UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08560
GAMCO International Growth Fund, Inc.
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
Date of fiscal year end: December 31
Date of reporting period: June 30, 2008
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549. The OMB has reviewed this collection of information under
the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
GAMCO INTERNATIONAL GROWTH FUND, INC.
SEMI-ANNUAL REPORT
JUNE 30, 2008
TO OUR SHAREHOLDERS,
During the second quarter of 2008, the GAMCO International Growth Fund's
(the "Fund") net asset value ("NAV") per share declined 1.7% while the Morgan
Stanley Capital International ("MSCI") Europe, Australasia, and the Far East
("EAFE") Index slipped 1.9% and the Lipper International Multi-Cap Growth Fund
Average was down 1.3%. For the six month period ended June 30, 2008, the Fund
was down 8.6% versus decreases of 10.6% and 11.0% for the MSCI EAFE Index and
the Lipper International Multi-Cap Growth Fund Average, respectively.
Enclosed are the financial statements and the investment portfolio as of
June 30, 2008.
COMPARATIVE RESULTS
AVERAGE ANNUAL RETURNS THROUGH JUNE 30, 2008 (a)
- ------------------------------------------------------------------------------------------------------------------------------------
Since
Year to Inception
Quarter Date 1 Year 3 Year 5 Year 10 Year (6/30/95)
------- ------- ------ ------ ------ ------- ----------
GAMCO INTERNATIONAL GROWTH FUND
CLASS AAA (b) .............................. (1.68)% (8.59)% (6.67)% 11.96% 15.34% 5.67% 8.96%
MSCI EAFE Index ............................... (1.93) (10.58) (10.15) 13.34 17.16 6.23 7.31
Lipper International Multi-Cap
Growth Fund Average ........................ (1.34) (10.99) (7.13) 14.92 16.96 6.71 8.86
Class A ....................................... (1.71) (8.58) (6.68) 11.96 15.33 5.82 9.08
(7.36) (b) (13.84) (b) (12.04) (b) 9.77 (b) 13.98 (b) 5.19 (b) 8.58 (b)
Class B ....................................... (1.89) (8.95) (7.41) 11.09 14.47 5.08 8.49
(6.79) (c) (13.50) (c) (12.04) (c) 10.28 (c) 14.23 (c) 5.08 8.49
Class C ....................................... (1.89) (8.93) (7.36) 11.13 14.31 5.00 8.42
(2.87) (d) (9.84) (d) (8.28) (d) 11.13 14.31 5.00 8.42
Class I ....................................... (1.64) (8.48) (6.55) 12.01 15.37 5.69 8.97
IN THE CURRENT PROSPECTUS, THE EXPENSE RATIOS FOR CLASS AAA, A, B, C, AND I
SHARES ARE 1.91%, 1.91%, 2.66%, 2.66%, AND 1.66%, RESPECTIVELY. CLASS AAA AND
CLASS I SHARES DO NOT HAVE A SALES CHARGE. THE MAXIMUM SALES CHARGE FOR CLASS A,
B, AND C SHARES IS 5.75%, 5.00%, AND 1.00%, RESPECTIVELY.
(a) RETURNS REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS.
TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN SHARE PRICE
AND REINVESTMENT OF DISTRIBUTIONS AND ARE NET OF EXPENSES. INVESTMENT
RETURNS AND THE PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE. WHEN
SHARES ARE REDEEMED, THEY MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST. PERFORMANCE RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT
ANNUALIZED. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE
PERFORMANCE DATA PRESENTED. VISIT www.gabelli.com FOR PERFORMANCE
INFORMATION AS OF THE MOST RECENT MONTH END. INVESTORS SHOULD CAREFULLY
CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE
FUND BEFORE INVESTING. THE PROSPECTUS CONTAINS MORE INFORMATION ABOUT THIS
AND OTHER MATTERS AND SHOULD BE READ CAREFULLY BEFORE INVESTING.
INVESTING IN FOREIGN SECURITIES INVOLVES RISKS NOT ORDINARILY ASSOCIATED
WITH INVESTMENTS IN DOMESTIC ISSUES, INCLUDING CURRENCY FLUCTUATION,
ECONOMIC, AND POLITICAL RISKS. THE CLASS AAA SHARE NAVS PER SHARE ARE 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 ON JULY 25,
2001, JANUARY 17, 2001, DECEMBER 17, 2000, AND JANUARY 11, 2008,
RESPECTIVELY. THE ACTUAL PERFORMANCE OF THE CLASS B SHARES AND CLASS C
SHARES WOULD HAVE BEEN LOWER DUE TO THE ADDITIONAL EXPENSES ASSOCIATED
WITH THESE CLASSES OF SHARES. THE ACTUAL PERFORMANCE OF THE CLASS I SHARES
WOULD HAVE BEEN HIGHER DUE TO LOWER EXPENSES RELATED TO THIS CLASS OF
SHARES. THE MORGAN STANLEY CAPITAL INTERNATIONAL ("MSCI") EAFE INDEX IS AN
UNMANAGED INDICATOR OF INTERNATIONAL STOCK MARKET PERFORMANCE, WHILE THE
LIPPER INTERNATIONAL MULTI-CAP GROWTH FUND AVERAGE REFLECTS THE AVERAGE
PERFORMANCE OF MUTUAL FUNDS CLASSIFIED IN THIS PARTICULAR CATEGORY.
DIVIDENDS ARE CONSIDERED REINVESTED YOU CANNOT INVEST DIRECTLY IN AN
INDEX.
(b) INCLUDES THE EFFECT OF THE MAXIMUM 5.75% 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 QUARTER, YEAR TO DATE, ONE YEAR,
THREE YEAR, AND FIVE YEAR PERIODS OF 5%, 5%, 5%, 3%, AND 2%, RESPECTIVELY,
OF THE FUND'S NAV PER SHARE AT THE TIME OF PURCHASE OR SALE, WHICHEVER IS
LOWER. CLASS B SHARES ARE NOT AVAILABLE FOR NEW PURCHASES.
(d) PERFORMANCE RESULTS INCLUDE THE DEFERRED SALES CHARGES FOR THE CLASS C
SHARES UPON REDEMPTION AT THE END OF THE QUARTER, YEAR TO DATE, AND ONE
YEAR PERIODS OF 1% OF THE FUND'S NAV PER SHARE AT THE TIME OF PURCHASE OR
SALE, WHICHEVER IS LOWER.
We have separated the portfolio manager's commentary from the financial
statements and investment portfolio due to corporate governance regulations
stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that
the content of the portfolio manager's commentary is unrestricted. The financial
statements and investment portfolio are mailed separately from the commentary.
Both the commentary and the financial statements, including the portfolio of
investments, will be available on our website at www.gabelli.com/funds.
GAMCO INTERNATIONAL GROWTH FUND, INC.
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
For the Six Month Period from January 1, 2008 through
June 30, 2008 EXPENSE TABLE
We believe it is important for you to understand the impact of fees and expenses
regarding your investment. All mutual funds have operating expenses. As a
shareholder of a fund, you incur ongoing costs, which include costs for
portfolio management, administrative services, and shareholder reports (like
this one), among others Operating expenses, which are deducted from a fund's
gross income, directly reduce the investment return of a fund. When a fund's
expenses are expressed as a percentage of its average net assets, this figure is
known as the expense ratio. The following examples are intended to help you
understand the ongoing costs (in dollars) of investing in your Fund and to
compare these costs with those of other mutual funds. The examples are based on
an investment of $1,000 made at the beginning of the period shown and held for
the entire period.
The Expense Table below illustrates your Fund's costs in two ways:
ACTUAL FUND RETURN: This section provides information about actual account
values and actual expenses. You may use this section to help you to estimate the
actual expenses that you paid over the period after any fee waivers and expense
reimbursements. The "Ending Account Value" shown is derived from the Fund's
ACTUAL return during the past six months, and the "Expenses Paid During Period"
shows the dollar amount that would have been paid by an investor who started
with $1,000 in the Fund. You may use this information, together with the amount
you invested, to estimate the expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for your Fund under the heading "Expenses Paid During Period" to estimate
the expenses you paid during this period.
HYPOTHETICAL 5% RETURN: This section provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio. It assumes a hypothetical annualized return of 5% before expenses during
the period shown. In this case - because the hypothetical return used is NOT the
Fund's actual return - the results do not apply to your investment and you
cannot use the hypothetical account value and expense to estimate the actual
ending account balance or expenses you paid for the period. This example is
useful in making comparisons of the ongoing costs of investing in the Fund and
other funds To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs such as sales
charges (loads), redemption fees, or exchange fees, if any, which are described
in the Prospectus. If these costs were applied to your account, your costs would
be higher. Therefore, the 5% hypothetical return is useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning
different funds.
Beginning Ending Annualized Expenses
Account Value Account Value Expense Paid During
01/01/08 06/30/08 Ratio Period*
------------- ------------- ---------- -----------
GAMCO INTERNATIONAL GROWTH FUND, INC.
ACTUAL FUND RETURN
Class AAA $1,000.00 $ 914.10 2.00% $ 9.52
Class A $1,000.00 $ 914.20 2.00% $ 9.52
Class B $1,000.00 $ 910.50 2.75% $ 13.06
Class C $1,000.00 $ 910.70 2.75% $ 13.06
Class I** $1,000.00 $ 915.20 1.75% $ 7.88
HYPOTHETICAL 5% RETURN
Class AAA $1,000.00 $1,014.92 2.00% $ 10.02
Class A $1,000.00 $1,014.92 2.00% $ 10.02
Class B $1,000.00 $1,011.19 2.75% $ 13.75
Class C $1,000.00 $1,011.19 2.75% $ 13.75
Class I $1,000.00 $1,016.16 1.75% $ 8.77
* 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 for the Actual Fund Return are calculated from January 11,
2008 through June 30, 2008.
2
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)
The following table presents portfolio holdings as a percent of net assets as of
June 30, 2008:
GAMCO INTERNATIONAL GROWTH FUND, INC.
Materials ...................................................... 21.3%
Energy ......................................................... 15.5%
Health Care .................................................... 15.3%
Consumer Staples ............................................... 13.3%
Consumer Discretionary ......................................... 12.5%
Industrial ..................................................... 6.7%
Information Technology ......................................... 5.3%
Telecommunication Services ..................................... 5.0%
Financial ...................................................... 4.5%
Other Assets and Liabilities (Net) ............................. 0.6%
-----
100.0%
=====
THE FUND FILES 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 MARCH 31,
2008. SHAREHOLDERS MAY OBTAIN THIS INFORMATION AT www.gabelli.com OR BY CALLING
THE FUND AT 800-GABELLI (800-422-3554). THE FUND'S FORM N-Q IS AVAILABLE ON THE
SEC'S WEBSITE AT www.sec.gov AND MAY ALSO BE REVIEWED AND COPIED AT THE 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
The Fund files Form N-PX with its complete proxy voting record for the 12 months
ended June 30th, no later than August 31st of each year. A description of the
Fund's proxy voting policies, procedures, and how the Fund voted proxies
relating to portfolio securities is available without charge, upon request, 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.
3
GAMCO INTERNATIONAL GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS -- JUNE 30, 2008 (UNAUDITED)
MARKET
SHARES COST VALUE
- ----------- ----------- --------------
COMMON STOCKS -- 99.4%
MATERIALS -- 21.3%
26,390 Anglo American plc ...................... $ 1,051,007 $ 1,853,466
11,000 Bayer AG ................................ 462,774 925,523
10,000 BHP Billiton Ltd. ....................... 421,111 425,604
38,000 CRH plc ................................. 497,637 1,104,419
45,500 Harmony Gold Mining Co. Ltd. + .......... 334,413 553,875
10,000 Impala Platinum Holdings Ltd. ........... 385,797 392,994
12,000 Rio Tinto plc ........................... 624,492 1,445,123
1,700 Syngenta AG ............................. 497,160 550,754
60,000 Tokai Carbon Co. Ltd. ................... 268,826 612,113
29,500 Xstrata plc ............................. 672,328 2,349,979
----------- --------------
TOTAL MATERIALS ......................... 5,215,545 10,213,850
----------- --------------
ENERGY -- 15.5%
45,000 BP plc .................................. 556,109 521,576
15,000 Galp Energia SGPS SA, Cl. B ............. 396,063 332,693
18,000 Imperial Oil Ltd. ....................... 673,425 991,350
28,400 Petroleo Brasileiro SA, ADR ............. 313,833 2,011,572
36,000 Saipem SpA .............................. 670,246 1,682,560
13,000 Technip SA .............................. 395,569 1,199,635
8,500 Total SA ................................ 338,029 723,508
----------- --------------
TOTAL ENERGY ............................ 3,343,274 7,462,894
----------- --------------
HEALTH CARE -- 15.3%
HEALTH CARE EQUIPMENT AND SERVICES -- 5.9%
6,000 Cochlear Ltd. ........................... 291,000 252,002
50,000 Smith & Nephew plc ...................... 454,057 548,570
3,000 Straumann Holding AG .................... 617,094 717,146
5,500 Synthes Inc. ............................ 372,080 758,064
8,000 William Demant Holding A/S + ............ 361,749 525,397
----------- --------------
2,095,980 2,801,179
----------- --------------
PHARMACEUTICALS, BIOTECHNOLOGY, AND LIFE SCIENCES -- 9.4%
9,126 AstraZeneca plc ......................... 365,568 387,088
28,140 GlaxoSmithKline plc ..................... 804,631 622,056
23,000 Novartis AG ............................. 883,176 1,265,740
8,500 Roche Holding AG ........................ 871,314 1,528,065
4,000 Sanofi-Aventis .......................... 275,633 265,796
9,000 Takeda Pharmaceutical Co. Ltd. .......... 440,091 457,735
----------- --------------
3,640,413 4,526,480
----------- --------------
TOTAL HEALTH CARE ....................... 5,736,393 7,327,659
----------- --------------
CONSUMER STAPLES -- 13.3%
FOOD AND STAPLES RETAILING -- 3.2%
50,000 Tesco plc ............................... 436,369 365,715
50,000 Woolworths Ltd. ......................... 686,495 1,171,745
----------- --------------
1,122,864 1,537,460
----------- --------------
FOOD, BEVERAGE, AND TOBACCO -- 10.1%
30,000 Ajinomoto Co. Inc. ...................... 353,089 284,218
8,000 British American Tobacco plc ............ 304,046 275,950
35,200 Cadbury plc ............................. 402,382 441,529
15,000 Cermaq ASA .............................. 233,129 178,660
25,000 Coca-Cola Hellenic Bottling Co. SA ...... 224,682 680,180
50,000 Diageo plc .............................. 445,045 916,058
6,600 Dr. Pepper Snapple Group Inc. + ......... 164,353 138,468
100 Japan Tobacco Inc. ...................... 577,985 426,486
10,000 Nestle SA ............................... 443,695 450,647
10,400 Pernod-Ricard SA ........................ 314,505 1,061,270
----------- --------------
3,462,911 4,853,466
----------- --------------
TOTAL
CONSUMER STAPLES ...................... 4,585,775 6,390,926
----------- --------------
CONSUMER DISCRETIONARY -- 12.5%
CONSUMER DURABLES AND APPAREL -- 7.4%
10,000 Christian Dior SA ....................... 593,312 1,027,228
30,000 Compagnie Financiere
Richemont SA, Cl. A ................... 682,139 1,664,874
18,500 The Swatch Group AG ..................... 1,038,529 862,974
----------- --------------
2,313,980 3,555,076
----------- --------------
CONSUMER SERVICES -- 1.0%
13,428 InterContinental
Hotels Group plc ........................ 319,354 178,969
60,000 Ladbrokes plc ........................... 685,770 304,861
----------- --------------
1,005,124 483,830
----------- --------------
MEDIA -- 2.9%
40,000 British Sky Broadcasting Group plc ...... 477,247 374,906
8,500 Modern Times Group MTG AB, Cl. B ........ 229,000 497,577
13,000 Vivendi ................................. 297,870 490,183
----------- --------------
1,004,117 1,362,666
----------- --------------
RETAIL -- 1.2%
11,000 Hennes & Mauritz AB, Cl. B .............. 451,333 593,453
----------- --------------
TOTAL CONSUMER
DISCRETIONARY ......................... 4,774,554 5,995,025
----------- --------------
See accompanying notes to financial statements.
4
GAMCO INTERNATIONAL GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED) -- JUNE 30, 2008 (UNAUDITED)
MARKET
SHARES COST VALUE
- ----------- ----------- --------------
COMMON STOCKS (Continued)
INDUSTRIAL -- 6.7%
CAPITAL GOODS -- 5.0%
6,000 CNH Global NV ........................... $ 318,255 $ 203,820
6,400 Fanuc Ltd. .............................. 650,281 625,903
8,000 Finmeccanica SpA ........................ 252,148 209,168
20,000 Jardine Matheson Holdings Ltd. .......... 494,307 620,000
15,000 Mitsui & Co. Ltd. ....................... 346,589 331,066
3,500 SMC Corp. ............................... 446,762 384,146
----------- --------------
2,508,342 2,374,103
----------- --------------
COMMERCIAL SERVICES AND SUPPLIES -- 1.3%
13,000 Secom Co. Ltd. ......................... 543,997 633,207
----------- --------------
TRANSPORTATION -- 0.4%
35,000 Toll Holdings Ltd. ...................... 379,263 202,530
----------- --------------
TOTAL INDUSTRIAL ........................ 3,431,602 3,209,840
----------- --------------
INFORMATION TECHNOLOGY -- 5.3%
18,000 Canon Inc. .............................. 700,674 926,567
3,800 Keyence Corp. ........................... 719,306 905,818
17,000 Square Enix Co. Ltd. .................... 457,695 503,079
600 Yahoo! Japan Corp. ...................... 226,445 231,093
----------- --------------
TOTAL INFORMATION TECHNOLOGY ............ 2,104,120 2,566,557
----------- --------------
TELECOMMUNICATION SERVICES -- 5.0%
8,000 Bouygues SA ............................. 249,820 527,816
34,000 China Mobile Ltd. ....................... 416,725 456,377
8,500 Orascom Telecom Holding SAE, GDR ........ 596,452 546,910
25,000 Tele2 AB, Cl. B ......................... 449,804 486,166
90,000 Telstra Corp. Ltd. ...................... 386,506 365,704
----------- --------------
TOTAL TELECOMMUNICATION SERVICES ........ 2,099,307 2,382,973
----------- --------------
FINANCIAL -- 4.5%
1,500 Allianz SE .............................. 205,454 263,855
70,000 AXA Asia Pacific Holdings Ltd. .......... 418,637 313,859
40,000 Cheung Kong (Holdings) Ltd. ............. 466,028 540,921
1,562 Prosperity REIT ......................... 439 301
12,000 Schroders plc ........................... 318,908 217,291
18,000 Standard Chartered plc .................. 358,441 509,750
30,000 Swire Pacific Ltd., Cl. A ............... 338,222 307,075
----------- --------------
TOTAL FINANCIAL ......................... 2,106,129 2,153,052
----------- --------------
TOTAL COMMON STOCKS ..................... 33,396,699 47,702,776
----------- --------------
TOTAL INVESTMENTS -- 99.4% .............. $33,396,699 47,702,776
===========
OTHER ASSETS AND LIABILITIES
(NET) -- 0.6% ......................... 278,141
--------------
NET ASSETS -- 100.0% .................... $ 47,980,917
==============
- ----------
+ Non-income producing security.
ADR American Depositary Receipt
GDR Global Depositary Receipt
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
- -------------------------- ------ -------------
Europe ................... 65.7% $31,331,994
Japan .................... 13.2 6,321,430
Asia/Pacific ............. 8.5 4,036,118
Latin America ............ 5.5 2,631,572
North America ............ 4.0 1,887,882
South Africa ............. 2.0 946,869
Africa/Middle East ....... 1.1 546,911
----- -----------
100.0% $47,702,776
===== ===========
See accompanying notes to financial statements.
5
GAMCO INTERNATIONAL GROWTH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2008 (UNAUDITED)
ASSETS:
Investments, at value (cost $33,396,699) ................ $ 47,702,776
Foreign currency, at value (cost $ 16,321)............... 16,362
Receivable for investments sold ......................... 372,473
Receivable for Fund shares sold ......................... 68,764
Dividends receivable .................................... 80,914
Prepaid expenses ........................................ 29,476
------------------
TOTAL ASSETS ............................................ 48,270,765
------------------
LIABILITIES:
Payable to custodian .................................... 18,591
Payable for Fund shares redeemed ........................ 120,337
Payable for investment advisory fees .................... 40,752
Payable for distribution fees ........................... 9,906
Payable for audit fees .................................. 28,606
Payable for legal fees .................................. 18,161
Payable for shareholder communications expenses ......... 23,227
Other accrued expenses .................................. 30,268
------------------
TOTAL LIABILITIES ....................................... 289,848
------------------
NET ASSETS applicable TO 2,003,910 shares outstanding ... $ 47,980,917
==================
NET ASSETS CONSIST OF:
Paid-in capital, each class at $0.001 par value ......... $ 31,984,802
Accumulated net investment income ....................... 223,889
Accumulated net realized gain on investments
and foreign currency transactions ..................... 1,466,620
Net unrealized appreciation on investments .............. 14,306,077
Net unrealized depreciation on foreign
currency translations ................................. (471)
------------------
NET ASSETS .............................................. $ 47,980,917
==================
SHARES OF CAPITAL STOCK:
CLASS AAA:
Net Asset Value, offering, and redemption
price per share ($45,938,376 / 1,918,679 shares
outstanding;375,000,000 shares authorized) ............. $ 23.94
==================
CLASS A:
Net Asset Value and redemption price per share
($383,416 / 15,854 shares outstanding;250,000,000 shares
authorized) ........................................... $ 24.18
==================
Maximum offering price per share (NAV / 9425,
based on maximum sales charge of 5.75%
of the offering price) ................................ $ 25.66
==================
CLASS B:
Net Asset Value and offering price per share
($10,765 / 460 shares outstanding;125,000,000 shares
authorized) ........................................... $ 23.40 (a)
==================
CLASS C:
Net Asset Value and offering price per share
($73,142 / 3,202 shares outstanding; 125,000,000 shares
authorized) ........................................... $ 22.84 (a)
==================
CLASS I:
Net Asset Value, offering, and redemption price per
share ($1,575,218 / 65,715 shares outstanding;
125,000,000 shares authorized) ......................... $ 23.97
==================
- --------------
(a) Redemption price varies based on the length of time held.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2008 (UNAUDITED)
INVESTMENT INCOME:
Dividends (net of foreign taxes of $74,012) ............. $ 730,688
Interest ................................................ 1,110
------------------
TOTAL INVESTMENT INCOME ................................. 731,798
------------------
EXPENSES:
Investment advisory fees ................................ 255,983
Distribution fees - Class AAA ........................... 61,753
Distribution fees - Class A ............................. 519
Distribution fees - Class B ............................. 56
Distribution fees - Class C ............................. 401
Legal and audit fees .................................... 38,938
Custodian fees .......................................... 37,098
Shareholder communications expenses ..................... 29,407
Shareholder services fees ............................... 25,737
Accounting fees ......................................... 14,999
Registration expenses ................................... 12,804
Directors' fees ......................................... 5,507
Interest expense ........................................ 4,276
Miscellaneous expenses .................................. 24,120
------------------
TOTAL EXPENSES .......................................... 511,598
Less: Custodian fee credits ............................. (22)
------------------
NET EXPENSES ............................................ 511,576
------------------
NET INVESTMENT INCOME ................................... 220,222
------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain on investments ........................ 1,472,277
Net realized loss on foreign currency transactions ...... (1,993)
------------------
Net realized gain on investments and
foreign currency transactions ......................... 1,470,284
------------------
Net change in unrealized appreciation/
depreciation on investments ........................... (6,563,917)
Net change in unrealized appreciation/
depreciation on foreign currency translations ......... (209)
------------------
Net change in unrealized appreciation/
depreciation on investments and foreign
currency translations ................................. (6,564,126)
------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY ................... (5,093,842)
------------------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS ....................................... $ (4,873,620)
==================
See accompanying notes to financial statements.
6
GAMCO INTERNATIONAL GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED
JUNE 30, 2008 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2007
------------------ -----------------
OPERATIONS:
Net investment income .................................................. $ 220,222 $ 775,653
Net realized gain on investments and foreign currency transactions ..... 1,470,284 7,292,784
Net change in unrealized appreciation/depreciation on
investments and foreign currency translations ......................... (6,564,126) (1,731,429)
------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........ (4,873,620) 6,337,008
------------------ -----------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class AAA ........................................................... -- (738,886)
Class A ............................................................. -- (6,336)
Class B ............................................................. -- --
Class C ............................................................. -- (1,095)
------------------ -----------------
-- (746,317)
------------------ -----------------
Net realized gain on investments
Class AAA ........................................................... -- (1,464,957)
Class A ............................................................. -- (12,184)
Class B ............................................................. -- (317)
Class C ............................................................. -- (2,896)
------------------ -----------------
-- (1,480,354)
------------------ -----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................... -- (2,226,671)
------------------ -----------------
CAPITAL SHARE TRANSACTIONS:
Class AAA ........................................................... (6,010,760) (11,984,744)
Class A ............................................................. (48,220) 119,418
Class B ............................................................. -- (49,216)
Class C ............................................................. (27,118) 57,951
Class I ............................................................. 1,668,722 --
------------------ -----------------
NET DECREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS ............. (4,417,376) (11,856,591)
------------------ -----------------
REDEMPTION FEES ........................................................ 52 614
------------------ -----------------
NET DECREASE IN NET ASSETS ............................................. (9,290,944) (7,745,640)
NET ASSETS:
Beginning of period .................................................... 57,271,861 65,017,501
------------------ -----------------
End of period (including undistributed net investment income of
$223,889 and $3,667 respectively) ..................................... $ 47,980,917 $ 57,271,861
================== =================
See accompanying notes to financial statements.
7
GAMCO INTERNATIONAL GROWTH FUND, INC.
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock outstanding throughout each period:
INCOME FROM INVESTMENT OPERATIONS DISTRIBUTIONS
----------------------------------------- ------------------------------------------
Net
Net Asset Net Realized and Total Net
Period Value, Investment Unrealized from Net Realized
Ended Beginning Income/ Gain/(Loss)on Investment Investment Gain on Total Redemption
December 31 of Period (Loss)(a) Investments Operations Income Investments Distributions Fees(a)
- ----------- ---------- ---------- -------------- ---------- ---------- ----------- ------------- ----------
CLASS AAA
2008(b) $ 26.19 $ 0.10 $ (2.35) $ (2.25) -- -- -- $0.00 (c)
2007 24.57 0.33 2.34 2.67 $ (0.35) $ (0.70) $ (1.05) 0.00 (c)
2006 20.63 0.38 3.99 4.37 (0.43) -- (0.43) 0.00 (c)
2005 18.75 0.09 1.88 1.97 (0.09) -- (0.09) 0.00 (c)
2004 16.10 0.06 2.62 2.68 (0.05) -- (0.05) 0.02
2003 11.79 0.01 4.27 4.28 (0.01) -- (0.01) 0.04
CLASS A
2008(b) $ 26.45 $ 0.11 $ (2.38) $ (2.27) -- -- -- $0.00 (c)
2007 24.82 0.36 2.33 2.69 $ (0.36) $ (0.70) $ (1.06) 0.00 (c)
2006 20.84 0.36 4.05 4.41 (0.43) -- (0.43) 0.00 (c)
2005 18.92 0.11 1.88 1.99 (0.07) -- (0.07) 0.00 (c)
2004 16.28 0.07 2.61 2.68 (0.06) -- (0.06) 0.02
2003 11.91 (0.04) 4.39 4.35 (0.03) -- (0.03) 0.05
CLASS B
2008(b) $ 25.70 $ 0.01 $ (2.31) $ (2.30) -- -- -- $0.00 (c)
2007 24.00 0.13 2.27 2.40 -- $ (0.70) $ (0.70) 0.00 (c)
2006 20.18 0.20 3.89 4.09 $ (0.27) -- (0.27) 0.00 (c)
2005 18.40 (0.06) 1.84 1.78 -- -- -- 0.00 (c)
2004 15.87 (0.04) 2.55 2.51 -- -- -- 0.02
2003 11.70 (0.09) 4.22 4.13 -- -- -- 0.04
CLASS C
2008(b) $ 25.08 $ (0.00)(c) $ (2.24) $ (2.24) -- -- -- $0.00 (c)
2007 23.67 0.27 2.10 2.37 $ (0.26) $ (0.70) $ (0.96) 0.00 (c)
2006 20.00 0.00(c) 4.06 4.06 (0.39) -- (0.39) 0.00 (c)
2005 18.24 (0.18) 1.98 1.80 (0.04) -- (0.04) 0.00 (c)
2004 15.73 (0.07) 2.56 2.49 -- -- -- 0.02
2003 11.70 (0.11) 4.12 4.01 -- -- -- 0.02
CLASS I
2008(e) $ 24.96 $ 0.17 $ (1.16) $ (0.99) -- -- -- $0.00 (c)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
-----------------------------------------------------------------------------
Operating
Net Asset Net Assets Net Expense
Period Value, End of Investment Ratio (Net Portfolio
Ended End of Total Period Income/ Operating of Interest Turnover
December 31 Period Return(+) (in 000's) (Loss) Expenses Expense) Rate(++)
- ----------- ---------- --------- ---------- ---------- --------- ----------- ----------
CLASS AAA
2008(b) $ 23.94 (8.6)% $ 45,938 0.85% (d) 2.00% (d) 1.99% (d) 7%
2007 26.19 10.9 56,678 1.26 1.91 1.87 18
2006 24.57 21.2 64,573 1.70 1.79 1.78 18
2005 20.63 10.5 59,554 0.48 1.89 1.88 19
2004 18.75 16.8 55,427 0.35 1.84 1.84 16
2003 16.10 36.7 42,009 0.07 1.97 1.94 19
CLASS A
2008(b) $ 24.18 (8.6)% $ 384 0.88% (d) 2.00% (d) 1.99% (d) 7%
2007 26.45 10.9 473 1.34 1.91 1.87 18
2006 24.82 21.1 334 1.60 1.79 1.78 18
2005 20.84 10.5 253 0.56 1.89 1.88 19
2004 18.92 16.8 202 0.40 1.84 1.84 16
2003 16.28 36.7 90 (0.29) 1.93 1.90 19
CLASS B
2008(b) $ 23.40 (9.0)% $ 11 0.12% (d) 2.75% (d) 2.74% (d) 7%
2007 25.70 10.0 12 0.51 2.66 2.62 18
2006 24.00 20.2 59 0.91 2.54 2.53 18
2005 20.18 9.7 49 (0.31) 2.63 2.62 19
2004 18.40 15.9 84 (0.23) 2.59 2.59 16
2003 15.87 35.6 22 (0.73) 2.71 2.69 19
CLASS C
2008(b) $ 22.84 (8.9)% $ 73 (0.02)% (d) 2.75% (d) 2.74% (d) 7%
2007 25.08 10.1 109 1.05 2.66 2.62 18
2006 23.67 20.2 52 (0.01) 2.54 2.53 18
2005 20.00 9.9 15 (0.95) 2.62 2.61 19
2004 18.24 16.0 5 (0.40) 2.59 2.59 16
2003 15.73 34.4 5 (0.84) 2.82 2.82 19
CLASS I
2008(e) $ 23.97 (8.5)% $ 1,575 1.45% (d) 1.75% (d) 1.74% (d) 7%
- ----------
+ 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 December 31, 2007, 2006, 2005, 2004, and 2003 would have been as
shown.
(a) Per share amounts have been calculated using the average shares
outstanding method.
(b) For the period ended June 30, 2008, unaudited.
(c) Amount represents less than $0.005 per share.
(d) Annualized.
(e) From the commencement of offering Class I Shares on January 11, 2008
through June 30, 2008, unaudited.
See accompanying notes to financial statements.
8
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION GAMCO. International Growth Fund, Inc. (the "Fund") was
organized on May 25, 1994 as a Maryland corporation. The Fund is a diversified
open-end management investment company registered under the Investment Company
Act of 1940, as amended (the "1940 Act"). The Fund's primary objective is
long-term capital appreciation. The Fund commenced investment operations on June
30,1995.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with United States ("U.S.") generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could differ
from those estimates. The following is a summary of significant accounting
policies followed by the Fund in the preparation of its financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange or traded in the U.S. over-the-counter market for
which market quotations are readily available are valued at the last quoted sale
price or a market's official closing price as of the close of business on the
day the securities are being valued. If there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day. If no bid or asked prices are quoted on such
day, the security is valued at the most recently available price or, if the
Board of Directors (the "Board") so determines, by such other method as the
Board shall determine in good faith to reflect its fair market value. Portfolio
securities traded on more than one national securities exchange or market are
valued according to the broadest and most representative market, as determined
by Gabelli Funds, LLC (the "Adviser").
Portfolio securities primarily traded on a foreign market are generally valued
at the preceding closing values of such securities on the relevant market, but
may be fair valued pursuant to procedures established by the Board if market
conditions change significantly after the close of the foreign market but prior
to the close of business on the day the securities are being valued. Debt
instruments with remaining maturities of 60 days or less that are not credit
impaired are valued at amortized cost, unless the Board determines such amount
does not reflect the securities' fair value, in which case these securities will
be fair valued as determined by the Board. Debt instruments having a maturity
greater than 60 days for which market quotations are readily available are
valued at the average of the latest bid and asked prices. If there were no asked
prices quoted on such day, the security is valued using the closing bid price.
Futures contracts are valued at the closing settlement price of the exchange or
board of trade on which the applicable contract is traded.
Securities and assets for which market quotations are not readily available are
fair valued as determined by the Board. Fair valuation methodologies and
procedures may include, but are not limited to: analysis and review of available
financial and non-financial information about the company; comparisons to the
valuation and changes in valuation of similar securities, including a comparison
of foreign securities to the equivalent U.S. dollar value ADR securities at the
close of the U.S. exchange; and evaluation of any other information that could
be indicative of the value of the security.
On January 1, 2008, the Fund adopted Statement of Financial Accounting Standard
No. 157, "Fair Value Measurements" ("SFAS 157") that clarifies the definition of
fair value for financial reporting, establishes a framework for measuring fair
value, and requires additional disclosures about the use of fair value
measurements. The three levels of the fair value hierarchy under SFAS 157 are
described below:
- Level 1 - quoted prices in active markets for identical securities;
- Level 2 - other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds,
credit risk, etc ); and
9
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- Level 3 - significant unobservable inputs (including the Fund's
determinations as to the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. The
summary of inputs used to value the Fund's net assets as of June 30, 2008 is as
follows:
INVESTMENTS IN
SECURITIES
VALUATION INPUTS (MARKET VALUE)
-------------------
Level 1 - Quoted Prices $ 5,270,185
Level 2 - Other Significant Observable Inputs 42,432,591
-------------------
TOTAL $ 47,702,776
===================
In March 2008, The Financial Accounting Standards Board (The "FASB") issued
Statement of Financial Accounting Standard No. 161, "Disclosures about
Derivative Instruments and Hedging Activities" ("SFAS 161") that 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 on the Fund's financial
statement disclosures.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
primary government securities dealers recognized by the Federal Reserve Board,
with member banks of the Federal Reserve System, or with other brokers or
dealers that meet credit guidelines established by the Adviser and reviewed by
the Board. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
The Fund will always receive and maintain securities as collateral whose market
value, including accrued interest, will be at least equal to 102% of the dollar
amount invested by the Fund in each agreement. The Fund will make payment for
such securities only upon physical delivery or upon evidence of book entry
transfer of the collateral to the account of the custodian. To the extent that
any repurchase transaction exceeds one business day, the value of the collateral
is marked-to-market on a daily basis to maintain the adequacy of the collateral.
If the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited. At June 30,
2008, there were no open repurchase agreements.
FORWARD FOREIGN EXCHANGE CONTRACTS. The Fund may engage in forward foreign
exchange contracts for hedging a specific transaction with respect to either the
currency in which the transaction is denominated or another currency as deemed
appropriate by the Adviser. Forward foreign exchange contracts are valued at the
forward rate and are marked-to-market daily. The change in market value is
included in unrealized appreciation/ depreciation on investments and foreign
currency translations. When the contract is closed, the Fund records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate fluctuations in
the underlying prices of the Fund's portfolio securities, but it does establish
a rate of exchange that can be achieved in the future. Although forward foreign
exchange contracts limit the risk of loss due to a decline in the value of the
hedged currency, they also limit any potential gain that might result should the
value of the currency increase. In addition, the Fund could be
10
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
exposed to risks if the counterparties to the contracts are unable to meet the
terms of their contracts. At June 30, 2008, there were no open forward foreign
exchange contracts.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Fund are maintained
in U.S. dollars. Foreign currencies, investments, and other assets and
liabilities are translated into U.S. dollars at the current exchange rates.
Purchases and sales of investment securities, income, and expenses are
translated at the exchange rate prevailing on the respective dates of such
transactions. Unrealized gains and losses that result from changes in foreign
exchange rates and/or changes in market prices of securities have been included
in unrealized appreciation/depreciation on investments and foreign currency
translations. Net realized foreign currency gains and losses resulting from
changes in exchange rates include foreign currency gains and losses between
trade date and settlement date on investment securities transactions, foreign
currency transactions, and the difference between the amounts of interest and
dividends recorded on the books of the Fund and the amounts actually received.
The portion of foreign currency gains and losses related to fluctuation in
exchange rates between the initial trade date and subsequent sale trade date is
included in realized gain/(loss) on investments.
FOREIGN SECURITIES. The Fund may directly purchase securities of foreign
issuers. Investing in securities of foreign issuers involves special risks not
typically associated with investing in securities of U.S. issuers. The risks
include possible revaluation of currencies, the ability to repatriate funds,
less complete financial information about companies, and possible future adverse
political and economic developments. Moreover, securities of many foreign
issuers and their markets may be less liquid and their prices more volatile than
those of securities of comparable U.S. issuers.
FOREIGN TAXES. The Fund may be subject to foreign taxes on income, gains on
investments, or currency repatriation, a portion of which may be recoverable.
The Fund will accrue such taxes and recoveries as applicable, based upon its
current interpretation of tax rules and regulations that exist in the markets in
which it invests.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined by using the identified cost method Interest income (including
amortization of premium and accretion of discount) is recorded on the accrual
basis. Premiums and discounts on debt securities are amortized using the
effective yield to maturity method. Dividend income is recorded on the
ex-dividend date except for certain dividends which are recorded as soon as the
Fund is informed of the dividend.
DETERMINATION OF NET ASSET VALUE AND CALCULATION OF EXPENSES. Certain
administrative expenses are common to, and allocated among, various affiliated
funds. Such allocations are made on the basis of each Fund's average net assets
or other criteria directly affecting the expenses as determined by the Adviser
pursuant to procedures established by the Board.
In calculating the 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
the custody account, the Fund receives credits which are used to offset
custodian fees. The gross expenses paid under the custody arrangement are
included in custodian fees in the Statement of Operations with the corresponding
expense offset, if any, shown as "custodian fee credits." When cash balances are
overdrawn, the Fund is charged an overdraft fee
11
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
equal to 2.00% above the federal funds rate on outstanding balances. This
amount, if any, would be shown as "interest expense" in the Statement of
Operations.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions to shareholders are recorded on the
ex-dividend date. Distributions to shareholders are based on income and capital
gains as determined in accordance with federal income tax regulations, which may
differ from income and capital gains as determined under U.S. generally accepted
accounting principles. These differences are primarily due to differing
treatments of income and gains on various investment securities and foreign
currency transactions held by the Fund, timing differences, and differing
characterizations of distributions made by the Fund. Distributions from net
investment income include net realized gains on foreign currency transactions.
These book/tax differences are either temporary or permanent in nature. To the
extent these differences are permanent, adjustments are made to the appropriate
capital accounts in the period when the differences arise. These
reclassifications have no impact on the NAV of the Fund.
The tax character of distributions paid during the fiscal year ended December
31, 2007 was as follows:
DISTRIBUTIONS PAID FROM:
Ordinary income ............... $ 746,760
Net long-term capital gains ... 1,479,911
----------
Total distributions paid ...... $2,226,671
==========
PROVISION FOR INCOME TAXES. The Fund intends to continue to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code of
1986, as amended (the "Code"). It is the policy of the Fund to comply with the
requirements of the Code applicable to regulated investment companies and to
distribute substantially all of its net investment company taxable income and
net capital gains. Therefore, no provision for federal income taxes is required.
The following summarizes the tax cost of investments and the related unrealized
appreciation/(depreciation) at June 30, 2008:
GROSS GROSS
UNREALIZED UNREALIZED NET UNREALIZED
COST APPRECIATION DEPRECIATION APPRECIATION
----------- ------------ ------------ --------------
Investments.... $33,396,853 $ 16,578,741 $ (2,272,818) $ 14,305,923
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 the Fund is taxable in
a particular jurisdiction) and required certain expanded tax disclosures.
For the six months ended June 30, 2008, the Fund did not have any liability for
any unrecognized tax benefits. The Fund recognizes interest and penalties, if
any, related to unrecognized tax benefits as income tax expenses in the
Statement of Operations. The Fund is not subject to examination by U.S. federal
tax authorities for tax years before 2004 and by state tax authorities for tax
years before 2003.
3. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS. The Fund has entered
into an investment advisory agreement (the "Advisory Agreement") with the
Adviser which provides that the Fund will pay the Adviser a fee, computed daily
and paid monthly, at the annual rate of 1.00% of the value of its average daily
net assets. In accordance with the Advisory Agreement, the Adviser provides a
continuous investment program for the Fund's portfolio, oversees the
administration of all aspects of the Fund's business and affairs, and pays the
compensation of all Officers and Directors of the Fund who are affiliated
persons of the Adviser.
12
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
If total net assets of the Fund are below $100 million, the Fund pays each
Director who is not considered to be an affiliated person an annual retainer of
$1,000 plus $250 for each Board meeting attended and they are reimbursed for any
out of pocket expenses incurred in attending meetings. If total net assets of
the Fund are in excess of $100 million, the Fund pays each Independent Director
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, and the Chairman
of the Audit Committee and the Lead Director receive a $1,000 annual fee.
Directors who are directors or employees of the Adviser or an affiliated company
receive no compensation or expense reimbursement from the Fund.
4. DISTRIBUTION PLAN. The Fund's Board has adopted a distribution plan (the
"Plan") for each class of shares, except for 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 Fund. Under the Class
AAA, Class A, Class B, and Class C Share Plans, payments are authorized to
Gabelli & Company at annual rates of 0.25%, 0.25%, 1.00%, and 1.00%,
respectively, of the average daily net assets of those classes, the annual
limitations under each Plan. Such payments are accrued daily and paid monthly.
5. PORTFOLIO SECURITIES. Purchases and proceeds from the sales of securities for
the six months ended June 30, 2008, other than short-term securities and U.S.
Government obligations, aggregated $3,749,803 and $8,686,113, respectively.
6. TRANSACTIONS WITH AFFILIATES. During the six months ended June 30, 2008,
Gabelli & Company informed the Fund that it received $331 from investors
representing commissions (sales charges and underwriting fees) on sales and
redemptions of Fund shares.
The cost of calculating the Fund's NAV per share is a Fund expense pursuant to
the Advisory Agreement between the Fund and the Adviser. During the six months
ended June 30, 2008, the Fund paid or accrued $14,999 to the Adviser in
connection with the cost of computing the Fund's NAV.
7. LINE OF CREDIT. The Fund participates in an unsecured line of credit of up to
$75,000,000, and may borrow up to 10% of its net assets from the custodian for
temporary borrowing purposes. Borrowings under this arrangement bear interest at
0.75% above the federal funds rate on outstanding balances. This amount, if any,
would be shown as "interest expense" in the Statement of Operations. At June 30,
2008, borrowings outstanding under the line of credit amounted to $19,000.
The average daily amount of borrowings outstanding under the line of credit
within the six months ended June 30, 2008 was $161,648 with a weighted average
interest rate of 3.47%. The maximum amount borrowed at any time during the six
months ended June 30, 2008 was $1,876,000.
8. CAPITAL STOCK. The Fund offers five classes of shares - Class AAA Shares,
Class A Shares, Class B Shares, Class C Shares, and Class I Shares. Class AAA
Shares and Class I Shares are offered to investors without a front-end sales
charge. Class A Shares are subject to a maximum front-end sales charge of 5.75%.
Class B Shares are subject to a contingent deferred sales charge ("CDSC") upon
redemption within six years of purchase and automatically convert to Class A
Shares approximately eight years after the original purchase. The applicable
CDSC is equal to a declining percentage of the lesser of the NAV per share at
the date of the original purchase or at the date of redemption, based on the
length of time held. Class C Shares are subject to a 1.00% CDSC for one year
after purchase. Class B Shares are available only through exchange of Class B
Shares of other funds distributed by Gabelli & Company. Class I Shares were
first issued on January 11, 2008.
13
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
The 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 Fund. The redemption fees retained
by the Fund during the six months ended June 30, 2008 and the fiscal year ended
December 31, 2007 amounted to $52 and $614, respectively.
The redemption fee does not apply to redemptions of shares where (i) the shares
were purchased through automatic reinvestment of distributions, (ii) the
redemption was initiated by the Fund, (iii) the shares were purchased through
programs that collect the redemption fee at the program level and remit them to
the 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.
Transactions in shares of capital stock were as follows:
SIX MONTHS ENDED
JUNE 30, 2008 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2007
---------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
--------- --------------- ----------- ----------------
CLASS AAA CLASS AAA
---------------------------- -------------------------------
Shares sold ........................................ 72,588 $ 1,789,280 165,211 $ 4,293,115
Shares issued upon reinvestment of distributions ... -- -- 77,246 2,020,742
Shares redeemed .................................... (317,891) (7,800,040) (706,713) (18,298,601)
--------- --------------- ----------- ----------------
Net decrease .................................... (245,303) $ (6,010,760) (464,256) $ (11,984,744)
========= =============== =========== ================
CLASS A CLASS A
---------------------------- -------------------------------
Shares sold ........................................ 5,398 $ 129,024 5,980 $ 159,760
Shares issued upon reinvestment of distributions ... -- -- 434 11,472
Shares redeemed .................................... (7,419) (177,244) (1,997) (51,814)
--------- --------------- ----------- ----------------
Net increase (decrease) ......................... (2,021) $ (48,220) 4,417 $ 119,418
========= =============== =========== ================
CLASS B CLASS B
---------------------------- -------------------------------
Shares issued upon reinvestment of distributions ... -- -- 7 $ 172
Shares redeemed .................................... -- -- (2,001) (49,388)
--------- --------------- ----------- ----------------
Net decrease .................................... -- -- (1,994) $ (49,216)
========= =============== =========== ================
CLASS C CLASS C
---------------------------- -------------------------------
Shares sold ........................................ -- -- 2,128 $ 56,429
Shares issued upon reinvestment of distributions ... -- -- 145 3,638
Shares redeemed .................................... (1,165) $ (27,118) (81) (2,116)
--------- --------------- ----------- ----------------
Net increase (decrease) ......................... (1,165) $ (27,118) 2,192 $ 57,951
========= =============== =========== ================
CLASS I *
----------------------------
Shares sold ........................................ 67,435 $ 1,709,154
Shares issued upon reinvestment of distributions ... -- --
Shares redeemed .................................... (1,720) (40,432)
--------- ---------------
Net increase .................................... 65,715 $ 1,668,722
========= ===============
- ----------
* From the commencement of offering Class I Shares on January 11, 2008.
14
GAMCO INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
9. INDEMNIFICATIONS. The Fund enters into contracts that contain a variety of
indemnifications. The Fund's maximum exposure under these arrangements is
unknown. However, the Fund has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
10. OTHER MATTERS. On April 24, 2008, the Adviser 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 the Adviser 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, the Adviser,
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 the
Adviser or its ability to fulfill its obligations under the Advisory Agreement.
On the same day, the SEC filed a civil action against the Executive Vice
President and Chief Operating Officer 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 Agreement.
On a separate matter, in August 2008, the Adviser made an offer to the staff of
the SEC to settle a previously disclosed matter concerning compliance with
Section 19(a) and Rule 19a-1 of the 1940 Act by two closed-end funds managed by
the Adviser. These provisions require registered investment companies to provide
written statements to shareholders when a distribution is made in the nature of
a dividend from a source other than net investment income. While the two funds
sent annual statements and provided other materials containing this information,
the funds did not send the notices required by Rule 19a-1 to shareholders with
each distribution in 2002 and 2003. The Adviser believes that the funds have
been in compliance with Rule 19a-1 since that time. The Adviser believes that
the settlement would have no effect on the funds or any material adverse effect
on the Adviser or its ability to manage the funds. This offer of settlement is
subject to final agreement regarding the specific language of the SEC's
administrative order and other settlement documents and approval by the SEC.
15
GAMCO INTERNATIONAL GROWTH FUND, INC.
BOARD CONSIDERATION AND RE-APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED)
Section 15(c) of the Investment Company Act of 1940, as amended (the "1940
Act"), contemplates that the Board of Directors (the "Board") of the GAMCO
International Growth Fund, Inc. (the "Fund"), including a majority of the
Directors who have no direct or indirect interest in the investment advisory
agreement and are not "interested persons" of the Fund, as defined in the 1940
Act (the "Independent Board Members"), are required to annually review and
re-approve the terms of the Fund's existing investment advisory agreement and
approve any newly proposed terms therein. In this regard, the Board reviewed and
re-approved, during the most recent six month period covered by this report, the
Investment Advisory Agreement (the "Advisory Agreement") with Gabelli Funds, LLC
(the "Adviser") for the Fund.
More specifically, at a meeting held on February 27, 2008, the Board, including
the Independent Board Members, considered the factors and reached the
conclusions described below relating to the selection of the Adviser and the
re-approval of the Advisory Agreement.
1) THE NATURE, EXTENT, AND QUALITY OF SERVICES PROVIDED BY THE ADVISER.
The Board reviewed in detail the nature and extent of the services provided by
the Adviser under the Agreement and the quality of those services over the past
year. The Board noted that these services included managing the investment
program of the Fund, including the purchase and sale of portfolio securities, as
well as the provision of general corporate services. The Board considered that
the Adviser also provided, at its expense, office facilities for use by the Fund
and supervisory personnel responsible for supervising the performance of
administrative, accounting and related services including, for the Fund, net
asset value determinations, yield calculations, and monitoring to assure
compliance with stated investment policies and restrictions under the 1940 Act
and related securities regulations. The Board noted that, in addition to
managing the investment program for the Fund, the Adviser provided certain
non-advisory and compliance services, including services under the Fund's Rule
38a-1 compliance program.
The Board also considered that the Adviser paid for all compensation of Officers
and Board Members of the Fund that were affiliated with the Adviser and that the
Adviser further provided a substantial level of services to shareholders of the
Fund who had invested through various programs offered by third party financial
intermediaries ("Participating Organizations"). The Board evaluated these
factors based on its direct experience with the Adviser and in consultation with
Fund Counsel. The Board noted that the Adviser had engaged, at its expense, PFPC
Inc. to assist it in performing certain of its administrative functions. The
Board concluded that the nature and extent of the services provided was
reasonable and appropriate in relation to the advisory fee, that the level of
service provided by the Adviser, either directly or through PFPC Inc., had not
diminished over the past year and that the quality of service continued to be
high.
The Board reviewed the personnel responsible for providing services to the Fund
and concluded, based on their experience and interaction with the Adviser, that
(i) the Adviser was able to retain quality personnel, (ii) the Adviser and its
agents exhibited a high level of diligence and attention to detail in carrying
out their advisory and administrative responsibilities under the Agreement,
(iii) the Adviser was responsive to requests of the Board, (iv) the scope and
depth of the Adviser's resources was adequate, and (v) the Adviser had kept the
Board apprised of developments relating to the Fund and the industry in general.
The Board also focused on the Adviser's reputation and long standing
relationship with the Fund. The Board also believed that the Adviser had devoted
substantial resources and made substantial commitments to address new regulatory
compliance requirements applicable to the Fund.
16
2) THE PERFORMANCE OF THE FUND, THE ADVISER.
The Board reviewed the performance of the Fund since inception. The Board
considered the Fund's one, three, five, and ten year average total returns for
the periods ended December 31, 2007, but placed greater emphasis on the Fund's
longer term performance. The Fund's performance against the Performance Peer
Group was considered by the Board as providing an objective comparative
benchmark against which the performance could be assessed. In general, the Board
considered these comparisons helpful in their assessment as to whether the
Adviser was obtaining for the Fund's shareholders the total return performance
that was available in the marketplace, given the Fund's objectives, strategy,
limitations, and restrictions. The Board concluded that the Fund's performance
was reasonable in comparison with that of the Performance Peer Group category.
In connection with its assessment of the performance of the Adviser, the Board
considered the Adviser's financial condition and whether it had the resources
necessary to continue to carry out its functions under the Agreement. The Board
concluded that the Adviser had the financial resources necessary to continue to
perform its obligations under the Agreement and to continue to provide the high
quality services that it has provided to the Fund to date.
3) THE COST OF THE ADVISORY SERVICES AND THE PROFITS TO THE ADVISER AND ITS
AFFILIATES FROM THE RELATIONSHIP WITH THE FUND.
In connection with the Board's consideration of the cost of the advisory
services and the profits to the Adviser and its affiliates from the relationship
with the Fund, the Board considered a number of factors. First, the Board
compared the level of the advisory fee for the Fund against comparative Lipper
expense peer groups ("Expense Peer Group"). The Board also considered
comparative non-management fee expenses and comparative total fund expenses of
the Fund and the Expense Peer Group. The Board considered this information as
useful in assessing whether the Adviser was providing services at a cost that
was competitive with other similar funds. In assessing this information, the
Board considered both the comparative contract rates as well as the level of
advisory fees after waivers and/or reimbursements. The Board noted that the
Fund's advisory fee and expense ratio were slightly higher than average compared
to those of the Expense Peer Group for the Fund.
The Board Members also reviewed the fees charged by the Adviser to provide
similar advisory services to other registered investment companies or accounts
with similar investment objectives, noting that in some cases the fees charged
by the Adviser were higher and in other cases the same or lower, than the fees
charged to the Fund.
The Board also considered an analysis prepared by the Adviser of the estimated
profitability to the Adviser of its relationship with the Fund and reviewed with
the Adviser its cost allocation methodology in connection with its
profitability. In this regard, the Board reviewed Proforma Income Statements of
the Adviser for the year ended December 31, 2007. The Board considered one
analysis for the Adviser as a whole, and a second analysis for the Adviser with
respect to the Fund. With respect to the Fund analysis, the Board received an
analysis based on the Fund's average net assets during the period as well as a
proforma analysis of profitability at higher and lower asset levels. The Board
concluded that the profitability of the Fund to the Adviser under either
analysis was not excessive.
17
4) THE EXTENT TO WHICH ECONOMIES OF SCALE WILL BE REALIZED AS THE FUND GROWS AND
WHETHER FEE LEVELS REFLECT THOSE ECONOMIES OF SCALE.
With respect to the Board's consideration of economies of scale, the Board
discussed whether economies of scale would be realized by the Fund at higher
asset levels. The Board also reviewed data from the Expense Peer Group to assess
whether the Expense Peer Group funds had advisory fee breakpoints and, if so, at
what asset levels. The Board also assessed whether certain of the Adviser's
costs would increase if asset levels rise. In the event there were to be
significant asset growth in the Fund, the Board determined to reassess whether
the advisory fee appropriately took into account any economies of scale that
had been realized as a result of that growth.
5) OTHER FACTORS.
In addition to the above factors, the Board also discussed other benefits
received by the Adviser from their management of the Fund. The Board considered
that the Adviser did not use soft dollars in connection with its management of
the Fund.
Based on a consideration of all these factors in their totality, the Board
Members, including all of the Independent Board Members, determined that the
Fund's advisory fee was fair and reasonable with respect to the quality of
services provided and in light of the other factors described above that the
Board deemed relevant. Accordingly, the Board Members determined to approve the
continuation of the Fund's advisory agreement. The Board based its decision on
evaluations of all these factors as a whole and did not consider any one factor
as all important or controlling.
18
GABELLI/GAMCO 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:
- - 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.
- - 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.
GAMCO INTERNATIONAL GROWTH FUND, INC.
One Corporate Center
Rye, New York 10580-1422
800-GABELLI
800-422-3554
FAX: 914-921-5118
WEBSITE: www.gabelli.com
E-MAIL: info@gabelli.com
Net Asset Value per share available daily by calling
800-GABELLI after 6:00 P.M.
BOARD OF DIRECTORS
Mario J. Gabelli, CFA Werner J. Roeder, MD
CHAIRMAN AND CHIEF MEDICAL DIRECTOR
EXECUTIVE OFFICER LAWRENCE HOSPITAL
GAMCO INVESTORS, INC.
Anthony J. Colavita Anthonie C. van Ekris
ATTORNEY-AT-LAW CHAIRMAN
ANTHONY J. COLAVITA, P.C. BALMAC INTERNATIONAL, INC.
Salvatore J. Zizza
CHAIRMAN
ZIZZA & CO., LTD.
OFFICERS AND PORTFOLIO MANAGER
Caesar Bryan Bruce N. Alpert
PORTFOLIO MANAGER PRESIDENT AND SECRETARY
Peter D. Goldstein Agnes Mullady
CHIEF COMPLIANCE OFFICER TREASURER
DISTRIBUTOR
Gabelli & Company, Inc.
CUSTODIAN, TRANSFER AGENT, AND DIVIDEND AGENT
State Street Bank and Trust Company
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
This report is submitted for the general information of the shareholders of
GAMCO International Growth Fund, Inc. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective prospectus.
GAB009Q208SR
GAMCO
GAMCO INTERNATIONAL GROWTH FUND, INC.
SEMI ANNUAL REPORT
JUNE 30, 2008
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 Directors, 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) GAMCO International Growth Fund, Inc.
------------------------------------------------------------------
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date 9/3/08
----------------------------------------------------------------------------
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 9/3/08
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Agnes Mullady
-------------------------------------------------------
Agnes Mullady,
Principal Financial Officer & Treasurer
Date 9/3/08
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.