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 811-04719
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The GAMCO Westwood Funds
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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: September 30
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Date of reporting period: March 31, 2008
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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 WESTWOOD FUNDS
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MIGHTY MITES(SM) FUND
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EQUITY FUND
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BALANCED FUND
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INTERMEDIATE BOND FUND
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SMALLCAP EQUITY FUND
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INCOME FUND
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SEMI-ANNUAL REPORT
MARCH 31, 2008
GAMCO WESTWOOD FUNDS
(UNAUDITED)
CLASS AAA SHARES
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Average Annual Returns - March 31, 2008 (a)
Current
Expense
Ratio
after
Gross Adviser Maximum
Since Expense Reimburse- Sales
1 Year 5 Year 10 Year Inception Ratio ments Charge
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Mighty Mites(SM) ... (7.12)% 13.93% N/A 12.32% 1.72% 1.72% None
Equity ............. 1.97 15.30 6.51 11.64 1.52 1.52 None
Balanced ........... 4.65 10.96 6.26 10.15 1.27 1.27 None
Intermediate Bond .. 6.78 3.26 4.79 5.77 1.64 1.00 None
SmallCap Equity .... (13.54) 13.12 2.39 6.53 2.24 1.50 None
Income ............. (9.33) 13.43 8.73 8.80 2.20 1.50 None
CLASS A SHARES
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Average Annual Returns - March 31, 2008 (a)(b)(e)
Current
Expense
Ratio
after
Gross Adviser Maximum
Since Expense Reimburse- Sales
1 Year 5 Year 10 Year Inception Ratio ments Charge
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Mighty Mites(SM) ... (11.05)% 12.73% N/A 11.68% 1.97% 1.97% 4.00%
Equity ............. (2.22) 14.09 5.81 11.21 1.77 1.77 4.00
Balanced ........... 0.32 9.79 5.56 9.61 1.52 1.52 4.00
Intermediate Bond .. 2.40 2.32 4.29 5.46 1.74 1.10 4.00
SmallCap Equity .... (17.26) 11.96 1.88 6.05 2.49 1.75 4.00
Income ............. (13.03) 12.25 8.11 8.21 2.45 1.75 4.00
CLASS B SHARES
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Average Annual Returns - March 31, 2008 (a)(c)(e)
Current
Expense
Ratio
after
Gross Adviser Maximum
Since Expense Reimburse- Sales
1 Year 5 Year 10 Year Inception Ratio ments Charge
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Mighty Mites(SM) ... (12.38)% 12.84% N/A 11.75% 2.47% 2.47% 5.00%
Equity ............. (3.74) 14.21 5.92 11.27 2.27 2.27 5.00
Balanced ........... (1.17) 9.85 5.66 9.67 2.02 2.02 5.00
Intermediate Bond .. 0.99 2.15 4.22 5.42 2.39 1.75 5.00
SmallCap Equity .... (18.45) 12.07 1.87 6.05 2.99 2.25 5.00
Income ............. (15.13) 12.24 8.21 8.31 2.94 2.25 5.00
CLASS C SHARES
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Average Annual Returns - March 31, 2008 (a)(d)(e)
Current
Expense
Ratio
after
Gross Adviser Maximum
Since Expense Reimburse- Sales
1 Year 5 Year 10 Year Inception Ratio ments Charge
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Mighty Mites(SM) ... (8.65)% 13.11% N/A 11.76% 2.47% 2.47% 1.00%
Equity ............. 0.26 14.45 5.92 11.27 2.27 2.27 1.00
Balanced ........... 2.83 10.12 5.71 9.70 2.02 2.02 1.00
Intermediate Bond .. 6.67 2.51 4.28 5.46 2.39 1.75 1.00
SmallCap Equity .... (15.06) 11.94 1.82 6.00 2.99 2.25 1.00
Income ............. (10.81) 12.69 8.36 8.44 2.94 2.25 1.00
CLASS I SHARES
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Average Annual Returns - March 31, 2008 (a)(e)
Current
Expense
Ratio
after
Gross Adviser Maximum
Since Expense Reimburse- Sales
1 Year 5 Year 10 Year Inception Ratio ments Charge
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Mighty Mites(SM).... (7.06)% 13.95% N/A 12.33% 1.47% 1.47% None
Equity ............. 2.07 15.32 6.52 11.64 1.27 1.27 None
Balanced ........... 4.71 10.98 6.26 10.15 1.02 1.02 None
Intermediate Bond .. 6.70 3.25 4.78 5.76 1.39 0.75 None
SmallCap Equity .... (13.54) 13.12 2.39 6.53 1.99 1.25 None
Income ............. (9.27) 13.45 8.73 8.80 1.95 1.25 None
(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. FOR THE INTERMEDIATE BOND, SMALLCAP EQUITY, AND INCOME FUNDS, THE
ADVISER REIMBURSED EXPENSES TO LIMIT THE EXPENSE RATIO. HAD SUCH
LIMITATIONS NOT BEEN IN PLACE, RETURNS WOULD HAVE BEEN LOWER. THE
CONTRACTUAL EXPENSE LIMITATIONS ARE IN EFFECT THROUGH SEPTEMBER 30, 2008
AND ARE RENEWABLE ANNUALLY BY THE ADVISER. 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.
(b) INCLUDES THE EFFECT OF THE MAXIMUM 4.0% SALES CHARGE AT THE BEGINNING OF
THE PERIOD.
(c) PERFORMANCE RESULTS INCLUDE THE DEFERRED SALES CHARGES FOR THE CLASS B
SHARES UPON REDEMPTION AT THE END OF THE ONE YEAR AND FIVE YEAR PERIODS OF
5% AND 2%, RESPECTIVELY, OF THE FUND'S NET ASSET VALUES ("NAV") PER SHARE
AT THE TIME OF PURCHASE OR SALE, WHICHEVER IS LOWER.
(d) PERFORMANCE RESULTS INCLUDE THE DEFERRED SALES CHARGE FOR THE CLASS C
SHARES UPON REDEMPTION AT THE END OF THE ONE YEAR PERIOD OF 1% OF THE
FUND'S NAV PER SHARE AT THE TIME OF PURCHASE OR SALE, WHICHEVER IS LOWER.
(e) THE PERFORMANCE OF THE CLASS AAA SHARES IS USED TO CALCULATE PERFORMANCE
FOR THE PERIODS PRIOR TO THE ISSUANCE OF CLASS A SHARES, CLASS B SHARES,
CLASS C SHARES, AND CLASS I SHARES. THE PERFORMANCE FOR THE CLASS B SHARES
AND CLASS C SHARES WOULD HAVE BEEN LOWER DUE TO THE ADDITIONAL EXPENSES
ASSOCIATED WITH THESE CLASSES OF SHARES. THE PERFORMANCE FOR THE CLASS I
SHARES WOULD HAVE BEEN HIGHER DUE TO THE LOWER EXPENSES ASSOCIATED WITH
THIS CLASS OF SHARES. THE INCEPTION DATES FOR THE CLASS AAA SHARES AND THE
INITIAL ISSUANCE DATES FOR THE CLASS A SHARES, CLASS B SHARES, CLASS C
SHARES, AND CLASS I SHARES AFTER WHICH SHARES REMAINED CONTINUOUSLY
OUTSTANDING ARE LISTED BELOW.
Class AAA Shares Class A Shares Class B Shares Class C Shares Class I Shares
---------------- -------------- -------------- -------------- --------------
Mighty Mites(SM) ... 05/11/98 11/26/01 06/06/01 08/03/01 01/11/08
Equity ............. 01/02/87 01/28/94 03/27/01 02/13/01 01/11/08
Balanced ........... 10/01/91 04/06/93 03/27/01 09/25/01 01/11/08
Intermediate Bond .. 10/01/91 07/26/01 03/27/01 10/22/01 01/11/08
SmallCap Equity .... 04/15/97 11/26/01 03/27/01 11/26/01 01/11/08
Income ............. 09/30/97 05/09/01 11/26/01 11/26/01 01/11/08
2
GAMCO WESTWOOD FUNDS
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
For the Six Month Period from October 1, 2007 through March 31, 2008
EXPENSE TABLE
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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.
Beginning Ending Annualized Expenses
Account Value Account Value Expense Paid During
10/01/07 03/31/08 Ratio Period*
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GAMCO WESTWOOD MIGHTY MITES(SM) FUND
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ACTUAL FUND RETURN
Class AAA $ 1,000.00 $ 884.60 1.66% $ 7.82
Class A $ 1,000.00 $ 882.80 1.91% $ 8.99
Class B $ 1,000.00 $ 881.30 2.41% $ 11.33
Class C $ 1,000.00 $ 880.90 2.41% $ 11.33
Class I** $ 1,000.00 $ 885.30 1.42% $ 2.85
HYPOTHETICAL 5% RETURN
Class AAA $ 1,000.00 $ 1,016.70 1.66% $ 8.37
Class A $ 1,000.00 $ 1,015.45 1.91% $ 9.62
Class B $ 1,000.00 $ 1,012.95 2.41% $ 12.13
Class C $ 1,000.00 $ 1,012.95 2.41% $ 12.13
Class I** $ 1,000.00 $ 1,007.64 1.42% $ 3.04
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GAMCO WESTWOOD EQUITY FUND
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ACTUAL FUND RETURN
Class AAA $ 1,000.00 $ 922.80 1.47% $ 7.07
Class A $ 1,000.00 $ 922.10 1.72% $ 8.27
Class B $ 1,000.00 $ 919.20 2.22% $ 10.65
Class C $ 1,000.00 $ 919.20 2.22% $ 10.65
Class I** $ 1,000.00 $ 923.70 1.22% $ 2.50
HYPOTHETICAL 5% RETURN
Class AAA $ 1,000.00 $ 1,017.65 1.47% $ 7.41
Class A $ 1,000.00 $ 1,016.40 1.72% $ 8.67
Class B $ 1,000.00 $ 1,013.90 2.22% $ 11.18
Class C $ 1,000.00 $ 1,013.90 2.22% $ 11.18
Class I** $ 1,000.00 $ 1,008.06 1.22% $ 2.61
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GAMCO WESTWOOD BALANCED FUND
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ACTUAL FUND RETURN
Class AAA $ 1,000.00 $ 973.10 1.21% $ 5.97
Class A $ 1,000.00 $ 972.20 1.46% $ 7.20
Class B $ 1,000.00 $ 969.10 1.96% $ 9.65
Class C $ 1,000.00 $ 969.20 1.96% $ 9.65
Class I** $ 1,000.00 $ 973.70 0.96% $ 2.02
HYPOTHETICAL 5% RETURN
Class AAA $ 1,000.00 $ 1,018.95 1.21% $ 6.11
Class A $ 1,000.00 $ 1,017.70 1.46% $ 7.36
Class B $ 1,000.00 $ 1,015.20 1.96% $ 9.87
Class C $ 1,000.00 $ 1,015.20 1.96% $ 9.87
Class I** $ 1,000.00 $ 1,008.62 0.96% $ 2.06
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GAMCO WESTWOOD INTERMEDIATE BOND FUND
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ACTUAL FUND RETURN
Class AAA $ 1,000.00 $ 1,049.00 1.00% $ 5.12
Class A $ 1,000.00 $ 1,048.40 1.10% $ 5.63
Class B $ 1,000.00 $ 1,045.20 1.75% $ 8.95
Class C $ 1,000.00 $ 1,045.00 1.75% $ 8.95
Class I** $ 1,000.00 $ 1,048.30 0.75% $ 1.64
HYPOTHETICAL 5% RETURN
Class AAA $ 1,000.00 $ 1,020.00 1.00% $ 5.05
Class A $ 1,000.00 $ 1,019.50 1.10% $ 5.55
Class B $ 1,000.00 $ 1,016.25 1.75% $ 8.82
Class C $ 1,000.00 $ 1,016.25 1.75% $ 8.82
Class I** $ 1,000.00 $ 1,009.07 0.75% $ 1.61
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GAMCO WESTWOOD SMALLCAP EQUITY FUND
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ACTUAL FUND RETURN
Class AAA $ 1,000.00 $ 839.20 1.50% $ 6.90
Class A $ 1,000.00 $ 838.10 1.75% $ 8.04
Class B $ 1,000.00 $ 835.90 2.25% $ 10.33
Class C $ 1,000.00 $ 835.80 2.25% $ 10.33
Class I** $ 1,000.00 $ 839.20 1.25% $ 2.45
HYPOTHETICAL 5% RETURN
Class AAA $ 1,000.00 $ 1,017.50 1.50% $ 7.57
Class A $ 1,000.00 $ 1,016.25 1.75% $ 8.82
Class B $ 1,000.00 $ 1,013.75 2.25% $ 11.33
Class C $ 1,000.00 $ 1,013.75 2.25% $ 11.33
Class I** $ 1,000.00 $ 1,008.00 1.25% $ 2.68
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GAMCO WESTWOOD INCOME FUND
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ACTUAL FUND RETURN
Class AAA $ 1,000.00 $ 898.50 1.50% $ 7.12
Class A $ 1,000.00 $ 905.10 1.75% $ 8.33
Class B $ 1,000.00 $ 901.90 2.25% $ 10.70
Class C $ 1,000.00 $ 901.90 2.25% $ 10.70
Class I** $ 1,000.00 $ 899.10 1.25% $ 2.53
HYPOTHETICAL 5% RETURN
Class AAA $ 1,000.00 $ 1,017.50 1.50% $ 7.57
Class A $ 1,000.00 $ 1,016.25 1.75% $ 8.82
Class B $ 1,000.00 $ 1,013.75 2.25% $ 11.33
Class C $ 1,000.00 $ 1,013.75 2.25% $ 11.33
Class I** $ 1,000.00 $ 1,008.00 1.25% $ 2.68
* Expenses are equal to the Fund's annualized expense ratio for the last six
months multiplied by the average account value over the period, multiplied
by the number of days in the most recent fiscal half-year, then divided by
366.
** Class I Shares were first issued on January 11, 2008. Account values and
expense ratios are calculated from January 11, 2008 through March 31,
2008.
3
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)
The following tables present portfolio holdings as a percent of total net assets
as of March 31, 2008:
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GAMCO WESTWOOD MIGHTY MITES(SM) FUND
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U.S. Government Obligations ........................................... 31.1%
Financial Services .................................................... 10.0%
Health Care ........................................................... 7.2%
Equipment and Supplies ................................................ 6.3%
Diversified Industrial ................................................ 4.7%
Automotive: Parts and Accessories ..................................... 3.9%
Specialty Chemicals ................................................... 3.1%
Business Services ..................................................... 2.7%
Telecommunications .................................................... 2.5%
Energy and Utilities: Natural Gas ..................................... 2.2%
Broadcasting .......................................................... 1.8%
Energy and Utilities: Integrated ...................................... 1.8%
Energy and Utilities: Services ........................................ 1.8%
Consumer Products ..................................................... 1.7%
Entertainment ......................................................... 1.7%
Food and Beverage ..................................................... 1.7%
Real Estate ........................................................... 1.5%
Electronics ........................................................... 1.5%
Aviation: Parts and Services .......................................... 1.4%
Manufactured Housing and Recreational Vehicles ........................ 1.3%
Hotels and Gaming ..................................................... 1.3%
Energy and Utilities: Water ........................................... 1.1%
Pharmaceuticals ....................................................... 0.9%
Energy and Utilities: Electric ........................................ 0.9%
Closed-End Business Development Company ............................... 0.7%
Wireless Communications ............................................... 0.7%
Transportation ........................................................ 0.6%
Agriculture ........................................................... 0.6%
Restaurants ........................................................... 0.5%
Retail ................................................................ 0.5%
Computer Software and Services ........................................ 0.5%
Building and Construction ............................................. 0.4%
Paper and Forest Products ............................................. 0.3%
Aerospace ............................................................. 0.3%
Communications Equipment .............................................. 0.2%
Publishing ............................................................ 0.2%
Environmental Control ................................................. 0.1%
Metals and Mining ..................................................... 0.0%
Cable ................................................................. 0.0%
Consumer Services ..................................................... 0.0%
Educational Services .................................................. 0.0%
Other Assets and Liabilities (Net) .................................... 0.3%
------
100.0%
======
- --------------------------------------------------------------------------------
GAMCO WESTWOOD EQUITY FUND
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Energy: Oil ........................................................... 11.2%
Financial Services .................................................... 9.7%
Energy: Integrated .................................................... 9.7%
Business Services ..................................................... 7.8%
Consumer Products ..................................................... 7.6%
Banking ............................................................... 7.2%
Telecommunications .................................................... 5.2%
Diversified Industrial ................................................ 5.0%
Computer Software and Services ........................................ 5.0%
Health Care ........................................................... 4.8%
Retail ................................................................ 2.8%
Real Estate Investment Trusts ......................................... 2.6%
Entertainment ......................................................... 2.6%
Communications Equipment .............................................. 2.5%
Metals and Mining ..................................................... 2.4%
Computer Hardware ..................................................... 2.4%
Aviation: Parts and Services .......................................... 2.4%
Food and Beverage ..................................................... 1.9%
Energy: Natural Gas ................................................... 1.5%
Electronics ........................................................... 1.3%
Transportation ........................................................ 1.1%
Other Assets and Liabilities (Net) .................................... 3.3%
------
100.0%
======
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GAMCO WESTWOOD BALANCED FUND
- --------------------------------------------------------------------------------
U.S. Government Agency Obligations .................................... 16.0%
U.S. Government Obligations ........................................... 10.1%
Energy: Oil ........................................................... 8.7%
Banking ............................................................... 6.0%
Financial Services .................................................... 5.9%
Business Services ..................................................... 4.7%
Consumer Products ..................................................... 4.6%
Telecommunications .................................................... 4.1%
Diversified Industrial ................................................ 3.9%
Energy: Integrated .................................................... 3.2%
Health Care ........................................................... 3.0%
Utilities ............................................................. 3.0%
Computer Software and Services ........................................ 2.9%
Retail ................................................................ 2.6%
Computer Hardware ..................................................... 2.0%
Food and Beverage ..................................................... 1.7%
Metals and Mining ..................................................... 1.6%
Energy: Natural Gas ................................................... 1.6%
Aviation: Parts and Services .......................................... 1.6%
Real Estate Investment Trusts ......................................... 1.6%
Entertainment ......................................................... 1.5%
Communications Equipment .............................................. 1.5%
Transportation ........................................................ 1.4%
Electronics ........................................................... 1.3%
Brokerage ............................................................. 1.0%
Other Assets and Liabilities (Net) .................................... 4.5%
------
100.0%
======
4
SUMMARY OF PORTFOLIO HOLDINGS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
GAMCO WESTWOOD INTERMEDIATE BOND FUND
- --------------------------------------------------------------------------------
U.S. Government Obligations .......................................... 32.9%
Corporate Bonds ...................................................... 29.7%
U.S. Government Agency Obligations ................................... 27.1%
Other Assets and Liabilities (Net) ................................... 10.3%
------
100.0%
======
- --------------------------------------------------------------------------------
GAMCO WESTWOOD SMALLCAP EQUITY FUND
- --------------------------------------------------------------------------------
Business Services .................................................... 15.3%
Diversified Industrial ............................................... 14.3%
Health Care .......................................................... 9.1%
Consumer Products .................................................... 8.8%
Computer Software and Services ....................................... 7.1%
Financial Services ................................................... 6.8%
Aerospace ............................................................ 6.2%
Food and Beverage .................................................... 5.9%
Equipment and Supplies ............................................... 5.4%
Specialty Chemicals .................................................. 4.9%
Hotels and Gaming .................................................... 4.6%
Electronics .......................................................... 2.8%
Automotive: Parts and Accessories .................................... 2.6%
Energy and Utilities ................................................. 2.3%
Telecommunications ................................................... 2.2%
U.S. Government Obligations .......................................... 1.8%
Real Estate Investment Trusts ........................................ 1.0%
Other Assets and Liabilities (Net) ................................... (1.1)%
-------
100.0%
=======
- --------------------------------------------------------------------------------
GAMCO WESTWOOD INCOME FUND
- --------------------------------------------------------------------------------
Financial Services ................................................... 19.4%
U.S. Government Agency Obligations ................................... 12.6%
Banking .............................................................. 11.8%
U.S. Government Obligations .......................................... 8.0%
Energy and Utilities: Oil ............................................ 6.4%
Food and Beverage .................................................... 6.3%
Business Services .................................................... 5.6%
Energy and Utilities: Integrated ..................................... 5.2%
Telecommunications ................................................... 4.4%
Health Care .......................................................... 4.4%
Energy and Utilities: Services ....................................... 2.9%
Diversified Industrial ............................................... 2.3%
Specialty Chemicals .................................................. 2.1%
Broadcasting ......................................................... 2.0%
Computer Software and Services ....................................... 1.8%
Energy and Utilities: Natural Gas .................................... 1.8%
Electronics .......................................................... 1.5%
Retail ............................................................... 1.3%
Metals and Mining .................................................... 1.2%
Other Assets and Liabilities (Net) ................................... (1.0)%
-------
100.0%
=======
THE FUNDS FILE A COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION (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 DECEMBER 31,
2007. SHAREHOLDERS MAY OBTAIN THIS INFORMATION AT WWW.GABELLI.COM OR BY CALLING
THE FUND AT 800-GABELLI (800-422-3554). THE FUNDS' FORM N-Q IS AVAILABLE ON THE
SEC'S WEBSITE AT WWW.SEC.GOV AND MAY ALSO BE REVIEWED AND COPIED AT THE SEC'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
Each 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 Funds' proxy voting policies, procedures, and how the Funds voted proxies
relating to portfolio securities are available without charge, upon request, by
(i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One
Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC's website at
www.sec.gov.
- --------------------------------------------------------------------------------
We have separated the portfolio managers' commentaries 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 managers' commentaries are unrestricted. The
financial statements and investment portfolio are mailed separately from the
commentaries. Both the commentaries and the financial statements, including the
portfolio of investments, will be available on our website at
www.gabelli.com/funds.
- --------------------------------------------------------------------------------
5
GAMCO WESTWOOD MIGHTY MITES(SM) FUND
SCHEDULE OF INVESTMENTS -- MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
- ------------ ------------ ---------------
COMMON STOCKS -- 67.5%
AEROSPACE -- 0.3%
15,000 Herley Industries Inc.+ .......................................................... $ 180,664 $ 155,100
500 Innovative Solutions & Support Inc.+ ............................................. 8,973 5,285
------------ ---------------
189,637 160,385
------------ ---------------
AGRICULTURE -- 0.6%
225 J.G. Boswell Co. ................................................................. 144,676 208,125
540 Limoneira Co. .................................................................... 134,325 125,280
------------ ---------------
279,001 333,405
------------ ---------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 3.0%
200 Amerityre Corp.+ ................................................................. 1,108 404
50,000 Earl Scheib Inc.+ ................................................................ 243,865 132,000
24,000 Midas Inc.+ ...................................................................... 357,950 412,560
21,000 Proliance International Inc.+ .................................................... 98,964 38,220
1,000 Puradyn Filter Technologies Inc.+ ................................................ 1,645 320
197,700 Standard Motor Products Inc. ..................................................... 1,621,154 1,209,924
------------ ---------------
2,324,686 1,793,428
------------ ---------------
AVIATION: PARTS AND SERVICES -- 1.4%
800 Curtiss-Wright Corp. ............................................................. 8,610 33,184
6,200 Kaman Corp. ...................................................................... 92,246 175,398
265,410 The Fairchild Corp., Cl. A+ ...................................................... 920,039 605,135
------------ ---------------
1,020,895 813,717
------------ ---------------
BROADCASTING -- 1.8%
50,000 Acme Communications Inc.+ ........................................................ 299,086 101,000
26,000 Beasley Broadcast Group Inc., Cl. A .............................................. 245,872 92,560
50,000 Citadel Broadcasting Corp. ....................................................... 77,290 83,000
44,000 Crown Media Holdings Inc., Cl. A+ ................................................ 348,173 227,480
25,000 Equity Media Holdings Corp.+ ..................................................... 126,560 40,500
10,000 Fisher Communications Inc.+ ...................................................... 413,617 311,600
924 Granite Broadcasting Corp.+ ...................................................... 24,812 15,715
23,000 Gray Television Inc. ............................................................. 212,749 130,870
12,000 Salem Communications Corp., Cl. A ................................................ 124,055 48,120
38,000 Young Broadcasting Inc., Cl. A+ .................................................. 263,049 28,880
------------ ---------------
2,135,263 1,079,725
------------ ---------------
BUILDING AND CONSTRUCTION -- 0.4%
4,000 Huttig Building Products Inc.+ ................................................... 13,358 9,280
8,500 Material Sciences Corp.+ ......................................................... 104,514 65,960
6,200 The Monarch Cement Co. ........................................................... 146,839 186,000
------------ ---------------
264,711 261,240
------------ ---------------
BUSINESS SERVICES -- 2.7%
150,000 AMICAS Inc.+ ..................................................................... 709,160 337,500
28,000 ANC Rental Corp.+ ................................................................ 840 5
103 Chazak Value Corp.+ .............................................................. 0 200
99,000 Edgewater Technology Inc.+ ....................................................... 474,450 521,730
67,500 Nashua Corp.+ .................................................................... 551,362 741,825
500 StarTek Inc.+ .................................................................... 8,375 4,605
------------ ---------------
1,744,187 1,605,865
------------ ---------------
CABLE -- 0.0%
90,000 Adelphia Communications Corp., Cl. A+ (a) ........................................ 15,750 0
90,000 Adelphia Communications Corp., Cl. A, Escrow+ (a) ................................ 0 0
2,500 Outdoor Channel Holdings Inc.+ ................................................... 24,825 18,375
------------ ---------------
40,575 18,375
------------ ---------------
CLOSED-END BUSINESS DEVELOPMENT COMPANY -- 0.7%
27,000 MVC Capital Inc. ................................................................. 270,762 411,480
------------ ---------------
MARKET
SHARES COST VALUE
- ------------ ------------ ---------------
COMMUNICATIONS EQUIPMENT -- 0.2%
10,000 Communications Systems Inc. ...................................................... $ 84,990 $ 107,700
1,000 Technical Communications Corp.+ .................................................. 6,727 5,190
40,000 ViewCast.com Inc.+ ............................................................... 18,600 16,000
------------ ---------------
110,317 128,890
------------ ---------------
COMPUTER SOFTWARE AND SERVICES -- 0.5%
19,000 Furmanite Corp.+ ................................................................. 79,436 161,500
1,910 Gemalto NV+ ...................................................................... 10,945 55,588
834 Prosoft Learning Corp.+ .......................................................... 11,216 3
850,000 StorageNetworks Inc., Escrow+ (a) ................................................ 0 25,500
3,000 Tyler Technologies Inc.+ ......................................................... 12,075 41,940
------------ ---------------
113,672 284,531
------------ ---------------
CONSUMER PRODUCTS -- 1.7%
17,000 Adams Golf Inc.+ ................................................................. 115,878 141,100
1,000 Ducati Motor Holding SpA, ADR+ ................................................... 15,665 26,605
5,000 Levcor International Inc.+ ....................................................... 15,701 1,450
4,500 Marine Products Corp. ............................................................ 4,609 36,360
300 National Presto Industries Inc. .................................................. 8,618 15,720
133,400 Schiff Nutrition International Inc. .............................................. 259,614 799,066
41,530 Syratech Corp.+ .................................................................. 10,383 830
------------ ---------------
430,468 1,021,131
------------ ---------------
CONSUMER SERVICES -- 0.0%
1,000 Collectors Universe Inc. ......................................................... 3,530 10,390
------------ ---------------
DIVERSIFIED INDUSTRIAL -- 4.7%
6,500 Ampco-Pittsburgh Corp. ........................................................... 130,000 279,435
200 Burnham Holdings Inc., Cl. A ..................................................... 3,294 2,925
25,000 Haulotte Group ................................................................... 134,090 568,747
30,000 Hawk Corp., Cl. A+ ............................................................... 481,217 525,600
94,000 Katy Industries Inc.+ ............................................................ 342,483 145,700
80,000 Magnetek Inc.+ ................................................................... 370,614 275,200
20,000 National Patent Development Corp.+ ............................................... 50,340 48,000
10,000 RWC Inc.+ ........................................................................ 217,878 17,750
431,000 Stamford Industrial Group Inc.+ .................................................. 178,289 581,850
36,800 Tech/Ops Sevcon Inc. ............................................................. 220,725 257,600
24,000 WHX Corp.+ ....................................................................... 317,721 63,000
------------ ---------------
2,446,651 2,765,807
------------ ---------------
EDUCATIONAL SERVICES -- 0.0%
600 Universal Technical Institute Inc.+ .............................................. 12,149 7,038
------------ ---------------
ELECTRONICS -- 1.5%
50,000 Alliance Semiconductor Corp. ..................................................... 159,909 55,500
2,500 Bel Fuse Inc., Cl. A ............................................................. 80,685 78,475
65,200 California Micro Devices Corp.+ .................................................. 271,367 191,688
16,000 CTS Corp. ........................................................................ 140,236 171,200
5,000 Methode Electronics Inc. ......................................................... 46,441 58,450
1,000 Schmitt Industries Inc.+ ......................................................... 6,409 5,950
20,000 SIRIT Inc.+ ...................................................................... 11,714 5,456
20,000 Stoneridge Inc.+ ................................................................. 194,714 269,000
178 Trimble Navigation Ltd.+ ......................................................... 4,954 5,100
3,500 Zoran Corp.+ ..................................................................... 22,500 47,810
------------ ---------------
938,929 888,629
------------ ---------------
ENERGY AND UTILITIES: ELECTRIC -- 0.8%
6,000 Maine & Maritimes Corp.+ ......................................................... 176,736 166,800
11,050 Unitil Corp. ..................................................................... 290,031 297,798
------------ ---------------
466,767 464,598
------------ ---------------
See accompanying notes to financial statements.
6
GAMCO WESTWOOD MIGHTY MITES(SM) FUND
SCHEDULE OF INVESTMENTS (CONTINUED) -- MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
- ------------ ------------ ---------------
COMMON STOCKS (CONTINUED)
ENERGY AND UTILITIES: INTEGRATED -- 1.8%
25,000 Aquila Inc.+ ..................................................................... $ 71,600 $ 80,250
49,950 Florida Public Utilities Co. ..................................................... 497,334 556,943
6,000 MGE Energy Inc. .................................................................. 189,291 204,360
800 Pardee Resources Co. Inc. ........................................................ 72,100 189,200
95,200 Progress Energy Inc., CVO+ (a) ................................................... 10,472 31,416
------------ ---------------
840,797 1,062,169
------------ ---------------
ENERGY AND UTILITIES: NATURAL GAS -- 2.2%
7,400 Chesapeake Utilities Corp. ....................................................... 207,025 219,336
30,000 Corning Natural Gas Corp.+ ....................................................... 466,159 483,000
2,000 EnergySouth Inc. ................................................................. 79,670 104,380
2,000 Evergreen Energy Inc.+ ........................................................... 10,040 3,080
31,200 PetroCorp Escrow Shares+ (a) ..................................................... 0 1,872
16,000 RGC Resources Inc. ............................................................... 348,522 445,760
19,400 U.S. Energy Corp. ................................................................ 83,121 64,990
------------ ---------------
1,194,537 1,322,418
------------ ---------------
ENERGY AND UTILITIES: SERVICES -- 1.8%
10,000 Acergy SA, ADR ................................................................... 33,524 213,500
950 Covanta Holding Corp.+ ........................................................... 3,996 26,125
53,000 RPC Inc. ......................................................................... 227,439 805,070
------------ ---------------
264,959 1,044,695
------------ ---------------
ENERGY AND UTILITIES: WATER -- 1.1%
4,500 Artesian Resources Corp., Cl. A .................................................. 48,062 83,385
2,500 California Water Service Group ................................................... 55,553 95,375
4,000 Consolidated Water Co. Ltd. ...................................................... 55,124 88,120
5,700 Middlesex Water Co. .............................................................. 96,987 103,512
2,000 Pennichuck Corp. ................................................................. 45,657 46,200
8,000 SJW Corp. ........................................................................ 98,372 228,720
------------ ---------------
399,755 645,312
------------ ---------------
ENTERTAINMENT -- 1.7%
12,500 Canterbury Park Holding Corp. .................................................... 129,392 118,125
1,802 Chestnut Hill Ventures+ (a) ...................................................... 67,956 50,733
34,000 Dover Motorsports Inc. ........................................................... 170,332 209,100
21,000 Jetix Europe NV .................................................................. 122,472 596,770
800 LodgeNet Entertainment Corp.+ .................................................... 8,800 4,872
5,000 Triple Crown Media Inc.+ ......................................................... 30,966 13,950
------------ ---------------
529,918 993,550
------------ ---------------
ENVIRONMENTAL CONTROL -- 0.0%
10,000 BioteQ Environmental Technologies Inc.+ .......................................... 16,559 33,124
500 Sharps Compliance Corp.+ ......................................................... 1,265 1,175
------------ ---------------
17,824 34,299
------------ ---------------
EQUIPMENT AND SUPPLIES -- 6.3%
130,800 Baldwin Technology Co. Inc., Cl. A+ .............................................. 308,707 336,156
15,000 Capstone Turbine Corp.+ .......................................................... 27,450 31,800
21,500 Cherokee International Corp.+ .................................................... 100,897 40,205
14,000 Core Molding Technologies Inc.+ .................................................. 51,468 99,750
6,100 Fedders Corp.+ ................................................................... 1,645 55
1,000 Genoil Inc.+ ..................................................................... 225 536
10,000 Gerber Scientific Inc.+ .......................................................... 82,578 88,900
8,500 Gildemeister AG .................................................................. 61,536 213,905
4,000 GrafTech International Ltd.+ ..................................................... 24,000 64,840
40,000 Industrial Distribution Group Inc.+ .............................................. 426,349 401,600
20,000 L.S. Starrett Co., Cl. A ......................................................... 326,600 384,800
20,000 Maezawa Kyuso Industries Co. Ltd. ................................................ 108,117 380,217
9,000 Mine Safety Appliances Co. ....................................................... 294,989 370,710
MARKET
SHARES COST VALUE
- ------------ ------------ ---------------
13,600 SL Industries Inc.+ .............................................................. $ 84,464 $ 270,640
1,000 SRS Labs Inc.+ ................................................................... 5,500 5,320
5,000 The Eastern Co. .................................................................. 50,980 78,250
170,000 TransAct Technologies Inc.+ ...................................................... 1,075,474 834,700
9,000 Vicor Corp. ...................................................................... 99,181 107,460
500 Watts Water Technologies Inc., Cl. A ............................................. 7,648 14,015
------------ ---------------
3,137,808 3,723,859
------------ ---------------
FINANCIAL SERVICES -- 10.0%
2,000 Bank of Florida Corp.+ ........................................................... 24,323 20,280
16,100 Berkshire Bancorp Inc. ........................................................... 219,414 231,840
75 Burke & Herbert Bank and Trust Co. ............................................... 95,726 94,200
26,000 Crazy Woman Creek Bancorp Inc. ................................................... 444,343 504,400
181,000 Epoch Holding Corp. .............................................................. 469,220 2,168,380
20 Farmers & Merchants Bank of Long Beach ........................................... 131,500 131,800
6,000 Fidelity Southern Corp. .......................................................... 53,378 50,460
30,300 Flushing Financial Corp. ......................................................... 454,751 532,674
5,400 Gateway Financial Holdings Inc. .................................................. 70,841 57,240
10 Guaranty Corp., Cl. A+ ........................................................... 137,500 160,250
40,000 Integrity Mutual Funds Inc.+ ..................................................... 35,200 19,200
70,000 Ladenburg Thalmann Financial Services Inc.+ ...................................... 50,558 130,900
5,000 Nara Bancorp Inc. ................................................................ 63,818 64,950
11,055 New York Community Bancorp Inc. .................................................. 143,811 201,422
5,697 Northrim BanCorp Inc. ............................................................ 119,035 103,571
7,400 Oritani Financial Corp.+ ......................................................... 97,879 112,258
6,400 Parish National Corp. ............................................................ 238,648 489,600
9,167 Patriot National Bancorp Inc. .................................................... 141,747 138,651
5,000 Provident New York Bancorp ....................................................... 74,850 67,500
3,000 Seacoast Banking Corp. of Florida ................................................ 40,200 32,850
116 Sunwest Bank+ .................................................................... 322,722 307,400
19,000 SWS Group Inc. ................................................................... 238,753 232,370
1,000 TIB Financial Corp. .............................................................. 7,780 8,000
8,100 Wilshire Bancorp Inc. ............................................................ 72,738 61,884
------------ ---------------
3,748,735 5,922,080
------------ ---------------
FOOD AND BEVERAGE -- 1.6%
2,500 Boston Beer Co. Inc., Cl. A+ ..................................................... 55,125 118,850
4,000 Genesee Corp., Cl. A+ (a) ........................................................ 4,060 0
30,100 Genesee Corp., Cl. B+ (a) ........................................................ 13,986 0
800 Hanover Foods Corp., Cl. A+ ...................................................... 81,372 75,200
2,000 J & J Snack Foods Corp. .......................................................... 28,830 54,940
40,000 Lifeway Foods Inc.+ .............................................................. 254,230 427,200
14,000 MGP Ingredients Inc. ............................................................. 67,550 97,860
7,000 Rock Field Co. Ltd. .............................................................. 113,721 110,674
900 Scheid Vineyards Inc., Cl. A+ .................................................... 29,446 27,900
1,000 The Inventure Group Inc.+ ........................................................ 2,660 1,740
6,400 Willamette Valley Vineyards Inc.+ ................................................ 41,644 46,400
------------ ---------------
692,624 960,764
------------ ---------------
HEALTH CARE -- 7.3%
21,000 AFP Imaging Corp.+ ............................................................... 45,653 10,342
2,000 Alpharma Inc., Cl. A+ ............................................................ 44,140 52,420
60,000 BioLase Technology Inc.+ ......................................................... 579,811 185,400
10,000 Boiron SA ........................................................................ 166,957 277,703
1,000 Bruker Corp.+ .................................................................... 5,980 15,390
21,000 Continucare Corp.+ ............................................................... 57,080 52,290
96,000 Del Global Technologies Corp.+ ................................................... 205,665 225,600
4,000 DexCom Inc.+ ..................................................................... 58,335 16,560
1,000 Elite Pharmaceuticals Inc., Cl. A+ ............................................... 2,690 920
See accompanying notes to financial statements.
7
GAMCO WESTWOOD MIGHTY MITES(SM) FUND
SCHEDULE OF INVESTMENTS (CONTINUED) -- MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
- ------------ ------------ ---------------
COMMON STOCKS (CONTINUED)
HEALTH CARE (CONTINUED)
8,000 Exactech Inc.+ ................................................................... $ 126,891 $ 201,520
22,000 Heska Corp.+ ..................................................................... 48,780 34,980
8,000 I-Flow Corp.+ .................................................................... 106,998 112,240
70,400 IntriCon Corp.+ .................................................................. 232,193 562,496
2,000 ICU Medical Inc.+ ................................................................ 56,325 57,540
5,000 Inverness Medical Innovations Inc.+ .............................................. 94,541 150,500
10,000 Langer Inc.+ ..................................................................... 49,577 20,900
32,000 Matrixx Initiatives Inc.+ ........................................................ 510,149 468,480
10,000 Monogram Biosciences Inc.+ ....................................................... 15,050 10,600
21,000 Neogen Corp.+ .................................................................... 160,903 527,100
2,500 NMT Medical Inc.+ ................................................................ 7,858 9,700
5,000 Opko Health Inc.+ ................................................................ 20,353 10,400
1,000 Orthofix International NV+ ....................................................... 27,010 39,770
6,000 Pain Therapeutics Inc.+ .......................................................... 46,488 50,700
10,000 PreMD Inc.+ ...................................................................... 18,320 2,400
20,000 Quidel Corp.+ .................................................................... 88,363 321,200
37,415 RTI Biologics Inc.+ .............................................................. 321,817 353,572
400 Sirona Dental Systems Inc.+ ...................................................... 7,800 10,788
66,000 Sonic Innovations Inc.+ .......................................................... 331,740 318,780
1,000 ThermoGenesis Corp.+ ............................................................. 2,520 1,630
16,000 United-Guardian Inc. ............................................................. 154,087 163,840
3,000 Young Innovations Inc. ........................................................... 81,168 51,960
------------ ---------------
3,675,242 4,317,721
------------ ---------------
HOTELS AND GAMING -- 1.3%
4,000 Dover Downs Gaming & Entertainment Inc. .......................................... 24,903 34,040
2,000 Florida Gaming Corp.+ ............................................................ 6,950 31,000
8,500 Multimedia Games Inc.+ ........................................................... 76,734 45,390
26,300 Sonesta International Hotels Corp., Cl. A ........................................ 1,108,272 650,925
------------ ---------------
1,216,859 761,355
------------ ---------------
MANUFACTURED HOUSING AND RECREATIONAL VEHICLES -- 1.3%
82,000 Cavalier Homes Inc.+ ............................................................. 437,972 129,560
8,000 Cavco Industries Inc.+ ........................................................... 148,769 280,320
9,000 Nobility Homes Inc. .............................................................. 141,603 157,500
13,000 Palm Harbor Homes Inc.+ .......................................................... 244,324 68,380
5,000 Skyline Corp. .................................................................... 169,393 139,100
------------ ---------------
1,142,061 774,860
------------ ---------------
METALS AND MINING -- 0.0%
615,000 Royal Oak Mines Inc.+ (a) ........................................................ 2,314 0
4,000 Uranium Resources Inc.+ .......................................................... 22,056 23,960
------------ ---------------
24,370 23,960
------------ ---------------
PAPER AND FOREST PRODUCTS -- 0.3%
700 Keweenaw Land Association Ltd. ................................................... 130,662 171,500
------------ ---------------
PHARMACEUTICALS -- 0.9%
1,000 Bentley Pharmaceuticals Inc.+ .................................................... 15,730 16,250
30,000 CollaGenex Pharmaceuticals Inc.+ ................................................. 490,449 497,100
------------ ---------------
506,179 513,350
------------ ---------------
PUBLISHING -- 0.2%
14,001 PRIMEDIA Inc. .................................................................... 139,299 102,907
------------ ---------------
REAL ESTATE -- 1.5%
6,100 Bresler & Reiner Inc. ............................................................ 201,306 118,188
6,000 Capital Properties Inc., Cl. A ................................................... 97,890 106,500
15,900 Griffin Land & Nurseries Inc. .................................................... 325,772 548,391
3,000 Gyrodyne Co. of America Inc.+ .................................................... 53,308 120,375
400 Holobeam Inc.+ ................................................................... 15,500 10,600
2,508 Royalty LLC+ (a)(b) .............................................................. 0 4,685
------------ ---------------
693,776 908,739
------------ ---------------
MARKET
SHARES COST VALUE
- ------------ ------------ ---------------
RESTAURANTS -- 0.5%
17,000 Nathan's Famous Inc.+ ............................................................ $ 119,527 $ 238,000
8,000 The Steak n Shake Co.+ ........................................................... 103,837 62,960
------------ ---------------
223,364 300,960
------------ ---------------
RETAIL -- 0.5%
4,000 Bowlin Travel Centers Inc.+ ...................................................... 7,328 6,400
16,000 CoolBrands International Inc.+ ................................................... 37,057 13,094
10,000 Movado Group Inc. ................................................................ 145,136 194,900
1,400 Village Super Market Inc., Cl. A ................................................. 64,779 72,100
------------ ---------------
254,300 286,494
------------ ---------------
SPECIALTY CHEMICALS -- 3.1%
267,226 General Chemical Group Inc.+ ..................................................... 59,859 8,685
30,000 Hawkins Inc. ..................................................................... 380,688 456,000
1,000 KMG Chemicals Inc. ............................................................... 3,270 15,430
55,000 Omnova Solutions Inc.+ ........................................................... 302,075 219,450
70,000 Zep Inc. ......................................................................... 909,647 1,135,400
------------ ---------------
1,655,539 1,834,965
------------ ---------------
TELECOMMUNICATIONS -- 2.5%
1,000 Ambient Corp.+ ................................................................... 280 39
1,000 Applied Signal Technology Inc. ................................................... 16,330 11,800
175 Consolidated Communications Holdings Inc. ........................................ 3,118 2,649
24,000 D&E Communications Inc. .......................................................... 265,251 213,600
2,000 Electronic Systems Technology Inc. ............................................... 1,410 1,600
33,000 HickoryTech Corp. ................................................................ 337,919 269,610
80 Horizon Telecom Inc., Cl. A ...................................................... 9,250 10,200
350 Horizon Telecom Inc., Cl. B ...................................................... 39,964 31,500
1,400 Lexcom Inc., Cl. B, Non-Voting+ .................................................. 78,659 88,900
31,300 New Ulm Telecom Inc. ............................................................. 344,392 336,475
10,000 PNV Inc.+ ........................................................................ 3 18
2,500 Preformed Line Products Co. ...................................................... 115,368 121,700
18,000 Shenandoah Telecommunications Co. ................................................ 94,686 267,120
33,000 Sycamore Networks Inc.+ .......................................................... 107,085 120,780
152 Telecorp Escrow Shares (a) ....................................................... 0 0
2,305 Virgin Media Inc. ................................................................ 31,540 32,431
------------ ---------------
1,445,255 1,508,422
------------ ---------------
TRANSPORTATION -- 0.6%
19,400 Providence and Worcester Railroad Co. ............................................ 340,743 373,450
400 Trailer Bridge Inc.+ ............................................................. 4,452 3,548
------------ ---------------
345,195 376,998
------------ ---------------
WIRELESS COMMUNICATIONS -- 0.7%
9,000 Rural Cellular Corp., Cl. A+ ..................................................... 7,830 398,070
------------ ---------------
TOTAL COMMON STOCKS .............................................................. 35,079,088 40,038,081
------------ ---------------
PREFERRED STOCKS -- 0.9%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.9%
16,000 Jungheinrich AG Pfd. ............................................................. 129,990 580,982
------------ ---------------
CONVERTIBLE PREFERRED STOCKS -- 0.1%
BUSINESS SERVICES -- 0.0%
150 Interep National Radio Sales Inc., 4.000% Cv. Pfd., Ser. A+ (a)(b)(c) ............ 13,849 300
------------ ---------------
FOOD AND BEVERAGE -- 0.1%
2,400 Seneca Foods Corp., Cv. Pfd., Ser. 2003+ ......................................... 36,600 48,384
------------ ---------------
TOTAL CONVERTIBLE PREFERRED STOCKS ............................................... 50,449 48,684
------------ ---------------
See accompanying notes to financial statements.
8
GAMCO WESTWOOD MIGHTY MITES(SM) FUND
SCHEDULE OF INVESTMENTS (CONTINUED) -- MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
- ------------ ------------ ---------------
WARRANTS -- 0.1%
BROADCASTING -- 0.0%
64 Granite Broadcasting Corp., Ser. A, expire 06/04/12+ ............................. $ 0 $ 19
64 Granite Broadcasting Corp., Ser. B, expire 06/04/12+ ............................. 0 16
------------ ---------------
0 35
------------ ---------------
BUSINESS SERVICES -- 0.0%
1,666 Avalon Digital Marketing Systems Inc., expire 11/11/11+ (a)(b) ................... 0 0
------------ ---------------
ENERGY AND UTILITIES: ELECTRIC -- 0.1%
1,680 British Energy Group plc, expire 01/17/10+ ....................................... 5,488 18,421
15,000 Corning Natural Gas Corp., expire 08/17/11+ ...................................... 0 27,000
------------ ---------------
5,488 45,421
------------ ---------------
TOTAL WARRANTS ................................................................... 5,488 45,456
------------ ---------------
PRINCIPAL MARKET
AMOUNT COST VALUE
- ------------ ------------ ---------------
U.S. GOVERNMENT OBLIGATIONS -- 31.1%
U.S. TREASURY BILLS -- 28.2%
$ 16,817,000 U.S. Treasury Bills, 0.446% to 2.181%++, 04/03/08 to 09/18/08 .................... $ 16,761,576 $ 16,758,741
------------ ---------------
U.S. TREASURY NOTES -- 2.9%
1,675,000 U.S. Treasury Note, 5.000%, 07/31/08 ............................................. 1,690,925 1,695,284
------------ ---------------
TOTAL U.S. GOVERNMENT OBLIGATIONS ................................................ 18,452,501 18,454,025
------------ ---------------
TOTAL INVESTMENTS -- 99.7% ....................................................... $ 53,717,516 59,167,228
============
OTHER ASSETS AND LIABILITIES (NET) -- 0.3% ...................................................... 155,465
---------------
NET ASSETS -- 100.0% ............................................................................ $ 59,322,693
===============
- ----------
(a) Security fair valued under procedures established by the Board of
Trustees. The procedures may include reviewing available financial
information about the company and reviewing the valuation of comparable
securities and other factors on a regular basis. At March 31, 2008, the
market value of fair valued securities amounted to $114,506 or 0.19% of
total net assets.
(b) At March 31, 2008, the Fund held investments in restricted and illiquid
securities amounting to $4,985 or 0.01% of total net assets, which were
valued under methods approved by the Board of Trustees, as follows:
03/31/08
CARRYING
ACQUISITION ACQUISITION ACQUISITION VALUE
SHARES ISSUER DATE COST PER UNIT
- ------------ ------- ------------- ------------ ---------------
1,666 Avalon Digital Marketing Systems Inc., Warrants expire 11/11/11 .. 04/03/00 -- $ 0.0000
150 Interep National Radio Sales Inc., 4.000% Cv. Pfd., Ser. A ....... 05/03/02 $ 13,849 2.0000
2,508 Royalty LLC ...................................................... 09/09/03 -- 1.8680
(c) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At March
31, 2008, the market value of the Rule 144A security amounted to $300 or
0.00% of total net assets.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR American Depositary Receipt
CVO Contingent Value Obligation
See accompanying notes to financial statements.
9
GAMCO WESTWOOD EQUITY FUND
SCHEDULE OF INVESTMENTS -- MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
- ------------ --------------- ---------------
COMMON STOCKS -- 96.7%
AVIATION: PARTS AND SERVICES -- 2.4%
64,300 United Technologies Corp. ..................................................... $ 3,780,972 $ 4,425,126
--------------- ---------------
BANKING -- 7.2%
61,700 Bank of America Corp. ......................................................... 2,808,219 2,339,047
104,033 Citigroup Inc. ................................................................ 3,923,571 2,228,387
117,800 Comerica Inc. ................................................................. 5,415,968 4,132,424
112,284 JPMorgan Chase & Co. .......................................................... 4,323,880 4,822,598
--------------- ---------------
16,471,638 13,522,456
--------------- ---------------
BUSINESS SERVICES -- 7.8%
134,800 Accenture Ltd., Cl. A ......................................................... 5,274,790 4,740,916
117,400 Automatic Data Processing Inc. ................................................ 4,908,489 4,976,586
22,100 MasterCard Inc., Cl. A ........................................................ 3,479,398 4,928,079
--------------- ---------------
13,662,677 14,645,581
--------------- ---------------
COMMUNICATIONS EQUIPMENT -- 2.5%
195,200 Cisco Systems Inc.+ ........................................................... 5,113,603 4,702,368
--------------- ---------------
COMPUTER HARDWARE -- 2.4%
39,100 International Business Machines Corp. ......................................... 4,090,896 4,501,974
--------------- ---------------
COMPUTER SOFTWARE AND SERVICES -- 5.0%
168,400 Microsoft Corp. ............................................................... 4,812,642 4,779,192
233,200 Oracle Corp.+ ................................................................. 3,675,126 4,561,392
--------------- ---------------
8,487,768 9,340,584
--------------- ---------------
CONSUMER PRODUCTS -- 7.6%
64,480 Altria Group Inc. ............................................................. 1,282,205 1,431,456
61,000 Colgate-Palmolive Co. ......................................................... 3,466,989 4,752,510
70,400 NIKE Inc., Cl. B .............................................................. 4,060,847 4,787,200
64,480 Philip Morris International Inc.+ ............................................. 2,991,811 3,261,398
--------------- ---------------
11,801,852 14,232,564
--------------- ---------------
DIVERSIFIED INDUSTRIAL -- 5.0%
138,200 General Electric Co. .......................................................... 4,118,799 5,114,782
39,700 ITT Corp. ..................................................................... 1,822,809 2,056,857
40,300 Textron Inc. .................................................................. 1,663,264 2,233,426
--------------- ---------------
7,604,872 9,405,065
--------------- ---------------
ELECTRONICS -- 1.3%
34,400 MEMC Electronic Materials Inc.+ ............................................... 2,061,319 2,438,960
--------------- ---------------
ENERGY: INTEGRATED -- 9.7%
106,800 Dominion Resources Inc. ....................................................... 4,592,276 4,361,712
56,100 Exelon Corp. .................................................................. 3,108,375 4,559,247
90,400 McDermott International Inc.+ ................................................. 4,132,894 4,955,728
116,500 PG&E Corp. .................................................................... 4,703,202 4,289,530
--------------- ---------------
16,536,747 18,166,217
--------------- ---------------
ENERGY: NATURAL GAS -- 1.5%
23,606 Apache Corp. .................................................................. 1,521,911 2,852,077
--------------- ---------------
MARKET
SHARES COST VALUE
- ------------ --------------- ---------------
ENERGY: OIL -- 11.2%
61,700 ConocoPhillips ................................................................ $ 3,404,081 $ 4,702,157
52,000 Exxon Mobil Corp. ............................................................. 2,168,886 4,398,160
96,400 Marathon Oil Corp. ............................................................ 4,216,466 4,395,840
58,035 Murphy Oil Corp. .............................................................. 3,074,258 4,766,995
37,010 Occidental Petroleum Corp. .................................................... 1,521,739 2,708,021
--------------- ---------------
14,385,430 20,971,173
--------------- ---------------
ENTERTAINMENT -- 2.6%
153,200 The Walt Disney Co. ........................................................... 5,388,054 4,807,416
--------------- ---------------
FINANCIAL SERVICES -- 9.7%
33,600 Arch Capital Group Ltd.+ ...................................................... 2,427,172 2,307,312
23,700 Franklin Resources Inc. ....................................................... 2,301,332 2,298,663
61,600 Hartford Financial Services Group Inc. ........................................ 5,327,468 4,667,432
56,900 Lazard Ltd., Cl. A ............................................................ 2,680,989 2,173,580
105,800 The Bank of New York Mellon Corp. ............................................. 4,544,793 4,415,034
83,300 Wells Fargo & Co. ............................................................. 2,330,262 2,424,030
--------------- ---------------
19,612,016 18,286,051
--------------- ---------------
FOOD AND BEVERAGE -- 1.9%
60,000 General Mills Inc. 3,212,008 3,592,800
--------------- ---------------
HEALTH CARE -- 4.8%
71,200 Johnson & Johnson ............................................................. 4,685,481 4,618,744
208,900 Pfizer Inc. ................................................................... 5,215,762 4,372,277
--------------- ---------------
9,901,243 8,991,021
--------------- ---------------
METALS AND MINING -- 2.4%
47,500 Freeport-McMoRan Copper & Gold Inc. ........................................... 3,443,271 4,570,450
--------------- ---------------
REAL ESTATE INVESTMENT TRUSTS -- 2.6%
83,300 ProLogis ...................................................................... 4,459,928 4,903,038
--------------- ---------------
RETAIL -- 2.8%
128,100 CVS Caremark Corp. ............................................................ 4,047,749 5,189,331
--------------- ---------------
TELECOMMUNICATIONS -- 5.2%
124,500 AT&T Inc. ..................................................................... 4,515,970 4,768,350
137,204 Verizon Communications Inc. ................................................... 4,856,368 5,001,086
--------------- ---------------
9,372,338 9,769,436
--------------- ---------------
TRANSPORTATION -- 1.1%
84,100 Eagle Bulk Shipping Inc. ...................................................... 1,603,929 2,166,416
--------------- ---------------
TOTAL COMMON STOCKS ........................................................... 166,560,221 181,480,104
--------------- ---------------
TOTAL INVESTMENTS -- 96.7% $ 166,560,221 181,480,104
===============
OTHER ASSETS AND LIABILITIES (NET) -- 3.3% 6,248,035
---------------
NET ASSETS -- 100.0% ............................................................................ $ 187,728,139
===============
- ----------
+ Non-income producing security.
See accompanying notes to financial statements.
10
GAMCO WESTWOOD BALANCED FUND
SCHEDULE OF INVESTMENTS -- MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
- ------------ --------------- ---------------
COMMON STOCKS -- 59.3%
AVIATION: PARTS AND SERVICES -- 1.6%
35,000 United Technologies Corp. ..................................................... $ 1,934,317 $ 2,408,700
--------------- ---------------
BANKING -- 4.4%
30,100 Bank of America Corp. ......................................................... 1,314,462 1,141,091
50,233 Citigroup Inc. ................................................................ 1,922,962 1,075,991
57,700 Comerica Inc. ................................................................. 2,679,611 2,024,116
54,696 JPMorgan Chase & Co. .......................................................... 2,223,936 2,349,193
--------------- ---------------
8,140,971 6,590,391
--------------- ---------------
BUSINESS SERVICES -- 4.7%
66,500 Accenture Ltd., Cl. A ......................................................... 2,594,367 2,338,805
55,300 Automatic Data Processing Inc. ................................................ 2,342,795 2,344,167
10,700 MasterCard Inc., Cl. A ........................................................ 1,685,952 2,385,993
--------------- ---------------
6,623,114 7,068,965
--------------- ---------------
COMMUNICATIONS EQUIPMENT -- 1.5%
93,800 Cisco Systems Inc.+ ........................................................... 2,454,323 2,259,642
--------------- ---------------
COMPUTER HARDWARE -- 1.4%
19,100 International Business Machines Corp. ......................................... 2,028,319 2,199,174
--------------- ---------------
COMPUTER SOFTWARE AND SERVICES -- 2.9%
78,000 Microsoft Corp. ............................................................... 2,192,863 2,213,640
114,480 Oracle Corp.+ ................................................................. 1,851,644 2,239,229
--------------- ---------------
4,044,507 4,452,869
--------------- ---------------
CONSUMER PRODUCTS -- 4.6%
32,020 Altria Group Inc. ............................................................. 632,632 710,844
29,100 Colgate-Palmolive Co. ......................................................... 1,611,691 2,267,181
34,400 NIKE Inc., Cl. B .............................................................. 1,970,074 2,339,200
32,020 Philip Morris International Inc.+ ............................................. 1,476,142 1,619,572
--------------- ---------------
5,690,539 6,936,797
--------------- ---------------
DIVERSIFIED INDUSTRIAL -- 3.1%
66,000 General Electric Co. .......................................................... 1,944,668 2,442,660
21,590 ITT Corp. ..................................................................... 1,062,115 1,118,578
20,600 Textron Inc. .................................................................. 861,473 1,141,652
--------------- ---------------
3,868,256 4,702,890
--------------- ---------------
ELECTRONICS -- 0.8%
17,100 MEMC Electronic Materials Inc.+ ............................................... 1,035,693 1,212,390
--------------- ---------------
ENERGY: INTEGRATED -- 3.2%
55,000 Dominion Resources Inc. ....................................................... 2,353,966 2,246,200
46,300 McDermott International Inc.+ ................................................. 2,100,365 2,538,166
--------------- ---------------
4,454,331 4,784,366
--------------- ---------------
ENERGY: NATURAL GAS -- 0.9%
11,855 Apache Corp. .................................................................. 776,121 1,432,321
--------------- ---------------
ENERGY: OIL -- 7.0%
31,200 ConocoPhillips ................................................................ 1,919,714 2,377,752
26,800 Exxon Mobil Corp. ............................................................. 1,218,011 2,266,744
47,630 Marathon Oil Corp. ............................................................ 2,122,985 2,171,928
29,986 Murphy Oil Corp. .............................................................. 1,592,098 2,463,050
18,200 Occidental Petroleum Corp. .................................................... 740,410 1,331,694
--------------- ---------------
7,593,218 10,611,168
--------------- ---------------
ENTERTAINMENT -- 1.5%
72,100 The Walt Disney Co. ........................................................... 2,539,328 2,262,498
--------------- ---------------
FINANCIAL SERVICES -- 5.9%
16,000 Arch Capital Group Ltd.+ ...................................................... 1,155,834 1,098,720
11,400 Franklin Resources Inc. ....................................................... 1,084,461 1,105,686
29,700 Hartford Financial Services Group Inc. ........................................ 2,545,605 2,250,369
MARKET
SHARES COST VALUE
- ------------ --------------- ---------------
29,400 Lazard Ltd., Cl. A ............................................................ $ 1,372,824 $ 1,123,080
51,800 The Bank of New York Mellon Corp. ............................................. 2,227,139 2,161,614
41,600 Wells Fargo & Co. ............................................................. 1,163,080 1,210,560
--------------- ---------------
9,548,943 8,950,029
--------------- ---------------
FOOD AND BEVERAGE -- 1.1%
28,900 General Mills Inc. ............................................................ 1,535,648 1,730,532
--------------- ---------------
HEALTH CARE -- 3.0%
34,600 Johnson & Johnson ............................................................. 2,284,166 2,244,502
110,500 Pfizer Inc. ................................................................... 2,723,091 2,312,765
--------------- ---------------
5,007,257 4,557,267
--------------- ---------------
METALS AND MINING -- 1.6%
25,800 Freeport-McMoRan Copper & Gold Inc. ........................................... 1,958,781 2,482,476
--------------- ---------------
REAL ESTATE INVESTMENT TRUSTS -- 1.6%
40,400 ProLogis ...................................................................... 2,163,251 2,377,944
--------------- ---------------
RETAIL -- 1.7%
62,200 CVS Caremark Corp. ............................................................ 1,949,453 2,519,722
--------------- ---------------
TELECOMMUNICATIONS -- 3.1%
61,200 AT&T Inc. ..................................................................... 2,209,366 2,343,960
65,418 Verizon Communications Inc. ................................................... 2,233,629 2,384,486
--------------- ---------------
4,442,995 4,728,446
--------------- ---------------
TRANSPORTATION -- 0.7%
41,200 Eagle Bulk Shipping Inc. ...................................................... 785,633 1,061,312
--------------- ---------------
UTILITIES -- 3.0%
27,400 Exelon Corp. .................................................................. 1,526,562 2,226,798
60,900 PG&E Corp. .................................................................... 2,413,000 2,242,338
--------------- ---------------
3,939,562 4,469,136
--------------- ---------------
TOTAL COMMON STOCKS ........................................................... 82,514,560 89,799,035
--------------- ---------------
PRINCIPAL
AMOUNT
- ------------
CORPORATE BONDS -- 10.1%
BANKING -- 1.6%
$ 1,250,000 Bank of America Corp., 5.375%, 06/15/14 ....................................... 1,290,674 1,287,209
1,125,000 Citigroup Inc., 6.500%, 01/18/11 .............................................. 1,187,807 1,167,365
--------------- ---------------
2,478,481 2,454,574
--------------- ---------------
BROKERAGE -- 1.0%
1,450,000 The Goldman Sachs Group Inc., 6.650%, 05/15/09 ................................ 1,452,949 1,488,579
--------------- ---------------
COMPUTER HARDWARE -- 0.6%
950,000 International Business Machines Corp., 5.700%, 09/14/17 ....................... 967,570 997,002
--------------- ---------------
DIVERSIFIED INDUSTRIAL -- 0.8%
1,200,000 General Electric Co., 5.000%, 02/01/13 ........................................ 1,209,523 1,244,316
--------------- ---------------
ELECTRONICS -- 0.5%
750,000 Koninklijke Philips Electronics NV, 4.625%, 03/11/13 .......................... 747,120 754,651
--------------- ---------------
ENERGY: NATURAL GAS -- 0.7%
1,000,000 Apache Corp., 5.250%, 04/15/13 ................................................ 999,891 1,048,183
--------------- ---------------
See accompanying notes to financial statements.
11
GAMCO WESTWOOD BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED) -- MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COST VALUE
- ------------ --------------- ---------------
CORPORATE BONDS (CONTINUED)
ENERGY: OIL -- 1.7%
$ 1,000,000 Anadarko Petroleum Corp., 3.200%, 09/15/09 (a) ................................ $ 1,000,000 $ 981,420
500,000 Marathon Oil Corp., 5.900%, 03/15/18 .......................................... 502,865 503,538
1,005,000 Occidental Petroleum Corp., MTN, 4.250%, 03/15/10 ............................. 1,006,137 1,031,954
--------------- ---------------
2,509,002 2,516,912
--------------- ---------------
FOOD AND BEVERAGE -- 0.6%
950,000 Anheuser-Busch Cos. Inc., 4.375%, 01/15/13 .................................... 939,947 965,527
--------------- ---------------
RETAIL -- 0.9%
1,250,000 Wal-Mart Stores Inc., 6.875%, 08/10/09 ........................................ 1,270,898 1,319,940
--------------- ---------------
TELECOMMUNICATIONS -- 1.0%
1,460,000 Verizon Communications Inc., Insured by MBIA Inc., 6.460%, 04/15/08 ........... 1,460,094 1,460,094
--------------- ---------------
TRANSPORTATION -- 0.7%
1,000,000 Burlington Northern Santa Fe Corp., Deb., 5.650%, 05/01/17 .................... 982,880 1,003,116
--------------- ---------------
TOTAL CORPORATE BONDS ......................................................... 15,018,355 15,252,894
--------------- ---------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 16.0%
FEDERAL HOME LOAN BANK -- 3.1%
1,500,000 5.125%, 06/18/08 ............................................................ 1,500,267 1,508,634
1,500,000 4.625%, 11/21/08 ............................................................ 1,495,706 1,522,071
1,500,000 5.375%, 05/18/16 ............................................................ 1,508,443 1,650,453
--------------- ---------------
4,504,416 4,681,158
--------------- ---------------
FEDERAL HOME LOAN MORTGAGE CORP. -- 5.4%
1,500,000 4.250%, 07/15/09 ............................................................ 1,487,384 1,538,067
1,500,000 4.750%, 12/08/10 ............................................................ 1,491,657 1,583,421
1,250,000 5.125%, 07/15/12 ............................................................ 1,239,823 1,353,370
2,000,000 5.000%, 07/15/14 ............................................................ 2,042,550 2,160,908
1,500,000 5.250%, 04/18/16 ............................................................ 1,479,705 1,632,261
--------------- ---------------
7,741,119 8,268,027
--------------- ---------------
PRINCIPAL MARKET
AMOUNT COST VALUE
- ------------ --------------- ---------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 7.5%
$ 1,500,000 2.467%++, 07/23/08 .......................................................... $ 1,488,512 $ 1,490,561
1,250,000 3.250%, 02/15/09 ............................................................ 1,238,387 1,260,613
1,600,000 4.250%, 05/15/09 ............................................................ 1,586,378 1,635,723
1,250,000 2.500%, 04/09/10 ............................................................ 1,253,863 1,255,581
1,500,000 4.250%, 08/15/10 ............................................................ 1,465,880 1,563,864
1,500,000 5.375%, 11/15/11 ............................................................ 1,508,030 1,632,525
1,500,000 5.000%, 04/15/15 ............................................................ 1,559,572 1,619,352
775,000 5.375%, 06/12/17 ............................................................ 847,179 852,716
--------------- ---------------
10,947,801 11,310,935
--------------- ---------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 23,193,336 24,260,120
--------------- ---------------
U.S. GOVERNMENT OBLIGATIONS -- 10.1%
U.S. TREASURY BILLS -- 2.0%
3,000,000 U.S. Treasury Bills, 1.438% to 2.390%++, 04/17/08 to 07/17/08 ................. 2,992,038 2,992,305
--------------- ---------------
U.S. TREASURY INFLATION INDEXED NOTES -- 1.1%
1,500,000 0.875%, 04/15/10 .............................................................. 1,675,565 1,710,587
--------------- ---------------
U.S. TREASURY NOTES -- 7.0%
1,500,000 4.875%, 04/30/08 ............................................................ 1,499,887 1,499,887
1,500,000 4.875%, 08/31/08 ............................................................ 1,499,750 1,521,564
2,000,000 3.375%, 12/15/08 ............................................................ 1,988,532 2,027,658
1,500,000 4.000%, 02/15/15 ............................................................ 1,472,343 1,613,439
2,000,000 4.250%, 08/15/15 ............................................................ 1,995,407 2,179,532
1,500,000 5.125%, 05/15/16 ............................................................ 1,509,173 1,709,298
--------------- ---------------
9,965,092 10,551,378
--------------- ---------------
TOTAL U.S. GOVERNMENT OBLIGATIONS ............................................. 14,632,695 15,254,270
--------------- ---------------
TOTAL INVESTMENTS -- 95.5% .................................................... $ 135,358,946 144,566,319
===============
OTHER ASSETS AND LIABILITIES (NET) -- 4.5% ...................................................... 6,765,540
---------------
NET ASSETS -- 100.0% ............................................................................ $ 151,331,859
===============
- ----------
(a) Floating rate security. The rate disclosed is that in effect at March 31,
2008.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
MTN Medium Term Note
See accompanying notes to financial statements.
12
GAMCO WESTWOOD INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS -- MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COST VALUE
- ------------ --------------- ---------------
CORPORATE BONDS -- 29.7%
BANKING -- 3.9%
$ 300,000 Bank of America Corp.,
5.375%, 06/15/14 ........................................................... $ 309,762 $ 308,930
225,000 Citigroup Inc.,
6.500%, 01/18/11 ........................................................... 237,368 233,473
--------------- ---------------
547,130 542,403
--------------- ---------------
COMPUTER HARDWARE -- 1.5%
200,000 International Business Machines Corp.,
5.700%, 09/14/17 ........................................................... 203,699 209,895
--------------- ---------------
DIVERSIFIED INDUSTRIAL -- 1.8%
250,000 General Electric Co.,
5.000%, 02/01/13 ........................................................... 251,984 259,233
--------------- ---------------
ELECTRONICS -- 1.4%
200,000 Koninklijke Philips Electronics NV,
4.625%, 03/11/13 ........................................................... 199,232 201,240
--------------- ---------------
ENERGY AND UTILITIES: NATURAL GAS -- 1.5%
200,000 Apache Corp.,
5.250%, 04/15/13 ........................................................... 199,572 209,637
--------------- ---------------
ENERGY AND UTILITIES: OIL -- 4.0%
200,000 Anadarko Petroleum Corp.,
3.200%, 09/15/09 (a) ....................................................... 200,000 196,284
125,000 Marathon Oil Corp.,
5.900%, 03/15/18 ........................................................... 125,716 125,884
225,000 Occidental Petroleum Corp., MTN,
4.250%, 03/15/10 ........................................................... 225,000 231,035
--------------- ---------------
550,716 553,203
--------------- ---------------
FINANCIAL SERVICES -- 9.1%
200,000 American Express Credit Corp., MTN,
2.978%, 06/16/11 (a) ....................................................... 200,000 191,792
260,000 International Bank for Reconstruction & Development,
8.625%, 10/15/16 ........................................................... 310,509 351,145
275,000 Merrill Lynch & Co. Inc., MTN, Series C,
5.000%, 01/15/15 ........................................................... 275,203 255,916
200,000 SLM Corp.,
5.450%, 04/25/11 ........................................................... 200,082 160,915
300,000 The Goldman Sachs Group Inc.,
6.650%, 05/15/09 ........................................................... 302,839 307,982
--------------- ---------------
1,288,633 1,267,750
--------------- ---------------
FOOD AND BEVERAGE -- 1.8%
250,000 Anheuser-Busch Cos. Inc.,
4.375%, 01/15/13 ........................................................... 247,361 254,086
--------------- ---------------
RETAIL -- 1.5%
200,000 Wal-Mart Stores Inc.,
6.875%, 08/10/09 ........................................................... 203,344 211,191
--------------- ---------------
TELECOMMUNICATIONS -- 0.9%
125,000 Verizon Communications Inc., Insured by MBIA Inc.,
6.460%, 04/15/08 ........................................................... 125,017 125,017
--------------- ---------------
TRANSPORTATION -- 2.3%
200,000 Burlington Northern Santa Fe Corp., Deb.,
5.650%, 05/01/17 ........................................................... 199,079 200,623
125,000 CSX Corp.,
6.250%, 04/01/15 ........................................................... 124,930 126,936
--------------- ---------------
324,009 327,559
--------------- ---------------
TOTAL CORPORATE BONDS ......................................................... 4,140,697 4,161,214
--------------- ---------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 27.1%
FEDERAL HOME LOAN BANK -- 3.3%
175,000 3.875%, 01/15/10 ........................................................... 171,616 180,027
250,000 5.375%, 05/18/16 ........................................................... 251,407 275,075
--------------- ---------------
423,023 455,102
--------------- ---------------
PRINCIPAL MARKET
AMOUNT COST VALUE
- ------------ --------------- ---------------
FEDERAL HOME LOAN MORTGAGE CORP. -- 3.7%
$ 250,000 3.625%, 09/15/08 ........................................................... $ 248,828 $ 251,440
250,000 5.125%, 07/15/12 ........................................................... 262,405 270,674
--------------- ---------------
511,233 522,114
--------------- ---------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 15.0%
350,000 2.467%++, 07/23/08 ......................................................... 347,319 347,797
250,000 4.250%, 05/15/09 ........................................................... 249,009 255,582
300,000 2.500%, 04/09/10 ........................................................... 300,927 301,339
250,000 4.250%, 08/15/10 ........................................................... 248,003 260,644
350,000 5.375%, 11/15/11 ........................................................... 365,470 380,922
275,000 5.375%, 06/12/17 ........................................................... 300,612 302,577
124,123 Pool #745122,
5.500%, 09/01/20 ........................................................... 123,892 127,194
122,556 Pool #255554,
5.500%, 01/01/35 ........................................................... 124,439 124,048
--------------- ---------------
2,059,671 2,100,103
--------------- ---------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 5.1%
7,764 Pool #580871,
6.500%, 12/15/31 ........................................................... 7,777 8,115
76,512 Pool #562288,
6.000%, 12/15/33 ........................................................... 77,958 79,255
131,081 Pool #604946,
5.500%, 01/15/34 ........................................................... 132,930 133,965
113,097 Pool #604970,
5.500%, 01/15/34 ........................................................... 114,368 115,585
157,372 Pool #003747,
5.000%, 08/20/35 ........................................................... 155,967 156,949
217,742 Pool #550728,
5.500%, 11/15/35 ........................................................... 218,202 222,519
--------------- ---------------
707,202 716,388
--------------- ---------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS ...................................... 3,701,129 3,793,707
--------------- ---------------
U.S. GOVERNMENT OBLIGATIONS -- 32.9%
U.S. TREASURY BILLS -- 10.0%
1,400,000 U.S. Treasury Bills,
1.438% to 3.328%++,
04/17/08 to 07/17/08 ....................................................... 1,395,111 1,395,853
--------------- ---------------
U.S. TREASURY BONDS -- 8.6%
250,000 7.125%, 02/15/23 ........................................................... 304,731 331,348
300,000 6.125%, 11/15/27 ........................................................... 308,412 372,516
275,000 5.500%, 08/15/28 ........................................................... 300,071 318,914
150,000 5.375%, 02/15/31 ........................................................... 168,815 173,531
--------------- ---------------
1,082,029 1,196,309
--------------- ---------------
U.S. TREASURY INFLATION INDEXED NOTES -- 2.2%
275,000 0.875%, 04/15/10 ........................................................... 307,275 313,608
--------------- ---------------
U.S. TREASURY NOTES -- 12.1%
200,000 4.875%, 05/31/08 ........................................................... 200,506 201,188
200,000 4.875%, 08/31/08 ........................................................... 199,966 202,875
400,000 3.375%, 12/15/08 ........................................................... 403,939 405,531
300,000 4.250%, 08/15/15 ........................................................... 298,705 326,930
250,000 5.125%, 05/15/16 ........................................................... 255,251 284,883
275,000 3.500%, 02/15/18 ........................................................... 275,430 275,430
--------------- ---------------
1,633,797 1,696,837
--------------- ---------------
TOTAL U.S. GOVERNMENT OBLIGATIONS ............................................. 4,418,212 4,602,607
--------------- ---------------
TOTAL INVESTMENTS -- 89.7% .................................................... $ 12,260,038 12,557,528
===============
OTHER ASSETS AND LIABILITIES (NET) -- 10.3% ..................................................... 1,445,219
---------------
NET ASSETS -- 100.0% ............................................................................ $ 14,002,747
===============
- ----------
(a) Floating rate security. The rate disclosed is that in effect at March 31,
2008.
++ Represents annualized yield at date of purchase.
MTN Medium Term Note
See accompanying notes to financial statements.
13
GAMCO WESTWOOD SMALLCAP EQUITY FUND
SCHEDULE OF INVESTMENTS -- MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
- ------------ --------------- ---------------
COMMON STOCKS -- 99.3%
AEROSPACE -- 6.2%
3,365 Kaman Corp. ................................................................... $ 96,846 $ 95,196
4,500 Moog Inc., Cl. A+ ............................................................. 123,455 189,945
3,800 Teledyne Technologies Inc.+ ................................................... 134,242 178,600
--------------- ---------------
354,543 463,741
--------------- ---------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 2.6%
8,000 Midas Inc.+ ................................................................... 137,568 137,520
9,494 Noble International Ltd. ...................................................... 186,142 59,338
--------------- ---------------
323,710 196,858
--------------- ---------------
BUSINESS SERVICES -- 15.3%
9,219 Deluxe Corp. .................................................................. 284,013 177,097
21,193 Edgewater Technology Inc.+ .................................................... 166,246 111,687
13,281 Federal Signal Corp. .......................................................... 155,684 185,403
8,266 Intermec Inc.+ ................................................................ 202,462 183,422
4,800 Macquarie Infrastructure Co. LLC .............................................. 135,750 139,824
3,500 The Brink's Co. ............................................................... 192,858 235,130
3,400 URS Corp.+ .................................................................... 125,182 111,146
--------------- ---------------
1,262,195 1,143,709
--------------- ---------------
COMPUTER SOFTWARE AND SERVICES -- 7.1%
19,700 Lawson Software Inc.+ ......................................................... 194,567 148,341
4,500 ManTech International Corp., Cl. A+ ........................................... 136,326 204,120
22,318 Tier Technologies Inc., Cl. B+ ................................................ 217,962 177,875
--------------- ---------------
548,855 530,336
--------------- ---------------
CONSUMER PRODUCTS -- 8.8%
6,600 Alberto-Culver Co. ............................................................ 145,388 180,906
14,971 Kimball International Inc., Cl. B ............................................. 199,574 160,489
5,111 Steinway Musical Instruments Inc.+ ............................................ 144,318 145,766
4,300 The Warnaco Group Inc.+ ....................................................... 96,129 169,592
--------------- ---------------
585,409 656,753
--------------- ---------------
DIVERSIFIED INDUSTRIAL -- 14.3%
3,256 Barnes Group Inc. ............................................................. 87,608 74,725
6,910 Columbus McKinnon Corp.+ ...................................................... 176,179 214,072
14,906 Griffon Corp.+ ................................................................ 172,155 128,191
10,000 Hawk Corp., Cl. A+ ............................................................ 138,000 175,200
5,400 Kennametal Inc. ............................................................... 119,709 158,922
38,223 Magnetek Inc.+ ................................................................ 170,687 131,487
3,043 Texas Industries Inc. ......................................................... 229,547 182,915
--------------- ---------------
1,093,885 1,065,512
--------------- ---------------
ELECTRONICS -- 2.8%
8,677 LeCroy Corp.+ ................................................................. 82,480 75,143
5,900 OSI Systems Inc.+ ............................................................. 158,458 135,818
--------------- ---------------
240,938 210,961
--------------- ---------------
ENERGY AND UTILITIES -- 2.3%
4,500 ALLETE Inc. ................................................................... 193,559 173,790
--------------- ---------------
EQUIPMENT AND SUPPLIES -- 5.4%
4,200 Northwest Pipe Co.+ ........................................................... 138,650 178,458
2,426 Powell Industries Inc.+ ....................................................... 96,803 95,512
3,250 Tennant Co. ................................................................... 139,912 129,382
--------------- ---------------
375,365 403,352
--------------- ---------------
MARKET
SHARES COST VALUE
- ------------ --------------- ---------------
FINANCIAL SERVICES -- 6.8%
7,200 Boston Private Financial Holdings Inc. ........................................ $ 187,391 $ 76,248
5,408 Hilb Rogal & Hobbs Co. ........................................................ 238,941 170,190
6,700 Sterling Financial Corp. ...................................................... 218,487 104,587
3,400 Stifel Financial Corp.+ ....................................................... 133,516 152,660
--------------- ---------------
778,335 503,685
--------------- ---------------
FOOD AND BEVERAGE -- 5.9%
19,000 Del Monte Foods Co. ........................................................... 199,893 181,070
5,100 J & J Snack Foods Corp. ....................................................... 118,996 140,097
19,438 Triarc Cos. Inc., Cl. A ....................................................... 270,272 122,459
--------------- ---------------
589,161 443,626
--------------- ---------------
HEALTH CARE -- 9.1%
18,900 Five Star Quality Care Inc.+ .................................................. 196,299 120,015
6,850 K-V Pharmaceutical Co., Cl. A+ ................................................ 192,197 170,976
4,000 SurModics Inc.+ ............................................................... 197,347 167,520
5,000 West Pharmaceutical Services Inc. ............................................. 204,057 221,150
--------------- ---------------
789,900 679,661
--------------- ---------------
HOTELS AND GAMING -- 4.6%
11,200 Marcus Corp. .................................................................. 225,768 215,040
3,000 Orient-Express Hotels Ltd., Cl. A ............................................. 98,091 129,480
--------------- ---------------
323,859 344,520
--------------- ---------------
REAL ESTATE INVESTMENT TRUSTS -- 1.0%
2,061 Deerfield Capital Corp. ....................................................... 2,927 2,906
4,700 Lexington Realty Trust ........................................................ 101,692 67,727
--------------- ---------------
104,619 70,633
--------------- ---------------
SPECIALTY CHEMICALS -- 4.9%
2,699 FMC Corp. ..................................................................... 119,788 149,767
6,975 H.B. Fuller Co. ............................................................... 196,812 142,360
1,006 NewMarket Corp. ............................................................... 49,485 75,903
--------------- ---------------
366,085 368,030
--------------- ---------------
TELECOMMUNICATIONS -- 2.2%
9,900 HickoryTech Corp. ............................................................. 97,372 80,883
10,000 Radyne Corp.+ ................................................................. 99,033 85,200
--------------- ---------------
196,405 166,083
--------------- ---------------
TOTAL COMMON STOCKS ........................................................... 8,126,823 7,421,250
--------------- ---------------
PRINCIPAL
AMOUNT
- ------------
U.S. GOVERNMENT OBLIGATIONS -- 1.8%
$ 132,000 U.S. Treasury Bill,
1.221%++, 04/24/08 ......................................................... 131,897 131,897
--------------- ---------------
TOTAL INVESTMENTS -- 101.1% ................................................... $ 8,258,720 7,553,147
===============
OTHER ASSETS AND LIABILITIES (NET) -- (1.1)% .................................................... (83,452)
---------------
NET ASSETS -- 100.0% ............................................................................ $ 7,469,695
===============
- ----------
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
See accompanying notes to financial statements.
14
GAMCO WESTWOOD INCOME FUND
SCHEDULE OF INVESTMENTS -- MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
- ------------ --------------- ---------------
COMMON STOCKS -- 59.0%
BANKING -- 11.8%
10,000 Bank of America Corp. ......................................................... $ 494,573 $ 379,100
12,000 Citigroup Inc. ................................................................ 520,384 257,040
3,000 HSBC Holdings plc, ADR ........................................................ 274,455 246,900
11,000 U.S. Bancorp .................................................................. 363,413 355,960
3,000 Valley National Bancorp ....................................................... 67,760 57,630
--------------- ---------------
1,720,585 1,296,630
--------------- ---------------
BUSINESS SERVICES -- 5.6%
6,000 Deluxe Corp. .................................................................. 131,449 115,260
9,200 Macquarie Infrastucture Co. LLC ............................................... 333,889 267,996
7,000 Paychex Inc. .................................................................. 307,177 239,820
--------------- ---------------
772,515 623,076
--------------- ---------------
COMPUTER SOFTWARE AND SERVICES -- 1.8%
7,000 Microsoft Corp. ............................................................... 208,870 198,660
--------------- ---------------
DIVERSIFIED INDUSTRIAL -- 2.3%
7,000 General Electric Co. .......................................................... 271,195 259,070
--------------- ---------------
ELECTRONICS -- 1.5%
8,000 Intel Corp. ................................................................... 188,828 169,440
--------------- ---------------
ENERGY AND UTILITIES: INTEGRATED -- 2.2%
1,000 BP plc, ADR ................................................................... 75,428 60,650
4,000 Integrys Energy Group Inc. .................................................... 203,201 186,560
--------------- ---------------
278,629 247,210
--------------- ---------------
ENERGY AND UTILITIES: NATURAL GAS -- 1.8%
8,500 Spectra Energy Corp. .......................................................... 221,225 193,375
--------------- ---------------
ENERGY AND UTILITIES: OIL -- 3.7%
2,000 Chevron Corp. ................................................................. 169,778 170,720
3,000 ConocoPhillips ................................................................ 240,082 228,630
263 Exterran Partners LP .......................................................... 8,889 7,627
--------------- ---------------
418,749 406,977
--------------- ---------------
ENERGY AND UTILITIES: SERVICES -- 2.9%
8,000 Halliburton Co. ............................................................... 284,121 314,640
--------------- ---------------
FINANCIAL SERVICES -- 6.9%
5,000 AllianceBernstein Holding LP .................................................. 388,423 316,900
4,000 Federal National Mortgage Association ......................................... 256,813 105,280
8,000 H&R Block Inc. ................................................................ 176,100 166,080
6,000 Wells Fargo & Co. ............................................................. 193,140 174,600
--------------- ---------------
1,014,476 762,860
--------------- ---------------
FOOD AND BEVERAGE -- 6.3%
7,000 ConAgra Foods Inc. ............................................................ 174,145 167,650
4,761 General Mills Inc. ............................................................ 278,679 285,089
8,000 Kraft Foods Inc., Cl. A ....................................................... 266,270 248,080
--------------- ---------------
719,094 700,819
--------------- ---------------
HEALTH CARE -- 4.4%
15,000 Pfizer Inc. ................................................................... 387,232 313,950
4,000 Wyeth ......................................................................... 201,908 167,040
--------------- ---------------
589,140 480,990
--------------- ---------------
RETAIL -- 1.3%
5,000 The Home Depot Inc. ........................................................... 198,531 139,850
--------------- ---------------
SPECIALTY CHEMICALS -- 2.1%
5,000 E.I. du Pont de Nemours & Co. ................................................. 254,610 233,800
--------------- ---------------
TELECOMMUNICATIONS -- 4.4%
5,000 AT&T Inc. ..................................................................... 180,660 191,500
8,000 Verizon Communications Inc. ................................................... 334,671 291,600
--------------- ---------------
515,331 483,100
--------------- ---------------
TOTAL COMMON STOCKS ........................................................... 7,655,899 6,510,497
--------------- ---------------
PREFERRED STOCKS -- 10.9%
BROADCASTING -- 2.0%
9,000 CBS Corp., 7.250% Pfd. ........................................................ 227,726 218,070
--------------- ---------------
MARKET
SHARES COST VALUE
- ------------ --------------- ---------------
FINANCIAL SERVICES -- 8.9%
12,000 Bank One Capital Trust VI, 7.200% Pfd. ........................................ $ 305,738 $ 296,760
6,000 Federal National Mortgage Association, 7.000% Pfd., Ser. O (a) ................ 332,225 271,875
11,300 General Electric Capital Corp., 5.875% Pfd. ................................... 278,435 276,511
5,900 Wells Fargo Capital Trust IV, 7.000% Pfd. ..................................... 150,504 142,013
--------------- ---------------
1,066,902 987,159
--------------- ---------------
TOTAL PREFERRED STOCKS ........................................................ 1,294,628 1,205,229
--------------- ---------------
CONVERTIBLE PREFERRED STOCKS -- 4.4%
ENERGY AND UTILITIES: INTEGRATED -- 3.0%
5,100 Entergy Corp., 7.625% Cv. Pfd. ................................................ 270,415 332,826
--------------- ---------------
FINANCIAL SERVICES -- 1.4%
500 Alleghany Corp., 5.750% Cv. Pfd. .............................................. 139,920 157,437
--------------- ---------------
TOTAL CONVERTIBLE PREFERRED STOCKS ............................................ 410,335 490,263
--------------- ---------------
PRINCIPAL
AMOUNT
- ------------
CORPORATE BONDS -- 6.1%
ENERGY AND UTILITIES: OIL -- 2.7%
$ 300,000 Anadarko Petroleum Corp., 3.200%, 09/15/09 (a) ................................ 300,284 294,426
--------------- ---------------
FINANCIAL SERVICES -- 2.2%
250,000 American Express Credit Corp., MTN, 2.978%, 06/16/11 (a) ...................... 250,000 239,740
--------------- ---------------
METALS AND MINING -- 1.2%
140,000 Freeport-McMoRan Copper & Gold Inc., 8.394%, 04/01/15 (a) ..................... 142,886 137,900
--------------- ---------------
TOTAL CORPORATE BONDS ......................................................... 693,170 672,066
--------------- ---------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 12.6%
FEDERAL HOME LOAN BANK -- 8.0%
325,000 5.125%, 06/18/08 .............................................................. 325,058 326,871
550,000 4.625%, 11/21/08 .............................................................. 548,346 558,092
--------------- ---------------
873,404 884,963
--------------- ---------------
FEDERAL HOME LOAN MORTGAGE CORP. -- 4.6%
500,000 3.625%, 09/15/08 .............................................................. 496,371 502,880
--------------- ---------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS ...................................... 1,369,775 1,387,843
--------------- ---------------
U.S. GOVERNMENT OBLIGATIONS -- 8.0%
893,000 U.S. Treasury Bills, 1.258% to 2.789%++, 04/17/08 to 09/18/08 ................. 889,174 888,631
--------------- ---------------
TOTAL U.S. GOVERNMENT OBLIGATIONS ............................................. 889,174 888,631
--------------- ---------------
TOTAL INVESTMENTS -- 101.0% ................................................... $ 12,312,981 11,154,529
===============
OTHER ASSETS AND LIABILITIES (NET) -- (1.0)% .................................................... (111,533)
---------------
NET ASSETS -- 100.0% ............................................................................ $ 11,042,996
===============
- ----------
(a) Floating rate security. The rate disclosed is that in effect at March 31,
2008.
++ Represents annualized yield at date of purchase.
ADR American Depositary Receipt
MTN Medium Term Note
See accompanying notes to financial statements.
15
GAMCO WESTWOOD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
MIGHTY EQUITY BALANCED INTERMEDIATE SMALLCAP INCOME
MITES(SM) FUND FUND FUND BOND FUND EQUITY FUND FUND
-------------- ------------ ------------ ------------ ----------- ------------
ASSETS:
Investments, at value (cost $53,717,516,
$166,560,221, $135,358,946, $12,260,038,
$8,258,720, and $12,312,981,
respectively) ........................... $ 59,167,228 $181,480,104 $144,566,319 $ 12,557,528 $ 7,553,147 $ 11,154,529
Cash ...................................... 31,868 6,094,415 6,365,996 1,726,692 892 34
Receivable for Fund shares sold ........... 284,887 235,724 354,277 2,089 3,647 7,083
Receivable for investments sold ........... 193,050 -- -- -- -- --
Receivable from Adviser ................... -- -- -- 1,870 1,051 --
Dividends and interest receivable ......... 65,887 333,555 777,456 116,606 6,673 39,610
Prepaid expenses .......................... 37,552 62,002 32,762 24,846 26,159 27,947
Other assets .............................. -- -- -- 2,748 -- --
-------------- ------------ ------------ ------------ ----------- ------------
TOTAL ASSETS .............................. 59,780,472 188,205,800 152,096,810 14,432,379 7,591,569 11,229,203
-------------- ------------ ------------ ------------ ----------- ------------
LIABILITIES:
Payable for investments purchased ......... 284,349 -- 504,094 402,643 96,846 163,360
Payable for Fund shares redeemed .......... 69,043 146,088 38,148 673 7,017 5,000
Distributions payable ..................... -- 156 -- 6,570 -- --
Payable for investment advisory fees ...... 48,848 157,256 94,862 -- -- 1,329
Payable for distribution fees ............. 15,483 40,893 33,569 4,861 1,926 2,580
Payable for accounting fees ............... 3,750 3,750 3,750 -- -- --
Payable for legal and audit fees .......... 12,659 71,187 58,014 6,591 10,294 8,099
Payable for shareholder communications
expenses ................................ 14,611 29,183 20,162 6,705 2,733 2,864
Payable for shareholder services fees ..... -- 28,382 11,880 1,555 2,363 2,294
Other accrued expenses .................... 9,036 766 472 34 695 681
-------------- ------------ ------------ ------------ ----------- ------------
TOTAL LIABILITIES ......................... 457,779 477,661 764,951 429,632 121,874 186,207
-------------- ------------ ------------ ------------ ----------- ------------
NET ASSETS ................................ $ 59,322,693 $187,728,139 $151,331,859 $ 14,002,747 $ 7,469,695 $ 11,042,996
============== ============ ============ ============ =========== ============
NET ASSETS CONSIST OF:
Paid-in capital, at $0.001 par value ...... $ 53,212,745 $171,219,315 $140,954,058 $ 13,714,435 $14,561,676 $ 12,390,837
Accumulated net investment income (loss) .. 16,045 481,856 18,029 (465) (6,703) 62,597
Accumulated net realized gain (loss) on
investments and foreign currency
transactions ............................ 643,119 1,107,085 1,152,399 (8,723) (6,379,705) (251,986)
Net unrealized appreciation/(depreciation)
on investments .......................... 5,449,712 14,919,883 9,207,373 297,490 (705,573) (1,158,452)
Net unrealized appreciation on foreign
currency translations ................... 1,072 -- -- 10 -- --
-------------- ------------ ------------ ------------ ----------- ------------
NET ASSETS ................................ $ 59,322,693 $187,728,139 $151,331,859 $ 14,002,747 $ 7,469,695 $ 11,042,996
============== ============ ============ ============ =========== ============
SHARES OF BENEFICIAL INTEREST:
CLASS AAA:
Net assets ................................ $ 50,381,380 $180,320,970 $144,129,160 $ 10,713,214 $ 6,332,229 $ 10,577,217
============== ============ ============ ============ =========== ============
Shares of beneficial interest outstanding;
unlimited number of shares authorized ... 3,686,672 17,812,568 12,846,186 960,989 503,404 1,209,658
============== ============ ============ ============ =========== ============
NET ASSET VALUE, offering, and redemption
price per share ......................... $ 13.67 $ 10.12 $ 11.22 $ 11.15 $ 12.58 $ 8.74
============== ============ ============ ============ =========== ============
CLASS A:
Net assets ................................ $ 4,933,973 $ 6,782,447 $ 5,648,460 $ 117,350 $ 751,503 $ 59,608
============== ============ ============ ============ =========== ============
Shares of beneficial interest outstanding;
unlimited number of shares authorized ... 364,542 673,693 501,332 10,526 60,202 6,592
============== ============ ============ ============ =========== ============
NET ASSET VALUE and redemption price per
share ................................... $ 13.53 $ 10.07 $ 11.27 $ 11.15 $ 12.48 $ 9.04
============== ============ ============ ============ =========== ============
Maximum offering price per share (NAV/.96,
based on maximum sales charge of 4.00% of
the offering price) ..................... $ 14.09 $ 10.49 $ 11.74 $ 11.61 $ 13.00 $ 9.42
============== ============ ============ ============ =========== ============
CLASS B:
Net assets ................................ $ 203,057 $ 20,321 $ 134,802 $ 49,210 $ 6,032 $ 96.2
============== ============ ============ ============ =========== ============
Shares of beneficial interest outstanding;
unlimited number of shares authorized ... 15,707 2,056 11,867 4,415 499.8 10.4
============== ============ ============ ============ =========== ============
NET ASSET VALUE and offering price per
share (a) ............................... $ 12.93 $ 9.88 $ 11.36 $ 11.15 $ 12.07 $ 9.25
============== ============ ============ ============ =========== ============
CLASS C:
Net assets ................................ $ 3,526,554 $ 348,202 $ 1,231,434 $ 3,074,705 $ 225,378 $ 335,668
============== ============ ============ ============ =========== ============
Shares of beneficial interest outstanding;
unlimited number of shares authorized ... 274,712 35,237 108,258 289,780 18,842 34,791
============== ============ ============ ============ =========== ============
NET ASSET VALUE and offering price per
share (a) ............................... $ 12.84 $ 9.88 $ 11.37 $ 10.61 $ 11.96 $ 9.65
============== ============ ============ ============ =========== ============
CLASS I:
Net assets ................................ $ 277,729 $ 256,199 $ 188,003 $ 48,268 $ 154,553 $ 70,407
============== ============ ============ ============ =========== ============
Shares of beneficial interest outstanding;
unlimited number of shares authorized ... 20,303 25,280 16,763 4,328 12,283 8,055
============== ============ ============ ============ =========== ============
NET ASSET VALUE, offering, and redemption
price per share ......................... $ 13.68 $ 10.13 $ 11.22 $ 11.15 $ 12.58 $ 8.74
============== ============ ============ ============ =========== ============
- ----------
(a) Redemption price varies based on the length of time held.
See accompanying notes to financial statements.
16
GAMCO WESTWOOD FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
MIGHTY EQUITY BALANCED INTERMEDIATE SMALLCAP INCOME
MITES(SM) FUND FUND FUND BOND FUND EQUITY FUND FUND
-------------- ------------ ------------ ------------ ----------- ------------
INVESTMENT INCOME:
Dividends (net of foreign taxes of $427,
$0, $0, $0, $0, and $54, respectively) .. $ 286,844 $ 2,149,504 $ 1,067,237 -- $ 55,859 $ 225,280
Interest .................................. 209,852 25 1,351,710 $ 236,802 8,771 81,547
-------------- ------------ ------------ ------------ ----------- ------------
TOTAL INVESTMENT INCOME ................... 496,696 2,149,529 2,418,947 236,802 64,630 306,827
-------------- ------------ ------------ ------------ ----------- ------------
EXPENSES:
Investment advisory fees .................. 278,659 945,347 576,785 34,047 45,412 64,922
Distribution fees - Class AAA ............. 60,387 229,303 183,830 12,403 9,997 15,644
Distribution fees - Class A ............... 10,521 12,940 13,661 150 1,913 195
Distribution fees - Class B ............... 1,870 108 909 381 33 4
Distribution fees - Class C ............... 13,650 1,630 5,112 6,224 1,256 1,807
Accounting fees ........................... 22,500 22,500 22,500 -- -- --
Custodian fees ............................ 13,659 14,101 12,887 3,996 4,894 9,138
Interest expense .......................... 171 -- -- -- -- --
Legal and audit fees ...................... 20,010 46,645 40,432 13,497 18,375 13,302
Registration expenses ..................... 14,859 20,381 15,498 13,260 12,128 16,337
Shareholder communications expenses ....... 15,095 31,230 23,015 4,169 3,740 5,169
Shareholder services fees ................. 18,196 70,528 48,376 5,425 6,708 7,715
Trustees' fees ............................ 1,431 5,270 4,296 266 268 487
Miscellaneous expenses .................... 9,224 10,310 9,215 4,226 3,992 3,762
-------------- ------------ ------------ ------------ ----------- ------------
TOTAL EXPENSES ............................ 480,232 1,410,293 956,516 98,044 108,716 138,482
-------------- ------------ ------------ ------------ ----------- ------------
LESS:
Expense reimbursements (see Note 3) ..... -- -- -- (32,432) (34,073) (30,627)
Custodian fee credits ................... (336) (13,859) (12,523) (3,895) (4,679) (9,053)
-------------- ------------ ------------ ------------ ----------- ------------
TOTAL REIMBURSEMENTS AND CREDITS .......... (336) (13,859) (12,523) (36,327) (38,752) (39,680)
-------------- ------------ ------------ ------------ ----------- ------------
NET EXPENSES .............................. 479,896 1,396,434 943,993 61,717 69,964 98,802
-------------- ------------ ------------ ------------ ----------- ------------
NET INVESTMENT INCOME (LOSS) .............. 16,800 753,095 1,474,954 175,085 (5,334) 208,025
-------------- ------------ ------------ ------------ ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain (loss) on investments ... 1,089,370 1,655,434 1,517,340 30,518 468,423 (192,723)
Net realized gain on foreign currency
transactions ............................ 233 -- -- -- -- --
-------------- ------------ ------------ ------------ ----------- ------------
Net realized gain (loss) on investments and
foreign currency transactions ........... 1,089,603 1,655,434 1,517,340 30,518 468,423 (192,723)
-------------- ------------ ------------ ------------ ----------- ------------
Net change in unrealized
appreciation/depreciation on
investments ............................. (8,005,360) (17,376,582) (7,110,828) 302,648 (2,102,320) (1,405,525)
Net change in unrealized
appreciation/depreciation on foreign
currency translations ................... 348 -- -- (1) -- --
-------------- ------------ ------------ ------------ ----------- ------------
Net change in unrealized
appreciation/depreciation on investments
and foreign currency translations ....... (8,005,012) (17,376,582) (7,110,828) 302,647 (2,102,320) (1,405,525)
-------------- ------------ ------------ ------------ ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY ........ (6,915,409) (15,721,148) (5,593,488) 333,165 (1,633,897) (1,598,248)
-------------- ------------ ------------ ------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............... $ (6,898,609) $(14,968,053) $ (4,118,534) $ 508,250 $(1,639,231) $ (1,390,223)
============== ============ ============ ============ =========== ============
See accompanying notes to financial statements.
17
GAMCO WESTWOOD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
MIGHTY MITES(SM) FUND EQUITY FUND
------------------------------ ------------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2008 SEPTEMBER 30, MARCH 31, 2008 SEPTEMBER 30,
(UNAUDITED) 2007 (UNAUDITED) 2007
-------------- ------------- -------------- -------------
OPERATIONS:
Net investment income ........................................ $ 16,800 $ 199,835 $ 753,095 $ 679,596
Net realized gain on investments and foreign currency
transactions ............................................... 1,089,603 5,198,020 1,655,434 25,589,048
Net change in unrealized appreciation/depreciation on
investments and foreign currency translations .............. (8,005,012) 2,972,257 (17,376,582) 7,079,829
-------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ................................................. (6,898,609) 8,370,112 (14,968,053) 33,348,473
-------------- ------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class AAA .................................................. (173,195) -- (788,517) (737,096)
Class A .................................................... (20,881) -- (14,656) (4,914)
Class C .................................................... (2,086) -- -- --
-------------- ------------- -------------- -------------
(196,162) -- (803,173) (742,010)
-------------- ------------- -------------- -------------
Net realized gain on investments
Class AAA .................................................. (4,398,562) (5,192,410) (23,536,496) (28,093,088)
Class A .................................................... (427,184) (567) (594,524) (451,192)
Class B .................................................... (37,625) (72,032) (2,963) (5,227)
Class C .................................................... (219,499) (45,681) (43,046) (52,506)
-------------- ------------- -------------- -------------
(5,082,870) (5,310,690) (24,177,029) (28,602,013)
-------------- ------------- -------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .......................... (5,279,032) (5,310,690) (24,980,202) (29,344,023)
-------------- ------------- -------------- -------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares issued
Class AAA .................................................. 16,643,919 13,160,409 32,385,970 38,533,796
Class A .................................................... 4,932,659 2,241,765 4,394,842 564,785
Class C .................................................... 2,297,279 1,845,146 116,878 18,205
Class I .................................................... 286,131 -- 277,223 --
-------------- ------------- -------------- -------------
24,159,988 17,247,320 37,174,913 39,116,786
-------------- ------------- -------------- -------------
Proceeds from reinvestment of distributions
Class AAA .................................................. 4,129,014 4,658,234 23,304,369 27,658,190
Class A .................................................... 429,306 545 604,502 451,854
Class B .................................................... 37,512 71,845 1,929 3,906
Class C .................................................... 193,520 45,659 42,305 51,834
-------------- ------------- -------------- -------------
4,789,352 4,776,283 23,953,105 28,165,784
-------------- ------------- -------------- -------------
Cost of shares redeemed
Class AAA .................................................. (8,111,167) (9,412,055) (26,420,018) (49,588,854)
Class A .................................................... (1,690,027) (11,391) (741,276) (363,055)
Class B .................................................... (167,859) (131,824) -- (12,586)
Class C .................................................... (439,266) (176,399) (60,282) (71,724)
Class I .................................................... (2,197) -- (12,864) --
-------------- ------------- -------------- -------------
(10,410,516) (9,731,669) (27,234,440) (50,036,219)
-------------- ------------- -------------- -------------
NET INCREASE IN NET ASSETS FROM SHARES OF BENEFICIAL
INTEREST TRANSACTIONS ...................................... 18,538,824 12,291,934 33,893,578 17,246,351
-------------- ------------- -------------- -------------
REDEMPTION FEES .............................................. 625 131 -- --
-------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS ........................ 6,361,808 15,351,487 (6,054,677) 21,250,801
NET ASSETS:
Beginning of period .......................................... 52,960,885 37,609,398 193,782,816 172,532,015
-------------- ------------- -------------- -------------
End of period ................................................ $ 59,322,693 $ 52,960,885 $ 187,728,139 $ 193,782,816
============== ============= ============== =============
Undistributed net investment income .......................... $ 16,045 $ 195,407 $ 481,856 $ 531,934
============== ============= ============== =============
See accompanying notes to financial statements.
18
GAMCO WESTWOOD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
BALANCED FUND INTERMEDIATE BOND FUND
------------------------------ ------------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2008 SEPTEMBER 30, MARCH 31, 2008 SEPTEMBER 30,
(UNAUDITED) 2007 (UNAUDITED) 2007
-------------- ------------- -------------- -------------
OPERATIONS:
Net investment income ........................................ $ 1,474,954 $ 2,722,688 $ 175,085 $ 350,907
Net realized gain (loss) on investments ...................... 1,517,340 11,476,050 30,518 (2,613)
Net change in unrealized appreciation/depreciation on
investments ................................................ (7,110,828) 5,542,110 302,647 2,748
-------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ................................................. (4,118,534) 19,740,848 508,250 351,042
-------------- ------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class AAA .................................................. (1,472,408) (2,562,323) (158,642) (350,708)
Class A .................................................... (49,410) (81,823) (1,310) (2,513)
Class B .................................................... (930) (1,846) (968) (4,748)
Class C .................................................... (6,763) (9,350) (13,862) (73)
Class I .................................................... (1,050) -- (303) --
-------------- ------------- -------------- -------------
(1,530,561) (2,655,342) (175,085) (358,042)
-------------- ------------- -------------- -------------
Net realized gain on investments
Class AAA .................................................. (11,109,529) (18,214,060) -- --
Class A .................................................... (405,420) (697,805) -- --
Class B .................................................... (14,126) (22,753) -- --
Class C .................................................... (71,581) (127,276) -- --
-------------- ------------- -------------- -------------
(11,600,656) (19,061,894) -- --
-------------- ------------- -------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .......................... (13,131,217) (21,717,236) (175,085) (358,042)
-------------- ------------- -------------- -------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares issued
Class AAA .................................................. 14,448,282 27,827,449 1,743,684 1,292,471
Class A .................................................... 676,653 376,204 70,485 9,000
Class B .................................................... -- 43,323 -- --
Class C .................................................... 380,625 174,540 3,175,340 89,952
Class I .................................................... 190,164 -- 47,747 --
-------------- ------------- -------------- -------------
15,695,724 28,421,516 5,037,256 1,391,423
-------------- ------------- -------------- -------------
Proceeds from reinvestment of distributions
Class AAA .................................................. 12,175,218 19,991,375 116,868 272,125
Class A .................................................... 402,911 685,203 1,047 2,478
Class B .................................................... 10,370 15,985 201 880
Class C .................................................... 63,555 108,766 11,584 17
Class I .................................................... 1,050 -- 302 --
-------------- ------------- -------------- -------------
12,653,104 20,801,329 130,002 275,500
-------------- ------------- -------------- -------------
Cost of shares redeemed
Class AAA .................................................. (18,170,812) (38,789,648) (867,109) (2,061,718)
Class A .................................................... (344,223) (1,054,294) (25,006) (34,365)
Class B .................................................... (47,936) (3,077) (46,497) (190,022)
Class C .................................................... (104,762) (209,433) (148,939) (75,258)
-------------- ------------- -------------- -------------
(18,667,733) (40,056,452) (1,087,551) (2,361,363)
-------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM SHARES OF
BENEFICIAL INTEREST TRANSACTIONS ........................... 9,681,095 9,166,393 4,079,707 (694,440)
-------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS ........................ (7,568,656) 7,190,005 4,412,872 (701,440)
NET ASSETS:
Beginning of period .......................................... 158,900,515 151,710,510 9,589,875 10,291,315
-------------- ------------- -------------- -------------
End of period ................................................ $ 151,331,859 $ 158,900,515 $ 14,002,747 $ 9,589,875
============== ============= ============== =============
Undistributed net investment income .......................... $ 18,029 $ 73,636 -- --
============== ============= ============== =============
See accompanying notes to financial statements.
19
GAMCO WESTWOOD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
SMALLCAP EQUITY FUND INCOME FUND
------------------------------ ------------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2008 SEPTEMBER 30, MARCH 31, 2008 SEPTEMBER 30,
(UNAUDITED) 2007 (UNAUDITED) 2007
-------------- ------------- -------------- -------------
OPERATIONS:
Net investment income (loss) ................................. $ (5,334) $ (32,083) $ 208,025 $ 672,609
Net realized gain (loss) on investments ...................... 468,423 1,433,147 (192,723) 304,989
Net change in unrealized appreciation/depreciation on
investments ................................................ (2,102,320) 463,604 (1,405,525) 1,934
-------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ................................................. (1,639,231) 1,864,668 (1,390,223) 979,532
-------------- ------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class AAA .................................................. -- (105,452) (290,333) (635,769)
Class A .................................................... -- (4,971) (1,796) (3,135)
Class B .................................................... -- (18) (1) (78)
Class C .................................................... -- (1,872) (6,788) (4,873)
Class I .................................................... -- -- (1,274) --
-------------- ------------- -------------- -------------
-- (112,313) (300,192) (643,855)
-------------- ------------- -------------- -------------
Net realized gains on investments
Class AAA .................................................. -- -- (271,625) (2,261,447)
Class A .................................................... -- -- (2,299) (20,488)
Class B .................................................... -- -- (2) (414)
Class C .................................................... -- -- (7,478) (3,062)
-------------- ------------- -------------- -------------
-- -- (281,404) (2,285,411)
-------------- ------------- -------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .......................... -- (112,313) (581,596) (2,929,266)
-------------- ------------- -------------- -------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares issued
Class AAA .................................................. 1,373,346 3,612,664 1,940,645 13,573,132
Class A .................................................... 479,230 382,618 41,332 81,406
Class B .................................................... -- -- 1 --
Class C .................................................... 18,807 37,487 -- 386,845
Class I .................................................... 164,255 -- 72,427 --
-------------- ------------- -------------- -------------
2,035,638 4,032,769 2,054,405 14,041,383
-------------- ------------- -------------- -------------
Proceeds from reinvestment of distributions
Class AAA .................................................. -- 77,961 534,294 2,752,191
Class A .................................................... -- 4,969 3,861 22,075
Class B .................................................... -- 18 -- 463
Class C .................................................... -- 1,871 13,547 7,879
Class I .................................................... -- -- 1,274 --
-------------- ------------- -------------- -------------
-- 84,819 552,976 2,782,608
-------------- ------------- -------------- -------------
Cost of shares redeemed
Class AAA .................................................. (2,259,142) (5,355,936) (7,867,397) (8,584,925)
Class A .................................................... (370,803) (95,381) (53,195) (104,769)
Class B .................................................... -- (70) (2,007) --
Class C .................................................... (46,399) (27,549) (20,430) (3,037)
Class I .................................................... (5,659) -- -- --
-------------- ------------- -------------- -------------
(2,682,003) (5,478,936) (7,943,029) (8,692,731)
-------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM SHARES OF
BENEFICIAL INTEREST TRANSACTIONS ........................... (646,365) (1,361,348) (5,335,648) 8,131,260
-------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS ........................ (2,285,596) 391,007 (7,307,467) 6,181,526
NET ASSETS:
Beginning of period .......................................... 9,755,291 9,364,284 18,350,463 12,168,937
-------------- ------------- -------------- -------------
End of period ................................................ $ 7,469,695 $ 9,755,291 $ 11,042,996 $ 18,350,463
============== ============= ============== =============
Undistributed net investment income .......................... -- -- $ 62,597 $ 154,764
============== ============= ============== =============
See accompanying notes to financial statements.
20
GAMCO WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
------------------------------------------ ----------------------------------------
NET
NET ASSET NET REALIZED AND TOTAL NET
VALUE, INVESTMENT UNREALIZED FROM NET REALIZED
PERIOD ENDED BEGINNING INCOME GAIN (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL REDEMPTION
SEPTEMBER 30 OF PERIOD (LOSS)(a)(b) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS FEES(a)
- ------------ --------- ------------ -------------- ------------ ---------- ----------- ------------- ----------
MIGHTY MITES(SM) FUND
CLASS AAA
2008(d) $ 17.05 $ 0.01 $ (1.86) $ (1.85) $ (0.06) $ (1.47) $ (1.53) $ 0.00(e)
2007 16.01 0.08 3.42 3.50 -- (2.46) (2.46) 0.00(e)
2006 16.73 (0.04) 1.34 1.30 -- (2.02) (2.02) --
2005 15.07 (0.02) 2.97 2.95 -- (1.29) (1.29) 0.00(e)
2004 13.42 (0.03) 1.84 1.81 -- (0.16) (0.16) 0.00(e)
2003 11.29 (0.03) 2.25 2.22 (0.04) (0.05) (0.09) --
CLASS A
2008(d) $ 16.94 $ (0.01) $ (1.86) $ (1.87) $ (0.07) $ (1.47) $ (1.54) $ 0.00(e)
2007 15.94 0.36 3.10 3.46 -- (2.46) (2.46) 0.00(e)
2006 16.70 (0.10) 1.36 1.26 -- (2.02) (2.02) --
2005 15.08 (0.06) 2.97 2.91 -- (1.29) (1.29) 0.00(e)
2004 13.46 (0.06) 1.84 1.78 -- (0.16) (0.16) 0.00(e)
2003 11.36 (0.05) 2.26 2.21 (0.06) (0.05) (0.11) --
CLASS B
2008(d) $ 16.21 $ (0.04) $ (1.77) $ (1.81) -- $ (1.47) $ (1.47) $ 0.00(e)
2007 15.43 (0.06) 3.30 3.24 -- (2.46) (2.46) 0.00(e)
2006 16.31 (0.15) 1.29 1.14 -- (2.02) (2.02) --
2005 14.82 (0.14) 2.92 2.78 -- (1.29) (1.29) 0.00(e)
2004 13.30 (0.14) 1.82 1.68 -- (0.16) (0.16) 0.00(e)
2003 11.24 (0.11) 2.22 2.11 -- (0.05) (0.05) --
CLASS C
2008(d) $ 16.13 $ (0.05) $ (1.76) $ (1.81) $ (0.01) $ (1.47) $ (1.48) $ 0.00(e)
2007 15.35 0.10 3.14 3.24 -- (2.46) (2.46) 0.00(e)
2006 16.24 (0.15) 1.28 1.13 -- (2.02) (2.02) --
2005 14.77 (0.14) 2.90 2.76 -- (1.29) (1.29) 0.00(e)
2004 13.25 0.02 1.66 1.68 -- (0.16) (0.16) 0.00(e)
2003 11.19 (0.12) 2.23 2.11 -- (0.05) (0.05) --
CLASS I
2008(h) $ 13.96 $ 0.02 $ (0.30) $ (0.28) -- -- -- $ 0.00(e)
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------
OPERATING
EXPENSES
OPERATING NET OF OPERATING
NET NET EXPENSES WAIVERS/ EXPENSES
ASSET ASSETS, NET NET OF REIMBURSE- BEFORE
VALUE, END OF INVESTMENT WAIVERS/ MENTS/ WAIVERS/ PORTFOLIO
PERIOD ENDED END OF TOTAL PERIOD INCOME REIMBURSE- CUSTODIAN REIMBURSE- TURNOVER
SEPTEMBER 30 PERIOD RETURN+ (IN 000'S) (LOSS)(b) MENTS FEE CREDITS MENTS(c) RATE++
- ------------ --------- ------- -------------- ------------ ---------- ----------- ------------- ----------
MIGHTY MITES(SM) FUND
CLASS AAA
2008(d) $ 13.67 (11.5)% $ 50,381 0.12%(f) 1.66%(f) 1.66%(f) 1.66%(f)(g) 6%
2007 17.05 23.9 48,252 0.48 1.64 1.64 1.64 21
2006 16.01 9.0 36,843 (0.28) 1.61 1.61 1.61(g) 4
2005 16.73 20.4 46,497 (0.13) 1.50 1.50 1.74 9
2004 15.07 13.6 50,805 (0.20) 1.50 1.50 1.66 36
2003 13.42 19.8 51,138 (0.21) 1.50 1.50 1.66 14
CLASS A
2008(d) $ 13.53 (11.7)% $ 4,934 (0.14)%(f) 1.91%(f) 1.91%(f) 1.91%(f)(g) 6%
2007 16.94 23.8 2,246 2.13 1.89 1.89 1.89 21
2006 15.94 8.7 3 (0.63) 1.86 1.86 1.86(g) 4
2005 16.70 20.1 41 (0.41) 1.75 1.75 2.00 9
2004 15.08 13.3 39 (0.42) 1.75 1.75 1.91 36
2003 13.46 19.7 33 (0.46) 1.75 1.75 1.91 14
CLASS B
2008(d) $ 12.93 (11.9)% $ 203 (0.61)%(f) 2.41%(f) 2.41%(f) 2.41%(f)(g) 6%
2007 16.21 23.0 422 (0.40) 2.39 2.39 2.39 21
2006 15.43 8.1 452 (1.00) 2.36 2.36 2.36(g) 4
2005 16.31 19.6 433 (0.89) 2.25 2.25 2.49 9
2004 14.82 12.7 400 (0.95) 2.25 2.25 2.41 36
2003 13.30 18.9 517 (0.96) 2.25 2.25 2.41 14
CLASS C
2008(d) $ 12.84 (11.9)% $ 3,527 (0.65)%(f) 2.41%(f) 2.41%(f) 2.41%(f)(g) 6%
2007 16.13 23.2 2,041 0.65 2.39 2.39 2.39 21
2006 15.35 8.1 311 (1.01) 2.36 2.36 2.36(g) 4
2005 16.24 19.5 327 (0.91) 2.25 2.25 2.49 9
2004 14.77 12.7 308 (0.89) 2.25 2.25 2.41 36
2003 13.25 19.0 99 (0.96) 2.25 2.25 2.41 14
CLASS I
2008(h) $ 13.68 (11.5)% $ 278 0.56%(f) 1.42%(f) 1.42%(f) 1.42%(f)(g) 6%
- ----------
+ 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.
++ Effective in 2008, a change in accounting policy was adopted with regard
to the calculation of the portfolio turnover rate. Had this policy been
adopted retroactively, the portfolio turnover rate for the fiscal years
ended September 30, 2007, 2004, and 2003 would have been 23%, 39%, and
23%, respectively. The portfolio turnover rate for the fiscal years ended
2006 and 2005 would have been as shown.
(a) Per share data is calculated using the average shares outstanding method.
(b) Due to capital share activity throughout the periods, net investment
income per share and the ratio to average net assets are not necessarily
correlated among the different classes of shares.
(c) Prior to the period beginning October 1, 2005, fees and expenses were
voluntarily reduced and/or reimbursed. If such fee reductions and/or
reimbursements had not occurred, the ratio would have been as shown.
(d) For the six months ended March 31, 2008, unaudited.
(e) Amount represents less than $0.005 per share.
(f) Annualized.
(g) The Fund incurred interest expense during the fiscal year ended September
If interest expense had not been incurred, the ratios of operating
expenses to average net assets 30, 2006. would have been 1.57% (Class
AAA), 1.82% (Class A), and 2.32% (Class B and Class C), respectively. For
the six months ended March 31, 2008 and the fiscal year ended September
30, 2007, interest expense was minimal.
(h) From the commencement of offering Class I Shares on January 11, 2008
through March 31, 2008.
See accompanying notes to financial statements.
21
GAMCO WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
----------------------------------------- -----------------------------------------
NET
REALIZED
NET ASSET NET AND TOTAL
VALUE, INVESTMENT UNREALIZED FROM NET NET REALIZED
PERIOD ENDED BEGINNING INCOME GAIN (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL REDEMPTION
SEPTEMBER 30 OF PERIOD (LOSS)(a) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS FEES(a)
- ------------ --------- ----------- -------------- ---------- ---------- ------------ ------------- ------------
EQUITY FUND
CLASS AAA
2008(b) $ 12.63 $ 0.04 $ (0.92) $ (0.88) $ (0.05) $ (1.58) $ (1.63) --
2007 12.51 0.04 2.15 2.19 (0.05) (2.02) (2.07) --
2006 11.08 0.06 1.42 1.48 (0.05) -- (0.05) --
2005 9.32 0.07 1.79 1.86 (0.10) -- (0.10) $ (0.00)(d)
2004 7.99 0.08 1.36 1.44 (0.11) -- (0.11) 0.00(d)
2003 7.02 0.09 0.96 1.05 (0.08) -- (0.08) --
CLASS A
2008(b) $ 12.57 $ 0.03 $ (0.91) $ (0.88) $ (0.04) $ (1.58) $ (1.62) --
2007 12.45 0.01 2.15 2.16 (0.02) (2.02) (2.04) --
2006 11.05 0.03 1.41 1.44 (0.04) -- (0.04) --
2005 9.28 0.06 1.75 1.81 (0.04) -- (0.04) $ (0.00)(d)
2004 7.97 0.05 1.35 1.40 (0.09) -- (0.09) 0.00(d)
2003 6.99 0.07 0.97 1.04 (0.06) -- (0.06) --
CLASS B
2008(b) $ 12.36 $ 0.00(d) $ (0.90) $ (0.90) -- $ (1.58) $ (1.58) --
2007 12.31 (0.05) 2.12 2.07 -- (2.02) (2.02) --
2006 10.96 (0.02) 1.40 1.38 $ (0.03) -- (0.03) --
2005 9.21 (0.00)(d) 1.75 1.75 -- -- -- $ (0.00)(d)
2004 7.92 0.02 1.34 1.36 (0.07) -- (0.07) 0.00(d)
2003 6.97 0.04 0.95 0.99 (0.04) -- (0.04) --
CLASS C
2008(b) $ 12.36 $ 0.00(d) $ (0.90) $ (0.90) -- $ (1.58) $ (1.58) --
2007 12.31 (0.05) 2.12 2.07 -- (2.02) (2.02) --
2006 10.97 (0.03) 1.40 1.37 $ (0.03) -- (0.03) --
2005 9.24 (0.01) 1.77 1.76 (0.03) -- (0.03) $ (0.00)(d)
2004 7.89 0.01 1.34 1.35 -- -- -- 0.00(d)
2003 6.98 0.04 0.96 1.00 (0.09) -- (0.09) --
CLASS I
2008(e) $ 10.35 $ 0.02 $ (0.24) $ (0.22) -- -- -- --
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-----------------------------------------------------------------
OPERATING
NET NET ASSETS, EXPENSES
ASSET VALUE, END OF NET NET OF PORTFOLIO
PERIOD ENDED END OF TOTAL PERIOD INVESTMENT OPERATING CUSTODIAN TURNOVER
SEPTEMBER 30 PERIOD RETURN+ (IN 000'S) INCOME (LOSS) EXPENSES FEE CREDITS RATE++
- ------------ ------------ ------- ----------- ------------- --------- ----------- ---------
EQUITY FUND
CLASS AAA
2008(b) $ 10.12 (7.7)% $ 180,321 0.80%(c) 1.48%(c) 1.47%(c) 20%
2007 12.63 19.7 189,913 0.37 1.52 1.47 58
2006 12.51 13.4 169,404 0.55 1.54 1.50 73
2005 11.08 20.0 178,394 0.69 1.51 1.49 59
2004 9.32 18.1 179,407 0.90 1.50 1.49 44
2003 7.99 15.1 221,635 1.19 1.48 1.47 50
CLASS A
2008(b) $ 10.07 (7.8)% $ 6,783 0.57%(c) 1.73%(c) 1.72%(c) 20%
2007 12.57 19.5 3,527 0.12 1.77 1.72 58
2006 12.45 13.1 2,780 0.27 1.79 1.75 73
2005 11.05 19.6 2,267 0.59 1.76 1.74 59
2004 9.28 17.7 3,328 0.61 1.75 1.74 44
2003 7.97 15.0 2,923 0.94 1.73 1.72 50
CLASS B
2008(b) $ 9.88 (8.1)% $ 20 0.05%(c) 2.23%(c) 2.22%(c) 20%
2007 12.36 18.8 23 (0.39) 2.27 2.22 58
2006 12.31 12.6 32 (0.20) 2.29 2.25 73
2005 10.96 19.0 30 (0.01) 2.26 2.24 59
2004 9.21 17.2 38 0.21 2.25 2.24 44
2003 7.92 14.3 74 0.44 2.23 2.22 50
CLASS C
2008(b) $ 9.88 (8.1)% $ 348 0.06%(c) 2.23%(c) 2.22%(c) 20%
2007 12.36 18.8 320 (0.39) 2.27 2.22 58
2006 12.31 12.6 316 (0.28) 2.29 2.25 73
2005 10.97 19.1 149 (0.06) 2.26 2.24 59
2004 9.24 17.1 152 0.11 2.25 2.24 44
2003 7.89 14.4 129 0.44 2.23 2.22 50
CLASS I
2008(e) $ 10.13 (7.6)% $ 256 1.09%(c) 1.23%(c) 1.22%(c) 20%
- ----------
+ 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 a period of less than one year
is not annualized.
++ Effective in 2008, a change in accounting policy was adopted with regard
to the calculation of the portfolio turnover rate. Had this policy been
adopted retroactively, the portfolio turnover rate for the fiscal years
ended September 30, 2007, 2006, 2005, 2004, and 2003 would have been as
shown.
(a) Per share data is calculated using the average shares outstanding method.
(b) For the six months ended March 31, 2008, unaudited.
(c) Annualized.
(d) Amount represents less than $0.005 per share.
(e) From the commencement of offering Class I Shares on January 11, 2008
through March 31, 2008.
See accompanying notes to financial statements.
22
GAMCO WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
---------------------------------------- ----------------------------------------
NET
REALIZED
NET ASSET AND TOTAL NET
VALUE, NET UNREALIZED FROM NET REALIZED
PERIOD ENDED BEGINNING INVESTMENT GAIN (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL REDEMPTION
SEPTEMBER 30 OF PERIOD INCOME(a) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS FEES(a)
- ------------ --------- ---------- -------------- ---------- ---------- ----------- ------------- ----------
BALANCED FUND
CLASS AAA
2008(b) $12.58 $0.11 $(0.42) $(0.31) $(0.12) $(0.93) $(1.05) --
2007 12.82 0.22 1.36 1.58 (0.21) (1.61) (1.82) --
2006 12.74 0.22 0.95 1.17 (0.24) (0.85) (1.09) --
2005 11.47 0.20 1.26 1.46 (0.19) -- (0.19) $0.00(d)
2004 10.51 0.21 0.97 1.18 (0.22) -- (0.22) 0.00(d)
2003 9.65 0.21 0.87 1.08 (0.22) -- (0.22) --
CLASS A
2008(b) $12.63 $0.10 $(0.42) $(0.32) $(0.11) $(0.93) $(1.04) --
2007 12.87 0.19 1.36 1.55 (0.18) (1.61) (1.79) --
2006 12.74 0.19 0.95 1.14 (0.16) (0.85) (1.01) --
2005 11.44 0.17 1.26 1.43 (0.13) -- (0.13) $0.00(d)
2004 10.48 0.18 0.97 1.15 (0.19) -- (0.19) 0.00(d)
2003 9.62 0.19 0.86 1.05 (0.19) -- (0.19) --
CLASS B
2008(b) $12.72 $0.07 $(0.43) $(0.36) $(0.07) $(0.93) $(1.00) --
2007 12.95 0.13 1.37 1.50 (0.12) (1.61) (1.73) --
2006 12.76 0.13 0.95 1.08 (0.04) (0.85) (0.89) --
2005 11.43 0.11 1.26 1.37 (0.04) -- (0.04) $0.00(d)
2004 10.48 0.13 0.96 1.09 (0.14) -- (0.14) 0.00(d)
2003 9.63 0.14 0.86 1.00 (0.15) -- (0.15) --
CLASS C
2008(b) $12.74 $0.07 $(0.43) $(0.36) $(0.08) $(0.93) $(1.01) --
2007 12.97 0.13 1.37 1.50 (0.12) (1.61) (1.73) --
2006 12.78 0.13 0.95 1.08 (0.04) (0.85) (0.89) --
2005 11.45 0.11 1.26 1.37 (0.04) -- (0.04) $0.00(d)
2004 10.49 0.13 0.97 1.10 (0.14) -- (0.14) 0.00(d)
2003 9.62 0.14 0.87 1.01 (0.14) -- (0.14) --
CLASS I
2008(e) $11.33 $0.05 $(0.10) $(0.05) $(0.06) -- $(0.06) --
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
--------------------------------------------------------------
OPERATING
NET NET ASSETS, EXPENSES
ASSET VALUE, END OF NET NET OF PORTFOLIO
PERIOD ENDED END OF TOTAL PERIOD INVESTMENT OPERATING CUSTODIAN TURNOVER
SEPTEMBER 30 PERIOD RETURN+ (IN 000'S) INCOME EXPENSES FEE CREDITS RATE++
- ------------ ------------ ------- ----------- ---------- --------- ----------- ---------
BALANCED FUND
CLASS AAA
2008(b) $11.22 (2.7)% $144,129 1.93%(c) 1.23%(c) 1.21%(c) 18%
2007 12.58 13.6 152,185 1.76 1.27 1.19 46
2006 12.82 9.8 145,028 1.78 1.32 1.27 68
2005 12.74 12.8 144,572 1.67 1.25 1.22 56
2004 11.47 11.3 136,400 1.92 1.23 1.22 41
2003 10.51 11.2 152,409 2.10 1.23 1.20 56
CLASS A
2008(b) $11.27 (2.8)% $ 5,648 1.68%(c) 1.48%(c) 1.46%(c) 18%
2007 12.63 13.3 5,519 1.51 1.52 1.44 46
2006 12.87 9.5 5,596 1.53 1.57 1.52 68
2005 12.74 12.6 5,658 1.42 1.50 1.47 56
2004 11.44 11.0 5,298 1.66 1.48 1.47 41
2003 10.48 11.0 5,070 1.85 1.48 1.45 56
CLASS B
2008(b) $11.36 (3.1)% $ 135 1.20%(c) 1.98%(c) 1.96%(c) 18%
2007 12.72 12.7 194 1.02 2.02 1.94 46
2006 12.95 9.0 141 1.02 2.07 2.02 68
2005 12.76 12.0 138 0.93 2.00 1.97 56
2004 11.43 10.4 163 1.18 1.98 1.97 41
2003 10.48 10.4 184 1.35 1.98 1.95 56
CLASS C
2008(b) $11.37 (3.1)% $ 1,231 1.19%(c) 1.98%(c) 1.96%(c) 18%
2007 12.74 12.7 1,003 1.01 2.02 1.94 46
2006 12.97 9.0 946 1.02 2.07 2.02 68
2005 12.78 12.0 982 0.92 2.00 1.97 56
2004 11.45 10.5 846 1.19 1.98 1.97 41
2003 10.49 10.5 456 1.35 1.98 1.95 56
CLASS I
2008(e) $11.22 (2.6)% $ 188 2.14%(c) 0.98%(c) 0.96%(c) 18%
- ----------
+ 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 a period of less than one year
is not annualized.
++ Effective in 2008, a change in accounting policy was adopted with regard
to the calculation of the portfolio turnover rate. Had this policy been
adopted retroactively, the portfolio turnover rate for the fiscal year
ended September 30, 2005 would have been 55%. The portfolio turnover rate
for the fiscal years ended 2007, 2006, 2004, and 2003 would have been as
shown.
(a) Per share data is calculated using the average shares outstanding method.
(b) For the six months ended March 31, 2008, unaudited.
(c) Annualized.
(d) Amount represents less than $0.005 per share.
(e) From the commencement of offering Class I Shares on January 11, 2008
through March 31, 2008.
See accompanying notes to financial statements.
23
GAMCO WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
---------------------------------------- --------------------------------------
NET
REALIZED
NET ASSET AND TOTAL NET
VALUE, NET UNREALIZED GAIN FROM NET REALIZED
PERIOD ENDED BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL REDEMPTION
SEPTEMBER 30 OF PERIOD INCOME(a) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS FEES(a)
- ------------ --------- ---------- --------------- ---------- ---------- ----------- ------------- ----------
INTERMEDIATE BOND FUND
CLASS AAA
2008(c) $ 10.80 $ 0.18 $ 0.35 $ 0.53 $ (0.18) -- $ (0.18) --
2007 10.81 0.40 0.00(e) 0.40 (0.41) -- (0.41) --
2006 10.93 0.39 (0.11) 0.28 (0.39) $(0.01) (0.40) --
2005 11.18 0.34 (0.16) 0.18 (0.34) (0.09) (0.43) $(0.00)(e)
2004 11.31 0.33 (0.12) 0.21 (0.33) (0.01) (0.34) 0.00(e)
2003 11.30 0.31 -- 0.31 (0.30) -- (0.30) --
CLASS A
2008(c) $ 10.80 $ 0.17 $ 0.35 $ 0.52 $ (0.17) -- $ (0.17) --
2007 10.81 0.39 0.00(e) 0.39 (0.40) -- (0.40) --
2006 10.93 0.39 (0.12) 0.27 (0.38) $(0.01) (0.39) --
2005 11.18 0.33 (0.16) 0.17 (0.33) (0.09) (0.42) $(0.00)(e)
2004 11.31 0.32 (0.12) 0.20 (0.32) (0.01) (0.33) 0.00(e)
2003 11.30 0.30 0.01 0.31 (0.30) -- (0.30) --
CLASS B
2008(c) $ 10.80 $ 0.14 $ 0.35 $ 0.49 $ (0.14) -- $ (0.14) --
2007 10.81 0.32 0.00(e) 0.32 (0.33) -- (0.33) --
2006 10.93 0.31 (0.11) 0.20 (0.31) $(0.01) (0.32) --
2005 11.18 0.26 (0.16) 0.10 (0.26) (0.09) (0.35) $(0.00)(e)
2004 11.30 0.25 (0.11) 0.14 (0.25) (0.01) (0.26) 0.00(e)
2003 11.29 0.23 -- 0.23 (0.22) -- (0.22) --
CLASS C
2008(c) $ 10.28 $ 0.12 $ 0.34 $ 0.46 $ (0.13) -- $ (0.13) --
2007 10.31 0.40 0.09 0.49 (0.52) -- (0.52) --
2006 10.82 0.32 (0.36) (0.04) (0.46) $(0.01) (0.47) --
2005 11.17 0.27 (0.12) 0.15 (0.41) (0.09) (0.50) $(0.00)(e)
2004 11.30 0.25 (0.09) 0.16 (0.28) (0.01) (0.29) 0.00(e)
2003 11.29 0.22 0.01 0.23 (0.22) -- (0.22) --
CLASS I
2008(f) $ 11.09 $ 0.07 $ 0.06 $ 0.13 $ (0.07) -- $ (0.07) --
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------
OPERATING
EXPENSES
OPERATING NET OF OPERATING
NET NET EXPENSES WAIVERS/ EXPENSES
ASSET ASSETS, NET OF REIMBURSE- BEFORE
VALUE, END OF NET WAIVERS/ MENTS/ WAIVERS/ PORTFOLIO
PERIOD ENDED END OF TOTAL PERIOD INVESTMENT REIMBURSE- CUSTODIAN REIMBURSE- TURNOVER
SEPTEMBER 30 PERIOD RETURN+ (IN 000'S) INCOME MENTS FEE CREDITS MENTS(b) RATE++
- ------------ ------ ------- ---------- ---------- ---------- ----------- --------- ---------
INTERMEDIATE BOND FUND
CLASS AAA
2008(c) $11.15 4.9% $10,713 3.20%(d) 1.07%(d) 1.00%(d) 1.57%(d) 15%
2007 10.80 3.7 9,413 3.73 1.10 1.00 1.64 20
2006 10.81 2.7 9,917 3.65 1.06 1.00 1.53 35
2005 10.93 1.7 10,272 3.10 1.04 1.00 1.79 33
2004 11.18 2.0 9,553 2.97 1.02 1.00 1.76 32
2003 11.31 2.8 12,174 2.70 1.06 1.00 1.57 73
CLASS A
2008(c) $11.15 4.8% $ 118 3.05%(d) 1.17%(d) 1.10%(d) 1.67%(d) 15%
2007 10.80 3.7 69 3.64 1.20 1.10 1.74 20
2006 10.81 2.6 92 3.59 1.16 1.10 1.63 35
2005 10.93 1.6 58 3.00 1.14 1.10 1.88 33
2004 11.18 1.8 75 2.88 1.12 1.10 1.86 32
2003 11.31 2.8 138 2.60 1.16 1.10 1.67 73
CLASS B
2008(c) $11.15 4.5% $ 49 2.55%(d) 1.82%(d) 1.75%(d) 2.32%(d) 15%
2007 10.80 3.0 93 2.97 1.85 1.75 2.39 20
2006 10.81 2.0 282 2.87 1.81 1.75 2.28 35
2005 10.93 0.9 381 2.34 1.79 1.75 2.53 33
2004 11.18 1.3 456 2.23 1.77 1.75 2.51 32
2003 11.30 2.1 502 1.95 1.81 1.75 2.32 73
CLASS C
2008(c) $10.61 4.5% $ 3,075 2.24%(d) 1.82%(d) 1.75%(d) 2.33%(d) 15%
2007 10.28 4.8 15 3.96 1.85 1.75 2.39 20
2006 10.31 (0.3) 0.1 3.08 1.81 1.75 2.28 35
2005 10.82 1.4 0.1 2.50 1.79 1.75 2.90 33
2004 11.17 1.5 0 2.21 1.77 1.75 2.51 32
2003 11.30 2.1 46 1.95 1.81 1.75 2.32 73
CLASS I
2008(f) $11.15 4.8% $ 48 3.07%(d) 0.82%(d) 0.75%(d) 1.33%(d) 15%
- ----------
+ 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 a period of less than one year
is not annualized.
++ Effective in 2008, a change in accounting policy was adopted with regard
to the calculation of the portfolio turnover rate. Had this policy been
adopted retroactively, the portfolio turnover rate for the fiscal years
ended September 30, 2007, 2006, 2005, 2004, and 2003 would have been as
shown.
(a) Per share data is calculated using the average shares outstanding method.
(b) During the period, fees and expenses were voluntarily reduced and/or
reimbursed. If such fee reductions and/or reimbursements had not occurred,
the ratio would have been as shown.
(c) For the six months ended March 31, 2008, unaudited.
(d) Annualized.
(e) Amount represents less than $0.005 per share.
(f) From the commencement of offering Class I Shares on January 11, 2008
through March 31, 2008.
See accompanying notes to financial statements.
24
GAMCO WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
------------------------------------------- -----------------------------
NET NET
NET ASSET NET REALIZED AND TOTAL ASSET
VALUE, INVESTMENT UNREALIZED FROM NET VALUE,
PERIOD ENDED BEGINNING INCOME GAIN (LOSS)ON INVESTMENT INVESTMENT TOTAL REDEMPTION END OF
SEPTEMBER 30 OF PERIOD (LOSS)(a) INVESTMENTS OPERATIONS INCOME DISTRIBUTIOS FEES(a) PERIOD
- ------------ --------- ---------- ------------- -------------- ------------ ------------ ---------- ------
SMALLCAP EQUITY FUND
CLASS AAA
2008(c) $ 14.99 $(0.01) $ (2.40) $(2.41) -- -- -- $12.58
2007 12.51 (0.04) 2.68 2.64 $(0.16) $(0.16) -- 14.99
2006 11.29 0.14 1.08 1.22 -- -- -- 12.51
2005 9.08 (0.01) 2.22 2.21 -- -- $(0.00)(e) 11.29
2004 8.18 (0.10) 1.00 0.90 -- -- 0.00(e) 9.08
2003 7.49 (0.08) 0.77 0.69 -- -- -- 8.18
CLASS A
2008(c) $ 14.89 $(0.02) $ (2.39) $(2.41) -- -- -- $12.48
2007 12.45 (0.09) 2.67 2.58 $(0.14) $(0.14) -- 14.89
2006 11.25 0.13 1.07 1.20 -- -- -- 12.45
2005 9.07 (0.04) 2.22 2.18 -- -- $(0.00)(e) 11.25
2004 8.18 (0.12) 1.01 0.89 -- -- 0.00(e) 9.07
2003 7.51 (0.10) 0.77 0.67 -- -- -- 8.18
CLASS B
2008(c) $ 14.44 $(0.05) $ (2.32) $(2.37) -- -- -- $12.07
2007 12.03 (0.15) 2.60 2.45 $(0.04) $(0.04) -- 14.44
2006 10.93 0.05 1.05 1.10 -- -- -- 12.03
2005 8.86 (0.08) 2.15 2.07 -- -- $(0.00)(e) 10.93
2004 8.03 (0.17) 1.00 0.83 -- -- 0.00(e) 8.86
2003 7.41 (0.13) 0.75 0.62 -- -- -- 8.03
CLASS C
2008(c) $ 14.31 $(0.05) $ (2.30) $(2.35) -- -- -- $11.96
2007 11.97 (0.14) 2.57 2.43 $(0.09) $(0.09) -- 14.31
2006 10.87 0.09 1.01 1.10 -- -- -- 11.97
2005 8.99 (0.13) 2.01 1.88 -- -- $(0.00)(e) 10.87
2004 8.15 (0.17) 1.01 0.84 -- -- 0.00(e) 8.99
2003 7.47 (0.10) 0.78 0.68 -- -- -- 8.15
CLASS I
2008(g) $ 12.92 $ 0.01 $ (0.35) $(0.34) -- -- -- $12.58
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-------------------------------------------------------------------------------
OPERATING
EXPENSES
OPERATING NET OF OPERATING
NET EXPENSES WAIVERS/ EXPENSES
ASSETS, NET NET OF REIMBURSE- BEFORE
END OF INVESTMENT WAIVERS/ MENTS/ WAIVERS/ PORTFOLIO
PERIOD ENDED TOTAL PERIOD INCOME REIMBURSE- CUSTODIAN REIMBURSE- TURNOVER
SEPTEMBER 30 RETURN+ (IN 000'S) (LOSS) MENTS FEE CREDITS MENTS(b) RATE++
- ------------ ---------- ------------ ------------ ---------- ----------- ---------- ---------
SMALLCAP EQUITY FUND
CLASS AAA
2008(c) (16.1)% $ 6,332 (0.08)%(d) 1.60%(d) 1.50%(d) 2.25%(d) 30%
2007 21.2 8,672 (0.28) 1.71 1.50 2.24 90
2006 10.8 8,717 1.16 1.71 1.50 2.02 81
2005 24.3 8,702 (0.10) 1.56 1.50 2.37 108
2004 11.0(f) 12,106 (1.11) 1.51 1.50 2.12 260
2003 9.2 15,721 (1.03) 1.53 1.50 1.99 329
CLASS A
2008(c) (16.2)% $ 752 (0.32)%(d) 1.85%(d) 1.75%(d) 2.50%(d) 30%
2007 20.9 778 (0.62) 1.96 1.75 2.49 90
2006 10.7 403 1.04 1.96 1.75 2.27 81
2005 24.0 131 (0.35) 1.81 1.75 2.69 108
2004 10.9(f) 140 (1.31) 1.76 1.75 2.37 260
2003 8.9 112 (1.28) 1.78 1.75 2.24 329
CLASS B
2008(c) (16.4)% $ 6 (0.80)%(d) 2.35%(d) 2.25%(d) 3.00%(d) 30%
2007 20.4 7 (1.05) 2.46 2.25 2.99 90
2006 10.1 6 0.44 2.46 2.25 2.77 81
2005 23.4 10 (0.81) 2.31 2.25 3.17 108
2004 10.3(f) 20 (1.93) 2.26 2.25 2.87 260
2003 8.4 65 (1.78) 2.28 2.25 2.74 329
CLASS C
2008(c) (16.4)% $ 225 (0.74)%(d) 2.35%(d) 2.25%(d) 3.00%(d) 30%
2007 20.4 298 (1.04) 2.46 2.25 2.99 90
2006 10.1 238 0.74 2.46 2.25 2.77 81
2005 20.9 0.1 (1.40) 2.31 2.25 2.73 108
2004 10.3(f) 10 (1.98) 2.26 2.25 2.87 260
2003 9.1 111 (1.78) 2.28 2.25 2.74 329
CLASS I
2008(g) (16.1)% $ 155 0.19%(d) 1.36%(d) 1.25%(d) 2.02%(d) 30%
- ----------
+ 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 a period of less than one year
is not annualized.
++ Effective in 2008, a change in accounting policy was adopted with regard
to the calculation of the portfolio turnover rate. Had this policy been
adopted retroactively, the portfolio turnover rate for the fiscal years
ended September 30, 2007, 2006, 2005, 2004, and 2003 would have been as
shown.
(a) Per share data is calculated using the average shares outstanding method.
(b) During the period, fees and expenses were voluntarily reduced and/or
reimbursed. If such fee reductions and/or reimbursements had not occurred,
the ratio would have been as shown.
(c) For the six months ended March 31, 2008, unaudited.
(d) Annualized.
(e) Amount represents less than $0.005 per share.
(f) Total return excluding the effect of the reimbursement from the Fund's
Adviser of $51,180 for the year ended September 30, 2004 was 10.6%, 10.5%,
10.0%, and 9.9% for Class AAA, Class A, Class B, and Class C,
respectively. The Adviser fully reimbursed the Fund for a loss on a
transaction exceeding the Fund's investment restrictions, which otherwise
would have reduced total return by 0.4%, 0.4%, 0.3%, and 0.4% for Class
AAA, Class A, Class B, and Class C, respectively.
(g) From the commencement of offering Class I Shares on January 11, 2008
through March 31, 2008.
See accompanying notes to financial statements.
25
GAMCO WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
----------------------------------------- -----------------------------------------------------
NET
REALIZED
NET ASSET AND TOTAL NET
VALUE, NET UNREALIZED GAIN FROM NET REALIZED
PERIOD ENDED BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL REDEMPTION
SEPTEMBER 30 OF PERIOD INCOME(a) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS FEES(a)
- ------------ ---------- ---------- --------------- ---------- ---------- ----------- ------------- ----------
INCOME FUND
CLASS AAA
2008(c) $ 10.21 $ 0.15 $ (1.17) $ (1.02) $ (0.24) $ (0.21) $ (0.45) --
2007 12.04 0.50 0.59 1.09 (0.47) (2.45) (2.92) --
2006 16.53 0.55 (0.31) 0.24 (0.40) (4.33) (4.73) --
2005 14.12 0.28 3.12 3.40 (0.27) (0.73) (1.00) $ 0.01
2004 11.87 0.33 2.30 2.63 (0.33) (0.05) (0.38) 0.00(e)
2003 10.03 0.38 1.85 2.23 (0.39) -- (0.39) --
CLASS A
2008(c) $ 10.54 $ 0.14 $ (1.20) $ (1.06) $ (0.23) $ (0.21) $ (0.44) --
2007 12.34 0.50 0.59 1.09 (0.44) (2.45) (2.89) --
2006 16.76 0.54 (0.32) 0.22 (0.31) (4.33) (4.64) --
2005 14.33 0.29 3.13 3.42 (0.26) (0.73) (0.99) $ 0.00(e)
2004 12.00 0.51 2.12 2.63 (0.26) (0.04) (0.30) 0.00(e)
2003 10.04 0.38 1.85 2.23 (0.27) -- (0.27) --
CLASS B
2008(c) $ 10.77 $ 0.12 $ (1.29) $ (1.17) $ (0.14) $ (0.21) $ (0.35) --
2007 12.56 0.47 0.57 1.04 (0.38) (2.45) (2.83) --
2006 16.86 0.48 (0.31) 0.17 (0.14) (4.33) (4.47) --
2005 14.33 0.18 3.16 3.34 (0.08) (0.73) (0.81) $ 0.00(e)
2004 12.04 0.25 2.35 2.60 (0.27) (0.04) (0.31) 0.00(e)
2003 10.07 0.27 1.91 2.18 (0.21) -- (0.21) --
CLASS C
2008(c) $ 11.22 $ 0.13 $ (1.29) $ (1.16) $ (0.20) $ (0.21) $ (0.41) --
2007 12.98 0.38 0.71 1.09 (0.40) (2.45) (2.85) --
2006 17.26 0.50 (0.32) 0.18 (0.13) (4.33) (4.46) --
2005 14.66 0.25 3.17 3.42 (0.09) (0.73) (0.82) $ 0.00(e)
2004 12.32 0.24 2.41 2.65 (0.27) (0.04) (0.31) 0.00(e)
2003 10.26 0.32 1.99 2.31 (0.25) -- (0.25) --
CLASS I
2008(f) $ 9.14 $ 0.07 $ (0.31) $ (0.24) $ (0.16) -- $ (0.16) --
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------
OPERATING
EXPENSES
OPERATING NET OF OPERATING
NET NET EXPENSES WAIVERS/ EXPENSES
ASSET ASSETS, NET OF REIMBURSE- BEFORE
VALUE, END OF NET WAIVERS/ MENTS/ WAIVERS/ PORTFOLIO
PERIOD ENDED END OF TOTAL PERIOD INVESTMENT REIMBURSE- CUSTODIAN REIMBURSE- TURNOVER
SEPTEMBER 30 PERIOD RETURN+ (IN 000'S) INCOME MENTS FEE CREDITS MENTS(b) RATE++
- ------------ ---------- ---------- --------------- ---------- ---------- ----------- ------------- ----------
INCOME FUND
CLASS AAA
2008(c) $ 8.74 (10.2)% $ 10,577 3.22%(d) 1.64%(d) 1.50%(d) 1.97%(d) 10%
2007 10.21 10.0 17,871 4.65 1.76 1.50 2.20 64
2006 12.04 3.4 12,054 4.36 1.65 1.50 2.02 141
2005 16.53 24.9 16,182 1.83 1.62 1.50 2.40 58
2004 14.12 22.5 16,472 2.51 1.54 1.50 1.85 28
2003 11.87 22.8 13,923 3.70 1.56 1.50 2.05 33
CLASS A
2008(c) $ 9.04 (9.5)% $ 60 2.90%(d) 1.89%(d) 1.75%(d) 2.23%(d) 10%
2007 10.54 9.7 80 4.45 2.01 1.75 2.45 64
2006 12.34 3.2 97 4.21 1.90 1.75 2.27 141
2005 16.76 24.6 93 1.87 1.87 1.75 3.03 58
2004 14.33 22.2 5 3.96 1.79 1.75 2.10 28
2003 12.00 22.6 10 3.45 1.81 1.75 2.30 33
CLASS B
2008(c) $ 9.25 (9.8)% $ 0.1 2.34%(d) 2.39%(d) 2.25%(d) 2.71%(d) 10%
2007 10.77 9.0 2 4.16 2.51 2.25 2.94 64
2006 12.56 2.7 2 3.72 2.40 2.25 2.77 141
2005 16.86 23.9 2 1.14 2.37 2.25 3.18 58
2004 14.33 21.8 2 1.86 2.29 2.25 2.60 28
2003 12.04 22.0 2 2.95 2.31 2.25 2.80 33
CLASS C
2008(c) $ 9.65 (9.8)% $ 336 2.52%(d) 2.38%(d) 2.25%(d) 2.72%(d) 10%
2007 11.22 9.1 397 3.35 2.51 2.25 2.94 64
2006 12.98 2.8 16 3.71 2.40 2.25 2.77 141
2005 17.26 23.9 16 1.56 2.37 2.25 3.41 58
2004 14.66 21.7 5 1.79 2.29 2.25 2.60 28
2003 12.32 22.8 4 2.95 2.31 2.25 2.80 33
CLASS I
2008(f) $ 8.74 (10.1)% $ 70 3.95%(d) 1.39%(d) 1.25%(d) 1.74%(d) 10%
- ----------
+ 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 a period of less than one year
is not annualized.
++ Effective in 2008, a change in accounting policy was adopted with regard
to the calculation of the portfolio turnover rate. Had this policy been
adopted retroactively, the portfolio turnover rate for the fiscal years
ended September 30, 2007, 2006, 2005, 2004, and 2003 would have been as
shown.
(a) Per share data is calculated using the average shares outstanding method.
(b) During the period, fees and expenses were voluntarily reduced and/or
reimbursed. If such fee reductions and/or reimbursements had not occurred,
the ratio would have been as shown.
(c) For the six months ended March 31, 2008, unaudited.
(d) Annualized.
(e) Amount represents less than $0.005 per share.
(f) From the commencement of offering Class I Shares on January 11, 2008
through March 31, 2008.
See accompanying notes to financial statements.
26
GAMCO WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION. The GAMCO Westwood Funds (the "Trust") was organized as a
Massachusetts business trust on June 12, 1986. The Trust is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified
open-end management investment company and currently consists of six active
separate investment portfolios: GAMCO Westwood Mighty Mites(SM) Fund ("Mighty
Mites(SM) Fund"), GAMCO Westwood Equity Fund ("Equity Fund"), GAMCO Westwood
Balanced Fund ("Balanced Fund"), GAMCO Westwood Intermediate Bond Fund
("Intermediate Bond Fund"), GAMCO Westwood SmallCap Equity Fund ("SmallCap
Equity Fund"), and GAMCO Westwood Income Fund ("Income Fund") (individually, a
"Fund" and collectively, the "Funds"), each with five classes of shares
outstanding. Each class of shares outstanding bears the same voting, dividend,
liquidation, and other rights and conditions, except that the expenses incurred
in the distribution and marketing of such shares are different for each class.
The investment objectives of each Fund are as follows:
o Mighty Mites(SM) Fund seeks to provide long-term capital appreciation by
investing primarily in micro-capitalization equity securities.
o Equity Fund seeks to provide capital appreciation. The Fund's secondary
goal is to produce current income.
o Balanced Fund seeks to provide capital appreciation and current income
resulting in a high total investment return consistent with prudent
investment risk and a balanced investment approach.
o Intermediate Bond Fund seeks to maximize total return, while maintaining a
level of current income consistent with the maintenance of principal and
liquidity.
o SmallCap Equity Fund seeks to provide long-term capital appreciation by
investing primarily in smaller capitalization equity securities.
o Income Fund seeks to provide a high level of current income as well as
long-term capital appreciation by investing primarily in income producing
equity and fixed income securities.
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 Funds in the preparation of their financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange or traded in the U.S. over-the-counter market for
which market quotations are readily available are valued at the last quoted sale
price or a market's official closing price as of the close of business on the
day the securities are being valued. If there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day. If no bid or asked prices are quoted on such
day, the security is valued at the most recently available price or, if the
Board of Trustees (the "Board") so determines, by such other method as the Board
shall 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 Teton Advisors, Inc. (the "Adviser"), formerly known as Gabelli Advisers,
Inc.
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.
27
GAMCO WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
In September 2006, the Financial Accounting Standards Board (the "FASB") issued
Statement of Financial Accounting Standards ("SFAS") 157, Fair Value
Measurements, which clarifies the definition of fair value and requires
companies to expand their disclosure about the use of fair value to measure
assets and liabilities in interim and annual periods subsequent to initial
recognition. Adoption of SFAS 157 requires the use of the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. SFAS 157 is
effective for financial statements issued for fiscal years beginning after
November 15, 2007, and interim periods within those fiscal years. As of March
31, 2008, the adoption of SFAS 157 had no impact on the amounts reported in the
financial statements.
In March 2008, FASB issued Statement of Financial Accounting Standards No. 161,
"Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161")
was issued and is effective for fiscal years beginning after November 15, 2008.
SFAS 161 is intended to improve financial reporting for derivative instruments
by requiring enhanced disclosure that enables investors to understand how and
why an entity uses derivatives, how derivatives are accounted for, and how
derivative instruments affect an entity's results of operations and financial
position. Management is currently evaluating the implications of SFAS 161. The
impact on the Funds' financial statement disclosures, if any, is currently being
assessed.
ACCOUNTING FOR REAL ESTATE INVESTMENT TRUSTS. The Balanced, Intermediate Bond,
SmallCap Equity, and Income Funds own shares of Real Estate Investment Trusts
("REITs") which report information on the source of their distributions
annually. Distributions received from REITs during the year which represent a
return of capital are recorded as a reduction to the cost of the individual REIT
and distributions which represent a capital gain dividend are recorded as a
realized long-term capital gain on investments.
SECURITIES SOLD SHORT. The Mighty Mites(SM) Fund may enter into short sale
transactions. Short selling involves selling securities that may or may not be
owned and, at times, borrowing the same securities for delivery to the
purchaser, with an obligation to replace such borrowed securities at a later
date. The proceeds received from short sales are recorded as liabilities and the
Mighty Mites(SM) Fund records an unrealized gain or loss to the extent of the
difference between the proceeds received and the value of an open short position
on the day of determination. The Mighty Mites(SM) Fund records a realized gain
or loss when the short position is closed out. By entering into a short sale,
the Mighty Mites(SM) Fund bears the market risk of an unfavorable change in the
price of the security sold short. Dividends on short sales are recorded as an
expense by the Mighty Mites(SM) Fund on the ex-dividend date and interest
expense is recorded on the accrual basis. The Mighty Mites(SM) Fund did not hold
any short positions as of March 31, 2008.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Funds 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 Funds 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 Funds 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 Funds may be subject to foreign taxes on income, gains on
investments, or currency repatriation, a portion of which may be recoverable.
The Funds will accrue such taxes and recoveries as applicable, based upon their
current interpretation of tax rules and regulations that exist in the markets in
which they invest.
RESTRICTED AND ILLIQUID SECURITIES. Each Fund may invest up to 10% (except for
the Mighty Mites(SM) Fund, SmallCap Equity Fund, and Income Fund which may
invest up to 15%) of its net assets in restricted securities issued under
Section 4(2) of the Securities Act of 1933, as amended. Illiquid securities
include securities the disposition of which is subject to substantial legal or
contractual restrictions. The sale of illiquid securities often requires more
time and results in higher brokerage charges or dealer discounts and other
selling expenses than does the sale of securities eligible for trading on
national securities exchanges or in the over-the-counter markets. Restricted
securities may sell at a price lower than similar securities that are not
subject to restrictions on resale. Rule 144A securities freely saleable among
qualified institutional
28
GAMCO WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
investors under special rules adopted by the SEC may be treated as liquid if
they satisfy liquidity standards established by the Board. The continued
liquidity of such securities is not as well assured as that of publicly traded
securities, and accordingly the Board will monitor their liquidity.
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
Funds are 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 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 AND INTEREST EXPENSE. When cash balances are maintained in
a Fund's custody account, the Fund receives credits which are used to offset
custodian fees. The gross expenses paid under each custody arrangement are
included in custodian fees in the Statements of Operations with the
corresponding expense offset, if any, shown as "custodian fee credits." When
cash balances are overdrawn, the Fund is charged an overdraft fee equal to 90%
of the current Treasury Bill rate on outstanding balances. This amount, if any,
is shown as "interest expense" in the Statements of Operations.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions from net investment income are
declared and paid annually for the Mighty Mites(SM), Equity, and SmallCap Equity
Funds, and quarterly for the Balanced and Income Funds. The Intermediate Bond
Fund declares dividends daily and pays those dividends monthly. Distributions of
net realized gain on investments are normally declared and paid at least
annually by each Fund. 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 Funds, timing differences, and differing
characterizations of distributions made by the Funds. 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 Funds.
The tax character of distributions paid during the fiscal year ended September
30, 2007 was as follows:
MIGHTY INTERMEDIATE SMALLCAP
MITES(SM) EQUITY BALANCED BOND EQUITY INCOME
FUND FUND FUND FUND FUND FUND
----------- ----------- ----------- ------------ ----------- -----------
DISTRIBUTIONS PAID FROM:
Ordinary income
(inclusive of short-term capital gains) ... -- $ 2,016,357 $ 6,207,247 $ 358,042 $ 112,313 $ 612,849
Net long-term capital gains .................. $ 5,310,690 27,327,666 15,509,989 -- -- 2,316,417
----------- ----------- ----------- ------------ ----------- -----------
Total distributions paid ..................... $ 5,310,690 $29,344,023 $21,717,236 $ 358,042 $ 112,313 $ 2,929,266
=========== =========== =========== ============ =========== ===========
PROVISION FOR INCOME TAXES. The Funds intend to continue to qualify as regulated
investment companies under Subchapter M of the Internal Revenue Code of 1986, as
amended (the "Code"). It is the policy of the Funds to comply with the
requirements of the Code applicable to regulated investment companies and to
distribute substantially all of the Funds' net investment company taxable income
and net capital gains. Therefore, no provision for federal income taxes is
required.
The following summarizes capital loss carryforwards and expiration dates for
each Fund at September 30, 2007:
MIGHTY EQUITY BALANCED INTERMEDIATE SMALLCAP INCOME
EXPIRING IN FISCAL YEAR MITES(SM) FUND FUND FUND BOND FUND EQUITY FUND FUND
- ----------------------- -------------- ------ -------- ------------ ----------- ------
2010 ......................................... -- -- -- -- $1,997,993 --
2011 ......................................... -- -- -- -- 4,845,486 --
2012 ......................................... -- -- -- -- -- --
2013 ......................................... -- -- -- -- -- --
2014 ......................................... -- -- -- $ 3,903 -- --
2015 ......................................... -- -- -- 13,018 -- --
29
GAMCO WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
These capital loss carryforwards are available to reduce future required
distributions of net capital gains to shareholders.
Under the current tax law, capital losses related to securities realized after
October 31 and prior to the Funds' fiscal year end may be treated as occurring
on the first day of the following year. For the fiscal year ended September 30,
2007, the Intermediate Bond Fund deferred capital losses of $19,548, and the
Mighty Mites(SM), Equity, and Income Funds deferred currency losses of $1,118,
$2, and $34, respectively.
The following summarizes the tax cost of investments and the related unrealized
appreciation/(depreciation) at March 31, 2008:
MIGHTY EQUITY BALANCED INTERMEDIATE SMALLCAP INCOME
MITES(SM) FUND FUND FUND BOND FUND EQUITY FUND FUND
-------------- ------------ ------------ ------------ ----------- -----------
Aggregate cost of investments ................ $ 53,783,930 $166,859,163 $135,480,411 $12,260,038 $ 8,261,965 $12,313,247
============= ============ ============ =========== =========== ===========
Gross unrealized appreciation ................ $ 11,551,963 $ 22,901,172 $ 13,070,542 $ 376,970 $ 664,375 $ 146,708
Gross unrealized depreciation ................ (6,168,665) (8,280,231) (3,984,634) (79,480) (1,373,193) (1,305,426)
- ----------- ------------ ------------ ----------- ----------- -----------
Net unrealized appreciation/(depreciation) ... $ 5,383,298 $ 14,620,941 $ 9,085,908 $ 297,490 $ (708,818) $(1,158,718)
============= ============ ============ =========== =========== ===========
FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes, an
Interpretation of FASB Statement No. 109" (the "Interpretation") established a
minimum threshold for financial statement recognition of the benefit of
positions taken in filing tax returns (including whether a Fund is taxable in a
particular jurisdiction) and required certain expanded tax disclosures. The
Funds have adopted the Interpretation for all open tax years and they had no
impact on the amounts reported in the financial statements.
3. INVESTMENT ADVISORY AGREEMENTS AND OTHER TRANSACTIONS. The Funds have entered
into investment advisory agreements (the "Advisory Agreements") with the Adviser
which provide that the Funds will pay the Adviser a fee, computed daily and paid
monthly, at the annual rate of 1.00% for the Mighty Mites(SM), Equity, SmallCap
Equity, and Income Funds, 0.75% for the Balanced Fund, and 0.60% for the
Intermediate Bond Fund, of the value of the Fund's average daily net assets. In
accordance with the Advisory Agreements, the Adviser provides a continuous
investment program for the Funds' portfolios, oversees the administration of all
aspects of the Funds' business and affairs, and pays the compensation of all
Officers and Trustees of the Funds who are affiliated persons of the Adviser.
The Adviser has contractually agreed to waive investment advisory fees and/or to
reimburse expenses to the Intermediate Bond, SmallCap Equity, and Income Funds
in the event annual expenses of such Funds exceed certain prescribed limits.
Such fee waiver/reimbursement arrangement will continue until at least September
30, 2008. The reimbursement agreement ended on September 30, 2005 for the Mighty
Mites(SM) Fund. For the six months ended March 31, 2008, the Adviser waived fees
or reimbursed expenses in the amounts of $32,432, $34,073, and $30,627 for the
Intermediate Bond, SmallCap Equity, and Income Funds, respectively.
The Intermediate Bond, SmallCap Equity, and Income Funds are obliged to repay
the Adviser for a period of two fiscal years following the fiscal year in which
the Adviser reimbursed the Funds only to the extent that the operating expenses
of the Funds fall below the applicable expense limitation for Class AAA of
1.00%, 1.50%, and 1.50%, respectively, and for Class A of 1.10%, 1.75%, and
1.75%, respectively, and for Class B and Class C of 1.75%, 2.25%, and 2.25%,
respectively and for Class I of 0.75%, 1.25%, and 1.25%, respectively of average
daily net assets, the annual limitation under the Advisory Agreements. The
Mighty Mites(SM) Fund's expense ratio for the fiscal year ended September 30,
2007 was not less than its prior expense cap of 1.50%, 1.75%, 2.25%, and 2.25%
for Class AAA, Class A, Class B, and Class C Shares, respectively. The Fund did
not repay the Adviser for any amounts which were under the limits for the
respective Class(es) up to the amount the Adviser reimbursed the Fund in the
fiscal year ended September 30, 2005. As of March 31, 2008, the cumulative
unreimbursed amounts which may be recovered by the Adviser within the next two
fiscal years are $133,031, $117,431, and $143,913 for the Intermediate Bond,
SmallCap Equity, and Income Funds, respectively.
Prior to July 1, 2007, the Adviser had a Sub-Advisory Agreement with Westwood
Management Corp. (the "Sub-Adviser") for all Funds except the Mighty Mites(SM)
Fund, for which there was not a Sub-Advisory agreement. The Adviser paid the
Sub-Adviser out of its advisory fees with respect to the Funds (except the
Mighty Mites(SM) Fund) a fee computed daily and payable monthly, in an amount
equal on an annualized basis to the greater of (i) $150,000 per year on an
aggregate basis for all applicable Funds or (ii) 35% of the net revenues to the
Adviser from the applicable Funds.
Effective July 1, 2007, the Adviser assumed all of the duties and
responsibilities with respect to the SmallCap Equity Fund and the Income Fund
that had been delegated to the Sub-Adviser. The Sub-Adviser continues to serve
as such to the Equity Fund, the Balanced Fund, and the Intermediate Bond Fund.
For the six months ended March 31, 2008, the Adviser informed the Funds that it
paid collectively to the Sub-Adviser fees of $409,941 for the Equity, Balanced,
and Intermediate Bond Funds. Teton Advisors, Inc. remains as the investment
adviser to the Mighty Mites(SM) Fund, SmallCap Equity Fund, and the Income Fund.
30
GAMCO WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
The Trust pays each Trustee who is not considered to be an affiliated person an
annual retainer of $3,000 plus $500 for each Board meeting attended and they are
reimbursed for any out of pocket expenses incurred in attending meetings. All
Board committee members receive $500 per meeting attended. Trustees who are
directors or employees of the Adviser or an affiliated company receive no
compensation or expense reimbursement from the Funds.
4. DISTRIBUTION PLAN. The Trust's Board has adopted a distribution plan (the
"Plan") for each class of shares except Class I 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 Funds. 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%, 0.50% (for the Intermediate Bond Fund's Class
A Shares at an annual rate of 0.35%), 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 six months ended March 31, 2008, other than short-term securities, are as
follows:
PURCHASES SALES PURCHASES SALES
(EXCLUDING U.S. (EXCLUDING U.S. OF U.S. OF U.S.
GOVERNMENT GOVERNMENT GOVERNMENT GOVERNMENT
SECURITIES) SECURITIES) SECURITIES SECURITIES
--------------- --------------- ---------- -----------
Mighty Mites(SM) Fund ......................... $ 6,482,302 $ 1,895,617 $1,698,032 --
Equity Fund ................................... 47,440,127 37,007,279 -- --
Balanced Fund ................................. 24,512,871 22,866,902 2,122,798 $10,813,262
Intermediate Bond Fund ........................ 653,663 932,461 2,162,755 575,373
SmallCap Equity Fund .......................... 2,791,397 2,588,107 -- --
Income Fund ................................... 1,242,307 5,067,588 -- 2,205,896
6. TRANSACTIONS WITH AFFILIATES. During the six months ended March 31, 2008, the
Mighty Mites(SM) Fund and the Income Fund paid brokerage commissions on security
trades of $9,536 and $7,363 respectively to Gabelli & Company. Additionally,
Gabelli & Company informed the Trust that it received $14,533 from investors
representing commissions (sales charges and underwriting fees) on sales and
redemptions of Fund shares.
The cost of calculating each Fund's NAV per share is a Fund expense pursuant to
the Advisory Agreement between each Fund and the Adviser. During the six months
ended March 31, 2008, the Mighty Mites(SM), Equity, and Balanced Funds each paid
or accrued $22,500 to the Adviser in connection with the cost of computing these
Funds' NAVs. A reimbursement was not sought during the six months ended March
31, 2008 for the Intermediate Bond, SmallCap Equity, and Income Funds.
7. SHARES OF BENEFICIAL INTEREST. The Funds currently offer five classes of
shares - Class AAA Shares, Class A Shares, Class B Shares, Class C Shares, and
Class I 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 I Shares are offered to
foundations, endowments, institutions, and employee benefit plans, also without
a sales charge. Class A Shares are subject to a maximum front-end sales charge
of 4.00%. 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. Class I Shares were
first issued on January 11, 2008.
Only the Mighty Mites(SM) Fund imposes a redemption fee of 2.00% on all classes
of shares that are redeemed or exchanged on or before the seventh 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 Mighty Mites(SM)
Fund. The redemption fees retained by the Mighty Mites(SM) Fund during the six
months ended March 31, 2008 and fiscal year ended September 30, 2007 amounted to
$625 and $131, respectively.
The redemption fee does not apply to redemptions of shares where (i) the shares
were purchased through automatic reinvestment of dividends or other
distributions, (ii) the redemption was initiated by the Mighty Mites(SM) Fund,
(iii) the shares were purchased through programs that collect the redemption fee
at the program level and remit them to the Mighty Mites(SM) Fund, or (iv) the
shares were purchased through programs that the Adviser determines to have
appropriate anti-short-term trading policies in place or as to which the Adviser
has received assurances that look-through redemption fee procedures or effective
anti-short-term trading policies and procedures are in place.
31
GAMCO WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
Transactions in shares of beneficial interest were as follows:
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2008 SEPTEMBER 30, MARCH 31, 2008 SEPTEMBER 30, MARCH 31, 2008 SEPTEMBER 30,
(UNAUDITED) 2007 (UNAUDITED) 2007 (UNAUDITED) 2007
-------------- ------------- -------------- ------------- -------------- -------------
MIGHTY MITES(SM) FUND EQUITY FUND BALANCED FUND
----------------------------- ----------------------------- -----------------------------
CLASS AAA
Shares sold .......................... 1,134,635 783,276 3,072,327 3,159,294 1,242,933 2,267,326
Shares issued upon reinvestment of
distributions ...................... 278,799 309,929 2,161,815 2,471,688 1,054,920 1,709,223
Shares redeemed ...................... (555,996) (565,605) (2,452,430) (4,141,576) (1,551,976) (3,184,984)
-------------- ------------- -------------- ------------- -------------- -------------
Net increase in Class AAA Shares .. 857,438 527,600 2,781,712 1,489,406 745,877 791,565
============== ============= ============== ============= ============== =============
CLASS A
Shares sold .......................... 321,406 133,030 404,770 47,697 58,208 31,137
Shares issued upon reinvestment of
distributions ...................... 29,244 37 56,338 40,525 34,758 58,360
Shares redeemed ...................... (118,714) (687) (68,043) (30,804) (28,588) (87,393)
-------------- ------------- -------------- ------------- -------------- -------------
Net increase in Class A Shares .... 231,936 132,380 393,065 57,418 64,378 2,104
============== ============= ============== ============= ============== =============
CLASS B
Shares sold .......................... -- -- -- -- -- 3,276
Shares issued upon reinvestment of
distributions ...................... 2,672 4,999 183 355 887 1,354
Shares redeemed ...................... (12,983) (8,267) -- (1,070) (4,258) (248)
-------------- ------------- -------------- ------------- -------------- -------------
Net increase (decrease) in Class
B Shares ........................ (10,311) (3,268) 183 (715) (3,371) 4,382
============== ============= ============== ============= ============== =============
CLASS C
Shares sold .......................... 164,300 114,117 10,189 1,532 32,867 13,769
Shares issued upon reinvestment of
distributions ...................... 13,882 3,195 4,010 4,708 5,426 9,197
Shares redeemed ...................... (30,000) (11,032) (4,842) (6,067) (8,725) (17,216)
-------------- ------------- -------------- ------------- -------------- -------------
Net increase in Class C Shares .... 148,182 106,280 9,357 173 29,568 5,750
============== ============= ============== ============= ============== =============
CLASS I*
Shares sold .......................... 20,460 -- 26,562 -- 16,670 --
Shares issued upon reinvestment of
distributions ...................... -- -- -- -- 93 --
Shares redeemed ...................... (157) -- (1,282) -- -- --
-------------- ------------- -------------- ------------- -------------- -------------
Net increase in Class I Shares .... 20,303 -- 25,280 -- 16,763 --
============== ============= ============== ============= ============== =============
INTERMEDIATE BOND FUND SMALLCAP EQUITY FUND INCOME FUND
----------------------------- ----------------------------- -----------------------------
CLASS AAA
Shares sold .......................... 157,394 120,020 96,489 251,401 211,206 1,290,924
Shares issued upon reinvestment of
distributions ...................... 10,578 25,233 -- 5,666 58,450 269,742
Shares redeemed ...................... (78,283) (190,997) (171,611) (375,125) (810,607) (810,836)
-------------- ------------- -------------- ------------- -------------- -------------
Net increase (decrease) in Class
AAA Shares ....................... 89,689 (45,744) (75,122) (118,058) (540,951) 749,830
============== ============= ============== ============= ============== =============
CLASS A
Shares sold .......................... 6,292 836 37,362 26,209 4,265 7,402
Shares issued upon reinvestment of
distributions ...................... 95 230 -- 363 406 2,100
Shares redeemed ...................... (2,239) (3,161) (29,399) (6,710) (5,619) (9,794)
-------------- ------------- -------------- ------------- -------------- -------------
Net increase (decrease) in Class
A Shares ........................ 4,148 (2,095) 7,963 19,862 (948) (292)
============== ============= ============== ============= ============== =============
CLASS B
Shares issued upon reinvestment of
distributions ...................... 18 81 -- 2 -- 43
Shares redeemed ...................... (4,206) (17,619) -- (5) (202) --
-------------- ------------- -------------- ------------- -------------- -------------
Net increase (decrease) in Class
B Shares ........................ (4,188) (17,538) -- (3) (202) 43
============== ============= ============== ============= ============== =============
CLASS C
Shares sold .......................... 301,449 8,938 1,424 2,746 -- 33,760
Shares issued upon reinvestment of
distributions ...................... 1,093 1 -- 142 1,341 700
Shares redeemed ...................... (14,226) (7,485) (3,388) (2,001) (1,992) (268)
-------------- ------------- -------------- ------------- -------------- -------------
Net increase (decrease) in Class
C Shares ........................ 288,316 1,454 (1,964) 887 (651) 34,192
============== ============= ============== ============= ============== =============
CLASS I*
Shares sold .......................... 4,301 -- 12,733 -- 7,910 --
Shares issued upon reinvestment of
distributions ...................... 27 -- -- -- 145 --
Shares redeemed ...................... -- -- (450) -- -- --
-------------- ------------- -------------- ------------- -------------- -------------
Net increase in Class I Shares .... 4,328 -- 12,283 -- 8,055 --
============== ============= ============== ============= ============== =============
- ----------
* From the commencement of offering Class I Shares on January 11, 2008.
32
GAMCO WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
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8. INDEMNIFICATIONS. The Funds enter into contracts that contain a variety of
indemnifications. The Funds' maximum exposure under these arrangements is
unknown. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
9. OTHER MATTERS. On April 24, 2008, an affiliate of the Adviser, Gabelli Funds,
LLC, entered into an administrative settlement with the SEC to resolve the SEC's
inquiry regarding prior frequent trading activity in shares of the GAMCO Global
Growth Fund (the "Global Growth Fund") by one investor who was banned from the
Global Growth Fund in August 2002. In the settlement, the SEC found that Gabelli
Funds, LLC had violated Section 206(2) of the Investment Advisers Act, Section
17(d) of the 1940 Act and Rule 17d-1 thereunder, and had aided and abetted and
caused violations of Section 12(d)(1)(B)(i) of the 1940 Act. Under the terms of
the settlement, Gabelli Funds LLC, while neither admitting nor denying the SEC's
findings and allegations, agreed, among other things, to pay the previously
reserved total of $16 million (including a $5 million penalty), of which at
least $11 million will be distributed to shareholders of the Global Growth Fund
in accordance with a plan to be developed by an independent distribution
consultant and approved by the independent directors of the Global Growth Fund
and the staff of the SEC, and to cease and desist from future violations of the
above referenced federal securities laws. The settlement will not have a
material adverse impact on Gabelli Funds LLC. On the same day, the SEC filed a
civil action against the President of the Adviser, alleging violations of
certain federal securities laws arising from the same matter. The officer is
also an officer of the Global Growth Fund and other funds in the Gabelli/GAMCO
fund complex. The officer denies the allegations and is continuing in his
positions with the Adviser and the funds. The Adviser currently expects that any
resolution of the action against the officer will not have a material adverse
impact on the Adviser or its ability to fulfill its obligations under the
Advisory Agreements.
On a separate matter, in September 2005, Gabelli Funds, LLC 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 Gabelli Funds, LLC
in connection with the actions of two of nine closed-end funds managed by
Gabelli Funds, LLC the 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.
Gabelli Funds, LLC believes that all of the funds are now in compliance. Teton
Advisors, Inc. believes that these matters would have no effect on the Funds or
any material adverse effect on Teton Advisors, Inc. or its ability to manage the
Funds.
33
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GAMCO WESTWOOD 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 or Teton Advisors, 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
SHAREHOLDER?
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 website, 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
GAMCO 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 at the time of investment of $2 billion or less) believed to
have rapid revenue and earnings growth potential. The fund's primary objective
is capital appreciation. (MULTICLASS)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GAMCO 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)
PORTFOLIO MANAGER: ELIZABETH M. LILLY, CFA
GABELLI WOODLAND SMALL CAP VALUE FUND
Seeks to invest primarily in the common stocks of smaller companies (market
capitalizations generally less than $3.0 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
GAMCO 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 average market 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
GAMCO 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
GAMCO 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)
PORTFOLIO MANAGER: BARBARA MARCIN, CFA
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
GABELLI SRI FUND
Seeks to invest in common and preferred stocks of companies that meet the fund's
guidelines for social responsibility at the time of investment, looking to avoid
companies in tobacco, alcohol, and gaming, defense/weapons contractors, and
manufacturers of abortifacients. The fund's primary objective is capital
appreciation. (MULTICLASS)
PORTFOLIO MANAGER: CHRISTOPHER C. DESMARAIS
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 worldwide 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. (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
GAMCO 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 WESTWOOD FUNDS
GAMCO WESTWOOD MIGHTY MITES(SM) FUND
GAMCO WESTWOOD EQUITY FUND
GAMCO WESTWOOD BALANCED FUND
GAMCO WESTWOOD INTERMEDIATE BOND FUND
GAMCO WESTWOOD SMALLCAP EQUITY FUND
GAMCO WESTWOOD INCOME FUND
One Corporate Center
Rye, New York 10580-1422
GENERAL AND ACCOUNT INFORMATION:
800-GABELLI [800-422-3554]
fax: 914-921-5118
website: www.gabelli.com
e-mail: info@gabelli.com
Board of Trustees
ANTHONY J. COLAVITA WERNER J. ROEDER, MD
ATTORNEY-AT-LAW MEDICAL DIRECTOR
ANTHONY J. COLAVITA, P.C. LAWRENCE HOSPITAL
JAMES P. CONN SALVATORE J. ZIZZA
FORMER CHIEF INVESTMENT OFFICER CHAIRMAN
FINANCIAL SECURITY ASSURANCE ZIZZA & CO., LTD.
HOLDINGS LTD.
Officers
BRUCE N. ALPERT AGNES MULLADY
PRESIDENT AND SECRETARY TREASURER
PETER D. GOLDSTEIN
CHIEF COMPLIANCE OFFICER
Investment Adviser
------------------
Teton Advisors, Inc.
Distributor
-----------
Gabelli & Company, Inc.
Custodian
---------
The Bank of New York
Legal Counsel
-------------
Paul, Hastings, Janofsky & Walker LLP
- --------------------------------------------------------------------------------
This report is submitted for the information of the shareholders of the GAMCO
Westwood Funds. It is not authorized for distribution to prospective investors
unless preceded or accompanied by an effective prospectus.
- --------------------------------------------------------------------------------
GABWWQ108SR
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. INVESTMENTS.
(a) 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.
(b) Not applicable.
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 trustees, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 22(b)(15) 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) The GAMCO Westwood Funds
--------------------------------------------------------------------
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date 5/27/08
----------------------------------------------------------------------------
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 5/27/08
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Agnes Mullady
-------------------------------------------------------
Agnes Mullady,
Principal Financial Officer and Treasurer
Date 5/27/08
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.