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 811-07896

 

GAMCO Global Series Funds, Inc.

(Exact name of registrant as specified in charter)

One Corporate Center

Rye, New York 10580-1422

(Address of principal executive offices) (Zip code)

John C. Ball

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, 2022

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

Item 1. Reports to Stockholders.

 

(a)

The Report to Shareholders is attached herewith.

 

The Gabelli Global Content & Connectivity Fund

Semiannual Report — June 30, 2022

(Y)our Portfolio Management Team

 

	Evan D. Miller, CFA		Sergey Dluzhevskiy, CFA, CPA
	Portfolio Manager		Portfolio Manager
	BA, Northwestern University		BS, Case Western
	MBA, Booth School of Business,		Reserve University
	University of Chicago		MBA, The Wharton School,
			University of Pennsylvania

 

To Our Shareholders,

 

For the six months ended June 30, 2022, the net asset value (NAV) total return per Class AAA Share of The Gabelli Global Content & Connectivity Fund was (23.6)% compared with a total return of (26.7)% for the Morgan Stanley Capital International (MSCI) All Country (AC) World Communication Services Index. Other classes of shares are available. See page 3 for performance information for all classes.

 

Enclosed are the financial statements, including the schedule of investments, as of June 30, 2022.

 

Investment Objective and Strategy (Unaudited)

 

The Fund’s objective is to provide investors with appreciation of capital. Current income is a secondary objective of the Fund.

 

The Fund’s investment strategy is to invest its net assets in common stocks of companies in the telecommunications, media, and information technology industries which Gabelli Funds, LLC, the Adviser, believes are likely to have rapid growth in revenues and earnings and potential for above average capital appreciation or are undervalued. In accordance with its concentration policy, the Fund will invest at least 25% of the value of its total assets in the telecommunications related industry, and not invest more than 25% of the value of its total assets in any other particular industry.

 

As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.gabelli.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. To elect to receive all future reports on paper free of charge, please contact your financial intermediary, or, if you invest directly with the Fund, you may call 800-422-3554 or send an email request to info@gabelli.com.

 

 

Performance Discussion (Unaudited)

 

Global equities declined in the first quarter (with MSCI AC World Index down 5.3%) amid concerns over the economic implications of Russia’s invasion of Ukraine as well as rising inflation and related expectations for faster monetary tightening. With pandemic-related mobility restrictions relaxed globally, the oil supply hasn’t kept up with recovering demand over the past year, leading to rising energy prices, even before the military conflict in Eastern Europe contributed to further spikes in commodities. Thus, it is no surprise that Energy was the top performing sector in 1Q (up 23%), followed by Materials and Utilities, registering modest gains. The Communication Services sector (-10.5%) was one of the laggards in the quarter (along with Information Technology and Consumer Discretionary), with investors repricing risk and re-assessing multiples on high-growth technology and Internet-related names in a rising interest rate environment.

 

Global equities declined in the second quarter (with MSCI AC World Index down 15.6%) amid investor concerns over stubbornly elevated inflation, expectations for more aggressive interest rate hikes, continued geopolitical instability, and increased probability of economic stagnation or even recession. While all industry sectors recorded losses in 2Q, Energy (-5.0%) as well as defensive groups like Consumer Staples (-6.0%) and Utilities (-7.0%) outperformed. Communication Services (-18.1%) finished in the 3rd quartile of sector performance, with valuation declines in Internet-related names within Media & Entertainment (-22.6%), in light of rising interest rates, offsetting relative strength in the defensive Telecom Services (-2.8%).

 

Selected holdings that contributed positively to performance during the six month period ended June 30, 2022, were:

 

T-Mobile US Inc. (9.9% of net assets as of June 30, 2022), together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands; Deutsche Telekom AG Inc. (3.1%), is the incumbent German telecom provider with other operations in the US and central and eastern Europe; and AT&T Inc. (1.3%), which provides telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services.

 

Some of our weaker performing stocks during the period were:

 

Alphabet Inc. (8.6%) is a holding company whose subsidiaries include the core Google business (Search, Android, YouTube, Cloud) as well as multiple independent companies (e.g. Ventures, Waymo, Verily); Meta Platforms Inc. (5.3%), formerly known as Facebook, is an online social networking and social media service with over 2.9 billion monthly active users; and Kinnevik AB-B (1.9%), formerly known as Investment AB Kinnevik, is a venture capital firm specializing in investments in growth capital.

 

Thank you for your investment in The Gabelli Global Content and Connectivity Fund.

 

We appreciate your confidence and trust.

 

The views expressed reflect the opinions of the Fund’s portfolio managers and Gabelli Funds, LLC, the Adviser, as of the date of this report and are subject to change without notice based on changes in market, economic, or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

Comparative Results

 

 

The Gabelli Global Content & Connectivity Fund
Disclosure of Fund Expenses (Unaudited)
For the Six Month Period from January 1, 2022 through June 30, 2022	Expense Table

Summary of Portfolio Holdings (Unaudited)

 

The following table presents portfolio holdings as a percent of net assets as of June 30, 2022:

 

The Gabelli Global Content & Connectivity Fund
Communication Services	75.6%		Real Estate	2.6	%
Information Technology	10.3%		Other Assets and Liabilities (Net)	(0.1	)%
Consumer Discretionary	8.7%			100.0	%
Financials	2.9%

 

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-PORT. 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-PORT 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 800-SEC-0330.

 

Proxy Voting

 

The Fund files Form N-PX with its complete proxy voting record for the twelve months ended June 30, no later than August 31 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.

The Gabelli Global Content & Connectivity Fund

Schedule of Investments — June 30, 2022 (Unaudited)

See accompanying notes to financial statements.

The Gabelli Global Content & Connectivity Fund

Schedule of Investments (Continued) — June 30, 2022 (Unaudited)

See accompanying notes to financial statements.

 

The Gabelli Global Content & Connectivity Fund

 

See accompanying notes to financial statements.

 

The Gabelli Global Content & Connectivity Fund

 

Statement of Changes in Net Assets

		Six Months Ended June 30, 2022 (Unaudited)				Year Ended December 31, 2021
Operations:
Net investment income		$	76,433			$	1,964,619
Net realized gain on investments, forward foreign exchange contracts, and foreign currency transactions			2,682,563				3,381,815
Net change in unrealized appreciation/depreciation on investments and foreign currency translations			(21,136,519	)			(1,008,124	)
Net Increase/(Decrease) in Net Assets Resulting from Operations			(18,377,523	)			4,338,310
Distributions to Shareholders:
Accumulated earnings
Class AAA			—				(4,120,665	)
Class A			—				(26,818	)
Class C			—				(145	)
Class I			—				(859,148	)
Total Distributions to Shareholders			—				(5,006,776	)
Capital Share Transactions:
Class AAA			(2,213,845	)			(1,665,646	)
Class A			(10,086	)			11,185
Class C			—				(47,770	)
Class I			(143,212	)			(291,252	)
Net Decrease in Net Assets from Capital Share Transactions			(2,367,143	)			(1,993,483	)
Redemption Fees			42				—
Net Decrease in Net Assets			(20,744,624	)			(2,661,949	)
Net Assets:
Beginning of year			78,978,642				81,640,591
End of period		$	58,234,018			$	78,978,642

 

See accompanying notes to financial statements.

 

The Gabelli Global Content & Connectivity Fund

Financial Highlights

Selected data for a share of capital stock outstanding throughout each period:

 

					Income (Loss) from Investment Operations												Distributions																										Ratios to Average Net Assets/Supplemental Data
Year Ended December 31		Net Asset Value, Beginning of Year			Net Investment Income (Loss)(a)				Net Realized and Unrealized Gain (Loss) on Investments				Total from Investment Operations				Net Investment Income				Net Realized Gain on Investments				Return of Capital				Total Distributions				Redemption Fees(a)(b)			Net Asset Value, End of Period			Total Return†			Net Assets, End of Period (in 000’s)			Net Investment Income (Loss)		Operating Expenses Before Reimbursement		Operating Expenses Net of Reimbursement		Portfolio Turnover Rate
Class AAA
2022(c)		$	21.86		$	0.02			$	(5.18	)		$	(5.16	)		$	—			$	—			$	—			$	—			$	0.00		$	16.70		(23.60	)%		$	47,733		0.23	%(d)	1.75	%(d)	0.90	%(d)(e)	10	%
2021			22.18			0.56	(f)			0.59				1.15				(0.62	)			(0.85	)			—				(1.47	)			—			21.86		5.17				65,025		2.33	(f)	1.65		0.90	(e)(g)(h)	26
2020			19.64			0.11	(f)			3.11				3.22				(0.46	)			(0.22	)			—				(0.68	)			0.00			22.18		16.42				67,239		0.57	(f)	1.77		0.90	(e)(h)	41
2019			18.08			0.32				2.51				2.83				(0.37	)			(0.90	)			—				(1.27	)			0.00			19.64		15.62				65,024		1.63		1.74		1.69	(e)(h)	14
2018			21.77			0.16				(2.76	)			(2.60	)			(0.15	)			(0.93	)			(0.01	)			(1.09	)			0.00			18.08		(11.89	)			63,196		0.78		1.72		1.72	(h)	19
2017			20.43			0.11				2.63				2.74				(0.14	)			(1.26	)			—				(1.40	)			—			21.77		13.38				81,832		0.48		1.73		1.73	(h)	22
Class A
2022(c)		$	22.07		$	0.02			$	(5.23	)		$	(5.21	)		$	—			$	—			$	—			$	—			$	0.00		$	16.86		(23.61	)%		$	317		0.23	%(d)	1.75	%(d)	0.90	%(d)(e)	10	%
2021			22.38			0.56	(f)			0.60				1.16				(0.62	)			(0.85	)			—				(1.47	)			—			22.07		5.16				428		2.30	(f)	1.65		0.90	(e)(g)(h)	26
2020			19.81			0.11	(f)			3.14				3.25				(0.46	)			(0.22	)			—				(0.68	)			0.00			22.38		16.43				422		0.59	(f)	1.77		0.90	(e)(h)	41
2019			18.23			0.36				2.50				2.86				(0.38	)			(0.90	)			—				(1.28	)			0.00			19.81		15.64				374		1.80		1.74		1.68	(e)(h)	14
2018			21.94			0.16				(2.79	)			(2.63	)			(0.14	)			(0.93	)			(0.01	)			(1.08	)			0.00			18.23		(11.94	)			231		0.76		1.72		1.72	(h)	19
2017			20.58			0.10				2.66				2.76				(0.14	)			(1.26	)			—				(1.40	)			—			21.94		13.39				576		0.43		1.73		1.73	(h)	22
Class C
2022(c)		$	21.24		$	0.02			$	(5.03	)		$	(5.01	)		$	—			$	—			$	—			$	—			$	—		$	16.23		(23.59	)%		$	2		0.23	%(d)	2.50	%(d)	0.90	%(d)(e)	10	%
2021			21.59			0.64	(f)			0.48				1.12				(0.62	)			(0.85	)			—				(1.47	)			—			21.24		5.17				3		2.76	(f)	2.40		0.91	(e)(g)(h)	26
2020			19.13			0.10	(f)			3.04				3.14				(0.46	)			(0.22	)			—				(0.68	)			—			21.59		16.44				49		0.54	(f)	2.52		0.90	(e)(h)	41
2019			17.45			0.04				2.55				3.00				(0.01	)			(0.90	)			—				(0.91	)			0.00			19.13		14.81				84		0.19		2.49		2.45	(e)(h)	14
2018			21.08			0.02				(2.68	)			(2.66	)			(0.03	)			(0.93	)			(0.01	)			(0.97	)			0.00			17.45		(12.56	)			279		0.08		2.47		2.47	(h)	19
2017			19.85			(0.06	)			2.55				2.49				—				(1.26	)			—				(1.26	)			—			21.08		12.53				267		(0.28	)	2.48		2.48	(h)	22
Class I
2022(c)		$	21.79		$	0.02			$	(5.17	)		$	(5.15	)		$	—			$	—			$	—			$	—			$	0.00		$	16.64		(23.63	)%		$	10,182		0.23	%(d)	1.50	%(d)	0.90	%(d)(e)	10	%
2021			22.11			0.55	(f)			0.60				1.15				(0.62	)			(0.85	)			—				(1.47	)			—			21.79		5.18				13,523		2.32	(f)	1.40		0.90	(e)(g)(h)	26
2020			19.58			0.11	(f)			3.10				3.21				(0.46	)			(0.22	)			—				(0.68	)			0.00			22.11		16.42				13,931		0.58	(f)	1.52		0.90	(e)(h)	41
2019			18.03			0.46				2.51				2.97				(0.52	)			(0.90	)			—				(1.42	)			0.00			19.58		16.42				12,495		2.33		1.49		0.99	(e)(h)	14
2018			21.75			0.32				(2.79	)			(2.47	)			(0.31	)			(0.93	)			(0.01	)			(1.25	)			0.00			18.03		(11.27	)			12,394		1.52		1.47		1.00	(e)(h)	19
2017			20.40			0.28				2.62				2.90				(0.29	)			(1.26	)			—				(1.55	)			—			21.75		14.20				14,374		1.26		1.48		1.00	(e)(h)	22

†

Total return represents aggregate total return of a hypothetical investment at the beginning of the year and sold at the end of the period including reinvestment of distributions and does not reflect the applicable sales charges. Total return for a period of less than one year is not annualized.

(a)

Per share amounts have been calculated using the average shares outstanding method. (b) Amount represents less than $0.005 per share.

(c)

For the six months ended June 30, 2022, unaudited. (d) Annualized.

(e)

Under an expense reimbursement agreement with the Adviser, the Adviser reimbursed expenses of $268,709, $589,925, $591,218, and $91,150 for the six months ended June 30, 2022 and the years ended December 31, 2021, 2020 and 2019, and certain Class I expenses to the Fund of $70,600 and $56,231 for the years ended December 31, 2018 and 2017, respectively.

(f)

Includes income resulting from special dividends. Without these dividends, the per share income amounts would have been $0.05 and $0.09 (Class AAA), $0.04 and $0.09 (Class A), $0.15 and $0.08 (Class C), and $0.05 and $0.09 (Class I), and the net investment income ratios would have been 0.20% and 0.45% (Class AAA), 0.18% and 0.47% (Class A), 0.63% and 0.41% (Class C), and 0.20% and 0.46% (Class I) for the years ended December 31, 2021 and 2020, respectively.

(g)

The Fund incurred tax expense for the year ended December 31, 2021. If tax expense had not been incurred, the ratios of operating expenses to average net assets would have been 0.90% for each Class.

(h)

The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For the years ended December 31, 2021, 2020, 2019, 2018, and 2017, there was no impact to the expense ratios.

 

See accompanying notes to financial statements.

 

The Gabelli Global Content & Connectivity Fund

Notes to Financial Statements (Unaudited)

1. Organization. The Gabelli Global Content & Connectivity Fund, a series of the GAMCO Global Series Funds, Inc. (the Corporation), was incorporated on July 16, 1993 in Maryland. The Fund is a non-diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act), and is one of five separately managed portfolios (collectively, the Portfolios) of the Corporation. The Fund commenced investment operations on November 1, 1993.

 

The Fund may invest a high percentage of its assets in specific sectors of the market in order to achieve a potentially greater investment return. As a result, the Fund may be more susceptible to economic, political, and regulatory developments in a particular sector of the market, positive or negative, and may experience increased volatility to the Fund’s NAV and a magnified effect in its total return.

 

2. Significant Accounting Policies. As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (GAAP) that may require the use of management estimates and assumptions in the preparation of its 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.

 

The global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations, regions, and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially impact the value and performance of the Fund, its ability to buy and sell fund investments at appropriate valuations, and its ability to achieve its investment objectives.

 

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 obligations 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. Such debt obligations are valued through prices provided by a pricing service approved by the Board. Certain securities are valued principally using dealer quotations.

 

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 with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S.

 

The Gabelli Global Content & Connectivity Fund

Notes to Financial Statements (Unaudited) (Continued)

dollar value American Depositary Receipt 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.

 

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy 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

●

Level 3 — significant unobservable inputs (including the Board’s determinations as to the fair value of investments).

 

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. 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 the Fund’s investments in securities by inputs used to value the Fund’s investments as of June 30, 2022 is as follows:

 

			Valuation Inputs
			Level 1 Quoted Prices				Level 2 Other Significant Observable Inputs				Level 3 Significant Unobservable Inputs (a)				Total Market Value at 06/30/22
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
Communication Services		$	43,641,441				—			$	370,475			$	44,011,916
Financials			1,716,421				—				6,998				1,723,419
Other Industries (b)			11,977,485				—				—				11,977,485
Total Common Stocks			57,335,347				—				377,473				57,712,820
Closed-End Funds (b)			—			$	29,290				—				29,290
Preferred Stocks (b)			520,641				—				—				520,641
Warrants (b)			830				—				—				830
TOTAL INVESTMENTS IN SECURITIES – ASSETS		$	57,856,818			$	29,290			$	377,473			$	58,263,581

 

(a)	The inputs for these securities are not readily available and are derived based on the judgment of the Adviser according to procedures approved by the Board of Directors.

(b)	Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.

 

The Fund did not have material transfers into or out of Level 3 during the six months ended June 30, 2022.

 

Additional Information to Evaluate Qualitative Information.

 

General. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds are ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external sources are checked by obtaining quotations

The Gabelli Global Content & Connectivity Fund

Notes to Financial Statements (Unaudited) (Continued)

or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

 

Fair Valuation. Fair valued securities may be common or preferred equities, warrants, options, rights, or fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. When fair valuing a security, factors to consider include recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

 

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These may include backtesting the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

 

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 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 purchase 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 inability 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 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.

 

Restricted Securities. The Fund may invest up to 15% of its net assets in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than 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

 

The Gabelli Global Content & Connectivity Fund

Notes to Financial Statements (Unaudited) (Continued)

securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional 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. At June 30, 2022, the Fund did not hold any restricted securities.

 

Investments in Other Investment Companies. The Fund may invest, from time to time, in shares of other investment companies (or entities that would be considered investment companies but are excluded from the definition pursuant to certain exceptions under the 1940 Act) (the Acquired Funds) in accordance with the 1940 Act and related rules. Shareholders in the Fund would bear the pro rata portion of the periodic expenses of the Acquired Funds in addition to the Fund’s expenses. For the six months ended June 30, 2022, the Fund’s pro rata portion of the periodic expenses charged by the Acquired Funds was less than one basis point.

 

Securities Transactions and Investment Income. Securities transactions are accounted for on the trade date with realized gain/(loss) on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on an accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method or amortized to earliest call date, if applicable. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.

 

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.

 

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 GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities and foreign currency transactions, timing differences, and differing characterizations of distributions made by the Fund. Distributions from net investment income for federal income tax purposes 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 Gabelli Global Content & Connectivity Fund

Notes to Financial Statements (Unaudited) (Continued)

The tax character of distributions paid during the year ended December 31, 2021 was as follows:

 

Distributions paid from:
Ordinary income		$	2,108,206
Net long term capital gains			2,898,570
Total distributions paid		$	5,006,776

 

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 net unrealized appreciation at June 30, 2022:

 

			Cost			Gross Unrealized Appreciation			Gross Unrealized Depreciation			Net Unrealized Appreciation
Investments			$48,188,654			$17,327,518			$(7,252,591)			$10,074,927

 

The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. During the six months ended June 30, 2022, the Fund did not incur any income tax, interest, or penalties. As of June 30, 2022, the Adviser has reviewed all open tax years and concluded that there was no impact to the Fund’s net assets or results of operations. The Fund’s federal and state tax returns for the prior three fiscal years remain open, subject to examination. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.

 

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.

 

Effective December 1, 2019, the Adviser amended its contractual agreement with respect to each share class of the Fund to waive its investment advisory fees and/or to reimburse expenses to the extent necessary to maintain the annualized total operating expenses of the Fund (excluding brokerage costs, acquired fund fees and expenses, interest, taxes, and extraordinary expenses) until at least April 30, 2023, at no more than 0.90% of the value of the Fund’s average daily net assets for each share class of the Fund. During the six months ended June 30, 2022, the Adviser reimbursed expenses in the amount of $268,709. In addition, the Fund has agreed, during the two year period following any waiver or reimbursement by the Adviser, to repay such amount to the extent, that after giving effect to the repayment, such adjusted annualized total operating expenses of the Fund would not exceed 0.90% of the value of the Fund’s average daily net assets for each share class of

 

The Gabelli Global Content & Connectivity Fund

Notes to Financial Statements (Unaudited) (Continued)

the Fund. The agreement is renewable annually. At June 30, 2022, the cumulative amount which the Fund may repay the Adviser, subject to the terms above, is $1,449,852:

 

For the year ended December 31, 2020, expiring December 31, 2022		$	591,218
For the year ended December 31, 2021, expiring December 31, 2023			589,925
For the six months ended June 30, 2022, expiring December 31, 2024			268,709
		$	1,449,852

 

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. Under the Class AAA, Class A, and Class C Share Plans, payments are authorized to G.distributors, LLC (the Distributor), an affiliate of the Adviser, at annual rates of 0.25%, 0.25%, 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 sales of securities during the six months ended June 30, 2022, other than short term securities and U.S. Government obligations, aggregated $6,550,042 and $8,798,112, respectively.

 

6. Transactions with Affiliates and Other Arrangements. During the six months ended June 30, 2022, the Fund paid brokerage commissions on security trades of $320 to G.research, LLC, an affiliate of the Adviser.

 

The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement. Under the sub-administration agreement with Bank of New York Mellon, the fees paid include the cost of calculating the Fund’s NAV. The Fund reimburses the Adviser for this service. During the six months ended June 30, 2022, the Fund accrued $22,500 in accounting fees in the Statement of Operations.

 

The Corporation pays retainer and per meeting fees to Directors not affiliated with the Adviser, plus specified amounts to the Lead Director and Audit Committee Chairman. Directors are also reimbursed for out of pocket expenses incurred in attending meetings. Directors who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Corporation.

 

7. Line of Credit. The Fund participates in an unsecured line of credit, which expires on March 1, 2023 and may be renewed annually, of up to $75,000,000 under which it may borrow up to 10% of its net assets from the custodian for temporary borrowing purposes. Borrowings under this arrangement bear interest at a floating rate equal to the higher of the Overnight Federal Funds Rate plus 135 basis points or the Overnight Bank Funding Rate plus 135 basis points in effect on that day. This amount, if any, would be included in “Interest expense” in the Statement of Operations. At June 30, 2022, there was $239,000 outstanding under the line of credit.

 

The average daily amount of borrowings outstanding under the line of credit during the six months ended June 30, 2022 was $176,550 with a weighted average interest rate of 1.90%. The maximum amount borrowed at any time during the six months ended June 30, 2022 was $767,000.

 

8. Capital Stock. The Fund currently offers three classes of shares – Class AAA Shares, Class A Shares, and Class I Shares. Effective January 27, 2020, (the Effective Date) the Fund’s Class AAA, Class A and Class C Shares “closed to purchases from new investors”. “Closed to purchases from new investors” means (i) with respect to the Class AAA and Class A shares, no new investors may purchase shares of such classes, but existing shareholders may continue to purchase additional shares of such classes after the Effective Date, and 

 

The Gabelli Global Content & Connectivity Fund

Notes to Financial Statements (Unaudited) (Continued)

(ii) with respect to Class C Shares, neither new investors nor existing shareholders may purchase any additional shares of such class after the Effective Date. These changes had no effect on existing shareholders’ ability to redeem shares of the Fund as described in the Fund’s Prospectus. Additionally, on the Effective Date Class I shares of the Fund became available to investors with a minimum initial investment amount of $1,000 when purchasing shares directly through the Distributor, or investors purchasing Class I shares through brokers or financial intermediaries that have entered into selling agreements with the Distributor specifically with respect to Class I shares.

 

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 as an increase in paid-in capital. The redemption fees retained by the Fund during the six months ended June 30, 2022 and year ended December 31, 2021, if any, can be found in the Statement of Changes in Net Assets under Redemption Fees.

 

Transactions in shares of capital stock were as follows: 

		Six Months Ended June 30, 2022 (Unaudited)								Year Ended December 31, 2021
		Shares				Amount				Shares				Amount
Class AAA
Shares sold			4,718			$	90,510				11,642			$	276,213
Shares issued upon reinvestment of distributions			—				—				178,982				3,919,699
Shares redeemed			(120,576	)			(2,304,355	)			(247,693	)			(5,861,558	)
Net decrease			(115,858	)		$	(2,213,845	)			(57,069	)		$	(1,665,646	)
Class A
Shares sold			—				—				811			$	19,672
Shares issued upon reinvestment of distributions			—				—				910				20,117
Shares redeemed			(597	)		$	(10,086	)			(1,181	)			(28,604	)
Net increase/(decrease)			(597	)		$	(10,086	)			540			$	11,185
Class C
Shares issued upon reinvestment of distributions			—				—				7			$	149
Shares redeemed			—				—				(2,171	)			(47,919	)
Net decrease			—				—				(2,164	)		$	(47,770	)
Class I
Shares sold			13,533			$	269,317				21,699			$	518,139
Shares issued upon reinvestment of distributions			—				—				35,611				777,037
Shares redeemed			(22,375	)			(412,529	)			(66,670	)			(1,586,428	)
Net decrease			(8,842	)		$	(143,212	)			(9,360	)		$	(291,252	)

 

 

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. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote. 

 

The Gabelli Global Content & Connectivity Fund

Notes to Financial Statements (Unaudited) (Continued)

10. Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements. 

 

THE GABELLI GLOBAL CONTENT & CONNECTIVITY FUND

One Corporate Center

Rye, NY 10580-1422

 

 

Portfolio Management Team Biographies

 

Evan D. Miller, CFA, joined G.research, LLC in 2002 as a research analyst following the telecommunications industry on a global basis. Currently, he continues to specialize in the industry and also serves as a portfolio manager of Gabelli Funds, LLC and the Fund. Prior to joining Gabelli, his career spanned nearly a quarter century in the telecommunications industry with corporate strategy and business development positions. Mr. Miller holds an MBA in Finance from the University of Chicago and a BA in Economics from Northwestern University.

 

Sergey Dluzhevskiy, CFA, CPA, joined G.research, LLC in 2005 as a research analyst covering the North American telecommunications industry. Currently, he continues to specialize in the industry and also serves as a portfolio manager of Gabelli Funds, LLC and the Fund. Prior to joining Gabelli, Mr. Dluzhevskiy was a senior accountant at Deloitte. He received his undergraduate degree from Case Western Reserve University and an MBA at the Wharton School of the University of Pennsylvania.

 

 

The Gabelli Global Growth Fund 

Semiannual Report — June 30, 2022 

(Y)our Portfolio Management Team

 

Caesar M. P. Bryan	Howard F. Ward, CFA
Portfolio Manager	Portfolio Manager

 

To Our Shareholders,

 

For the six months ended June 30, 2022, the net asset value (NAV) total return per Class I Share of The Gabelli Global Growth Fund was (36.1)% compared with a total return of (20.0)% for the Morgan Stanley Capital International (MSCI) All Country (AC) World Index. Other classes of shares are available. See page 3 for performance information for all classes.

 

Enclosed are the financial statements, including the schedule of investments, as of June 30, 2022.

 

 

Investment Objective and Strategy (Unaudited)

 

The Fund’s investment objective is to provide investors with appreciation of capital. Current income is a secondary objective of the Fund.

 

The Fund’s investment strategy is to invest at least 65% of its total assets in common stocks of companies, which the portfolio managers believe are likely to have rapid growth in revenues and earnings and potential for above average capital appreciation or are undervalued. The Global Growth Fund invests primarily in common stocks of foreign and domestic small-capitalization, mid-capitalization, and large-capitalization issuers. As a “global” fund, the Fund invests in securities of issuers, or related investments thereof, located in at least three countries, and at least 40% of the Fund’s total net assets is invested in securities of non-U.S. issuers.

  

As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.gabelli.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. To elect to receive all future reports on paper free of charge, please contact your financial intermediary, or, if you invest directly with the Fund, you may call 800-422-3554 or send an email request to info@gabelli.com.

 

 

Performance Discussion (Unaudited)

 

In the first half of the year we added Block Inc. (0.8% of net assets as of June 30, 2022), a next-generation payments facilitator which provides hardware and software to merchants to help them run their business. Block also operates a leading digital wallet, Cash App, which has 44 million users and is expanding functionality from peer-to-peer payments to a more complete suite of financial services. Block’s recent acquisition of Afterpay, a leading buy-now-pay-later (BNPL) vendor, has the potential to bridge Block’s merchant and consumer businesses, thereby creating one of the few two-sided payment networks at scale.

 

Another addition to the portfolio was Lattice Semiconductor Corp. (1.0%) the dominant player in low-power field programmable gate array (FPGA) semiconductors. FPGAs are designed to be configured by a customer after the manufacturing process. The reprogrammable nature of FPGAs make them especially relevant given the evolving standards of parallel processing. Lattice’s small, power efficient chips are optimized for applications like artificial intelligence inferencing at the edge, factory automation and industrial robotics. Lattice continues to invest in its rich software stack, which drives differentiation and sticky customer relationships. Lattice will soon expand into the mid-range FPGA market, effectively doubling the company’s addressable market.

 

There were no new positions added in the second quarter 2022. We reduced our overweight position in semiconductors by about 2% with the sales of Infineon Technologies and Lam Research.

 

Selected holdings that contributed positively to performance for the six months ended June 30, 2022 were: NextEra Energy Inc. (No longer held as of June 30, 2022), through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America; UnitedHealth Group Inc. (4.1%),operates as a diversified health care company in the United States; and SolarEdge Technologies Inc. (1.6%), together with its subsidiaries, designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations worldwide.

 

Some of our weaker performing holdings during the period were: Microsoft Corp. (6.8%), which develops, licenses, and supports software, services, devices, and solutions worldwide; Amazon Inc. (7.1%), which engages in the retail sale of consumer products and subscriptions in North America and internationally; and Netflix Inc. (1.0%), which provides entertainment services. It offers TV series, documentaries, feature films, and mobile games across various genres and languages.

 

Thank you for your investment in The Gabelli Global Growth Fund.

 

We appreciate your confidence and trust.

 

The views expressed reflect the opinions of the Fund’s portfolio managers and Gabelli Funds, LLC, the Adviser, as of the date of this report and are subject to change without notice based on changes in market, economic, or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

  

 

Comparative Results 

 

 

The Gabelli Global Growth Fund

Disclosure of Fund Expenses (Unaudited)

For the Six Month Period from January 1, 2022 through June 30, 2022

Expense Table

 

 

Summary of Portfolio Holdings (Unaudited)

 

The following table presents portfolio holdings as a percent of net assets as of June 30, 2022:

 

The Gabelli Global Growth Fund

 

Information Technology	45.6%		Consumer Staples	3.2	%
Consumer Discretionary	19.2%		Materials	1.3	%
Health Care	15.8%		U.S. Government Obligations	0.2	%
Communication Services	7.4%		Other Assets and Liabilities (Net)	(0.7)	%
Financials	4.2%			100.0	%
Industrials	3.8%

 

 

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-PORT. 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-PORT 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 800-SEC-0330.

 

Proxy Voting

 

The Fund files Form N-PX with its complete proxy voting record for the twelve months ended June 30, no later than August 31 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.

 

 

 

The Gabelli Global Growth Fund

Schedule of Investments — June 30, 2022 (Unaudited)

 

 

See accompanying notes to financial statements.

 

 

The Gabelli Global Growth Fund

 

 

See accompanying notes to financial statements.

 

 

The Gabelli Global Growth Fund

 

Statement of Changes in Net Assets

		Six Months Ended June 30, 2022 (Unaudited)				Year Ended December 31, 2021
Operations:
Net investment loss		$	(275,230	)		$	(1,061,876	)
Net realized gain on investments and foreign currency transactions			268,759				9,111,947
Net change in unrealized appreciation/depreciation on investments and foreign currency translations			(87,218,362	)			33,554,660
Net Increase/(Decrease) in Net Assets Resulting from Operations			(87,224,833	)			41,604,731
Distributions to Shareholders:
Accumulated earnings
Class AAA			—				(5,108,633	)
Class A			—				(214,057	)
Class C			—				(120,340	)
Class I			—				(4,150,844	)
Total Distributions to Shareholders			—				(9,593,874	)
Capital Share Transactions:
Class AAA			(2,493,276	)			(6,526,433	)
Class A			(422,414	)			(289,185	)
Class C			(492,061	)			(293,511	)
Class I			7,870,159				21,645,828
Net Increase in Net Assets from Capital Share Transactions			4,462,408				14,536,699
Redemption Fees			631				33
Net Increase/(Decrease) in Net Assets			(82,761,794	)			46,547,589
Net Assets:
Beginning of year			239,825,175				193,277,586
End of period		$	157,063,381			$	239,825,175

 

See accompanying notes to financial statements.

 

 

The Gabelli Global Growth Fund

Financial Highlights

Selected data for a share of capital stock outstanding throughout each period:

 

					Income (Loss) from Investment Operations									Distributions																				Ratios to Average Net Assets/Supplemental Data
Year Ended December 31		Net Asset Value, Beginning of Year			Net Investment Income (Loss)(a)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Net Investment Income			Net Realized Gain on Investments			Return of Capital			Total Distributions			Redemption Fees(a)(b)			Net Asset Value, End of Period			Total Return†		Net Assets, End of Period (in 000’s)			Net Investment Income (Loss)		Operating Expenses Before Reimbursement		Operating Expenses Net of Reimbursement			Portfolio Turnover Rate
Class AAA
2022(c)		$	54.68		$	(0.06	)	$	(19.69	)	$	(19.75	)	$	—		$	—		$	—		$	—		$	0.00		$	34.93		(36.12	)%	$	78,487		(0.29	)%(d)	1.52	%(d)	0.90	%(d)(e)(f)(g)		17	%
2021			47.04			(0.25	)		10.19			9.94			(0.02	)		(2.28	)		—			(2.30	)		0.00			54.68		21.10			126,055		(0.49	)	1.50		0.91	(e)(f)		49
2020			35.56			(0.05	)		12.64			12.59			(0.09	)		(1.02	)		—			(1.11	)		0.00			47.04		35.43			115,210		(0.14	)	1.57		0.90	(f)		50
2019			29.94			(0.07	)		9.29			9.22			—			(3.60	)		—			(3.60	)		0.00			35.56		30.73			88,287		(0.21	)	1.63		1.22	(f)		78
2018			33.42			(0.05	)		(0.91	)		(0.96	)		—			(2.52	)		—			(2.52	)		0.00			29.94		(2.80	)		71,877		(0.14	)	1.68		1.42	(f)(g)		58
2017			26.72			(0.13	)		7.89			7.76			—			(1.05	)		(0.01	)		(1.06	)		0.00			33.42		29.02			77,829		(0.42	)	1.67		1.67	(g)		43
Class A
2022(c)		$	54.64		$	(0.06	)	$	(19.68	)	$	(19.74	)	$	—		$	—		$	—		$	—		$	0.00		$	34.90		(36.13	)%	$	3,005		(0.30	)%(d)	1.52	%(d)	0.90	%(d)(e)(f)(g)		17	%
2021			47.01			(0.25	)		10.18			9.93			(0.02	)		(2.28	)		—			(2.30	)		0.00			54.64		21.09			5,252		(0.49	)	1.50		0.91	(e)(f)		49
2020			35.55			(0.05	)		12.62			12.57			(0.09	)		(1.02	)		—			(1.11	)		0.00			47.01		35.38			4,804		(0.12	)	1.57		0.90	(f)		50
2019			29.93			(0.08	)		9.30			9.22			—			(3.60	)		—			(3.60	)		0.00			35.55		30.74			5,332		(0.21	)	1.63		1.22	(f)		78
2018			33.41			(0.05	)		(0.91	)		(0.96	)		—			(2.52	)		—			(2.52	)		0.00			29.93		(2.80	)		3,861		(0.14	)	1.68		1.41	(f)(g)		58
2017			26.72			(0.13	)		7.88			7.75			—			(1.05	)		(0.01	)		(1.06	)		0.00			33.41		28.98			3,652		(0.43	)	1.67		1.67	(g)		43
Class C
2022(c)		$	44.09		$	(0.05	)	$	(15.87	)	$	(15.92	)	$	—		$	—		$	—		$	—		$	0.00		$	28.17		(36.11	)%	$	1,145		(0.31	)%(d)	2.27	%(d)	0.90	%(d)(e)(f)(g)		17	%
2021			38.30			(0.21	)		8.30			8.09			(0.02	)		(2.28	)		—			(2.30	)		0.00			44.09		21.08			2,411		(0.49	)	2.25		0.91	(e)(f)		49
2020			29.11			(0.04	)		10.34			10.30			(0.09	)		(1.02	)		—			(1.11	)		0.00			38.30		35.41			2,376		(0.12	)	2.32		0.90	(f)		50
2019			25.18			(0.25	)		7.78			7.53			—			(3.60	)		—			(3.60	)		0.00			29.11		29.82			2,598		(0.84	)	2.38		1.87	(f)		78
2018			28.73			(0.28	)		(0.75	)		(1.03	)		—			(2.52	)		—			(2.52	)		0.00			25.18		(3.50	)		1,561		(0.93	)	2.43		2.15	(f)(g)		58
2017			23.26			(0.32	)		6.85			6.53			—			(1.05	)		(0.01	)		(1.06	)		0.00			28.73		28.04			1,479		(1.19	)	2.42		2.42	(g)		43
Class I
2022(c)		$	56.12		$	(0.06	)	$	(20.21	)	$	(20.27	)	$	—		$	—		$	—		$	—		$	0.00		$	35.85		(36.12	)%	$	74,426		(0.29	)%(d)	1.27	%(d)	0.90	%(d)(e)(f)(g)		17	%
2021			48.23			(0.26	)		10.45			10.19			(0.02	)		(2.28	)		—			(2.30	)		0.00			56.12		21.10			106,107		(0.50	)	1.25		0.91	(e)(f)		49
2020			36.45			(0.08	)		12.97			12.89			(0.09	)		(1.02	)		—			(1.11	)		0.00			48.23		35.39			70,888		(0.18	)	1.32		0.90	(f)		50
2019			30.55			0.01			9.49			9.50			—			(3.60	)		—			(3.60	)		0.00			36.45		31.03			16,566		0.03		1.38		0.99	(f)		78
2018			33.90			0.09			(0.92	)		(0.83	)		—			(2.52	)		—			(2.52	)		0.00			30.55		(2.37	)		8,272		0.26		1.43		1.00	(f)(g)		58
2017			26.92			0.07			7.97			8.04			—			(1.05	)		(0.01	)		(1.06	)		0.00			33.90		29.84			5,667		0.24		1.42		1.00	(f)(g)		43

 

†

Total return represents aggregate total return of a hypothetical investment at the beginning of the year and sold at the end of the period including reinvestment of distributions and does not reflect the applicable sales charges. Total return for a period of less than one year is not annualized.

(a)

Per share amounts have been calculated using the average shares outstanding method.

(b)

Amount represents less than $0.005 per share.

(c)

For the six months ended June 30, 2022, unaudited.

(d)

Annualized.

(e)

The Fund incurred tax expense for the six months ended June 30, 2022 and the year ended December 31, 2021. For the six months ended June 30, 2022, the effect was minimal. For the year ended December 31, 2021, if tax expense had not been incurred, the ratios of operating expenses to average net assets would have been 0.90% for each Class.

(f)

Under an expense reimbursement agreement with the Adviser, the Adviser reimbursed expenses of $479,847, $1,048,506, $876,253, $412,641, and $261,050 for the six months ended June 30, 2022 and the years ended December 31, 2021, 2020, 2019, and 2018 and certain Class I expenses to the Fund of $19,466 for the year ended December 31, 2017.

(g)

The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For the six months ended June 30, 2022 and the years ended December 31, 2018 and 2017, there was no impact to the expense ratios.

 

See accompanying notes to financial statements.

 

 

The Gabelli Global Growth Fund

Notes to Financial Statements (Unaudited)

1. Organization. The Gabelli Global Growth Fund, a series of the GAMCO Global Series Funds, Inc. (the Corporation), was incorporated on July 16, 1993 in Maryland. The Fund is a non-diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act), and is one of five separately managed portfolios (collectively, the Portfolios) of the Corporation. The Fund’s primary objective is capital appreciation. The Fund commenced investment operations on February 7, 1994.

 

2. Significant Accounting Policies. As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (GAAP) that may require the use of management estimates and assumptions in the preparation of its 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.

 

The global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations, regions, and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially impact the value and performance of the Fund, its ability to buy and sell fund investments at appropriate valuations, and its ability to achieve its investment objectives.

 

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 obligations 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. Such debt obligations are valued through prices provided by a pricing service approved by the Board. Certain securities are valued principally using dealer quotations.

 

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 with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S. dollar value American Depositary Receipt 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.

 

The Fund employs a fair value model to adjust prices to reflect events affecting the values of certain portfolio securities which occur between the close of trading on the principal market for such securities (foreign exchanges

The Gabelli Global Growth Fund

Notes to Financial Statements (Unaudited) (Continued)

and over-the-counter markets) at the time when net asset values of the Fund are determined. If the Fund’s valuation committee believes that a particular event would materially affect net asset value, further adjustment is considered. Such securities are classified as Level 2 in the fair value hierarchy presented below.

 

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy 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

●

Level 3 — significant unobservable inputs (including the Board’s determinations as to the fair value of investments).

 

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. 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 the Fund’s investments in securities by inputs used to value the Fund’s investments as of June 30, 2022 is as follows:

 

		Valuation Inputs
		Level 1 Quoted Prices				Level 2 Other Significant Observable Inputs				Total Market Value at 06/30/22
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks (a)		$	157,845,916				—			$	157,845,916
U.S. Government Obligations			—			$	329,025				329,025
TOTAL INVESTMENTS IN SECURITIES – ASSETS		$	157,845,916			$	329,025			$	158,174,941

 

 

(a)

Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.

 

The Fund held no level 3 investments at June 30, 2022 and December 31, 2021.

 

Additional Information to Evaluate Qualitative Information.

 

General. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds are ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

 

Fair Valuation. Fair valued securities may be common or preferred equities, warrants, options, rights, or fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. When fair valuing a security, factors to consider include recent prices of comparable

The Gabelli Global Growth Fund

Notes to Financial Statements (Unaudited) (Continued)

securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

 

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These may include backtesting the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

 

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 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 purchase 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 inability 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 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/(loss) on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on an accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method or amortized to earliest call date, if applicable. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.

 

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.

The Gabelli Global Growth Fund

Notes to Financial Statements (Unaudited) (Continued)

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.

 

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 GAAP. 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 for federal income tax purposes 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 year ended December 31, 2021 was as follows:

 

Distributions paid from:
Ordinary income		$	83,575
Net long term capital gains			9,510,299
Total distributions paid		$	9,593,874

 

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 net unrealized appreciation at June 30, 2022:

 

		Cost			Gross Unrealized Appreciation			Gross Unrealized Depreciation			Net Unrealized Appreciation
Investments		$129,461,033			$43,303,218			$(14,589,310)			$28,713,908

 

The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. During the six months ended June 30, 2022, the Fund incurred an excise tax expense of $1,003. As of June 30, 2022, the Adviser has reviewed all open tax years and concluded that there was no impact to the Fund’s net assets or results of operations. The Fund’s federal and state tax returns for the prior three fiscal years remain open, subject to examination. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.

The Gabelli Global Growth Fund

Notes to Financial Statements (Unaudited) (Continued)

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.

 

Effective December 1, 2019, the Adviser amended its contractual agreement with respect to each share class of the Fund to waive its investment advisory fees and/or to reimburse expenses to the extent necessary to maintain the annualized total operating expenses of the Fund (excluding brokerage costs, acquired fund fees and expenses, interest, taxes, and extraordinary expenses) until at least April 30, 2023, at no more than 0.90% of the value of the Fund’s average daily net assets for each share class of the Fund. During the six months ended June 30, 2022, the Adviser reimbursed the Fund in the amount of $479,847. In addition, the Fund has agreed, during the two year period following any waiver or reimbursement by the Adviser, to repay such amount to the extent, that after giving effect to the repayment, such adjusted annualized total operating expenses of the Fund would not exceed 0.91% of the value of the Fund’s average daily net assets for each share class of the Fund. The agreement is renewable annually. At June 30, 2022, the cumulative amount which the Fund may repay the Adviser, subject to the terms above, is $2,404,606:

 

For the year ended December 31, 2020, expiring December 31, 2022		$	876,253
For the year ended December 31, 2021, expiring December 31, 2023			1,048,506
For the six months ended June 30, 2022, expiring December 31, 2024			479,847
		$	2,404,606

 

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. Under the Class AAA, Class A, and Class C Share Plans, payments are authorized to G.distributors, LLC (the Distributor), an affiliate of the Adviser, at annual rates of 0.25%, 0.25%, 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 sales of securities during the six months ended June 30, 2022, other than short term securities and U.S. Government obligations, aggregated $38,806,358 and $32,146,740, respectively.

 

6. Transactions with Affiliates and Other Arrangements. During the six months ended June 30, 2022, the Distributor retained a total of $462 from investors representing commissions (sales charges and underwriting fees) on sales and redemptions of Fund shares.

 

The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. The amount of such expenses paid through this directed brokerage arrangement during this period was $366.

 

The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement. Under the sub-administration agreement with Bank of New York Mellon, the fees paid include the cost of calculating the Fund’s NAV. The Fund reimburses the Adviser for this service. During the six months ended June 30, 2022, the Fund accrued $22,500 in accounting fees in the Statement of Operations.

The Gabelli Global Growth Fund

Notes to Financial Statements (Unaudited) (Continued)

The Corporation pays retainer and per meeting fees to Directors not affiliated with the Adviser, plus specified amounts to the Lead Director and Audit Committee Chairman. Directors are also reimbursed for out of pocket expenses incurred in attending meetings. Directors who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Corporation.

 

7. Line of Credit. The Fund participates in an unsecured line of credit, which expires on March 1, 2023 and may be renewed annually, of up to $75,000,000 under which it may borrow up to 10% of its net assets from the custodian for temporary borrowing purposes. Borrowings under this arrangement bear interest at a floating rate equal to the higher of the Overnight Federal Funds Rate plus 135 basis points or the Overnight Bank Funding Rate plus 135 basis points in effect on that day. This amount, if any, would be included in “Interest expense” in the Statement of Operations. At June 30, 2022, there were no borrowings outstanding under the line of credit.

 

The average daily amount of borrowings outstanding under the line of credit for the sixteen days of borrowings during the six months ended June 30, 2022 was $290,625 with a weighted average interest rate of 1.80%. The maximum amount borrowed at any time during the six months ended June 30, 2022 was $586,000.

 

8. Capital Stock. The Fund currently offers three classes of shares – Class AAA Shares, Class A Shares, and Class I Shares. Effective January 27, 2020, (the Effective Date) the Fund’s Class AAA, Class A and Class C Shares “closed to purchases from new investors”. “Closed to purchases from new investors” means (i) with respect to the Class AAA and Class A shares, no new investors may purchase shares of such classes, but existing shareholders may continue to purchase additional shares of such classes after the Effective Date, and (ii) with respect to Class C Shares, neither new investors nor existing shareholders may purchase any additional shares of such class after the Effective Date. These changes had no effect on existing shareholders’ ability to redeem shares of the Fund as described in the Fund’s Prospectus. Additionally, on the Effective Date Class I shares of the Fund became available to investors with a minimum initial investment amount of $1,000 when purchasing shares directly through the Distributor, or investors purchasing Class I shares through brokers or financial intermediaries that have entered into selling agreements with the Distributor specifically with respect to Class I shares.

 

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 as an increase in paid-in capital. The redemption fees retained by the Fund during the six months ended June 30, 2022 and the year ended December 31, 2021, if any, can be found in the Statement of Changes in Net Assets under Redemption Fees.

The Gabelli Global Growth Fund

Notes to Financial Statements (Unaudited) (Continued)

Transactions in shares of capital stock were as follows:

 

		Six Months Ended June 30, 2022 (Unaudited)								Year Ended December 31, 2021
		Shares				Amount				Shares				Amount
Class AAA
Shares sold			15,426			$	691,571				28,040			$	1,478,100
Shares issued upon reinvestment of distributions			9				433				89,559				4,927,528
Shares redeemed			(73,848	)			(3,185,280	)			(261,404	)			(12,932,061	)
Net decrease			(58,413	)		$	(2,493,276	)			(143,805	)		$	(6,526,433	)
Class A
Shares sold			8,409			$	361,528				4,244			$	225,295
Shares issued upon reinvestment of distributions			—				—				3,711				204,046
Shares redeemed			(18,421	)			(783,942	)			(14,017	)			(718,526	)
Net decrease			(10,012	)		$	(422,414	)			(6,062	)		$	(289,185	)
Class C
Shares issued upon reinvestment of distributions			—				—				2,712			$	120,340
Shares redeemed			(14,042	)		$	(492,061	)			(10,083	)			(413,851	)
Net decrease			(14,042	)		$	(492,061	)			(7,371	)		$	(293,511	)
Class I
Shares sold			594,597			$	25,105,700				788,919			$	40,872,080
Shares issued upon reinvestment of distributions			—				—				73,260				4,137,005
Shares redeemed			(409,309	)			(17,235,541	)			(441,098	)			(23,363,257	)
Net increase			185,288			$	7,870,159				421,081			$	21,645,828

 

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. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

 

10. Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

THE GABELLI GLOBAL GROWTH FUND
One Corporate Center
Rye, NY 10580-1422

 

 

  

Portfolio Management Team Biographies

 

Caesar M. P. Bryan joined GAMCO Asset Management in 1994. He is a member of the global investment team of Gabelli Funds, LLC and portfolio manager of several funds within the Fund Complex. Prior to joining Gabelli, Mr. Bryan was a portfolio manager at Lexington Management. He began his investment career at Samuel Montagu Company, the London based merchant bank. Mr. Bryan graduated from the University of Southampton in England with a Bachelor of Law and is a member of the English Bar.

 

Howard F. Ward, CFA, joined Gabelli Funds in 1995 and currently serves as GAMCO’s Chief Investment Officer of Growth Equities as well as a Gabelli Funds, LLC portfolio manager for several funds within the Fund Complex. Prior to joining Gabelli, Mr. Ward served as Managing Director and Lead Portfolio Manager for several Scudder mutual funds. He also was an Investment Officer in the Institutional Investment Department with Brown Brothers, Harriman & Co. Mr. Ward received his BA in Economics from Northwestern University.

 

 

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The Gabelli Global Rising Income and Dividend Fund

Semiannual Report — June 30, 2022

 

To Our Shareholders,

 

For the six months ended June 30, 2022, the net asset value (NAV) total return per Class AAA Share of The Gabelli Global Rising Income and Dividend Fund was (20.3)% compared with a total return of (20.3)% for the Morgan Stanley Capital International (MSCI) World Index. Other classes of shares are available. See page 3 for performance information for all classes.

 

Enclosed are the financial statements, including the schedule of investments, as of June 30, 2022.

 

Investment Objective and Strategy (Unaudited)

 

The Fund’s investment objective is to provide investors with a high level of total return through a combination of current income and appreciation of capital.

 

The Fund’s investment strategy is to invest 80% of its net assets in dividend-paying securities (such as common and preferred stock) or other income producing securities (such as fixed-income securities and securities that are convertible into common stock). The Fund will primarily invest in common stocks of foreign and domestic issuers that the Fund’s portfolio manager believes are likely to pay dividends and income and have the potential for above average capital appreciation and dividend increases.

 

Performance Discussion (Unaudited)

 

Inflation continues to be a significant problem all across the globe, especially energy prices in Europe and the US. However, it is not just energy prices. Inflation has taken hold of food prices and across the entire economy. As some may remember, in 2021, the Federal Reserve said inflation was “transitory.” Now almost nobody believes inflation is “transitory,” including the Federal Reserve. The Fed is now starting to take aggressive steps to raise short term interest rates and reduce the size of the Federal Reserve’s balance sheet to fight inflation. At the end of the second quarter, the Fed Fund Target Rate was 1.75%, up from 0.25% at the end of last year. Expectations are that the Fed will raise rates above 3% before the end of this year.

 

All major European, Asian, and North American stock indices were down for the first half of the year. In the United States, all sectors in the S&P 500 were down in the first half, except for energy, which was up by about 32% due to the large spike in oil and gas prices during the first quarter. The worst performing sector for the first half of the year was Discretionary, which was down by about 33%.

 

As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.gabelli.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. To elect to receive all future reports on paper free of charge, please contact your financial intermediary, or, if you invest directly with the Fund, you may call 800-422-3554 or send an email request to info@gabelli.com.

 

Selected holdings that contributed positively to performance for the six months ended June 30, 2022 were: Swedish Match (1.7% of net assets as of June 30, 2022), which develops, manufactures, markets, and sells snus and moist snuff, lights, and other tobacco products in Scandinavia, the United States, and internationally. In May, Philip Morris International made an all-cash offer to buy the company for a 39% premium to where the stock was trading before market speculation about a buyout started; T-Mobile (2.0%), together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands; and Bristol-Meyers Squibb Co. (0.6%), discovers, develops, licenses, manufactures, and markets biopharmaceutical products worldwide.

 

Some of our weaker performing holdings during the period were: Herc Holdings Inc. (1.7%), the equipment rental company; Sony (7.9%), the large Japanese conglomerate that designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets in Japan, the United States, Europe, China, the Asia-Pacific, and internationally; and CNH Industrial NV (3.2%) which designs, produces, markets, sells, and finances agricultural and construction equipment, trucks, commercial vehicles, buses, and specialty vehicles in North America, Europe, South America, and internationally.

 

Thank you for your investment in the Gabelli Global Rising Income and Dividend Fund.

 

We appreciate your confidence and trust.

 

The views expressed reflect the opinions of the Fund’s portfolio manager and Gabelli Funds, LLC, the Adviser, as of the date of this report and are subject to change without notice based on changes in market, economic, or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

Comparative Results

 

 

 

 

The Gabelli Global Rising Income and Dividend Fund
Disclosure of Fund Expenses (Unaudited)
For the Six Month Period from January 1, 2022 through June 30, 2022	Expense Table

Summary of Portfolio Holdings (Unaudited)

 

The following table present portfolio holdings as a percent of net assets as of June 30, 2022:

 

The Gabelli Global Rising Income and Dividend Fund

Food and Beverage	19.1%		Automotive: Parts and Accessories	2.3	%
Financial Services	9.7%		Aerospace and Defense	1.9	%
Consumer Products	9.6%		Equipment and Supplies	1.8	%
Electronics	7.9%		Building and Construction	1.6	%
Diversified Industrial	7.2%		Energy and Energy Services	1.5	%
Energy and Utilities	4.8%		Hotels and Gaming	1.3	%
Health Care	3.9%		Business Services	1.3	%
Telecommunications	3.7%		Broadcasting	1.1	%
Machinery	3.7%		Specialty Chemicals	1.1	%
Wireless Telecommunications	3.7%		Computer Software and Services	0.8	%
Cable and Satellite	2.7%		Retail	0.8	%
Consumer Services	2.7%		Publishing	0.6	%
Entertainment	2.6%		Other Assets and Liabilities (Net)	0.3	%
Automotive	2.3%			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-PORT. 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-PORT 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 800-SEC-0330.

 

Proxy Voting

 

The Fund files Form N-PX with its complete proxy voting record for the twelve months ended June 30, no later than August 31 of each year. A description of the Fund’s proxy voting policies, procedures, and how each 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.

The Gabelli Global Rising Income and Dividend Fund

Schedule of Investments — June 30, 2022 (Unaudited)

See accompanying notes to financial statements.

 

The Gabelli Global Rising Income and Dividend Fund

Schedule of Investments (Continued) — June 30, 2022 (Unaudited)

See accompanying notes to financial statements.

 

The Gabelli Global Rising Income and Dividend Fund

Schedule of Investments (Continued) — June 30, 2022 (Unaudited)

See accompanying notes to financial statements.

 

The Gabelli Global Rising Income and Dividend Fund

 

See accompanying notes to financial statements.

The Gabelli Global Rising Income and Dividend Fund

 

Statement of Changes in Net Assets

 

		Six Months Ended June 30, 2022 (Unaudited)				Year Ended December 31, 2021
Operations:
Net investment income		$	346,890			$	735,635
Net realized gain on investments and foreign currency transactions			330,281				1,622,919
Net change in unrealized appreciation/depreciation on investments and foreign currency translations			(14,256,436	)			9,476,180
Net Increase/(Decrease) in Net Assets Resulting from Operations			(13,579,265	)			11,834,734
Distributions to Shareholders:
Accumulated earnings
Class AAA			—				(76,054	)
Class A			—				(18,118	)
Class C			—				(12,152	)
Class I			—				(971,534	)
Total Distributions to Shareholders			—				(1,077,858	)
Capital Share Transactions:
Class AAA			(48,853	)			(1,147,427	)
Class A			(143,409	)			159,151
Class C			(92,765	)			(469,865	)
Class I			(4,870,888	)			4,996,888
Net Increase/(Decrease) in Net Assets from Capital Share Transactions			(5,155,915	)			3,538,747
Redemption Fees			—				8
Net Increase/(Decrease) in Net Assets			(18,735,180	)			14,295,631
Net Assets:
Beginning of year			69,494,278				55,198,647
End of period		$	50,759,098			$	69,494,278

 

See accompanying notes to financial statements.

 

The Gabelli Global Rising Income and Dividend Fund

Financial Highlights

Selected data for a share of beneficial interest outstanding throughout each period: 

					Income (Loss) from Investment Operations												Distributions																									Ratios to Average Net Assets/Supplemental Data
Year Ended December 31		Net Asset Value, Beginning of Year			Net Investment Income (Loss)(a)				Net Realized and Unrealized Gain (Loss) on Investments				Total from Investment Operations				Net Investment Income				Net Realized Gain on Investments				Return of Capital				Total Distributions				Redemption Fees(a)(b)			Net Asset Value, End of Period			Total Return†			Net Assets, End of Period (in 000’s)			Net Investment Income (Loss)		Operating Expenses Before Reimbursement		Operating Expenses Net of Reimbursement(c)(d)		Portfolio Turnover Rate
Class AAA
2022(e)		$	34.68		$	0.18			$	(7.22	)		$	(7.04	)		$	—			$	—			$	—			$	—			$	—		$	27.64		(20.30	)%		$	3,874		1.18	%(f)	1.63	%(f)	0.90	%(f)(g)	3	%
2021			29.04			0.39	(h)			5.79				6.18				(0.17	)			(0.37	)			—				(0.54	)			0.00			34.68		21.32				4,914		1.21	(h)	1.62		0.90	(g)	10
2020			26.18			0.19				2.87				3.06				(0.20	)			—				—				(0.20	)			0.00			29.04		11.68				5,157		0.79		1.72		0.90	(g)	8
2019			23.00			0.08	(h)			3.22				3.30				(0.08	)			(0.04	)			—				(0.12	)			0.00			26.18		14.38				6,194		0.34	(h)	1.70		1.65	(g)	5
2018			27.20			0.16				(3.98	)			(3.82	)			(0.20	)			(0.18	)			—				(0.38	)			—			23.00		(14.02	)			4,929		0.60		1.67		1.67		20
2017			22.80			0.03				4.74				4.77				(0.07	)			(0.28	)			(0.02	)			(0.37	)			0.00			27.20		20.91				7,672		0.12		1.62		1.62		24
Class A
2022(e)		$	34.75		$	0.18			$	(7.23	)		$	(7.05	)		$	—			$	—			$	—			$	—			$	—		$	27.70		(20.29	)%		$	807		1.12	%(f)	1.63	%(f)	0.90	%(f)(g)	3	%
2021			29.10			0.39	(h)			5.80				6.19				(0.17	)			(0.37	)			—				(0.54	)			0.00			34.75		21.31				1,169		1.19	(h)	1.62		0.90	(g)	10
2020			26.23			0.18				2.89				3.07				(0.20	)			—				—				(0.20	)			0.00			29.10		11.69				840		0.76		1.72		0.90	(g)	8
2019			23.04			0.09	(h)			3.21				3.30				(0.07	)			(0.04	)			—				(0.11	)			0.00			26.23		14.35				1,441		0.35	(h)	1.70		1.66	(g)	5
2018			27.26			0.16				(3.99	)			(3.83	)			(0.21	)			(0.18	)			—				(0.39	)			—			23.04		(14.01	)			1,465		0.61		1.67		1.67		20
2017			22.86			0.05				4.74				4.79				(0.09	)			(0.28	)			(0.02	)			(0.39	)			0.00			27.26		20.93				1,178		0.18		1.62		1.62		24
Class C
2022(e)		$	28.93		$	0.15			$	(6.02	)		$	(5.87	)		$	—			$	—			$	—			$	—			$	—		$	23.06		(20.29	)%		$	438		1.13	%(f)	2.38	%(f)	0.90	%(f)(g)	3	%
2021			24.30			0.34	(h)			4.83				5.17				(0.17	)			(0.37	)			—				(0.54	)			0.00			28.93		21.32				654		1.23	(h)	2.38		0.90	(g)	10
2020			21.94			0.15				2.41				2.56				(0.20	)			—				—				(0.20	)			0.00			24.30		11.65				968		0.74		2.47		0.90	(g)	8
2019			19.35			(0.09	)(h)			2.72				2.63				—				(0.04	)			—				(0.04	)			0.00			21.94		13.61				1,836		(0.43	)(h)	2.45		2.37	(g)	5
2018			22.93			(0.02	)			(3.35	)			(3.37	)			(0.03	)			(0.18	)			—				(0.21	)			—			19.35		(14.65	)			2,245		(0.09	)	2.42		2.42		20
2017			19.36			(0.14	)			4.01				3.87				—				(0.28	)			(0.02	)			(0.30	)			0.00			22.93		19.98				2,127		(0.62	)	2.37		2.37		24
Class I
2022(e)		$	34.82		$	0.18			$	(7.25	)		$	(7.07	)		$	—			$	—			$	—			$	—			$	—		$	27.75		(20.30	)%		$	45,641		1.15	%(f)	1.38	%(f)	0.90	%(f)(g)	3	%
2021			29.15			0.39	(h)			5.82				6.21				(0.17	)			(0.37	)			—				(0.54	)			0.00			34.82		21.34				62,757		1.20	(h)	1.37		0.90	(g)	10
2020			26.28			0.19				2.88				3.07				(0.20	)			—				—				(0.20	)			0.00			29.15		11.67				48,234		0.79		1.47		0.90	(g)	8
2019			23.08			0.25	(h)			3.24				3.49				(0.25	)			(0.04	)			—				(0.29	)			0.00			26.28		15.11				44,180		1.01	(h)	1.45		0.99	(g)	5
2018			27.35			0.35				(4.04	)			(3.69	)			(0.40	)			(0.18	)			—				(0.58	)			—			23.08		(13.44	)			38,934		1.32		1.42		1.00	(g)	20
2017			22.89			0.19				4.78				4.97				(0.21	)			(0.28	)			(0.02	)			(0.51	)			0.00			27.35		21.68				59,555		0.74		1.37		1.00	(g)	24

 

†

Total return represents aggregate total return of a hypothetical investment at the beginning of the year and sold at the end of the period including reinvestment of distributions and does not reflect the applicable sales charges. Total return for a period of less than one year is not annualized.

(a)	Per share amounts have been calculated using the average shares outstanding method.

(b)	Amount represents less than $0.005 per share.

(c)	The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For all period/years presented there was no impact on the expense ratios.

(d)	The Fund incurred interest expense, the effect of which was minimal.

(e)	For the six months ended June 30, 2022, unaudited. (f) Annualized.

(g)

Under an expense reimbursement agreement with the Adviser, the Adviser reimbursed expenses of 153,864, $311,048, $295,855, and $196,584 for the six months ended June 30, 2022 and the years ended December 31, 2021, 2020, and 2019 and certain Class I expenses to the Fund of $211,071 and $175,468 for the years ended December 31, 2018 and 2017, respectively.

(h)

Includes income resulting from special dividends. Without these dividends, the per share income/(loss) amounts would have been $0.19 and $0.03 (Class AAA), $0.19 and $0.04 (Class A), $0.17 and $(0.13) (Class C), and $0.19 and $0.20 (Class I), and the net investment income/(loss) ratios would have been 0.59% and 0.14% (Class AAA), 0.57% and 0.14% (Class A), 0.61% and (0.64%) (Class C), 0.58% and 0.80% (Class I), for the years ended December 31, 2021 and 2019, respectively.

 

See accompanying notes to financial statements.

 

The Gabelli Global Rising Income and Dividend Fund 

Notes to Financial Statements (Unaudited)

1.  Organization. The Gabelli Global Rising Income and Dividend Fund, a series of the GAMCO Global Series Funds, Inc. (the Corporation), was incorporated on July 16, 1993 in Maryland. The Fund is a non-diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act), and is one of five separately managed portfolios (collectively, the Portfolios) of the Corporation. The Fund’s primary objective is to seek to provide investors a high level of total return through a combination of income and capital appreciation. The Fund commenced investment operations on February 3, 1994.

 

2.  Significant Accounting Policies. As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (GAAP) that may require the use of management estimates and assumptions in the preparation of its 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.

 

The global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations, regions, and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially impact the value and performance of the Fund, its ability to buy and sell fund investments at appropriate valuations, and its ability to achieve its investment objectives.

 

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 obligations 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. Such debt obligations are valued through prices provided by a pricing service approved by the Board. Certain securities are valued principally using dealer quotations.

 

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 with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S. dollar value American Depositary Receipt 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.

 

The Fund employs a fair value model to adjust prices to reflect events affecting the values of certain portfolio securities which occur between the close of trading on the principal market for such securities (foreign exchanges

 

The Gabelli Global Rising Income and Dividend Fund 

Notes to Financial Statements (Unaudited) (Continued)

and over-the-counter markets) at the time when net asset values of the Fund are determined. If the Fund’s valuation committee believes that a particular event would materially affect net asset value, further adjustment is considered. Such securities are classified as Level 2 in the fair value hierarchy presented below.

 

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy 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

●

Level 3 — significant unobservable inputs (including the Board’s determinations as to the fair value of investments).

 

A  financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. 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 the Fund’s investments in securities by inputs used to value the Fund’s investments as of June 30, 2022 is as follows:

 

		Valuation Inputs
		Level 1 Quoted Prices				Level 2 Other Significant Observable Inputs				Level 3 Significant Unobservable Inputs (a)				Total Market Value at 06/30/22
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
Diversified Industrial		$	3,512,414			$	137,250				—			$	3,649,664
Health Care			2,000,560				—			$	0				2,000,560
Telecommunications			1,819,186				—				65,000				1,884,186
Other Industries (b)			43,066,031				—				—				43,066,031
Total Common Stocks			50,398,191				137,250				65,000				50,600,441
Warrants (b)			3,336				—				—				3,336
TOTAL INVESTMENTS IN SECURITIES – ASSETS		$	50,401,527			$	137,250			$	65,000			$	50,603,777

  

 

(a)

The inputs for these securities are not readily available and are derived based on the judgment of the Adviser according to procedures approved by the Board of Directors.

(b)

Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.

 

The Fund did not have any material transfers into or out of Level 3 during the period ended June 30, 2022.

 

Additional Information to Evaluate Qualitative Information.

 

General. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds are ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external sources are checked by obtaining quotations

  

The Gabelli Global Rising Income and Dividend Fund 

Notes to Financial Statements (Unaudited) (Continued)

or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

 

Fair Valuation. Fair valued securities may be common or preferred equities, warrants, options, rights, or fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. When fair valuing a security, factors to consider include recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

 

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These may include backtesting the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

 

Derivative Financial Instruments. The Fund may engage in various portfolio investment strategies by investing in derivative financial instruments for the purposes of increasing the income of the Fund, hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase, or hedging against a specific transaction with respect to either the currency in which the transaction is denominated or another currency. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.

 

Collateral requirements differ by type of derivative. Collateral requirements are set by the broker or exchange clearing house for exchange traded derivatives, while collateral terms are contract specific for derivatives traded over-the-counter. Securities pledged to cover obligations of the Fund under derivative contracts are noted in the Schedule of Investments. Cash collateral, if any, pledged for the same purpose will be reported separately in the Statement of Assets and Liabilities.

 

The Fund’s policy with respect to offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the master agreement does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.

 

The Fund’s derivative contracts held at June 30, 2022, if any, are not accounted for as hedging instruments under GAAP and are disclosed in the Schedule of Investments together with the related counterparty.

 

The Gabelli Global Rising Income and Dividend Fund 

Notes to Financial Statements (Unaudited) (Continued)

Forward Foreign Exchange Contracts. The Fund may engage in forward foreign exchange contracts for the purpose of 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. As of June 30, 2022, the Fund held no forward foreign exchange contracts.

 

Securities Sold Short. The 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 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 Fund records a realized gain or loss when the short position is closed out. By entering into a short sale, the 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 Fund on the ex-dividend date and interest expense is recorded on the accrual basis. The broker retains collateral for the value of the open positions, which is adjusted periodically as the value of the position fluctuates. At June 30, 2022, there were no short sales outstanding.

 

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 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 purchase 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 inability 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 securities of comparable U.S. issuers.

 

The Gabelli Global Rising Income and Dividend Fund 

Notes to Financial Statements (Unaudited) (Continued)

Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

 

Restricted Securities. The Fund may invest up to 15% of its net assets in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted 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. Securities freely saleable among qualified institutional 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. For the restricted securities the Fund held as of June 30, 2022, if any, refer to the Schedule of Investments.

 

Securities Transactions and Investment Income. Securities transactions are accounted for on the trade date with realized gain/(loss) on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on an accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method or amortized to earliest call date, if applicable. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.

 

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.

 

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 GAAP. 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 for federal income tax purposes 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 Gabelli Global Rising Income and Dividend Fund 

Notes to Financial Statements (Unaudited) (Continued)

The tax character of distributions paid during the year ended December 31, 2021 was as follows:

 

Distributions paid from:
Ordinary income (inclusive of short term capital gains)		$	869,291
Net long term capital gains			208,567
Total distributions paid		$	1,077,858

 

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 net unrealized appreciation at June 30, 2022:

 

		Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Appreciation
Investments		$40,035,074		$16,327,469		$(5,758,766)		$10,568,703

 

The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. During the six months ended June 30, 2022, the Fund did not incur any income tax, interest, or penalties. As of June 30, 2022, the Adviser has reviewed all open tax years and concluded that there was no impact to the Fund’s net assets or results of operations. The Fund’s federal and state tax returns for the prior three fiscal years remain open, subject to examination. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.

 

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.

 

Effective December 1, 2019, the Adviser amended its contractual agreement with respect to each share class of the Fund to waive its investment advisory fees and/or to reimburse expenses to the extent necessary to maintain the annualized total operating expenses of the Fund (excluding brokerage costs, acquired fund fees and expenses, interest, taxes, and extraordinary expenses) until at least April 30, 2023, at no more than 0.90% of the value of the Fund’s average daily net assets for each share class of the Fund. During the six months ended June 30, 2022, the Adviser reimbursed expenses in the amount of $153,864. In addition, the Fund has agreed, during the two year period following any waiver or reimbursement by the Adviser, to repay such amount to the extent, after giving effect to the repayment, such adjusted annualized total operating expenses of the Fund would not exceed 0.90% of the value of the Fund’s average daily net assets for each share class of the

 

The Gabelli Global Rising Income and Dividend Fund 

Notes to Financial Statements (Unaudited) (Continued)

Fund. The agreement is renewable annually. At June 30, 2022, the cumulative amount which the Fund may repay the Adviser, subject to the terms above, is $760,767:

 

For the year ended December 31, 2020, expiring December 31, 2022		$	295,855
For the year ended December 31, 2021, expiring December 31, 2023			311,048
For the six months ended June 30, 2022, expiring December 31, 2024			153,864
		$	760,767

 

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. Under the Class AAA, Class A, and Class C Share Plans, payments are authorized to G.distributors, LLC (the Distributor), an affiliate of the Adviser, at annual rates of 0.25%, 0.25%, 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 sales of securities during the six months ended June 30, 2022, other than short term securities and U.S. Government obligations, aggregated $3,271,713 and $1,666,140, respectively.

 

6. Transactions with Affiliates and Other Arrangements. During the six months ended June 30, 2022, the Fund paid brokerage commissions on security trades of $379 to G.research, LLC, an affiliate of the Adviser. Additionally, the Distributor retained a total of $11 from investors representing commissions (sales charges and underwriting fees) on sales and redemptions of Fund shares.

 

The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. The amount of such expenses paid through this directed brokerage arrangement during this period was $1,094.

 

The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement. Under the sub-administration agreement with Bank of New York Mellon, the fees paid include the cost of calculating the Fund’s NAV. The Fund reimburses the Adviser for this service. During the six months ended June 30, 2022, the Fund accrued $22,500 in accounting fees in the Statement of Operations.

 

The Corporation pays retainer and per meeting fees to Directors not affiliated with the Adviser, plus specified amounts to the Lead Director and Audit Committee Chairman. Directors are also reimbursed for out of pocket expenses incurred in attending meetings. Directors who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Corporation.

 

7.  Line of Credit. The Fund participates in an unsecured line of credit, which expires on March 1, 2023 and may be renewed annually, of up to $75,000,000 under which it may borrow up to 10% of its net assets from the bank for temporary borrowing purposes. Borrowings under this arrangement bear interest at a floating rate equal to the higher of the Overnight Federal Funds Rate plus 135 basis points or the Overnight Bank Funding Rate plus 135 basis points in effect on that day. This amount, if any, would be included in “Interest expense” in the Statement of Operations. During the six months ended June 30, 2022, there were no borrowings under the line of credit.

 

8.  Capital Stock. The Fund currently offers three classes of shares – Class AAA Shares, Class A Shares, and Class I Shares. Effective January 27, 2020 (the Effective Date), the Fund’s Class AAA, Class A and Class C Shares “closed to purchases from new investors”. “Closed to purchases from new investors” means (i) with respect to the Class AAA and Class A shares, no new investors may purchase shares of such classes, but

 

The Gabelli Global Rising Income and Dividend Fund 

Notes to Financial Statements (Unaudited) (Continued)

existing shareholders may continue to purchase additional shares of such classes after the Effective Date, and (ii) with respect to Class C Shares, neither new investors nor existing shareholders may purchase any additional shares of such class after the Effective Date. These changes had no effect on existing shareholders’ ability to redeem shares of the Fund as described in the Fund’s Prospectus. Additionally, on the Effective Date Class I shares of the Fund became available to investors with a minimum initial investment amount of $1,000 when purchasing shares directly through the Distributor, or investors purchasing Class I shares through brokers or financial intermediaries that have entered into selling agreements with the Distributor specifically with respect to Class I shares.

 

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 as an increase in paid-in capital. The redemption fees retained by the Fund during the six months ended June 30, 2022 and the year ended December 31, 2021, if any, can be found in the Statement of Changes in Net Assets under Redemption Fees.

 

Transactions in shares of capital stock were as follows:

		Six Months Ended June 30, 2022 (Unaudited)							Year Ended December 31, 2021
		Shares			Amount				Shares			Amount
Class AAA
Shares sold		493			$	15,874			626			$	20,584
Shares issued upon reinvestment of distributions		—				—			2,106				72,245
Shares redeemed		(2,038	)			(64,727	)		(38,610	)			(1,240,256	)
Net decrease		(1,545	)		$	(48,853	)		(35,878	)		$	(1,147,427	)
Class A
Shares sold		595			$	19,302			8,319			$	272,444
Shares issued upon reinvestment of distributions		—				—			469				16,148
Shares redeemed		(5,135	)			(162,711	)		(3,997	)			(129,441	)
Net increase/(decrease)		(4,540	)		$	(143,409	)		4,791			$	159,151
Class C
Shares issued upon reinvestment of distributions		—			$	—			424			$	12,152
Shares redeemed		(3,628	)			(92,765	)		(17,658	)			(482,017	)
Net decrease		(3,628	)		$	(92,765	)		(17,234	)		$	(469,865	)
Class I
Shares sold		94,350			$	3,115,051			187,993			$	6,268,108
Shares issued upon reinvestment of distributions		—				—			18,840				649,051
Shares redeemed		(252,367	)			(7,985,939	)		(58,761	)			(1,920,271	)
Net increase/(decrease)		(158,017	)		$	(4,870,888	)		148,072			$	4,996,888

 

9.  Significant Shareholder. As of June 30, 2022, approximately 85.9% of the Fund was beneficially owned by the Adviser and its affiliates, including managed accounts for which the affiliates of the Adviser have voting control but disclaim pecuniary interest.

  

The Gabelli Global Rising Income and Dividend Fund 

Notes to Financial Statements (Unaudited) (Continued)

10.  Indemnifications. The Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

 

11.  Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

 

 

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THE GABELLI GLOBAL RISING INCOME AND DIVIDEND FUND

One Corporate Center 

Rye, NY 10580-1422

 

 

 

Portfolio Manager Biography

 

Mario J. Gabelli, CFA, is Chairman, Chief Executive Officer, and Chief Investment Officer - Value Portfolios of GAMCO Investors, Inc. that he founded in 1977, and Chief Investment Officer - Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc. He is also Executive Chairman of Associated Capital Group, Inc. Mr. Gabelli is a summa cum laude graduate of Fordham University and holds an MBA degree from Columbia Business School and Honorary Doctorates from Fordham University and Roger Williams University.

 

 

 

 

 

 

The Gabelli International Small Cap Fund

Semiannual Report — June 30, 2022

(Y)our Portfolio Management Team

 

Caesar M. P. Bryan	Gustavo Pifano	Ashish Sinha
Portfolio Manager	Portfolio Manager	Portfolio Manager

 

To Our Shareholders,

 

For the six months ended June 30, 2022, the net asset value (NAV) total return per Class AAA Share of The Gabelli International Small Cap Fund was (29.4)% compared with a total return of (24.7)% for the Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE) Small Cap Index. Other classes of shares are available. See page 4 for performance information for all classes.

 

Enclosed are the financial statements, including the schedule of investments, as of June 30, 2022.

 

Investment Objective and Strategy (Unaudited)

 

The Fund’s objective is to provide investors with appreciation of capital. Current income is a secondary objective of the Fund.

 

The Fund’s investment strategy is to invest primarily in a portfolio of common stocks of non-U.S. companies. Under normal market conditions, the Fund will invest at least 80% of its net assets in the stocks of “small cap companies.” Gabelli Funds, LLC, the Adviser, currently characterizes small capitalization companies as those with total common stock market values of $3 billion or less at the time of investment.

 

The Fund may invest in non-U.S. markets throughout the world, including emerging markets. Ordinarily, the Fund will invest in the securities of at least five countries outside the U.S.

  

 

 

 

As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.gabelli.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. To elect to receive all future reports on paper free of charge, please contact your financial intermediary, or, if you invest directly with the Fund, you may call 800-422-3554 or send an email request to info@gabelli.com.

 

 

In selecting investments, the Adviser seeks issuers with a dominant market share or niche franchise in growing and/or consolidating industries. The Adviser considers for purchase the stocks of small capitalization companies with experienced management, strong balance sheets, and rising free cash flow and earnings. The Adviser’s goal is to invest long term in the stocks of companies trading at reasonable market valuations relative to perceived economic worth.

 

Performance Discussion (Unaudited)

 

It was an extremely difficult six months for equity investors with most countries and many sectors declining by more than double digits. Germany, the Netherlands and Sweden lost more than 20%. The Chinese market performed slightly better with a decline of 12.3% which helped emerging markets outperform developed markets for the period. However, Chinese stocks had lost 33% in the preceding twelve months. On a global basis, all sectors declined with the less economically sensitive sectors such as health care, consumer staples and telecom falling less than the average. This reflects investor fear that persistent inflation will lead to increasingly tighter monetary policy from central banks which in turn will lead to slower growth or possibly a recession. In addition to inflation concerns, the conflict in the Ukraine and the COVID-19 related shutdowns in China have added to investor nervousness. Complicating matters further, the dollar has been very strong which tends to manifest itself in a tightening of financial conditions outside the US, particularly in those emerging markets that have dollar debt.

 

The fund is focused on companies outside the US with a market capitalization less than $3bn. At the end of June, over 60% of the portfolio was invested in Europe with about 20% invested in Japan, 10% in the Pacific ex Japan and the rest held in cash. Our largest sector exposures are consumer staples (22%) and healthcare (17%) which reflects our near term concerns about global growth.

 

The fund’s leading contributor to performance during the first quarter 2022 was Brewin Dolphin, a UK based wealth manager that was the subject of a takeover offer from RBC, one of the largest banks in Canada. The company’s share price appreciated by 34.5% in the quarter and contributed 65 basis points to overall fund performance. The next best contributor to performance was Austevoll Seafood, a Norwegian based fish farming company whose share price rose by 29.6% and contributed 59 basis points to performance. Rounding out the top five contributors were three of the Funds gold mining stocks. They included Endeavour Mining (+14.4%) Perseus Mining (25.0%) and Eldorado Gold (19.9%). These holdings benefited from a rising gold price. Gold ended March at $1,937 up 5.9% for the quarter.

 

Two of the fund’s recent winners gave up some of their gains as the market tended to sell down stocks that were trading on high multiples. Generally growth stocks are considered long duration assets and when interest rates rise the discount rate applied to future earnings also rises leading to lower multiples on near term earnings. This applied to AddLife and Bachem Holding, our top two detractors to performance. Addlife fell by 33.0% and Bachem Holding by 29.3%. The other negative contributors to performance included Inter Parfumes, Qleanair and Fevertree Drinks.

 

LeoVegas was our top performer during the second quarter 2022, gaining about 50% as the company was bid for by MGM Resorts at the beginning of May at which point we sold our position. Otherwise some of our Japanese investments gained during the quarter. These included Raccoon Holdings, Sakata Seed, JGC Holdings, Maruwa and Optex Group. However a number of our holdings that trade on larger than average valuations which reflect their higher growth potential performed poorly. These included MedPeer, Genius Sports, AddLife, Viaplay and Hotel Chocolat. During the quarter we purchased a position in Kindred Group which is a Swedish quoted company that offered online gaming services. Otherwise we added to our positions in 888 Holdings, JGC and Ypsomed. Aside from LeoVegas, sales included Boohoo, Brewin Dolphin and Viaplay.

 

 

Selected holdings that contributed positively to performance during the period ended June 30, 2022 were:

 

Sakata Seed Corp. (1.8% of net assets as of June 30, 2022), produces and sells vegetable and flower seeds, bulbs, plants, and agricultural and horticultural materials in Japan and internationally; LeoVegas AB (No longer held as of June 30, 2022), operates as a mobile gaming company in Malta, Sweden, and internationally; and Brewin Dolphin Holdings plc (No longer held as of June 30, 2022), together with its subsidiaries, provides wealth management services in the United Kingdom, the Channel Islands, and the Republic of Ireland.

 

Some of our weaker performing holdings during the period were: Addlife AB (2.5%), together with its subsidiaries, provides equipment, medical devices, and reagents primarily to healthcare system, research, colleges, and universities, as well as the food and pharmaceutical industries; Bachem Holdings AG (2.4%), which provides products for research, clinical development, and commercial application to pharmaceutical and biotechnology companies worldwide; and Hotel Chocolat Group plc (1.4%), which manufactures and retails chocolates under the Hotel Chocolat brand name in the United Kingdom, rest of Europe, Saint Lucia, the United States, Japan, and internationally.

 

Thank you for your investment in The Gabelli International Small Cap Fund.

 

We appreciate your confidence and trust.

 

The views expressed reflect the opinions of the Fund’s portfolio managers and Gabelli Funds, LLC, the Adviser, as of the date of this report and are subject to change without notice based on changes in market, economic, or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

Comparative Results

 

 

 

The Gabelli International Small Cap Fund
Disclosure of Fund Expenses (Unaudited)
For the Six Month Period from January 1, 2022 through June 30, 2022	Expense Table

 

 

 

Summary of Portfolio Holdings (Unaudited)

 

The following tables present portfolio holdings as a percent of net assets as of June 30, 2022:

 

The Gabelli International Small Cap Fund

 

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-PORT. 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-PORT 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 800-SEC-0330.

 

Proxy Voting

 

The Fund files Form N-PX with its complete proxy voting record for the twelve months ended June 30, no later than August 31 of each year. A description of the Fund’s proxy voting policies, procedures, and how each 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.

 

 

The Gabelli International Small Cap Fund

Schedule of Investments — June 30, 2022 (Unaudited)

 

See accompanying notes to financial statements.

 

 

The Gabelli International Small Cap Fund

Schedule of Investments (Continued) — June 30, 2022 (Unaudited)

 

See accompanying notes to financial statements.

 

 

The Gabelli International Small Cap Fund

 

 

See accompanying notes to financial statements.

 

 

The Gabelli International Small Cap Fund

 

Statement of Changes in Net Assets

		Six Months Ended June 30, 2022 (Unaudited)				Year Ended December 31, 2021
Operations:
Net investment income		$	43,326			$	95,666
Net realized gain/(loss) on investments, forward foreign exchange contracts, and foreign currency transactions			(28,049	)			474,371
Net change in unrealized appreciation/depreciation on investments and foreign currency translations			(3,089,509	)			21,574
Net Increase/(Decrease) in Net Assets Resulting from Operations			(3,074,232	)			591,611
Distributions to Shareholders:
Accumulated earnings
Class AAA			—				(127,193	)
Class A			—				(2,153	)
Class C			—				(359	)
Class I			—				(87,950	)
Total Distributions to Shareholders			—				(217,655	)
Capital Share Transactions:
Class AAA			(232,190	)			(585,445	)
Class A			(22,430	)			60
Class C			(5,342	)			(12,762	)
Class I			(13,384	)			(176,787	)
Net Decrease in Net Assets from Capital Share Transactions			(273,346	)			(774,934	)
Redemption Fees			4				9
Net Decrease in Net Assets			(3,347,574	)			(400,969	)
Net Assets:
Beginning of year			10,687,337				11,088,306
End of period		$	7,339,763			$	10,687,337

 

See accompanying notes to financial statements.

 

 

The Gabelli International Small Cap Fund
Financial Highlights

Selected data for a share of capital stock outstanding throughout each period:

 

					Income (Loss) from Investment Operations									Distributions																					Ratios to Average Net Assets/Supplemental Data
Year Ended December 31		Net Asset Value, Beginning of Year			Net Investment Income (Loss)(a)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Net Investment Income			Net Realized Gain on Investments			Return of Capital			Total Distributions			Redemption Fees(a)(b)			Net Asset Value, End of Period			Total Return†			Net Assets, End of Period (in 000’s)			Net Investment Income (Loss)			Operating Expenses Before Reimbursement		Operating Expenses Net of Reimbursement(c)			Portfolio Turnover Rate
Class AAA
2022(d)		$	15.75		$	0.06		$	(4.69	)	$	(4.63	)	$	—		$	—		$	—		$	—		$	0.00		$	11.12		(29.40	)%		$	4,177		0.97	%(e)		3.36	%(e)	0.90	%(e)(f)		4	%
2021			15.44			0.13	(g)		0.51			0.64			(0.33	)		(0.00	)(b)		—			(0.33	)		0.00			15.75		4.16				6,191		0.79	(g)		2.89		0.92	(h)		15
2020			13.06			0.06			2.44			2.50			(0.12	)		—			—			(0.12	)		0.00			15.44		19.16				6,617		0.51			3.65		0.91			22
2019			11.09			0.19	(g)		2.68			2.87			(0.22	)		(0.68	)		—			(0.90	)		0.00			13.06		25.94				6,366		1.50	(g)		3.41		1.00			9
2018			18.55			0.19			(4.13	)		(3.94	)		(0.19	)		(3.32	)		(0.01	)		(3.52	)		0.00			11.09		(20.87	)			5,954		1.07			3.11		1.00	(f)		26
2017			22.41			0.04			6.19			6.23			(0.13	)		(9.96	)		—			(10.09	)		—			18.55		28.09				8,599		0.16			3.01		1.67			71
Class A
2022(d)		$	15.72		$	0.06		$	(4.68	)	$	(4.62	)	$	—		$	—		$	—		$	—		$	0.00		$	11.10		(29.39	)%		$	55		0.89	%(e)		3.36	%(e)	0.90	%(e)(f)		4	%
2021			15.40			0.13	(g)		0.52			0.65			(0.33	)		(0.00	)(b)		—			(0.33	)		0.00			15.72		4.24				104		0.82	(g)		2.89		0.92	(h)		15
2020			13.03			0.06			2.43			2.49			(0.12	)		—			—			(0.12	)		0.00			15.40		19.13				101		0.50			3.65		0.91			22
2019			11.05			0.07	(g)		2.67			2.74			(0.08	)		(0.68	)		—			(0.76	)		0.00			13.03		24.86				91		0.60	(g)		3.41		1.91			9
2018			18.44			0.01			(4.08	)		(4.07	)		—			(3.32	)		—			(3.32	)		0.00			11.05		(21.70	)			81		0.04			3.11		2.01	(f)		26
2017			22.33			(0.05	)		6.18			6.13			(0.06	)		(9.96	)		—			(10.02	)		—			18.44		27.74				155		(0.19	)		3.01		2.00			71
Class C
2022(d)		$	14.12		$	0.05		$	(4.20	)	$	(4.15	)	$	—		$	—		$	—		$	—		$	—		$	9.97		(29.39	)%		$	7		0.84	%(e)		4.11	%(e)	0.90	%(e)(f)		4	%
2021			13.87			0.11	(g)		0.47			0.58			(0.33	)		(0.00	)(b)		—			(0.33	)		0.00			14.12		4.20				16		0.77	(g)		3.64		0.92	(h)		15
2020			11.74			0.05			2.20			2.25			(0.12	)		—			—			(0.12	)		0.00			13.87		19.19				28		0.48			4.40		0.91			22
2019			10.02			(0.01	)(g)		2.41			2.40			—			(0.68	)		—			(0.68	)		0.00			11.74		24.01				26		(0.12	)(g)		4.16		2.61			9
2018			17.26			(0.11	)		(3.81	)		(3.92	)		—			(3.32	)		—			(3.32	)		0.00			10.02		(22.33	)			31		(0.67	)		3.86		2.76	(f)		26
2017			21.52			(0.23	)		5.93			5.70			—			(9.96	)		—			(9.96	)		—			17.26		26.79				43		(0.92	)		3.76		2.75			71
Class I
2022(d)		$	16.18		$	0.07		$	(4.83	)	$	(4.76	)	$	—		$	—		$	—		$	—		$	0.00		$	11.42		(29.42	)%		$	3,101		1.00	%(e)		3.11	%(e)	0.90	%(e)(f)		4	%
2021			15.85			0.14	(g)		0.52			0.66			(0.33	)		(0.00	)(b)		—			(0.33	)		0.00			16.18		4.18				4,376		0.87	(g)		2.64		0.92	(h)		15
2020			13.41			0.05			2.51			2.56			(0.12	)		—			—			(0.12	)		0.00			15.85		19.11				4,342		0.39			3.40		0.91			22
2019			11.39			0.19	(g)		2.77			2.96			(0.26	)		(0.68	)		—			(0.94	)		0.00			13.41		26.04				1,312		1.52	(g)		3.16		1.00			9
2018			18.93			0.19			(4.22	)		(4.03	)		(0.18	)		(3.32	)		(0.01	)		(3.51	)		0.00			11.39		(20.90	)			1,557		1.07			2.86		1.00	(f)		26
2017			22.68			0.21			6.31			6.52			(0.31	)		(9.96	)		—			(10.27	)		—			18.93		29.02				2,031		0.82			2.76		1.00			71

 

†

Total return represents aggregate total return of a hypothetical investment at the beginning of the year and sold at the end of the period including reinvestment of distributions and does not reflect the applicable sales charges. Total return for a period of less than one year is not annualized.

(a)

Per share amounts have been calculated using the average shares outstanding method.

(b)

Amount represents less than $0.005 per share.

(c)

Under an expense reimbursement agreement with the Adviser, the Adviser reimbursed expenses of $102,671, $216,306, $210,061, $184,323, $201,091, and $144,403 for the six months ended June 30, 2022 and the years ended December 31, 2021, 2020, 2019, 2018, and 2017, respectively.

(d)

For the six months ended June 30, 2022, unaudited.

(e)

Annualized.

(f)

The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. If credits had not been received, the ratios of operating expenses to average net assets would have been 0.93% for each Class for the six months ended June 30, 2022. For the year ended December 31, 2018, the effect of expense reimbursements was minimal.

(g)

Includes income resulting from special dividends. Without these dividends, the per share income/(loss) amounts would have been $0.06 and $0.15 (Class AAA), $0.06 and $0.04 (Class A), $0.05 and $(0.05) (Class C), and $0.07 and $0.15 (Class I), and the net investment income/(loss) ratios would have been 0.36% and 1.19% (Class AAA), 0.39% and 0.29% (Class A), 0.34% and (0.43%) (Class C), and 0.44% and 1.21% (Class I) for the years ended December 31, 2021 and 2019, respectively.

(h)

The Fund incurred tax expense for the year ended December 31, 2021. If tax expense had not been incurred, the ratios of operating expenses to average net assets would have been 0.90% for each Class.

 

See accompanying notes to financial statements.

 

 

The Gabelli International Small Cap Fund
Notes to Financial Statements (Unaudited)

1. Organization. The Gabelli International Small Cap Fund, a series of the GAMCO Global Series Funds, Inc. (the Corporation), was incorporated on July 16, 1993 in Maryland. The Fund is a non-diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act), and is one of five separately managed portfolios (collectively, the Portfolios) of the Corporation. The Fund’s primary objective is capital appreciation. The Fund commenced investment operations on May 11, 1998.

 

2. Significant Accounting Policies As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (GAAP) that may require the use of management estimates and assumptions in the preparation of its 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.

 

The global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations, regions, and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially impact the value and performance of the Fund, its ability to buy and sell fund investments at appropriate valuations, and its ability to achieve its investment objectives.

 

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 obligations 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. Such debt obligations are valued through prices provided by a pricing service approved by the Board. Certain securities are valued principally using dealer quotations.

 

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 with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S. dollar value American Depositary Receipt 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.

 

The Fund employs a fair value model to adjust prices to reflect events affecting the values of certain portfolio securities which occur between the close of trading on the principal market for such securities (foreign exchanges and over-the-counter markets) at the time when net asset values of the Fund are determined. If the Fund’s

 

 

The Gabelli International Small Cap Fund

Notes to Financial Statements (Unaudited) (Continued)

valuation committee believes that a particular event would materially affect net asset value, further adjustment is considered. Such securities are classified as Level 2 in the fair value hierarchy presented below.

 

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy 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

●

Level 3 — significant unobservable inputs (including the Board’s determinations as to the fair value of investments).

 

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. 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 the Fund’s investments in securities by inputs used to value the Fund’s investments as of June 30, 2022 is as follows:

 

		Valuation Inputs
		Level 1 Quoted Prices				Level 2 Other Significant Observable Inputs				Total Market Value at 06/30/22
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks (a)		$	6,689,214				—			$	6,689,214
Preferred Stocks (a)			93,655				—				93,655
U.S. Government Obligations			—			$	544,088				544,088
TOTAL INVESTMENTS IN SECURITIES – ASSETS		$	6,782,869			$	544,088			$	7,326,957

 

(a)

Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.

 

The Fund held no Level 3 investments at June 30, 2022 and December 31, 2021.

 

Additional Information to Evaluate Qualitative Information.

 

General. The Fund uses recognized industry pricing services approved by the Board and unaffiliated with the Adviser to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds are ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

 

Fair Valuation. Fair valued securities may be common or preferred equities, warrants, options, rights, or fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are

 

 

The Gabelli International Small Cap Fund

Notes to Financial Statements (Unaudited) (Continued)

restricted as to transfer. When fair valuing a security, factors to consider include recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

 

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These may include backtesting the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

 

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 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 purchase 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 inability 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 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/(loss) on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on an accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method or amortized to earliest call date, if applicable. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.

 

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.

 

 

The Gabelli International Small Cap Fund

Notes to Financial Statements (Unaudited) (Continued)

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.

 

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 GAAP. 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 for federal income tax purposes 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. Permanent differences were primarily due to disallowed losses and distributions in excess of income. These reclassifications have no impact on the NAV of the Fund.

 

The tax character of distributions paid during the year ended December 31, 2021 was as follows:

 

Distributions paid from:
Ordinary income		$	215,281
Net long term capital gains			2,374
Total distributions paid		$	217,655

 

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 net unrealized depreciation at June 30, 2022:

 

		Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Depreciation
Investments		$8,214,225		$889,746		$(1,777,014)		$(887,268)

 

The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. For the six months ended June 30, 2022, the Fund did not incur any income tax, interest, or penalties. As of June 30, 2022, the Adviser has reviewed all open tax years and concluded that there was no impact to the Fund’s net assets or results of operations. The Fund’s federal and state tax returns for the prior three fiscal years remain open, subject to examination. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.

 

 

The Gabelli International Small Cap Fund

Notes to Financial Statements (Unaudited) (Continued)

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.

 

Through November 30, 2019, the Adviser had agreed to waive and/or to reimburse expenses of the Fund to the extent necessary to maintain the annualized total operating expenses of the Fund (excluding brokerage costs, acquired fund fees and expenses, interest, taxes, and extraordinary expenses) at no more than 1.00%, 2.00%, 2.75%, and 1.00% of the value of the Fund’s average daily net assets for Class AAA, Class A, Class C, and Class I, respectively. Effective December 1, 2019, the Adviser amended its contractual agreement with respect to each share class of the Fund to waive its investment advisory fees and/or to reimburse expenses to the extent necessary to maintain the annualized total operating expenses of the Fund (excluding brokerage costs, acquired fund fees and expenses, interest, taxes, and extraordinary expenses) until at least April 30, 2023, at no more than 0.90% of the value of the Fund’s average daily net assets for each share class. During the six month ended June 30, 2022, the Adviser reimbursed the Fund in the amount of $102,671. In addition, the Fund has agreed, during the two year period following any waiver or reimbursement by the Adviser, to repay such amount to the extent, that after giving effect to the repayment, such adjusted annualized total operating expenses of the Fund would not exceed 0.91% of the value of the Fund’s average daily net assets for each share class of the Fund. The arrangement is renewable annually. At June 30, 2022, the cumulative amount which the Fund may repay the Adviser, subject to the terms above, is $529,038:

 

 

For the year ended December 31, 2020, expiring December 31, 2022		$	210,061
For the year ended December 31, 2021, expiring December 31, 2023			216,306
For the six months ended June 30, 2022, expiring December 31, 2024			102,671
		$	529,038

 

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. Under the Class AAA, Class A, and Class C Share Plans, payments are authorized to G.distributors, LLC (the Distributor), an affiliate of the Adviser, at annual rates of 0.25%, 0.25%, 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 sales of securities during the six months ended June 30, 2022, other than short term securities and U.S. Government obligations, aggregated $336,210 and $906,364, respectively.

 

6. Transactions with Affiliates and Other Arrangements. The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement. Under the sub-administration agreement with Bank of New York Mellon, the fees paid include the cost of calculating the Fund’s NAV. The Fund reimburses the Adviser for this service. The Adviser did not seek a reimbursement during the six months ended June 30, 2022.

 

The Corporation pays retainer and per meeting fees to Directors not affiliated with the Adviser, plus specified amounts to the Lead Director and Audit Committee Chairman. Directors are also reimbursed for out of pocket

 

 

The Gabelli International Small Cap Fund

Notes to Financial Statements (Unaudited) (Continued)

expenses incurred in attending meetings. Directors who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Corporation.

 

7. Line of Credit. The Fund participates in an unsecured line of credit, which expires on March 1, 2023 and may be renewed annually, of up to $75,000,000 under which it may borrow up to 10% of its net assets from the bank for temporary borrowing purposes. Borrowings under this arrangement bear interest at a floating rate equal to the higher of the Overnight Federal Funds Rate plus 135 basis points or the Overnight Bank Funding Rate plus 135 basis points in effect on that day. This amount, if any, would be included in “Interest expense” in the Statement of Operations. At June 30, 2022, there were no borrowings under the line of credit.

 

The average daily amount of borrowings outstanding under the line of credit for the eleven days of borrowings during the six months ended June 30, 2022 was $68,000 with a weighted average interest rate of 1.51%. The maximum amount borrowed at any time during the six months ended June 30, 2022 was $105,000.

 

8. Capital Stock. The Fund currently offers three classes of shares – Class AAA Shares, Class A Shares, and Class I Shares. Effective January 27, 2020, (the Effective Date) the Fund’s Class AAA, Class A, and Class C Shares “closed to purchases from new investors”. “Closed to purchases from new investors” means (i) with respect to the Class AAA, and Class A shares, no new investors may purchase shares of such classes, but existing shareholders may continue to purchase additional shares of such classes after the Effective Date, and (ii) with respect to Class C Shares, neither new investors nor existing shareholders may purchase any additional shares of such class after the Effective Date. These changes had no effect on existing shareholders’ ability to redeem shares of the Fund as described in the Fund’s Prospectus. Additionally, on the Effective Date Class I shares of the Fund became available to investors with a minimum initial investment amount of $1,000 when purchasing shares directly through the Distributor, or investors purchasing Class I shares through brokers or financial intermediaries that have entered into selling agreements with the Distributor specifically with respect to Class I shares.

 

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 as an increase in paid-in capital. The redemption fees retained by the Fund during the six months ended June 30, 2022 and the year ended December 31, 2021, if any, can be found in the Statement of Changes in Net Assets under Redemption Fees.

 

 

The Gabelli International Small Cap Fund

Notes to Financial Statements (Unaudited) (Continued)

Transactions in shares of capital stock were as follows:

 

		Six Months Ended June 30, 2022 (Unaudited)								Year Ended December 31, 2021
		Shares				Amount				Shares				Amount
Class AAA
Shares sold			1,788			$	23,835				6,223			$	100,104
Shares issued upon reinvestment of distributions			19				270				7,944				124,396
Shares redeemed			(19,272	)			(256,295	)			(49,701	)			(809,945	)
Net decrease			(17,465	)		$	(232,190	)			(35,534	)		$	(585,445	)
Class A
Shares sold			384			$	5,327				895			$	13,953
Shares issued upon reinvestment of distributions			—				—				94				1,480
Shares redeemed			(2,031	)			(27,757	)			(956	)			(15,373	)
Net increase/(decrease)			(1,647	)		$	(22,430	)			33			$	60
Class C
Shares issued upon reinvestment of distributions			—				—				25			$	358
Shares redeemed			(428	)		$	(5,342	)			(946	)			(13,120	)
Net decrease			(428	)		$	(5,342	)			(921	)		$	(12,762	)
Class I
Shares sold			46,009			$	620,762				135,215			$	2,192,535
Shares issued upon reinvestment of distributions			—				—				5,184				83,354
Shares redeemed			(45,086	)			(634,146	)			(143,909	)			(2,452,676	)
Net increase/(decrease)			923			$	(13,384	)			(3,510	)		$	(176,787	)

 

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. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

 

10. Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

 

 

THE GABELLI INTERNATIONAL SMALL CAP FUND

One Corporate Center
Rye, NY 10580-1422

 

 

 

Portfolio Management Team Biographies

 

Caesar M. P. Bryan joined GAMCO Asset Management in 1994. He is a member of the global investment team of Gabelli Funds, LLC and portfolio manager of several funds within the Fund Complex. Prior to joining Gabelli, Mr. Bryan was a portfolio manager at Lexington Management. He began his investment career at Samuel Montagu Company, the London based merchant bank. Mr. Bryan graduated from the University of Southampton in England with a Bachelor of Law and is a member of the English Bar.

 

Gustavo Pifano joined the Firm in 2008 and is based in London. He serves as an assistant vice president of research and covers the industrial and consumer sectors with a focus on small-cap stocks. Gustavo is a member of the risk management group and responsible for the Firm’s UK compliance oversight and AML reporting functions. Gustavo holds a BBA in Finance from University of Miami and an MBA degree from University of Oxford Said Business School.

 

Ashish Sinha joined GAMCO UK in 2012 as a research analyst. Prior to joining the Firm, Mr. Sinha was a research analyst at Morgan Stanley in London for seven years and has covered European Technology, Mid-Caps and Business Services. He also worked in planning and strategy at Birla Sun Life Insurance in India. Currently Mr. Sinha is a portfolio manager of Gabelli Funds, LLC and an Assistant Vice President of GAMCO Asset Management UK. Mr. Sinha has a BSBA degree from the Institute of Management Studies and an MB from IIFT.

 

 

 

 

The Gabelli Global Mini Mites Fund

Semiannual Report — June 30, 2022

 

 

To Our Shareholders,

 

For the six months ended June 30, 2022, the net asset value (NAV) total return per Class AAA Share of The Gabelli Global Mini Mites Fund was (18.1)% compared with a total return of (22.5)% for the S&P Developed SmallCap Index. Other classes of shares are available. See page 4 for performance information for all classes.

 

Enclosed are the financial statements, including the schedule of investments, as of June 30, 2022.

 

Investment Objective and Strategy (Unaudited)

 

The Gabelli Global Mini Mites Fund, a series of GAMCO Global Series Funds, Inc. commenced investment operations on October 1, 2018. The Fund is a non-diversified open end management investment company whose investment objective is to provide investors with long term capital appreciation by investing primarily in micro-capitalization equity securities.

 

The Fund’s investment strategy is to invest in common stocks of smaller companies that have a market capitalization (defined as shares outstanding times current market price) of $250 million or less at the time of the Fund’s initial investment. These companies are called micro-cap companies. As a “global” fund, the Fund invests in securities of issuers located in at least three countries and at least 40% of its net assets are invested in securities of non U.S. issuers.

 

As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.gabelli.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. To elect to receive all future reports on paper free of charge, please contact your financial intermediary, or, if you invest directly with the Fund, you may call 800-422-3554 or send an email request to info@gabelli.com.

 

Performance Discussion (Unaudited)

 

The top contributors to performance in the first quarter 2022 included Bel Fuse Inc. (5.4% of net asset as of June 30, 2022) and Dril-Quip Inc. (1.7%). Bel Fuse (5.4%), a manufacturer of electronic circuits and other power products delivered strong fourth quarter revenue growth of 27% along with gross margin expansion. Management expressed confidence in its pricing initiatives and abilities to offset rising input costs. Dril-Quip is a leading manufacturer of advanced subsea drilling equipment for deep water applications. Its share price appreciated significantly during the quarter as the outlook for offshore activity brightened due to higher crude prices. Newly appointed CEO, Jeff Bird, has shown more willingness to deploy the company’s strong balance sheet, which includes over $10/share of net cash, to bolt-on acquisitions and/or share repurchases to surface shareholder value. The top detractors in the March quarter were Park-Ohio Holdings Corp. (2.3%) and Corem Property Group (1.2%). Park-Ohio is a diversified industrial company that offers supply chain management services and manufactures capital equipment and components to industrial customers. Revenue and profitability was pressured by supply chain disruptions and rising input costs principally across its General Aluminum business. Corem Property Group owns, manages and develops logistic properties in Sweden and Denmark. It focuses on urban properties suited for city and last mile logistics. After significant share price outperformance in 2021, shares declined approximately 25% during the first quarter 2022. In early March, the company initiated a share buyback program to narrow the valuation spread as shares trade at a nearly 20% discount to its net asset value.

 

The top contributors to performance in the second quarter 2022 included LeoVegas AB (1.2% of net assets as of June 30, 2022, +45%) and GTY Technology Holdings Inc (0.3%, +80%). LeoVegas AB is a global online gaming operator, primarily on mobile devices. The company offers a full suite of casino, bingo, and sports betting products with gross gaming revenues derived from slot games (74%), followed by live casino (14%) and sports betting (12%). In 2Q 2022, LeoVegas shares increased 45% on the back of a SEK61 per share cash offer for the company from MGM Resorts international. This offer was unanimously recommended by the LeoVegas board. The offer is not conditional upon financing and runs from 3 June to 30 Aug 2022. GTY Technology Holdings Inc. is a provider of cloud computing solutions to state and local governments, educational institutions, and healthcare organizations. GTY shares increased 80% in 2Q, 2022 on the back of a $6.30 per share in cash offer from private equity firm GI Partners. The GTY board has unanimously approved the offer, which is expected to close in 3Q 2022 following approval at a GTY shareholder special meeting and regulatory approval.

 

The top detractors in 2Q 2022 were Ampco-Pittsburgh Corp. (0.3%, -39%) and Corem Property Group (1.2%, -57%). Ampco-Pittsburgh, is a manufacturer of engineered specialty metal products and equipment such as forged steel rolls used in cold rolling mills, and air and liquid processing equipment such as air handling systems and pumps. Ampco shares declined by 39% in 2Q 2022 on the back of multiple factors including general recessionary fears affecting commodity-exposed companies. Corem Property Group, owns, manages, and develops logistic properties in Sweden and Denmark. Corem focuses on urban properties suited for city and last mile logistics. Corem shares declined again in 2Q 2022, as did the rest of the Swedish property sector, from concerns over falling real estate transactions, inflation, and lower valuations. In addition, the U.S. dollar to Swedish Krona rate depreciated by around 10% during the quarter, which impacted U.S. dollar returns for Corem shares.

 

Selected holdings that contributed positively to performance during the period ended June 30, 2022 were:

 

LeoVegas, AB. (1.2% of net assets as of June 30, 2022), is a global online gaming operator, primarily on mobile devices. The company offers a full suite of casino, bingo, and sports betting products; Canterbury Park Holding, Corp. (1.7%), through its subsidiaries, engages in horse racing, card casino, food and beverage, and real estate development businesses; and Intricon Corp. (No longer held as of June 30, 2022), is an international

 

joint development manufacturer engaged in designing, developing, engineering, manufacturing, and packaging miniature interventional, implantable and body-worn medical devices.

 

Some of our weaker performing holdings during the period were: Corem Property Group (1.2%), owns, manages, and develops logistic properties in Sweden and Denmark; Paratek Pharmaceuticals Inc. (1.0%), a commercial-stage biopharmaceutical company, focuses on the development and commercialization of life-saving therapies for life-threatening diseases or other public health threats; and Diebold Nixdorf Inc. (0.3%), which provides connected commerce solutions to financial institutions and retailers in Western Europe, Eastern Europe, Asia, the Middle East, Africa, the United States, Canada, Mexico, and Latin America.

 

Thank you for your investment in the Gabelli Global Mini Mites Fund.

 

We appreciate your confidence and trust.

 

The views expressed reflect the opinions of the Fund’s portfolio managers and Gabelli Funds, LLC, the Adviser, as of the date of this report and are subject to change without notice based on changes in market, economic, or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Comparative Results

 

 

The Gabelli Global Mini Mites Fund
Disclosure of Fund Expenses (Unaudited)
For the Six Month Period from January 1, 2022 through June 30, 2022	Expense Table

 

Summary of Portfolio Holdings (Unaudited)

 

The following table presents portfolio holdings as a percent of net assets as of June 30, 2022:

 

The Gabelli Global Mini Mites Fund
Diversified Industrial	19.2%		Energy and Utilities	2.3	%
Machinery	9.1%		Computer Software and Services	1.9	%
Consumer Products	8.4%		Real Estate	1.8	%
Automotive: Parts and Accessories	6.8%		U.S. Government Obligations	1.7	%
Electronics	5.7%		Aerospace and Defense	1.2	%
Food and Beverage	5.4%		Equipment and Supplies	1.2	%
Broadcasting	4.9%		Agriculture	0.9	%
Health Care	4.4%		Metals and Mining	0.3	%
Hotels and Gaming	3.9%		Wireless Telecommunications Services	0.1	%
Financial Services	3.6%		Telecommunications	0.1	%
Business Services	3.5%		Consumer Services	0.0	%*
Retail	3.4%		Other Assets and Liabilities (Net)	0.4	%
Specialty Chemicals	3.4%			100.0	%
Entertainment	3.2%
Building and Construction	3.2%		*           Amount represents less than 0.05%.

 

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-PORT. 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-PORT 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 800-SEC-0330.

 

Proxy Voting

 

The Fund files Form N-PX with its complete proxy voting record for the twelve months ended June 30, no later than August 31 of each year. A description of the Fund’s proxy voting policies, procedures, and how each 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.

 

The Gabelli Global Mini Mites Fund

Schedule of Investments — June 30, 2022 (Unaudited)

 

 

See accompanying notes to financial statements.

 

The Gabelli Global Mini Mites Fund

Schedule of Investments (Continued) — June 30, 2022 (Unaudited)

 

 

See accompanying notes to financial statements.

 

The Gabelli Global Mini Mites Fund

Schedule of Investments (Continued) — June 30, 2022 (Unaudited)

 

See accompanying notes to financial statements.

 

The Gabelli Global Mini Mites Fund

 

 

See accompanying notes to financial statements.

 

The Gabelli Global Mini Mites Fund

 

Statement of Changes in Net Assets

 

		Six Months Ended June 30, 2022 (Unaudited)				Year Ended December 31, 2021
Operations:
Net investment income/(loss)		$	23,439			$	(11,360	)
Net realized gain on investments and foreign currency transactions			193,780				1,054,404
Net change in unrealized appreciation/depreciation on investments and foreign currency translations			(1,553,921	)			(216,735	)
Net Increase/(Decrease) in Net Assets Resulting from Operations			(1,336,702	)			826,309
Distributions to Shareholders:
Accumulated earnings
Class AAA			—				(10,819	)
Class A			—				(1,727	)
Class C			—				(1,720	)
Class I			—				(884,190	)
Total Distributions to Shareholders			—				(898,456	)
Capital Share Transactions:
Class AAA			(3,203	)			(50,119	)
Class A			—				1,727
Class C			—				1,720
Class I			569,883				2,965,363
Net Increase in Net Assets from Capital Share Transactions			566,680				2,918,691
Redemption Fees			—				21
Net Increase/(Decrease) in Net Assets			(770,022	)			2,846,565
Net Assets:
Beginning of year			6,910,249				4,063,684
End of period		$	6,140,227			$	6,910,249

 

See accompanying notes to financial statements.

 

The Gabelli Global Mini Mites Fund

Financial Highlights

Selected data for a share of capital stock outstanding throughout each period:

					Income (Loss) from Investment Operations												Distributions																					Ratios to Average Net Assets/Supplemental Data
Period Ended December 31		Net Asset Value, Beginning of Period			Net Investment Income (Loss)(a)				Net Realized and Unrealized Gain (Loss) on Investments				Total from Investment Operations				Net Investment Income				Net Realized Gain on Investments				Total Distributions				Redemption Fees(a)(b)			Net Asset Value, End of Period			Total Return†			Net Assets, End of Period (in 000’s)			Net Investment Income (Loss)				Operating Expenses Before Reimbursement				Operating Expenses Net of Reimbursement(c)			Portfolio Turnover Rate
Class AAA
2022(d)		$	11.04		$	0.03			$	(2.03	)		$	(2.00	)		$	—			$	—			$	—			$	—		$	9.04		(18.12	)%		$	65			0.68	%(e)			3.42	%(e)		0.90	%(e)(f)(g)			11	%
2021			10.67			(0.02	)			2.04				2.02				(0.07	)			(1.58	)			(1.65	)			0.00			11.04		19.25			83				(0.17	)			3.49			0.90	(f),(h)			79
2020			9.26			0.05				1.42				1.47				(0.06	)			—				(0.06	)			—			10.67		15.87			120				0.61				9.40			0.90	(f)			63
2019			8.62			0.05				0.94				0.99				(0.04	)			(0.31	)			(0.35	)			—			9.26		11.49			114				0.53				10.81			1.23	(g)			131
2018(i)			10.00			0.01				(1.38	)			(1.37	)			(0.01	)			(0.00	)(b)			(0.01	)			—			8.62		(13.71	)		70				0.45	(e)			44.14	(e)		1.25	(e)			6
Class A
2022(d)		$	11.04		$	0.03			$	(2.03	)		$	(2.00	)		$	—			$	—			$	—			$	—		$	9.04		(18.12	)%		$	11			0.68	%(e)			3.42	%(e)		0.90	%(e)(f)(g)			11	%
2021			10.66			(0.02	)			2.05				2.03				(0.07	)			(1.58	)			(1.65	)			0.00			11.04		19.38			13				(0.18	)			3.49			0.90	(f),(h)			79
2020			9.26			0.05				1.41				1.46				(0.06	)			—				(0.06	)			—			10.66		15.76			11				0.66				9.40			0.90	(f)			63
2019			8.62			0.04				0.95				0.99				(0.04	)			(0.31	)			(0.35	)			—			9.26		11.47			10				0.43				10.81			1.23	(g)			131
2018(i)			10.00			0.01				(1.38	)			(1.37	)			(0.01	)			(0.00	)(b)			(0.01	)			—			8.62		(13.72	)		9				0.41	(e)			44.14	(e)		1.25	(e)			6
Class C
2022(d)		$	11.00		$	0.03			$	(2.02	)		$	(1.99	)		$	—			$	—			$	—			$	—		$	9.01		(18.09	)%		$	11			0.67	%(e)			4.17	%(e)		0.90	%(e)(f)(g)			11	%
2021			10.63			(0.02	)			2.04				2.02				(0.07	)			(1.58	)			(1.65	)			0.00			11.00		19.34			13				(0.18	)			4.24			0.90	(f),(h)			79
2020			9.23			0.05				1.41				1.46				(0.06	)			—				(0.06	)			—			10.63		15.81			11				0.66				10.15			0.90	(f)			63
2019			8.61			(0.02	)			0.95				0.93				(0.00	)(b)			(0.31	)			(0.31	)			—			9.23		10.83			9				(0.25	)			11.56			1.92	(g)			131
2018(i)			10.00			(0.01	)			(1.38	)			(1.39	)			—				(0.00	)(b)			(0.00	)(b)			—			8.61		(13.88	)		8				(0.34	)(e)			44.89	(e)		2.00	(e)			6
Class I
2022(d)		$	11.04		$	0.04			$	(2.04	)		$	(2.00	)		$	—			$	—			$	—			$	—		$	9.04		(18.12	)%		$	6,053			0.69	%(e)			3.17	%(e)		0.90	%(e)(f)(g)			11	%
2021			10.67			(0.02	)			2.04				2.02				(0.07	)			(1.58	)			(1.65	)			0.00			11.04		19.25			6,801				(0.18	)			3.24			0.90	(f),(h)			79
2020			9.26			0.09				1.38				1.47				(0.06	)			—				(0.06	)			—			10.67		15.87			3,922				1.11				9.15			0.90	(f)			63
2019			8.61			0.08				0.94				1.02				(0.06	)			(0.31	)			(0.37	)			—			9.26		11.84			1,605				0.84				10.56			1.00	(g)			131
2018(i)			10.00			0.02				(1.40	)			(1.38	)			(0.01	)			(0.00	)(b)			(0.01	)			—			8.61		(13.76	)		494				0.79	(e)			43.89	(e)		1.00	(e)			6

 

†

Total return represents aggregate total return of a hypothetical investment at the beginning of the period and sold at the end of the period including reinvestment of distributions and does not reflect the applicable sales charges. Total return for a period of less than one year is not annualized.

(a)

Per share amounts have been calculated using the average shares outstanding method.

(b)

Amount represents less than $0.005 per share.

(c)

Under an expense reimbursement agreement with the Adviser, the Adviser reimbursed expenses of $76,445, $147,312, $163,109, $126,588, and $43,899 for the six months ended June 30, 2022 and the years ended December 31, 2021, 2020, and 2019 and the period ended December 31, 2018, respectively.

(d)

For the six months ended June 30, 2022, unaudited.

(e)

Annualized.

(f)

The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses for the six months ended June 30, 2022 and the years ended December 31, 2021 and 2020. If credits had not been received, the ratios of operating expenses to average net assets would have been 0.93%, 0.92%, and 0.96% for each Class, respectively.

(g)

The Fund incurred interest expense. For the six months ended June 30, 2022, the impact was minimal. For the year ended December 31, 2019. If interest expense had not been incurred, the ratio of operating expenses to average net assets would have been 1.22% (Class AAA and Class A),1.90% (Class C), and 0.99% (Class I), respectively.

(h)

The Fund incurred tax expense for the year ended December 31, 2021 and there was no impact on the expense ratios.

(i)

The Fund commenced investment operations on October 1, 2018.

 

See accompanying notes to financial statements.

 

The Gabelli Global Mini Mites Fund

Notes to Financial Statements (Unaudited)

1. Organization. The Gabelli Global Mini Mites Fund, a series of the GAMCO Global Series Funds, Inc. (the Corporation), was incorporated on July 16, 1993 in Maryland. The Fund is a non-diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act), and is one of five separately managed portfolios (collectively, the Portfolios) of the Corporation. The Fund’s primary objective is long term capital appreciation by investing primarily in micro-capitalization equity securities. The Fund commenced investment operations on October 1, 2018.

 

2. Significant Accounting Policies. As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (GAAP) that may require the use of management estimates and assumptions in the preparation of its 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.

 

The global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations, regions, and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially impact the value and performance of the Fund, its ability to buy and sell fund investments at appropriate valuations, and its ability to achieve its investment objectives.

 

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 obligations 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. Such debt obligations are valued through prices provided by a pricing service approved by the Board. Certain securities are valued principally using dealer quotations.

 

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 with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S. dollar value American Depositary Receipt 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.

 

The Fund employs a fair value model to adjust prices to reflect events affecting the values of certain portfolio securities which occur between the close of trading on the principal market for such securities (foreign exchanges

 

The Gabelli Global Mini Mites Fund

Notes to Financial Statements (Unaudited) (Continued)

and over-the-counter markets) at the time when net asset values of the Fund are determined. If the Fund’s valuation committee believes that a particular event would materially affect net asset value, further adjustment is considered. Such securities are classified as Level 2 in the fair value hierarchy presented below.

 

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy 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

●

Level 3 significant unobservable inputs (including the Board’s determinations as to the fair value of investments).

 

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

The Gabelli Global Mini Mites Fund

Notes to Financial Statements (Unaudited) (Continued)

The summary of the Fund’s investments in securities by inputs used to value the Fund’s investments as of June 30, 2022 is as follows:

 

		Valuation Inputs
		Level 1 Quoted Prices			Level 2 Other Significant Observable Inputs			Level 3 Significant Unobservable Inputs (a)			Total Market Value at 06/30/22
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
Business Services		$	213,925		$	391			—		$	214,316
Computer Software and Services			64,936			—		$	52,787			117,723
Consumer Products			483,539			30,388			—			513,927
Entertainment			155,186			43,982			—			199,168
Health Care			270,559			—			0			270,559
Machinery			528,325			—			28,923			557,248
Wireless Telecommunications Services			—			8,007			—			8,007
Other Industries (b)			4,066,918			—			—			4,066,918
Total Common Stocks			5,783,388			82,768			81,710			5,947,866
Convertible Preferred Stocks (b)			42,744			—			—			42,744
Warrants (b)			18,598			—			2,608			21,206
U.S. Government Obligations			—			104,885			—			104,885
TOTAL INVESTMENTS IN SECURITIES – ASSETS		$	5,844,730		$	187,653		$	84,318		$	6,116,701

 

 

(a)

The inputs for these securities are not readily available and are derived based on the judgment of the Adviser according to procedures approved by the Board of Directors.

(b)

Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.

 

During the six months ended June 30, 2022, the Fund did not have material transfers into or out of Level 3.

 

The Gabelli Global Mini Mites Fund

Notes to Financial Statements (Unaudited) (Continued)

The following table reconciles Level 3 investments:

 

		Balance as of 12/31/21				Accrued discounts/ (premiums)			Realized gain/ (loss)			Net Change in unrealized appreciation/ depreciation†				Purchases			Sales			Transfers Into Level 3			Transfers Out of Level 3			Balance as of 06/30/22				Net change in unrealized appreciation/ depreciation during the period on Level 3 investments still held at 06/30/22†
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks (a)		$	91,182			—			—			$	(9,472	)		—			—			—			—			$	81,710			—
Warrants (a)			2,608			—			—				—			—			—			—			—				2,608			—
TOTAL INVESTMENTS IN SECURITIES		$	93,790			—			—			$	(9,472	)		—			—			—			—			$	84,318			—

 

(a)

Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.

†

Net change in unrealized appreciation/depreciation on investments is included in the related amounts in the Statement of Operations.

 

Additional Information to Evaluate Qualitative Information.

 

General. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds are ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

 

Fair Valuation. Fair valued securities may be common or preferred equities, warrants, options, rights, or fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. When fair valuing a security, factors to consider include recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

 

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These may include backtesting the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

 

The Gabelli Global Mini Mites Fund

Notes to Financial Statements (Unaudited) (Continued)

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 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 purchase 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 inability 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 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.

 

Restricted Securities. The Fund may invest up to 15% of its net assets in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than 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. Securities freely saleable among qualified institutional 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. At June 30, 2022, the Fund did not hold any restricted securities.

 

Securities Transactions and Investment Income. Securities transactions are accounted for on the trade date with realized gain/(loss) on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on an accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method or amortized to earliest call date, if applicable. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.

 

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.

 

The Gabelli Global Mini Mites Fund

Notes to Financial Statements (Unaudited) (Continued)

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.

 

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 GAAP. 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 for federal income tax purposes 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 year ended December 31, 2021 was as follows:

 

Distributions paid from:
Ordinary income (inclusive of short term capital gains)		$	564,618
Net long term capital gains			333,838
Total distributions paid		$	898,456

 

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 net unrealized depreciation at June 30, 2022:

 

		Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Depreciation
Investments		$7,146,128		$695,344		$(1,724,771)		$(1,029,427)

 

The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. During the six months ended June 30, 2022, the Fund did not incur any income tax, interest, or penalties. As of June 30, 2022, the Adviser has reviewed all open tax years and concluded that there was no impact to the Fund’s net assets or results of operations. The Fund’s federal and state tax returns for the prior three fiscal years remain open, subject to examination. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.

 

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

 

The Gabelli Global Mini Mites Fund

Notes to Financial Statements (Unaudited) (Continued)

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.

 

Effective December 1, 2019, the Adviser amended its contractual agreement with respect to each share class of the Fund to waive its investment advisory fees and/or to reimburse expenses to the extent necessary to maintain the annualized total operating expenses of the Fund (excluding brokerage costs, acquired fund fees and expenses, interest, taxes, and extraordinary expenses) until at least April 30, 2023, at no more than 0.90% of the value of the Fund’s average daily net assets for each share class of the Fund. During the six months ended June 30, 2022, the Adviser reimbursed the Fund in the amount of $76,445. In addition, the Fund has agreed, during the two year period following any waiver or reimbursement by the Adviser, to repay such amount to the extent, that after giving effect to the repayment, such adjusted annualized total operating expenses (continuing the same foregoing exclusions as above) of the Fund would not exceed 0.90% of the value of the Fund’s average daily net assets for each share class of the Fund. The agreement is renewable annually. At June 30, 2022, the cumulative amount which the Fund may repay the Adviser, subject to the terms above, is $386,866:

 

For the year ended December 31, 2020, expiring December 31, 2022		$	163,109
For the year ended December 31, 2021, expiring December 31, 2023			147,312
For the six months ended June 30, 2022, expiring December 31, 2024			76,445
		$	386,866

 

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. Under the Class AAA, Class A, and Class C Share Plans, payments are authorized to G.distributors, LLC (the Distributor), an affiliate of the Adviser, at annual rates of 0.25%, 0.25%, 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 sales of securities during the six months ended June 30, 2022, other than short term securities and U.S. Government obligations, aggregated $1,406,270 and $721,725, respectively.

 

6. Transactions with Affiliates and Other Arrangements. During the six months ended June 30, 2022, the Fund paid $2,138 in brokerage commissions on security trades to G.research, LLC, an affiliate of the Adviser.

 

During the six months ended June 30, 2022, the Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. The amount of such expenses paid through this directed brokerage arrangement during this period was $947.

 

The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement. Under the sub-administration agreement with Bank of New York Mellon, the fees paid include the cost of calculating the Fund’s NAV. The Fund reimburses the Adviser for this service. The Adviser did not seek a reimbursement during the six months ended June 30, 2022.

 

The Corporation pays retainer and per meeting fees to Directors not affiliated with the Adviser, plus specified amounts to the Lead Director and Audit Committee Chairman. Directors are also reimbursed for out of pocket expenses incurred in attending meetings. Directors who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Corporation.

 

The Gabelli Global Mini Mites Fund

Notes to Financial Statements (Unaudited) (Continued)

7. Line of Credit. The Fund participates in an unsecured line of credit, which expires on March 1, 2023 and may be renewed annually, of up to $75,000,000 under which it may borrow up to 10% of its net assets from the bank for temporary borrowing purposes. Borrowings under this arrangement bear interest at a floating rate equal to the higher of the Overnight Federal Funds Rate plus 135 basis points or the Overnight Bank Funding Rate plus 135 basis points in effect on that day. This amount, if any, would be included in “Interest expense” in the Statement of Operations. At June 30, 2022, there were no borrowings under the line of credit.

 

The average daily amount of borrowings outstanding under the line of credit for the seven days of borrowings during the six months ended June 30, 2022 was $30,571 with a weighted average interest rate of 1.38%. The maximum amount borrowed at any time during the six months ended June 30, 2022 was $159,000.

 

8. Capital Stock. The Fund currently offers three classes of shares – Class AAA Shares, Class A Shares, and Class I Shares. Effective January 27, 2020 (the Effective Date), the Fund’s Class AAA, Class A and Class C Shares “closed to purchases from new investors”. “Closed to purchases from new investors” means (i) with respect to the Class AAA and Class A shares, no new investors may purchase shares of such classes, but existing shareholders may continue to purchase additional shares of such classes after the Effective Date, and (ii) with respect to Class C Shares, neither new investors nor existing shareholders may purchase any additional shares of such class after the Effective Date. These changes had no effect on existing shareholders’ ability to redeem shares of the Fund as described in the Fund’s Prospectus. Additionally, on the Effective Date Class I shares of the Fund became available to investors with a minimum initial investment amount of $1,000 when purchasing shares directly through the Distributor, or investors purchasing Class I shares through brokers or financial intermediaries that have entered into selling agreements with the Distributor specifically with respect to Class I shares.

 

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 as an increase in paid-in capital. The redemption fees retained by the Fund during the six months ended June 30, 2022 and the year ended December 31, 2021, if any, can be found in the Statement of Changes in Net Assets under Redemption Fees.

 

The Gabelli Global Mini Mites Fund

Notes to Financial Statements (Unaudited) (Continued)

Transactions in shares of capital stock were as follows:

 

		Six Months Ended June 30, 2022 (Unaudited)							Year Ended December 31, 2021
		Shares			Amount				Shares			Amount
Class AAA
Shares sold		—				—			167			$	2,000
Shares issued upon reinvestment of distributions		—				—			998				10,819
Shares redeemed		(301	)		$	(3,203	)		(4,919	)			(62,938	)
Net decrease		(301	)		$	(3,203	)		(3,754	)		$	(50,119	)
Class A
Shares issued upon reinvestment of distributions		—				—			159			$	1,727
Net increase		—				—			159			$	1,727
Class C
Shares issued upon reinvestment of distributions		—				—			159			$	1,720
Net increase		—				—			159			$	1,720
Class I
Shares sold		86,924			$	918,205			179,732			$	2,250,080
Shares issued upon reinvestment of distributions		—				—			81,567				884,189
Shares redeemed		(33,544	)			(348,322	)		(13,038	)			(168,906	)
Net increase		53,380			$	569,883			248,261			$	2,965,363

 

9. Significant Shareholder. As of June 30, 2022, approximately 67.3% of the Fund was beneficially owned by the Adviser and its affiliates, including managed accounts for which the affiliates of the Adviser have voting control but disclaim pecuniary interest.

 

10. Indemnifications. The Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

 

11. Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

 

THE GABELLI GLOBAL MINI MITES FUND

One Corporate Center

Rye, NY 10580-1422

 

 

Portfolio Management Team Biographies

 

Mario J. Gabelli, CFA, is Chairman, Chief Executive Officer, and Chief Investment Officer - Value Portfolios of GAMCO Investors, Inc. that he founded in 1977, and Chief Investment Officer - Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc. He is also Executive Chairman of Associated Capital Group, Inc. Mr. Gabelli is a summa cum laude graduate of Fordham University and holds an MBA degree from Columbia Business School and Honorary Doctorates from Fordham University and Roger Williams University.

 

Sarah Donnelly joined Gabelli in 1999 as a junior research analyst working with the consumer staples and media analysts. Currently she is a portfolio manager of Gabelli Funds, LLC, a Senior Vice President, and the Food, Household, and Personal Care products research analyst for Gabelli & Company. In 2013, she was named the Health & Wellness research platform leader. Ms. Donnelly received a BS in Business Administration with a concentration in Finance and minor in History from Fordham University.

 

Ashish Sinha joined GAMCO UK in 2012 as a research analyst. Prior to joining the Firm, Mr. Sinha was a research analyst at Morgan Stanley in London for seven years and has covered European Technology, Mid-Caps and Business Services. He also worked in planning and strategy at Birla Sun Life Insurance in India. Currently Mr. Sinha is a portfolio manager of Gabelli Funds, LLC and an Assistant Vice President of GAMCO Asset Management UK. Mr. Sinha has a BSBA degree from the Institute of Management Studies and an MB from IIFT.

 

Hendi Susanto joined Gabelli in 2007 as the lead technology research analyst. He spent his early career in supply chain management consulting and operations in the technology industry. He currently is a portfolio manager of Gabelli Funds, LLC and a Vice President of Associated Capital Group Inc. Mr. Susanto received a BS degree summa cum laude from the University of Minnesota, an MS from Massachusetts Institute of Technology, and an MBA degree from the Wharton School of Business.

 

Chong-Min Kang joined the Gabelli in 2007 as a research analyst. He currently is a portfolio manager of Gabelli Funds, LLC and a Senior Vice President of GAMCO Investors Inc. Mr. Kang received a BA degree from Boston College and an MBA from the Columbia Business School.

 

 

 

 

 

(b)

Not applicable.

 

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 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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

 

Not applicable.

 

Item 13. 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)(2)(1)

Not applicable.

 

(a)(2)(2)

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 Global Series Funds, Inc.

 

By (Signature and Title)*		/s/ John C. Ball
		John C. Ball, Principal Executive Officer

 

Date

September 7, 2022

  

 

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/ John C. Ball
		John C. Ball, Principal Executive Officer

 

Date

September 7, 2022

 

By (Signature and Title)*		/s/ John C. Ball
		John C. Ball, Principal Financial Officer and Treasurer

 

Date

September 7, 2022

 

^* Print the name and title of each signing officer under his or her signature.