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 811-08560
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Gabelli International Growth Fund, Inc.
---------------------------------------------------------
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
---------------------------------------------------------
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
---------------------------------------------------------
(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: December 31
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Date of reporting period: December 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 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.
[GRAPHIC OMITTED]
GABELLI
INTERNATIONAL
GROWTH
FUND,
INC.
ANNUAL REPORT
DECEMBER 31, 2004
GABELLI INTERNATIONAL GROWTH FUND, INC.
ANNUAL REPORT
DECEMBER 31, 2004
TO OUR SHAREHOLDERS,
The Sarbanes-Oxley Act requires a Fund's principal executive and financial
officers to certify the entire contents of the semi-annual and annual
shareholder reports in a filing with the Securities and Exchange Commission on
Form N-CSR. This certification would cover the portfolio manager's commentary
and subjective opinions if they are attached to or a part of the financial
statements. Many of these comments and opinions would be difficult or impossible
to certify.
Because we do not want our portfolio managers to eliminate their opinions
and/or restrict their commentary to historical facts, we have separated their
commentary from the financial statements and investment portfolio and have sent
it to you separately. Both the commentary and the financial statements,
including the portfolio of investments, will be available on our website at
www.gabelli.com/funds.
Enclosed are the audited financial statements and the investment portfolio
as of December 31, 2004 with a description of factors that affected the
performance during the past year.
PERFORMANCE DISCUSSION
During 2004, the Fund rose by 16.8% which compares with a rise of 16.6%
and 20.7% for the average international multi cap growth fund monitored by
Lipper Inc. and the MSCI EAFE index, respectively.
Following a very strong performance in 2003 we, among others, expressed
some caution for 2004. This proved to be mistaken, as is so often the case in
financial forecasting. Look at what happened in 2004. The Federal Reserve raised
short term interest rates on five separate occasions by 125 basis points to
2.25% by year end, the oil price and other commodities rose substantially in
response to strong global growth, and both the budget and current account
deficits continued to rise. Yet in the face of this, 2004 was a very good year
for just about all long term asset markets. This performance was greatly
assisted by a continued narrowing of credit spreads and a lowering of market
volatility to near record lows. Both junk bond and emerging market yield spreads
to U.S. treasuries narrowed throughout the year and volatility, as measured by
the VIX index, also narrowed. Finally and most important the U.S. long bond
yield barely budged and foreign long term bond yields declined significantly.
While the Federal Reserve was tightening monetary policy long term bond yields
were falling.
For the year, positive performance was obtained from OPAP (+78.6%),
Technip Coflexip (+58.5%), Altadis (+49.8%), Publishing and Broadcasting
(+39.8%), Gallaher (+31.9%), Telecom Italia (+27.9%), Pernod Ricard (+27.9%),
Richemont (+27.5%), Ito Yokado (+27.2%), and Hilton Group (+26.6%). Our laggards
were Harmony (-42.0%), Astra Zeneca (-29.5%), Tokyo Electron (-23.5%), Rohm
(-16.2%), KDDI (-10.6%), Nikko Cordial (-10.1%), GlaxoSmith Kline (-4.5%), NRJ
(-4.4%), Sanofi (-1.5%) and Mediaset (-1.1%).
Sincerely yours,
/s/ Bruce N. Alpert
Bruce N. Alpert
President
February 23, 2005
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE GABELLI
INTERNATIONAL GROWTH FUND, THE LIPPER INTERNATIONAL FUND AVERAGE
AND THE MORGAN STANLEY EAFE INDEX
[GRAPHIC OMITTED]
PLOT POINTS FOLLOW:
Gabelli International Lipper International Morgan Stanley
Growth Fund (Class AAA) Fund Average EAFE Index
6/30/95 10,000 10,000 10,000
12/31/95 10,980 10,605 10,855
12/31/96 13,420 12,132 11,542
12/31/97 14,399 12,799 11,788
12/31/98 16,901 14,466 14,080
12/31/99 25,760 20,377 17,933
12/31/00 21,512 17,198 15,261
12/31/01 16,409 13,464 12,023
12/31/02 14,092 11,220 10,035
12/31/03 19,260 15,116 14,137
12/31/04 22,496 17,632 17,063
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. The performance tables and
graph do not reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares.
COMPARATIVE RESULTS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH DECEMBER 31, 2004 (A)
----------------------------------------------------
Since
Inception
QUARTER 1 YEAR 3 YEAR 5 YEAR (6/30/95)
- --------------------------------------------------------------------------------------------------------------------
GABELLI INTERNATIONAL GROWTH FUND CLASS AAA ............. 13.62% 16.80% 11.09% (2.68)% 8.89%
MSCI EAFE Index ......................................... 15.36 20.70 12.31 (0.80) 5.96
Lipper International Multi-Cap Growth Fund Average ...... 14.35 16.64 9.11 (4.70) 5.82
Class A ................................................. 13.52 16.80 11.55 (2.42) 9.04
6.99(b) 10.09(b) 9.37(b) (3.57)(b) 8.37(b)
Class B ................................................. 13.37 15.94 10.25 (3.26) 8.55
8.37(c) 10.94(c) 9.42(c) (3.65)(c) 8.55(c)
Class C ................................................. 13.36 15.96 9.90 (3.45) 8.44
12.36(c) 14.96(c) 9.90(c) (3.45)(c) 8.44(c)
(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. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA PRESENTED.
VISIT WWW.GABELLI.COM FOR PERFORMANCE INFORMATION AS OF THE MOST RECENT
MONTH END. INVESTORS SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS AND
CHARGES AND EXPENSES OF THE FUND CAREFULLY BEFORE INVESTING. THE PROSPECTUS
CONTAINS MORE COMPLETE INFORMATION ABOUT THIS AND OTHER MATTERS AND SHOULD
BE READ CAREFULLY BEFORE INVESTING. PERFORMANCE FOR PERIODS LESS THAN ONE
YEAR IS NOT ANNUALIZED. INVESTING IN FOREIGN SECURITIES INVOLVES RISKS NOT
ORDINARILY ASSOCIATED WITH INVESTMENTS IN DOMESTIC ISSUES, INCLUDING
CURRENCY FLUCTUATION, ECONOMIC AND POLITICAL RISKS. THE CLASS AAA SHARES'
NET ASSET VALUES ARE USED TO CALCULATE PERFORMANCE FOR THE PERIODS PRIOR TO
THE ISSUANCE OF CLASS A SHARES, CLASS B SHARES AND CLASS C SHARES ON JULY
25, 2001, JANUARY 17, 2001 AND DECEMBER 17, 2000, RESPECTIVELY. THE ACTUAL
PERFORMANCE FOR THE CLASS B SHARES AND CLASS C SHARES WOULD HAVE BEEN LOWER
DUE TO THE ADDITIONAL EXPENSES ASSOCIATED WITH THESE CLASSES OF SHARES. THE
MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) EUROPE, AUSTRALASIA AND FAR
EAST (EAFE) INDEX IS AN UNMANAGED INDICATOR OF INTERNATIONAL STOCK MARKET
PERFORMANCE, WHILE THE LIPPER AVERAGE REFLECTS THE AVERAGE PERFORMANCE OF
MUTUAL FUNDS CLASSIFIED IN THIS PARTICULAR CATEGORY.
(b) INCLUDES THE EFFECT OF THE MAXIMUM 5.75% SALES CHARGE AT THE BEGINNING OF
THE PERIOD.
(c) INCLUDES THE EFFECT OF THE APPLICABLE CONTINGENT DEFERRED SALES CHARGE AT
THE END OF THE PERIOD SHOWN FOR CLASS B AND CLASS C SHARES, RESPECTIVELY.
- --------------------------------------------------------------------------------
2
THE GABELLI INTERNATIONAL GROWTH FUND
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
For the Six Month Period from July 1, 2004 through December 31, 2004
EXPENSE TABLE
- --------------------------------------------------------------------------------
We believe it is important for you to understand the impact of fees and expenses
regarding your investment. All mutual funds have operating expenses. As a
shareholder of a fund, you incur ongoing costs, which include costs for
portfolio management, administrative services, and shareholder reports (like
this one), among others. Operating expenses, which are deducted from a fund's
gross income, directly reduce the investment return of a fund. When a fund's
expenses are expressed as a percentage of its average net assets, this figure is
known as the expense ratio. The following examples are intended to help you
understand the ongoing costs (in dollars) of investing in your Fund and to
compare these costs with those of other mutual funds. The examples are based on
an investment of $1,000 made at the beginning of the period shown and held for
the entire period.
The Expense Table below illustrates your Fund's costs in two ways:
ACTUAL FUND RETURN: This section provides information about actual account
values and actual expenses. You may use this section to help you to estimate the
actual expenses that you paid over the period after any fee waivers and expense
reimbursements. The "Ending Account Value" shown is derived from the Fund's
ACTUAL return during the past six months, and the "Expenses Paid During Period"
shows the dollar amount that would have been paid by an investor who started
with $1,000 in the Fund. You may use this information, together with the amount
you invested, to estimate the expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for your Fund under the heading "Expenses Paid During Period" to estimate
the expenses you paid during this period.
HYPOTHETICAL 5% RETURN: This section provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio. It assumes a hypothetical annualized return of 5% before expenses during
the period shown. In this case -- because the hypothetical return used is NOT
the Fund's actual return -- the results do not apply to your investment and you
cannot use the hypothetical account value and expense to estimate the actual
ending account balance or expenses you paid for the period. This example is
useful in making comparisons of the ongoing costs of investing in the Fund and
other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs such as sales
charges (loads), redemption fees, or exchange fees, if any, which are described
in the Prospectus. If these costs were applied to your account, your costs would
be higher. Therefore, the 5% hypothetical return is useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning
different funds. The "Annualized Expense Ratio" represents the actual expenses
for the last six months and may be different from the expense ratio in the
Financial Highlights which is for the year ended December 31, 2004.
Beginning Ending Annualized Expenses
Account Value Account Value Expense Paid During
7/1/04 12/31/04 Ratio Period*
- --------------------------------------------------------------------------------
GABELLI INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Class AAA $1,000.00 $1,145.90 1.92% $10.36
Class A $1,000.00 $1,145.40 1.92% $10.35
Class B $1,000.00 $1,141.40 2.67% $14.37
Class C $1,000.00 $1,141.40 2.67% $14.37
HYPOTHETICAL 5% RETURN
Class AAA $1,000.00 $1,015.48 1.92% $ 9.73
Class A $1,000.00 $1,015.48 1.92% $ 9.73
Class B $1,000.00 $1,011.71 2.67% $13.50
Class C $1,000.00 $1,011.71 2.67% $13.50
* Expenses are equal to the Fund's annualized expense ratio for the last six
months multiplied by the average account value over the period, multiplied
by the number of days in the most recent fiscal half-year, then divided by
366.
3
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)
Under SEC rules, all funds are required to include in their annual and
semi-annual shareholder reports a presentation of portfolio holdings in a table,
chart or graph by reasonably identifiable categories. The following table which
presents portfolio holdings as a percent of total net assets is provided in
compliance with such requirement.
GABELLI INTERNATIONAL GROWTH FUND
Health Care ....................................... 15.4%
Consumer Products ................................. 12.4%
Building and Construction ......................... 8.3%
Energy and Utilities .............................. 6.0%
Financial Services: Banks ......................... 5.9%
Entertainment ..................................... 5.6%
Broadcasting ...................................... 5.5%
Financial Services ................................ 5.1%
Food and Beverage ................................. 5.0%
Financial Services: Insurance ..................... 4.2%
Hotels and Gaming ................................. 3.8%
Telecommunications ................................ 3.8%
Electronics ....................................... 3.7%
Wireless Communications ........................... 3.6%
Metals and Mining ................................. 3.5%
Publishing ........................................ 2.8%
Retail ............................................ 2.4%
Business Services ................................. 1.4%
U.S. Government Obligations ....................... 1.3%
Real Estate ....................................... 0.9%
Other Assets and Liabilities - Net ................ (0.6%)
------
100.0%
======
THE FUND FILES A COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS WITH THE SEC FOR THE
FIRST AND THIRD QUARTERS OF EACH FISCAL YEAR ON FORM N-Q, THE FIRST OF WHICH WAS
FILED FOR THE QUARTER ENDED SEPTEMBER 30, 2004. SHAREHOLDERS MAY OBTAIN THIS
INFORMATION AT WWW.GABELLI.COM OR BY CALLING THE FUND AT 800-GABELLI
(800-422-3554). THE FUND'S FORM N-Q IS AVAILABLE ON THE SEC'S WEBSITE AT
WWW.SEC.GOV AND MAY ALSO BE REVIEWED AND COPIED AT THE COMMISSION'S PUBLIC
REFERENCE ROOM IN WASHINGTON, DC. INFORMATION ON THE OPERATION OF THE PUBLIC
REFERENCE ROOM MAY BE OBTAINED BY CALLING 1-800-SEC-0330.
PROXY VOTING
The Fund files Form N-PX with its complete proxy voting record for the 12 months
ended June 30th, no later than August 31st of each year. A description of the
Fund's proxy voting policies and procedures are available (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) by visiting
the Securities and Exchange Commission's website at www.sec.gov.
4
GABELLI INTERNATIONALGROWTH FUND,INC.
SCHEDULE OF INVESTMENTS -- DECEMBER 31, 2004
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS -- 99.3%
BROADCASTING -- 5.5%
100,000 Mediaset SpA .............. $ 806,395 $ 1,268,180
20,000 Modern Times Group, Cl. B+ 527,395 544,738
4,500 Nippon Television
Network Corp. ........... 740,051 675,856
25,575 NRJ Group ................. 241,086 561,419
----------- -----------
2,314,927 3,050,193
----------- -----------
BUILDING AND CONSTRUCTION-- 8.3%
20,000 Bouygues SA ............... 615,611 924,290
75,750 CRH plc ................... 1,120,545 2,028,374
50,000 Sekisui House Ltd. ........ 537,198 582,609
6,000 Technip SA ................ 652,173 1,109,148
----------- -----------
2,925,527 4,644,421
----------- -----------
BUSINESS SERVICES -- 1.4%
19,000 Secom Co. Ltd. ............ 813,796 760,223
----------- -----------
CONSUMER PRODUCTS -- 12.4%
45,000 Altadis SA ................ 662,813 2,061,302
17,000 Christian Dior SA ......... 855,329 1,156,518
59,000 Compagnie Financiere
Richemont AG, Cl. A ..... 1,076,485 1,963,899
45,000 Gallaher Group plc ........ 496,236 683,821
7,000 Swatch Group AG, Cl. B .... 700,573 1,027,438
----------- -----------
3,791,436 6,892,978
----------- -----------
ELECTRONICS -- 3.7%
3,500 Keyence Corp. ............. 728,745 784,230
6,400 Rohm Co. Ltd. ............. 1,353,437 662,047
10,000 Tokyo Electron Ltd. ....... 508,650 615,790
----------- -----------
2,590,832 2,062,067
----------- -----------
ENERGY AND UTILITIES -- 6.0%
60,000 Eni SpA ................... 1,104,856 1,502,243
14,000 Petroleo Brasileiro SA, ADR 551,210 556,920
5,944 Total SA .................. 932,831 1,298,356
----------- -----------
2,588,897 3,357,519
----------- -----------
ENTERTAINMENT -- 5.6%
151,000 Publishing &
Broadcasting Ltd. ....... 1,028,758 2,071,458
32,000 Vivendi Universal SA+ ..... 1,303,831 1,021,721
----------- -----------
2,332,589 3,093,179
----------- -----------
FINANCIAL SERVICES -- 5.1%
50,000 Irish Life & Permanent plc,
London .................. 392,548 926,329
90,000 Kinnevik Investment AB,
Cl. B ................... 869,658 958,181
180,000 Nikko Cordial Corp. ....... 1,233,959 953,840
----------- -----------
2,496,165 2,838,350
----------- -----------
MARKET
SHARES COST VALUE
------ ---- ------
FINANCIAL SERVICES: BANKS -- 5.9%
80,006 Bank of Ireland ........... $ 531,788 $1,323,465
70,000 Lloyds TSB Group plc ...... 567,035 635,679
16,000 UBS AG .................... 780,636 1,341,659
----------- -----------
1,879,459 3,300,803
----------- -----------
FINANCIAL SERVICES: INSURANCE -- 4.2%
5,000 Allianz AG ................ 616,773 663,314
65,000 Aviva plc ................. 641,460 783,704
38,452 RAS SpA ................... 564,494 869,704
----------- -----------
1,822,727 2,316,722
----------- -----------
FOOD AND BEVERAGE -- 5.0%
50,000 Ajinomoto Co. Inc. ........ 596,119 595,296
20,000 Coca-Cola Hellenic
Bottling Co. SA ......... 270,013 488,786
70,000 Diageo plc ................ 616,826 998,541
4,500 Pernod-Ricard ............. 325,884 689,343
----------- -----------
1,808,842 2,771,966
----------- -----------
HEALTH CARE -- 15.4%
1,875 AstraZeneca plc, London ... 85,577 68,000
14,126 AstraZeneca plc, Stockholm 532,974 513,352
42,140 GlaxoSmithKline plc ....... 1,218,764 988,655
25,000 Novartis AG ............... 953,728 1,259,784
9,000 Roche Holding AG .......... 926,761 1,036,057
18,872 Sanofi-Aventis ............ 985,407 1,508,323
60,000 Smith & Nephew plc ........ 542,091 613,984
3,000 Straumann Holding AG ...... 617,094 622,637
5,500 Synthes Inc. .............. 372,080 616,700
16,000 Takeda Pharmaceutical Co. Ltd 846,985 805,699
12,000 William Demant Holding A/S+ 541,308 563,540
----------- -----------
7,622,769 8,596,731
----------- -----------
HOTELS AND GAMING -- 3.8%
34,000 Greek Organization of Football
Prognostics SA .......... 377,389 940,927
220,000 Hilton Group plc .......... 858,406 1,201,666
----------- -----------
1,235,795 2,142,593
----------- -----------
METALS AND MINING -- 3.5%
85,500 Harmony Gold Mining
Co. Ltd. ................ 534,222 777,031
16,000 Harmony Gold Mining
Co. Ltd., ADR ........... 86,108 148,320
23,000 Newmont Mining Corp. ...... 521,800 1,021,430
----------- -----------
1,142,130 1,946,781
----------- -----------
PUBLISHING -- 2.8%
51,018 News Corp., Cl. B, CDI .... 791,251 980,230
50,000 Pearson plc ............... 575,055 603,329
----------- -----------
1,366,306 1,583,559
----------- -----------
See accompanying notes to financial statements.
5
GABELLI INTERNATIONALGROWTH FUND,INC.
SCHEDULE OF INVESTMENTS (CONTINUED) -- DECEMBER 31, 2004
- ---------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
REAL ESTATE -- 0.9%
50,000 Cheung Kong (Holdings) Ltd. $ 585,811 $ 498,540
----------- -----------
RETAIL -- 2.4%
16,000 Ito-Yokado Co. Ltd. ....... 564,319 671,416
24,000 Matsumotokiyoshi Co. Ltd... 652,999 683,908
----------- -----------
1,217,318 1,355,324
----------- -----------
TELECOMMUNICATIONS -- 3.8%
160 KDDI Corp. ................ 536,747 861,911
300,000 Telecom Italia SpA ........ 1,056,137 1,227,402
----------- -----------
1,592,884 2,089,313
----------- -----------
WIRELESS COMMUNICATIONS -- 3.6%
75,000 Telefonica Moviles SA ..... 659,348 943,999
346,376 Vodafone Group plc ........ 866,398 939,323
4,575 Vodafone Group plc, ADR ... 122,216 125,264
----------- -----------
1,647,962 2,008,586
----------- -----------
TOTAL COMMON STOCKS ....... 41,776,172 55,309,848
----------- -----------
PRINCIPAL
AMOUNT
------
U.S. GOVERNMENT OBLIGATIONS -- 1.3%
$718,000 U.S. Treasury Bills,
2.025%++, 03/03/05 ...... 715,665 715,576
----------- -----------
TOTAL
INVESTMENTS -- 100.6% ... $42,491,837 56,025,424
===========
OTHER ASSETS AND LIABILITIES (NET) -- (0.6)% (306,819)
-----------
NET ASSETS -- 100.0% ................... $55,718,605
===========
- ----------------
For Federal tax purposes:
Aggregate cost ......................... $43,056,234
===========
Gross unrealized appreciation .......... $15,301,750
Gross unrealized depreciation .......... (2,332,560)
-----------
Net unrealized appreciation (depreciation) $12,969,190
===========
- ----------------
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depository Receipt.
CDI - Chess Depositary Interest.
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
- -------------------------- ------ -------
Europe ................................. 72.5% $40,603,094
Japan .................................. 15.4 8,652,825
Asia/Pacific ........................... 6.3 3,550,228
North America .......................... 3.1 1,737,006
South Africa ........................... 1.7 925,351
Latin America .......................... 1.0 556,920
----- -----------
100.0% $56,025,424
===== ===========
See accompanying notes to financial statements.
6
GABELLI INTERNATIONAL GROWTH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2004
- --------------------------------------------------------------------------------
ASSETS:
Investments, at value (cost $42,491,837) $ 56,025,424
Cash and foreign currency, at value
(cost $34,211) ........................ 34,212
Receivable for Fund shares sold ......... 234,651
Dividends receivable .................... 58,904
Other assets ............................ 3,873
------------
TOTAL ASSETS ............................ 56,357,064
------------
LIABILITIES:
Payable for investment purchased ........ 432,294
Payable for Fund shares redeemed ........ 38,039
Payable for investment advisory fees .... 45,149
Payable for distribution fees ........... 11,342
Other accrued expenses .................. 111,635
------------
TOTAL LIABILITIES ....................... 638,459
------------
NET ASSETS applicable to 2,972,221
shares outstanding .................... $ 55,718,605
============
NET ASSETS CONSIST OF:
Capital stock, at $0.001 par value ...... $ 2,972
Additional paid-in capital .............. 55,298,703
Accumulated net investment income ....... 480
Accumulated net realized loss on investments
and foreign currency transactions ..... (13,120,161)
Net unrealized appreciation on investments
and foreign currency translation ...... 13,536,611
------------
NET ASSETS .............................. $ 55,718,605
============
SHARES OF CAPITAL STOCK:
CLASS AAA:
Net Asset Value, offering and redemption
price per share ($55,427,400 / 2,956,696
shares outstanding ) .................. $18.75
======
CLASS A:
Net Asset Value and redemption price per share
($201,986 / 10,674 shares outstanding) $18.92
======
Maximum offering price per share
(NAV / 0.9425, based on maximum sales
charge of 5.75% of the offering price) $20.07
======
CLASS B:
Net Asset Value and offering price per share
($84,092 / 4,570 shares outstanding) .. $18.40(a)
======
CLASS C:
Net Asset Value and offering price per share
($5,127 / 281.1 shares outstanding) ... $18.24(a)
======
- ----------
(a) Redemption price varies based on the length of time held.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2004
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends (net of foreign taxes of $37,720) $ 995,195
Interest ............................... 11,521
----------
TOTAL INVESTMENT INCOME ................ 1,006,716
----------
EXPENSES:
Investment advisory fees ............... 459,638
Distribution fees -- Class AAA ......... 114,373
Distribution fees -- Class A ........... 355
Distribution fees -- Class B ........... 680
Distribution fees -- Class C ........... 46
Shareholder communications expenses .... 63,395
Legal and audit fees ................... 56,032
Custodian fees ......................... 54,692
Shareholder services fees .............. 50,851
Registration fees ...................... 13,225
Directors' fees ........................ 11,599
Miscellaneous expenses ................. 21,465
----------
TOTAL EXPENSES ......................... 846,351
----------
NET INVESTMENT INCOME .................. 160,365
----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain on investments ....... 1,211,992
Net realized loss on foreign
currency transactions ................ (5,079)
Net change in unrealized appreciation/
depreciation on investments and foreign
currency translation ................. 6,228,241
----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS ......................... 7,435,154
----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ...................... $7,595,519
==========
See accompanying notes to financial statements.
7
GABELLI INTERNATIONAL GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 2004 DECEMBER 31, 2003
----------------- -----------------
OPERATIONS:
Net investment income ....................................................... $ 160,365 $ 23,208
Net realized gain/(loss) on investments and foreign currency transactions ... 1,206,913 (2,434,777)
Net change in unrealized appreciation/depreciation of investments
and foreign currency translations ......................................... 6,228,241 13,535,897
------------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ........................ 7,595,519 11,124,328
------------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class AAA ................................................................. (157,715) --
Class A ................................................................... (631) --
Class B ................................................................... -- --
Class C ................................................................... -- --
------------- -----------
(158,346) --
------------- -----------
In excess of net investment income
Class AAA ................................................................. -- (34,618)
Class A ................................................................... -- (105)
Class B ................................................................... -- --
Class C ................................................................... -- --
------------- -----------
-- (34,723)
------------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ......................................... (158,346) (34,723)
------------- -----------
CAPITAL SHARE TRANSACTIONS:
Class AAA ................................................................... 5,962,751 (4,683,338)
Class A ..................................................................... 87,497 77,831
Class B ..................................................................... 52,536 2,613
Class C ..................................................................... (41) (33,247)
------------- -----------
NET INCREASE/(DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS ....... 6,102,743 (4,636,141)
------------- -----------
REDEMPTION FEES ............................................................. 52,949 117,739
------------- -----------
NET INCREASE IN NET ASSETS .................................................. 13,592,865 6,571,203
NET ASSETS:
Beginning of period ......................................................... 42,125,740 35,554,537
------------- -----------
End of period (including undistributed net investment income of
$480 and $3,540, respectively) ............................................ $ 55,718,605 $42,125,740
============= ===========
See accompanying notes to financial statements.
8
GABELLI INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. ORGANIZATION. The Gabelli International Growth Fund, Inc. (the "Fund") was
organized on May 25, 1994 as a Maryland corporation. 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 long
term capital appreciation. The Fund commenced investment operations on June
30,1995.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. The following is a summary of significant accounting policies
followed by the Fund in the preparation of its financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange or traded in the U.S. over-the-counter market for
which market quotations are readily available are valued at the last quoted sale
price or a market's official closing price as of the close of business on the
day the securities are being valued. If there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day. If no bid or asked prices are quoted on such
day, the security is valued at the most recently available price or, if the
Board of Directors (the "Board") so determines, by such other method as the
Board shall determine in good faith, to reflect its fair market value. Portfolio
securities traded on more than one national securities exchange or market are
valued according to the broadest and most representative market, as determined
by Gabelli Funds, LLC (the "Adviser").
Portfolio securities primarily traded on foreign markets are generally valued at
the preceding closing values of such securities on their respective exchanges or
if after the close of the foreign markets, but prior to the close of business on
the day the securities are being valued, market conditions change significantly,
certain foreign securities may be fair valued pursuant to procedures established
by the Board. Debt instruments that are not credit impaired with remaining
maturities of 60 days or less are valued at amortized cost, unless the Board
determines such amount does not reflect the securities' fair value, in which
case these securities will be valued at their fair value as determined by the
Board. Debt instruments having a maturity greater than 60 days for which market
quotations are readily available are valued at the latest average of the bid and
asked prices. If there were no asked prices quoted on such day, the security is
valued using the closing bid price. Futures contracts are valued at the closing
settlement price of the exchange or board of trade on which the applicable
contract is traded.
Securities and assets for which market quotations are not readily available are
valued at their fair value as determined in good faith under procedures
established by and under the general supervision of the Board. Fair valuation
methodologies and procedures may include, but are not limited to: analysis and
review of available financial and non-financial information about the company;
comparisons to the valuation and changes in valuation of similar securities,
including a comparison of foreign securities to the equivalent U.S. dollar value
ADR securities at the close of the U.S. exchange; and evaluation of any other
information that could be indicative of the value of the security.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
primary government securities dealers recognized by the Federal Reserve Board,
with member banks of the Federal Reserve System or with other brokers or dealers
that meet credit guidelines established by the Adviser and reviewed by the
Board. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
The Fund will always receive and maintain securities as collateral whose market
value, including accrued interest, will be at least equal to 102% of the dollar
amount invested by the Fund in each agreement. The Fund will make payment
9
GABELLI INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
for such securities only upon physical delivery or upon evidence of book entry
transfer of the collateral to the account of the custodian. To the extent that
any repurchase transaction exceeds one business day, the value of the collateral
is marked-to-market on a daily basis to maintain the adequacy of the collateral.
If the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited.
FORWARD FOREIGN EXCHANGE CONTRACTS. The Fund may engage in forward foreign
exchange contracts for hedging a specific transaction with respect to either the
currency in which the transaction is denominated or another currency as deemed
appropriate by the Adviser. Forward foreign exchange contracts are valued at the
forward rate and are marked-to-market daily. The change in market value is
included in unrealized appreciation/depreciation on investments and foreign
currency translations. When the contract is closed, the Fund records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate fluctuations in
the underlying prices of the Fund's portfolio securities, but it does establish
a rate of exchange that can be achieved in the future. Although forward foreign
exchange contracts limit the risk of loss due to a decline in the value of the
hedged currency, they also limit any potential gain that might result should the
value of the currency increase. In addition, the Fund could be exposed to risks
if the counterparties to the contracts are unable to meet the terms of their
contracts. At December 31, 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 currency translations. Net realized foreign currency
gains and losses resulting from changes in exchange rates include foreign
currency gains and losses between trade date and settlement date on investment
securities transactions, foreign currency transactions and the difference
between the amounts of interest and dividends recorded on the books of the Fund
and the amounts actually received. The portion of foreign currency gains and
losses related to fluctuation in exchange rates between the initial trade date
and subsequent sale trade date is included in realized gain/(loss) on
investments.
FOREIGN SECURITIES. The Fund may directly purchase securities of foreign
issuers. Investing in securities of foreign issuers involves special risks not
typically associated with investing in securities of U.S. issuers. The risks
include possible revaluation of currencies, the ability to repatriate funds,
less complete financial information about companies and possible future adverse
political and economic developments. Moreover, securities of many foreign
issuers and their markets may be less liquid and their prices more volatile than
those of securities of comparable U.S. issuers.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
Dividend income is recorded on the ex-dividend date or, for certain foreign
dividends, as soon as the Fund is informed of the ex-dividend date.
DETERMINATION OF NET ASSET VALUE AND CALCULATION OF EXPENSES. Certain
administrative expenses are common to, and allocated among, various affiliated
funds. Such allocations are made on the basis of each Fund's average net assets
or other criteria directly affecting the expenses as determined by the Adviser
pursuant to procedures established by the Board.
10
GABELLI INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
In calculating net asset value per share of each class, investment income,
realized and unrealized gains and losses, redemption fees and expenses other
than class specific expenses, are allocated daily to each class of shares based
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.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders are recorded on the ex-dividend date. Distributions to shareholders
are based on ordinary income and long-term capital gains as determined in
accordance with Federal income tax regulations, which may differ from income and
capital gains as determined under U.S. generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities and foreign currency transactions, timing
differences and differing characterizations of distributions made by the Fund.
These book/tax differences are either temporary or permanent in nature. To the
extent these differences are permanent, adjustments are made to the appropriate
equity accounts in the period that the differences arise.
For the year ended December 31, 2004, reclassifications were made to decrease
accumulated net investment income by $5,079 and to decrease accumulated net
realized loss on investments and foreign currency transactions by $5,079. These
reclassifications have no impact on the net asset value of the Fund and the
calculation of net investment income per share in the financial highlights
excludes these adjustments.
The tax character of distributions paid during the fiscal year ended December
31, 2004 and December 31, 2003 were as follows:
YEAR ENDED YEAR ENDED
DECEMBER 31, 2004 DECEMBER 31, 2003
----------------- -----------------
DISTRIBUTIONS PAID FROM:
Ordinary income
(inclusive of short term
capital gains) ............. $158,346 $34,273
-------- -------
Total distributions paid ...... $158,346 $34,273
======== =======
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. If the value of more than 50%
of the Fund's total assets at the close of any taxable year consists of stocks
or securities of non-U.S. corporations, the Fund is permitted and may elect to
treat any non-U.S. taxes paid by it as paid by its shareholders.
As of December 31, 2004, the components of accumulated earnings/(losses) on a
tax basis were as follows:
Undistributed ordinary income .................... $ 480
Capital loss carryforward ........................ (12,555,764)
Net unrealized appreciation on investments,
payable and receivables ........................ 12,972,214
------------
Total accumulated loss ........................... $ 416,930
============
11
GABELLI INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
At December 31, 2004, the Fund has net capital loss carryforwards for Federal
income tax purposes of $12,555,764, which are available to reduce future
required distributions of net capital gains to shareholders. $4,603,742 of the
loss carryforward is available through 2009; $5,226,116 is available through
2010; and $2,725,906 is available through 2011. For the year ended December 31,
2004, the Fund utilized net Federal tax capital loss carryforwards of
$1,212,008.
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 Directors 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, Class A, Class B and
Class C Share Plans, payments are authorized to Gabelli & Company at annual
rates of 0.25%, 0.25%, 1.00% and 1.00%, respectively, of the average daily net
assets of those Classes, the annual limitations under each Plan. Such payments
are accrued daily and paid monthly.
5. PORTFOLIO SECURITIES. Purchases and proceeds from the sales of securities for
the year ended December 31, 2004, other than short term securities, aggregated
$13,142,906 and $7,079,621, respectively.
6. LINE OF CREDIT. The Fund has access to an unsecured line of credit up to
$25,000,000 from the custodian for temporary borrowing purposes. Borrowings
under this arrangement bear interest at 0.75% above the Federal Funds rate on
outstanding balances. There were no borrowings outstanding at December 31, 2004.
The average daily amount of borrowings outstanding within the year ended
December 31, 2004, was $42,153, with a related weighted average interest rate of
2.15%. The maximum amount borrowed at any time during the year ended December
31, 2004 was $725,000.
7. CAPITAL STOCK TRANSACTIONS. The Fund offers four classes of shares -- Class
AAA Shares, Class A Shares, Class B Shares and Class C Shares. Class AAA Shares
are offered only to investors who acquire them directly from Gabelli & Company
or through selected broker/dealers without a sales charge. Class A Shares are
subject to a maximum front-end sales charge of 5.75%. Class B Shares are subject
to a contingent deferred sales charge ("CDSC") upon redemption within six years
of purchase. The applicable CDSC is equal to a declining percentage of the
lesser of the net asset value per share at the date of original purchase or at
the date of redemption, based on the length of time held. Class C Shares are
subject to a 1% CDSC for one year after purchase. As of July 27, 2004, Class B
Shares are available only through exchange of Class B Shares of other Funds
distributed by Gabelli & Company.
The Fund imposes a redemption fee of 2.00% on Class AAA, Class A, Class B and
Class C Shares that are redeemed or exchanged within 60 days after the date of a
purchase. For Class B and Class C Shares the 2% redemption fee applies to shares
purchased on or after July 1, 2004. The redemption fee is deducted from the
proceeds otherwise payable to the redeeming shareholders and retained by the
Fund. The redemption fees retained by the Fund during the year ended December
31, 2004 amounted to $52,949.
The redemption fee did not apply to shares purchased through programs that the
Adviser determined to have appropriate short-term trading policies in
place. Additionally, certain recordkeepers for qualified and non-qualified
retirement plans that could not collect the redemption fee at the participant
level due to systems limitations have received an extension until March 31, 2005
to implement such systems.
12
GABELLI INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
Transactions in shares of capital stock were as follows:
YEAR ENDED YEAR ENDED
DECEMBER 31, 2004 DECEMBER 31, 2003
----------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- --------- ------------
CLASS AAA CLASS AAA
----------------------- -------------------------
Shares sold ..................................... 917,553 $15,276,196 3,040,870 $ 35,489,086
Shares issued upon reinvestment of dividends .... 7,822 145,792 2,002 31,787
Shares redeemed .................................(578,136) (9,459,237) (3,447,435) $(40,204,211)
-------- ----------- --------- ------------
Net increase/(decrease) ....................... 347,239 $ 5,962,751 (404,563) $ (4,683,338)
======== =========== ========= ============
CLASS A CLASS A
----------------------- -------------------------
Shares sold ..................................... 6,755 $ 114,017 5,826 $ 82,800
Shares issued upon reinvestment of dividends .... 30 549 4 61
Shares redeemed ................................. (1,640) (27,069) (386) (5,030)
-------- ----------- --------- ------------
Net increase .................................. 5,145 $ 87,497 5,444 $ 77,831
======== =========== ========= ============
CLASS B CLASS B
----------------------- -------------------------
Shares sold ..................................... 4,040 $ 66,056 196 $ 2,638
Shares issued upon reinvestment of dividends .... -- -- -- --
Shares redeemed ................................. (852) (13,520) (1) (25)
-------- ----------- --------- ------------
Net increase .................................. 3,188 $ 52,536 195 $ 2,613
======== =========== ========= ============
CLASS C CLASS C
----------------------- -------------------------
Shares sold ..................................... 1,665 $ 26,425 116,086 $ 1,496,146
Shares issued upon reinvestment of dividends .... -- -- -- --
Shares redeemed ................................. (1,665) (26,466) (116,086) (1,529,393)
-------- ----------- --------- ------------
Net decrease .................................. -- $ (41) -- $ (33,247)
======== =========== ========= ============
8. TRANSACTIONS WITH AFFILIATES. During the year ended December 31, 2004,
Gabelli & Company informed the Fund that it received $1,208 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 between the Fund and the Adviser. During the
year ended December 31, 2004, the Fund reimbursed the Adviser $5,800 in
connection with the cost of computing the Fund's net asset value, which is
included in miscellaneous expenses in the Statement of Operations.
9. OTHER MATTERS. The Adviser and/or affiliates have received subpoenas from the
Attorney General of the State of New York and the SEC requesting information on
mutual fund shares trading practices. Gabelli Asset Management Inc., the
Adviser's parent company, is responding to these requests. 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
GABELLI INTERNATIONAL GROWTH FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout each period:
INCOME
FROM INVESTMENT OPERATIONS DISTRIBUTIONS
--------------------------------------------------- ----------------------------------------
Net
Net Asset Net Realized and Total Net
Period Value, Investment Unrealized from Net Realized
Ended Beginning Income/ Gain/(Loss) on Investment Investment Gain on Total
December 31 of Period (Loss)(a) Investments Operations Income Investments Distributions
- ----------- --------- ---------- -------------- ---------- ---------- ----------- -------------
CLASS AAA
2004 $16.10 $0.06 $2.62 $2.68 $(0.05) -- $(0.05)
2003 11.79 0.01 4.27 4.28 (0.01) -- (0.01)
2002 13.74 0.01 (1.95) (1.94) (0.01) -- (0.01)
2001 18.29 0.17 (4.51) (4.34) (0.18) $(0.03) (0.21)
2000 22.82 (0.13) (3.65) (3.78) -- (0.75) (0.75)
CLASS A
2004 $16.28 $0.07 $2.61 $2.68 $(0.06) -- $(0.06)
2003 11.91 (0.04) 4.39 4.35 (0.03) -- (0.03)
2002 13.74 (0.05) (1.74) (1.79) (0.04) -- (0.04)
2001(d) 14.88 (0.23) (0.69) (0.92) (0.19) $(0.03) (0.22)
CLASS B
2004 $15.87 $(0.04) $2.55 $2.51 -- -- --
2003 11.70 (0.09) 4.22 4.13 -- -- --
2002 13.73 (0.09) (1.94) (2.03) -- -- --
2001 17.68 0.12 (3.95) (3.83) $(0.09) $(0.03) $(0.12)
CLASS C
2004 $15.73 $(0.07) $2.56 $2.49 -- -- --
2003 11.70 (0.11) 4.12 4.01 -- -- --
2002 13.74 (0.10) (1.94) (2.04) -- -- --
2001 18.28 0.07 (4.51) (4.44) $(0.07) $(0.03) $(0.10)
2000(b) 25.94 (0.12) (6.79) (6.91) -- (0.75) (0.75)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
----------------------------------------------------------------------
Operating
Net Asset Net Assets Net Expense
Period Value, End of Investment Ratio Portfolio
Ended Redemption End of Total Period Income/ Operating (Net of Turnover
December 31 Fees(a) Period Return+ (in 000's) (Loss) Expenses Interest) Rate
- ----------- ---------- --------- ------- ---------- ---------- --------- --------- ---------
CLASS AAA
2004 $0.02 $18.75 16.8% $55,427 0.35% 1.84% 1.84% 16%
2003 0.04 16.10 36.7 42,009 0.07 1.97 1.94 19
2002 -- 11.79 (14.1) 35,536 0.05 1.90 1.89 25
2001 -- 13.74 (23.7) 47,172 1.14 1.86 1.80 31
2000 -- 18.29 (16.5) 66,057 (0.68) 1.77 1.75 62
CLASS A
2004 $0.02 $18.92 16.8% $202 0.40% 1.84% 1.84% 16%
2003 0.05 16.28 36.7 90 (0.29) 1.93 1.90 19
2002 -- 11.91 (13.1) 1 (0.36) 1.43 1.43 25
2001(d) -- 13.74 (6.2) 1 (3.85)(c) 1.86(c) 1.86(c) 31
CLASS B
2004 $0.02 $18.40 15.9% $84 (0.23)% 2.59% 2.59% 16%
2003 0.04 15.87 35.6 22 (0.73) 2.71 2.69 19
2002 -- 11.70 (14.8) 14 (0.69) 2.65 2.64 25
2001 -- 13.73 (21.7) 18 0.82(c) 2.60(c) 2.56(c) 31
CLASS C
2004 $0.02 $18.24 16.0% $5 (0.40)% 2.59% 2.59% 16%
2003 0.02 15.73 34.4 5 (0.84) 2.82 2.82 19
2002 -- 11.70 (14.9) 3 (0.78) 2.61 2.61 25
2001 -- 13.74 (24.3) 4 0.43 2.64 2.59 31
2000(b) -- 18.28 (26.6) 5 (1.43)(c) 2.52(c) 2.50(c) 62
- ----------
+ 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) Per share amounts have been calculated using the average shares outstanding
method.
(b) From the commencement of offering of Class C Shares on March 9, 2000.
(c) Annualized.
(d) Class A Shares were outstanding for the period March 13, 2000 through
November 30, 2000. Financial Highlights are not presented for Class A Shares
for that period as the information is not considered meaningful.
See accompanying notes to financial statements.
14
GABELLI INTERNATIONAL GROWTH FUND, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors of
The Gabelli International Growth Fund, Inc.
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of the Gabelli International Growth Fund, Inc. (the
"Fund"), as of December 31, 2004, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
periods indicated therein. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Fund's
internal control over financial reporting. Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements and financial
highlights, assessing the accounting principles used and significant estimates
made by management and evaluating the overall financial statement presentation.
Our procedures included confirmation of securities owned as of December 31,
2004, by correspondence with the Fund's custodian and brokers or by other
appropriate auditing procedures where replies from brokers were not received. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Gabelli International Growth Fund, Inc. at December 31, 2004, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the periods indicated therein, in conformity with U.S. generally accepted
accounting principles.
/s/ ERNST & YOUNG LLP
New York, New York
February 11, 2005
15
GABELLI INTERNATIONAL GROWTH FUND, INC.
ADDITIONAL FUND INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
The business and affairs of the Fund are managed under the direction of the
Fund's Board of Directors. Information pertaining to the Directors and officers
of the Fund is set forth below. The Fund's Statement of Additional Information
includes additional information about the Fund's Directors and is available,
without charge, upon request, by calling 800-GABELLI (800-422-3554) or by
writing to Gabelli International Growth Fund, Inc. at One Corporate Center, Rye,
NY 10580-1422.
TERM OF NUMBER OF
NAME, POSITION(S) OFFICE AND FUNDS IN FUND
ADDRESS 1 LENGTH OF COMPLEX OVERSEEN PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIPS
AND AGE TIME SERVED 2 BY DIRECTOR DURING PAST FIVE YEARS HELD BY DIRECTOR 4
- ---------------- ------------ --------------- ----------------------- --------------------
INTERESTED DIRECTORS 3:
- ----------------------
MARIO J. GABELLI Since 1994 24 Chairman of the Board, Chief Executive Director of Morgan Group
Director Officer of Gabelli Asset Management Inc. and Holdings, Inc.
Age: 62 Chief Investment Officer of Gabelli Funds, (holding company)
LLC and GAMCO Investors, Inc.; Vice Chairman
and Chief Executive Officer of Lynch
Interactive Corporation (multimedia and
services)
KARL OTTO POHL Since 1994 34 Member of the Shareholder Committee of Sal Director of Gabelli Asset
Director Oppenheim Jr. & Cie (private investment Management Inc. (investment
Age: 75 bank); Former President of the management); Chairman,
Deutsche Bundesbank and Chairman of its Incentive Capital and
Central Bank (1980-1991) Incentive Asset
Management (Zurich);
Director at Sal Oppenheim
Jr. & Cie, Zurich
NON-INTERESTED DIRECTORS:
- ------------------------
ANTHONY J. COLAVITA Since 1994 36 President and Attorney at Law in the --
Director law firm of Anthony J. Colavita, P.C.
Age: 69
WERNER J. ROEDER, MD Since 1994 26 Medical Director of Lawrence Hospital and --
Director practicing private physician
Age: 64
ANTHONIE C. VAN EKRIS Since 1994 20 Managing Director of BALMAC Director of Aurado Energy, Inc.
Director International, Inc. (commodities) (oil and gas operations)
Age: 70
SALVATORE J. ZIZZA Since 2004 24 Chairman, Hallmark Electrical Supplies Corp. Director of Hollis Eden
Director Pharmaceuticals;
Age: 59 Director of Earl Scheib, Inc.
(automotive services)
16
GABELLI INTERNATIONAL GROWTH FUND, INC.
ADDITIONAL FUND INFORMATION (CONTINUED) (UNAUDITED)
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TERM OF NUMBER OF
NAME, POSITION(S) OFFICE AND FUNDS IN FUND
ADDRESS 1 LENGTH OF COMPLEX OVERSEEN PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIPS
AND AGE TIME SERVED 2 BY DIRECTOR DURING PAST FIVE YEARS HELD BY DIRECTOR 4
- ---------------- ------------ --------------- ----------------------- --------------------
OFFICERS:
- --------
BRUCE N. ALPERT Since 1994 -- Executive Vice President and Chief Operating --
President and Treasurer Officer of Gabelli Funds, LLC since 1988 and
Age: 53 an officer of all mutual funds advised by
Gabelli Funds, LLC and its affiliates.
Director and President of Gabelli Advisers, Inc.
JAMES E. MCKEE Since 1995 -- Vice President, General Counsel and Secretary --
Secretary of Gabelli Asset Management Inc. since 1999
Age: 41 and GAMCO Investors, Inc. since 1993; Secretary
of all mutual funds advised by Gabelli Advisers,
Inc. and Gabelli Funds, LLC
PETER GOLDSTEIN Since 2004 -- Director of Regulatory Affairs at Gabelli --
Chief Compliance Officer Asset Management Inc. since February 2004;
Age: 51 Vice President of Goldman Sachs
Asset Management from November 2000 through
January 2004; Deputy General Counsel at
Gabelli Asset Management Inc. from
February 1998 through November 2000
- ----------
1 Address: One Corporate Center, Rye, NY 10580-1422, unless otherwise noted.
2 Each Director will hold office for an indefinite term until the earliest of
(i) the next meeting of shareholders if any, called for the purpose of
considering the election or re-election of such Director and until the
election and qualification of his or her successor, if any, elected at such
meeting, or (ii) the date a Director resigns or retires, or a Director is
removed by the Board of Directors or shareholders, in accordance with the
Fund's ByLaws and Articles of Incorporation. Each officer will hold office for
an indefinite term until the date he or she resigns or retires or until his or
her successor is elected and qualified.
3 "Interested person" of the Fund as defined in the Investment Company Act of
1940. Messrs. Gabelli and Pohl are each considered an "interested person"
because of their affiliation with Gabelli Funds, LLC which acts as the Fund's
investment adviser.
4 This column includes only directorships of companies required to report to the
SEC under the Securities Exchange Act of 1934 (i.e. public companies) or other
investment companies registered under the 1940 Act.
17
GABELLI INTERNATIONAL GROWTH FUND, INC.
ADDITIONAL FUND INFORMATION (CONTINUED) (UNAUDITED)
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2004 TAX NOTICE TO SHAREHOLDERS (Unaudited)
For the year ended December 31, 2004, the Fund paid to shareholders, on
December 29, 2004, an ordinary income dividend (comprised of net investment
income and short-term capital gains) totaling $0.0537 and $0.0593 per share
for Class AAA and Class A, respectively. For the year ended December 31,
2004, none of the distribution qualifies for the dividend received deduction
available to corporations, and 100% of the ordinary income distributions was
qualifying dividend income. Also for the year ended December 31, 2004, the
Fund passed through foreign tax credits of $0.0325 per share to Class AAA and
Class A shareholders. The foreign source income and tax credits by country
are presented in the table below. Visit www.gabelli.com for more information
about 2004 foreign source income and foreign taxes paid.
U.S. GOVERNMENT INCOME
The percentage of the ordinary income dividend paid by the Fund during fiscal
year 2004 which was derived from U.S. Treasury securities was 1.05%. Such
income is exempt from state and local tax in all states. However, many
states, including New York and California, allow a tax exemption for a
portion of the income earned only if a mutual fund has invested at least 50%
of its assets at the end of each quarter of the Fund's fiscal year in U.S.
Government securities. The Gabelli International Growth Fund did not meet
this strict requirement in 2004. Due to the diversity in state and local tax
law, it is recommended that you consult your personal tax advisor as to the
applicability of the information provided to your specific situation.
- --------------------------------------------------------------------------------
FOREIGN SOURCE INCOME AND TAX CREDITS BY COUNTRY FOR 2004 (UNAUDITED)
GABELLI INTERNATIONAL GROWTH FUND
---------------------------------
Foreign Source Foreign Qualifying
Income % Income % Foreign Tax %
-------------- ------------------- -------------
Australia 4.64 4.69 0.18
Belgium 0.91 0.92 1.51
France 15.79 15.95 26.17
Germany 0.34 0.35 0.57
Greece 4.49 4.53 0.00
Hong Kong 1.02 0.00 0.00
Ireland 9.63 9.73 0.00
Italy 11.64 11.76 17.93
Japan 7.02 7.10 5.43
South Africa 1.01 1.02 0.03
Spain 4.60 4.65 7.63
Sweden 1.70 1.71 2.20
Switzerland 9.39 9.48 10.55
United Kingdom 26.14 26.41 27.80
18
GABELLI INTERNATIONAL GROWTH FUND, INC.
One Corporate Center
Rye, New York 10580-1422
800-GABELLI
800-422-3554
FAX: 914-921-5118
WEBSITE: WWW.GABELLI.COM
E-MAIL: INFO@GABELLI.COM
Net Asset Value available daily by calling
800-GABELLI after 6:00 P.M.
BOARD OF DIRECTORS
Mario J. Gabelli, CFA Werner J. Roeder, MD
CHAIRMAN AND CHIEF MEDICAL DIRECTOR
INVESTMENT OFFICER LAWRENCE HOSPITAL
GABELLI ASSET MANAGEMENT INC.
Anthony J. Colavita Anthonie C. van Ekris
ATTORNEY-AT-LAW MANAGING DIRECTOR
ANTHONY J. COLAVITA, P.C. BALMAC INTERNATIONAL, INC.
Karl Otto Pohl Salvatore J. Zizza
FORMER PRESIDENT CHAIRMAN
DEUTSCHE BUNDESBANK HALLMARK ELECTRICAL SUPPLIES CORP.
OFFICERS AND PORTFOLIO MANAGER
Caesar Bryan Bruce N. Alpert
PORTFOLIO MANAGER PRESIDENT AND TREASURER
James E. McKee Peter Goldstein
SECRETARY CHIEF COMPLIANCE OFFICER
DISTRIBUTOR
Gabelli & Company, Inc.
CUSTODIAN, TRANSFER AGENT AND DIVIDEND AGENT
State Street Bank and Trust Company
LEGAL COUNSEL
Willkie Farr & Gallagher LLP
- --------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of
Gabelli International Growth Fund, Inc. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective prospectus.
- --------------------------------------------------------------------------------
GAB009Q404SR
ITEM 2. CODE OF ETHICS.
(a) The registrant, as of the end of the period covered by this report, has
adopted a code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant
or a third party.
(c) There have been no amendments, during the period covered by this report,
to a provision of the code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code
of ethics description.
(d) The registrant has not granted any waivers, including an implicit
waiver, from a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the registrant or a third party, that relates to one or more of the
items set forth in paragraph (b) of this item's instructions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
As of the end of the period covered by the report, the registrant's Board of
Directors has determined that Salvatore J. Zizza is qualified to serve as an
audit committee financial expert serving on its audit committee and that he is
"independent," as defined by Item 3 of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Audit Fees
- ----------
(a) The aggregate fees billed for each of the last two fiscal years for
professional services rendered by the principal accountant for the audit
of the registrant's annual financial statements or services that are
normally provided by the accountant in connection with statutory and
regulatory filings or engagements for those fiscal years are $32,100 in
2004 and $30,000 in 2003.
Audit-Related Fees
- ------------------
(b) The aggregate fees billed in each of the last two fiscal years for
assurance and related services by the principal accountant that are
reasonably related to the performance of the audit of the
registrant's financial statements and are not reported under paragraph
(a) of this Item are $0 in 2004 and $0 in 2003.
Tax Fees
- --------
(c) The aggregate fees billed in each of the last two fiscal years for
professional services rendered by the principal accountant for tax
compliance, tax advice, and tax planning are $3,600 in 2004 and $3,400
in 2003.
Tax fees represent tax compliance services provided in connection with
the review of the Registrant's tax returns.
All Other Fees
- --------------
(d) The aggregate fees billed in each of the last two fiscal years for
products and services provided by the principal accountant, other than
the services reported in paragraphs (a) through (c) of this Item are $0
in 2004 and $0 in 2003.
(e)(1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
Pre-Approval Policies and Procedures. The Audit Committee
("Committee") of the registrant is responsible for pre-approving (i)
all audit and permissible non-audit services to be provided by the
independent auditors to the registrant and (ii) all permissible
non-audit services to be provided by the independent auditors to the
Adviser, Gabelli Funds, LLC, and any affiliate of Gabelli Funds, LLC
("Gabelli") that provides services to the registrant (a "Covered
Services Provider") if the independent auditors' engagement related
directly to the operations and financial reporting of the registrant.
The Committee may delegate its responsibility to pre-approve any such
audit and permissible non-audit services to the Chairperson of the
Committee, and the Chairperson must report to the Committee, at its
next regularly scheduled meeting after the Chairperson's pre-approval
of such services, his or her decision(s). The Committee may also
establish detailed pre-approval policies and procedures for
pre-approval of such services in accordance with applicable laws,
including the delegation of some or all of the Committee's
pre-approval responsibilities to the other persons (other than
Gabelli or the registrant's officers). Pre-approval by the Committee
of any permissible non-audit services is not required so long as: (i)
the aggregate amount of all such permissible non-audit services
provided to the registrant, Gabelli and any Covered Services Provider
constitutes not more than 5% of the total amount of revenues paid by
the registrant to its independent auditors during the fiscal year in
which the permissible non-audit services are provided; (ii) the
permissible non-audit services were not recognized by the registrant
at the time of the engagement to be non-audit services; and (iii)
such services are promptly brought to the attention of the Committee
and approved by the Committee or Chairperson prior to the completion
of the audit.
(e)(2) The percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee
pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are
as follows:
(b) N/A
(c) 100%
(d) N/A
(f) The percentage of hours expended on the principal accountant's
engagement to audit the registrant's financial statements for the most
recent fiscal year that were attributed to work performed by persons
other than the principal accountant's full-time, permanent employees was
zero percent (0%).
(g) The aggregate non-audit fees billed by the registrant's accountant for
services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by
another investment adviser), and any entity controlling, controlled by,
or under common control with the adviser that provides ongoing services
to the registrant for each of the last two fiscal years of the
registrant was $68,600 in 2004 and $62,400 in 2003.
(h) The registrant's audit committee of the board of directors has
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser (not including any
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by another investment adviser), and any
entity controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant that
were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS
Schedule of Investments in securities of unaffiliated issuers as of the close of
the reporting period is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Board of Directors has a Nominating Committee comprised of three
"non-interested" (as such term is defined by the Investment Company Act of 1940,
as amended) Directors, 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 Director
candidates recommended by shareholders. In considering candidates submitted by
shareholders, the Nominating Committee will take into consideration the needs of
the Board of Directors, 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 Director of the Fund and the person's consent
to be named as a Director if selected by the Nominating Committee and
nominated by the Board of Directors; 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 Director 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 Directors' oversight on 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 Directors represent a diversity of backgrounds and
experience.
The Fund's Nominating Committee has adopted a Nominating Committee Charter.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the "1940
Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days
of the filing date of the report that includes the disclosure required
by this paragraph, based on their evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's second fiscal
quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Code of ethics, that is the subject of disclosure required by Item 2,
filed as exhibit (a)(1) to the Registrant's Form N-CSR, filed on
March 10, 2004 (Accession No. 0000935069-04-000470).
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) Gabelli International Growth Fund, Inc.
--------------------------------------------------------------------
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date March 9, 2005
----------------------------------------------------------------------------
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 March 9, 2005
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.