UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04494
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The Gabelli Asset Fund
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(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
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(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: December 31, 2004
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Date of reporting period: June 30, 2004
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 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 ASSET FUND
SEMI-ANNUAL REPORT
JUNE 30, 2004
TO OUR SHAREHOLDERS,
During the second quarter of 2004, the Gabelli Asset Fund (the "Fund")
rose 1.9%, while the Standard & Poor's ("S&P") 500 Index and the Dow Jones
Industrials Average rose 1.7% and 1.3%, respectively. For the six-month period
ended June 30, 2004, the Fund was up 5.0% versus gains of 3.4% and 0.9% for the
S&P 500 Index and the Dow Jones Industrial Average, respectively.
Enclosed are the financial statements and the investment portfolio as of
June 30, 2004.
COMPARATIVE RESULTS
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AVERAGE ANNUAL RETURNS THROUGH JUNE 30, 2004 (A)
YEAR TO SINCE
QUARTER DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR 15 YEAR INCEPTION (B)
- ----------------------------------------------------------------------------------------------------------------------
Gabelli Asset Fund Class AAA .. 1.85% 4.96% 22.95% 4.02% 4.82% 13.29% 11.91% 14.18%
S&P 500 Index ................. 1.72 3.44 19.10 (0.69) (2.20) 11.82 11.31 11.88
Dow Jones Industrial Average .. 1.26 0.87 18.68 1.92 0.92 13.43 12.89 13.34
Nasdaq Composite Index ........ 2.69 2.22 26.19 (1.78) (5.28) 11.24 10.88 9.95
Class A ....................... 1.85 4.94 22.92 4.01 4.82 13.29 11.90 14.18
(4.01)(c) (1.09)(c) 15.85(c) 1.98(c) 3.58(c) 12.62(c) 11.46(c) 13.80(c)
Class B ....................... 1.64 4.50 22.40 3.86 4.73 13.24 11.87 14.16
(3.36)(d) (0.50)d) 17.40(d) 2.93(d) 4.56(d) 13.24(d) 11.87(d) 14.16(d)
Class C ....................... 1.66 4.55 22.47 3.88 4.74 13.25 11.88 14.16
0.66(d) 3.55(d) 21.47(d) 3.88(d) 4.74(d) 13.25(d) 11.88(d) 14.16(d)
(a) Returns represent past performance and do not guarantee future results.
Total returns and average annual returns reflect changes in share price
and reinvestment of dividends and are net of expenses. Investment returns
and the principal value of an investment will fluctuate. When shares are
redeemed, they may be worth more or less than their original cost. The Dow
Jones Industrial Average is an unmanaged index of 30 large industrial
stocks. The S&P 500 Index and the Nasdaq Composite Index are unmanaged
indicators of stock market performance. Dividends are considered
reinvested (except for the Nasdaq Composite Index). Performance for
periods less than one year is not annualized. 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. The Class AAA Shares' net asset values are used to
calculate performance for the periods prior to the issuance of Class A
Shares, Class B Shares and Class C Shares on December 31, 2003. The actual
performance for the Class B and Class C Shares would have been lower due
to the additional expenses associated with these classes of shares.
(b) Performance is calculated from inception of Class AAA Shares on March 3,
1986.
(c) Includes the effect of the maximum 5.75% sales charge at the beginning of
the period.
(d) Includes the effect of the applicable contingent deferred sales charge at
the end of the period shown for Class B and Class C Shares, respectively.
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We have separated the portfolio manager's commentary from the financial
statements and investment portfolio due to new corporate governance
regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done this to
ensure that the content of the portfolio manager's commentary is unrestricted.
The financial statements and investment portfolio are mailed separately. Both
the commentary and the financial statements, including the portfolio of
investments, will be available on our website at www.gabelli.com/funds.
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A description of the Fund's proxy voting policies and procedures and how the
Fund voted proxies relating to portfolio securities during the most recent
12-month period ended June 30, 2004 are available (i) without charge, upon
request, by calling 800-GABELLI (800-422-3554); (ii) by writing to The Gabelli
Funds at One Corporate Center, Rye, NY 10580-1422; and (iii) on the Securities
and Exchange Commission's website at www.sec.gov.
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THE GABELLI ASSET FUND
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- -----
COMMON STOCKS -- 94.8%
AEROSPACE -- 0.8%
75,000 Boeing Co. .................. $ 2,587,078 $ 3,831,750
90,000 Lockheed Martin Corp. ....... 2,448,864 4,687,200
160,000 Northrop Grumman Corp. ...... 4,942,981 8,592,000
-------------- --------------
9,978,923 17,110,950
-------------- --------------
AGRICULTURE -- 0.8%
50,000 Agrium Inc. ................. 663,164 727,500
800,000 Archer-Daniels-Midland Co. .. 11,058,748 13,424,000
15,000 Delta & Pine Land Co. ....... 260,292 329,250
40,529 Monsanto Co. ................ 647,781 1,560,367
12,000 Potash Corp. of
Saskatchewan Inc. ......... 997,442 1,162,800
17,000 Terra Industries Inc.+ ...... 103,572 95,710
-------------- --------------
13,730,999 17,299,627
-------------- --------------
AUTOMOTIVE -- 1.7%
185,000 General Motors Corp. ........ 8,309,227 8,619,150
555,000 Navistar International Corp.+ 10,309,347 21,511,800
45,000 PACCAR Inc. ................. 522,021 2,609,550
30,000 Volkswagen AG ............... 1,246,577 1,267,261
-------------- --------------
20,387,172 34,007,761
-------------- --------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 4.5%
110,000 BorgWarner Inc. ............. 2,079,060 4,814,700
122,000 CLARCOR Inc. ................ 1,741,944 5,587,600
570,000 Dana Corp. .................. 8,891,297 11,172,000
210,000 Federal-Mogul Corp.+ ........ 467,782 60,900
650,000 GenCorp Inc. ................ 2,404,331 8,703,500
500,000 Genuine Parts Co. ........... 12,026,034 19,840,000
290,000 Johnson Controls Inc. ....... 5,174,020 15,480,200
145,000 Midas Inc.+ ................. 1,808,827 2,523,000
300,000 Modine Manufacturing Co. .... 7,078,060 9,555,000
210,000 Scheib (Earl) Inc.+ ......... 1,429,490 667,800
205,000 Standard Motor Products Inc. 3,007,686 3,019,650
65,000 Superior Industries
International Inc. ........ 1,642,639 2,174,250
360,000 Tenneco Automotive Inc.+ .... 2,444,691 4,762,800
100,000 TransPro Inc.+ .............. 788,321 576,000
210,000 TRW Automotive
Holdings Corp.+ ........... 5,607,368 3,958,500
-------------- --------------
56,591,550 92,895,900
-------------- --------------
AVIATION: PARTS AND SERVICES -- 2.0%
75,000 Aviall Inc.+ ................ 750,124 1,425,750
225,000 Curtiss-Wright Corp. ........ 1,378,135 12,642,750
67,000 Curtiss-Wright Corp., Cl. B . 2,209,093 3,602,590
220,000 Fairchild Corp., Cl. A+ ..... 1,361,529 941,600
100,000 Kaman Corp., Cl. A .......... 1,413,770 1,399,000
170,000 Precision Castparts Corp. ... 4,207,013 9,297,300
109,000 Sequa Corp., Cl. A+ ......... 4,666,598 6,373,230
104,000 Sequa Corp., Cl. B+ ......... 5,329,579 6,214,000
-------------- --------------
21,315,841 41,896,220
-------------- --------------
MARKET
SHARES COST VALUE
------ ---- -----
BROADCASTING -- 1.1%
20,000 Corus Entertainment Inc.,
Cl. B ..................... $ 64,982 $ 387,097
66,100 Fisher Communications Inc.+ . 3,730,142 3,326,813
230,000 Granite Broadcasting Corp.+ . 1,109,343 161,000
310,000 Gray Television Inc. ........ 3,936,811 4,305,900
10,000 Gray Television Inc., Cl. A . 109,420 125,000
170,000 Liberty Corp. ............... 6,268,553 7,981,500
75,000 Lin TV Corp., Cl. A+ ........ 1,703,027 1,590,000
190,000 Paxson Communications
Corp.+ .................... 1,674,514 617,500
400,000 Television Broadcasts Ltd. .. 1,815,551 1,712,864
250,000 Young Broadcasting Inc.,
Cl. A+ .................... 5,518,866 3,287,500
-------------- --------------
25,931,209 23,495,174
-------------- --------------
BUSINESS SERVICES -- 1.2%
480,000 Cendant Corp. ............... 4,891,205 11,750,400
50,000 ChoicePoint Inc.+ ........... 1,773,215 2,283,000
200,000 Ecolab Inc. ................. 1,876,865 6,340,000
10,000 Imation Corp. ............... 203,344 426,100
66,500 Landauer Inc. ............... 412,456 2,969,890
119,000 Nashua Corp.+ ............... 1,745,996 1,153,110
-------------- --------------
10,903,081 24,922,500
-------------- --------------
CABLE AND SATELLITE -- 3.4%
2,030,000 Cablevision Systems Corp.,
Cl. A+ .................... 21,325,960 39,889,500
30,000 Charter Communications
Inc., Cl. A+ .............. 138,876 117,600
300,000 Comcast Corp., Cl. A+ ....... 8,368,051 8,409,000
40,000 Comcast Corp., Cl. A, Special+ 306,462 1,104,400
270,000 DIRECTV Group Inc.+ ......... 5,351,062 4,617,000
232,500 Liberty Media International
Inc., Cl. A+ .............. 2,400,271 8,625,750
60,000 Shaw Communications Inc.,
Cl. B ..................... 164,952 1,001,082
80,000 Shaw Communications Inc.,
Cl. B, Non-Voting ........ 312,647 1,344,800
608,886 UnitedGlobalCom Inc., Cl. A+ 4,687,131 4,420,512
-------------- --------------
43,055,412 69,529,644
-------------- --------------
CLOSED-END FUNDS -- 0.1%
80,734 Royce Value Trust Inc. ...... 942,452 1,421,726
-------------- --------------
COMMUNICATIONS EQUIPMENT -- 1.5%
460,000 Agere Systems Inc., Cl. B+ .. 1,625,270 989,000
190,000 Andrew Corp.+ ............... 716,456 3,801,900
600,000 Corning Inc.+ ............... 4,374,877 7,836,000
820,000 Lucent Technologies Inc.+ ... 4,582,537 3,099,600
300,000 Motorola Inc. ............... 3,094,981 5,475,000
240,000 Nortel Networks Corp.+ ...... 1,202,804 1,197,600
350,000 Thomas & Betts Corp. ........ 6,693,992 9,530,500
-------------- --------------
22,290,917 31,929,600
-------------- --------------
See accompanying notes to financial statements.
2
THE GABELLI ASSET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 2004 (UNAUDITED)
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MARKET
SHARES COST VALUE
------ ---- -----
COMMON STOCKS (CONTINUED)
COMPUTER HARDWARE -- 0.0%
60,000 Maxtor Corp.+ ............... $ 554,568 $ 397,800
-------------- --------------
COMPUTER SOFTWARE AND SERVICES -- 0.2%
12,000 Computer Associates
International Inc. ........ 169,600 336,720
25,000 Electronic Data
Systems Corp. ............. 349,322 478,750
80,000 EMC Corp.+ .................. 1,126,229 912,000
48,000 Jupitermedia Corp.+ ......... 241,258 679,680
45,000 PeopleSoft Inc.+ ............ 836,789 832,500
26,026 Telecom Italia Media SpA+ ... 26,184 10,703
-------------- --------------
2,749,382 3,250,353
-------------- --------------
CONSUMER PRODUCTS -- 5.3%
40,500 Alberto-Culver Co. .......... 1,073,604 2,030,670
12,000 Altria Group Inc. ........... 360,636 600,600
11,000 Christian Dior SA ........... 307,335 711,314
195,000 Church & Dwight Co. Inc. .... 1,923,569 8,927,100
1,000 Clorox Co. .................. 30,050 53,780
60,000 Department 56 Inc.+ ......... 651,832 924,000
95,000 Eastman Kodak Co. ........... 2,554,763 2,563,100
310,000 Energizer Holdings Inc.+ .... 5,315,965 13,950,000
110,000 Fortune Brands Inc. ......... 2,536,232 8,297,300
290,000 Gallaher Group plc, ADR ..... 4,661,436 14,036,000
290,000 Gillette Co. ................ 9,214,691 12,296,000
3,000 Givaudan SA ................. 1,028,013 1,736,665
38,000 Harley-Davidson Inc. ........ 95,713 2,353,720
200,000 Mattel Inc. ................. 2,972,356 3,650,000
50,000 Maytag Corp. ................ 1,333,241 1,225,500
68,000 National Presto
Industries Inc. ........... 2,314,244 2,803,640
370,000 Procter & Gamble Co. ........ 12,802,755 20,142,800
1,000,000 Swedish Match AB ............ 10,327,823 10,221,759
10,000 Syratech Corp.+ ............. 2,000 4,050
140,000 Wolverine World Wide Inc. ... 1,953,224 3,675,000
-------------- --------------
61,459,482 110,202,998
-------------- --------------
CONSUMER SERVICES -- 1.6%
800 eBay Inc.+ .................. 24,652 73,560
850,000 InterActiveCorp.+ ........... 6,584,957 25,619,000
298,650 Rollins Inc. ................ 3,453,596 6,871,937
-------------- --------------
10,063,205 32,564,497
-------------- --------------
DIVERSIFIED INDUSTRIAL -- 5.5%
145,400 Acuity Brands Inc. .......... 2,380,500 3,925,800
5,000 Anixter International Inc. .. 45,044 170,150
180,000 Cooper Industries Ltd., Cl. A 7,326,626 10,693,800
425,000 Crane Co. ................... 6,646,604 13,340,750
95,000 Gardner Denver Inc.+ ........ 1,387,900 2,650,500
250,000 GATX Corp. .................. 5,594,297 6,800,000
160,000 General Electric Co. ........ 5,068,550 5,184,000
240,000 Greif Inc., Cl. A ........... 5,453,716 10,140,000
30,000 Harbor Global Co. Ltd.+ ..... 52,965 285,000
MARKET
SHARES COST VALUE
------ ---- -----
425,000 Honeywell International Inc. $ 13,730,962 $ 15,567,750
300,000 ITT Industries Inc. ......... 9,410,611 24,900,000
150,000 Katy Industries Inc.+ ....... 1,369,925 733,500
320,000 Lamson & Sessions Co.+ ...... 1,748,797 2,572,800
40,000 MagneTek Inc.+ .............. 309,670 333,600
225,000 Myers Industries Inc. ....... 1,557,014 3,172,500
75,000 Pentair Inc. ................ 1,017,343 2,523,000
80,000 Smiths Group plc ............ 880,176 1,083,022
155,000 Thomas Industries Inc. ...... 1,971,325 5,146,000
75,000 Trinity Industries Inc. ..... 931,715 2,384,250
38,000 Tyco International Ltd. ..... 519,098 1,259,320
-------------- --------------
67,402,838 112,865,742
-------------- --------------
ELECTRONICS -- 1.0%
2,400 Fargo Electronics+ .......... 17,016 26,664
3,000 Hitachi Ltd., ADR ........... 172,200 208,770
13,000 Kyocera Corp., ADR .......... 448,062 1,115,400
25,000 Molex Inc., Cl. A ........... 719,620 682,000
40,000 Samsung Electronics Co.
Ltd., GDR (a) ............. 7,538,426 8,256,168
138,000 Sony Corp., ADR ............. 5,468,915 5,250,900
210,000 Texas Instruments Inc. ...... 5,357,155 5,077,800
-------------- --------------
19,721,394 20,617,702
-------------- --------------
ENERGY AND UTILITIES -- 6.0%
150,000 AES Corp.+ .................. 576,828 1,489,500
85,000 AGL Resources Inc. .......... 1,468,710 2,469,250
150,000 Allegheny Energy Inc.+ ...... 1,510,942 2,311,500
235,000 BP plc, ADR ................. 6,274,016 12,588,950
250,000 Burlington Resources Inc. ... 4,842,969 9,045,000
25,000 CH Energy Group Inc. ........ 1,040,745 1,161,000
165,000 ChevronTexaco Corp. ......... 9,189,420 15,528,150
95,000 ConocoPhillips .............. 5,513,340 7,247,550
20,000 Constellation Energy
Group Inc. ................ 484,262 758,000
62,000 Devon Energy Corp. .......... 1,695,494 4,092,000
75,000 DPL Inc. .................... 1,506,159 1,456,500
20,000 DTE Energy Co. .............. 832,127 810,800
485,000 Duke Energy Corp. ........... 8,899,750 9,840,650
150,000 Duquesne Light Holdings Inc. 2,292,412 2,896,500
35,000 Edison International ........ 593,330 894,950
240,000 El Paso Corp. ............... 1,975,708 1,891,200
286,700 El Paso Electric Co.+ ....... 3,312,006 4,426,648
160,000 Energy East Corp. ........... 3,287,340 3,880,000
55,000 EOG Resources Inc. .......... 503,773 3,284,050
310,000 Exxon Mobil Corp. ........... 6,624,170 13,767,100
8,000 FPL Group Inc. .............. 463,741 511,600
31,625 GlobalSantaFe Corp. ......... 743,538 838,063
10,000 Halliburton Co. ............. 104,525 302,600
52,000 Kerr-McGee Corp. ............ 2,858,369 2,796,040
200,000 Mirant Corp.+ ............... 912,239 71,800
180,000 NiSource Inc. (SAILS)+ ...... 360,000 453,600
200,000 Northeast Utilities ......... 3,859,076 3,894,000
See accompanying notes to financial statements.
3
THE GABELLI ASSET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 2004 (UNAUDITED)
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MARKET
SHARES COST VALUE
------ ---- -----
COMMON STOCKS (CONTINUED)
ENERGY AND UTILITIES (CONTINUED)
100,000 Progress Energy Inc., CVO+ .. $ 52,000 $ 36,000
30,000 Royal Dutch Petroleum Co. ... 1,407,418 1,550,100
67,500 SJW Corp. ................... 2,210,933 2,295,000
325,000 Southwest Gas Corp. ......... 5,939,311 7,842,250
58,000 TXU Corp. ................... 1,071,021 2,349,580
12,000 UIL Holdings Corp. .......... 516,834 584,280
-------------- --------------
82,922,506 123,364,211
-------------- --------------
ENTERTAINMENT -- 7.1%
19,406 EMI Group plc ............... 75,408 85,782
195,000 EMI Group plc, ADR .......... 1,693,472 1,723,956
180,000 Fox Entertainment Group
Inc., Cl. A+ .............. 4,181,356 4,806,000
200,000 GC Companies Inc.+ .......... 218,000 110,000
500,000 Gemstar-TV Guide
International Inc.+ ....... 2,181,174 2,400,000
165,000 Grupo Televisa SA, ADR ...... 4,491,076 7,469,550
4,650,000 Liberty Media Corp., Cl. A+ . 11,718,968 41,803,500
130,000 Metro-Goldwyn-Mayer Inc.+ ... 782,635 1,573,000
20,000 Regal Entertainment Group,
Cl. A ..................... 393,316 362,000
270,000 Six Flags Inc.+ ............. 1,949,117 1,960,200
500,000 The Walt Disney Co. ......... 10,720,267 12,745,000
1,500,000 Time Warner Inc.+ ........... 20,133,908 26,370,000
835,000 Viacom Inc., Cl. A .......... 20,051,192 30,352,250
520,000 Vivendi Universal SA, ADR+ .. 10,471,933 14,508,000
60,000 World Wrestling
Entertainment Inc. ........ 612,234 765,000
-------------- --------------
89,674,056 147,034,238
-------------- --------------
ENVIRONMENTAL SERVICES -- 1.3%
325,000 Allied Waste Industries Inc.+ 2,900,045 4,283,500
300,000 Republic Services Inc. ...... 3,560,581 8,682,000
420,000 Waste Management Inc. ....... 7,785,808 12,873,000
-------------- --------------
14,246,434 25,838,500
-------------- --------------
EQUIPMENT AND SUPPLIES -- 4.5%
555,000 AMETEK Inc. ................. 3,217,551 17,149,500
3,000 Amphenol Corp., Cl. A+ ...... 23,163 99,960
105,000 CIRCOR International Inc. ... 907,143 2,140,950
190,000 Crown Holdings Inc.+ ........ 856,577 1,894,300
150,000 CTS Corp. ................... 755,149 1,809,000
4,000 Danaher Corp. ............... 70,641 207,400
408,000 Donaldson Co. Inc. .......... 1,554,163 11,954,400
323,150 Fedders Corp. ............... 1,384,241 1,405,703
415,000 Flowserve Corp.+ ............ 5,764,416 10,350,100
170,000 Gerber Scientific Inc.+ ..... 1,650,756 1,200,200
250,000 GrafTech International Ltd.+ 3,518,123 2,615,000
570,000 IDEX Corp. .................. 3,233,491 19,579,500
2,000 Imagistics International Inc.+ 39,950 70,800
12,000 Ingersoll-Rand Co., Cl. A ... 501,720 819,720
MARKET
SHARES COST VALUE
------ ---- -----
800,000 Interpump Group SpA ......... $ 3,144,069 $ 4,350,735
100,000 Lufkin Industries Inc. ...... 1,810,811 3,198,000
18,000 Manitowoc Co. Inc. .......... 131,305 609,300
36,000 Met-Pro Corp. ............... 322,944 536,400
10,000 Sealed Air Corp.+ ........... 168,679 532,700
30,000 Valmont Industries Inc. ..... 242,908 687,000
435,000 Watts Water Technologies
Inc., Cl. A ............... 5,006,660 11,723,250
120,000 Weir Group plc .............. 504,947 628,921
-------------- --------------
34,809,407 93,562,839
-------------- --------------
FINANCIAL SERVICES -- 5.3%
20,000 Aegon NV, ADR ............... 311,567 242,400
15,000 Alleghany Corp.+ ............ 2,724,804 4,305,000
12,000 Allstate Corp. .............. 282,475 558,600
380,000 American Express Co. ........ 8,869,151 19,524,400
55,000 Argonaut Group Inc.+ ........ 1,333,591 1,013,650
8,329 Bank of America Corp. ....... 314,231 704,800
60,000 Bank of New York Co. Inc. ... 2,076,956 1,768,800
20,000 Bank One Corp. .............. 535,615 1,020,000
220 Berkshire Hathaway Inc.,
Cl. A+ .................... 874,549 19,569,000
50,000 BKF Capital Group Inc. ...... 933,375 1,452,500
35,000 Commerzbank AG+ ............. 624,519 616,597
112,000 Commerzbank AG, ADR+ ........ 2,379,080 1,975,837
155,000 Deutsche Bank AG, ADR ....... 7,004,175 12,262,050
30,000 H&R Block Inc. .............. 720,982 1,430,400
6,000 Lehman Brothers
Holdings Inc. ............. 54,150 451,500
38,000 Leucadia National Corp. ..... 939,456 1,888,600
120,000 Mellon Financial Corp. ...... 4,103,607 3,519,600
23,000 Merrill Lynch & Co. Inc. .... 948,745 1,241,540
38,000 Metris Companies Inc.+ ...... 347,786 330,220
387,000 Midland Co. ................. 1,988,520 11,474,550
120,000 MONY Group Inc. ............. 3,784,054 3,756,000
190,000 Phoenix Companies Inc. ...... 2,908,583 2,327,500
30,000 PNC Financial Services Group 1,456,850 1,592,400
2,500 Prudential Financial Inc. ... 68,750 116,175
22,000 Schwab (Charles) Corp. ...... 274,010 211,420
70,000 St. Paul Travelers
Companies Inc. ............ 2,592,954 2,837,800
85,000 State Street Corp. .......... 661,975 4,168,400
20,000 SunTrust Banks Inc. ......... 424,879 1,299,800
30,000 T. Rowe Price Group Inc. .... 1,012,984 1,512,000
20,000 Unitrin Inc. ................ 522,263 852,000
8,500 Value Line Inc. ............. 136,515 301,835
30,000 Wachovia Corp. .............. 959,625 1,335,000
120,000 Waddell & Reed Financial
Inc., Cl. A ............... 2,485,919 2,653,200
-------------- --------------
54,656,695 108,313,574
-------------- --------------
See accompanying notes to financial statements.
4
THE GABELLI ASSET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- -----
COMMON STOCKS (CONTINUED)
FOOD AND BEVERAGE -- 9.3%
25,000 Allied Domecq plc, ADR ...... $ 639,154 $ 867,250
343,000 Brown-Forman Corp., Cl. A ... 8,444,981 16,481,150
35,000 Cadbury Schweppes
plc, ADR .................. 860,906 1,227,800
130,000 Campbell Soup Co. ........... 3,556,101 3,494,400
105,000 Coca-Cola Co. ............... 3,236,639 5,300,400
60,000 Coca-Cola Enterprises Inc. .. 1,074,778 1,739,400
4,500 Coca-Cola Hellenic
Bottling Co. SA ........... 113,647 108,675
250,000 Corn Products
International Inc. ........ 6,435,426 11,637,500
330,587 Del Monte Foods Co.+ ........ 3,034,775 3,358,764
318,000 Diageo plc, ADR ............. 11,903,832 17,410,500
70,000 Farmer Brothers Co. ......... 943,094 1,878,100
285,000 Flowers Foods Inc. .......... 2,682,927 7,452,750
240,000 General Mills Inc. .......... 6,475,473 11,407,200
50,000 Groupe Danone ............... 4,371,149 4,361,685
1,267,800 Grupo Bimbo SA de CV, Cl. A . 2,247,680 2,670,152
10,000 Hain Celestial Group Inc.+ .. 141,134 181,000
200,000 Heinz (H.J.) Co. ............ 7,241,965 7,840,000
114,000 Hershey Foods Corp. ......... 1,937,482 5,274,780
305,000 Kellogg Co. ................. 7,588,118 12,764,250
100,000 Kerry Group plc, Cl. A ...... 1,179,128 2,116,970
33,000 LVMH Moet Hennessy
Louis Vuitton SA .......... 1,150,670 2,386,882
9,000 Nestle SA ................... 1,868,526 2,400,192
1,050,000 PepsiAmericas Inc. .......... 13,167,945 22,302,000
375,000 PepsiCo Inc. ................ 9,501,772 20,205,000
150,000 Ralcorp Holdings Inc.+ ...... 2,240,767 5,280,000
20,000 Smucker (J.M.) Co. .......... 547,733 918,200
149,041 Tootsie Roll Industries Inc. 2,005,314 4,843,832
260,000 Wrigley (Wm.) Jr. Co. ....... 8,179,985 16,393,000
-------------- --------------
112,771,101 192,301,832
-------------- --------------
HEALTH CARE -- 3.2%
44,000 Amgen Inc.+ ................. 203,194 2,401,080
3,000 ArthroCare Corp.+ ........... 34,530 87,240
700 Bio-Rad Laboratories Inc.,
Cl. B+ .................... 25,810 40,600
44,000 Biogen Idec Inc.+ ........... 409,921 2,783,000
4,000 Biomet Inc. ................. 120,840 177,760
190,000 Bristol-Myers Squibb Co. .... 5,392,595 4,655,000
52,000 Chemed Corp. ................ 1,605,605 2,522,000
40,000 Chiron Corp.+ ............... 550,315 1,785,600
1,000 CONMED Corp.+ ............... 15,430 27,400
5,500 DENTSPLY International Inc. . 209,434 286,550
35,000 Eli Lilly & Co. ............. 2,197,980 2,446,850
20,000 Exactech Inc.+ .............. 303,566 434,000
12,000 Henry Schein Inc.+ .......... 584,789 757,680
58,000 INAMED Corp.+ ............... 2,545,038 3,645,300
1,000 Integra LifeSciences
Holdings+ ................. 19,480 35,270
MARKET
SHARES COST VALUE
------ ---- -----
25,000 Inverness Medical
Innovations Inc.+ ......... $ 424,748 $ 547,500
52,000 Invitrogen Corp.+ ........... 2,603,325 3,743,480
70,000 Johnson & Johnson ........... 1,140,150 3,899,000
60,000 Medco Health Solutions Inc.+ 1,656,382 2,250,000
155,000 Merck & Co. Inc. ............ 4,827,898 7,362,500
2,000 Nobel Biocare Holding AG .... 285,863 312,999
10,000 Orthofix International NV+ .. 346,050 427,300
4,000 OrthoLogic Corp.+ ........... 13,880 34,680
4,000 Osteotech Inc.+ ............. 26,900 25,960
16,000 Patterson Dental Co.+ ....... 702,130 1,223,840
440,000 Pfizer Inc. ................. 7,544,903 15,083,200
140,000 Schering-Plough Corp. ....... 2,752,530 2,587,200
2,000 Stryker Corp. ............... 65,440 110,000
150,000 Sybron Dental
Specialties Inc.+ ......... 2,817,765 4,477,500
25,000 Thoratec Corp.+ ............. 319,898 268,250
70,000 Women First
HealthCare Inc.+ .......... 124,375 1,750
1,000 Wright Medical Group Inc.+ .. 16,460 35,600
55,000 Wyeth ....................... 2,169,854 1,988,800
1,000 Young Innovations Inc. ...... 30,000 25,400
-------------- --------------
42,087,078 66,490,289
-------------- --------------
HOTELS AND GAMING -- 2.9%
90,000 Aztar Corp.+ ................ 906,574 2,520,000
153,100 Boca Resorts Inc., Cl. A+ ... 1,629,715 3,034,442
220,000 Caesars Entertainment Inc.+ . 1,231,329 3,300,000
365,000 Gaylord Entertainment Co.+ .. 9,694,168 11,457,350
40,000 GTECH Holdings Corp. ........ 404,713 1,852,400
12,000 Harrah's Entertainment Inc. . 113,002 649,200
2,750,000 Hilton Group plc ............ 9,857,105 13,764,457
740,000 Hilton Hotels Corp. ......... 8,392,741 13,808,400
60,000 Mandalay Resort Group ....... 726,750 4,118,400
25,000 MGM Mirage+ ................. 619,881 1,173,500
90,000 Starwood Hotels & Resorts
Worldwide Inc. ............ 2,370,235 4,036,500
45,000 Trump Hotels & Casino
Resorts Inc.+ ............. 141,805 108,900
-------------- --------------
36,088,018 59,823,549
-------------- --------------
MACHINERY -- 1.7%
45,000 AGCO Corp.+ ................. 783,405 916,650
70,000 Caterpillar Inc. ............ 927,858 5,560,800
400,000 Deere & Co. ................. 6,703,065 28,056,000
-------------- --------------
8,414,328 34,533,450
-------------- --------------
MANUFACTURED HOUSING AND RECREATIONAL VEHICLES -- 0.1%
10,000 Cavco Industries Inc.+ ...... 374,360 397,000
50,000 Champion Enterprises Inc.+ .. 464,625 459,000
50,000 Fleetwood Enterprises Inc.+ . 675,886 727,500
80,111 Huttig Building
Products Inc.+ ............ 243,014 615,252
3,000 Nobility Homes Inc. ......... 58,560 61,530
10,000 Palm Harbor Homes Inc.+ ..... 181,961 177,300
See accompanying notes to financial statements.
5
THE GABELLI ASSET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- -----
COMMON STOCKS (CONTINUED)
MANUFACTURED HOUSING AND RECREATIONAL VEHICLES (CONTINUED)
11,700 Skyline Corp. ............... $ 462,806 $ 475,605
1,000 Southern Energy Homes Inc.+ . 3,900 4,100
-------------- --------------
2,465,112 2,917,287
-------------- --------------
METALS AND MINING -- 1.5%
45,000 Alcoa Inc. .................. 1,224,220 1,486,350
255,000 Barrick Gold Corp. .......... 3,244,173 5,036,250
12,525 Freeport-McMoRan Copper
& Gold Inc., Cl. B ........ 272,500 415,204
50,000 Kinross Gold Corp.+ ......... 359,224 278,000
515,000 Newmont Mining Corp. ........ 9,699,426 19,961,400
170,000 Placer Dome Inc. ............ 1,576,429 2,828,800
-------------- --------------
16,375,972 30,006,004
-------------- --------------
PUBLISHING -- 5.0%
225,000 Belo Corp., Cl. A ........... 4,060,533 6,041,250
22,000 Dow Jones & Co. Inc. ........ 1,000,419 992,200
30,000 EMAP plc .................... 362,733 402,597
40,000 Lee Enterprises Inc. ........ 921,940 1,920,400
60,000 McClatchy Co., Cl. A ........ 1,240,718 4,209,000
140,000 McGraw-Hill Companies Inc. .. 2,576,918 10,719,800
370,000 Media General Inc., Cl. A ... 10,364,815 23,761,400
80,000 Meredith Corp. .............. 1,650,283 4,396,800
135,000 New York Times Co., Cl. A ... 1,230,827 6,035,850
14,000 News Corp. Ltd., ADR ........ 246,049 495,880
640,000 PRIMEDIA Inc.+ .............. 2,951,371 1,779,200
200,000 Pulitzer Inc. ............... 9,206,927 9,780,000
220,600 Reader's Digest
Association Inc. .......... 4,135,438 3,527,394
124,000 Scripps (E.W.) Co., Cl. A ... 7,804,763 13,020,000
68,614 Seat Pagine Gialle SpA ...... 172,631 28,800
120,000 Thomas Nelson Inc. .......... 1,535,734 2,728,800
290,000 Tribune Co. ................. 10,098,557 13,206,600
-------------- --------------
59,560,656 103,045,971
-------------- --------------
REAL ESTATE -- 1.3%
340,000 Catellus Development Corp. .. 3,577,635 8,381,000
120,082 Florida East Coast
Industries Inc. ........... 1,856,261 4,641,169
95,000 Griffin Land & Nurseries Inc.+ 1,237,966 2,414,900
310,000 St. Joe Co. ................. 2,361,650 12,307,000
-------------- --------------
9,033,512 27,744,069
-------------- --------------
RETAIL -- 2.6%
30,000 Aaron Rents Inc. ............ 89,296 994,200
40,500 Aaron Rents Inc., Cl. A ..... 287,231 1,224,315
160,000 Albertson's Inc. ............ 3,394,168 4,246,400
450,000 AutoNation Inc.+ ............ 4,523,837 7,695,000
10,000 Blockbuster Inc., Cl. A ..... 100,567 151,800
140,000 Burlington Coat Factory
Warehouse Corp. ........... 1,620,864 2,702,000
9,000 Coldwater Creek Inc.+ ....... 50,700 238,230
130,000 Kroger Co.+ ................. 761,625 2,366,000
660,000 Neiman Marcus Group Inc.,
Cl. B ..................... 15,984,491 34,247,400
-------------- --------------
26,812,779 53,865,345
-------------- --------------
MARKET
SHARES COST VALUE
------ ---- -----
SPECIALTY CHEMICALS -- 1.8%
430,000 Ferro Corp. ................. $ 6,961,548 $ 11,472,400
120,000 Fuller (H.B.) Co. ........... 2,014,683 3,408,000
130,000 General Chemical
Group Inc.+ ............... 502,184 6,500
105,000 Great Lakes Chemical Corp. .. 2,781,423 2,841,300
320,000 Hercules Inc.+ .............. 5,104,946 3,900,800
10,000 IMC Global Inc. ............. 139,584 134,000
40,000 International Flavors &
Fragrances Inc. ........... 773,336 1,496,000
165,000 Material Sciences Corp.+ .... 1,435,865 1,757,250
650,000 Omnova Solutions Inc.+ ...... 2,051,888 3,965,000
330,000 Sensient Technologies Corp. . 6,417,621 7,088,400
-------------- --------------
28,183,078 36,069,650
-------------- --------------
TELECOMMUNICATIONS -- 5.8%
90,000 ALLTEL Corp. ................ 2,757,227 4,555,800
200,000 AT&T Corp. .................. 6,358,573 2,926,000
14,000 Brasil Telecom Participacoes
SA, ADR ................... 810,959 429,800
280,000 BT Group plc ................ 1,103,373 1,007,943
30,000 BT Group plc, ADR ........... 1,082,623 1,098,000
525,000 CenturyTel Inc. ............. 6,423,670 15,771,000
600,000 Cincinnati Bell Inc.+ ....... 4,224,513 2,664,000
320,000 Citizens Communications
Co.+ ...................... 3,194,435 3,872,000
313,600 Commonwealth Telephone
Enterprises Inc.+ ......... 5,392,797 14,039,872
80,000 Deutsche Telekom AG, ADR+ ... 1,229,873 1,416,800
35,000 France Telecom SA, ADR ...... 683,990 919,800
2,800,000 Qwest Communications
International Inc.+ ....... 12,299,026 10,052,000
415,000 Rogers Communications Inc.,
Cl. B, New York ........... 4,084,690 7,523,950
10,000 Rogers Communications Inc.,
Cl. B, Toronto ............ 77,553 180,123
170,000 SBC Communications Inc. ..... 5,751,064 4,122,500
950,000 Sprint Corp. ................ 16,333,663 16,720,000
10,000 Swisscom AG, ADR ............ 292,659 332,200
75,403 Tele Norte Leste
Participacoes SA, ADR ..... 1,032,454 959,880
1,650,435 Telecom Italia SpA .......... 1,032,880 5,130,438
305,000 Telecom Italia SpA, ADR ..... 2,071,734 9,543,450
96,649 Telefonica SA, ADR .......... 3,462,539 4,313,445
12,567 Telefonica SA, BDR .......... 147,383 184,630
20,000 Telefonos de Mexico
SA de CV, Cl. L, ADR ...... 171,746 665,400
37,500 TELUS Corp. ................. 658,391 610,013
17,500 TELUS Corp., ADR ............ 316,603 284,673
280,000 Verizon Communications Inc. . 8,953,072 10,133,200
-------------- --------------
89,947,490 119,456,917
-------------- --------------
See accompanying notes to financial statements.
6
THE GABELLI ASSET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- -----
COMMON STOCKS (CONTINUED)
TRANSPORTATION -- 0.1%
85,000 AMR Corp.+ .................. $ 1,245,603 $ 1,029,350
50,000 Grupo TMM SA de CV,
Cl. A, ADR+ ............... 391,821 122,500
4,000 Kansas City Southern+ ....... 7,317 62,000
4,000 Providence & Worcester
Railroad Co. .............. 44,669 42,000
-------------- --------------
1,689,410 1,255,850
-------------- --------------
WIRELESS COMMUNICATIONS -- 4.6%
72,000 America Movil SA de CV,
Cl. L, ADR ................ 1,155,910 2,618,640
1,500,000 AT&T Wireless Services Inc.+ 19,937,783 21,480,000
75,000 Leap Wireless
International Inc.+ ....... 17,985 1,350
300,000 mm02 plc+ ................... 348,979 504,606
140,000 mm02 plc, ADR+ .............. 1,526,021 2,352,000
170,000 Nextel Communications Inc.,
Cl. A+ .................... 2,254,100 4,532,200
75,000 Nextel Partners Inc., Cl. A+ 767,333 1,194,000
75,705 Price Communications Corp.+ . 1,192,126 1,117,406
209,400 Rogers Wireless
Communications Inc., Cl. B+ 3,613,261 5,664,270
6,750 Tele Celular Sul Participacoes
SA, ADR ................... 107,916 87,075
22,500 Tele Centro Oeste Celular
Participacoes SA, ADR ..... 67,448 206,325
1,350 Tele Leste Celular
Participacoes SA, ADR+ .... 36,110 17,793
3,375 Tele Nordeste Celular
Participacoes SA, ADR ..... 49,807 77,625
1,350 Tele Norte Celular
Participacoes SA, ADR ..... 20,857 12,217
1,800,000 Telecom Italia Mobile SpA ... 1,661,796 10,205,249
3,375 Telemig Celular
Participacoes SA, ADR ..... 97,539 99,563
620,000 Telephone & Data Systems Inc. 24,145,857 44,144,000
25,000 Telesp Celular Participacoes
SA, ADR+ .................. 562,136 197,000
20,000 United States Cellular Corp.+ 609,674 771,000
12,000 Vodafone Group plc, ADR ..... 237,532 265,200
-------------- --------------
58,410,170 95,547,519
-------------- --------------
TOTAL COMMON STOCKS ......... 1,155,226,227 1,955,579,288
-------------- --------------
PREFERRED STOCKS -- 3.7%
AEROSPACE -- 0.2%
30,000 Northrop Grumman Corp.,
7.000% Cv. Pfd., Ser. B ... 3,495,600 3,945,000
-------------- --------------
PUBLISHING -- 3.5%
2,230,844 News Corp. Ltd., Pfd., ADR .. 32,035,389 73,350,151
-------------- --------------
WIRELESS COMMUNICATIONS -- 0.0%
7,686,101 Telesp Celular Participacoes
SA, Pfd.+ ................. 60,929 24,123
-------------- --------------
TOTAL PREFERRED STOCKS ...... 35,591,918 77,319,274
-------------- --------------
PRINCIPAL MARKET
AMOUNT COST VALUE
------ ---- -----
CORPORATE BONDS -- 0.3%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.1%
$ 1,000,000 Standard Motor Products Inc.,
Sub. Deb. Cv.,
6.750%, 07/15/09 .......... $ 915,535 $ 990,000
-------------- --------------
BUSINESS SERVICES -- 0.1%
1,000,000 Trans-Lux Corp., Sub. Deb. Cv.,
7.500%, 12/01/06 .......... 1,005,974 1,013,750
-------------- --------------
CABLE AND SATELLITE -- 0.0%
1,000,000 Charter Communications Inc., Cv.,
4.750%, 06/01/06 .......... 687,322 927,500
-------------- --------------
COMMUNICATIONS EQUIPMENT -- 0.1%
2,000,000 Agere Systems Inc.,
Sub. Deb. Cv.,
6.500%, 12/15/09 .......... 1,920,864 2,330,000
-------------- --------------
ELECTRONICS -- 0.0%
500,000 Oak Industries Inc.,
Sub. Deb. Cv.,
4.875%, 03/01/08 .......... 352,269 522,500
-------------- --------------
TOTAL CORPORATE BONDS ....... 4,881,964 5,783,750
-------------- --------------
U.S. GOVERNMENT OBLIGATIONS -- 1.2%
25,026,000 U.S. Treasury Bills,
0.924% to 1.297%++,
07/01/04 to 10/14/04 ...... 24,991,069 24,983,772
-------------- --------------
TOTAL INVESTMENTS --
100.0% .................... $1,220,691,178 2,063,666,084
==============
OTHER ASSETS AND LIABILITIES (NET) -- 0.0% (548,184)
--------------
NET ASSETS -- 100.0% ........ $2,063,117,900
==============
- ----------------
For Federal tax purposes:
Aggregate cost .............. $1,220,691,178
==============
Gross unrealized appreciation $ 877,404,024
Gross unrealized depreciation (34,429,118)
--------------
Net unrealized appreciation . $ 842,974,906
==============
- ----------------
(a) Security exempt from registration under Rule 144A of the Securities Act
of 1933, as amended. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
At June 30, 2004, the Rule 144A securities are considered liquid and
the market value amounted to $8,256,168 or 0.4% of total net assets.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depository Receipt.
BDR - Brazilian Depository Receipt.
CVO - Contingent Value Obligation.
SAILS - Stock Appreciation Income Linked Securities.
See accompanying notes to financial statements.
7
THE GABELLI ASSET FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS:
Investments, at value (cost $1,220,691,178) .............. $2,063,666,084
Dividends and interest receivable ........................ 1,865,344
Receivable for Fund shares sold .......................... 656,668
Other assets ............................................. 35,961
--------------
TOTAL ASSETS ............................................. 2,066,224,057
--------------
LIABILITIES:
Payable for Fund shares redeemed ......................... 511,445
Payable for investment advisory fees ..................... 1,674,612
Payable for distribution fees ............................ 417,962
Payable for shareholder services fees .................... 306,260
Payable for shareholder communication fees ............... 111,307
Other accrued expenses ................................... 84,571
--------------
TOTAL LIABILITIES ........................................ 3,106,157
--------------
NET ASSETS applicable to 54,213,154
shares outstanding ..................................... $2,063,117,900
==============
NET ASSETS CONSIST OF:
Shares of beneficial interest, at $0.01
par value .............................................. $ 542,132
Additional paid-in capital ............................... 1,207,736,594
Accumulated net investment income ........................ 1,521,978
Accumulated net realized gain on investments
and foreign currency transactions ...................... 10,339,332
Net unrealized appreciation on investments
and foreign currency transactions ...................... 842,977,864
--------------
TOTAL NET ASSETS ......................................... $2,063,117,900
==============
SHARES OF BENEFICIAL INTEREST:
CLASS AAA:
Net Asset Value, offering and redemption
price per share ($2,062,902,159 / 54,207,478
shares outstanding) .................................... $38.06
======
CLASS A:
Net Asset Value and redemption price per share
($156,942 / 4,125 shares outstanding) .................. $38.05
======
Maximum offering price per share
(NAV / 0.9425, based on maximum
sales charge of 5.75% of the
offering price at June 30, 2004) ....................... $40.37
======
CLASS B:
Net Asset Value and offering price per share
($1,045 / 27.580 shares outstanding) ................... $37.89(a)
======
CLASS C:
Net Asset Value and offering price per share
($57,754 / 1,523.420 shares outstanding) ............... $37.91(a)
======
- ----------------
(a) Redemption price varies based on length of time held.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends (net of foreign taxes of $425,897) ............. $14,687,322
Interest ................................................. 401,957
-----------
TOTAL INVESTMENT INCOME .................................. 15,089,279
-----------
EXPENSES:
Investment advisory fees ................................. 10,057,661
Distribution fees -- Class AAA ........................... 2,514,315
Distribution fees -- Class A ............................. 69
Distribution fees -- Class B ............................. 5
Distribution fees -- Class C ............................. 120
Shareholder services fees ................................ 641,902
Shareholder communications expenses ...................... 190,248
Custodian fees ........................................... 159,626
Legal and audit fees ..................................... 36,759
Trustees' fees ........................................... 28,408
Registration expenses .................................... 24,618
Miscellaneous expenses ................................... 78,479
-----------
TOTAL EXPENSES ........................................... 13,732,210
-----------
NET INVESTMENT INCOME .................................... 1,357,069
-----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain on investments ......................... 17,709,588
Net realized gain on foreign currency
transactions ........................................... 4,446
Net change in unrealized appreciation on
investments and foreign currency
transactions ........................................... 77,528,056
-----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS ........................................... 95,242,090
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................................ $96,599,159
===========
See accompanying notes to financial statements.
8
THE GABELLI ASSET FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS ENDED
JUNE 30, 2004 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2003
------------ -----------------
OPERATIONS:
Net investment income ................................................... $ 1,357,069 $ 1,851,940
Net realized gain on investments and foreign currency transactions ...... 17,714,034 43,687,872
Net change in unrealized appreciation/depreciation on investments and
foreign currency transactions ......................................... 77,528,056 420,113,505
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .................... 96,599,159 465,653,317
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income ................................................... -- (1,651,347)
Net realized long-term gain on investments .............................. -- (31,641,902)
-------------- --------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ..................................... -- (33,293,249)
-------------- --------------
SHARES OF BENEFICIAL INTEREST:
Class AAA ............................................................... 7,874,624 24,650,514
Class A ................................................................. 155,143 --
Class B ................................................................. 1,000 --
Class C ................................................................. 57,360 --
-------------- --------------
Net increase in net assets from shares of beneficial interest transactions 8,088,127 24,650,514
-------------- --------------
NET INCREASE IN NET ASSETS .............................................. 104,687,286 457,010,582
NET ASSETS:
Beginning of period ..................................................... 1,958,430,614 1,501,420,032
-------------- --------------
End of period (including undistributed net investment income of
$1,521,978 and $164,909, respectively) ................................ $2,063,117,900 $1,958,430,614
============== ==============
See accompanying notes to financial statements.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION. The Gabelli Asset Fund (the "Fund") was organized on November
25, 1985 as a Massachusetts business trust. The Fund is a diversified, open-end
management investment company registered under the Investment Company Act of
1940, as amended (the "1940 Act"). The Fund's primary objective is growth of
capital. The Fund commenced investment operations on March 3, 1986.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. The following is a summary of significant accounting policies
followed by the Fund in the preparation of its financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange or traded in the U.S. over-the-counter market for
which market quotations are readily available are valued at the last quoted sale
price or a market's official closing price as of the close of business on the
day the securities are being valued. If there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day. If no bid or asked prices are quoted on such
day, the security is valued at the most recently available price or, if the
Board of Trustees (the "Board") so determines, by such other method as the Board
shall
9
THE GABELLI ASSET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)(UNAUDITED)
- --------------------------------------------------------------------------------
determine in good faith, to reflect its fair market value. Portfolio securities
traded on more than one national securities exchange or market are valued
according to the broadest and most representative market, as determined by
Gabelli Funds, LLC (the "Adviser").
Portfolio securities primarily traded on foreign markets are generally valued at
the preceding closing values of such securities on their respective exchanges or
if after the close, market conditions change significantly, certain foreign
securities may be fair valued pursuant to procedures established by the Board.
Debt instruments that are not credit impaired with remaining maturities of 60
days or less are valued at amortized cost, unless the Board determines such does
not reflect the securities' fair value, in which case these securities will be
valued at their fair value as determined by the Board. Debt instruments having a
maturity greater than 60 days for which market quotations are readily available
are valued at the latest average of the bid and asked prices. If there were no
asked prices quoted on such day, the security is valued using the closing bid
price. Futures contracts are valued at the official closing settlement price of
the exchange or board of trade on which the applicable contract is traded.
Securities and assets for which market quotations are not readily available are
valued at their fair value as determined in good faith under procedures
established by and under the general supervision of the Board. Fair valuation
methodologies and procedures may include, but are not limited to: analysis and
review of available financial and non-financial information about the company;
comparisons to the valuation and changes in valuation of similar securities,
including a comparison of foreign securities to the equivalent U.S. dollar value
ADR securities at the close of the U.S. exchange; and evaluation of any other
information that could be indicative of the value of the security.
FORWARD FOREIGN EXCHANGE CONTRACTS. The Fund may engage in forward foreign
exchange contracts for hedging a specific transaction with respect to either the
currency in which the transaction is denominated or another currency as deemed
appropriate by the Adviser. Forward foreign exchange contracts are valued at the
forward rate and are marked-to-market daily. The change in market value is
included in unrealized appreciation/depreciation on investments and foreign
currency transactions. When the contract is closed, the Fund records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate fluctuations in
the underlying prices of the Fund's portfolio securities, but it does establish
a rate of exchange that can be achieved in the future. Although forward foreign
exchange contracts limit the risk of loss due to a decline in the value of the
hedged currency, they also limit any potential gain/(loss) that might result
should the value of the currency increase. In addition, the Fund could be
exposed to risks if the counterparties to the contracts are unable to meet the
terms of their contracts. At June 30, 2004, there were no open forward foreign
exchange contracts.
FOREIGN CURRENCY TRANSLATION. The books and records of the Fund are maintained
in United States (U.S.) dollars. Foreign currencies, investments and other
assets and liabilities are translated into U.S. dollars at the exchange rates
prevailing at the end of the period, and purchases and sales of investment
securities, income and expenses are translated at the exchange rate prevailing
on the respective dates of such transactions. Unrealized gains and losses, which
result from changes in foreign exchange rates and/or changes in market prices of
securities, have been included in unrealized appreciation/depreciation on
investments and foreign
10
THE GABELLI ASSET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)(UNAUDITED)
- --------------------------------------------------------------------------------
currency transactions. Net realized foreign currency gains and losses resulting
from changes in exchange rates include foreign currency gains and losses between
trade date and settlement date on investment securities transactions, foreign
currency transactions and the difference between the amounts of interest and
dividends recorded on the books of the Fund and the amounts actually received.
The portion of foreign currency gains and losses related to fluctuation in
exchange rates between the initial trade date and subsequent sale trade date is
included in realized gain/(loss) on investments.
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 and distributions to
shareholders are recorded on the ex-dividend date. Income distributions and
capital gain distributions are determined in accordance with Federal income tax
regulations which may differ from accounting principles generally accepted in
the United States. These differences are primarily due to differing treatments
of income and gains on various investment securities held by the Fund, timing
differences and differing characterization of distributions made by the Fund.
For the year ended December 31, 2003, reclassifications were made to decrease
accumulated net investment income for $62,684 and to decrease accumulated net
realized loss on investments and foreign currency transactions for $62,684.
The tax character of distributions paid during the fiscal year ended December
31, 2003 was as follows:
YEAR ENDED
DECEMBER 31, 2003
-----------------
DISTRIBUTIONS PAID FROM:
Ordinary income
(inclusive of short term capital gains) . $ 1,651,347
Net long term capital gains ................ 31,641,902
-----------
Total distributions paid ................... $33,293,249
===========
EXPENSES. Certain administrative expenses are common to, and allocated among the
Classes of Shares. Such allocations are made on the basis of average net assets
or other criteria directly affecting the expenses as determined by the Adviser
pursuant to procedures established by the Board.
PROVISION FOR INCOME TAXES. The Fund intends to continue to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code of
1986, as amended (the "Code"). It is the Fund's policy to comply with the
requirements of the Code applicable to regulated investment companies and to
distribute substantially all of its net investment company taxable income and
net capital gains. Therefore, no provision for Federal income taxes is required.
Dividends and interest from non-U.S. sources received by the Fund are generally
subject to non-U.S. withholding taxes at rates ranging up to 30%. Such
withholding taxes may be reduced or eliminated under the terms of applicable
U.S. income tax treaties, and the Fund intends to undertake any procedural steps
required to claim the benefits of such treaties.
11
THE GABELLI ASSET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)(UNAUDITED)
- --------------------------------------------------------------------------------
As of December 31, 2003, the components of accumulated earnings/(losses) on a
tax basis were as follows:
Accumulated net investment income ...... $ 164,909
Accumulated net realized capital gains . 58,265
Net unrealized appreciation ............ 758,013,238
Net unrealized appreciation on
foreign currency transactions ........ 3,603
------------
Total accumulated gain ................. $758,240,015
============
During the year ended December 31, 2003, the Fund fully utilized and deducted
net capital loss carryovers from prior years against its current year net
capital gains in the amount of $12,117,065.
3. INVESTMENT ADVISORY AGREEMENT. The Fund has entered into an investment
advisory agreement (the "Advisory Agreement") with the Adviser which provides
that the Fund will pay the Adviser a fee, computed daily and paid monthly, at
the annual rate of 1.00% of the value of the Fund's average daily net assets. In
accordance with the Advisory Agreement, the Adviser provides a continuous
investment program for the Fund's portfolio, oversees the administration of all
aspects of the Fund's business and affairs and pays the compensation of all
Officers and Trustees of the Fund who are its affiliates.
4. DISTRIBUTION PLAN. The Fund's Board has adopted a distribution plan (the
"Plan") for each class of shares pursuant to Rule 12b-1 under the 1940 Act.
Gabelli & Company, Inc. ("Gabelli & Company"), an affiliate of the Adviser,
serves as distributor of the Fund. Under the Class AAA, A, B and C Share Plans,
payments are authorized to Gabelli & Company at annual rates of 0.25%, 0.25%,
1.00% and 1.00%, respectively, of the average daily net assets of those Classes,
the annual limitations under each Plan. Such payments are accrued daily and paid
monthly.
5. PORTFOLIO SECURITIES. Purchases and sales of securities for the six months
ended June 30, 2004, other than short-term securities, aggregated $77,763,055
and $56,154,146, respectively.
6. TRANSACTIONS WITH AFFILIATES. During the six months ended June 30, 2004, the
Fund paid brokerage commissions of $165,229 to Gabelli & Company. During the six
months ended June 30, 2004, Gabelli & Company received $1,102 from investors
representing commissions (sales charges and underwriting fees) on sales and
redemptions of Fund shares.
The cost of calculating the Fund's net asset value per share is a Fund expense
pursuant to the Advisory Agreement. During the six months ended June 30, 2004,
the Fund reimbursed the Adviser $17,400 in connection with the cost of computing
the Fund's net asset value which is included in miscellaneous expenses in the
Statement of Operations.
7. LINE OF CREDIT. The Fund has access to an unsecured line of credit of up to
$25,000,000 from the custodian for temporary borrowing purposes. Borrowings
under this arrangement bear interest at 0.75% above the Federal Funds rate on
outstanding balances. During the six months ended June 30, 2004, there were no
borrowings from the line of credit.
8. SHARES OF BENEFICIAL INTEREST. The Fund offers four classes of shares --
Class AAA Shares, Class A Shares, Class B Shares and Class C Shares. Class AAA
Shares are offered through selected broker/dealers with no sales charge. Class A
Shares are subject to a maximum front-end sales charge of 5.75%. Class B
12
THE GABELLI ASSET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)(UNAUDITED)
- --------------------------------------------------------------------------------
Shares are subject to a contingent deferred sales charge (CDSC) upon redemption
within six years of purchase and automatically convert to Class A Shares after
eight years from the original purchase. The applicable CDSC is equal to a
declining percentage of the lesser of the net asset value per share at the date
of original purchase or at the date of redemption, based on the length of time
held. Class C Shares are subject to a 1% CDSC for two years after purchase (one
year beginning May 1, 2004).
Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED
JUNE 30, 2004 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2003
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------- ---------- -------------
CLASS AAA CLASS AAA
---------------------------- ----------------------------
Shares sold ................................... 4,128,399 $ 154,126,024 8,795,029 $ 263,911,171
Shares issued upon reinvestment of dividends .. -- -- 866,201 31,347,814
Shares redeemed ............................... (3,925,088) (146,251,400) (8,795,505) (270,608,471)
---------- ------------- ---------- -------------
Net increase .............................. 203,311 $ 7,874,624 865,725 $ 24,650,514
========== ============= ========== =============
CLASS A
----------------------------
Shares sold ................................... 4,125 $ 155,143
Shares issued upon reinvestment of dividends .. -- --
Shares redeemed ............................... -- --
---------- -------------
Net increase .............................. 4,125 $ 155,143
========== =============
CLASS B
----------------------------
Shares sold ................................... 28 $ 1,000
Shares issued upon reinvestment of dividends .. -- --
Shares redeemed ............................... -- --
---------- -------------
Net increase .............................. 28 $ 1,000
========== =============
CLASS C
----------------------------
Shares sold ................................... 1,523 $ 57,360
Shares issued upon reinvestment of dividends .. -- --
Shares redeemed ............................... -- --
---------- -------------
Net increase .............................. 1,523 $ 57,360
========== =============
9. OTHER MATTERS. On October 7, 2003, the Fund's Adviser received a subpoena
from the Attorney General of the State of New York requesting information on
mutual fund shares trading practices. The Adviser has also received requests for
information from the SEC regarding mutual fund trading practices and valuation
of portfolio securities. The Adviser has responded to the requests. The Fund
does not believe that these matters will have a material adverse effect on the
Fund's financial position or the results of its operations.
10. INDEMNIFICATIONS. The Fund enters into contracts that contain a variety of
indemnifications. The Fund's maximum exposure under these arrangements is
unknown. However, the Fund has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
13
THE GABELLI ASSET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
INCOME
FROM INVESTMENT OPERATIONS DISTRIBUTIONS
------------------------------------------- -----------------------------------------
Net
Net Asset Realized and Total Net Net Asset
Period Value, Net Unrealized from Net Realized Value,
Ended Beginning Investment Gain/(Loss) on Investment Investment Gain on Total End of
December 31 of Period Income/(Loss) Investments Operations Income Investments Distributions Period
- ----------- --------- ------------- -------------- ---------- ---------- ------------ -------------- ----------
CLASS AAA
2004 (d) $36.26 $0.03 $1.77 $1.80 -- -- -- $38.06
2003 28.25 0.04 8.60 8.64 $(0.03) $(0.60) $(0.63) 36.26
2002 32.97 0.02 (4.72) (4.70) (0.02) (0.00)(a) (0.02) 28.25
2001 33.90 (0.00)(a) 0.05 0.05 -- (0.98) (0.98) 32.97
2000 40.84 0.31 (1.37) (1.06) (0.31) (5.57) (5.88) 33.90
1999 35.47 (0.06) 10.06 10.00 -- (4.63) (4.63) 40.84
CLASS A (B)
2004 (d) $36.26 $0.05 $1.74 $1.79 -- -- -- $38.05
CLASS B (B)
2004 (d) $36.26 ($0.13) $1.76 $1.63 -- -- -- $37.89
CLASS C (B)
2004 (d) $36.26 ($0.08) $1.73 $1.65 -- -- -- $37.91
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
----------------------------------------------------------------
Net Assets Net
Period End of Investment Portfolio
Ended Total Period Income/ Operating Turnover
December 31 Return+ (in 000's) (Loss) Expenses Rate
- ----------- ------- ---------- ---------- ---------- ---------
CLASS AAA
2004 (d) 5.0% $2,062,902 0.13%(c) 1.37%(c) 3%
2003 30.6 1,958,431 0.11 1.38 7
2002 (14.3) 1,501,420 0.04 1.38 8
2001 0.2 1,911,007 (0.00) 1.36 15
2000 (2.4) 1,906,095 0.77 1.36 48
1999 28.5 1,993,875 (0.10) 1.37 32
CLASS A (B)
2004 (d) 4.9% $157 0.29%(c) 1.37%(c) 3%
CLASS B (B)
2004 (d) 4.5% $1 (0.68)%(c) 2.12%(c) 3%
CLASS C (B)
2004 (d) 4.6% $58 (0.43)%(c) 2.12%(c) 3%
- --------------------------------------------------------------------------------
+ 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 and does not reflect applicable sales
charges. Total return for the period of less than one year is not
annualized.
(a) Amount represents less than $0.005 per share.
(b) Class A, Class B and Class C shares were initially offered on December 31,
2003.
(c) Annualized.
(d) For the period ended June 30, 2004; unaudited.
See accompanying notes to financial statements.
14
THE GABELLI ASSET FUND
One Corporate Center
Rye, New York 10580-1422
800-GABELLI
800-422-3554
FAX: 914-921-5118
WEBSITE: WWW.GABELLI.COM
E-MAIL: INFO@GABELLI.COM
Net Asset Value available daily by calling
800-GABELLI after 6:00 P.M.
BOARD OF TRUSTEES
Mario J. Gabelli, CFA Anthony R. Pustorino
CHAIRMAN AND CHIEF CERTIFIED PUBLIC ACCOUNTANT
INVESTMENT OFFICER PROFESSOR EMERITUS
GABELLI ASSET MANAGEMENT INC. PACE UNIVERSITY
Anthony J. Colavita Werner J. Roeder, MD
ATTORNEY-AT-LAW VICE PRESIDENT/MEDICAL AFFAIRS
ANTHONY J. COLAVITA, P.C. LAWRENCE HOSPITAL CENTER
James P. Conn Anthonie C. van Ekris
FORMER CHIEF INVESTMENT OFFICER MANAGING DIRECTOR
FINANCIAL SECURITY ASSURANCE BALMAC INTERNATIONAL, INC.
HOLDINGS LTD.
John D. Gabelli Salvatore J. Zizza
SENIOR VICE PRESIDENT CHAIRMAN
GABELLI & COMPANY, INC. HALLMARK ELECTRICAL SUPPLIES
CORP.
Karl Otto Pohl
FORMER PRESIDENT
DEUTSCHE BUNDESBANK
OFFICERS
Bruce N. Alpert James E. McKee
PRESIDENT AND TREASURER SECRETARY
DISTRIBUTOR
Gabelli & Company, Inc.
CUSTODIAN, TRANSFER AGENT AND DIVIDEND AGENT
State Street Bank and Trust Company
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
- --------------------------------------------------------------
This report is submitted for the general information of the
shareholders of The Gabelli Asset Fund. It is not authorized
for distribution to prospective investors unless preceded or
accompanied by an effective prospectus.
- --------------------------------------------------------------
GAB405Q204SR
SEMI-ANNUAL REPORT
JUNE 30, 2004
[MARIO GABELLI PHOTO OMITTED]
THE
GABELLI
ASSET
FUND
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. SCHEDULE OF INVESTMENTS
Not applicable.
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
COMPANY 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 three
"non-interested" (as such term is defined by the Investment Company Act of 1940,
as amended) Trustees, namely Anthony J. Colavita, Werner J. Roeder, and
Salvatore J. Zizza. 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 Trustees
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 Fund, 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 Fund 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
directors questionnaire.
The shareholder recommendation and information described above must be sent to
the Fund'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
Fund'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 Fund 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 Fund 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 Fund. The Nominating Committee also seeks
to have the Board of Trustees represent a diversity of backgrounds and
experience.
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 Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's 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 applicable.
(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 Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) The Gabelli Asset Fund
-----------------------------------------------------
By (Signature and Title)* /s/ BRUCE N. ALPERT
-----------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date September 7, 2004
----------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ BRUCE N. ALPERT
-----------------------------------------------------
Bruce N. Alpert, Principal Executive Officer and
Principal Financial Officer
Date September 7, 2004
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.