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
------------
GAMCO 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
---------------
Date of fiscal year end: December 31
------------
Date of reporting period: December 31, 2005
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549. The OMB has reviewed this collection of information under
the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
GAMCO INTERNATIONAL GROWTH FUND, INC.
ANNUAL REPORT
DECEMBER 31, 2005
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, 2005 with a description of factors that affected the
performance during the past year.
PERFORMANCE DISCUSSION
For 2005, the GAMCO International Growth Fund returned 10.5% compared with
a rise of 14.0% for the MSCI EAFE Index and 15.4% for the average International
Multi-Cap Growth Fund monitored by Lipper.
The Japanese equity market was rerated in 2005. Japan was the top
performer among leading non-U.S. equity markets. Again smaller companies
outperformed with the TOPIX second section index rallying 41.9% in 2005. Most of
the Japanese holdings in the Fund in 2005 had a total return of over 25% in
2005, among them Nikko Cordial Corp., Secom Co. Ltd., Hisamitsu Pharmaceutical
Co. Inc., Keyence Corp., Tokai Carbon Co. Ltd., and Matsumotokiyoshi Co. Ltd.
Clearly, the European story does not revolve around growth. Rather it is
based on corporate self help. Corporate managers are acutely aware of the need
to create shareholder value, as Europe has become the center of global merger
and acquisition activity in 2005. Two investment bank holdings, which facilitate
merger and acquisition deals, UBS AG and Credit Suisse Group, were up 40.2% and
31.3% in 2005, respectively.
The Fund's metal mining holdings had an outstanding 2005, including
Harmony Gold Mining Co. Ltd. (+65.8%), Xstrata plc (+45.6%), and Newmont Mining
Corp. (+20.2%). Another top performing sector in our portfolio during the last
year was energy and utilities. Among the best performing energy and utility
companies in 2005 were Petrobras Brasiliero SA (+79.2%), Total SA (+32.1%), and
Eni SpA (+27.2%). Pharmaceuticals and healthcare holdings were also on the
upswing in the past twelve months with Astrazeneca plc, Roche Holding AG,
Hisamitsu Pharmaceuticals Co. Inc. and William Demant Holding A/S each recording
gains of more than 30%.
The dollar benefited during the past year from strong inflows from
overseas investors, which had a negative impact on the dollar denominated return
of the Fund.
Entertainment and media companies underperformed the market in 2005. Of
the portfolio holdings Publishing & Broadcasting Ltd. (-5.8%) and Mediaset SpA
(-3.9%) dragged returns. Other Fund holdings that disappointed in 2005 were
Ajinomoto Co. Inc. (-0.7%), Synthes Inc. (unchanged), Smith & Nephew plc
(+0.4%), and Cheung Kong (Holdings) Ltd. (+2.7%).
Sincerely yours,
/s/ Bruce N. Alpert
Bruce N. Alpert
President
February 17, 2006
[GRAPHIC OMITTED]
PLOT POINTS FOLLOW:
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE GAMCO
INTERNATIONAL GROWTH FUND, THE LIPPER INTERNATIONAL FUND AVERAGE
AND THE MORGAN STANLEY EAFE INDEX
GAMCO 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 11,545
12/31/97 14,399 12,799 11,783
12/31/98 16,901 14,466 14,179
12/31/99 25,760 20,377 18,050
12/31/00 21,512 17,198 15,530
12/31/01 16,409 13,464 12,236
12/31/02 14,092 11,220 10,320
12/31/03 19,260 15,116 14,362
12/31/04 22,496 17,632 17,335
12/31/05 24,856 20,336 19,765
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, 2005 (A)
----------------------------------------------------
Since
Inception
Quarter 1 Year 3 Year 5 Year 10 Year (6/30/95)
- --------------------------------------------------------------------------------------------------------------------
GAMCO INTERNATIONAL GROWTH FUND CLASS AAA .......... 3.95% 10.49% 20.82% 2.93% 8.51% 9.04%
MSCI EAFE Index .................................... 4.12 14.02 24.18 4.94 6.18 6.70
Lipper International Multi-Cap Growth Fund Average 5.46 15.40 22.51 2.53 6.79 6.68
Class A ............................................ 3.95 10.54 20.85 3.22 8.66 9.19
(2.04)(b) 4.21(b) 18.48(b) 2.00(b) 8.02(b) 8.57(b)
Class B ............................................ 3.75 9.67 19.93 2.16 8.11 8.66
(1.25)(c) 4.67(c) 19.23(c) 1.79(c) 8.11(c) 8.66(c)
Class C ............................................ 3.75 9.89 19.66 2.00 8.02 8.57
2.75(c) 8.89(c) 19.66(c) 2.00(c) 8.02(c) 8.57(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.
PERFORMANCE RETURNS FOR PERIODS LESS THAN ONE YEAR ARE 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, CHARGES, AND EXPENSES OF THE FUND CAREFULLY BEFORE INVESTING. THE
PROSPECTUS CONTAINS MORE INFORMATION ABOUT THIS AND OTHER MATTERS AND
SHOULD BE READ CAREFULLY BEFORE INVESTING.
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.
CLASS B SHARES ARE NOT AVAILABLE FOR NEW PURCHASES.
- --------------------------------------------------------------------------------
2
GAMCO INTERNATIONAL GROWTH FUND, INC.
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
For the Six Month Period from July 1, 2005 through December 31, 2005
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, 2005.
Beginning Ending Annualized Expenses
Account Value Account Value Expense Paid During
07/01/05 12/31/05 Ratio Period*
- --------------------------------------------------------------------------------
GAMCO INTERNATIONAL GROWTH FUND, INC.
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Class AAA $1,000.00 $1,142.70 1.88% $10.15
Class A $1,000.00 $1,142.90 1.87% $10.10
Class B $1,000.00 $1,138.20 2.63% $14.17
Class C $1,000.00 $1,138.90 2.65% $14.29
HYPOTHETICAL 5% RETURN
Class AAA $1,000.00 $1,015.73 1.88% $ 9.55
Class A $1,000.00 $1,015.78 1.87% $ 9.50
Class B $1,000.00 $1,011.95 2.63% $13.34
Class C $1,000.00 $1,011.85 2.65% $13.44
* 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 365.
3
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)
The following table presents portfolio holdings as a percent of total net assets
as of December 31, 2005:
GAMCO INTERNATIONAL GROWTH FUND, INC.
Health Care ....................................... 16.1%
Consumer Products ................................. 10.9%
Financial Services: Banks ......................... 8.4%
Building and Construction ......................... 8.1%
Energy and Utilities .............................. 7.8%
Food and Beverage ................................. 6.5%
Entertainment ..................................... 5.4%
Metals and Mining ................................. 5.1%
Broadcasting ...................................... 4.4%
Retail ............................................ 4.3%
Hotels and Gaming ................................. 4.3%
Business Services ................................. 4.2%
Electronics ....................................... 3.9%
Financial Services ................................ 3.7%
Financial Services: Insurance ..................... 2.2%
Specialty Chemicals ............................... 1.2%
Telecommunications ................................ 1.1%
Wireless Communications ........................... 0.9%
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 LAST OF WHICH WAS
FILED FOR THE QUARTER ENDED SEPTEMBER 30, 2005. 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, procedures, and how the Fund voted proxies
relating to portfolio securities are available without charge, upon request, (i)
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
GAMCO INTERNATIONAL GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS -- DECEMBER 31, 2005
================================================================================
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS -- 99.4%
BROADCASTING -- 4.4%
85,000 Mediaset SpA ....................$ 695,539 $ 900,648
25,000 Modern Times Group, Cl. B+ ...... 673,127 1,043,174
4,500 Nippon Television Network Corp. 740,051 691,779
----------- -----------
2,108,717 2,635,601
----------- -----------
BUILDING AND CONSTRUCTION -- 8.1%
20,000 Bouygues SA ..................... 550,895 977,897
60,750 CRH plc ......................... 896,276 1,787,251
50,000 Sekisui House Ltd. .............. 537,198 629,160
24,000 Technip SA ...................... 652,173 1,443,404
----------- -----------
2,636,542 4,837,712
----------- -----------
BUSINESS SERVICES -- 4.2%
14,000 Canon Inc. ...................... 815,874 819,095
500 NIWS Co. Ltd. ................... 618,576 682,580
19,000 Secom Co. Ltd. .................. 813,796 994,022
----------- -----------
2,248,246 2,495,697
----------- -----------
CONSUMER PRODUCTS -- 10.9%
29,000 Altadis SA ...................... 430,304 1,315,638
17,000 Christian Dior SA ............... 855,329 1,511,478
53,000 Compagnie Financiere
Richemont AG, Cl. A ........... 992,176 2,307,066
45,000 Gallaher Group plc .............. 496,236 679,378
5,000 Swatch Group AG, Cl. B .......... 575,853 741,981
----------- -----------
3,349,898 6,555,541
----------- -----------
ELECTRONICS -- 3.9%
3,500 Keyence Corp. ................... 728,745 995,676
6,400 Rohm Co. Ltd. ................... 1,353,437 696,248
10,000 Tokyo Electron Ltd. ............. 508,650 628,312
----------- -----------
2,590,832 2,320,236
----------- -----------
ENERGY AND UTILITIES -- 7.8%
56,000 Eni SpA ......................... 1,044,961 1,553,364
17,000 Petroleo Brasileiro SA, ADR ..... 701,180 1,211,590
25,000 Saipem SpA ...................... 427,755 410,219
5,944 Total SA ........................ 932,832 1,493,266
----------- -----------
3,106,728 4,668,439
----------- -----------
ENTERTAINMENT -- 5.4%
13,500 Oriental Land Co. Ltd. .......... 805,171 736,041
146,000 Publishing & Broadcasting Ltd. .. 1,026,002 1,763,898
24,000 Vivendi Universal SA ............ 599,739 751,820
----------- -----------
2,430,912 3,251,759
----------- -----------
MARKET
SHARES COST VALUE
------ ---- ------
FINANCIAL SERVICES -- 3.7%
40,000 Irish Life & Permanent plc,
London ........................$ 314,039 $ 814,046
90,000 Nikko Cordial Corp. ............. 1,233,959 1,425,531
----------- -----------
1,547,998 2,239,577
----------- -----------
FINANCIAL SERVICES: BANKS -- 8.4%
60,006 Bank of Ireland ................. 387,193 944,842
14,000 Credit Suisse Group ............. 636,815 713,824
75,000 Shizuoka Bank Ltd. .............. 745,718 751,685
35,000 Standard Chartered plc .......... 684,063 779,812
13,000 UBS AG .......................... 731,879 1,237,624
35,000 Westpac Banking Corp. ........... 550,221 583,731
----------- -----------
3,735,889 5,011,518
----------- -----------
FINANCIAL SERVICES: INSURANCE -- 2.2%
4,500 Allianz AG ...................... 558,064 681,603
55,000 Aviva plc ....................... 577,162 667,120
----------- -----------
1,135,226 1,348,723
----------- -----------
FOOD AND BEVERAGE -- 6.5%
50,000 Ajinomoto Co. Inc. .............. 596,119 511,723
20,000 ARIAKE JAPAN Co. Ltd. ........... 457,378 492,644
55,000 Cadbury Schweppes plc ........... 566,705 519,975
20,000 Coca-Cola Hellenic
Bottling Co. SA ............... 270,013 589,106
70,000 Diageo plc ...................... 616,826 1,014,658
4,500 Pernod-Ricard SA ................ 325,884 785,277
----------- -----------
2,832,925 3,913,383
----------- -----------
HEALTH CARE -- 16.1%
1,875 AstraZeneca plc, London ......... 85,577 91,261
14,126 AstraZeneca plc, Stockholm ...... 532,974 690,786
38,140 GlaxoSmithKline plc ............. 1,096,358 963,950
13,000 Hisamitsu Pharmaceutical Co. Inc. 317,360 327,384
25,000 Novartis AG ..................... 953,728 1,313,687
9,000 Roche Holding AG ................ 926,761 1,351,318
17,372 Sanofi-Aventis .................. 923,306 1,521,929
60,000 Smith & Nephew plc .............. 542,091 552,793
3,000 Straumann Holding AG ............ 617,094 695,179
5,500 Synthes Inc. .................... 372,080 617,785
16,000 Takeda Pharmaceutical Co. Ltd. .. 846,985 865,561
12,000 William Demant Holding A/S+ ..... 541,308 663,599
----------- -----------
7,755,622 9,655,232
----------- -----------
HOTELS AND GAMING -- 4.3%
34,000 Greek Organization of
Football Prognostics SA ....... 377,389 1,171,345
220,000 Hilton Group plc ................ 858,406 1,375,875
----------- -----------
1,235,795 2,547,220
----------- -----------
See accompanying notes to financial statements.
5
GAMCO INTERNATIONAL GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED) -- DECEMBER 31, 2005
================================================================================
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
METALS AND MINING -- 5.1%
85,500 Harmony Gold Mining Co. Ltd.+ ...$ 534,222 $ 1,147,206
16,000 Harmony Gold Mining Co.
Ltd., ADR+ ..................... 86,109 208,800
18,000 Newmont Mining Corp. ............ 409,372 961,200
32,000 Xstrata plc ..................... 651,929 748,757
----------- -----------
1,681,632 3,065,963
----------- -----------
REAL ESTATE -- 0.9%
50,000 Cheung Kong (Holdings) Ltd. ..... 585,811 512,984
1,563 Prosperity REIT+ ................ 440 494
----------- -----------
586,251 513,478
----------- -----------
RETAIL -- 4.3%
24,000 Matsumotokiyoshi Co. Ltd. ....... 652,998 759,062
20,000 Next plc ........................ 526,629 528,190
30,400 Seven & I Holdings Co. Ltd.+ .... 902,824 1,301,734
----------- -----------
2,082,451 2,588,986
----------- -----------
SPECIALTY CHEMICALS -- 1.2%
150,000 Tokai Carbon Co. Ltd. ........... 616,011 696,994
----------- -----------
TELECOMMUNICATIONS -- 1.1%
110 KDDI Corp. ...................... 381,146 634,248
----------- -----------
WIRELESS COMMUNICATIONS -- 0.9%
241,376 Vodafone Group plc .............. 619,221 521,182
----------- -----------
TOTAL COMMON STOCKS ............. 42,682,042 $59,501,489
----------- -----------
TOTAL INVESTMENTS -- 99.4% ......$42,682,042 59,501,489
===========
OTHER ASSETS AND LIABILITIES (NET) -- 0.6% 369,379
-----------
NET ASSETS -- 100.0% ....................... $59,870,868
===========
- ----------------
+ Non-income producing security.
ADR American Depository Receipt
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
- -------------------------- ------- ------
Europe ................................. 64.7% $38,472,107
Japan .................................. 24.6 14,639,479
Asia/Pacific ........................... 4.8 2,861,106
South Africa ........................... 2.3 1,356,007
Latin America .......................... 2.0 1,211,590
North America .......................... 1.6 961,200
------ -----------
100.0% $59,501,489
====== ===========
See accompanying notes to financial statements.
6
GAMCO INTERNATIONAL GROWTH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2005
================================================================================
ASSETS:
Investments, at value (cost $42,682,042) ............... $ 59,501,489
Receivable for Fund shares sold ........................ 827,198
Dividends receivable ................................... 71,390
Other assets ........................................... 3,040
------------
TOTAL ASSETS ........................................... 60,403,117
------------
LIABILITIES:
Payable to custodian ................................... 197,014
Foreign currency, at value (cost $440) ................. 440
Payable for Fund shares redeemed ....................... 198,808
Payable for investment advisory fees ................... 49,461
Payable for distribution fees .......................... 12,405
Other accrued expenses ................................. 74,121
------------
TOTAL LIABILITIES ...................................... 532,249
------------
NET ASSETS applicable to 2,901,938 shares outstanding .. $ 59,870,868
============
NET ASSETS CONSIST OF:
Capital stock, each class at $0.001 par value .......... $ 2,902
Additional paid-in capital ............................. 54,264,525
Undistributed net investment income .................... 2,559
Accumulated net realized loss on investments
and foreign currency transactions ..................... (11,216,157)
Net unrealized appreciation on investments ............. 16,819,447
Net unrealized depreciation on foreign
currency translations ................................. (2,408)
------------
NET ASSETS ............................................. $ 59,870,868
============
SHARES OF CAPITAL STOCK:
CLASS AAA:
Net Asset Value, offering and redemption price
per share ($59,554,233 / 2,886,638 shares
outstanding; 375,000,000 shares authorized) ........... $20.63
============
CLASS A:
Net Asset Value and redemption price
per share ($252,282 / 12,105 shares
outstanding; 250,000,000 shares authorized) ........... $20.84
============
Maximum offering price per share
(NAV / 0.9425, based on maximum sales
charge of 5.75% of the offering price) ................ $22.11
============
CLASS B:
Net Asset Value and offering price per share
($49,163 / 2,436 shares outstanding;
125,000,000 shares authorized) ........................ $20.18(a)
============
CLASS C:
Net Asset Value and offering price per share
($15,190 / 759.4 shares outstanding;
125,000,000 shares authorized) ........................ $20.00(a)
============
- -------------------
(a) Redemption price varies based on the length of time held.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2005
================================================================================
INVESTMENT INCOME:
Dividends (net of foreign taxes of $107,176) ............... $1,256,876
Interest ................................................... 10,040
----------
TOTAL INVESTMENT INCOME .................................... 1,266,916
----------
EXPENSES:
Investment advisory fees ................................... 534,835
Distribution fees - Class AAA .............................. 132,855
Distribution fees - Class A ................................ 720
Distribution fees - Class B ................................ 469
Distribution fees - Class C ................................ 67
Legal and audit fees ....................................... 60,193
Shareholder communications expenses ........................ 50,937
Shareholder services fees .................................. 43,785
Custodian fees ............................................. 42,932
Registration fees .......................................... 34,505
Directors' fees ............................................ 10,329
Interest expense ........................................... 6,769
Miscellaneous expenses ..................................... 92,884
----------
TOTAL EXPENSES ............................................. 1,011,280
Less: Custodian fee credits ................................ (267)
----------
NET EXPENSES ............................................... 1,011,013
----------
NET INVESTMENT INCOME ...................................... 255,903
----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain on investments ........................... 1,904,004
Net realized loss on foreign currency transactions ......... (5,102)
Net change in unrealized appreciation/
depreciation on investments and foreign
currency translations ..................................... 3,280,428
----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY ....................... 5,179,330
----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................................... $5,435,233
==========
See accompanying notes to financial statements.
7
GAMCO INTERNATIONAL GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
================================================================================
YEAR ENDED YEAR ENDED
DECEMBER 31, 2005 DECEMBER 31, 2004
----------------- -----------------
OPERATIONS:
Net investment income ...................................................... $ 255,903 $ 160,365
Net realized gain on investments and foreign currency transactions ......... 1,898,902 1,206,913
Net change in unrealized appreciation/depreciation on investments
and foreign currency translations ......................................... 3,280,428 6,228,241
----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ....................... 5,435,233 7,595,519
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class AAA ................................................................ (247,787) (157,715)
Class A .................................................................. (901) (631)
Class C .................................................................. (34) --
----------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ........................................ (248,722) (158,346)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class AAA ................................................................ (1,027,448) 5,962,751
Class A .................................................................. 20,347 87,497
Class B .................................................................. (38,343) 52,536
Class C .................................................................. 8,608 (41)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS ...... (1,036,836) 6,102,743
----------- -----------
REDEMPTION FEES ............................................................ 2,588 52,949
----------- -----------
NET INCREASE IN NET ASSETS ................................................. 4,152,263 13,592,865
NET ASSETS:
Beginning of period ........................................................ 55,718,605 42,125,740
----------- -----------
End of period (including undistributed net investment income of
$2,559 and $480, respectively) ............................................ $59,870,868 $55,718,605
=========== ===========
See accompanying notes to financial statements.
8
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. ORGANIZATION. GAMCO International Growth Fund, Inc. (the "Fund"), formerly
Gabelli International Growth Fund, Inc., 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 with remaining maturities of 60 days or less that
are not credit impaired are valued at amortized cost, unless the Board
determines such amount does not reflect the securities' fair value, in which
case these securities will be 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 average of the latest bid and
asked prices. If there were no asked prices quoted on such day, the security is
valued using the closing bid price. 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
9
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
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 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. At December 31, 2005, there were no open repurchase
agreements.
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, 2005, there were no open forward foreign exchange
contracts.
FOREIGN CURRENCY TRANSLATIONS. 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 current exchange
rates. Purchases and sales of investment securities, income, and expenses are
translated at the exchange rate prevailing on the respective dates of such
transactions. Unrealized gains and losses that result from changes in foreign
exchange rates and/or changes in market prices of securities have been included
in unrealized appreciation/depreciation on investments and foreign currency
translations. Net realized foreign currency gains and losses resulting from
changes in exchange rates include foreign currency gains and losses between
trade date and settlement date on investment securities transactions, foreign
currency transactions, and the difference between the amounts of interest and
dividends recorded on the books of the 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.
10
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
FOREIGN TAXES. The Fund may be subject to foreign taxes on income, gains on
investments or currency repatriation, a portion of which may be recoverable. The
Fund will accrue such taxes and recoveries as applicable, based upon its current
interpretation of tax rules and regulations that exist in the markets in which
it invests.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded on the accrual
basis, Premiums and discounts on debt securities are amortized using the
effective yield to maturity method. Dividend income is recorded on the
ex-dividend date except for certain dividends which are recorded as soon as the
Fund is informed of the dividend.
DETERMINATION OF NET ASSET VALUE AND CALCULATION OF EXPENSES. Certain
administrative expenses are common to, and allocated among, various affiliated
funds. Such allocations are made on the basis of each Fund's average net assets
or other criteria directly affecting the expenses as determined by the Adviser
pursuant to procedures established by the Board.
In calculating net asset value ("NAV") per share of each class, investment
income, realized and unrealized gains and losses, redemption fees, and expenses
other than class specific expenses, are allocated daily to each class of shares
based upon the proportion of net assets of each class at the beginning of each
day. Distribution expenses are borne solely by the class incurring the expense.
CUSTODIAN FEE CREDITS. When cash balances are maintained in the custody account,
the Fund receives credits which are used to offset custodian fees. The gross
expenses paid under the custody arrangement are included in custodian fees in
the Statement of Operations with the corresponding expense offset shown as
"custodian fee credits".
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders are recorded on the ex-dividend date. Distributions to shareholders
are based on income and capital gains as determined in accordance with Federal
income tax regulations, which may differ from income and capital gains as
determined under 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 held by the
Fund, timing differences, and differing characterizations of distributions made
by the Fund. Distributions from net investment income include net realized gains
on foreign currency transactions. These book/tax differences are either
temporary or permanent in nature. To the extent these differences are permanent,
adjustments are made to the appropriate equity accounts in the period when the
differences arise. These reclassifications have no impact on the NAV of the Fund
and the calculation of net investment income per share in the Financial
Highlights excludes these adjustments. For the year ended December 31, 2005,
reclassifications were made to decrease accumulated net investment income by
$5,102 and to decrease accumulated net realized loss on investments and foreign
currency transactions by $5,102.
The tax character of distributions paid during the fiscal years ended December
31, 2005 and December 31, 2004 was as follows:
YEAR ENDED YEAR ENDED
DECEMBER 31, 2005 DECEMBER 31, 2004
----------------- -----------------
DISTRIBUTIONS PAID FROM:
Ordinary income
(inclusive of short-term capital gains) .... $248,722 $158,346
-------- --------
Total distributions paid ..................... $248,722 $158,346
======== ========
11
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
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 policy of the Fund 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.
As of December 31, 2005, the components of accumulated earnings/(losses) on a
tax basis were as follows:
Undistributed ordinary income .................... $ 2,559
Capital loss carryforward ........................ (10,651,599)
Net unrealized appreciation on investments and
foreign receivables and payables ............... 16,252,481
------------
Total accumulated gain ........................... $ 5,603,441
============
At December 31, 2005, the Fund has net capital loss carryforwards for Federal
income tax purposes of $10,651,599, which are available to reduce future
required distributions of net capital gains to shareholders. $2,699,577 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,
2005, the Fund utilized net capital loss carryforwards of $1,904,165.
The following summarizes the tax cost of investments and related unrealized
appreciation/depreciation at December 31, 2005:
GROSS GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
COST APPRECIATION DEPRECIATION (DEPRECIATION)
---- ------------ ------------ --------------
Investments ............... $43,246,600 $18,045,973 $(1,791,084) $16,254,889
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 its 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 affiliated persons of the Adviser.
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, 2005, other than short-term securities, aggregated
$10,120,028 and $11,053,743, respectively.
12
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
6. TRANSACTIONS WITH AFFILIATES. During the year ended December 31, 2005, the
Fund paid brokerage commissions of $229 to Gabelli & Company. Additionally,
Gabelli & Company informed the Fund that it received $2,810 from investors
representing commissions (sales charges and underwriting fees) on sales and
redemptions of Fund shares.
The cost of calculating the Fund's NAV per share is a Fund expense pursuant to
the Advisory Agreement between the Fund and the Adviser. During the year ended
December 31, 2005, the Fund reimbursed the Adviser $45,000 in connection with
the cost of computing the Fund's NAV, 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 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. At December 31, 2005, there were no borrowings outstanding
from the line of credit.
The average daily amount of borrowings outstanding from the line of credit
within the year ended December 31, 2005, was $170,418, with a weighted average
interest rate of 3.82%. The maximum amount borrowed at any time during the year
ended December 31, 2005 was $1,680,000.
8. CAPITAL STOCK TRANSACTIONS. The Fund currently 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 and automatically convert to Class A Shares
approximately eight years after the original purchase. The applicable CDSC is
equal to a declining percentage of the lesser of the NAV 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. Class
B Shares are available only through exchange of Class B Shares of other funds
distributed by Gabelli & Company. The Board has approved Class I Shares which
have not been offered publicly.
Effective June 15, 2005, the Fund imposed a redemption fee of 2.00% on Class AAA
Shares, Class A Shares, Class B Shares, and Class C Shares that are redeemed or
exchanged on or before the seventh day after the date of a purchase. (Prior to
June 15, 2005, the Fund imposed a redemption fee on shares that were redeemed or
exchanged within the sixtieth day after the date of a purchase.) The redemption
fee is deducted from the proceeds otherwise payable to the redeeming
shareholders and is retained by the Fund. The redemption fees retained by the
Fund during the years ended December 31, 2005 and December 31, 2004 amounted to
$2,588 and $52,949, respectively.
The redemption fee does 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 to implement such systems.
13
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
Transactions in shares of capital stock were as follows:
YEAR ENDED YEAR ENDED
DECEMBER 31, 2005 DECEMBER 31, 2004
----------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT
-------- ------------ -------- -----------
CLASS AAA CLASS AAA
----------------------- ----------------------
Shares sold ..................................... 814,424 $ 15,624,205 917,553 $15,276,196
Shares issued upon reinvestment of dividends .... 11,217 230,849 7,822 145,792
Shares redeemed ................................. (895,699) (16,882,502) (578,136) (9,459,237)
-------- ------------ -------- -----------
Net increase (decrease) ....................... (70,058) $ (1,027,448) 347,239 $ 5,962,751
======== ============ ======== ===========
CLASS A CLASS A
----------------------- ----------------------
Shares sold ..................................... 11,486 $ 211,509 6,755 $ 114,017
Shares issued upon reinvestment of dividends .... 23 484 30 549
Shares redeemed ................................. (10,078) (191,646) (1,640) (27,069)
-------- ------------ -------- -----------
Net increase .................................. 1,431 $ 20,347 5,145 $ 87,497
======== ============ ======== ===========
CLASS B CLASS B
----------------------- ----------------------
Shares sold ..................................... 734 $ 13,990 4,040 $ 66,056
Shares issued upon reinvestment of dividends .... -- -- -- --
Shares redeemed ................................. (2,868) (52,333) (852) (13,520)
-------- ------------ -------- -----------
Net increase (decrease) ....................... (2,134) $ (38,343) 3,188 $ 52,536
======== ============ ======== ===========
CLASS C CLASS C
----------------------- ----------------------
Shares sold ..................................... 751 $ 13,611 1,665 $$ 26,425
Shares issued upon reinvestment of dividends .... 1 23 -- --
Shares redeemed ................................. (274) (5,026) (1,665) (26,466)
-------- ------------ -------- -----------
Net increase (decrease) ....................... 478 $ 8,608 -- $ $ (41)
======== ============ ======== ===========
9. 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.
10. OTHER MATTERS. The Adviser and/or affiliates have received subpoenas from
the Attorney General of the State of New York and the Securities and Exchange
Commission (the "SEC") requesting information on mutual fund trading practices
involving certain funds managed by the Adviser. GAMCO Investors, Inc., the
Adviser's parent company, is responding to these requests for documents and
testimony. On a separate matter, in September 2005, the Adviser was informed by
the staff of the SEC that the staff may recommend to the Commission that an
administrative remedy and a monetary penalty be sought from the Adviser in
connection with the actions of two of seven closed-end funds managed by the
Adviser relating to Section 19(a) and Rule 19a-1 of the 1940 Act. These
provisions require registered investment companies to provide written statements
to shareholders when a dividend is made from a source other than net investment
income. While the two closed-end funds sent annual statements and provided other
materials containing this information, the funds did not send written statements
to shareholders with each distribution in 2002 and 2003. The Adviser believes
that all of the funds are now in compliance. The Adviser believes that these
matters would have no effect on the Fund or any material adverse effect on the
Adviser or its ability to manage the Fund.
14
GAMCO 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
2005 $18.75 $0.09 $1.88 $1.97 $(0.09) -- $(0.09)
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)
CLASS A
2005 $18.92 $0.11 $1.88 $1.99 $(0.07) -- $(0.07)
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 14.88 (0.23) (0.69) (0.92) (0.19) $(0.03) (0.22)
CLASS B
2005 $18.40 $(0.06) $1.84 $1.78 -- -- --
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
2005 $18.24 $(0.18) $1.98 $1.80 $(0.04) -- $(0.04)
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)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
--------------------------------------------------------------------
Operating
Net Asset Net Assets Net Expense
Period Value, End of Investment Ratio (Net Portfolio
Ended Redemption End of Total Period Income/ Operating of Interest Turnover
December 31 Fees(a) Period Return+ (in 000's) (Loss) Expenses Expense) Rate
- ----------- ---------- ---------- ------- ---------- ---------- --------- ---------- --------
CLASS AAA
2005 $0.00(c) $20.63 10.5% $59,554 0.48% 1.89% 1.88% 19%
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
CLASS A
2005 $0.00(c) $20.84 10.5% $ 253 0.56% 1.89% 1.88% 19%
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 -- 13.74 (6.2) 1 (3.85)(b) 1.86(b) 1.86(b) 31
CLASS B
2005 $0.00(c) $20.18 9.7% $ 49 (0.31)% 2.63% 2.62% 19%
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(b) 2.60(b) 2.56(b) 31
CLASS C
2005 $0.00(c) $20.00 9.9% $ 15 (0.95)% 2.62% 2.61% 19%
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
- --------------
+ 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) Annualized.
(c) Amount represents less than $0.005 per share.
See accompanying notes to financial statements.
15
GAMCO INTERNATIONAL GROWTH FUND, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
================================================================================
To the Shareholders and Board of Directors of
GAMCO International Growth Fund, Inc.
We have audited the accompanying statement of assets and liabilities of GAMCO
International Growth Fund, Inc. (the "Fund") (formerly Gabelli International
Growth Fund, Inc.), including the schedule of investments, as of December 31,
2005, and the related statement of operations for the year then ended, the
statements 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. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included 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, 2005, by correspondence with the Fund's
custodian. 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 GAMCO
International Growth Fund, Inc. at December 31, 2005, 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
Philadelphia, Pennsylvania
February 14, 2006
16
GAMCO 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 the GAMCO 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 and Chief Executive Director of Morgan
Director Officer of GAMCO Investors, Inc. and Group Holdings, Inc.
Age: 63 Chief Investment Officer - Value Portfolios (holding company)
of Gabelli Funds, LLC and GAMCO Asset
Management Inc.; Chairman and Chief
Executive Officer of Lynch Interactive
Corporation (multimedia and services)
NON-INTERESTED DIRECTORS:
- ------------------------
ANTHONY J. COLAVITA Since 1994 34 Partner in the law firm of --
Director Anthony J. Colavita, P.C.
Age: 70
WERNER J. ROEDER, MD Since 1994 23 Medical Director of Lawrence Hospital and --
Director practicing private physician
Age: 65
ANTHONIE C. VAN EKRIS Since 1994 18 Chairman of BALMAC International, Inc. --
Director (commodities and futures trading)
Age: 71
SALVATORE J. ZIZZA Since 2004 25 Chairman of Hallmark Electrical Director of Hollis-Eden
Director Supplies Corp. Pharmaceuticals (biotechnology);
Age: 60 Director of Earl Scheib, Inc.
(automotive services)
17
GAMCO INTERNATIONAL GROWTH FUND, INC..
ADDITIONAL FUND INFORMATION (CONTINUED) (UNAUDITED)
================================================================================
TERM OF
OFFICE AND
NAME, POSITION(S) LENGTH OF
ADDRESS 1 TIME PRINCIPAL OCCUPATION(S)
AND AGE SERVED 2 DURING PAST FIVE YEARS
- ---------------- -------- -----------------------
OFFICERS:
- --------
BRUCE N. ALPERT Since 1994 Executive Vice President and Chief Operating Officer
President and Treasurer of Gabelli Funds, LLC since 1988 and an officer of
Age: 54 all of the registered investment companies in the
Gabelli Funds complex. Director and President of
Gabelli Advisers, Inc. since 1998.
JAMES E. MCKEE Since 1995 Vice President, General Counsel and Secretary of
Secretary GAMCO Investors, Inc. since 1999 and GAMCO
Age: 42 Asset Management Inc. since 1993; Secretary of
all of the registered investment companies in the
Gabelli Funds complex.
PETER D. GOLDSTEIN Since 2004 Director of Regulatory Affairs for GAMCO Investors, Inc.
Chief Compliance Officer since 2004; Chief Compliance Officer of all of the registered
Age: 52 investment companies in the Gabelli Funds complex;
Vice President of Goldman Sachs Asset Management
from 2000 through 2004.
- --------------------
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 By-Laws 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. Effective November 16, 2005,
Mr. Karl Otto Pohl resigned from the Board of Directors and now serves as
Director Emeritus.
3 "Interested person" of the Fund as defined in the Investment Company Act of
1940. Mr. Gabelli is considered an "interested person" because of his
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.
18
GAMCO INTERNATIONAL GROWTH FUND, INC.
ADDITIONAL FUND INFORMATION (CONTINUED) (UNAUDITED)
================================================================================
- --------------------------------------------------------------------------------
2005 TAX NOTICE TO SHAREHOLDERS (Unaudited)
For the year ended December 31, 2005, the Fund paid to shareholders, on
December 28, 2005, an ordinary income dividend (comprised of net investment
income) totaling $0.0865, $0.0746, and $0.0443 per share for Class AAA, Class
A, and Class C, respectively. For the year ended December 31, 2005, none of
the distribution qualifies for the dividend received deduction available to
corporations, and 100% of the ordinary income distributions was qualified
dividend income. Also for the year ended December 31, 2005, the Fund passed
through foreign tax credits of $0.0482 per share to Class AAA, Class A, and
Class C shareholders. The foreign source income and tax credits by country
are presented in the table below. Visit www.gabelli.com for more information
about 2005 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 2005 which was derived from U.S. Treasury securities was 0.77%. 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 GAMCO International Growth Fund did not meet this
strict requirement in 2005. 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 2005 (UNAUDITED)
GAMCO INTERNATIONAL GROWTH FUND, INC.
-------------------------------------
Foreign Source Foreign Qualified
Income % Income % Foreign Tax %
-------- -------- -------------
Australia 5.57 5.59 0.00
Belgium 0.04 0.04 0.39
Brazil 1.67 1.67 2.77
France 17.48 17.51 27.05
Germany 0.67 0.67 1.11
Greece 4.84 4.85 0.00
Hong Kong 0.00 0.00 0.00
Ireland 7.87 7.88 0.00
Italy 15.17 15.20 24.59
Japan 8.14 8.16 6.93
Spain 4.70 4.71 7.73
Sweden 1.26 1.26 0.29
Switzerland 11.58 11.60 29.14
United Kingdom 19.64 20.86 0.00
19
GAMCO 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
EXECUTIVE OFFICER LAWRENCE HOSPITAL
GAMCO INVESTORS, INC.
Anthony J. Colavita Anthonie C. van Ekris
ATTORNEY-AT-LAW MANAGING DIRECTOR
ANTHONY J. COLAVITA, P.C. BALMAC INTERNATIONAL, INC.
Salvatore J. Zizza
CHAIRMAN
HALLMARK ELECTRICAL SUPPLIES CORP.
OFFICERS AND PORTFOLIO MANAGER
Caesar Bryan Bruce N. Alpert
PORTFOLIO MANAGER PRESIDENT AND TREASURER
James E. McKee Peter D. 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
GAMCO International Growth Fund, Inc. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective prospectus.
- --------------------------------------------------------------------------------
GAB009Q405SR
GAMCO
GAMCO
INTERNATIONAL
GROWTH
FUND,
INC.
ANNUAL REPORT
DECEMBER 31, 2005
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
$34,700 in 2005 and $32,100 in 2004.
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 2005 and $0 in 2004.
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 2005 and $3,400
in 2004.
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 2005 and $0 in 2004.
(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 2005 and $68,400 in 2004.
(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.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's Board of Directors, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR
240.14a-101), or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these
controls and procedures required by Rule 30a-3(b) under the 1940 Act
(17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the
Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's second
fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Code of ethics, or any amendment thereto, that is the subject of
disclosure required by Item 2 is attached hereto.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) GAMCO International Growth Fund, Inc.
--------------------------------------------------
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date March 8, 2006
----------------------------------------------------------------------------
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 &
Principal Financial Officer
Date March 8, 2006
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.