9,700 Nam Tai Electronics Inc. 295,938 246,477
------------ ------------
HEALTH CARE -- 2.1%
11,400 QLT Inc.+ .............. 270,144 291,156
------------ ------------
TOTAL FOREIGN
COMMON STOCKS ......... 566,082 537,633
------------ ------------
TOTAL
INVESTMENTS -- 95.9 ...$ 2,892,406 13,547,810
============
OTHER ASSETS AND LIABILITIES
(NET) -- 4.1% ....................... 580,406
------------
NET ASSETS -- 100.0% .................$ 14,128,216
============
---------------
For Federal tax purposes:
Aggregate Cost .......................$ 12,892,406
============
Gross unrealized appreciation ........$ 1,477,249
Gross unrealized depreciation ........ (821,845)
------------
Net unrealized appreciation ..........$ 655,404
============
---------------
+ Non-income producing security.
See accompanying notes to financial statements.
7
THE GABELLI WESTWOOD REALTY FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES COST VALUE
------ ---- -----
COMMON STOCKS -- 93.2%
APARTMENTS -- 11.5%
5,200 Apartment Investment &
Management Co., Cl. A .$ 189,204 $ 161,668
12,082 Archstone-Smith Trust .. 297,315 356,540
3,000 Avalonbay Communities
Inc. .................. 137,908 160,740
5,400 Camden Property Trust .. 190,114 242,730
8,600 Equity Residential ..... 222,796 256,710
3,500 Home Properties of New
York Inc. ............. 114,790 142,625
4,700 Mid-America Apartment
Communities Inc. ...... 117,996 174,511
8,700 Post Properties Inc. ... 226,434 250,560
17,600 United Dominion Realty
Trust Inc. ............ 276,957 345,312
------------ ------------
1,773,514 2,091,396
------------ ------------
COMMERCIAL OFFICE -- 1.3%
6,300 Prentiss Properties
Trust ................. 180,715 232,470
------------ ------------
DIVERSIFIED PROPERTY -- 13.4%
16,268 Catellus Development
Corp. ................. 363,098 423,131
3,600 Colonial Properties Trust 113,522 146,880
12,366 Duke Realty Corp. ...... 321,605 429,347
8,300 First Potomac Realty
Trust ................. 167,458 173,470
6,400 Getty Realty Corp. ..... 125,441 170,048
7,700 Lexington Corporate
Properties Trust ...... 128,745 167,783
7,800 Liberty Property Trust . 237,814 351,000
4,100 Tejon Ranch Co.+ ....... 124,544 151,536
7,100 Vornado Realty Trust ... 290,434 429,408
------------ ------------
1,872,661 2,442,603
------------ ------------
FINANCIAL SERVICES -- 1.8%
8,600 American Financial
Realty Trust .......... 107,500 145,770
6,700 Friedman, Billings, Ramsey
Group Inc. ............ 168,651 180,833
------------ ------------
276,151 326,603
------------ ------------
HEALTH CARE -- 3.0%
12,700 Health Care Property
Investors Inc. ........ 238,926 359,410
5,500 Universal Health Realty
Income Trust .......... 146,018 185,350
------------ ------------
384,944 544,760
------------ ------------
HOTELS -- 3.7%
3,800 Hospitality Properties
Trust ................. 117,368 176,320
8,300 Lasalle Hotel Properties 162,774 195,880
7,400 Starwood Hotels & Resorts
Worldwide Inc. ........ 181,779 299,700
------------ ------------
461,921 671,900
------------ ------------
INDUSTRIAL PROPERTY -- 8.1%
6,600 AMB Property Corp. ..... 182,938 245,322
4,200 CenterPoint Properties
Trust ................. 239,780 346,500
4,800 Eastgroup Properties,
Inc. .................. 166,002 170,400
20,100 ProLogis ............... 497,650 720,987
------------ ------------
1,086,370 1,483,209
------------ ------------
MANUFACTURED HOMES -- 1.4%
7,100 Manufactured Home
Communities Inc. 219,266 250,630
------------ ------------
SHARES COST VALUE
------ ---- -----
OFFICE PROPERTY -- 16.1%
2,700 Alexandria Real Estate
Equities Inc. .........$ 114,705 $ 170,100
4,700 Arden Realty Inc. ...... 115,048 151,951
8,200 Boston Properties Inc. . 332,355 445,342
5,300 Brandywine Realty Trust 115,781 161,915
5,400 CarrAmerica Realty Corp. 155,321 183,060
7,300 Corporate Office
Properties Trust ...... 102,798 182,500
7,900 Cousins Properties Inc. 203,879 259,041
9,100 Crescent Real Estate
Equities Co. .......... 150,620 163,527
16,884 Equity Office
Properties Trust ...... 464,043 487,779
5,500 Highwoods Properties
Inc. .................. 125,974 144,155
7,300 Koger Equity Inc. ...... 167,316 171,331
5,200 Mack-Cali Realty Corp. . 161,467 233,532
7,100 Maguire Properties Inc. 178,914 181,760
------------ ------------
2,388,221 2,935,993
------------ ------------
PAPER AND FOREST PRODUCTS -- 3.4%
11,200 Plum Creek Timber Co.
Inc. .................. 255,084 363,776
6,088 Rayonier Inc. .......... 234,279 266,107
------------ ------------
489,363 629,883
------------ ------------
PUBLIC STORAGE -- 2.3%
5,200 Public Storage Inc. .... 181,823 253,032
4,100 Sovran Self Storage Inc. 115,724 171,257
------------ ------------
297,547 424,289
------------ ------------
SHOPPING CENTERS -- 27.2%
2,900 CBL & Associates
Properties Inc. ....... 105,112 177,886
4,500 Chelsea Property
Group Inc. ............ 154,856 283,230
9,381 Developers Diversified
Realty Corp. .......... 222,792 378,992
15,700 General Growth
Properties Inc. ....... 279,814 551,855
5,800 Heritage Property
Investment Trust ...... 165,587 180,380
8,750 Kimco Realty Corp. ..... 292,098 446,075
3,700 Macerich Co. ........... 109,638 199,430
5,200 Mills Corp. ............ 181,738 277,108
4,900 Pan Pacific Retail
Properties Inc. ....... 142,052 255,290
8,800 Ramco-Gershenson
Properties Trust ...... 173,488 248,160
4,900 Realty Income
Corporation ........... 203,528 218,785
8,000 Regency Centers Corp. 247,376 373,840
12,700 Simon Property
Group Inc. ............ 414,891 742,188
7,000 Taubman Centers Inc. ... 132,062 176,190
12,975 Weingarten Realty
Investors ............. 308,756 448,935
------------ ------------
3,133,788 4,958,344
------------ ------------
TOTAL COMMON STOCKS .... 12,564,461 16,992,080
------------ ------------
TOTAL
INVESTMENTS -- 93.2% ..$ 12,564,461 16,992,080
============
OTHER ASSETS AND LIABILITIES
(NET) -- 6.8% ...................... 1,234,144
------------
NET ASSETS -- 100.0% ................ $ 18,226,224
============
---------------
For Federal tax purposes:
Aggregate Cost ...................... $ 12,564,461
============
Gross unrealized appreciation ....... $ 4,455,156
Gross unrealized depreciation ....... (27,537)
------------
Net unrealized appreciation ......... $ 4,427,619
============
---------------
+ Non-income producing security.
See accompanying notes to financial statements.
8
THE GABELLI WESTWOOD MIGHTY MITES SM FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES COST VALUE
------ ---- -----
COMMON STOCKS -- 88.5%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 5.7%
100,000 Midas Inc.+ ............$ 1,289,410 $ 1,945,000
500 Puradyn Filter
Technologies Inc.+ .... 1,250 1,070
51,000 Scheib (Earl) Inc.+ .... 250,790 146,625
48,100 Standard Motor
Products Inc. ......... 551,669 754,208
159,000 TransPro Inc.+ ......... 730,359 795,000
------------ ------------
2,823,478 3,641,903
------------ ------------
AVIATION: PARTS AND SERVICES -- 1.7%
5,000 Aviall Inc.+ ........... 50,845 76,000
5,000 CPI Aerostructures Inc.+ 49,118 49,400
2,000 Curtiss-Wright Corp.,
Cl. B ................. 43,050 91,340
145,000 Fairchild Corp., Cl. A+ 739,108 722,100
12,000 Kaman Corp., Cl. A ..... 155,265 179,160
------------ ------------
1,037,386 1,118,000
------------ ------------
BROADCASTING -- 4.8%
60,000 Acme Communications
Inc.+ ................. 364,898 470,700
32,500 Beasley Broadcast
Group Inc.,
Cl. A+ ................ 339,866 572,000
36,000 Crown Media Holdings
Inc., Cl. A+ .......... 201,517 291,240
20,000 Granite Broadcasting
Corp.+ ................ 76,113 33,400
34,500 Gray Television Inc. ... 368,821 504,390
90,000 Paxson Communications
Corp.+ ................ 352,036 351,000
12,000 Salem Communications Corp.,
Cl. A+ ................ 239,404 328,560
30,000 Young Broadcasting Inc.,
Cl. A+ ................ 288,879 543,000
------------ ------------
2,231,534 3,094,290
------------ ------------
BUILDING AND CONSTRUCTION -- 8.9%
65,100 Cavalier Homes Inc.+ ... 336,339 341,775
47,000 Cavco Industries Inc.+ . 1,754,534 1,731,950
40,000 Eagle Supply Group Inc.+ 53,438 78,000
10,907 Homasote Co.+ .......... 85,994 82,075
5,000 Huttig Building
Products Inc.+ ........ 17,126 25,000
5,000 Modtech Holdings Inc.+ . 36,150 37,050
2,400 Monarch Cement Co. ..... 43,256 50,220
8,600 Nobility Homes Inc. .... 129,751 136,826
5,000 Palm Harbor Homes Inc.+ 104,950 104,800
66,800 Skyline Corp. .......... 2,222,659 2,576,476
143,000 Southern Energy
Homes Inc.+ ........... 512,317 536,250
------------ ------------
5,296,514 5,700,422
------------ ------------
BUSINESS SERVICES -- 2.5%
28,000 ANC Rental Corp.+ ...... 840 3
80,100 Edgewater Technology
Inc.+ ................. 308,396 580,725
2,000 GP Strategies Corp.+ ... 7,650 13,780
20,000 Information Resources
Inc.+ ................. 32,400 66,400
85,000 Interep National Radio
Sales Inc.,
Cl. A+ ................ 330,110 161,500
47,000 Nashua Corp.+ .......... 326,960 403,260
804 National Stock
Yards Co.+ ............ 80,700 129,042
1,000 Paxar Corp.+ ........... 14,450 14,750
10,000 PubliCard Inc.+ 14,435 450
SHARES COST VALUE
------ ---- -----
4,000 Roto-Rooter Inc. .......$ 144,027 $ 202,200
1,000 StarTek Inc. ........... 17,895 36,340
------------ ------------
1,277,863 1,608,450
------------ ------------
CABLE -- 0.2%
90,000 Adelphia Communications Corp.,
Cl. A+ ................ 15,750 74,700
1,000 Outdoor Channel
Holdings Inc.+ ........ 24,825 39,375
------------ ------------
40,575 114,075
------------ ------------
CLOSED END FUNDS -- 0.0%
500 MVC CAPITAL+ ........... 4,255 4,250
------------ ------------
COMMUNICATIONS EQUIPMENT -- 0.2%
3,000 Andrew Corp.+ .......... 10,240 52,500
8,000 Communications
Systems Inc. .......... 69,033 69,840
------------ ------------
79,273 122,340
------------ ------------
COMPUTER SOFTWARE AND SERVICES -- 2.0%
23,881 Gemplus International
SA+ ................... 10,945 53,412
3,000 iVillage Inc.+ ......... 2,520 20,640
20,000 Mobius Management
Systems Inc.+ ......... 192,402 182,600
500,000 Net Perceptions Inc.+ .. 204,900 200,000
850,000 StorageNetworks Inc.
Escrow+ ............... 0 25,500
60,000 Tyler Technologies Inc.+ 235,322 582,600
40,000 Vitria Technology Inc.+ 244,692 235,240
------------ ------------
890,781 1,299,992
------------ ------------
CONSUMER PRODUCTS -- 5.5%
6,000 American Locker
Group Inc.+ ........... 75,694 66,240
30,000 CNS Inc. ............... 370,153 322,200
15,000 Del Laboratories Inc.+ . 298,062 498,000
17,000 Ducati Motor Holding SpA+ 258,245 275,825
6,910 Levcor International
Inc.+ ................. 25,443 19,348
4,500 Marine Products Corp. .. 6,913 62,955
35,000 Marzotto SpA ........... 275,627 402,586
7,500 National Presto
Industries Inc. ....... 223,938 290,700
41,530 Syratech Corp.+ (a) .... 10,383 14,535
23,100 Water Pik Technologies
Inc.+ ................. 196,444 325,479
268,000 Weider Nutrition
International Inc.+ ... 498,691 1,270,320
------------ ------------
2,239,593 3,548,188
------------ ------------
CONSUMER SERVICES -- 0.1%
6,000 Collectors Universe Inc.+ 21,104 74,634
------------ ------------
DIVERSIFIED INDUSTRIAL -- 3.6%
10,200 Ampco-Pittsburgh Corp. . 118,479 131,682
101,500 Harbor Global Co. Ltd.+ 504,865 1,040,375
64,000 Katy Industries Inc.+ .. 306,659 383,360
35,000 Lamson & Sessions Co.+ . 154,961 197,750
2,000 Lindsay Manufacturing Co. 39,765 48,160
35,000 Pinguely-Haulotte ...... 187,156 229,680
9,250 RWC Inc.+ .............. 251,315 92,500
22,000 Tech/Ops Sevcon Inc. ... 122,265 144,100
7,666 WHX Corp.+ ............. 34,374 22,692
------------ ------------
1,719,839 2,290,299
------------ ------------
See accompanying notes to financial statements.
9
THE GABELLI WESTWOOD MIGHTY MITES SM FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES COST VALUE
------ ---- -----
COMMON STOCKS (CONTINUED)
EDUCATIONAL SERVICES -- 0.6%
15,000 Concorde Career
Colleges Inc.+ ........$ 338,205 $ 360,000
10,000 ProsoftTraining.com+ ... 22,440 4,800
------------ ------------
360,645 364,800
------------ ------------
ELECTRONICS -- 1.2%
25,000 CTS Corp. .............. 201,432 326,000
2,000 Fargo Electronics+ ..... 11,283 22,600
6,500 George Risk Industries
Inc.+ ................. 22,460 35,750
5,600 Lab-Volt Systems Inc.+ . 31,800 33,600
5,300 Lowrance Electronics
Inc.+ ................. 18,582 115,699
15,000 Zoran Corp.+ ........... 126,729 260,400
------------ ------------
412,286 794,049
------------ ------------
ENERGY AND UTILITIES: ELECTRIC -- 2.3%
40,000 British Energy PLC+ .... 3,200 5,072
10,000 El Paso Electric Co.+ .. 83,914 138,400
24,600 Green Mountain
Power Corp. ........... 517,311 636,402
10,000 Maine & Maritimes Corp. 221,400 341,500
13,700 Unitil Corp. ........... 353,045 379,764
------------ ------------
1,178,870 1,501,138
------------ ------------
ENERGY AND UTILITIES: INTEGRATED -- 2.0%
36,776 Aquila Inc.+ ........... 176,851 173,215
21,300 Florida Public
Utilities Co. ......... 276,065 436,650
20,000 MGE Energy Inc. ........ 605,472 617,000
95,200 Progress Energy
Inc., CVO+ ............ 10,472 29,512
------------ ------------
1,068,860 1,256,377
------------ ------------
ENERGY AND UTILITIES: NATURAL GAS -- 4.5%
3,000 Cascade Natural
Gas Corp. ............. 60,916 65,370
19,700 Chesapeake Utilities
Corp. ................. 401,845 504,714
16,014 Corning Natural
Gas Corp. ............. 266,784 216,189
18,200 Delta Natural Gas
Co. Inc. .............. 374,607 460,278
26,000 NUI Corp. .............. 483,793 439,660
31,200 Petrocorp Escrow
Shares+ ............... 0 1,872
10,000 Petroleum Development
Corp.+ ................ 150,100 286,500
19,500 RGC Resources Inc. ..... 418,026 457,860
10,500 South Jersey
Industries Inc. ....... 327,733 429,555
------------ ------------
2,483,804 2,861,998
------------ ------------
ENERGY AND UTILITIES: SERVICES -- 0.1%
19 Petroleum Geo-Services
ASA, ADR+ ............. 14,592 887
6,000 RPC Inc. ............... 35,742 66,840
------------ ------------
50,334 67,727
------------ ------------
ENERGY AND UTILITIES: WATER -- 1.5%
10,950 Artesian Resources
Corp., Cl. A .......... 176,619 309,119
1,500 BIW Ltd. ............... 27,265 29,400
2,760 California Water
Service Group ......... 61,330 78,080
1,000 Consolidated Water
Co. Ltd. .............. 7,500 18,740
14,666 Middlesex Water Co. .... 251,385 303,586
7,200 SJW Corp. .............. 164,227 249,552
------------ ------------
688,326 988,477
------------ ------------
SHARES COST VALUE
------ ---- -----
ENTERTAINMENT -- 2.5%
10,500 Canterbury Park
Holding Corp. .........$ 95,240 $ 200,550
15,000 Dover Motorsports Inc. . 63,411 57,750
12,500 Fisher Communications
Inc.+ ................. 568,502 609,375
41,000 Fox Kids Europe NV+ .... 327,667 447,416
45,000 GC Companies Inc.+ ..... 67,956 20,925
30,500 Integrity Media Inc.+ .. 190,557 193,370
4,000 LodgeNet Entertainment
Corp.+ ................ 44,021 76,000
------------ ------------
1,357,354 1,605,386
------------ ------------
ENVIRONMENTAL SERVICES -- 0.3%
25,000 Trojan Technologies
Inc.+ ................. 144,102 160,738
------------ ------------
EQUIPMENT AND SUPPLIES -- 7.1%
188,000 Baldwin Technology Co.
Inc., Cl. A+ .......... 352,039 545,200
15,000 Capstone Turbine Corp.+ 27,450 37,050
101,500 Core Molding Technologies
Inc.+ ................. 235,385 411,075
6,500 Eastern Co. ............ 107,809 104,000
190,000 Fedders Corp. .......... 1,370,260 1,084,900
10,000 Gerber Scientific Inc.+ 33,933 68,000
8,500 Gildemeister AG ........ 80,468 80,744
72,400 Maezawa Kyuso Industries
Co. Ltd. .............. 388,915 822,577
19,100 Mine Safety
Appliances Co. ........ 279,303 541,676
45,000 Raytech Corp.+ ......... 159,123 129,600
170,000 Selas Corp. of America . 531,751 479,400
24,600 SL Industries Inc.+ .... 216,452 239,850
1,000 SRS Labs Inc.+ ......... 5,500 6,080
1,100 Watts Water Technologies Inc.,
Cl. A ................. 16,825 25,729
------------ ------------
3,805,213 4,575,881
------------ ------------
FINANCIAL SERVICES -- 8.2%
9,700 Berkshire Bancorp Inc. . 334,307 565,801
15,900 BKF Capital Group Inc. . 375,063 410,220
11,000 Crazy Woman Creek
Bancorp Inc. .......... 143,391 192,500
1,400 Danielson Holding Corp.+ 7,050 13,034
5,500 Fidelity Southern Corp. 44,340 81,180
37,500 Flushing Financial Corp. 558,094 678,750
10 Guaranty Corp., Cl. A+ . 137,500 130,300
5,933 Hanmi Financial
Corporation ........... 87,821 157,759
420,000 J Net Enterprises Inc.+ 462,378 592,200
7,500 Northrim Bancorp Inc. .. 165,425 192,000
6,390 Parish National Bank
of Bogalusa+ .......... 234,128 337,775
3,500 Patriot National Bancorp 53,665 52,990
2,000 PennFed Financial
Services Inc. ......... 69,987 70,720
22,200 Resource Bankshares
Corp. ................. 269,039 723,720
13,000 Seacoast Banking Corp.
of Florida ............ 228,086 269,100
1,200 Sunwest Bank+ .......... 87,220 117,600
20,000 SWS Group Inc. ......... 356,945 358,200
4,000 Synergy Financial .
Group Inc.+ ........... 41,720 41,160
500 TIB Financial Corp. .... 7,780 10,665
10,000 Wilshire State Bank+ ... 166,465 239,598
------------ ------------
3,830,404 5,235,272
------------ ------------
See accompanying notes to financial statements.
10
THE GABELLI WESTWOOD MIGHTY MITES SM FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES COST VALUE
------ ---- -----
COMMON STOCKS (CONTINUED)
FOOD AND BEVERAGE -- 2.2%
15,000 Boston Beer Co. Inc.,
Cl. A+ ................$ 174,012 $ 276,300
4,000 Genesee Corp., Cl. A+ .. 19,980 14,400
30,100 Genesee Corp., Cl. B+ .. 81,364 108,360
4,000 J & J Snack Foods Corp.+ 111,849 180,720
11,000 Lifeway Foods Inc.+ .... 78,614 234,300
20,000 MGP Ingredients Inc. ... 192,573 508,800
20,000 Northland Cranberries
Inc., Cl. A+ .......... 15,400 17,400
1,000 Poore Brothers Inc.+ ... 2,660 3,190
5,000 Todhunter International
Inc.+ ................. 53,388 60,000
------------ ------------
729,840 1,403,470
------------ ------------
HEALTH CARE -- 13.2%
6,200 Arkopharma ............. 267,040 363,052
12,000 Biosite Inc.+ .......... 369,240 383,640
16,000 Boiron SA .............. 257,514 374,567
7,000 Bruker BioSciences
Corp.+ ................ 27,970 35,070
89,700 Cholestech Corp.+ ...... 690,520 789,360
100,000 Del Global Technologies
Corp.+ ................ 215,065 202,000
15,100 Exactech Inc.+ ......... 233,128 277,840
11,000 ICU Medical Inc.+ ...... 378,710 334,070
65,000 Interpore International
Inc.+ ................. 773,390 934,700
24,000 Kensey Nash Corp.+ ..... 511,939 591,600
139,800 Lifecore Biomedical
Inc.+ ................. 1,011,260 1,048,500
22,125 Neogen Corp.+ .......... 243,486 408,427
2,500 NMT Medical Inc.+ ...... 7,858 12,150
10,000 NWH Inc. ............... 192,040 201,000
4,000 Orthofix International .
NV+ ................... 108,404 197,760
41,000 Regeneration Technologies
Inc.+ ................. 370,154 465,350
36,000 Schick Technologies Inc.+ 286,001 361,800
30,000 Thoratec Corp.+ ........ 403,020 374,700
2,000 Tutogen Medical Inc.+ .. 10,180 8,400
210,000 VitalWorks Inc.+ ....... 1,089,645 787,500
6,000 Women First HealthCare
Inc.+ ................. 4,875 1,080
8,100 Young Innovations Inc. . 218,297 284,229
------------ ------------
7,669,736 8,436,795
------------ ------------
HOTELS AND GAMING -- 0.6%
9,000 Boca Resorts Inc.,
Cl. A+ ................ 120,840 157,050
12,000 Dover Downs Gaming &
Entertainment Inc. .... 113,503 128,520
29 Fair Grounds Corp.+ .... 177,460 92,872
2,000 Florida Gaming Corp.+ .. 6,950 6,750
------------ ------------
418,753 385,192
------------ ------------
METALS AND MINING -- 0.0%
615,000 Royal Oak Mines Inc.+ .. 2,314 3,075
------------ ------------
PAPER AND FOREST PRODUCTS -- 0.3%
16,300 Packaging Dynamics Corp. 120,625 216,138
------------ ------------
PUBLISHING -- 1.3%
85,000 PRIMEDIA Inc.+ ......... 145,515 229,500
18,400 Thomas Nelson Inc. ..... 187,804 500,848
4,000 William H. Sadlier Inc. 112,000 115,000
------------ ------------
445,319 845,348
------------ ------------
SHARES COST VALUE
------ ---- -----
REAL ESTATE -- 1.5%
2,508 Biloxi Marsh Lands
Corp. .................$ 20,624 $ 126,654
28,617 Calcasieu Real Estate &
Oil Co. Inc.+ ......... 181,018 250,399
2,500 Capital Properties Inc.,
Cl. A ................. 32,625 32,075
50 Case Pomeroy & Co. Inc.,
Cl. A ................. 58,825 70,000
50 Case Pomeroy & Co. Inc.,
Cl. B ................. 58,825 65,000
500 Consolidated-Tomoka
Land Co. .............. 10,520 18,560
7,100 Griffin Land &
Nurseries Inc.+ ....... 94,440 180,340
7,000 Gyrodyne Company of
America Inc.+ ......... 112,667 192,465
2,508 Royalty Ll+ ............ 0 0
------------ ------------
569,544 935,493
------------ ------------
RETAIL -- 0.4%
400 Cole National Corp.+ ... 8,784 8,828
4,000 CoolBrands International
Inc.+ ................. 5,397 69,576
5,000 Movado Group Inc. ...... 141,146 149,700
8,000 Sport Supply Group Inc. 10,250 9,600
------------ ------------
165,577 237,704
------------ ------------
SPECIALTY CHEMICALS -- 1.1%
267,226 General Chemical
Group Inc.+ ........... 59,859 44,092
1,000 KMG Chemicals, Inc. .... 3,270 4,200
30,000 Material Sciences Corp.+ 328,876 330,000
60,000 Omnova Solutions Inc.+ . 333,726 315,000
------------ ------------
725,731 693,292
------------ ------------
TELECOMMUNICATIONS -- 1.7%
32,540 ATX Communications Inc.+ 68,495 6,833
8,260 Community Service
Communications Inc.+ .. 0 16,933
25,896 D&E Communications Inc. 290,401 362,285
80 Horizon Telecom Inc.+ (a) 9,250 8,280
339 Horizon Telecom Inc.,
Cl. B+ (a) ............ 39,073 35,087
2,000 Lexcom Inc., Cl. B+ .... 106,355 107,000
6,876 New Ulm Telecom Inc. ... 70,690 62,400
1,302 NTL Inc.+ .............. 48,622 77,404
10,000 PNV Inc.+ .............. 3 3
6,600 Shenandoah Telecommunications
Co. ................... 101,736 150,810
10,000 Stratos International
Inc.+ ................. 38,124 58,300
1,000 SureWest Communications 26,664 26,790
50,000 Sycamore Networks Inc.+ 164,231 204,000
------------ ------------
963,644 1,116,125
------------ ------------
TRANSPORTATION -- 0.6%
10,800 Old Dominion Freight
Line Inc.+ ............ 230,668 363,960
------------ ------------
WIRELESS COMMUNICATIONS -- 0.1%
20,000 Leap Wireless
International Inc.+ ... 7,200 740
10,000 Rural Cellular Corp.,
Cl. A+ ................ 8,700 95,700
------------ ------------
15,900 96,440
------------ ------------
TOTAL COMMON STOCKS .... 45,100,044 56,761,718
------------ ------------
See accompanying notes to financial statements.
11
THE GABELLI WESTWOOD MIGHTY MITES SM FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES COST VALUE
------ ---- -----
PREFERRED STOCKS -- 1.5%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.8%
22,000 Jungheinerich AG Pfd. ..$ 178,557 $ 492,049
------------ ------------
BROADCASTING -- 0.5%
532 Granite Broadcasting Corp.,
12.750% Pfd.+ ......... 224,996 287,280
------------ ------------
DIVERSIFIED INDUSTRIAL -- 0.2%
22,000 WHX Corp.,
$3.75 Cv. Pfd.,
Ser. B+ ............... 112,890 155,540
------------ ------------
TOTAL PREFERRED STOCKS . 516,443 934,869
------------ ------------
CONVERTIBLE PREFERRED STOCKS -- 1.1%
BUSINESS SERVICES -- 1.0%
6,236 Interep National Radio
Sales Inc.,
4.000% Cv. Pfd.,
Ser. A (a)(b) ......... 624,000 636,072
------------ ------------
DIVERSIFIED INDUSTRIAL -- 0.1%
5,500 WHX Corp.,
6.500% Cv. Pfd.,
Ser. A+ ............... 33,640 41,250
------------ ------------
TOTAL CONVERTIBLE
PREFERRED STOCKS ...... 657,640 677,322
------------ ------------
WARRANTS -- 0.0%
BUILDING AND CONSTRUCTION -- 0.0%
400 Eagle Supply Group Inc.,
expire 03/15/04+ ...... 450 56
------------ ------------
BUSINESS SERVICES -- 0.0%
1,666 Avalon Digital Marketing
Systems Inc.,
Warrants expire
11/11/11+ (a) ......... 0 0
37,500 Interep National Radio
Sales Inc.,+ (a) ...... 0 0
------------ ------------
0 0
------------ ------------
TELECOMMUNICATIONS -- 0.0%
2,000 Microcell Telecommunications
Inc.,
Warrants Expire
05/01/05+ ............. 1,000 9,116
3,333 Microcell Telecommunications
Inc.,
Warrants Expire
05/01/08+ ............. 2,766 17,752
78 Motient Corp.
Warrants Expire
05/01/04+ ............. 24 9
------------ ------------
3,790 26,877
------------ ------------
TOTAL WARRANTS 4,240 26,933
------------ ------------
PRINCIPAL
AMOUNT COST VALUE
------ ---- -----
U.S. GOVERNMENT OBLIGATIONS -- 11.0%
U.S. TREASURY BILLS -- 11.0%
$7,083,000 U.S. Treasury Bills,
0.889% to 0.968%++,
04/08/04 to 08/26/04 ..$ 7,075,642 $ 7,075,700
------------ ------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS ........... 7,075,642 7,075,700
------------ ------------
TOTAL
INVESTMENTS -- 102.1% .$ 53,354,009 65,476,542
============
OTHER ASSETS AND LIABILITIES
(NET) -- (2.1)% ..................... (1,328,974)
------------
NET ASSETS -- 100.0% .................$ 64,147,568
============
---------------
For Federal tax purposes:
Aggregate Cost .......................$ 53,354,009
============
Gross unrealized appreciation ........$ 13,919,342
Gross unrealized depreciation ........ (1,796,809)
------------
Net unrealized appreciation ..........$ 12,122,533
============
---------------
(a) Security fair valued under procedures established by the Board of
Trustees. The aggregate value of fair valued securities is $693,974 or
1.08% of net assets. See Note 2 to the financial statements.
(b) This security is restricted as to resale, but is convertible into
registered common stock, and has been fair valued under procedures
established by the Board of Trustees since its purchase on May 3, 2002. A
dividend was paid in kind on May 1, 2003 of 236 shares.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depository Receipt.
See accompanying notes to financial statements.
12
THE GABELLI WESTWOOD FUNDS
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY BALANCED INTERMEDIATE SMALLCAP REALTY MIGHTY
FUND FUND BOND FUND EQUITY FUND FUND MITES SM FUND
------------ ------------ ------------ ------------ ----------- -------------
ASSETS:
Investments, at value
(Cost $183,371,275, $131,340,210,
$10,296,904, $12,892,406, $12,564,461
and $53,354,009, respectively) ........ $212,286,890 $147,215,970 $10,719,705 $13,547,810 $16,992,080 $65,476,542
Cash ..................................... -- 662,804 171,668 201,782 1,175,716 968
Dividends and interest receivable ........ 251,396 573,265 107,340 2,657 77,068 59,680
Receivable for Fund shares sold .......... 85,020 154,312 821 487,858 26,112 38,441
Receivable for investments sold .......... 2,342,627 -- -- -- -- 13,771
Receivable from adviser .................. -- -- 10,025 -- -- --
Receivable from custodian ................ -- -- 554 -- -- --
------------ ------------ ----------- ----------- ----------- -----------
TOTAL ASSETS ............................. 214,965,933 148,606,351 11,010,113 14,240,107 18,270,976 65,589,402
------------ ------------ ----------- ----------- ----------- -----------
LIABILITIES:
Dividends payable ........................ -- -- 26,084 -- -- --
Payable for Fund shares redeemed ......... -- 700 -- 50,533 2,000 14,985
Payable for investments purchased ........ -- -- -- -- -- 1,303,438
Payable for investment advisory fees ..... 184,384 94,639 -- 5,116 11,661 56,597
Payable for distribution fees ............ 46,913 33,303 2,597 3,036 3,704 14,899
Payable to custodian ..................... 1,264,518 475 -- 22,817 1,596 3,671
Other accrued expenses ................... 185,833 106,869 26,858 30,389 25,791 48,244
------------ ------------ ----------- ----------- ----------- -----------
TOTAL LIABILITIES ........................ 1,681,648 235,986 55,539 111,891 44,752 1,441,834
------------ ------------ ----------- ----------- ----------- -----------
NET ASSETS ............................... $213,284,285 $148,370,365 $10,954,574 $14,128,216 $18,226,224 $64,147,568
============ ============ =========== =========== =========== ===========
NET ASSETS CONSIST OF:
Share of beneficial interest,
at par value $ 6,641 $ 900 $ 361 $ 100 $ 1,029 $ 3,099
Additional paid-in capital ............... 220,333,682 137,817,622 10,464,873 25,656,526 13,693,031 50,837,192
Accumulated (distributions in excess of)
net investment income ................. 439,040 4,841 (581) (108,126) 61,819 (94,431)
Accumulated net realized gain (loss)
on investments ........................ (36,410,693) (5,328,758) 67,120 (12,075,688) 42,726 1,278,449
Net unrealized appreciation on investments 28,915,615 15,875,760 422,801 655,404 4,427,619 12,123,259
------------ ------------ ----------- ----------- ----------- -----------
TOTAL NET ASSETS ......................... $213,284,285 $148,370,365 $10,954,574 $14,128,216 $18,226,224 $64,147,568
============ ============ =========== =========== =========== ===========
SHARES OF BENEFICIAL INTEREST:
CLASS AAA:
Shares of beneficial interest
outstanding ($0.001 par value) ........ 23,371,355 12,591,673 914,573 1,591,658 1,287,321 4,151,145
========== ========== ======= ========= ========= =========
NET ASSET VALUE, offering and redemption
price per share ....................... $8.98 $11.29 $11.35 $8.70 $14.15 $15.24
===== ====== ====== ===== ====== ======
CLASS A:
Shares of beneficial interest
outstanding ($0.001 par value) ........ 356,498 459,814 8,156 13,640 397 2,542
======= ======= ===== ====== === =====
NET ASSET VALUE, offering and redemption
price per share ....................... $8.95 $11.26 $11.35 $8.70 $14.36 $15.27
===== ====== ====== ===== ====== ======
Maximum sales charge ..................... 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%
==== ==== ==== ==== ==== ====
Maximum offering price per share
(NAV/0.96, based on maximum
sales charge of 4.00% of the
offering price at March 31, 2004) ..... $9.32 $11.73 $11.82 $9.06 $14.96 $15.91
===== ====== ====== ===== ====== ======
CLASS B:
Shares of beneficial interest
outstanding ($0.001 par value) ........ 8,256 19,677 37,942 5,159 119 31,852
===== ====== ====== ===== === ======
NET ASSET VALUE, offering and redemption
price per share ....................... $8.90(a) $11.25(a) $11.35(a) $8.52(a) $14.37(a) $15.05(a)
===== ====== ====== ===== ====== ======
CLASS C:
Shares of beneficial interest outstanding
($0.001 par value) .................... 16,630 69,261 4,126 13,504 352 24,307
====== ====== ===== ====== === ======
NET ASSET VALUE, and offering
price per share ........................ $8.93(a) $11.27(a) $11.35(a) $8.64(a) $14.71(a) $14.99(a)
===== ====== ====== ===== ====== ======
- ----------------
(a) Redemption price varies based on length of time held
See accompanying notes to financial statements.
13
THE GABELLI WESTWOOD FUNDS
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY BALANCED INTERMEDIATE SMALLCAP REALTY MIGHTY
FUND FUND BOND FUND EQUITY FUND FUND MITES SM FUND
------------ ------------ ------------ ------------ ----------- -------------
INVESTMENT INCOME:
Dividends ............................. $ 3,000,105 $ 1,457,453 $ -- $ 14,774 $ 471,404 $ 300,859
Interest .............................. 260 1,145,590 226,936 -- -- 66,501
------------ ------------ ------------ ------------ ------------ ------------
TOTAL INVESTMENT INCOME ............... 3,000,365 2,603,043 226,936 14,774 471,404 367,360
------------ ------------ ------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees .............. 1,096,162 576,771 34,249 81,371 76,870 306,025
Distribution fees-- Class AAA ......... 269,883 184,440 13,561 19,960 19,173 75,595
Distribution fees-- Class A ........... 7,759 13,101 175 305 74 90
Distribution fees-- Class B ........... 417 981 2,109 315 7 2,664
Distribution fees-- Class C ........... 697 4,085 230 606 23 801
Legal and audit fees .................. 31,439 25,551 12,188 13,659 9,154 16,166
Custodian fees ........................ 28,579 10,771 837 28,891 4,664 14,713
Shareholder services fees ............. 141,732 63,556 12,396 10,419 9,572 38,402
Registration fees ..................... 27,374 28,115 23,204 19,175 23,060 23,300
Shareholder report expenses ........... 31,569 16,627 962 2,538 1,452 3,258
Trustee fees .......................... 4,295 2,601 212 220 211 1,138
Miscellaneous expenses ................ 27,530 26,264 2,792 3,096 2,725 20,987
------------ ------------ ------------ ------------ ------------ ------------
TOTAL EXPENSES ........................ 1,667,436 952,863 102,915 180,555 146,985 503,139
------------ ------------ ------------ ------------ ------------ ------------
LESS:
Expense reimbursements ............. -- -- (43,293) (56,242) (27,688) (41,238)
Custodian fee credits .............. (6,174) (10,771) (736) (1,413) (3,933) (220)
------------ ------------ ------------ ------------ ------------ ------------
TOTAL REIMBURSEMENTS AND CREDITS ... (6,174) (10,771) (44,029) (57,655) (31,621) (41,458)
------------ ------------ ------------ ------------ ------------ ------------
TOTAL NET EXPENSES ................. 1,661,262 942,092 58,886 122,900 115,364 461,681
------------ ------------ ------------ ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS) .......... 1,339,103 1,660,951 168,050 (108,126) 356,040 (94,321)
------------ ------------ ------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain on investments ...... 6,163,649 3,591,379 84,325 2,017,030 297,417 1,554,963
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions ...... 20,542,857 7,517,841 (55,176) (665,757) 2,381,809 6,513,556
------------ ------------ ------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY 26,706,506 11,109,220 29,149 1,351,273 2,679,226 8,068,519
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ....................... $ 28,045,609 $ 12,770,171 $ 197,199 $ 1,243,147 $ 3,035,266 $ 7,974,198
============ ============ ============ ============ ============ ============
See accompanying notes to financial statements.
14
THE GABELLI WESTWOOD FUNDS
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
EQUITY FUND BALANCED FUND
-------------------------------- --------------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, MARCH 31, 2004 SEPTEMBER 30,
(UNAUDITED) 2003 (UNAUDITED) 2003
------------- ------------- ------------- -------------
OPERATIONS:
Net investment income .............................. $ 1,339,103 $ 2,742,514 $ 1,660,951 $ 3,324,387
Net realized gain (loss) on
investment transactions ......................... 6,163,649 (17,118,232) 3,591,379 (3,969,952)
Net change in unrealized appreciation on investments 20,542,857 46,872,694 7,517,841 17,609,031
------------- ------------- ------------- -------------
Net increase in net assets
resulting from operations ....................... 28,045,609 32,496,976 12,770,171 16,963,466
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class AAA ....................................... (2,610,574) (2,602,620) (1,597,132) (3,238,083)
Class A ......................................... (33,291) (15,571) (51,379) (95,033)
Class B ......................................... (658) (278) (1,560) (2,167)
Class C ......................................... -- (2,736) (6,039) (5,249)
------------- ------------- ------------- -------------
Total distributions to shareholders ................ (2,644,523) (2,621,205) (1,656,110) (3,340,532)
------------- ------------- ------------- -------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares issued
Class AAA ....................................... 25,913,760 46,407,699 14,998,529 38,772,298
Class A ......................................... 445,424 1,345,854 75,407 935,819
Class B ......................................... 5,337 51,042 27,409 92,381
Class C ......................................... 10,387 863,444 821,077 706,432
------------- ------------- ------------- -------------
26,374,908 48,668,039 15,922,422 40,506,930
------------- ------------- ------------- -------------
Proceeds from reinvestment of dividends
Class AAA ....................................... 2,404,917 2,264,442 1,477,005 3,005,116
Class A ......................................... 32,283 14,299 42,096 78,353
Class B ......................................... 399 278 1,382 1,924
Class C ......................................... -- 2,735 3,650 2,797
------------- ------------- ------------- -------------
2,437,599 2,281,754 1,524,133 3,088,190
------------- ------------- ------------- -------------
Cost of shares redeemed
Class AAA ....................................... (65,104,096) (87,748,936) (37,362,994) (53,401,600)
Class A ......................................... (562,861) (594,797) (382,874) (2,168,311)
Class B ......................................... (16,085) (33,717) (4,861) (31,726)
Class C ......................................... (7,337) (777,960) (558,811) (570,280)
------------- ------------- ------------- -------------
(65,690,379) (89,155,410) (38,309,540) (56,171,917)
------------- ------------- ------------- -------------
Net decrease in net assets from shares of
beneficial interest transactions ................ (36,877,872) (38,205,617) (20,862,985) (12,576,797)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets .............. (11,476,786) (8,329,846) (9,748,924) 1,046,137
NET ASSETS:
Beginning of period ................................ 224,761,071 233,090,917 158,119,289 157,073,152
------------- ------------- ------------- -------------
End of period ...................................... $ 213,284,285 $ 224,761,071 $ 148,370,365 $ 158,119,289
============= ============= ============= =============
Undistributed net investment income ................ $ 439,040 $ 1,744,460 $ 4,841 --
============= ============= ============= =============
See accompanying notes to financial statements.
15
THE GABELLI WESTWOOD FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
INTERMEDIATE BOND FUND SMALLCAP EQUITY FUND
-------------------------------- -------------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, MARCH 31, 2004 SEPTEMBER 30,
(UNAUDITED) 2003 (UNAUDITED) 2003
------------- ------------- ------------- -------------
OPERATIONS:
Net investment income (loss) ............... $ 168,050 $ 392,973 $ (108,126) $ (167,046)
Net realized gain (loss) on
investment transactions .................. 84,325 353,776 2,017,030 (610,797)
Net change in unrealized appreciation
(depreciation) on investments ........... (55,176) (389,189) (665,757) 2,243,193
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations ............... 197,199 357,560 1,243,147 1,465,350
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class AAA ............................... (161,398) (380,496) -- --
Class A ................................. (1,439) (2,488) -- --
Class B ................................. (4,701) (7,806) -- --
Class C ................................. (512) (2,198) -- --
------------ ------------ ------------ ------------
(168,050) (392,988) -- --
------------ ------------ ------------ ------------
Net realized gain on investment transactions
Class AAA ............................... (12,960) -- -- --
Class A ................................. (123) -- -- --
Class B ................................. (478) -- -- --
Class C ................................. (55) -- -- --
------------ ------------ ------------ ------------
(13,616) -- -- --
------------ ------------ ------------ ------------
Total distributions to shareholders ........ (181,666) (392,988) -- --
------------ ------------ ------------ ------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares issued
Class AAA ............................... 1,434,736 41,063,328 6,789,183 18,908,564
Class A ................................. 1,360 170,010 -- 33,727
Class B ................................. 25,584 848,694 240 32,037
Class C ................................. -- 1,308,262 -- 115,731
------------ ------------ ------------ ------------
1,461,680 43,390,294 6,789,423 19,090,059
------------ ------------ ------------ ------------
Proceeds from reinvestment of dividends
Class AAA ............................... 132,924 328,481 -- --
Class A ................................. 1,302 2,255 -- --
Class B ................................. 2,024 4,411 -- --
Class C ................................. 481 1,852 -- --
------------ ------------ ------------ ------------
136,731 336,999 -- --
------------ ------------ ------------ ------------
Cost of shares redeemed
Class AAA ............................... (3,372,761) (44,340,287) (9,886,503) (20,860,519)
Class A ................................. (48,172) (93,540) -- --
Class B ................................. (98,431) (577,839) (25,492) --
Class C ................................. -- (1,311,766) (1,327) --
------------ ------------ ------------ ------------
(3,519,364) (46,323,432) (9,913,322) (20,860,519)
------------ ------------ ------------ ------------
Net decrease in net assets from shares of
beneficial interest transactions ........ (1,920,953) (2,596,139) (3,123,899) (1,770,460)
------------ ------------ ------------ ------------
Net decrease in net assets ................. (1,905,420) (2,631,567) (1,880,752) (305,110)
NET ASSETS:
Beginning of period ........................ 12,859,994 15,491,561 16,008,968 16,314,078
------------ ------------ ------------ ------------
End of period .............................. $ 10,954,574 $ 12,859,994 $ 14,128,216 $ 16,008,968
============ ============ ============ ============
See accompanying notes to financial statements.
16
THE GABELLI WESTWOOD FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
REALTY FUND MIGHTY MITES SM FUND
-------------------------------- -------------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, MARCH 31, 2004 SEPTEMBER 30,
(UNAUDITED) 2003 (UNAUDITED) 2003
------------- ------------- ------------- -------------
OPERATIONS:
Net investment income (loss) ................ $ 356,040 $ 421,987 $ (94,321) $ (80,408)
Net realized gain on investment
transactions ............................ 297,417 45,727 1,554,963 658,859
Net change in unrealized appreciation
on investments ........................... 2,381,809 2,078,575 6,513,556 6,462,220
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations ................ 3,035,266 2,546,289 7,974,198 7,040,671
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class AAA ................................ (293,590) (423,817) -- (86,465)
Class A .................................. (539) (143) -- (97)
Class B .................................. (24) (405) -- --
Class C .................................. (68) (34) -- --
------------ ------------ ------------ ------------
(294,221) (424,399) -- (86,562)
------------ ------------ ------------ ------------
Net realized gain on investment transactions
Class AAA ................................ -- -- (661,777) (118,037)
Class A .................................. -- -- (389) (82)
Class B .................................. -- -- (5,992) (17)
Class C .................................. -- -- (1,697) (257)
------------ ------------ ------------ ------------
-- -- (669,855) (118,393)
------------ ------------ ------------ ------------
Total distributions to shareholders ......... (294,221) (424,399) (669,855) (204,955)
------------ ------------ ------------ ------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares issued
Class AAA ................................ 3,972,884 11,175,605 33,653,965 40,071,725
Class A .................................. 28,903 100,769 1,118 28,170
Class B .................................. -- 35,053 8,286 546,036
Class C .................................. -- 11,314 253,675 88,426
------------ ------------ ------------ ------------
4,001,787 11,322,741 33,917,044 40,734,357
------------ ------------ ------------ ------------
Proceeds from reinvestment of dividends
Class AAA ................................ 270,106 381,961 577,769 186,652
Class A .................................. 538 140 387 178
Class B .................................. 21 403 5,990 16
Class C .................................. 66 31 1,696 256
------------ ------------ ------------ ------------
270,731 382,535 585,842 187,102
------------ ------------ ------------ ------------
Cost of shares redeemed
Class AAA ................................ (2,687,789) (8,875,621) (29,264,282) (27,082,367)
Class A .................................. (38,795) (96,437) -- --
Class B .................................. -- (43,582) (117,968) (49,416)
Class C .................................. -- (7,289) (9,851) (60,346)
------------ ------------ ------------ ------------
(2,726,584) (9,022,929) (29,392,101) (27,192,129)
------------ ------------ ------------ ------------
Net increase in net assets from
shares of beneficial interest transactions 1,545,934 2,682,347 5,110,785 13,729,330
------------ ------------ ------------ ------------
Net increase in net assets .................. 4,286,979 4,804,237 12,415,128 20,565,046
NET ASSETS:
Beginning of period ......................... 13,939,245 9,135,008 51,732,440 31,167,394
------------ ------------ ------------ ------------
End of period ............................... $ 18,226,224 $ 13,939,245 $ 64,147,568 $ 51,732,440
============ ============ ============ ============
Undistributed net investment income ......... $ 61,819 -- -- --
============ ============ ============ ============
See accompanying notes to financial statements.
17
THE GABELLI WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION. The Gabelli Westwood Funds (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: Equity Fund, Balanced Fund,
Intermediate Bond Fund, SmallCap Equity Fund, Realty Fund and Mighty Mites Fund
(collectively, the "Funds"), each with four classes of shares known as the Class
AAA Shares, Class A Shares, Class B Shares and Class C Shares. 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.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those estimates.
The following is a summary of the significant accounting policies followed by
the Funds in the preparation of their financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange, quoted by the National Association of Securities
Dealers Automated Quotations, Inc. ("Nasdaq") or traded in the U.S.
over-the-counter market for which market quotations are readily available are
valued at the last quoted sale or closing price on that exchange or market 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 so determines, by such other method
as the Board of Trustees shall determine in good faith, to reflect its fair
market value. Portfolio securities traded on more than one national securities
exchange or market are valued according to the broadest and most representative
market, as determined by Gabelli Funds, LLC (the "Adviser"). Portfolio
securities primarily traded on foreign markets are generally valued at the
preceding closing values of such securities on their respective exchanges.
Securities and assets for which market quotations are not readily available are
valued at their fair value as determined in good faith under procedures
established by and under the general supervision of the Board of Trustees. Short
term debt securities with remaining maturities of 60 days or less are valued at
amortized cost, unless the Board of Trustees determine such does not reflect the
securities fair value, in which case these securities will be valued at their
fair value as determined by the Board of Trustees. Debt instruments having a
maturity greater than 60 days for which market quotations are readily available
are valued at the latest average of the bid and asked prices. If there were no
asked prices quoted on such day, the security is valued using the closing bid
price. Options are valued at the last sale price on the exchange on which they
are listed. If no sales of such options have taken place that day, they will be
valued at the mean between their closing bid and asked prices.
ACCOUNTING FOR REAL ESTATE INVESTMENT TRUSTS. The Funds own shares of Real
Estate Investment Trusts ("REITS") which report information on the source of
their distributions annually. Distributions received from REITS during the year
which are known to be a return of capital are recorded as a reduction to the
cost of the individual REIT.
FOREIGN CURRENCY TRANSLATION. The books and records of the Trust are maintained
in United States (U.S.) dollars. Foreign currencies, investments and other
assets and liabilities are translated into U.S. dollars at the exchange rates
prevailing at the end of the period, and purchases and sales of investment
securities, income and expenses are translated at the exchange rate prevailing
on the respective dates of such transactions. Unrealized gains and losses, which
result from changes in foreign exchange rates and/or changes in market prices of
securities, have been included
18
THE GABELLI WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
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 Trust and the amounts actually received.
The portion of foreign currency gains and losses related to fluctuation in
exchange rates between the initial trade date and subsequent sale trade date is
included in realized gain/(loss) on investments.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
Dividend income is recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends from net investment
income are declared and paid annually for the Equity Fund, SmallCap Equity Fund
and Mighty Mites Fund, and quarterly for the Balanced Fund and Realty 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. Dividends and distributions to
shareholders are recorded on the ex-dividend date. Income distributions and
capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Funds, timing differences and
differing characterization of distributions made by the Funds.
For the year ended September 30, 2003, the following reclassifications were made
to increase (decrease) such accounts with offsetting adjustments to additional
paid-in-capital. These reclassifications related primarily to distributions from
Real Estate Investment Trusts, net operating losses and nondeductible
organizational costs.
ACCUMULATED UNDISTRIBUTED ACCUMULATED REALIZED
NET INVESTMENT INCOME (LOSS) GAIN (LOSS) ON INVESTMENTS
---------------------------- --------------------------
Equity Fund ............... -- $ (461)
Balanced Fund ............. $ 8,253 --
Intermediate Bond Fund .... (566) 566
SmallCap Equity Fund ...... 167,046 532
Realty Fund ............... 207 --
Mighty Mites Fund ......... 146,445 (140,675)
The tax character of distributions paid during the fiscal year ended September
30, 2003 were as follows:
INTERMEDIATE SMALLCAP MIGHTY
EQUITY BALANCED BOND EQUITY REALTY MITES SM
FUND FUND FUND FUND FUND FUND
------ -------- ------------ -------- ------ --------
Distributions paid from:
Ordinary income
(inclusive of short term capital gains) .. $2,621,205 $3,340,532 $392,988 -- $424,399 $101,542
Net long term capital gains ................. -- -- -- -- -- 103,413
---------- ---------- -------- ---- -------- --------
Total distributions paid .................... $2,621,205 $3,340,532 $392,988 -- $424,399 $204,955
========== ========== ======== ==== ======== ========
19
THE GABELLI WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
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. By so qualifying, the Funds will not be subject to federal income taxes
to the extent that they distribute all of their taxable income for the fiscal
year.
As of September 30, 2003, the components of distributable accumulated
earnings/(losses) on a tax basis were as follows:
INTERMEDIATE SMALLCAP MIGHTY
EQUITY BALANCED BOND EQUITY REALTY MITES SM
FUND FUND FUND FUND FUND FUND
------ -------- ------------ -------- ------ --------
Undistributed ordinary income ........ $ 1,744,460 -- $ 2,046 -- -- $ 196,000
Currently distributable long-term
capital gain ....................... -- -- -- -- -- 246,373
Capital loss carryforward ............ (27,349,500) $ (4,979,695) -- $(13,690,665) $ (202,901) --
Unrealized appreciation/(depreciation) 6,822,662 7,607,561 460,773 1,286,561 1,994,021 5,560,670
------------ ------------ ------------ ------------ ------------ ------------
Total accumulated income/(loss) ...... $(18,782,378) $ 2,627,866 $ 462,819 $(12,404,104) $ 1,791,120 $ 6,003,043
============ ============ ============ ============ ============ ============
The difference between book and tax-basis unrealized appreciation/(depreciation)
is attributable primarily to the tax basis deferral of losses on wash sales.
DETERMINATION OF NET ASSET VALUE AND CALCULATION OF EXPENSES. Expenses directly
attributable to a Fund are charged to that Fund. Other expenses are allocated
proportionately among each Fund within the Trust in relation to the net assets
of each Fund or on another reasonable basis. In calculating net asset value per
share of each class, investment income, realized and unrealized gains and losses
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 solely borne by the class
incurring the expense.
CONCENTRATION RISK. The Realty Fund invests a substantial portion of its assets
in REITS; therefore it may be more affected by economic developments in the real
estate industry than would a general equity fund.
3. INVESTMENT ADVISORY AGREEMENTS. The Funds have entered into an investment
advisory agreement (the "Advisory Agreement") with the Adviser which provides
that the Funds will pay the Adviser a fee, computed daily and paid monthly, at
the annual rate of 1.00% for the Equity Fund, SmallCap Equity Fund, Realty Fund
and Mighty Mites Fund, 0.75% for the Balanced Fund, and 0.60% for the
Intermediate Bond Fund, of each Fund's average daily net assets. The Adviser has
contractually agreed to waive its investment advisory fee and/or reimburse
expenses to the Intermediate Bond Fund, SmallCap Equity Fund, Realty Fund and
Mighty Mites Fund in the event annual expenses of such Funds exceed certain
prescribed limits. Such fee waiver/reimbursement arrangement will continue until
at least September 30, 2004. For the six months ended March 31, 2004, the
Adviser was entitled to fees of $1,096,162, $81,371, $76,870, $306,025, $576,771
and $34,249 for the Equity, SmallCap Equity, Realty, Mighty Mites, Balanced and
Intermediate Bond Funds, respectively. For the six months ended March 31, 2004,
the Adviser waived fees or reimbursed expenses in the amounts of $56,242,
$27,688, $41,238 and $43,293 for the SmallCap Equity, Realty, Mighty Mites and
Intermediate Bond Funds, respectively.
The Intermediate Bond Fund, SmallCap Equity Fund, Realty Fund and Mighty Mites
Fund are obliged to repay the Adviser for a period of two fiscal years following
the fiscal year in which the Adviser reimbursed the Fund only to the extent that
the operating expenses of the Fund fall below the applicable expense limitation
for Class AAA of 1.00%, 1.50%, 1.50% and 1.50%, respectively and for Class A of
1.10%, 1.75%, 1.75% and 1.75%, respectively, and for Class B and C of 1.75%,
2.25%, 2.25% and 2.25%, respectively of average daily net assets, the annual
limitation under the plan. As of March 31, 2004 the cumulative unreimbursed
amounts which may be recovered by the Adviser are $182,730, $177,822, $145,623
and $178,938 for the Intermediate Bond, SmallCap Equity, Realty and Mighty Mites
Funds, respectively.
20
THE GABELLI WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
The Funds, with the exception of the Mighty Mites Fund, have also entered into a
sub-advisory agreement with Westwood Management Corp. (the "Sub-Adviser")
whereby the Adviser pays the Sub-Adviser the greater of $150,000 per year on an
aggregate basis for the Funds or a fee of 35% of net revenues to the Adviser
from the Funds. For the six months ended March 31, 2004, the Adviser paid to the
Sub-Adviser fees of $320,532, $23,794, $22,478, $224,874 and $16,692 for the
Equity, SmallCap Equity, Realty, Balanced and Intermediate Bond Funds,
respectively.
4. DISTRIBUTION PLANS. The Funds have adopted distribution plans pursuant to
Rule 12b-1 under the 1940 Act. Gabelli & Company, Inc. ("Gabelli & Company"), an
affiliate of the Adviser, serves as distributor of the Funds. The Class AAA
Share Plan authorizes payment by the Funds to Gabelli & Company in connection
with the distribution of its Class AAA shares at an annual rate of 0.25% of the
average daily net assets of those Funds each fiscal year. Such payments are
accrued daily and paid monthly.
Under the Class A, B and C Share Plans, payments are authorized to Gabelli &
Company in connection with the distribution and service of its Class A, B and C
Shares at annual rates of 0.50% (for the Intermediate Bond Fund at an annual
rate of 0.35%), 1.00% and 1.00%, respectively, of the average daily net assets
of those Classes each fiscal year. Such payments are accrued daily and paid
monthly.
5. PORTFOLIO SECURITIES. Purchases and sales of securities for the six months
ended March 31, 2004, other than short term securities, are as follows:
PURCHASES SALES PURCHASES SALES
(EXCLUDING U.S. (EXCLUDING U.S. OF U.S. OF U.S.
GOVERNMENT) GOVERNMENT) GOVERNMENT GOVERNMENT
SECURITIES SECURITIES SECURITIES SECURITIES
-------------- --------------- ---------- ----------
Equity Fund ................. $50,444,921 $87,655,132 -- --
Balanced Fund ............... 20,986,141 36,728,788 $4,728,784 $8,743,361
Intermediate Bond Fund ...... 1,153,455 513,241 153,057 2,758,002
SmallCap Equity Fund ........ 15,455,889 19,050,781 -- --
Realty Fund ................. 2,860,365 1,433,453 -- --
Mighty Mites Fund ........... 22,489,748 4,961,505 -- --
21
THE GABELLI WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
6. TRANSACTIONS WITH AFFILIATES. During the six months ended March 31, 2004, the
Mighty Mites Fund paid brokerage commissions of $30,017 to Gabelli & Company.
Gabelli & Company has informed the Trust that it received commissions (sales
charges and underwriting fees) from investors on sales or redemptions of Fund
shares in the amount of $639.
The cost of calculating each Fund's net asset value per share is a Fund expense
pursuant to the Investment Advisory Agreement between each Fund and Gabelli
Advisers, Inc. (the "Adviser"). During the six months ended March 31, 2004, the
Gabelli Westwood Equity Fund, Gabelli Westwood Balanced Fund and Gabelli
Westwood Mighty Mites Fund reimbursed the Adviser $17,400 each in connection
with the cost of computing such Fund's net asset value.
7. FEDERAL INCOME TAX INFORMATION. The Equity Fund has capital loss
carryforwards for Federal income tax purposes of $5,455,742 and $21,893,758
available through September 2010 and 2011, respectively. The Balanced Fund has
capital loss carryforwards for Federal income tax purposes of $1,323,084 and
$3,656,611 available through September 2010 and 2011, respectively. The
Intermediate Bond Fund utilized capital loss carryforwards of $355,159 during
the fiscal year 2003. The SmallCap Equity Fund has capital loss carryforwards
for Federal income tax purposes of $8,845,179 and $4,845,486 available through
September 2010 and 2011, respectively. The Realty Fund has capital loss
carryforwards for Federal income tax purposes of $3,953, $185,550 and $13,398
available through September 2007, 2008 and 2011, respectively. These loss
carryforwards are available to reduce distributions of net capital gains to
shareholders.
Under the current tax law, capital losses related to securities and foreign
currency realized after October 31 and prior to the Fund's fiscal year end may
be deferred as occurring on the first day of the following year. For the fiscal
year ended September 30, 2003 the Funds elected to defer capital losses as
follows:
DEFERRED LOSS
-------------
Equity Fund ................... $13,674,745
Balanced Fund ................. 3,197,287
Intermediate Bond Fund ........ --
SmallCap Equity Fund .......... 367,452
Realty Fund ................... --
Mighty Mites Fund ............. --
8. CONTINGENCY. On October 7, 2003, the Funds' Adviser received a subpoena from
the Attorney General of the State of New York requesting information on mutual
fund shares trading practices. The Adviser responded to the subpoena. The Funds
do not believe that this matter will have a material adverse effect on the
Funds' financial position or results of the operations.
22
THE GABELLI WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
9. SHARES OF BENEFICIAL INTEREST. Transactions in shares of beneficial interest
were as follows:
EQUITY FUND BALANCED FUND INTERMEDIATE BOND FUND
---------------------------- ---------------------------- ----------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, MARCH 31, 2004 SEPTEMBER 30, MARCH 31, 2004 SEPTEMBER 30,
(UNAUDITED) 2003 (UNAUDITED) 2003 (UNAUDITED) 2003
----------- ----------- ----------- ----------- ----------- -----------
CLASS AAA
Shares sold ................ 2,958,398 6,208,684 1,353,021 3,823,778 127,876 3,647,441
Shares issued upon
reinvestment of dividends 274,221 302,329 132,839 293,563 11,903 29,158
Shares redeemed ............ (7,584,947) (11,724,255) (3,393,969) (5,264,486) (301,931) (3,941,459)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in
Class AAA shares .... (4,352,328) (5,213,242) (1,908,109) (1,147,145) (162,152) (264,860)
=========== =========== =========== =========== =========== ===========
CLASS A
Shares sold ................ 50,862 186,265 6,768 91,710 121 15,245
Shares issued upon
reinvestment of dividends 3,690 1,914 3,795 7,686 117 200
Shares redeemed ............ (64,938) (80,023) (34,384) (214,898) (4,300) (8,177)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in
Class A shares ......... (10,386) 108,156 (23,821) (115,502) (4,062) 7,268
=========== =========== =========== =========== =========== ===========
CLASS B
Shares sold ................ 661 6,566 2,421 8,962 2,247 75,176
Shares issued upon
reinvestment of dividends 46 37 125 187 181 392
Shares redeemed ............ (1,840) (4,803) (445) (3,310) (8,882) (51,400)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in
Class B shares .......... (1,133) 1,800 2,101 5,839 (6,454) 24,168
=========== =========== =========== =========== =========== ===========
CLASS C
Shares sold ................ 1,132 113,403 76,572 69,360 -- 118,109
Shares issued upon
reinvestment of dividends -- 368 329 271 43 164
Shares redeemed ............ (878) (102,101) (51,093) (55,678) -- (118,596)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in
Class C shares ......... 254 11,670 25,808 13,953 43 (323)
=========== =========== =========== =========== =========== ===========
SMALLCAP EQUITY FUND REALTY FUND MIGHTY MITES SM FUND
---------------------------- ---------------------------- ----------------------------
CLASS AAA
Shares sold ................ 752,381 2,500,124 303,700 1,060,132 2,303,109 3,248,232
Shares issued upon
reinvestment of dividends -- -- 20,730 36,193 41,005 16,344
Shares redeemed ............ (1,083,281) (2,741,991) (210,288) (832,671) (2,000,001) (2,213,063)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in
Class AAA shares ....... (330,900) (241,867) 114,142 263,654 344,113 1,051,513
=========== =========== =========== =========== =========== ===========
CLASS A
Shares sold ................ -- 4,227 2,320 9,846 76 2,344
Shares issued upon
reinvestment of dividends -- -- 42 12 28 15
Shares redeemed ............ -- -- (2,829) (9,323) -- --
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in
Class A shares ........ -- 4,227 (467) 535 104 2,359
=========== =========== =========== =========== =========== ===========
CLASS B
Shares sold ................ 28 3,889 -- 3,525 583 42,229
Shares issued upon
reinvestment of dividends -- -- 2 40 430 1
Shares redeemed ............ (2,926) -- -- (4,384) (8,000) (3,737)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in
Class B shares .......... (2,898) 3,889 2 (819) (6,987) 38,493
=========== =========== =========== =========== =========== ===========
CLASS C
Shares sold ................ -- 13,643 -- 1,076 17,470 7,086
Shares issued upon
reinvestment of dividends -- -- 5 3 122 23
Shares redeemed ............ (149) -- -- (742) (714) (5,007)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in
Class C shares ........ (149) 13,643 5 337 16,878 2,102
=========== =========== =========== =========== =========== ===========
23
THE GABELLI WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
----------------------------------------- --------------------------------------
NET
REALIZED
NET ASSET NET AND TOTAL NET NET
VALUE, INVESTMENT UNREALIZED GAIN FROM NET REALIZED ASSET VALUE,
PERIOD ENDED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL END OF
SEPTEMBER 30 OF PERIOD (LOSS)(C) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS PERIOD
------------ --------- ---------- --------------- ---------- ---------- ----------- ------------- ------------
EQUITY FUND
CLASS AAA
2004 (a) $ 7.99 $ 0.05 $ 1.05 $ 1.10 $(0.11) -- $(0.11) $ 8.98
2003 7.02 0.09 0.96 1.05 (0.08) -- (0.08) 7.99
2002 8.32 0.07 (1.32) (1.25) (0.05) -- (0.05) 7.02
2001 11.12 0.04 (1.52) (1.48) (0.01) $(1.31) (1.32) 8.32
2000 10.46 (0.00)(d) 1.86 1.86 (0.02) (1.18) (1.20) 11.12
1999 8.99 0.04 1.72 1.76 (0.06) (0.23) (0.29) 10.46
CLASS A
2004 (a) $ 7.97 $ 0.04 $ 1.03 $ 1.07 $(0.09) -- $(0.09) $ 8.95
2003 6.99 0.07 0.97 1.04 (0.06) -- (0.06) 7.97
2002 8.29 0.05 (1.32) (1.27) (0.03) -- (0.03) 6.99
2001 11.10 0.02 (1.52) (1.50) -- $(1.31) (1.31) 8.29
2000 10.46 (0.03) 1.85 1.82 -- (1.18) (1.18) 11.10
1999 8.97 0.02 1.73 1.75 (0.03) (0.23) (0.26) 10.46
CLASS B
2004 (a) $ 7.92 $ 0.02 $ 1.03 $ 1.05 $(0.07) -- $(0.07) $ 8.90
2003 6.97 0.04 0.95 0.99 (0.04) -- (0.04) 7.92
2002 8.29 0.02 (1.32) (1.30) (0.02) -- (0.02) 6.97
2001 (e) 9.65 (0.01) (1.35) (1.36) -- -- -- 8.29
CLASS C
2004 (a) $ 7.89 $ 0.02 $ 1.02 $ 1.04 -- -- -- $ 8.93
2003 6.98 0.04 0.96 1.00 $(0.09) -- $(0.09) 7.89
2002 8.28 0.01 (1.31) (1.30) -- -- -- 6.98
2001 (f) 10.25 (0.01) (1.96) (1.97) -- -- -- 8.28
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------
NET
NET ASSETS, INVESTMENT EXPENSES
END OF INCOME (LOSS) NET OF WAIVERS PORTFOLIO
PERIOD ENDED TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER
SEPTEMBER 30 RETURN+ (IN 000'S) NET ASSETS NET ASSETS(B) RATE
------------ ------- ----------- ------------- -------------- ----------
EQUITY FUND
CLASS AAA
2004 (a) 13.8% $209,871 1.23%(g) 1.52%(g) 23%
2003 15.1 221,635 1.19 1.48 50
2002 (15.1) 231,197 0.84 1.46 84
2001 (14.9) 265,855 0.45 1.43 87
2000 19.3 204,094 (0.00) 1.48 91
1999 19.8 155,036 0.38 1.49 67
CLASS A
2004 (a) 13.5% $ 3,191 0.98%(g) 1.77%(g) 23%
2003 15.0 2,923 0.94 1.73 50
2002 (15.4) 1,808 0.59 1.71 84
2001 (15.1) 2,096 0.20 1.68 87
2000 19.0 2,133 (0.25) 1.73 91
1999 19.5 2,222 0.13 1.74 67
CLASS B
2004 (a) 13.3% $ 74 0.48%(g) 2.27%(g) 23%
2003 14.3 74 0.44 2.23 50
2002 (15.7) 53 0.09 2.21 84
2001 (e) (14.1) 27 (0.30)(g) 2.18(g) 87
CLASS C
2004 (a) 13.2% $ 148 0.48%(g) 2.27%(g) 23%
2003 14.4 129 0.44 2.23 50
2002 (15.7) 33 0.09 2.21 84
2001 (f) (19.2) 4 (0.30)(g) 2.18(g) 87
- --------------------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
(a) For the period ended March 31, 2004; unaudited.
(b) The ratios do not include a reduction of expenses for custodian fee credits
on cash balances maintained with the custodian. Including such custodian
fee credits, the expense ratios would be 1.51% (Class AAA), 1.76% (Class A)
and 2.26% (Class B and Class C) for the period ended March 31, 2004, 1.47%
(Class AAA), 1.72% (Class A) and 2.22% (Class B and C) for the period ended
September 30, 2003, 1.43% (Class AAA), 1.68% (Class A) and 2.18% (Class B
and Class C) for 2002, 1.42% (Class AAA), 1.67% (Class A) and 2.17% (Class
B and Class C) for 2001, 1.47% (Class AAA) and 1.72% (Class A) for 2000 and
1.44% (Class AAA) and 1.69% (Class A) for 1999.
(c) Per share amounts have been calculated using the monthly average shares
outstanding method for fiscal 2000, 2001, 2002, 2003 and 2004.
(d) Amount represents less than $0.005 per share.
(e) From March 27, 2001 through September 30, 2001, the period through which
Class B Shares were continuously outstanding.
(f) From February 13, 2001 through September 30, 2001, the period through which
Class C Shares were continuously outstanding.
(g) Annualized.
See accompanying notes to financial statements.
24
THE GABELLI WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
----------------------------------------- --------------------------------------
NET
REALIZED
NET ASSET NET AND TOTAL NET NET
VALUE, INVESTMENT UNREALIZED GAIN FROM NET REALIZED ASSET VALUE,
PERIOD ENDED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL END OF
SEPTEMBER 30 OF PERIOD (LOSS)(C) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS PERIOD
------------ --------- ---------- --------------- ---------- ---------- ----------- ------------- ------------
BALANCED FUND
CLASS AAA
2004 (a) $10.51 $0.12 $ 0.78 $ 0.90 $(0.12) -- $(0.12) $11.29
2003 9.65 0.21 0.87 1.08 (0.22) -- (0.22) 10.51
2002 10.40 0.24 (0.75) (0.51) (0.24) --(d) (0.24) 9.65
2001 12.40 0.26 (0.90) (0.64) (0.26) $(1.10) (1.36) 10.40
2000 11.98 0.27 1.23 1.50 (0.27) (0.81) (1.08) 12.40
1999 10.98 0.25 1.12 1.37 (0.25) (0.12) (0.37) 11.98
CLASS A
2004 (a) $10.48 $0.11 $ 0.78 $ 0.89 $(0.11) -- $(0.11) $11.26
2003 9.62 0.19 0.86 1.05 (0.19) -- (0.19) 10.48
2002 10.37 0.21 (0.75) (0.54) (0.21) --(d) (0.21) 9.62
2001 12.36 0.23 (0.89) (0.66) (0.23) $(1.10) (1.33) 10.37
2000 11.95 0.24 1.22 1.46 (0.24) (0.81) (1.05) 12.36
1999 10.96 0.22 1.11 1.33 (0.22) (0.12) (0.34) 11.95
CLASS B
2004 (a) $10.48 $0.08 $ 0.77 $ 0.85 $(0.08) -- $(0.08) $11.25
2003 9.63 0.14 0.86 1.00 (0.15) -- (0.15) 10.48
2002 10.40 0.17 (0.77) (0.60) (0.17) --(d) (0.17) 9.63
2001 (e) 11.35 0.08 (0.95) (0.87) (0.08) -- (0.08) 10.40
CLASS C
2004 (a) $10.49 $0.08 $ 0.78 $ 0.86 $(0.08) -- $(0.08) $11.27
2003 9.62 0.14 0.87 1.01 (0.14) -- (0.14) 10.49
2002 10.40 0.19 (0.79) (0.60) (0.18) --(d) (0.18) 9.62
2001 (f) 10.17 0.00(d) 0.23(h) 0.23 -- -- -- 10.40
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------
NET
NET ASSETS, INVESTMENT EXPENSES
END OF INCOME (LOSS) NET OF WAIVERS PORTFOLIO
PERIOD ENDED TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER
SEPTEMBER 30 RETURN+ (IN 000'S) NET ASSETS NET ASSETS(B) RATE
------------ ------- ----------- ------------- -------------- ----------
BALANCED FUND
CLASS AAA
2004 (a) 8.6% $142,190 2.17%(g) 1.23%(g) 18%
2003 11.2 152,409 2.10 1.23 56
2002 (5.1) 150,915 2.25 1.22 78
2001 (5.8) 154,179 2.23 1.17 81
2000 13.4 139,350 2.21 1.19 65
1999 12.6 160,352 2.06 1.20 86
CLASS A
2004 (a) 8.5% $ 5,179 1.92%(g) 1.48%(g) 18%
2003 11.0 5,070 1.85 1.48 56
2002 (5.4) 5,761 2.00 1.47 78
2001 (6.0) 6,472 1.98 1.42 81
2000 13.1 7,720 1.96 1.44 65
1999 12.2 9,374 1.81 1.45 86
CLASS B
2004 (a) 8.2% $ 221 1.42%(g) 1.98%(g) 18%
2003 10.4 184 1.35 1.98 56
2002 (5.9) 113 1.50 1.97 78
2001 (e) (7.7) 2 1.48(g) 1.92(g) 81
CLASS C
2004 (a) 8.2% $ 780 1.42%(g) 1.98%(g) 18%
2003 10.5 456 1.35 1.98 56
2002 (5.9) 284 1.50 1.97 78
2001 (f) 2.3 7 1.48(g) 1.92(g) 81
- --------------------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
(a) For the period ended March 31, 2004; unaudited.
(b) The ratios do not include a reduction of expenses for custodian fee credits
on cash balances maintained with the custodian. Including such custodian fee
credits, the expense ratios would be 1.21% (Class AAA), 1.46% (Class A) and
1.96% (Class B and Class C) for the period ended March 31, 2004, 1.20%
(Class AAA), 1.45% (Class A) and 1.95% (Class B andC) for the period ended
September 30, 2003, 1.17% (Class AAA), 1.42% (Class A) and 1.92% (Class B
and Class C) for 2002, 1.15% (Class AAA), 1.40% (Class A) and 1.90% (Class B
and Class C) for 2001, 1.17% (Class AAA) and 1.42% (Class A) for 2000 and
1.15% (Class AAA) and 1.40% (Class A) for 1999.
(c) Per share amounts have been calculated using the monthly average shares
outstanding method for fiscal 2000, 2001, 2002, 2003 and 2004.
(d) Amount represents less than $.005 per share.
(e) From March 27, 2001 through September 30, 2001, the period through which
Class B Shares were continuously outstanding.
(f) From September 25, 2001 through September 30, 2001, the period through which
Class C Shares were continuously outstanding.
(g) Annualized.
(h) In prior reports, Net Realized and Unrealized Gain (Loss) on Investments was
incorrectly calculated as $(0.29) per share.
See accompanying notes to financial statements.
25
THE GABELLI WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
----------------------------------------- --------------------------------------
NET
REALIZED
NET ASSET NET AND TOTAL NET NET
VALUE, INVESTMENT UNREALIZED GAIN FROM NET REALIZED ASSET VALUE,
PERIOD ENDED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL END OF
SEPTEMBER 30 OF PERIOD (LOSS)(D) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS PERIOD
------------ --------- ---------- --------------- ---------- ---------- ----------- ------------- ------------
INTERMEDIATE BOND FUND
CLASS AAA
2004 (a) $11.31 $0.17 $ 0.05 $ 0.22 $(0.17) $(0.01) $(0.18) $11.35
2003 11.30 0.31 (0.00) 0.31 (0.30) -- (0.30) 11.31
2002 10.82 0.45 0.48 0.93 (0.45) -- (0.45) 11.30
2001 10.08 0.51 0.74 1.25 (0.51) -- (0.51) 10.82
2000 9.99 0.51 0.09 0.60 (0.51) -- (0.51) 10.08
1999 10.74 0.50 (0.75) (0.25) (0.50) -- (0.50) 9.99
CLASS A
2004 (a) $11.31 $0.16 $ 0.05 $ 0.21 $(0.16) $(0.01) $(0.17) $11.35
2003 11.30 0.30 0.01 0.31 (0.30) -- (0.30) 11.31
2002 10.82 0.44 0.48 0.92 (0.44) -- (0.44) 11.30
2001 (f) 10.55 0.09 0.27 0.36 (0.09) -- (0.09) 10.82
CLASS B
2004 (a) $11.30 $0.13 $ 0.06 $ 0.19 $(0.13) $(0.01) $(0.14) $11.35
2003 11.29 0.23 (0.00) 0.23 (0.22) -- (0.22) 11.30
2002 10.82 0.37 0.47 0.84 (0.37) -- (0.37) 11.29
2001 (e) 10.53 0.22 0.29 0.51 (0.22) -- (0.22) 10.82
CLASS C (h)
2004 (a) $11.30 $0.13 $ 0.06 $ 0.19 $(0.13) $(0.01) $(0.14) $11.35
2003 11.29 0.22 0.01 0.23 (0.22) -- (0.22) 11.30
2002 (i) 10.84 0.35 0.45 0.80 (0.35) -- (0.35) 11.29
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------
NET EXPENSES EXPENSES
NET ASSETS, INVESTMENT NET OF BEFORE
END OF INCOME (LOSS) WAIVERS/ WAIVERS/ PORTFOLIO
PERIOD ENDED TOTAL PERIOD TO AVERAGE REIMBURSE- REIMBURSE- TURNOVER
SEPTEMBER 30 RETURN+ (IN 000'S) NET ASSETS MENTS(B) MENTS(C) RATE
------------ -------- ----------- ------------- ---------- ---------- ----------
INTERMEDIATE BOND FUND
CLASS AAA
2004 (a) 2.0% $10,384 2.98%(g) 1.01%(g) 1.77%(g) 12%
2003 2.8 12,174 2.70 1.06 1.57 73
2002 8.9 15,157 4.06 1.05 1.69 46
2001 12.7 8,140 4.90 1.07 2.02 77
2000 6.4 6,451 5.16 1.06 1.94 67
1999 (2.4) 6,214 4.82 1.05 1.63 108
CLASS A
2004 (a) 1.9% $ 93 2.88%(g) 1.11%(g) 1.87%(g) 12%
2003 2.8 138 2.60 1.16 1.67 73
2002 8.8 56 3.96 1.15 1.79 46
2001 (f) 3.4 93 4.80(g) 1.17(g) 2.12(g) 77
CLASS B
2004 (a) 1.7% $ 431 2.23%(g) 1.76%(g) 2.52%(g) 12%
2003 2.1 502 1.95 1.81 2.32 73
2002 8.0 229 3.31 1.80 2.44 46
2001 (e) 4.9 23 4.15(g) 1.82(g) 2.77(g) 77
CLASS C (h)
2004 (a) 1.7% $ 47 2.23%(g) 1.76%(g) 2.52%(g) 12%
2003 2.1 46 1.95 1.81 2.32 73
2002 (i) 7.6 50 3.31(g) 1.80(g) 2.44(g) 46
- --------------------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
(a) For the period ended March 31, 2004; unaudited.
(b) The ratios do not include a reduction of expenses for custodian fee credits
on cash balances maintained with the custodian. Including such custodian fee
credits, the expense ratios for the Intermediate Bond Fund Class AAA,
Intermediate Bond Fund Class A, Intermediate Bond Fund Class B and
Intermediate Bond Fund Class C, would be 1.00%, 1.10 %, 1.75% and 1.75%,
respectively, for each period.
(c) During the period, certain fees were reduced and/or reimbursed. If such fee
reductions and/or reimbursements had not occurred, the ratio would have been
as shown.
(d) Per share amounts have been calculated using the monthly average shares
method for fiscal 2001, 2002, 2003 and 2004.
(e) From March 27, 2001 through September 30, 2001, the period through which
Class B Shares were continuously outstanding.
(f) From July 26, 2001 through September 30, 2001, the period through which
Class A Shares were continuously outstanding.
(g) Annualized.
(h) Class C Shares were outstanding for the periods December 15, 2000 through
December 18, 2000, March 21, 2001 through March 26, 2001 and July 18, 2001
through July 24, 2001. Financial Highlights are not presented for Class C
Shares for the fiscal year 2001 as the information is not considered
meaningful.
(i) From October 22, 2001 through September 30, 2002, the period through which
Class C Shares were continuously outstanding.
See accompanying notes to financial statements.
26
THE GABELLI WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
----------------------------------------- ----------------------------------------------------
NET
REALIZED IN EXCESS
NET ASSET NET AND TOTAL NET OF NET
VALUE, INVESTMENT UNREALIZED GAIN FROM NET REALIZED REALIZED
PERIOD ENDED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT GAIN ON GAIN ON TOTAL
SEPTEMBER 30 OF PERIOD (LOSS)(D) INVESTMENTS OPERATIONS INCOME INVESTMENTS INVESTMENTS DISTRIBUTIONS
------------ --------- ---------- --------------- ---------- ---------- ----------- ----------- -------------
SMALLCAP EQUITY FUND
CLASS AAA
2004 (a) $ 8.18 $(0.06) $ 0.58 $ 0.52 -- -- -- --
2003 7.49 (0.08) 0.77 0.69 -- -- -- --
2002 8.86 (0.09) (1.28) (1.37) -- -- -- --
2001 22.10 (0.16) (8.12) (8.28) -- $(4.53) $(0.43)(f) $(4.96)
2000 17.77 (0.27) 5.39 5.12 -- (0.79) -- (0.79)
1999 11.18 (0.12) 6.71 6.59 -- -- -- --
CLASS A
2004 (a) $ 8.18 $(0.07) $ 0.59 $ 0.52 -- -- -- --
2003 7.51 (0.10) 0.77 0.67 -- -- -- --
2002 (h) 9.91 (0.09) (2.31) (2.40) -- -- -- --
CLASS B
2004 (a) $ 8.03 $(0.09) $ 0.58 $ 0.49 -- -- -- --
2003 7.41 (0.13) 0.75 0.62 -- -- -- --
2002 8.83 (0.16) (1.26) (1.42) -- -- -- --
2001 (e) 10.41 (0.10) (1.48) (1.58) -- -- -- --
CLASS C
2004 (a) $ 8.15 $(0.09) $ 0.58 $ 0.49 -- -- -- --
2003 7.47 (0.10) 0.78 0.68 -- -- -- --
2002 (h) 9.91 (0.11) (2.33) (2.44) -- -- -- --
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------
NET EXPENSES EXPENSES
NET NET ASSETS, INVESTMENT NET OF BEFORE
ASSET VALUE, END OF INCOME (LOSS) WAIVERS/ WAIVERS/ PORTFOLIO
PERIOD ENDED END OF TOTAL PERIOD TO AVERAGE REIMBURSE- REIMBURSE- TURNOVER
SEPTEMBER 30 PERIOD RETURN+ (IN 000'S) NET ASSETS MENTS(B) MENTS(C) RATE
------------ ------------ ------- ----------- ------------- ---------- ---------- ----------
SMALLCAP EQUITY FUND
CLASS AAA
2004 (a) $ 8.70 6.4% $13,849 (1.32)%(g) 1.52%(g) 2.21%(g) 100%
2003 8.18 9.2 15,721 (1.03) 1.53 1.99 329
2002 7.49 (15.5) 16,212 (0.98) 1.56 1.76 202
2001 8.86 (43.2) 21,768 (1.27) 1.59 1.74 184
2000 22.10 29.4 34,911 (1.39) 1.58 1.63 218
1999 17.77 58.9 20,361 (0.88) 1.62 1.72 178
CLASS A
2004 (a) $ 8.70 6.4% $ 118 (1.57)%(g) 1.77%(g) 2.46%(g) 100%
2003 8.18 8.9 112 (1.28) 1.78 2.24 329
2002 (h) 7.51 (24.2) 71 (1.23)(g) 1.80(g) 2.01(g) 202
CLASS B
2004 (a) $ 8.52 6.1% $ 44 (2.07)%(g) 2.27%(g) 2.96%(g) 100%
2003 8.03 8.4 65 (1.78) 2.28 2.74 329
2002 7.41 (16.1) 31 (1.73) 2.30 2.51 202
2001 (e) 8.83 (15.2) 31 (2.02)(g) 2.34(g) 2.49(g) 184
CLASS C
2004 (a) $ 8.64 6.0% $ 117 (2.07)%(g) 2.27%(g) 2.96%(g) 100%
2003 8.15 9.1 111 (1.78) 2.28 2.74 329
2002 (h) 7.47 (24.6) -- (1.73)(g) 2.30(g) 2.51(g) 202
- --------------------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
(a) For the period ended March 31, 2004; unaudited.
(b) The ratios do not include a reduction of expenses for custodian fee credits
on cash balances maintained with the custodian. Including such custodian fee
credits, the expense ratios for the SmallCap Equity Fund Class AAA, SmallCap
Equity Fund Class A, SmallCap Equity Fund Class B, and SmallCap Equity Fund
Class C would be 1.50%, 1.75%, 2.25% and 2.25%, respectively, for each
period.
(c) During the period, certain fees were reduced and/or reimbursed. If such fee
reductions and/or reimbursements had not occurred, the ratio would have been
as shown.
(d) Per share amounts have been calculated using the monthly average shares
method for fiscal 2001, 2002, 2003 and 2004.
(e) From March 27, 2001 through September 30, 2001, the period through which
Class B Shares were continuously outstanding.
(f) Return of Capital.
(g) Annualized.
(h) From November 26, 2001 to September 30, 2002, the period through which Class
A Shares and Class C Shares were continuously outstanding.
See accompanying notes to financial statements.
27
THE GABELLI WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
----------------------------------------- --------------------------------------
NET
REALIZED
NET ASSET AND TOTAL NET NET
VALUE, NET UNREALIZED GAIN FROM NET REALIZED ASSET VALUE,
PERIOD ENDED BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL END OF
SEPTEMBER 30 OF PERIOD INCOME(E) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS PERIOD
------------ --------- ---------- --------------- ---------- ---------- ----------- ------------- ------------
REALTY FUND
CLASS AAA
2004 (a) $11.87 $0.30 $2.23 $ 2.53 $(0.25) -- $(0.25) $14.15
2003 10.03 0.38 1.85 2.23 (0.39) -- (0.39) 11.87
2002 9.76 0.43 0.31 0.74 (0.47) -- (0.47) 10.03
2001 9.10 0.40 0.62 1.02 (0.36) -- (0.36) 9.76
2000 7.61 0.38 1.46 1.84 (0.35) -- (0.35) 9.10
1999 8.43 0.22 (0.81) (0.59) (0.23) -- (0.23) 7.61
CLASS A
2004 (a) $12.00 $0.28 $2.25 $ 2.53 $(0.17) -- $(0.17) $14.36
2003 10.04 0.38 1.85 2.23 (0.27) -- (0.27) 12.00
2002 9.76 0.41 0.30 0.71 (0.43) -- (0.43) 10.04
2001 (f) 9.24 0.02 0.70 0.72 (0.20) -- (0.20) 9.76
CLASS B
2004 (a) $12.04 $0.25 $2.28 $ 2.53 $(0.20) -- $(0.20) $14.37
2003 10.07 0.27 1.91 2.18 (0.21) -- (0.21) 12.04
2002 (g) 9.90 0.36 0.22 0.58 (0.41) -- (0.41) 10.07
CLASS C
2004 (a) $12.32 $0.24 $2.35 $ 2.59 $(0.20) -- $(0.20) $14.71
2003 10.26 0.32 1.99 2.31 (0.25) -- (0.25) 12.32
2002 (g) 9.90 0.09 0.49 0.58 (0.22) -- (0.22) 10.26
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------
NET EXPENSES EXPENSES
NET ASSETS, INVESTMENT NET OF BEFORE
END OF INCOME (LOSS) WAIVERS/ WAIVERS/ PORTFOLIO
PERIOD ENDED TOTAL PERIOD TO AVERAGE REIMBURSE- REIMBURSE- TURNOVER
SEPTEMBER 30 RETURN+ (IN 000'S) NET ASSETS MENTS(B) MENTS(C) RATE
------------ ------- ----------- ------------- ---------- ---------- ----------
REALTY FUND
CLASS AAA
2004 (a) 21.5% $18,213 4.63%(d) 1.55%(d) 1.91%(d) 10%
2003 22.8 13,923 3.70 1.56 2.05 33
2002 7.5 9,122 4.42 1.59 2.61 47
2001 11.4 3,526 4.27 1.64 4.51 64
2000 24.9 2,845 4.52 1.73 4.14 74
1999 (5.7) 1,784 4.32 1.60 3.68 55
CLASS A
2004 (a) 21.3% $ 6 4.38%(d) 1.80%(d) 2.16%(d) 10%
2003 22.6 10 3.45 1.81 2.30 33
2002 7.2 3 4.17 1.84 2.86 47
2001 (f) 7.8 3 4.02(d) 1.90(d) 4.77(d) 64
CLASS B
2004 (a) 21.2% $ 2 3.88%(d) 2.30%(d) 2.66%(d) 10%
2003 22.0 2 2.95 2.31 2.80 33
2002 (g) 5.8 10 3.67(d) 2.34(d) 3.36(d) 47
CLASS C
2004 (a) 21.1% $ 5 3.88%(d) 2.30%(d) 2.66%(d) 10%
2003 22.8 4 2.95 2.31 2.80 33
2002 (g) 5.8 0.1 3.67(d) 2.34(d) 3.36(d) 47
- --------------------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
(a) For the period ended March 31, 2004; unaudited.
(b) The ratios do not include a reduction of expenses for custodian fee credits
on cash balances maintained with the custodian. Including such custodian fee
credits, the expense ratios for the Realty Fund Class AAA, Realty Fund Class
A, Realty Fund Class B and Realty Fund Class C would be 1.50%, 1.75%, 2.25%
and 2.25%, respectively, for each period.
(c) During the period, certain fees were reduced and/or reimbursed. If such fee
reductions and/or reimbursements had not occurred, the ratio would have been
as shown.
(d) Annualized.
(e) Per share amounts have been calculated using the monthly average shares
outstanding method for fiscal 2001, 2002, 2003 and 2004.
(f) From May 9, 2001 through September 30, 2001, the period through which Class
A Shares were continuously outstanding.
(g) From November 26, 2001 through September 30, 2002, the period through which
Class B and C Shares were continuously outstanding.
See accompanying notes to financial statements.
28
THE GABELLI WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
----------------------------------------- --------------------------------------
NET
REALIZED
NET ASSET AND TOTAL NET NET
VALUE, NET UNREALIZED GAIN FROM NET REALIZED ASSET VALUE,
PERIOD ENDED BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL END OF
SEPTEMBER 30 OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS PERIOD
------------ --------- ---------- --------------- ---------- ---------- ----------- ------------- ------------
MIGHTY MITES SM FUND
CLASS AAA
2004 (a) $13.42 $(0.02) $ 2.00 $ 1.98 -- $(0.16) $(0.16) $15.24
2003 11.29 (0.03) 2.25 2.22 $(0.04) (0.05) (0.09) 13.42
2002 10.99 0.03 0.37 0.40 (0.10) -- (0.10) 11.29
2001 14.00 0.12 (0.59) (0.47) (0.08) (2.46) (2.54) 10.99
2000 12.91 0.05 2.76 2.81 (0.10) (1.62) (1.72) 14.00
1999 9.70 0.10 3.20 3.30 (0.09) -- (0.09) 12.91
CLASS A
2004 (a) $13.46 $(0.04) $ 2.01 $ 1.97 -- $(0.16) $(0.16) $15.27
2003 11.36 (0.05) 2.26 2.21 $(0.06) (0.05) (0.11) 13.46
2002 (j) 10.97 (0.01) 0.40 0.39 -- -- -- 11.36
2001 14.00 0.09 (0.59) (0.50) (0.07) (2.46) (2.53) 10.97
2000 (e) 13.48 0.00(f) 0.52 0.52 -- -- -- 14.00
CLASS B
2004 (a) $13.30 $(0.08) $ 1.99 $ 1.91 -- $(0.16) $(0.16) $15.05
2003 11.24 (0.11) 2.22 2.11 -- (0.05) (0.05) 13.30
2002 10.96 (0.02) 0.34 0.32 $(0.04) -- (0.04) 11.24
2001 (h) 11.92 0.00(f) (0.96) (0.96) -- -- -- 10.96
CLASS C
2004 (a) $13.25 $(0.07) $ 1.97 $ 1.90 -- $(0.16) $(0.16) $14.99
2003 11.19 (0.12) 2.23 2.11 -- (0.05) (0.05) 13.25
2002 10.98 (0.06) 0.37 0.31 $(0.10) -- (0.10) 11.19
2001 (i) 12.25 0.00(f) (1.27) (1.27) -- -- -- 10.98
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------
NET EXPENSES EXPENSES
NET ASSETS, INVESTMENT NET OF BEFORE
END OF INCOME (LOSS) WAIVERS/ WAIVERS/ PORTFOLIO
PERIOD ENDED TOTAL PERIOD TO AVERAGE REIMBURSE- REIMBURSE- TURNOVER
SEPTEMBER 30 RETURN+ (IN 000'S) NET ASSETS MENTS(B) MENTS(C) RATE
------------ ------- ----------- ------------- ---------- ---------- ----------
MIGHTY MITES SM FUND
CLASS AAA
2004 (a) 14.8% $63,265 (0.30)%(d) 1.50%(d) 1.63%(d) 11%
2003 19.8 51,138 (0.21) 1.50 1.66 14
2002 3.6 31,103 0.27 1.50 1.78 18
2001 (2.8) 17,404 0.98 1.52 2.20 66
2000 23.0 15,165 0.38 1.50 2.01 66
1999 34.2 10,205 0.94 1.01 2.32 88
CLASS A
2004 (a) 14.7% $ 39 (0.55)%(d) 1.75%(d) 1.89%(d) 11%
2003 19.7 33 (0.46) 1.75 1.91 14
2002 (j) 3.6 1 0.02 1.75 2.03 18
2001 (3.1) 47 0.73 1.77 2.45 66
2000 (e) 3.9 49 0.13(d) 1.75(d) 2.26(d) 66
CLASS B
2004 (a) 14.4% $ 480 (1.05)%(d) 2.25%(d) 2.39%(d) 11%
2003 18.9 517 (0.96) 2.25 2.41 14
2002 2.9 4 (0.48) 2.25 2.53 18
2001 (h) (8.1) 4 0.23(d) 2.27(d) 2.95(d) 66
CLASS C
2004 (a) 14.4% $ 364 (1.05)%(d) 2.25%(d) 2.39%(d) 11%
2003 19.0 99 (0.96) 2.25 2.41 14
2002 2.8 59 (0.48) 2.25 2.53 18
2001 (i) (10.4) 19 0.23(d) 2.27(d) 2.95(d) 66
- --------------------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
(a) For the period ended March 31, 2004; unaudited.
(b) The ratios do not include a reduction of expenses for custodian fee credits
on cash balances maintained with the custodian. Including such custodian fee
credits, the expense ratios for the Mighty Mites Fund Class AAA, Mighty
Mites Fund Class A, Mighty Mites Fund Class B, and Mighty Mites Fund Class C
would be 1.50%, 1.75%, 2.25%, and 2.25%, respectively, for each period.
(c) During the period, certain fees were reduced and/or reimbursed. If such fee
reductions and/or reimbursements had not occurred, the ratio would have been
as shown.
(d) Annualized.
(e) Period from June 15, 2000 (offering date of Class A) to September 30, 2000.
(f) Amount represents less than $0.005 per share.
(g) Per share amounts have been calculated using the monthly average shares
outstanding method for fiscal 2000, 2001, 2002, 2003 and 2004.
(h) From June 6, 2001 through September 30, 2001, the period through which Class
B Shares were continuously outstanding.
(i) From August 3, 2001 through September 30, 2001, the period through which
Class C Shares were continuously outstanding.
(j) From November 26, 2001 through September 30, 2002, the period through which
Class A Shares were continuously outstanding. From October 1, 2001 through
November 25, 2001, no Class A Shares were outstanding.
See accompanying notes to financial statements.
29
- --------------------------------------------------------------------------------
GABELLI FUNDS AND YOUR PERSONAL PRIVACY
---------------------------------------------------------------------------
WHO ARE WE?
The Gabelli Funds are investment companies registered with the Securities
and Exchange Commission under the Investment Company Act of 1940. We are
managed by Gabelli Funds LLC, Gabelli Advisers, Inc. and Gabelli Fixed
Income, LLC, which are affiliated with Gabelli Asset Management Inc.
Gabelli Asset Management is a publicly-held company that has subsidiaries
that provide investment advisory or brokerage services for a variety of
clients.
WHAT KIND OF NON-PUBLIC INFORMATION DO WE COLLECT ABOUT YOU IF YOU BECOME A
GABELLI CUSTOMER?
If you apply to open an account directly with us, you will be giving us
some non-public information about yourself. The non-public information we
collect about you is:
o 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.
o INFORMATION ABOUT YOUR TRANSACTIONS WITH US, ANY TRANSACTIONS WITH OUR
AFFILIATES AND TRANSACTIONS WITH THE ENTITIES WE HIRE TO PROVIDE
SERVICES TO YOU. This would include information about the shares that
you buy or redeem, and the deposits and withdrawals that you make. If
we hire someone else to provide services--like a transfer agent--we
will also have information about the transactions that you conduct
through them.
WHAT INFORMATION DO WE DISCLOSE AND TO WHOM DO WE DISCLOSE IT?
We do not disclose any non-public personal information about our customers
or former customers to anyone, other than our affiliates, our service
providers who need to know such information and as otherwise permitted by
law. If you want to find out what the law permits, you can read the privacy
rules adopted by the Securities and Exchange Commission. They are in volume
17 of the Code of Federal Regulations, Part 248. The Commission often posts
information about its regulations on its web site, www.sec.gov.
WHAT DO WE DO TO PROTECT YOUR PERSONAL INFORMATION?
We restrict access to non-public personal information about you to the
people who need to know that information in order to provide services to
you or the Fund and to ensure that we are complying with the laws governing
the securities business. We maintain physical, electronic, and procedural
safeguards to keep your personal information confidential.
- --------------------------------------------------------------------------------
THE GABELLI WESTWOOD FUNDS
=================================
One Corporate Center
Rye, New York 10580-1422
GENERAL AND ACCOUNT INFORMATION:
800-GABELLI [800-422-3554]
fax: 914-921-5118
website: www.gabelli.com
e-mail: info@gabelli.com
Board of Trustees
Susan M. Byrne James P. Conn
CHAIRMAN AND CEO FORMER CHIEF INVESTMENT OFFICER
WESTWOOD HOLDINGS FINANCIAL SECURITY ASSURANCE
GROUP HOLDINGS LTD.
Karl Otto Pohl Werner J. Roeder, MD
FORMER PRESIDENT VICE PRESIDENT/MEDICAL AFFAIRS
DEUTCHE BUNDESBANK LAWRENCE HOSPITAL CENTER
Anthony J. Colavita Salvatore J. Zizza
ATTORNEY-AT-LAW CHAIRMAN
ANTHONY J. COLAVITA, P.C. HALLMARK ELECTRICAL SUPPLIES CORP.
Officers
Susan M. Byrne Bruce N. Alpert
PRESIDENT AND CHIEF VICE PRESIDENT AND TREASURER
INVESTMENT OFFICER
James E. McKee Patricia R. Fraze
SECRETARY VICE PRESIDENT
INVESTMENT ADVISER
Gabelli Advisers, Inc.
INVESTMENT SUB-ADVISER
Westwood Management Corporation
DISTRIBUTOR
Gabelli & Company, Inc.
CUSTODIAN
The Bank of New York
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
- --------------------------------------------------------------------------------
This report is submitted for the information of the shareholders of The Gabelli
Westwood Funds. It is not authorized for distribution to prospective investors
unless preceded or accompanied by an effective prospectus.
- --------------------------------------------------------------------------------
GABWWQ104SR
THE
GABELLI
WESTWOOD
FUNDS
EQUITY FUND
BALANCED FUND
INTERMEDIATE BOND FUND
SMALLCAP EQUITY FUND
REALTY FUND
MIGHTY MITES SM FUND
SEMI-ANNUAL REPORT
MARCH 31, 2004
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT FUND
AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Board of Trustees has a Nominating Committee comprised of four
"non-interested" (as such term is defined by the Investment Company Act of 1940,
as amended) Trustees, namely Anthony J. Colavita, Vincent D. Enright, John J.
Parker and Anthonie C. van Ekris. The Nominating Committee is responsible for
identifying individuals believed to be qualified to become Board members in the
event that a position is vacated or created. The Nominating Committee will
consider Trustee candidates recommended by shareholders. In considering
candidates submitted by shareholders, the Nominating Committee will take into
consideration the needs of the Board of Trustees, the qualifications of the
candidate and the interests of shareholders. The Nominating Committee may also
take into consideration the number of shares held by the recommending
shareholder and the length of time that such shares have been held. To have a
candidate considered by the Nominating Committee, a shareholder must submit the
recommendation in writing and must include the following information:
o The name of the shareholder and evidence of the person's ownership of
shares of the Trust, including the number of shares owned and the length
of time of ownership;
o The name of the candidate, the candidate's resume or a listing of his or
her qualifications to be a Trustee of the Trust and the person's consent
to be named as a Trustee if selected by the Nominating Committee and
nominated by the Board of Trustees; and
o If requested by the Nominating Committee, a completed and signed
Trustees questionnaire.
The shareholder recommendation and information described above must be sent to
the Trust's Secretary c/o Gabelli Funds, LLC, James E. McKee and must be
received by the Secretary no less than 120 days prior to the anniversary date of
the Trust's most recent annual meeting of shareholders or, if the meeting has
moved by more than 30 days, a reasonable amount of time before the meeting.
The Nominating Committee believes that the minimum qualifications for serving as
a Trustee of the Trust are that the individual demonstrate, by significant
accomplishment in his or her field, an ability to make a meaningful contribution
to the Board of Trustees' oversight of the business and affairs of the Trust and
have an impeccable record and reputation for honest and ethical conduct in both
his or her professional and personal activities. In addition, the Nominating
Committee examines a candidate's specific experiences and skills, time
availability in light of other commitments, potential conflicts of interest and
independence from management and the Trust. The Nominating Committee also seeks
to have the Board of Trustees represent a diversity of backgrounds and
experience.
The Trust's Nominating Committee has not adopted a charter. In the event that a
charter is adopted in the future, it will be available at that time on the
Trust's website (www.gabelli.com).
ITEM 10. 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 Fund 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 last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
(a)(1) Not applicable.
(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 yet effective.
(b) Certifications pursuant to Rule 30a-2(a) 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 Fund Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) The Gabelli Westwood Funds
By (Signature and Title)* /s/ Bruce N. Alpert
-----------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date 6/8/2004
----------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Fund 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
& Principal Financial Officer
Date 6/8/2004
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.