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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GAMCO International Growth Fund, Inc.
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(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
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(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: December 31
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Date of reporting period: June 30, 2006
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 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.
SEMI-ANNUAL REPORT
JUNE 30, 2006
TO OUR SHAREHOLDERS,
During the second quarter of 2006, the GAMCO International Growth Fund
(the "Fund") declined 0.1% while the Morgan Stanley Capital International
("MSCI") Europe, Australasia and Far East ("EAFE") Index rose 0.9% and the
Lipper International Multi-Cap Growth Fund Average declined 1.4%. For the
six-month period ended June 30, 2006, the Fund was up 7.8% versus gains of 10.5%
and 7.8% for the MSCI EAFE Index and the Lipper International Multi-Cap Growth
Fund Average, respectively.
Enclosed are the financial statements and the investment portfolio as of
June 30, 2006.
COMPARATIVE RESULTS
- ----------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH JUNE 30, 2006 (A)
Since
Year to Inception
Quarter Date 1 Year 3 Year 5 Year 10 Year (6/30/95)
- ----------------------------------------------------------------------------------------------------------------------
GAMCO INTERNATIONAL GROWTH FUND
CLASS AAA .................................. (0.09)% 7.80% 23.19% 21.46% 7.91% 7.88% 9.37%
MSCI EAFE Index .............................. 0.94 10.50 27.07 24.43 10.44 6.75 7.36
Lipper International Multi-Cap
Growth Fund Average ........................ (1.44) 7.80 26.34 21.82 8.06 6.57 7.10
Class A ...................................... (0.13) 7.77 23.17 21.44 8.20 8.02 9.51
(5.88)(b) 1.58(b) 16.09(b) 19.07(b) 6.92(b) 7.39(b) 8.92(b)
Class B ...................................... (0.28) 7.38 22.22 20.55 7.06 7.44 8.96
(5.26)(c) 2.38(c) 17.22(c) 19.86(c) 6.76(c) 7.44(c) 8.96(c)
Class C ...................................... (0.32) 7.35 22.26 20.23 6.91 7.35 8.88
(1.32)(c) 6.35(c) 21.26(c) 20.23(c) 6.91(c) 7.35(c) 8.88(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 DISTRIBUTIONS AND ARE NET OF EXPENSES. INVESTMENT RETURNS
AND THE PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE. WHEN SHARES ARE
REDEEMED, THEY MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
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 CAREFULLY CONSIDER THE INVESTMENT
OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE FUND 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 MSCI EAFE
INDEX IS AN UNMANAGED INDICATOR OF INTERNATIONAL STOCK MARKET PERFORMANCE,
WHILE THE LIPPER INTERNATIONAL MULTI-CAP GROWTH FUND AVERAGE REFLECTS THE
AVERAGE PERFORMANCE OF MUTUAL FUNDS CLASSIFIED IN THIS PARTICULAR CATEGORY.
DIVIDENDS ARE CONSIDERED REINVESTED.
(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.
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We have separated the portfolio manager's commentary from the financial
statements and investment portfolio due to corporate governance regulations
stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that
the content of the portfolio manager's commentary is unrestricted. The
financial statements and investment portfolio are mailed separately from the
commentary. Both the commentary and the financial statements, including the
portfolio of investments, will be available on our website at
www.gabelli.com/funds.
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GAMCO INTERNATIONAL GROWTH FUND, INC.
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
For the Six Month Period from January 1, 2006 through June 30, 2006
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 six months ended June 30, 2006.
Beginning Ending Annualized Expenses
Account Value Account Value Expense Paid During
01/01/06 06/30/06 Ratio Period*
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GAMCO INTERNATIONAL GROWTH FUND, INC.
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Class AAA $1,000.00 $1,078.00 1.78% $ 9.17
Class A $1,000.00 $1,077.70 1.78% $ 9.17
Class B $1,000.00 $1,073.80 2.53% $13.01
Class C $1,000.00 $1,073.50 2.53% $13.01
HYPOTHETICAL 5% RETURN
Class AAA $1,000.00 $1,015.97 1.78% $ 8.90
Class A $1,000.00 $1,015.97 1.78% $ 8.90
Class B $1,000.00 $1,012.25 2.53% $12.62
Class C $1,000.00 $1,012.25 2.53% $12.62
* 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.
2
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)
The following table presents portfolio holdings as a percent of total net assets
as of June 30, 2006:
GAMCO INTERNATIONAL GROWTH FUND, INC.
Health Care ....................................... 16.4%
Consumer Products ................................. 11.2%
Energy and Utilities .............................. 9.7%
Financial Services: Banks ......................... 9.3%
Building and Construction ......................... 6.7%
Food and Beverage ................................. 6.5%
Metals and Mining ................................. 6.2%
Entertainment ..................................... 5.5%
Retail ............................................ 5.0%
Business Services ................................. 3.8%
Financial Services: Insurance ..................... 3.8%
Broadcasting ...................................... 3.7%
Specialty Chemicals ............................... 2.8%
Financial Services: Brokerage ..................... 2.8%
Hotels and Gaming ................................. 2.8%
Electronics ....................................... 1.5%
Computer Software and Services .................... 1.3%
Real Estate ....................................... 0.8%
U.S. Government Obligations ....................... 0.4%
Other Assets and Liabilities (Net) ................ (0.2)%
-----
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 MARCH 31, 2006. 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 is 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.
3
GAMCO INTERNATIONAL GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS -- JUNE 30, 2006 (UNAUDITED)
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MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS -- 99.8%
BROADCASTING -- 3.7%
85,000 Mediaset SpA ............. $ 695,539 $ 1,002,392
25,000 Modern Times Group AB,Cl .B+ 639,471 1,314,829
25,000 Modern Times Group AB,
Cl. B, Redeemable Shares+ 33,656 60,062
----------- -----------
1,368,666 2,377,283
----------- -----------
BUILDING AND CONSTRUCTION -- 6.7%
20,000 Bouygues SA .............. 550,895 1,028,357
60,750 CRH plc .................. 896,276 1,975,193
24,000 Technip SA ............... 652,173 1,329,189
----------- -----------
2,099,344 4,332,739
----------- -----------
BUSINESS SERVICES -- 3.8%
39,000 Amano Corp. .............. 678,104 579,343
21,000 Canon Inc. ............... 815,875 1,029,448
19,000 Secom Co. Ltd. ........... 813,796 898,200
----------- -----------
2,307,775 2,506,991
----------- -----------
COMPUTER SOFTWARE AND SERVICES -- 1.3%
600 NIWS Co. HQ Ltd. ......... 734,719 512,758
17,000 Square Enix Co. Ltd. ..... 457,695 353,547
----------- -----------
1,192,414 866,305
----------- -----------
CONSUMER PRODUCTS -- 11.2%
23,000 Altadis SA ............... 343,114 1,087,295
32,000 Assa Abloy AB, Cl. B ..... 607,983 538,021
17,000 Christian Dior SA ........ 855,329 1,666,667
53,000 Compagnie Financiere
Richemont AG, Cl. A .... 992,176 2,427,712
45,000 Gallaher Group plc ....... 496,236 703,164
5,000 Swatch Group AG .......... 575,853 844,546
----------- -----------
3,870,691 7,267,405
----------- -----------
ELECTRONICS -- 1.5%
3,800 Keyence Corp. ............ 719,306 970,255
----------- -----------
ENERGY AND UTILITIES -- 9.7%
56,000 Eni SpA .................. 1,044,961 1,649,566
18,000 Imperial Oil Ltd. ........ 673,425 657,565
13,000 Petroleo Brasileiro SA, ADR 544,676 1,161,030
42,000 Saipem SpA ............... 774,010 955,681
8,000 Sasol Ltd. ............... 307,977 306,834
23,776 Total SA ................. 886,190 1,564,630
----------- -----------
4,231,239 6,295,306
----------- -----------
ENTERTAINMENT -- 5.5%
13,500 Oriental Land Co. Ltd. ... 805,171 759,699
146,000 Publishing & Broadcasting Ltd. 1,026,002 1,975,655
24,000 Vivendi SA ............... 599,739 841,104
----------- -----------
2,430,912 3,576,458
----------- -----------
MARKET
SHARES COST VALUE
------ ---- ------
FINANCIAL SERVICES: BANKS -- 9.3%
60,006 Bank of Ireland .......... $ 387,193 $ 1,070,672
14,000 Credit Suisse Group ...... 636,815 783,281
75,000 Shizuoka Bank Ltd. ....... 745,718 810,031
35,000 Standard Chartered plc ... 684,063 854,337
13,000 UBS AG ................... 731,879 1,424,891
65,000 UniCredito Italiano SpA .. 468,151 508,806
35,000 Westpac Banking Corp. .... 550,221 605,480
----------- -----------
4,204,040 6,057,498
----------- -----------
FINANCIAL SERVICES: BROKERAGE -- 2.8%
35,000 Mediobanca SpA ........... 721,762 685,379
90,000 Nikko Cordial Corp. ...... 1,233,959 1,151,346
----------- -----------
1,955,721 1,836,725
----------- -----------
FINANCIAL SERVICES: INSURANCE -- 3.8%
4,500 Allianz AG ............... 558,064 710,947
55,000 Aviva plc ................ 577,162 778,566
40,000 Irish Life & Permanent plc,
London ................ 314,039 957,753
----------- -----------
1,449,265 2,447,266
----------- -----------
FOOD AND BEVERAGE -- 6.5%
50,000 Ajinomoto Co. Inc. ....... 596,119 553,565
29,000 ARIAKE JAPAN Co. Ltd. .... 693,462 641,122
65,000 Cadbury Schweppes plc .... 669,773 626,838
20,000 Coca-Cola Hellenic
Bottling Co. SA ....... 270,013 596,037
55,000 Diageo plc ............... 487,990 925,024
4,500 Pernod-Ricard SA ......... 325,884 892,138
----------- -----------
3,043,241 4,234,724
----------- -----------
HEALTH CARE -- 16.4%
1,875 AstraZeneca plc, London .. 85,577 113,172
14,126 AstraZeneca plc, Stockholm 532,974 852,850
42,140 GlaxoSmithKline plc ...... 1,205,664 1,177,461
27,000 Hisamitsu Pharmaceutical
Co. Inc. ............... 669,259 828,120
25,000 Novartis AG .............. 953,728 1,353,728
9,000 Roche Holding AG ......... 926,761 1,487,792
11,372 Sanofi-Aventis ........... 684,873 1,109,811
60,000 Smith & Nephew plc ....... 542,091 462,119
3,000 Straumann Holding AG ..... 617,094 764,999
5,500 Synthes Inc. ............. 372,080 663,572
16,000 Takeda Pharmaceutical Co. Ltd. 846,985 995,456
12,000 William Demant Holding A/S+ 541,308 897,142
----------- -----------
7,978,394 10,706,222
----------- -----------
See accompanying notes to financial statements.
4
GAMCO INTERNATIONAL GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED) -- JUNE 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
HOTELS AND GAMING -- 2.8%
34,000 Greek Organization of Football
Prognostics SA ......... $ 377,389 $1,230,702
77,647 Ladbrokes plc ............ 858,406 585,114
----------- -----------
1,235,795 1,815,816
----------- -----------
METALS AND MINING -- 6.2%
29,000 Anglo American plc ....... 1,106,323 1,189,452
85,500 Harmony Gold
Mining Co. Ltd.+ ....... 534,222 1,360,607
16,000 Harmony Gold
Mining Co. Ltd., ADR+ .. 86,109 260,640
32,000 Xstrata plc .............. 651,929 1,213,085
----------- -----------
2,378,583 4,023,784
----------- -----------
REAL ESTATE -- 0.8%
50,000 Cheung Kong (Holdings) Ltd. 585,811 541,764
1,562 Prosperity REIT+ ......... 439 336
----------- -----------
586,250 542,100
----------- -----------
RETAIL -- 5.0%
35,000 Matsumotokiyoshi Co. Ltd. 959,917 889,986
20,000 Next plc ................. 526,629 603,584
30,400 Seven & I Holdings Co. Ltd. 902,824 1,001,468
50,000 Woolworths Ltd. .......... 686,495 748,675
----------- -----------
3,075,865 3,243,713
----------- -----------
SPECIALTY CHEMICALS -- 2.8%
594 Arkema+ .................. 46,642 23,196
18,500 Bayer AG ................. 778,301 850,428
175,000 Tokai Carbon Co. Ltd. .... 739,841 980,208
----------- -----------
1,564,784 1,853,832
----------- -----------
TOTAL COMMON STOCKS ...... 45,692,285 64,954,422
----------- -----------
PRINCIPAL MARKET
AMOUNT COST VALUE
------ ---- ------
U.S. GOVERNMENT OBLIGATIONS -- 0.4%
$298,000 U.S. Treasury Bills,
4.744% to 4.923%++,
07/27/06 to 09/07/06 ... $ 296,315 $ 296,324
----------- -----------
TOTAL
INVESTMENTS -- 100.2% .. $45,988,600 65,250,746
===========
OTHER ASSETS AND LIABILITIES (NET) -- (0.2)% .... (152,951)
-----------
NET ASSETS -- 100.0% ............................ $65,097,795
===========
- ----------------
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR American Depository Receipt
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
- -------------------------- ------ ------
Europe ................................ 67.0% $43,717,711
Japan ................................. 19.9 12,954,552
Asia/Pacific .......................... 5.9 3,871,910
South Africa .......................... 2.9 1,928,081
North America ......................... 2.5 1,617,462
Latin America ......................... 1.8 1,161,030
----- -----------
100.0% $65,250,746
===== ===========
See accompanying notes to financial statements.
5
GAMCO INTERNATIONAL GROWTH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS:
Investments, at value (cost $45,988,600) ................ $ 65,250,746
Foreign currency, at value (cost $7,545) ................ 7,674
Cash .................................................... 583
Receivable for investments sold ......................... 550,937
Dividends receivable .................................... 132,060
Receivable for Fund shares sold ......................... 14,166
Other assets ............................................ 1,904
------------
TOTAL ASSETS ............................................ 65,958,070
------------
LIABILITIES:
Payable for investments purchased ....................... 535,348
Payable for Fund shares redeemed ........................ 176,049
Payable for investment advisory fees .................... 55,436
Payable for distribution fees ........................... 13,900
Other accrued expenses .................................. 79,542
------------
TOTAL LIABILITIES ....................................... 860,275
------------
NET ASSETS applicable to 2,927,560
shares outstanding .................................... $ 65,097,795
============
NET ASSETS CONSIST OF:
Capital stock, each class at $0.001 par value ........... $ 2,928
Additional paid-in capital .............................. 54,899,303
Accumulated net investment income ....................... 1,193,140
Accumulated net realized loss on investments
and foreign currency transactions ..................... (10,261,883)
Net unrealized appreciation on investments .............. 19,262,146
Net unrealized appreciation on foreign
currency translations ................................. 2,161
------------
NET ASSETS .............................................. $ 65,097,795
============
SHARES OF CAPITAL STOCK:
CLASS AAA:
Net Asset Value, offering and redemption price
per share ($64,749,010 / 2,911,923 shares
outstanding; 375,000,000 shares authorized) ........... $22.24
======
CLASS A:
Net Asset Value and redemption price per share
($284,104 / 12,647 shares outstanding;
250,000,000 shares authorized) ........................ $22.46
======
Maximum offering price per share (NAV / .9425,
based on maximum sales charge of 5.75%
of the offering price) ................................ $23.83
======
CLASS B:
Net Asset Value and offering price per share
($52,776 / 2,435 shares outstanding;
125,000,000 shares authorized) ........................ $21.67(a)
======
CLASS C:
Net Asset Value and offering price per share
($11,905 / 554.5 shares outstanding;
125,000,000 shares authorized) ........................ $21.47(a)
======
- -------------------
(a) Redemption price varies based on the length of time held.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends (net of foreign taxes of $43,514) .............. $1,754,567
Interest ................................................. 15,608
----------
TOTAL INVESTMENT INCOME .................................. 1,770,175
----------
EXPENSES:
Investment advisory fees ................................. 326,235
Distribution fees - Class AAA ............................ 81,072
Distribution fees - Class A .............................. 402
Distribution fees - Class B .............................. 262
Distribution fees - Class C .............................. 75
Legal and audit fees ..................................... 30,373
Shareholder communications expenses ...................... 29,689
Shareholder services fees ................................ 25,101
Custodian fees ........................................... 21,074
Registration expenses .................................... 17,253
Directors' fees .......................................... 5,088
Interest expense ......................................... 439
Miscellaneous expenses ................................... 42,650
----------
TOTAL EXPENSES ........................................... 579,713
Less: Custodian fee credits .............................. (119)
----------
TOTAL NET EXPENSES ....................................... 579,594
----------
NET INVESTMENT INCOME .................................... 1,190,581
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain on investments ......................... 947,442
Net realized gain on foreign
currency transactions .................................. 6,832
----------
Net realized gain on investments and
foreign currency transactions .......................... 954,274
Net change in unrealized appreciation/
depreciation on investments and foreign
currency translations .................................. 2,447,268
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY ....................... 3,401,542
----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................................ $4,592,123
==========
See accompanying notes to financial statements.
6
GAMCO INTERNATIONAL GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED
JUNE 30, 2006 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2005
---------------- -----------------
OPERATIONS:
Net investment income .................................................... $ 1,190,581 $ 255,903
Net realized gain on investments and foreign currency transactions ....... 954,274 1,898,902
Net change in unrealized appreciation/depreciation on investments
and foreign currency translations ...................................... 2,447,268 3,280,428
----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ..................... 4,592,123 5,435,233
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class AAA .............................................................. -- (247,787)
Class A ................................................................ -- (901)
Class C ................................................................ -- (34)
----------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ...................................... -- (248,722)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Class AAA .............................................................. 625,542 (1,027,448)
Class A ................................................................ 14,060 20,347
Class B ................................................................ (10) (38,343)
Class C ................................................................ (4,843) 8,608
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS .... 634,749 (1,036,836)
----------- -----------
REDEMPTION FEES .......................................................... 55 2,588
----------- -----------
NET INCREASE IN NET ASSETS ............................................... 5,226,927 4,152,263
NET ASSETS:
Beginning of period ...................................................... 59,870,868 55,718,605
----------- -----------
End of period (including undistributed net investment income
of $1,193,140 and $2,559, respectively) ................................ $65,097,795 $59,870,868
=========== ===========
See accompanying notes to financial statements.
7
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
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 United States ("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 a foreign market are generally valued
at the preceding closing values of such securities on the relevant market, but
may be fair valued pursuant to procedures established by the Board if market
conditions change significantly after the close of the foreign market but prior
to the close of business on the day the securities are being valued. Debt
instruments with remaining maturities of 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 fair valued 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
fair valued as determined by the Board. Fair valuation methodologies and
procedures may include, but are not limited to: analysis and review of available
financial and non-financial information about the company; comparisons 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.
8
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
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 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 June 30,
2006, 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 June 30, 2006, there were no open forward foreign exchange
contracts.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Fund are maintained
in 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.
9
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
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.
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 the 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, if any, shown
as "custodian fee credits".
DISTRIBUTIONS TO SHAREHOLDERS. 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
capital accounts in the period when the differences arise. These
reclassifications have no impact on the NAV of the Fund. For the fiscal 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.
10
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
The tax character of distributions paid during the fiscal year ended December
31, 2005 was as follows:
DISTRIBUTIONS PAID FROM:
Ordinary income
(inclusive of short-term capital gains) .................. $248,722
--------
Total distributions paid ................................... $248,722
========
PROVISION FOR INCOME TAXES. The Fund intends to continue to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code of
1986, as amended (the "Code"). It is the policy of the Fund to comply with the
requirements of the Code applicable to regulated investment companies and to
distribute substantially all of its net investment company taxable income and
net capital gains. Therefore, no provision for Federal income taxes is required.
As of December 31, 2005, the components of accumulated earnings/(losses) on a
tax basis were as follows:
Undistributed ordinary income .............................$ 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 had 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 the related unrealized
appreciation/depreciation at June 30, 2006:
GROSS GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
COST APPRECIATION DEPRECIATION (DEPRECIATION)
---- ------------ ------------ --------------
Investments ............... $46,553,135 $20,595,273 $(1,897,662) $18,697,611
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.
11
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
5. PORTFOLIO SECURITIES. Purchases and proceeds from the sales of securities for
the six months ended June 30, 2006, other than short-term securities, aggregated
$8,179,720 and $6,117,082, respectively.
6. TRANSACTIONS WITH AFFILIATES. During the six months ended June 30, 2006,
Gabelli & Company informed the Fund that it received $110 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 six months
ended June 30, 2006, the Fund paid or accrued $22,500 to the Adviser 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 of up to
$25,000,000 from the custodian for temporary borrowing purposes. Borrowings
under this arrangement bear interest at 0.75% above the Federal Funds rate on
outstanding balances. At June 30, 2006, there were no borrowings outstanding
from the line of credit.
The average daily amount of borrowings outstanding from the line of credit
within the six months ended June 30, 2006 was $6,558, with a weighted average
interest rate of 5.54%. The maximum amount borrowed at any time during the six
months ended June 30, 2006 was $438,000.
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, or the transfer agent 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 the original purchase or at the date of redemption, based on the
length of time held. Class C Shares are subject to a 1.00% CDSC for one year
after purchase. Class B Shares are available only through exchange of Class B
Shares of other funds distributed by 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 on or before 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 six months ended June 30, 2006 and fiscal year ended December
31, 2005 amounted to $55 and $2,588, 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.
12
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
Transactions in shares of capital stock were as follows:
SIX MONTHS ENDED
JUNE 30, 2006 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2005
--------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- -------- ------------
CLASS AAA CLASS AAA
--------------------- ----------------------
Shares sold .............................................. 431,111 $ 9,516,795 814,424 $ 15,624,205
Shares issued upon reinvestment of dividends ............. -- -- 11,217 230,849
Shares redeemed .......................................... (405,826) (8,891,253) (895,699) (16,882,502)
-------- ----------- -------- ------------
Net increase (decrease) ................................ 25,285 $ 625,542 (70,058) $ (1,027,448)
======== =========== ======== ============
CLASS A CLASS A
--------------------- ----------------------
Shares sold .............................................. 3,251 $ 71,727 11,486 $ 211,509
Shares issued upon reinvestment of dividends ............. -- -- 23 484
Shares redeemed .......................................... (2,709) (57,667) (10,078) (191,646)
-------- ----------- -------- ------------
Net increase ........................................... 542 $ 14,060 1,431 $ 20,347
======== =========== ======== ============
CLASS B CLASS B
--------------------- ----------------------
Shares sold .............................................. -- -- 734 $ 13,990
Shares issued upon reinvestment of dividends ............. -- -- -- --
Shares redeemed .......................................... (1) $ (10) (2,868) (52,333)
-------- ----------- -------- ------------
Net decrease ........................................... (1) $ (10) (2,134) $ (38,343)
======== =========== ======== ============
CLASS C CLASS C
--------------------- ----------------------
Shares sold .............................................. 24 $ 491 751 $ 13,611
Shares issued upon reinvestment of dividends ............. -- -- 1 23
Shares redeemed .......................................... (228) (5,334) (274) (5,026)
-------- ----------- -------- ------------
Net increase (decrease) ................................ (204) $ (4,843) 478 $ 8,608
======== =========== ======== ============
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 SEC requesting information
on mutual fund trading practices involving certain funds managed by the Adviser.
GAMCO Investors, Inc. ("GAMCO"), the Adviser's parent company, is responding to
these requests for documents and testimony. In June 2006, GAMCO began
discussions with the SEC regarding a possible resolution of their inquiry. Since
these discussions are ongoing, it cannot be determined at this time whether they
will ultimately result in a settlement of this matter. 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.
13
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
2006(b) $20.63 $ 0.40 $ 1.21 $ 1.61 -- -- --
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
2006(b) $20.84 $ 0.37 $ 1.25 $ 1.62 -- -- --
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
2006(b) $20.18 $ 0.31 $ 1.18 $ 1.49 -- -- --
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
2006(b) $20.00 $ 0.24 $ 1.23 $ 1.47 -- -- --
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
2006(b) $0.00(c) $22.24 7.8% $64,749 3.65%(d) 1.78%(d) 1.77%(d) 9%
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
2006(b) $0.00(c) $22.46 7.8% $ 284 3.32%(d) 1.78%(d) 1.77%(d) 9%
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)(d) 1.86(d) 1.86(d) 31
CLASS B
2006(b) $0.00(c) $21.67 7.4% $ 53 2.91%(d) 2.53%(d) 2.52%(d) 9%
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(d) 2.60(d) 2.56(d) 31
CLASS C
2006(b) $0.00(c) $21.47 7.4% $ 12 2.25%(d) 2.53%(d) 2.52%(d) 9%
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 distributions 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) For the six months ended June 30, 2006, unaudited.
(c) Amount represents less than $0.005 per share.
(d) Annualized.
See accompanying notes to financial statements.
14
GAMCO INTERNATIONAL GROWTH FUND, INC.
BOARD CONSIDERATION AND RE-APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED)
Section 15(c) of the Investment Company Act of 1940, as amended (the "1940
Act"), contemplates that the Board of Directors (the "Board") of the GAMCO
International Growth Fund, Inc. (the "Fund"), including a majority of the
Directors who have no direct or indirect interest in the investment advisory
agreement and are not "interested persons" of the Fund, as defined in the 1940
Act (the "independent board members"), are required to annually review and
re-approve the terms of the Fund's existing investment advisory agreement and
approve any newly proposed terms therein. In this regard, the Board reviewed and
re-approved, during the most recent six month period covered by this report, the
Investment Advisory Agreement (the "Advisory Agreement") with Gabelli Funds, LLC
(the "Adviser") for the Fund.
More specifically, at a meeting held on February 15, 2006, the Board, including
the independent board members, considered the factors and reached the
conclusions described below relating to the selection of the Adviser and the
re-approval of the Advisory Agreement.
1. NATURE, EXTENT, AND QUALITY OF SERVICES. The independent board members
considered the nature, quality, and extent of administrative and shareholder
services performed by the Adviser, including portfolio management, supervision
of Fund operations and compliance and regulatory filings and disclosures to
shareholders, general oversight of other service providers, coordination of Fund
marketing initiatives, review of Fund legal issues, assisting the independent
board members in their capacity as directors, and other services. The
independent board members concluded that the services are extensive in nature
and that the Adviser consistently delivered a high level of service.
2. INVESTMENT PERFORMANCE OF THE FUND AND ADVISER. The independent board members
considered short-term and long-term investment performance for the Fund over
various periods of time as compared to both relevant equity indices and the
performance of the Fund's Lipper Inc. peer group, and concluded that, while
performance for the most recent one and three year periods was below the peer
group average, the Adviser was delivering superior performance results over the
most recent five and ten year periods consistent with the long-term investment
strategies being pursued by the Fund.
3. COSTS OF SERVICES AND PROFITS REALIZED BY THE ADVISER.
(A) COSTS OF SERVICES TO FUND: FEES AND EXPENSES. The independent board members
considered the Fund's advisory fee rate and expense ratio relative to industry
averages and median levels for the Fund's peer group category and the advisory
fees charged by the Adviser and its affiliates to other fund and non-fund
clients. The independent board members noted that the mix of services under the
Advisory Agreement are much more extensive than those under the advisory
agreements for non-fund clients. While the independent board members recognized
that the advisory fee paid by the Fund is generally at the high end of its peer
group, they concluded that the fee is acceptable based upon the qualifications,
experience, reputation, and performance of the Adviser and the moderate overall
expense ratio of the Fund.
(B) PROFITABILITY AND COSTS OF SERVICES TO ADVISER. The independent board
members considered the Adviser's overall profitability and costs, and pro-forma
estimates of the Adviser's profitability and costs attributable to the Fund (i)
as part of the Gabelli fund complex and (ii) assuming the Fund constituted the
Adviser's only investment company under its management. The independent board
members also considered whether the amount of profit is a fair entrepreneurial
profit for the management of the Fund, and noted that the Adviser has
substantially increased its resources devoted to Fund matters in response to
recently-enacted
15
regulatory requirements and new or enhanced Fund policies and procedures. The
independent board members concluded that the Adviser's profitability was at an
acceptable level, particularly in light of the high quality of the services
being provided to the Fund.
4. EXTENT OF ECONOMIES OF SCALE AS FUND GROWS. The independent board members
considered whether there have been economies of scale with respect to the
management of the Fund and whether the Fund has appropriately benefited from any
economies of scale. The independent board members noted that economies of scale
may develop for certain funds as their assets increase and their fund-level
expenses decline as a percentage of assets, but that fund-level economies of
scale may not necessarily result in Adviser-level economies of scale. The
Adviser had stated during the main meeting that the expenses incurred by the
Adviser relating to management of the Fund have increased substantially in
recent years as a percentage of advisory fees, rather than declining as might be
anticipated as the assets of the Fund increase. The independent board members
agreed that it was possible that Adviser-level expenses incurred in managing the
Fund eventually may level off or decline as a percentage of advisory fees,
especially if the assets of the Fund continue to grow beyond certain thresholds.
5. WHETHER FEE LEVELS REFLECT ECONOMIES OF SCALE. The independent board members
also considered whether the advisory fee rate is reasonable in relation to the
asset size of the Fund and any economies of scale that may exist, and concluded
that it currently was reasonable.
6. OTHER RELEVANT CONSIDERATIONS.
(A) ADVISER PERSONNEL AND METHODS. The independent board members considered the
size, education, and experience of the Adviser's staff, the Adviser's
fundamental research capabilities, and the Adviser's approach to recruiting,
training, and retaining portfolio managers and other research and management
personnel, and concluded that in each of these areas the Adviser was structured
in such a way to support the high level of services being provided to the Fund.
(B) OTHER BENEFITS TO THE ADVISER. The independent board members also considered
the character and amount of other incidental benefits received by the Adviser
and its affiliates from its association with the Fund. The independent board
members concluded that potential "fall-out" benefits that the Adviser and its
affiliates may receive, such as greater name recognition or increased ability to
obtain research services, appear to be reasonable, and may in some cases benefit
the Fund.
CONCLUSIONS. In considering the Advisory Agreement, the independent board
members did not identify any factor as all-important or all-controlling and
instead considered these factors collectively in light of the Fund's surrounding
circumstances. Based on this review, it was the judgment of the independent
board members that shareholders had received acceptable absolute and relative
performance at reasonable fees and, therefore, re-approval of the Agreement was
in the best interests of the Fund and its shareholders. As a part of its
decision making process, the independent board members noted that the Adviser
has managed the Fund since its inception, and the independent board members
believe that a long-term relationship with a capable, conscientious adviser is
in the best interests of the Fund. The independent board members considered,
generally, that shareholders invested in the Fund knowing that the Adviser
managed the Fund and knowing its investment advisory fee schedule. As such, the
independent board members considered, in particular, whether the Adviser managed
the Fund in accordance with its investment objectives and policies as disclosed
to shareholders. The independent board members concluded that the Fund was
managed by the Adviser consistent with its investment objectives and policies.
Upon conclusion of their review and discussion, the independent board members
unanimously agreed to recommend the continuation of the Advisory Agreement for
the Fund.
16
- --------------------------------------------------------------------------------
GABELLI FUNDS AND YOUR PERSONAL PRIVACY
================================================================================
WHO ARE WE?
The Gabelli/GAMCO Funds are investment companies registered with the
Securities and Exchange Commission under the Investment Company Act of
1940. We are managed by Gabelli Funds, LLC and Gabelli Advisers, Inc.,
which are affiliated with GAMCO Investors, Inc. GAMCO Investors, Inc. is a
publicly held company that has subsidiaries that provide investment
advisory or brokerage services for a variety of clients.
WHAT KIND OF NON-PUBLIC INFORMATION DO WE COLLECT ABOUT YOU IF YOU BECOME A
GABELLI CUSTOMER?
If you apply to open an account directly with us, you will be giving us
some non-public information about yourself. The non-public information we
collect about you is:
o INFORMATION YOU GIVE US ON YOUR APPLICATION FORM. This could include
your name, address, telephone number, social security number, bank
account number, and other information.
o INFORMATION ABOUT YOUR TRANSACTIONS WITH US, ANY TRANSACTIONS WITH OUR
AFFILIATES, AND TRANSACTIONS WITH THE ENTITIES WE HIRE TO PROVIDE
SERVICES TO YOU. This would include information about the shares that
you buy or redeem. If we hire someone else to provide services--like a
transfer agent--we will also have information about the transactions
that you conduct through them.
WHAT INFORMATION DO WE DISCLOSE AND TO WHOM DO WE DISCLOSE IT?
We do not disclose any non-public personal information about our customers
or former customers to anyone other than our affiliates, our service
providers who need to know such information, and as otherwise permitted by
law. If you want to find out what the law permits, you can read the privacy
rules adopted by the Securities and Exchange Commission. They are in volume
17 of the Code of Federal Regulations, Part 248. The Commission often posts
information about its regulations on its web site, www.sec.gov.
WHAT DO WE DO TO PROTECT YOUR PERSONAL INFORMATION?
We restrict access to non-public personal information about you to the
people who need to know that information in order to provide services to
you or the Fund and to ensure that we are complying with the laws governing
the securities business. We maintain physical, electronic, and procedural
safeguards to keep your personal information confidential.
- --------------------------------------------------------------------------------
GABELLI FAMILY OF FUNDS
VALUE _______________________________________
GABELLI ASSET FUND
Seeks to invest primarily in a diversified portfolio of common stocks selling at
significant discounts to their private market value. The Fund's primary
objective is growth of capital. (MULTICLASS)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI BLUE CHIP VALUE FUND
Seeks long term growth of capital through investment primarily in the common
stocks of established companies which are temporarily out of favor. The fund's
objective is to identify a catalyst or sequence of events that will return the
company to a higher value.
(MULTICLASS) PORTFOLIO MANAGER: BARBARA MARCIN, CFA
WESTWOOD EQUITY FUND
Seeks to invest primarily in the common stock of well-seasoned companies that
have recently reported positive earnings surprises and are trading below
Westwood's proprietary growth rate estimates. The Fund's primary objective is
capital appreciation.
(MULTICLASS) PORTFOLIO MANAGER: SUSAN M. BYRNE
FOCUSED VALUE _______________________________
GABELLI VALUE FUND
Seeks to invest in securities of companies believed to be undervalued. The
Fund's primary objective is long-term capital appreciation. (MULTICLASS)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
SMALL CAP VALUE _____________________________
GABELLI SMALL CAP FUND
Seeks to invest primarily in common stock of smaller companies (market
capitalizations less than $1 billion) believed to have rapid revenue and
earnings growth potential. The Fund's primary objective is capital appreciation.
(MULTICLASS) PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
WESTWOOD SMALLCAP EQUITY FUND
Seeks to invest primarily in smaller capitalization equity securities - market
caps of $2.5 billion or less. The Fund's primary objective is long-term capital
appreciation. (MULTICLASS) TEAM MANAGED
GABELLI WOODLAND SMALL CAP VALUE FUND
Seeks to invest primarily in the common stocks of smaller companies (market
capitalizations less than $1.5 billion) believed to be undervalued with
shareholder oriented management teams that are employing strategies to grow the
company's value. The Fund's primary objective is capital appreciation.
(MULTICLASS) PORTFOLIO MANAGER: ELIZABETH M. LILLY, CFA
GROWTH ______________________________________
GAMCO GROWTH FUND
Seeks to invest primarily in large cap stocks believed to have favorable, yet
undervalued, prospects for earnings growth. The Fund's primary objective is
capital appreciation. (MULTICLASS) PORTFOLIO MANAGER: HOWARD F. WARD, CFA
GAMCO INTERNATIONAL GROWTH FUND
Seeks to invest in the equity securities of foreign issuers with long-term
capital appreciation potential. The Fund offers investors global
diversification. (MULTICLASS) PORTFOLIO MANAGER: CAESAR BRYAN
AGGRESSIVE GROWTH ___________________________
GAMCO GLOBAL GROWTH FUND
Seeks capital appreciation through a disciplined investment program focusing on
the globalization and interactivity of the world's marketplace. The Fund invests
in companies at the forefront of accelerated growth. The Fund's primary
objective is capital appreciation. (MULTICLASS) TEAM MANAGED
MICRO-CAP ___________________________________
WESTWOOD MIGHTY MITES(SM) FUND
Seeks to invest in micro-cap companies that have market capitalizations of $300
million or less. The Fund's primary objective is long-term capital appreciation.
(MULTICLASS) TEAM MANAGED
EQUITY INCOME _______________________________
GABELLI EQUITY INCOME FUND
Seeks to invest primarily in equity securities with above market average yields.
The Fund pays monthly dividends and seeks a high level of total return with an
emphasis on income. (MULTICLASS) PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
WESTWOOD BALANCED FUND
Seeks to invest in a balanced and diversified portfolio of stocks and bonds. The
Fund's primary objective is both capital appreciation and current income.
(MULTICLASS) CO-PORTFOLIO MANAGERS: SUSAN M. BYRNE
MARK FREEMAN, CFA
WESTWOOD INCOME FUND
Seeks to provide a high level of current income as well as long-term capital
appreciation by investing in income producing equity and fixed income
securities. (MULTICLASS) TEAM MANAGED
SPECIALTY EQUITY ____________________________
GAMCO GLOBAL CONVERTIBLE SECURITIES FUND
Seeks to invest principally in bonds and preferred stocks which are convertible
into common stock of foreign and domestic companies. The Fund's primary
objective is total return through a combination of current income and capital
appreciation. (MULTICLASS) TEAM MANAGED
GAMCO GLOBAL OPPORTUNITY FUND
Seeks to invest in common stock of companies which have rapid growth in revenues
and earnings and potential for above average capital appreciation or are
undervalued. The Fund's primary objective is capital appreciation.
(MULTICLASS) TEAM MANAGED
SECTOR ______________________________________
GAMCO GLOBAL TELECOMMUNICATIONS FUND
Seeks to invest in telecommunications companies throughout the world - targeting
undervalued companies with strong earnings and cash flow dynamics. The Fund's
primary objective is capital appreciation. (MULTICLASS) TEAM MANAGED
GAMCO GOLD FUND
Seeks to invest in a global portfolio of equity securities of gold mining and
related companies. The Fund's objective is long-term capital appreciation.
Investment in gold stocks is considered speculative and is affected by a variety
of world-wide economic, financial, and political factors. (MULTICLASS)
PORTFOLIO MANAGER: CAESAR BRYAN
GABELLI UTILITIES FUND
Seeks to provide a high level of total return through a combination of capital
appreciation and current income. (MULTICLASS) TEAM MANAGED
MERGER AND ARBITRAGE ________________________
GABELLI ABC FUND
Seeks to invest in securities with attractive opportunities for appreciation or
investment income. The Fund's primary objective is total return in various
market conditions without excessive risk of capital loss.
(NO-LOAD) PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
CONTRARIAN___________________________________
GAMCO MATHERS FUND
Seeks long-term capital appreciation in various market conditions without
excessive risk of capital loss. (CLASS AAA-NO-LOAD)
PORTFOLIO MANAGER: HENRY VAN DER EB, CFA
COMSTOCK CAPITAL VALUE FUND
Seeks capital appreciation and current income. The Fund may use either long or
short positions to achieve its objective.
(MULTICLASS) PORTFOLIO MANAGER: MARTIN WEINER, CFA
COMSTOCK STRATEGY FUND
The Fund emphasizes investments in debt securities, which maximize total return
in light of credit risk, interest rate risk, and the risk associated with the
length of maturity of debt instruments. (MULTICLASS)
PORTFOLIO MANAGER: MARTIN WEINER, CFA
FIXED INCOME ________________________________
WESTWOOD INTERMEDIATE BOND FUND
Seeks to invest in a diversified portfolio of bonds with various maturities. The
Fund's primary objective is total return.
(MULTICLASS) PORTFOLIO MANAGER: MARK FREEMAN, CFA
CASH MANAGEMENT-MONEY MARKET ________________
GABELLI U.S. TREASURY MONEY MARKET FUND
Seeks to invest exclusively in short-term U.S. Treasury securities. The Fund's
primary objective is to provide high current income consistent with the
preservation of principal and liquidity. (NO-LOAD)
PORTFOLIO MANAGER: JUDITH A. RANERI
AN INVESTMENT IN THE ABOVE MONEY MARKET FUND IS NEITHER INSURED NOR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY GOVERNMENT AGENCY. ALTHOUGH
THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
THE FUNDS MAY INVEST IN FOREIGN SECURITIES WHICH INVOLVE RISKS NOT ORDINARILY
ASSOCIATED WITH INVESTMENTS IN DOMESTIC ISSUES, INCLUDING CURRENCY FLUCTUATION,
ECONOMIC, AND POLITICAL RISKS.
TO RECEIVE A PROSPECTUS, CALL 800-GABELLI (422-3554). INVESTORS SHOULD CAREFULLY
CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE FUND
BEFORE INVESTING. THE PROSPECTUS CONTAINS MORE INFORMATION
ABOUT THIS AND OTHER MATTERS AND SHOULD BE READ CAREFULLY BEFORE INVESTING.
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 CHAIRMAN
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
James E. McKee Agnes Mullady
SECRETARY TREASURER
Peter D. Goldstein
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.
- --------------------------------------------------------------------------------
GAB009Q206SR
GAMCO
GAMCO
INTERNATIONAL
GROWTH
FUND,
INC.
SEMI-ANNUAL REPORT
JUNE 30, 2006
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
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) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(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 September 1, 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
Date September 1, 2006
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Agnes Mullady
-------------------------------------------------------
Agnes Mullady, Principal Financial Officer
& Treasurer
Date September 1, 2006
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.