GAMCO Global Series Funds, Inc.
GAMCO Global Series Funds, Inc.
The Gabelli Global Content & Connectivity Fund
The Gabelli Global Growth Fund
The Gabelli International Small Cap Fund
The Gabelli Global Rising Income and Dividend Fund
Gabelli Global Mini MitesTM
Fund
(each a “Fund” and collectively, the “Funds”)
One
Corporate Center
Rye, New
York 10580-1422
800-GABELLI
(800‑422‑3554)
fax: 914‑921‑5118
website: www.gabelli.com
Questions?
Call
800‑GABELLI
or your
investment representative.
GAMCO Global Series Funds, Inc. (the “Corporation”)
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Fund |
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Class |
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Ticker Symbol |
The Gabelli Global |
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AAA |
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GABTX |
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Content &
Connectivity |
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A |
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GTCAX |
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Fund |
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C |
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GTCCX |
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I |
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GTTIX |
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The Gabelli Global |
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AAA |
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GICPX |
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Growth Fund |
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A |
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GGGAX |
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C |
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GGGCX |
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GGGIX |
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The Gabelli International |
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AAA |
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GABOX |
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Small Cap Fund |
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A |
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GOCAX |
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C |
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GGLCX |
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I |
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GLOIX |
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The Gabelli Global Rising |
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AAA |
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GAGCX |
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Income and Dividend |
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A |
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GAGAX |
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Fund |
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C |
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GACCX |
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I |
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GAGIX |
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Gabelli Global |
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AAA |
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GAMNX |
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Mini MitesTM
Fund |
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A |
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GMNAX |
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C |
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GMNCX |
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I |
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GGMMX |
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PROSPECTUS
Beginning
on January 1, 2021, as permitted by regulations adopted by the Securities and
Exchange Commission, paper copies of the Funds’ 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 Funds; website (https://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 Funds, you may call
800-422-3554 or send an email request to [email protected]. Your election to
receive reports on paper will apply to all funds held in your account if you
invest through your financial intermediary or all funds held within the fund
complex if you invest directly with the Funds.
The Securities and
Exchange Commission has not approved or disapproved the shares described in this
prospectus or determined whether this prospectus is accurate or complete. Any
representation to the contrary is a criminal offense.
The GABELLI GLOBAL
CONTENT & CONNECTIVITY FUND
(the “Global Content &
Connectivity Fund”)
Investment Objectives
The Global Content & Connectivity Fund
primarily seeks to provide investors with appreciation of
capital. Current income is a secondary objective of
the Global Content & Connectivity Fund.
Fees and Expenses of the Global Content &
Connectivity Fund:
Effective January 27,
2020 (the “Effective Date”), the Global Content & Connectivity Fund’s
respective Class AAA, Class A, and Class C shares have been “closed to
purchases from new investors.” “Closed to purchases from new investors” means:
(i) with respect to 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. These changes have no effect on
existing shareholders’ ability to redeem shares of the Global Content &
Connectivity Fund as described herein.
This table describes the fees and
expenses that you may pay if you buy and hold shares of the Global Content &
Connectivity Fund. You may
qualify for sales charge discounts on Class A shares if you and your family
invest, or agree to invest in the future, at least $50,000 in
Class A shares of the Gabelli family of mutual funds when and if initial
investments into Class A shares are reopened. More information
about these and other discounts is available from your financial professional
and in the section entitled “Classes of Shares” on page 57 of the
prospectus and in Appendix A, “Sales Charge Reductions and Waivers Available
through Certain Intermediaries,” attached to the Global Content &
Connectivity Fund’s prospectus.
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Class AAA Shares |
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Class A Shares |
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Class C Shares |
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Class I Shares
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Shareholder Fees
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(fees paid directly from
your investment): |
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Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
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None |
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5.75% |
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None |
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None |
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Maximum
Deferred Sales Charge (Load) (as a percentage of redemption price)
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None |
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None |
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1.00% |
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None |
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Maximum
Sales Charge (Load) Imposed on Reinvested Dividends (as a percentage of
amount invested) |
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None |
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None |
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None |
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None |
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Redemption
Fee (as a percentage of amount redeemed for shares held 7 days or
less) |
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2.00% |
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2.00% |
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2.00% |
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2.00% |
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Exchange
Fee |
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None |
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None |
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None |
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None |
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Annual Fund Operating Expenses
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(expenses that you pay each
year as a percentage of the value of your
investment): |
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Management
Fees |
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1.00% |
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1.00% |
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1.00% |
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1.00% |
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Distribution
and Service (Rule 12b‑1) Fees |
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0.25% |
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0.25% |
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1.00% |
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None |
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Other
Expenses |
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0.52% |
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0.52% |
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0.52% |
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0.52% |
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Total
Annual Fund Operating Expenses(1)
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1.77% |
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1.77% |
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2.52% |
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1.52% |
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Fee
Waiver and/or Expense Reimbursement(1)
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(0.87)% |
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(0.87)% |
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(1.62)% |
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(0.62)% |
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Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
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0.90% |
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0.90% |
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0.90% |
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0.90% |
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(1)
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“Other Expenses” are based
on estimated amounts for the current fiscal year. The
Adviser has contractually agreed to waive its investment advisory fees
and/or to reimburse expenses of the Global Content & Connectivity
Fund to the extent necessary to maintain the Total Annual Fund Operating
Expenses After Fee Waiver and Expense Reimbursement (excluding brokerage
costs, acquired fund fees and expenses, interest, taxes, and extraordinary
expenses) at no more than an annual rate of 0.90% for all classes of
shares. Under this same arrangement, the Global Content &
Connectivity Fund has also agreed, during the two year period following
the year of any such waiver or reimbursement by the Adviser, to repay such
amount, but only to the extent the Global Content & Connectivity
Fund’s adjusted Total Annual Fund Operating Expenses would not exceed an
annual rate of 0.90% for the applicable class of shares, after giving
effect to the repayments. This arrangement is in effect through
April 30,
2022, and may be terminated only by the Board of Directors
of the Corporation (the “Board”) before such time. The Global Content
& Connectivity Fund will carry forward any fees and expenses in excess
of the expense limitation and repay the Adviser such amount provided the
Global Content & Connectivity Fund is able to do so without exceeding
the lesser of (1) the expense limit in effect at the time of the
waiver or reimbursement, as applicable, or (2) the expense limit in
effect at the time of recoupment after giving effect to the repayment.
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2
Expense Example
This example
is intended to help you compare the cost of investing in the Global Content
& Connectivity Fund with the cost of investing in other mutual funds.
The example
assumes that you invest $10,000 in the Global Content & Connectivity Fund
for the time periods indicated and then redeem all of your shares at the end of
those periods. The example assumes a waiver of expenses through the date of the
expiration of the waiver, and reflects Total Annual Fund Operating Expenses
following the date of the expiration of the waiver. The example also assumes
that your investment has a 5% return each year and that the Global Content &
Connectivity Fund’s operating expenses remain the same. Although your actual
costs may be higher or lower, based on these assumptions your costs would be:
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1 Year |
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3 Years |
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5 Years |
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10 Years |
Class
AAA Shares |
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$
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92 |
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$
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472 |
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$
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878 |
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$
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2,012 |
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Class
A Shares |
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$
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662 |
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$
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1,020 |
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$
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1,402 |
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$
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2,471 |
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Class
C Shares |
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$
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192 |
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$
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630 |
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$
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1,194 |
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$
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2,733 |
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Class
I Shares |
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$
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92 |
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$
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419 |
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$
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770 |
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$
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1,760 |
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You would pay the following
expenses if you did not redeem your shares of the Global Content &
Connectivity Fund:
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1 Year |
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3 Years |
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5 Years |
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10 Years |
Class
AAA Shares |
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$
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92 |
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$
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472 |
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$
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878 |
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$
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2,012 |
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Class
A Shares |
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$
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662 |
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$
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1,020 |
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$
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1,402 |
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$
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2,471 |
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Class
C Shares |
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$
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92 |
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$
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630 |
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$
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1,194 |
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$
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2,733 |
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Class
I Shares |
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$
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92 |
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$
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419 |
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$
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770 |
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$
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1,760 |
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Portfolio Turnover
The Global
Content & Connectivity Fund pays transaction costs, such as commissions,
when it buys and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs and may result in
higher taxes when the Global Content & Connectivity Fund’s shares are held
in a taxable account. These costs, which are not reflected in the annual fund
operating expenses or in the example, affect the Global Content &
Connectivity Fund’s performance. During the most recent fiscal year, the Global
Content & Connectivity Fund’s portfolio turnover rate was 41% of the average value of its portfolio.
Principal Investment
Strategies
Under normal market conditions, the
Global Content & Connectivity Fund will invest its net assets in common
stocks of companies in the telecommunications, media, and information technology
industries which Gabelli Funds, LLC, the Global Content & Connectivity
Fund’s investment adviser (the “Adviser”), believes are likely to have rapid
growth in revenues and earnings and potential for above average capital
appreciation or are undervalued. The Global Content &
Connectivity Fund invests primarily in common stocks of foreign and domestic
small-capitalization, mid‑capitalization, and large-capitalization issuers. As a
“global” fund, the Global Content & Connectivity Fund invests in
securities of issuers, or related
3
investments
thereof, located in at least three countries, and at least 40% of the Global
Content & Connectivity Fund’s total net assets is invested in
securities of non‑U.S. issuers or related investments thereof. In selecting
investments, the Adviser also considers the market price of the issuer’s
securities, its balance sheet characteristics and the perceived strength of its
management. In accordance with its existing concentration policy, the Global
Content & Connectivity Fund will continue to 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.
The
companies in which the Global Content & Connectivity Fund may invest
are engaged in the following products, services, or activities:
telecommunications services (including data, video, voice, advanced IP‑based
services, corporate networking solutions, messaging and other communication and
connectivity applications based on established and emerging technologies);
telecommunications infrastructure and equipment; media & entertainment
(including television; radio; cable networks; filmed, live, and digital
entertainment; advertising; publishing; emerging forms of digital and
interactive content; eSports; and eGaming); consumer electronics;
e‑commerce & information technology (including Internet software and
services; application, systems, and home entertainment software; IT consulting,
data processing, and technology hardware and equipment). Additional
cross-industry investment focus areas include: cloud computing, The Internet of
Things (“IoT”) (including solutions related to connected vehicle, connected
home, smart city, smart grid), Big Data, artificial intelligence, machine
learning, robotics, cybersecurity, virtual reality, augmented reality, digital
convergence, biometric and wearable devices, eHealth, eGovernment, financial
technology, over‑the‑top (“OTT”) content and applications, and
software‑as‑a‑service (“SaaS”).
Principal Risks
You may want to
invest in the Global Content & Connectivity Fund if:
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you
are a long term investor
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you
seek growth of capital
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you
seek to diversify your investments outside the U.S.
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The Global
Content & Connectivity Fund’s share price will fluctuate with changes in the
market value of the Global Content & Connectivity Fund’s portfolio
securities. Stocks are subject to market, economic, and business risks that may
cause their prices to fluctuate. An investment in the Global
Content & Connectivity Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. When you sell Global Content & Connectivity Fund
shares, they may be worth less than what you paid for them; you may lose money
by investing in the Global Content & Connectivity Fund.
In addition
to the risks generally applicable to all Funds set forth in the Prospectus and
SAI, investing in the Global Content & Connectivity Fund will particular
involve the following risks:
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Concentration
Risk. Because the Global Content &
Connectivity Fund will invest at least 25% of its total assets in
securities of companies in the telecommunications related industry, and
will otherwise focus its investments in the media and information
technology industries, the Global Content & Connectivity Fund may
be subject to greater volatility with respect to its portfolio securities
than a fund that is more broadly diversified. Accordingly, the Global
Content & |
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Connectivity
Fund is subject to the risk that its performance may be hurt
disproportionately by the poor performance of relatively few securities.
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Equity
Risk. Equity risk is the risk that the
prices of the securities held by the Global Content & Connectivity
Fund will change due to general market and economic conditions,
perceptions regarding the industries in which the companies issuing the
securities participate and the issuer company’s particular circumstances.
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Coronavirus (“COVID-19”) and Global Health
Events. COVID-19 and concerns about its
rapid spread and infections have severely impacted business activity in
virtually all economies, markets, and sectors and negatively impacted the
value of many financial and other assets. The duration of the COVID-19
outbreak and its effects cannot be determined with certainty. These events
could have a significant impact on the Global Content & Connectivity
Fund’s performance, as well as the performance and viability of issuers in
which it invests. |
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Foreign Securities
Risk. Investments in foreign securities
involve risks relating to political, social, and economic developments
abroad, as well as risks resulting from the differences between the
regulations to which U.S. and foreign issuers and markets are subject.
These risks include expropriation, differing accounting and disclosure
standards, currency exchange risks, settlement difficulties, market
illiquidity, difficulties enforcing legal rights, and greater transaction
costs. These risks are more pronounced in the securities of companies
located in emerging markets.
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Emerging Market
Risk. Foreign securities risks are more
pronounced in emerging markets. Investments in emerging markets may
experience sharp price swings, as there may be less government supervision
and regulation of business in such markets, and may entail risks relating
to political and economic instability and expropriation, nationalization,
confiscation or the imposition of restrictions on foreign investment, lack
of hedging instruments, and restrictions on repatriation of capital
invested. Securities markets in emerging markets may be less liquid and
developed than those in the United States, potentially making prices
erratic. Economic or political crises may detrimentally affect investments
in emerging markets. Emerging market countries may experience substantial
rates of inflation or deflation. The economies of developing countries
tend to be dependent upon international trade. There may be little
financial information available about emerging market issuers, and it may
be difficult to obtain or enforce a judgment against them. Other risks
include a high concentration of investors, financial intermediaries, and
market capitalization and trading volume in a small number of issuers and
industries; vulnerability to changes in commodity prices due to
overdependence on exports, including gold and natural resources,
overburdened infrastructure and obsolete or unseasoned financial systems;
environmental problems; less developed legal systems; and less reliable
securities custodial services and settlement practices. For all of these
reasons, investments in emerging markets may be considered speculative.
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Currency
Risk. Fluctuations in exchange rates between
the U.S. dollar and foreign currencies may negatively affect an
investment. Adverse changes in exchange rates may erode or reverse any
gains produced by foreign currency denominated investments and may widen
any losses. The Global Content & Connectivity Fund may, but is
not required to, seek to reduce currency risk by hedging part or all of
its exposure to various foreign currencies. In addition, the Global
Content & Connectivity Fund’s investments could be adversely
affected by delays in, or a refusal to grant, repatriation of funds or
conversion of emerging market currencies.
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Depositary
Receipts. The Global Content &
Connectivity Fund may invest in non‑U.S. equity securities through
depositary receipts, including ADRs, EDRs, GDRs and other similar global
instruments. While ADRs, EDRs and GDRs may not necessarily be denominated
in the same currency as the securities into which they may be converted,
many of the risks associated with foreign (non‑U.S.) securities may also
apply to ADRs, EDRs and GDRs. In addition, the underlying issuers of
certain depositary receipts, particularly unsponsored or unregistered
depositary receipts, are under no obligation to distribute shareholder
communications to the holders of such receipts, or to pass through to them
any voting rights with respect to the deposited securities. Depositary
receipts that are not sponsored by the issuer may be less liquid and there
may be less readily available public information about the issuer.
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Industry Risk. Telecommunications — The
telecommunications industry is subject to governmental regulation and a
greater price volatility than the overall market, and telecommunications
companies can be adversely affected by, among other things, changes in
government regulation, intense competition, dependency on patent
protection, significant capital expenditures, heavy debt burdens, rapid
obsolescence of products and services due to product compatibility or
changing consumer preferences and strong market reactions to technological
developments throughout the industry, among other things. In addition,
companies in which the Global Content & Connectivity Fund invests
may be adversely affected by lack of commercial acceptance of a new
product or process or by technological change and obsolescence.
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Media — Companies engaged in the design,
production or distribution of goods or services for the media industry may
become obsolete quickly. Media companies are subject to risks that include
cyclicality of revenues and earnings, a decrease in the discretionary income of
targeted individuals, changing consumer tastes and interests, fierce competition
in the industry and the potential for increased government regulation.
Additionally, intellectual property rights are very important to many media
companies and the expiration of intellectual property rights or other events
that adversely affect a media company’s intellectual property rights may
materially and adversely affect the value of its securities.
Information Technology — The market prices of
technology and technology-related stocks tend to exhibit a greater degree of
market risk and price volatility than other types of investments. These stocks
also may be affected adversely by changes in technology, consumer and business
purchasing patterns, short product cycles, falling prices and profits,
government regulation, lack of standardization or compatibility with existing
technologies, intense competition, aggressive pricing, dependence on copyright
and/or patent protection and/or obsolete products or services. As a result,
these factors may negatively affect the performance of the Global
Content & Connectivity Fund.
These risks
may be heightened for telecommunications, media, and technology companies in
foreign markets.
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Growth Stock
Risk. Securities of growth companies may be
more volatile since such companies usually invest a high portion of
earnings in their business, and they may lack the dividends of value
stocks that can cushion stock prices in a falling market.
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Issuer Risk. The
value of a security may decline for a number of reasons that directly
relate to an issuer, such as management performance, financial leverage,
and reduced demand for the
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issuer’s
goods or services, as well as the historical and prospective earnings of
the issuer and the value of its assets or factors unrelated to the
issuer’s value, such as investor perception.
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Management
Risk. If the portfolio managers are
incorrect in their assessment of the growth prospects of the securities
the Global Content & Connectivity Fund holds, then the value of the
Global Content & Connectivity Fund’s shares may decline.
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Non-Diversification
Risk. As a non‑diversified mutual fund, more
of the Global Content & Connectivity Fund’s assets may be focused
in the common stocks of a small number of issuers, which may make the
value of the Global Content & Connectivity Fund’s shares more
sensitive to changes in the market value of a single issuer or industry
and more susceptible to risks associated with a single economic,
political, or regulatory event than a diversified
fund. |
|
•
|
|
Smaller Capitalization
Risk. Risk is greater for the securities of
smaller capitalization companies (including small unseasoned companies
that have been in operation for less than three years) because they
generally are more vulnerable than larger companies to adverse business or
economic developments and they may have more limited resources.
|
Performance
The bar chart
and table that follow provide an indication of the risks of investing in the
Global Content & Connectivity Fund by showing changes in the Global Content
& Connectivity Fund’s performance from year to year and by showing how the
Global Content & Connectivity Fund’s average annual returns for one year,
five years, and ten years compared with those of broad based securities market
indices. As with all mutual funds, the
Global Content & Connectivity Fund’s past performance (before and after
taxes) does not predict how the Global Content & Connectivity Fund will
perform in the future. Updated information on the Global Content
& Connectivity Fund’s results can be obtained by visiting www.gabelli.com.
GLOBAL CONTENT &
CONNECTIVITY FUND
(Total Returns for Class AAA
Shares for the Years Ended December 31)
7
During the calendar years shown in the bar
chart, the highest return for a
quarter was 19.01% (quarter ended June 30, 2020), and
the lowest return for a quarter
was (21.79)% (quarter ended March 31,
2020).
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns
(for
the years ended December 31,
2020
with maximum sales charge, if applicable)
|
|
Past One Year |
|
Past Five Years |
|
Past Ten Years |
Global
Content & Connectivity Fund Class AAA Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
Before Taxes |
|
|
|
16.42 |
%
|
|
|
|
6.66 |
%
|
|
|
|
5.52 |
%
|
Return
After Taxes on Distributions |
|
|
|
15.36 |
%
|
|
|
|
5.25 |
%
|
|
|
|
4.55 |
%
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
|
10.08 |
%
|
|
|
|
5.00 |
%
|
|
|
|
4.35 |
%
|
Class
A Shares Return Before Taxes |
|
|
|
9.74 |
%
|
|
|
|
5.37 |
%
|
|
|
|
4.88 |
%
|
Class
C Shares Return Before Taxes |
|
|
|
15.44 |
%
|
|
|
|
6.03 |
%
|
|
|
|
4.82 |
%
|
Class
I Shares Return Before Taxes |
|
|
|
16.42 |
%
|
|
|
|
7.17 |
%
|
|
|
|
5.91 |
%
|
MSCI
AC World Communication Services Index (reflects no deduction for fees,
expenses, or taxes) |
|
|
|
24.08 |
%
|
|
|
|
9.96 |
%
|
|
|
|
7.92 |
%
|
MSCI
AC World Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
|
16.25 |
%
|
|
|
|
12.26 |
%
|
|
|
|
9.13 |
%
|
After‑tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
In some instances, the
“Return After Taxes on Distributions and Sale of Fund Shares” may be greater
than the “Return After Taxes on Distributions” because the investor is assumed
to be able to use the capital loss from the sale of Fund shares to offset other
taxable gains. Actual after‑tax returns
depend on an investor’s tax situation and may differ from those shown. After‑tax
returns shown are not relevant to investors who hold their Fund shares through
tax deferred arrangements, such as 401(k) plans or individual retirement
accounts, including Roth IRAs and SEP IRAs (collectively,
“IRAs”). After‑tax returns are shown
only for Class AAA shares. Actual after‑tax returns for other classes will
vary due to the differences in expenses.
Management
The
Adviser. Gabelli Funds, LLC
The Portfolio
Managers. Sergey Dluzhevskiy, CPA, CFA, has served as associate
portfolio manager of the Global Content & Connectivity Fund since 2006. Evan
Miller, CFA, has served as associate portfolio manager of the Global Content
& Connectivity Fund since 2002.
Purchase and Sale of
Fund Shares
Effective
January 27, 2020, the Global Content & Connectivity Fund’s respective Class
AAA, Class A, and Class C Shares have been “closed to purchases from new
investors,” as described above.
The minimum
initial investment for Class AAA, Class A, and Class C shares will be $1,000
($250 for IRAs or Coverdell Education Savings Plans) when and if initial
investments into Class AAA, A, and C shares are reopened. When and if initial
investments into Class AAA, A, and C shares are reopened, there will be no
minimum initial investment for Class AAA, Class A, and Class C shares in an
automatic monthly investment plan. Class I shares are available to investors
with a minimum investment of $1,000 when purchasing shares directly through
G.distributors, LLC, the Global Content & Connectivity Fund’s distributor
(“G.distributors” or the “Distributor”), or investors purchasing Class I shares
through brokers or financial intermediaries that have entered into selling
agreements with the Distributor specifically with
8
respect to
Class I shares, and which have different minimum investment amounts. The minimum
initial investment for Class I shares is waived for employee benefit plans with
assets of at least $50 million. If you transact in Class I shares through a
broker or financial intermediary, you may be required to pay a commission and/or
other forms of compensation to the broker or financial intermediary. The
Distributor reserves the right to waive or change minimum investment amounts.
There is no minimum for subsequent investments.
Since the
minimum initial investment amount for the Global Content & Connectivity
Fund’s Class I shares purchased directly through the Distributor is the same as
that for all other classes of the Global Content & Connectivity Fund’s
shares, shareholders still eligible to purchase Class AAA and Class A shares of
the Global Content & Connectivity Fund on or after the Effective Date should
instead consider purchasing Class I shares since Class I shares carry no sales
load and no ongoing distribution fees. Investors and shareholders who wish to
purchase shares of the Global Content & Connectivity Fund through a broker
or financial intermediary should consult their broker or financial intermediary
with respect to the purchase of shares of the Global Content & Connectivity
Fund. Please refer to the Global Content & Connectivity Fund’s statutory
prospectus for additional information about share class conversions and
exchanges among funds managed by the Adviser or its affiliates.
You can
purchase or redeem shares of the Global Content & Connectivity Fund on any
day the New York Stock Exchange (“NYSE”) is open for trading (a “Business Day”).
You may purchase or redeem Global Content & Connectivity Fund shares by
written request via mail (The Gabelli Funds, P.O. Box 219204, Kansas City, MO
64121-9204), personal or overnight delivery (The Gabelli Funds, c/o DST Asset
Manager Solutions, Inc., 430 W 7th Street STE
219204, Kansas City, MO 64105-1407), Internet, bank wire, or Automated Clearing
House (“ACH”) system. You may also purchase Fund shares by telephone if you have
an existing account with banking instructions on file at 800-GABELLI
(800-422-3554).
Shares of
the Global Content & Connectivity Fund can also be purchased or sold through
registered broker-dealers or financial intermediaries that have entered into
appropriate selling agreements with the Distributor. The broker-dealer or other
financial intermediary will transmit these transaction orders to the Global
Content & Connectivity Fund on your behalf and send you confirmation of your
transactions and periodic account statements showing your investments in the
Global Content & Connectivity Fund.
Tax Information
The Global
Content & Connectivity Fund expects that distributions will generally be
taxable as ordinary income or long term capital gains, unless you are investing
through a tax deferred arrangement, such as a 401(k) plan or an IRA.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you
purchase shares of the Global Content & Connectivity Fund through a
broker-dealer or other financial intermediary (such as a bank), the Global
Content & Connectivity Fund and its related companies may pay the
intermediary for the sale of Global Content & Connectivity Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Global Content & Connectivity Fund over another investment.
For more information, turn to “Third Party Arrangements” on page 64 of the
prospectus. Ask your salesperson or visit your financial intermediary’s website
for more information.
9
The GABELLI GLOBAL
GROWTH FUND
(the “Global Growth
Fund”)
Investment Objectives
The Global Growth Fund primarily seeks to
provide investors with appreciation of capital. Current income is a secondary objective of
the Global Growth Fund.
Fees and Expenses of the Global Growth
Fund:
Effective
January 27, 2020 (the “Effective Date”), the Global Growth Fund’s respective
Class AAA, Class A, and Class C shares have been “closed to purchases from
new investors.” “Closed to purchases from new investors” means: (i) with respect
to 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. These changes have no effect on existing shareholders’
ability to redeem shares of the Global Growth Fund as described herein.
This table
describes the fees and expenses that you may pay if you buy and hold shares of
the Global Growth Fund. You may qualify for sales charge discounts
on Class A shares if you and your family invest, or agree to invest in the
future, at least $50,000 in Class A shares of the
Gabelli family of mutual funds when and if initial investments into Class A
shares are reopened. More information about these and other
discounts is available from your financial professional and in the section
entitled “Classes of Shares” on page 57 of the prospectus and in Appendix
A, “Sales Charge Reductions and Waivers Available through Certain
Intermediaries,” attached to the Global Growth Fund’s
prospectus.
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|
|
|
|
|
|
Class AAA Shares |
|
Class A Shares |
|
Class C Shares |
|
Class I Shares |
Shareholder
Fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(fees paid directly from
your investment): |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
None |
|
|
|
|
5.75% |
|
|
|
|
None |
|
|
|
|
None |
|
Maximum
Deferred Sales Charge (Load) (as a percentage of redemption
price) |
|
|
|
None |
|
|
|
|
None |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends (as a percentage of
amount invested) |
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
Redemption
Fee (as a percentage of amount redeemed for shares held 7 days or
less) |
|
|
|
2.00% |
|
|
|
|
2.00% |
|
|
|
|
2.00% |
|
|
|
|
2.00% |
|
Exchange
Fee |
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
|
|
|
|
|
|
Annual Fund Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(expenses that are deducted
from Fund assets): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
Fees |
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
1.00% |
|
Distribution
and Service (Rule 12b‑1) Fees |
|
|
|
0.25% |
|
|
|
|
0.25% |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Other
Expenses |
|
|
|
0.32% |
|
|
|
|
0.32% |
|
|
|
|
0.32% |
|
|
|
|
0.32% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses(1) |
|
|
|
1.57% |
|
|
|
|
1.57% |
|
|
|
|
2.32% |
|
|
|
|
1.32% |
|
Fee
Waiver and/or Expense Reimbursement(1) |
|
|
|
(0.67)% |
|
|
|
|
(0.67)% |
|
|
|
|
(1.42)% |
|
|
|
|
(0.42)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses after Fee Waiver and/or Expense
Reimbursement |
|
|
|
0.90% |
|
|
|
|
0.90% |
|
|
|
|
0.90% |
|
|
|
|
0.90% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
“Other Expenses” are based
on estimated amounts for the current fiscal year. The
Adviser has contractually agreed to waive its investment advisory fees
and/or to reimburse expenses of the Global Growth Fund to the extent
necessary to maintain the Total Annual Fund Operating Expenses After Fee
Waiver and Expense Reimbursement (excluding brokerage costs, acquired fund
fees and expenses, interest, taxes, and extraordinary expenses) at no more
than an annual rate of 0.90% for all classes of shares. Under this same
arrangement, the Global Growth Fund has also agreed, during the two year
period following the year of any such waiver or reimbursement by the
Adviser, to repay such amount, but only to the extent the Global Growth
Fund’s adjusted Total Annual Fund Operating Expenses would not exceed an
annual rate of 0.90% for the applicable class of shares, after giving
effect to the repayments. This arrangement is in effect through
April 30,
2022, and may be terminated only by the Board of Directors
of the Corporation (the “Board”) before such time. The Global Growth Fund
will carry forward any fees and expenses in excess of the expense
limitation and repay the Adviser such amount provided the Global Growth
Fund is able to do so without exceeding the lesser of (1) the expense
limit in effect at the time of the waiver or reimbursement, as applicable,
or (2) the expense limit in effect at the time of recoupment after
giving effect to the
repayment. |
10
Expense Example
This example
is intended to help you compare the cost of investing in the Global Growth Fund
with the cost of investing in other mutual funds.
The example
assumes that you invest $10,000 in the Global Growth Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example assumes a waiver of expenses through the date of the expiration of the
waiver, and reflects Total Annual Fund Operating Expenses following the date of
the expiration of the waiver. The example also assumes that your investment has
a 5% return each year and that the Global Growth Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class AAA
Shares |
|
|
$ |
92 |
|
|
|
$ |
430 |
|
|
|
$ |
792 |
|
|
|
$ |
1,811 |
|
Class A
Shares |
|
|
$ |
662 |
|
|
|
$ |
980 |
|
|
|
$ |
1,321 |
|
|
|
$ |
2,281 |
|
Class
C Shares |
|
|
$ |
192 |
|
|
|
$ |
588 |
|
|
|
$ |
1,111 |
|
|
|
$ |
2,546 |
|
Class
I Shares |
|
|
$ |
92 |
|
|
|
$ |
377 |
|
|
|
$ |
683 |
|
|
|
$ |
1,554 |
|
You would pay the following
expenses if you did not redeem your shares of the Global Growth
Fund:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class AAA
Shares |
|
|
$ |
92 |
|
|
|
$ |
430 |
|
|
|
$ |
792 |
|
|
|
$ |
1,811 |
|
Class A
Shares |
|
|
$ |
662 |
|
|
|
$ |
980 |
|
|
|
$ |
1,321 |
|
|
|
$ |
2,281 |
|
Class
C Shares |
|
|
$ |
92 |
|
|
|
$ |
588 |
|
|
|
$ |
1,111 |
|
|
|
$ |
2,546 |
|
Class
I Shares |
|
|
$ |
92 |
|
|
|
$ |
377 |
|
|
|
$ |
683 |
|
|
|
$ |
1,554 |
|
Portfolio Turnover
The Global
Growth Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when the Global
Growth Fund’s shares are held in a taxable account. These costs, which are not
reflected in the annual fund operating expenses or in the example, affect the
Global Growth Fund’s performance. During the most recent fiscal year, the Global
Growth Fund’s portfolio turnover rate was 50% of the average value of its portfolio.
Principal Investment
Strategies
Under normal
market conditions, the Global Growth Fund will invest at least 65% of its total
assets in common stocks of companies which the portfolio manager believes 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
Global Growth Fund invests in securities of issuers, or related investments
thereof, located in at least three countries, and at least 40% of the Global
Growth Fund’s total net assets is invested in securities of non‑U.S. issuers or
related investments thereof.
To achieve
the Global Growth Fund’s primary objective of capital appreciation, the Adviser
employs a disciplined investment program focusing on the globalization and
interactivity of the world’s market place. The Global Growth Fund invests in
companies at the forefront of accelerated growth.
11
The Global Growth Fund invests
primarily in common stocks of foreign and domestic mid‑capitalization and
large-capitalization issuers. In addition to growth rates, stock valuation
levels are important in the stock selection process as the Global Growth Fund
seeks stocks that are attractively priced relative to their projected growth
rates. The Global Growth Fund seeks to build a portfolio diversified by
geographic region, industry sectors and individual issues within industry
sectors. The Global Growth Fund invests primarily in developed markets but may
invest in emerging markets as well. The Global Growth Fund invests in companies
with a wide range in market capitalizations, from small to
large.
Principal Risks
You may want to
invest in the Global Growth Fund if:
|
• |
|
you
are a long term investor
|
|
• |
|
you
seek growth of capital
|
|
• |
|
you
seek to diversify your investments outside the U.S.
|
The Global
Growth Fund’s share price will fluctuate with changes in the market value of the
Global Growth Fund’s portfolio securities. Stocks are subject to market,
economic, and business risks that may cause their prices to fluctuate.
An
investment in the Global Growth Fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. When you sell Global Growth Fund shares, they may be
worth less than what you paid for them; you may lose money by investing in the
Global Growth Fund.
Investing in
the Global Growth Fund involves the following risks:
|
• |
|
Equity
Risk. Equity risk is the risk that the
prices of the securities held by the Global Growth Fund will change due to
general market and economic conditions, perceptions regarding the
industries in which the companies issuing the securities participate and
the issuer company’s particular circumstances.
|
|
• |
|
Growth Stock
Risk. Securities of growth companies may be
more volatile since such companies usually invest a high portion of
earnings in their business, and they may lack the dividends of value
stocks that can cushion stock prices in a falling market.
|
|
• |
|
Coronavirus (“COVID-19”) and Global Health
Events. COVID-19 and concerns about its
rapid spread and infections have severely impacted business activity in
virtually all economies, markets, and sectors and negatively impacted the
value of many financial and other assets. The duration of the COVID-19
outbreak and its effects cannot be determined with certainty. These events
could have a significant impact on the Global Growth Fund’s performance,
as well as the performance and viability of issuers in which it invests.
|
|
• |
|
Foreign Securities
Risk. Investments in foreign securities
involve risks relating to political, social, and economic developments
abroad, as well as risks resulting from the differences between the
regulations to which U.S. and foreign issuers and markets are subject.
These risks include expropriation, differing accounting and disclosure
standards, currency exchange risks, settlement difficulties, market
illiquidity, difficulties enforcing legal rights, and greater transaction
costs. These risks are more pronounced in the securities of companies
located in emerging markets.
|
12
|
• |
|
Emerging Market
Risk. Foreign securities risks are more
pronounced in emerging markets. Investments in emerging markets may
experience sharp price swings, as there may be less government supervision
and regulation of business in such markets, and may entail risks relating
to political and economic instability and expropriation, nationalization,
confiscation or the imposition of restrictions on foreign investment, lack
of hedging instruments, and restrictions on repatriation of capital
invested. Securities markets in emerging markets may be less liquid and
developed than those in the United States, potentially making prices
erratic. Economic or political crises may detrimentally affect investments
in emerging markets. Emerging market countries may experience substantial
rates of inflation or deflation. The economies of developing countries
tend to be dependent upon international trade. There may be little
financial information available about emerging market issuers, and it may
be difficult to obtain or enforce a judgment against them. Other risks
include a high concentration of investors, financial intermediaries, and
market capitalization and trading volume in a small number of issuers and
industries; vulnerability to changes in commodity prices due to
overdependence on exports, including gold and natural resources,
overburdened infrastructure and obsolete or unseasoned financial systems;
environmental problems; less developed legal systems; and less reliable
securities custodial services and settlement practices. For all of these
reasons, investments in emerging markets may be considered speculative.
|
|
• |
|
Currency
Risk. Fluctuations in exchange rates between
the U.S. dollar and foreign currencies may negatively affect an
investment. Adverse changes in exchange rates may erode or reverse any
gains produced by foreign currency denominated investments and may widen
any losses. The Global Growth Fund may, but is not required to, seek to
reduce currency risk by hedging part or all of its exposure to various
foreign currencies. In addition, the Global Growth Fund’s investments
could be adversely affected by delays in, or a refusal to grant,
repatriation of funds or conversion of emerging market currencies.
|
|
• |
|
Depositary
Receipts. The Global Growth Fund may invest
in non‑U.S. equity securities through depositary receipts, including ADRs,
EDRs, GDRs and other similar global instruments. While ADRs, EDRs and GDRs
may not necessarily be denominated in the same currency as the securities
into which they may be converted, many of the risks associated with
foreign (non‑U.S.) securities may also apply to ADRs, EDRs and GDRs. In
addition, the underlying issuers of certain depositary receipts,
particularly unsponsored or unregistered depositary receipts, are under no
obligation to distribute shareholder communications to the holders of such
receipts, or to pass through to them any voting rights with respect to the
deposited securities. Depositary receipts that are not sponsored by the
issuer may be less liquid and there may be less readily available public
information about the issuer.
|
|
• |
|
Issuer Risk. The
value of a security may decline for a number of reasons that directly
relate to an issuer, such as management performance, financial leverage,
and reduced demand for the issuer’s goods or services, as well as the
historical and prospective earnings of the issuer and the value of its
assets or factors unrelated to the issuer’s value, such as investor
perception. |
|
• |
|
Management
Risk. If the portfolio managers are
incorrect in their assessment of the growth prospects of the securities
the Global Growth Fund holds, then the value of the Global Growth Fund’s
shares may decline. |
13
|
• |
|
Non‑Diversification
Risk. As a non‑diversified mutual fund, more
of the Global Growth Fund’s assets may be focused in the common stocks of
a small number of issuers, which may make the value of the Global Growth
Fund’s shares more sensitive to changes in the market value of a single
issuer or industry and more susceptible to risks associated with a single
economic, market, political or regulatory occurrence than shares of a
diversified mutual
fund. |
|
• |
|
Smaller Capitalization
Risk. Risk is greater for the securities of
smaller capitalization companies (including small unseasoned companies
that have been in operation for less than three years) because such
companies generally are more vulnerable than larger companies to adverse
business or economic developments and they may have more limited
resources.
|
Performance
The bar chart
and table that follow provide an indication of the risks of investing in the
Global Growth Fund by showing changes in the Global Growth Fund’s performance
from year to year and by showing how the Global Growth Fund’s average annual
returns for one year, five years, and ten years compared with those of broad
based securities market indices. As with all mutual funds, the
Global Growth Fund’s past performance (before and after taxes) does not predict
how the Global Growth Fund will perform in the future. Updated
information on the Global Growth Fund’s results can be obtained by visiting
www.gabelli.com.
GLOBAL GROWTH FUND
(Total Returns for Class AAA Shares for the Years
Ended December 31)
During the calendar years shown in the bar
chart, the highest return for a
quarter was 24.94% (quarter ended June 30,
2020), and the lowest return for a quarter
was (19.20)% (quarter ended September 30,
2011).
14
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|
Average Annual Total
Returns
(for the years
ended December 31, 2020
with maximum sales charge, if applicable) |
|
Past One Year |
|
Past Five Years |
|
Past Ten Years |
Global
Growth Fund Class AAA Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
Before Taxes |
|
|
|
35.43 |
% |
|
|
|
17.58 |
% |
|
|
|
12.87 |
% |
Return
After Taxes on Distributions |
|
|
|
34.68 |
% |
|
|
|
15.95 |
% |
|
|
|
11.47 |
% |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
|
21.51 |
% |
|
|
|
13.78 |
% |
|
|
|
10.27 |
% |
Class
A Shares Return Before Taxes |
|
|
|
27.60 |
% |
|
|
|
16.19 |
% |
|
|
|
12.20 |
% |
Class
C Shares Return Before Taxes |
|
|
|
34.41 |
% |
|
|
|
16.88 |
% |
|
|
|
12.12 |
% |
Class
I Shares Return Before Taxes |
|
|
|
35.39 |
% |
|
|
|
18.05 |
% |
|
|
|
13.31 |
% |
MSCI
AC World Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
16.25 |
% |
|
|
|
12.26 |
% |
|
|
|
9.13 |
% |
Lipper
Global Large Cap Growth Fund Classification |
|
|
|
27.59 |
% |
|
|
|
15.43 |
% |
|
|
|
11.31 |
% |
After‑tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
In some instances, the
“Return After Taxes on Distributions and Sale of Fund Shares” may be greater
than the “Return After Taxes on Distributions” because the investor is assumed
to be able to use the capital loss from the sale of Fund shares to offset other
taxable gains. Actual after‑tax returns
depend on an investor’s tax situation and may differ from those shown. After‑tax
returns shown are not relevant to investors who hold their Global Growth Fund
shares through tax deferred arrangements, such as 401(k) plans or individual
retirement accounts, including Roth IRAs and SEP IRAs (collectively,
“IRAs”). After‑tax returns are shown
only for Class AAA shares. Actual after‑tax returns for other classes will
vary due to the differences in
expenses.
Management
The
Adviser. Gabelli Funds, LLC
The Portfolio
Managers. Messrs. Caesar M.P. Bryan, Senior Vice President of
GAMCO Investors, Inc., and Howard F. Ward, CFA, Senior Vice President of GAMCO
Investors, Inc. and Chief Investment Officer of Growth Products, have served as
portfolio managers of the Global Growth Fund since 2000 and 2005, respectively.
Christopher D. Ward, CFA, Vice President of GAMCO Investors, Inc., has served as
an associate portfolio manager of the Global Growth Fund since May 1, 2018.
Purchase and Sale of
Fund Shares
Effective
January 27, 2020, the Global Growth Fund’s respective Class AAA, Class A, and
Class C Shares have been “closed to purchases from new investors,” as described
above.
The minimum
initial investment for Class AAA, Class A, and Class C shares will be $1,000
($250 for IRAs or Coverdell Education Savings Plans) when and if initial
investments into Class AAA, A, and C shares are reopened. When and if initial
investments into Class AAA, A, and C shares are reopened, there will be no
minimum initial investment for Class AAA, Class A, and Class C
shares in an automatic monthly investment plan. Class I shares are available to
investors with a minimum investment of $1,000 when purchasing shares directly
through G.distributors, LLC, the Global Growth Fund’s distributor
(“G.distributors” or 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, and
which have different minimum investment amounts. If you transact in Class I
shares through a broker or financial intermediary, you may be required to pay a
commission and/or other forms
15
of
compensation to the broker or financial intermediary. The Distributor reserves
the right to waive or change minimum investment amounts. There is no minimum for
subsequent investments.
Since the
minimum initial investment amount for the Global Growth Fund’s Class I shares
purchased directly through the Distributor is the same as that for all other
classes of the Global Growth Fund’s shares, shareholders still eligible to
purchase Class AAA and Class A shares of the Global Growth Fund on or after the
Effective Date should instead consider purchasing Class I shares since Class I
shares carry no sales load and no ongoing distribution fees. Investors and
shareholders who wish to purchase shares of the Global Growth Fund through a
broker or financial intermediary should consult their broker or financial
intermediary with respect to the purchase of shares of the Global Growth Fund.
Please refer to the Global Growth Fund’s statutory prospectus for additional
information about share class conversions and exchanges among funds managed by
the Adviser or its affiliates.
You can
purchase or redeem shares of the Global Growth Fund on any day the New York
Stock Exchange (“NYSE”) is open for trading (a “Business Day”). You may purchase
or redeem Global Growth Fund shares by written request via mail (The Gabelli
Funds, P.O. Box 219204, Kansas City, MO 64121‑9204), personal or overnight
delivery (The Gabelli Funds, c/o DST Asset Manager Solutions, Inc., 430 W
7th Street
STE 219204, Kansas City, MO 64105-1407), Internet, bank wire, or Automated
Clearing House (“ACH”) system. You may also purchase Fund shares by telephone if
you have an existing account with banking instructions on file at 800‑GABELLI
(800‑422‑3554).
Shares of
the Global Growth Fund can also be purchased or sold through registered
broker-dealers or financial intermediaries that have entered into appropriate
selling agreements with the Distributor. The broker-dealer or other financial
intermediary will transmit these transaction orders to the Global Growth Fund on
your behalf and send you confirmation of your transactions and periodic account
statements showing your investments in the Global Growth Fund.
Tax Information
The Global
Growth Fund expects that distributions will generally be taxable as ordinary
income or long term capital gains, unless you are investing through a tax
deferred arrangement, such as a 401(k) plan or an IRA.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you
purchase shares of the Global Growth Fund through a broker-dealer or other
financial intermediary (such as a bank), the Global Growth Fund and its related
companies may pay the intermediary for the sale of Global Growth Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Global Growth Fund over another investment. For more information,
turn to “Third Party Arrangements” on page 64 of the prospectus. Ask your
salesperson or visit your financial intermediary’s website for more information.
16
The GABELLI INTERNATIONAL SMALL CAP FUND
(the “International Small Cap
Fund”)
Investment Objectives
The International Small Cap Fund primarily
seeks to provide investors with appreciation of capital.
Current
income is a secondary objective of the International Small Cap
Fund.
Fees and Expenses of the International Small Cap
Fund:
Effective
January 27, 2020 (the “Effective Date”), the International Small Cap Fund’s
respective Class AAA, Class A, and Class C shares have been “closed to
purchases from new investors.” “Closed to purchases from new investors” means:
(i) with respect to 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. These changes have no effect on
existing shareholders’ ability to redeem shares of the International Small Cap
Fund as described herein.
This table
describes the fees and expenses that you may pay if you buy and hold shares of
the International Small Cap Fund. You may qualify for sales charge discounts
on Class A shares if you and your family invest, or agree to invest in the
future, at least $50,000 in Class A shares of the
Gabelli family of mutual funds when and if initial investments into Class A
shares are reopened. More information about these and other
discounts is available from your financial professional and in the section
entitled “Classes of Shares” on page 57 of the prospectus and in Appendix A,
“Sales Charge Reductions and Waivers Available through Certain Intermediaries,”
attached to the prospectus.
|
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|
|
|
|
|
|
Class AAA Shares |
|
Class A Shares |
|
Class C Shares |
|
Class I Shares |
Shareholder Fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(fees paid directly from
your investment): |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
None |
|
|
|
|
5.75% |
|
|
|
|
None |
|
|
|
|
None |
|
Maximum
Deferred Sales Charge (Load) (as a percentage of redemption
price) |
|
|
|
None |
|
|
|
|
None |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends (as a percentage of
amount invested) |
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
Redemption
Fee (as a percentage of amount redeemed for shares held 7 days or
less) |
|
|
|
2.00% |
|
|
|
|
2.00% |
|
|
|
|
2.00% |
|
|
|
|
2.00% |
|
Exchange
Fee |
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
|
|
|
|
|
|
Annual Fund Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(expenses that you are
deducted from Fund assets): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
Fees |
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
1.00% |
|
Distribution
and Service (Rule 12b‑1) Fees |
|
|
|
0.25% |
|
|
|
|
0.25% |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Other
Expenses |
|
|
|
2.40% |
|
|
|
|
2.40% |
|
|
|
|
2.40% |
|
|
|
|
2.40% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses(1) |
|
|
|
3.65% |
|
|
|
|
3.65% |
|
|
|
|
4.40% |
|
|
|
|
3.40% |
|
Fee
Waiver and/or Expense Reimbursement(1) |
|
|
|
(2.74)% |
|
|
|
|
(2.74)% |
|
|
|
|
(3.49)% |
|
|
|
|
(2.49)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and Expense
Reimbursement |
|
|
|
0.91% |
|
|
|
|
0.91% |
|
|
|
|
0.91% |
|
|
|
|
0.91% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
“Other Expenses” are based
on estimated amounts for the current fiscal year. The
Adviser has contractually agreed to waive its investment advisory fees
and/or to reimburse expenses of the International Small Cap Fund to the
extent necessary to maintain the Total Annual Fund Operating Expenses
After Fee Waiver and Expense Reimbursement (excluding brokerage costs,
acquired fund fees and expenses, interest, taxes, and extraordinary
expenses) at no more than an annual rate of 0.90% for all classes of
shares. Under this same arrangement, the International Small Cap Fund has
also agreed, during the two year period following the year of any such
waiver or reimbursement by the Adviser, to repay such amount, but only to
the extent the International Small Cap Fund’s adjusted Total Annual Fund
Operating Expenses would not exceed an annual rate of 0.90% for the
applicable class of shares, after giving effect to the repayments. This
arrangement is in effect through April 30,
2022, and may be terminated only by the Board of Directors
of the Corporation (the “Board”) before such time. The International Small
Cap Fund will carry forward any fees and expenses in excess of the expense
limitation and repay the Adviser such amount provided the International
Small Cap Fund is able to do so without exceeding the lesser of
(1) the expense limit in effect at the time of the waiver or
reimbursement, as applicable, or (2) the expense limit in effect at
the time of recoupment after giving effect to the repayment.
|
17
Expense Example
This example
is intended to help you compare the cost of investing in the International Small
Cap Fund with the cost of investing in other mutual funds.
The example
assumes that you invest $10,000 in the International Small Cap Fund for the time
periods indicated and then redeem all of your shares at the end of those
periods. The example assumes a waiver of expenses through the date of the
expiration of the waiver, and reflects Total Annual Fund Operating Expenses
following the date of the expiration of the waiver. The example also assumes
that your investment has a 5% return each year and that the International Small
Cap Fund’s operating expenses remain the same. Although your actual costs may be
higher or lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class
AAA Shares |
|
|
$ |
93 |
|
|
|
$ |
863 |
|
|
|
$ |
1,654 |
|
|
|
$ |
3,727 |
|
Class
A Shares |
|
|
$ |
663 |
|
|
|
$ |
1,388 |
|
|
|
$ |
2,134 |
|
|
|
$ |
4,088 |
|
Class
C Shares |
|
|
$ |
193 |
|
|
|
$ |
1,014 |
|
|
|
$ |
1,947 |
|
|
|
$ |
4,328 |
|
Class
I Shares |
|
|
$ |
93 |
|
|
|
$ |
812 |
|
|
|
$ |
1,554 |
|
|
|
$ |
3,517 |
|
You would pay the following
expenses if you did not redeem your shares of the International Small Cap
Fund:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class
AAA Shares |
|
|
$ |
93 |
|
|
|
$ |
863 |
|
|
|
$ |
1,654 |
|
|
|
$ |
3,727 |
|
Class
A Shares |
|
|
$ |
663 |
|
|
|
$ |
1,388 |
|
|
|
$ |
2,134 |
|
|
|
$ |
4,088 |
|
Class
C Shares |
|
|
$ |
93 |
|
|
|
$ |
1,014 |
|
|
|
$ |
1,947 |
|
|
|
$ |
4,328 |
|
Class
I Shares |
|
|
$ |
93 |
|
|
|
$ |
812 |
|
|
|
$ |
1,554 |
|
|
|
$ |
3,517 |
|
Portfolio Turnover
The
International Small Cap Fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when the International Small Cap Fund’s shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses
or in the example, affect the International Small Cap Fund’s performance. During
the most recent fiscal year, the International Small Cap Fund’s portfolio
turnover rate was 22% of the average value of its
portfolio.
Principal Investment
Strategies
The
International Small Cap Fund will invest primarily in a portfolio of common
stocks of non‑U.S. companies. In determining whether an issuer is a U.S. or
non‑U.S. company, the International Small Cap Fund will consider various factors
including its country of domicile, the primary stock exchange on which it
trades, the location from which the majority of its revenue comes, and its
reporting currency. Under normal market conditions, the International Small Cap
Fund will invest at least 80% of its net assets (plus any borrowings for
investment purposes) in the stocks of “small cap companies.” 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 investment policy of the International Small Cap Fund relating to the
18
type of
securities in which 80% of the International Small Cap Fund’s net assets must be
invested may be changed by the Board without shareholder approval. Shareholders
will, however, receive at least sixty days notice prior to any change in this
policy.
The
International Small Cap Fund may invest in non‑U.S. markets throughout the
world, including emerging markets. The International Small Cap Fund considers
emerging markets to be markets located in countries classified as emerging or
frontier markets by MSCI, and are generally located in the AsiaPacific region,
Eastern Europe, the Middle East, Central and South America, and Africa.
Ordinarily, the International Small Cap Fund will invest in the securities of
issuers located in at least five countries outside the U.S. There are no
geographic limits on the International Small Cap Fund’s non‑U.S. investments.
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 (capitalization is the price per
share multiplied by the number of shares outstanding) 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.
Frequently,
smaller capitalization companies exhibit one or more of the following traits:
|
• |
|
New
products or technologies
|
|
• |
|
New
distribution methods
|
|
• |
|
Rapid
changes in industry conditions due to regulatory or other developments
|
|
• |
|
Changes
in management or similar characteristics that may result not only in
expected growth in revenues but in an accelerated or above average rate of
earnings growth, which would usually be reflected in capital appreciation.
|
In addition,
because smaller capitalization companies are less actively followed by stock
analysts and less information is available on which to base stock price
evaluations, the market may overlook favorable trends in particular smaller
growth companies and then adjust its valuation more quickly once investor
interest is gained.
Principal Risks
You may want to
invest in the International Small Cap Fund if:
|
• |
|
you
are a long term investor
|
|
• |
|
you
seek growth of capital
|
|
• |
|
you
seek to diversify your investments outside the U.S.
|
The
International Small Cap Fund’s share price will fluctuate with changes in the
market value of the International Small Cap Fund’s portfolio securities. Stocks
are subject to market, economic, and business risks that may cause their prices
to fluctuate. An
investment in the International Small Cap Fund is not a deposit of a bank and is
not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. When you sell International Small Cap Fund shares, they
may be worth less than what you paid for them; you may lose money by investing
in the International Small Cap Fund.
19
Investing in
the International Small Cap Fund involves the following risks:
|
• |
|
Equity
Risk. Equity risk is the risk that the
prices of the securities held by the International Small Cap Fund will
change due to general market and economic conditions, perceptions
regarding the industries in which the companies issuing the securities
participate and the issuer company’s particular circumstances.
|
|
• |
|
Coronavirus (“COVID-19”) and Global Health
Events. COVID-19 and concerns about its
rapid spread and infections have severely impacted business activity in
virtually all economies, markets, and sectors and negatively impacted the
value of many financial and other assets. The duration of the COVID-19
outbreak and its effects cannot be determined with certainty. These events
could have a significant impact on the International Small Cap Fund’s
performance, as well as the performance and viability of issuers in which
it invests. |
|
• |
|
Foreign Securities
Risk. Investments in foreign securities
involve risks relating to political, social, and economic developments
abroad, as well as risks resulting from the differences between the
regulations to which U.S. and foreign issuers and markets are subject.
These risks include expropriation, differing accounting and disclosure
standards, currency exchange risks, settlement difficulties, market
illiquidity, difficulties enforcing legal rights, and greater transaction
costs. These risks are more pronounced in the securities of companies
located in emerging markets.
|
|
• |
|
Emerging Market
Risk. Foreign securities risks are more
pronounced in emerging markets. Investments in emerging markets may
experience sharp price swings, as there may be less government supervision
and regulation of business in such markets, and may entail risks relating
to political and economic instability and expropriation, nationalization,
confiscation or the imposition of restrictions on foreign investment, lack
of hedging instruments, and restrictions on repatriation of capital
invested. Securities markets in emerging markets may be less liquid and
developed than those in the United States, potentially making prices
erratic. Economic or political crises may detrimentally affect investments
in emerging markets. Emerging market countries may experience substantial
rates of inflation or deflation. The economies of developing countries
tend to be dependent upon international trade. There may be little
financial information available about emerging market issuers, and it may
be difficult to obtain or enforce a judgment against them. Other risks
include a high concentration of investors, financial intermediaries, and
market capitalization and trading volume in a small number of issuers and
industries; vulnerability to changes in commodity prices due to
overdependence on exports, including gold and natural resources,
overburdened infrastructure and obsolete or unseasoned financial systems;
environmental problems; less developed legal systems; and less reliable
securities custodial services and settlement practices. For all of these
reasons, investments in emerging markets may be considered speculative.
|
|
• |
|
Currency
Risk. Fluctuations in exchange rates between
the U.S. dollar and foreign currencies may negatively affect an
investment. Adverse changes in exchange rates may erode or reverse any
gains produced by foreign currency denominated investments and may widen
any losses. The International Small Cap Fund may, but is not required to,
seek to reduce currency risk by hedging part or all of its exposure to
various foreign currencies. In addition, the International Small Cap
Fund’s investments could be adversely affected by delays in, or a refusal
to grant, repatriation of funds or conversion of emerging market
currencies. |
20
|
• |
|
Depositary
Receipts. The International Small Cap Fund
may invest in non‑U.S. equity securities through depositary receipts,
including ADRs, EDRs, GDRs and other similar global instruments. While
ADRs, EDRs and GDRs may not necessarily be denominated in the same
currency as the securities into which they may be converted, many of the
risks associated with foreign (non‑U.S.) securities may also apply to
ADRs, EDRs and GDRs. In addition, the underlying issuers of certain
depositary receipts, particularly unsponsored or unregistered depositary
receipts, are under no obligation to distribute shareholder communications
to the holders of such receipts, or to pass through to them any voting
rights with respect to the deposited securities. Depositary receipts that
are not sponsored by the issuer may be less liquid and there may be less
readily available public information about the issuer.
|
|
• |
|
Growth Stock
Risk. Securities of growth companies may be
more volatile since such companies usually invest a high portion of
earnings in their business, and they may lack the dividends of value
stocks that can cushion stock prices in a falling market.
|
|
• |
|
Issuer Risk. The
value of a security may decline for a number of reasons that directly
relate to an issuer, such as management performance, financial leverage,
and reduced demand for the issuer’s goods or services, as well as the
historical and prospective earnings of the issuer and the value of its
assets or factors unrelated to the issuer’s value, such as investor
perception. |
|
• |
|
Management
Risk. If the portfolio manager is incorrect
in his assessment of the growth prospects of the securities the
International Small Cap Fund holds, then the value of the International
Small Cap Fund’s shares may decline.
|
|
• |
|
Non‑Diversification
Risk. As a non‑diversified mutual fund, more
of the International Small Cap Fund’s assets may be focused in the common
stocks of a small number of issuers, which may make the value of the
International Small Cap Fund’s shares more sensitive to changes in the
market value of a single issuer or industry and more susceptible to risks
with a single economic, market, political or regulatory occurrence than
shares of a diversified mutual
fund. |
|
• |
|
Smaller Capitalization
Risk. Risk is greater for the securities of
smaller capitalization companies (including small unseasoned companies
that have been in operation for less than three years) because such
companies generally are more vulnerable than larger companies to adverse
business or economic developments and they may have more limited
resources.
|
Performance
The bar chart
and table that follow provide an indication of the risks of investing in the
International Small Cap Fund by showing changes in the International Small Cap
Fund’s performance from year to year and by showing how the International Small
Cap Fund’s average annual returns for one year, five years, and ten years
compared with those of broad based securities market indices.
As
with all mutual funds, the International Small Cap Fund’s past performance
(before and after taxes) does not predict how the International Small Cap Fund
will perform in the future. Updated information on the
International Small Cap Fund’s results can be obtained by visiting
www.gabelli.com.
21
INTERNATIONAL SMALL CAP FUND
(Total Returns for Class AAA Shares for the Years
Ended December 31)
During the calendar years shown in the bar
chart, the highest return for a
quarter was 21.47% (quarter ended June 30, 2020), and
the lowest return for a quarter
was (25.11)% (quarter ended March 31, 2020).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total
Returns
(for
the years ended
December 31, 2020
with maximum sales charge,
if applicable) |
|
Past One Year |
|
Past Five Years |
|
Past Ten Years |
International
Small Cap Fund Class AAA Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
Before Taxes |
|
|
|
19.16 |
% |
|
|
|
8.99 |
% |
|
|
|
6.55 |
% |
Return
After Taxes on Distributions |
|
|
|
18.97 |
% |
|
|
|
5.22 |
% |
|
|
|
4.68 |
% |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
|
11.53 |
% |
|
|
|
6.47 |
% |
|
|
|
5.00 |
% |
Class
A Shares Return Before Taxes |
|
|
|
12.28 |
% |
|
|
|
7.23 |
% |
|
|
|
5.68 |
% |
Class
C Shares Return Before Taxes |
|
|
|
18.19 |
% |
|
|
|
7.98 |
% |
|
|
|
5.65 |
% |
Class
I Shares Return Before Taxes |
|
|
|
19.11 |
% |
|
|
|
9.23 |
% |
|
|
|
6.91 |
% |
MSCI
AC World Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
16.25 |
% |
|
|
|
12.26 |
% |
|
|
|
9.13 |
% |
MSCI
EAFE Small Cap Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
12.34 |
% |
|
|
|
9.40 |
% |
|
|
|
7.85 |
% |
Lipper
Global Multi‑Cap Growth Fund Classification |
|
|
|
33.26 |
% |
|
|
|
15.36 |
% |
|
|
|
11.60 |
% |
After‑tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
In some instances, the
“Return After Taxes on Distributions and Sale of Fund Shares” may be greater
than the “Return After Taxes on Distributions” because the investor is assumed
to be able to use the capital loss from the sale of Fund shares to offset other
taxable gains. Actual after‑tax returns
depend on an investor’s tax situation and may differ from those shown. After‑tax
returns shown are not relevant to investors who hold their International Small
Cap Fund shares through tax deferred arrangements, such as 401(k) plans or
individual retirement accounts, including Roth IRAs and SEP IRAs (collectively,
“IRAs”). After‑tax returns are shown
only for Class AAA shares. After‑tax returns for other classes will vary
due to the differences in expenses.
In addition to the
MSCI AC World Index, which is a widely recognized, unmanaged stock index
composed of equity securities in developed and emerging market countries, the
International Small Cap Fund’s
22
returns are also compared with
the MSCI EAFE Small Cap Index, which is an equity index that captures small cap
representation across developed markets countries around the world, excluding
the US and Canada. The Fund intends to remove the MSCI AC
World Index and Lipper Global Multi-Cap Growth Fund Classification comparisons
in the future because the Adviser believes that the MSCI EAFE Small Cap Index
provides an equal or better representation of the markets in which it
invests.
Management
The
Adviser. Gabelli Funds, LLC
The Portfolio
Manager. Mr. Caesar M.P. Bryan, Senior Vice President of
GAMCO Investors, Inc., has served as portfolio manager of the International
Small Cap Fund since 1998.
In managing
the portfolio of The International Small Cap Fund, the Adviser also uses the
services of Gustavo Pifano and Ashish Sinha, investment professionals of an
affiliate, GAMCO Asset Management (UK) Limited (“GAMCO UK”). Mr. Pifano joined
the firm in 2008 and is an Assistant Vice President for research based in
London. He covers the industrial and consumer sectors with a focus on small-cap
stocks. Mr. Pifano holds a Bachelor of Business Administration in Finance from
the University of Miami and an MBA from the University of Oxford Said Business
School.
Mr. Sinha
joined GAMCO UK in 2012 as a research analyst and is an Assistant Vice
President. Mr. Sinha holds a Bachelor of Business Administration from IMS, India
and a Master of International Business from the Indian Institute of Foreign
Trade, India. He is a Chartered Financial Analyst.
In keeping
with applicable regulatory guidance, GAMCO UK entered into a Memorandum of
Understanding (“MOU”) with the Adviser pursuant to which GAMCO UK is considered
a “Participating Affiliate” of the Adviser as that term is used in relief
granted by the staff of the Securities and Exchange Commission (“SEC”) allowing
U.S. registered investment advisers to use portfolio management and trading
resources of advisory affiliates subject to the supervision of a registered
adviser.
Purchase and Sale of
Fund Shares
Effective
January 27, 2020, the International Small Cap Fund’s respective Class AAA, Class
A, and Class C Shares have been “closed to purchases from new investors,”
as described above.
The minimum
initial investment for Class AAA, Class A, and Class C shares will be $1,000
($250 for IRAs or Coverdell Education Savings Plans) when and if initial
investments into Class AAA, A, and C shares are reopened. When and if initial
investments into Class AAA, A, and C shares are reopened, there will be no
minimum initial investment for Class AAA, Class A, and Class C shares in an
automatic monthly investment plan. Class I shares are available to investors
with a minimum investment of $1,000 when purchasing shares directly through
G.distributors, LLC, the International Small Cap Fund’s distributor
(“G.distributors” or 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, and
which have different minimum investment amounts. If you transact in Class I
shares through a broker or financial intermediary, you may be required to pay a
commission and/or other forms of compensation to the broker or financial
intermediary. The Distributor reserves the right to waive or change minimum
investment amounts. There is no minimum for subsequent investments.
Since the
minimum initial investment amount for the International Small Cap Fund’s Class I
shares purchased directly through the Distributor is the same as that for all
other classes of the International
23
Small Cap
Fund’s shares, shareholders still eligible to purchase Class AAA and Class A
shares of the International Small Cap Fund on or after the Effective Date should
instead consider purchasing Class I shares since Class I shares carry no sales
load and no ongoing distribution fees. Investors and shareholders who wish to
purchase shares of the International Small Cap Fund through a broker or
financial intermediary should consult their broker or financial intermediary
with respect to the purchase of shares of the International Small Cap Fund.
Please refer to the International Small Cap Fund’s statutory prospectus for
additional information about share class conversions and exchanges among funds
managed by the Adviser or its affiliates.
You can
purchase or redeem shares of the International Small Cap Fund on any day the New
York Stock Exchange (“NYSE”) is open for trading (a “Business Day”). You may
purchase or redeem International Small Cap Fund shares by written request via
mail (The Gabelli Funds, P.O. Box 219204, Kansas City, MO 64121-9204), personal
or overnight delivery (The Gabelli Funds, c/o DST Asset Manager Solutions, Inc.,
430 W 7th Street STE
219204, Kansas City, MO 64105-1407), Internet, bank wire, or Automated Clearing
House (“ACH”) system. You may also purchase Fund shares by telephone if you have
an existing account with banking instructions on file at 800‑GABELLI
(800-422-3554).
Shares of
the International Small Cap Fund can also be purchased or sold through
registered broker-dealers or financial intermediaries that have entered into
appropriate selling agreements with the Distributor. The broker-dealer or other
financial intermediary will transmit these transaction orders to the
International Small Cap Fund on your behalf and send you confirmation of your
transactions and periodic account statements showing your investments in the
International Small Cap Fund.
Tax Information
The
International Small Cap Fund expects that distributions will generally be
taxable as ordinary income or long term capital gains, unless you are investing
through a tax deferred arrangement, such as a 401(k) plan or an IRA.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you
purchase shares of the International Small Cap Fund through a broker-dealer or
other financial intermediary (such as a bank), the International Small Cap Fund
and its related companies may pay the intermediary for the sale of International
Small Cap Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your
salesperson to recommend the International Small Cap Fund over another
investment. For more information, turn to “Third Party Arrangements” on page 64
of the prospectus. Ask your salesperson or visit your financial intermediary’s
website for more information.
24
The GABELLI GLOBAL RISING INCOME AND DIVIDEND FUND
(the “GRID Fund”)
Investment Objective
The GRID Fund seeks to provide investors
with a high level of total return through a combination of current income and
appreciation of capital.
Fees and Expenses of the GRID
Fund:
Effective
January 27, 2020 (the “Effective Date”), the GRID Fund’s respective Class AAA,
Class A, and Class C shares have been “closed to purchases from new investors.”
“Closed to purchases from new investors” means: (i) with respect to 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. These changes have no effect on existing shareholders’ ability to redeem
shares of the GRID Fund as described herein.
This table
describes the fees and expenses that you may pay if you buy and hold shares of
the GRID Fund. You may
qualify for sales charge discounts on Class A shares if you and your family
invest, or agree to invest in the future, at least $50,000 in Class A shares of the
Gabelli family of mutual funds when and if initial investments into Class A
shares are reopened. More information about these and other
discounts is available from your financial professional and in the section
entitled “Classes of Shares” on page 57 of the prospectus and in Appendix A,
“Sales Charge Reductions and Waivers Available through Certain Intermediaries,”
attached to the GRID Fund’s prospectus.
|
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|
|
|
|
|
|
|
|
|
|
Class AAA Shares |
|
Class A Shares |
|
Class C Shares |
|
Class I Shares
|
Shareholder Fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(fees paid directly from
your investment): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
None |
|
|
|
|
5.75% |
|
|
|
|
None |
|
|
|
|
None |
|
Maximum
Deferred Sales Charge (Load) (as a percentage of redemption price)
|
|
|
|
None |
|
|
|
|
None |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends (as a percentage of
amount invested) |
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
Redemption
Fee (as a percentage of amount redeemed for shares held 7 days or
less) |
|
|
|
2.00% |
|
|
|
|
2.00% |
|
|
|
|
2.00% |
|
|
|
|
2.00% |
|
Exchange
Fee |
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
|
|
|
|
|
|
Annual Fund Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(expenses that you pay each
year as a percentage of the value of your
investment): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
Fees |
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
1.00% |
|
Distribution
and Service (Rule 12b‑1) Fees |
|
|
|
0.25% |
|
|
|
|
0.25% |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Other
Expenses |
|
|
|
0.47% |
|
|
|
|
0.47% |
|
|
|
|
0.47% |
|
|
|
|
0.47% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses(1)
|
|
|
|
1.72% |
|
|
|
|
1.72% |
|
|
|
|
2.47% |
|
|
|
|
1.47% |
|
Fee
Waiver and/or Expense Reimbursement(1)
|
|
|
|
(0.82)% |
|
|
|
|
(0.82)% |
|
|
|
|
(1.57)% |
|
|
|
|
(0.57)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and Expense
Reimbursement |
|
|
|
0.90% |
|
|
|
|
0.90% |
|
|
|
|
0.90% |
|
|
|
|
0.90% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
“Other Expenses” are based
on estimated amounts for the current fiscal year. The
Adviser has contractually agreed to waive its investment advisory fees
and/or to reimburse expenses of the GRID Fund to the extent necessary to
maintain the Total Annual Fund Operating Expenses After Fee Waiver and
Expense Reimbursement (excluding brokerage costs, acquired fund fees and
expenses, interest, taxes, and extraordinary expenses) at no more than an
annual rate of 0.90% for all classes of shares. Under this same
arrangement, the GRID Fund has also agreed, during the two year period
following the year of any such waiver or reimbursement by the Adviser, to
repay such amount, but only to the extent the GRID Fund’s adjusted Total
Annual Fund Operating Expenses would not exceed an annual rate of 0.90%
for the applicable class of shares, after giving effect to the repayments.
This arrangement is in effect through April 30,
2022, and may be terminated only by the Board of Directors
of the Corporation (the “Board”) before such time. The GRID Fund will
carry forward any fees and expenses in excess of the expense limitation
and repay the Adviser such amount provided the GRID Fund is able to do so
without exceeding the lesser of (1) the expense limit in effect at
the time of the waiver or reimbursement, as applicable, or (2) the
expense limit in effect at the time of recoupment after giving effect to
the repayment. |
25
Expense Example
This example
is intended to help you compare the cost of investing in the GRID Fund with the
cost of investing in other mutual funds.
The example
assumes that you invest $10,000 in the GRID Fund for the time periods indicated
and then redeem all of your shares at the end of those periods. The example
assumes a waiver of expenses through the date of the expiration of the waiver,
and reflects Total Annual Fund Operating Expenses following the date of the
expiration of the waiver. The example also assumes that your investment has a 5%
return each year and that the GRID Fund’s operating expenses remain the same.
Although your actual costs may be higher or lower, based on these assumptions
your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class AAA
Shares |
|
|
$
|
92 |
|
|
|
$
|
462 |
|
|
|
$
|
856 |
|
|
|
$
|
1,962 |
|
Class A
Shares |
|
|
$
|
662 |
|
|
|
$
|
1,010 |
|
|
|
$
|
1,382 |
|
|
|
$
|
2,424 |
|
Class C
Shares |
|
|
$
|
192 |
|
|
|
$
|
619 |
|
|
|
$
|
1,174 |
|
|
|
$
|
2,687 |
|
Class I
Shares |
|
|
$
|
92 |
|
|
|
$
|
409 |
|
|
|
$
|
749 |
|
|
|
$
|
1,708 |
|
You would pay the following
expenses if you did not redeem your shares of the GRID
Fund:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class AAA
Shares |
|
|
$
|
92 |
|
|
|
$
|
462 |
|
|
|
$
|
856 |
|
|
|
$
|
1,962 |
|
Class A
Shares |
|
|
$
|
662 |
|
|
|
$
|
1,010 |
|
|
|
$
|
1,382 |
|
|
|
$
|
2,424 |
|
Class C
Shares |
|
|
$
|
92 |
|
|
|
$
|
619 |
|
|
|
$
|
1,174 |
|
|
|
$
|
2,687 |
|
Class I
Shares |
|
|
$
|
92 |
|
|
|
$
|
409 |
|
|
|
$
|
749 |
|
|
|
$
|
1,708 |
|
Portfolio Turnover
The GRID
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when the GRID
Fund’s shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the GRID
Fund’s performance. During the most recent fiscal year, the GRID Fund’s
portfolio turnover rate was 8% of the average value of its portfolio.
Principal Investment
Strategies
The GRID
Fund will attempt to achieve its investment objective by investing, under normal
circumstances, at least 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 GRID Fund will primarily invest in common stocks of foreign and
domestic issuers that the GRID Fund’s portfolio manager believes are likely to
pay dividends and income and have the potential for above average capital
appreciation and dividend increases. To this end, the portfolio manager may
invest in stocks that pay and increase dividends over time that can potentially
provide “rising income.” Rising income stocks historically have provided a
better total return over time, potentially combat inflation and offer the
opportunity to potentially take advantage of compounding through dividend and
income reinvestment. Under normal circumstances, the GRID Fund intends to invest
in at least three
26
countries,
including the United States, and will invest at least 40% of its total assets in
countries other than the United States.
The GRID
Fund invests in companies whose stocks the Adviser believes are selling at a
significant discount to their “private market value.” Private market value is
the value the Adviser believes informed investors would be willing to pay to
acquire the entire company. If investor attention is focused on the underlying
asset value of a company due to expected or actual developments or other
catalysts, an investment opportunity to realize this private market value may
exist.
The GRID
Fund may utilize certain “arbitrage” strategies. The GRID Fund’s use of
arbitrage may be described as investing in “event” driven situations such as
announced mergers, acquisitions, and reorganizations. When a company agrees to
be acquired by another company, its stock price often quickly rises to just
below the stated acquisition price. If the Adviser, through extensive research,
determines that the acquisition is likely to be consummated on schedule at the
stated acquisition price, then the GRID Fund may purchase the selling company’s
securities, offering the GRID Fund the possibility of generous returns relative
to cash equivalents with a limited risk of excessive loss of capital.
The GRID
Fund may invest in convertible securities, which include bonds, debentures,
corporate notes, preferred stocks, and other similar securities which are
convertible or exchangeable for common stock within a particular time period at
a specified price or formula, of foreign and domestic companies with no target
maturity range. Because many convertible securities are rated below investment
grade, the GRID Fund may invest without limit in convertible securities rated
lower than “BBB” by Standard & Poor’s Rating Services (“S&P”) or
“Baa” or lower by Moody’s Investors Service, Inc. (“Moody’s”), or, if unrated,
are of comparable quality as determined by the Adviser, including up to 5% of
its assets in convertible securities of issuers in default. The GRID Fund also
may invest up to 25% of its assets in non-convertible fixed income securities
that are below investment grade, including up to 5% of its assets in
non-convertible fixed income securities of issuers that are in default.
Principal Risks
You may want to
invest in the GRID Fund if:
|
•
|
|
you
are a long term investor
|
|
•
|
|
you
seek growth of capital
|
|
•
|
|
you
seek to diversify your investments outside the U.S.
|
The GRID
Fund’s share price will fluctuate with changes in the market value of the GRID
Fund’s portfolio securities. Stocks are subject to market, economic, and
business risks that may cause their prices to fluctuate. Holders of common
stocks only have rights to the value in the company after all debts have been
paid, and they could lose their entire investment in a company that encounters
financial difficulty. In addition, the GRID Fund’s portfolio companies may
reduce or eliminate the dividend rate on the securities held by the GRID Fund.
Preferred stock and debt securities convertible into or exchangeable for common
or preferred stock also are subject to interest rate risk and/or credit risk.
When interest rates rise, the value of such securities generally declines. It is
also possible that the issuer of a security will not be able to make interest
and principal payments when due. In addition, the GRID Fund may invest in lower
credit quality securities which may involve major risk exposures such as
increased sensitivity to interest rate
27
and economic
changes and limited liquidity. An investment in the GRID Fund is
not a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
When you sell GRID Fund
shares, they may be worth less than what you paid for them; you may lose money
by investing in the GRID Fund.
Investing in
the GRID Fund involves the following risks:
|
•
|
|
Convertible Securities. Convertible
securities provide higher yields than the underlying common stock, but
generally offer lower yields than nonconvertible securities of similar
quality. The value of convertible securities fluctuates in relation to
changes in the interest rates and, in addition, fluctuates in relation to
the underlying common stock.
|
|
•
|
|
Credit Risk for Convertible Securities and Fixed
Income Securities. Many convertible
securities are not investment grade, that is, not rated within the four
highest categories by S&P and Moody’s. To the extent that the GRID
Fund’s convertible securities and any other fixed income securities are
rated lower than investment grade or are not rated, there would be a
greater risk as to the timely repayment of the principal of, and timely
payment of interest or dividends on, those securities.
|
|
•
|
|
Equity
Risk. Equity risk is the risk that the
prices of the securities held by the GRID Fund will change due to general
market and economic conditions, perceptions regarding the industries in
which the companies issuing the securities participate and the issuer
company’s particular circumstances. Dividends on common equity securities
are not fixed but are declared at the discretion of an issuer’s board of
directors. Companies that have historically paid dividends on their
securities are not required to continue to pay dividends on such
securities. There is no guarantee that the issuers of the common equity
securities will declare dividends in the future or that, if declared, they
will remain at current levels or increase over time. Therefore, there is
the possibility that such companies could reduce or eliminate the payment
of dividends in the future. The GRID Fund’s investments in dividend
producing equity securities may also limit its potential for appreciation
during a broad market advance. The prices of dividend producing equity
securities can be highly volatile. Investors should not assume that the
GRID Fund’s investments in these securities will necessarily reduce the
volatility of the GRID Fund’s NAV or provide “protection,” compared to
other types of equity securities, when markets perform poorly.
|
|
•
|
|
Coronavirus (“COVID-19”) and Global Health
Events. COVID-19 and concerns about its
rapid spread and infections have severely impacted business activity in
virtually all economies, markets, and sectors and negatively impacted the
value of many financial and other assets. The duration of the COVID-19
outbreak and its effects cannot be determined with certainty. These events
could have a significant impact on the GRID Fund’s performance, as well as
the performance and viability of issuers in which it invests.
|
|
•
|
|
Event Driven
Risk. Event driven investments involve the
risk that certain of the events driving the investment may not happen or
the market may react differently than expected to the anticipated
transaction. In addition, although an event may occur or is announced, it
may be renegotiated, terminated or involve a longer time frame than
originally contemplated. Event driven investment transactions are also
subject to the risk of overall market movements. Any one of these risks
could cause the GRID Fund to experience investment losses impacting its
shares negatively. |
28
|
•
|
|
Foreign Securities
Risk. Investments in foreign securities
involve risks relating to political, social, and economic developments
abroad, as well as risks resulting from the differences between the
regulations to which U.S. and foreign issuers and markets are subject.
These risks include expropriation, differing accounting and disclosure
standards, currency exchange risks, settlement difficulties, market
illiquidity, difficulties enforcing legal rights, and greater transaction
costs. These risks are more pronounced in emerging markets.
|
|
•
|
|
Emerging Market
Risk. Foreign securities risks are more
pronounced in emerging markets. Investments in emerging markets may
experience sharp price swings, as there may be less government supervision
and regulation of business in such markets, and may entail risks relating
to political and economic instability and expropriation, nationalization,
confiscation or the imposition of restrictions on foreign investment, lack
of hedging instruments, and restrictions on repatriation of capital
invested. Securities markets in emerging markets may be less liquid and
developed than those in the United States, potentially making prices
erratic. Economic or political crises may detrimentally affect investments
in emerging markets. Emerging market countries may experience substantial
rates of inflation or deflation. The economies of developing countries
tend to be dependent upon international trade. There may be little
financial information available about emerging market issuers, and it may
be difficult to obtain or enforce a judgment against them. Other risks
include a high concentration of investors, financial intermediaries, and
market capitalization and trading volume in a small number of issuers and
industries; vulnerability to changes in commodity prices due to
overdependence on exports, including gold and natural resources,
overburdened infrastructure and obsolete or unseasoned financial systems;
environmental problems; less developed legal systems; and less reliable
securities custodial services and settlement practices. For all of these
reasons, investments in emerging markets may be considered speculative.
|
|
•
|
|
Currency
Risk. Fluctuations in exchange rates between
the U.S. dollar and foreign currencies may negatively affect an
investment. Adverse changes in exchange rates may erode or reverse any
gains produced by foreign currency denominated investments and may widen
any losses. The GRID Fund may, but is not required to, seek to reduce
currency risk by hedging part or all of its exposure to various foreign
currencies. In addition, the GRID Fund’s investments could be adversely
affected by delays in, or a refusal to grant, repatriation of funds or
conversion of emerging market currencies.
|
|
•
|
|
Depositary
Receipts. The GRID Fund may invest in
non‑U.S. equity securities through depositary receipts, including ADRs,
EDRs, GDRs and other similar global instruments. While ADRs, EDRs and GDRs
may not necessarily be denominated in the same currency as the securities
into which they may be converted, many of the risks associated with
foreign (non‑U.S.) securities may also apply to ADRs, EDRs and GDRs. In
addition, the underlying issuers of certain depositary receipts,
particularly unsponsored or unregistered depositary receipts, are under no
obligation to distribute shareholder communications to the holders of such
receipts, or to pass through to them any voting rights with respect to the
deposited securities. Depositary receipts that are not sponsored by the
issuer may be less liquid and there may be less readily available public
information about the issuer.
|
|
•
|
|
Interest Rate
Risk. The primary risk associated with
dividend- and interest-paying securities is interest rate risk. A decrease
in interest rates will generally result in an increase in the
|
29
|
investment
value of such securities, while increases in interest rates will generally
result in a decline in its investment value. This effect is generally more
pronounced for fixed rate securities than for securities whose income rate
is periodically reset. The GRID Fund may be subject to a greater risk of
rising interest rates due to the current period of historically low
interest rates. There is a possibility that interest rates may rise in the
future. |
|
•
|
|
Lower Rated
Securities. Lower rated securities may
involve major risk exposures such as increased sensitivity to interest
rate and economic changes, and the market to sell such securities may be
limited. Such lower rated securities are considered speculative
investments with increased credit risk and are generally known as “junk
bonds” or “high yield securities”. Investments in lower rated securities
may also include securities of issuers that are in default. Investments in
securities of issuers in default present even greater risk exposure for
the GRID Fund. |
|
•
|
|
Growth Stock
Risk. Securities of growth companies may be
more volatile since such companies usually invest a high portion of
earnings in their business, and they may lack the dividends of value
stocks that can cushion stock prices in a falling market.
|
|
•
|
|
Issuer Risk. The
value of a security may decline for a number of reasons that directly
relate to an issuer, such as management performance, financial leverage,
and reduced demand for the issuer’s goods or services, as well as the
historical and prospective earnings of the issuer and the value of its
assets or factors unrelated to the issuer’s value, such as investor
perception. |
|
•
|
|
Management
Risk. If the portfolio manager is incorrect
in his assessment of the growth prospects of the securities the GRID Fund
holds, then the value of the GRID Fund’s shares may decline.
|
|
•
|
|
Non‑Diversification
Risk. As a non‑diversified mutual fund, more
of the GRID Fund’s assets may be focused in the common stocks of a small
number of issuers, which may make the value of the GRID Fund’s shares more
sensitive to changes in the market value of a single issuer or industry
and more susceptible to risks associated with a single economic, market,
political or regulatory occurrence than shares of a diversified mutual
fund.
|
Performance
The bar chart
and table that follow provide an indication of the risks of investing in the
GRID Fund by showing changes in the GRID Fund’s performance from year to year
and by showing how the GRID Fund’s average annual returns for one year, five
years, and ten years compared with those of broad based securities market
indices. Substantially all of the GRID Fund’s operating history
and performance results have been achieved implementing different investment
strategies under the GRID Fund’s previous names, the GAMCO Vertumnus Fund and
the GAMCO Global Convertible Securities Fund, and as such, the GRID Fund’s past performance
(before and after taxes) does not predict how the GRID Fund will perform in the
future. Updated information on the GRID Fund’s results can be
obtained by visiting www.gabelli.com.
30
GRID FUND
(Total Returns for Class AAA Shares for the Years
Ended December 31)
During the calendar years shown in the bar
chart, the highest return for a
quarter was 20.32% (quarter ended December 31,
2020), and the lowest return for a quarter
was (24.71)% (quarter ended March 31,
2020).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns
(for
the years ended December 31,
2020
with maximum sales charge, if applicable)
|
|
Past One Year |
|
Past Five Years |
|
Past Ten Years |
GRID
Fund Class AAA Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
Before Taxes |
|
|
|
11.68 |
%
|
|
|
|
6.96 |
%
|
|
|
|
4.78 |
%
|
Return
After Taxes on Distributions |
|
|
|
11.55 |
%
|
|
|
|
6.74 |
%
|
|
|
|
4.46 |
%
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
|
7.09 |
%
|
|
|
|
5.48 |
%
|
|
|
|
3.74 |
%
|
Class A
Shares Return Before Taxes |
|
|
|
5.27 |
%
|
|
|
|
5.70 |
%
|
|
|
|
4.15 |
%
|
Class
C Shares Return Before Taxes |
|
|
|
10.65 |
%
|
|
|
|
6.32 |
%
|
|
|
|
3.73 |
%
|
Class
I Shares Return Before Taxes |
|
|
|
11.67 |
%
|
|
|
|
7.44 |
%
|
|
|
|
5.15 |
%
|
ICE
Bank of America Merrill Lynch Global 300 Convertible Index (reflects no
deduction for fees, expenses, or taxes) |
|
|
|
34.50 |
%
|
|
|
|
13.44 |
%
|
|
|
|
9.37 |
%
|
MSCI
World Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
|
15.90 |
%
|
|
|
|
12.19 |
%
|
|
|
|
9.87 |
%
|
After‑tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
In some instances, the
“Return After Taxes on Distributions and Sale of Fund Shares” may be greater
than the “Return After Taxes on Distributions” because the investor is assumed
to be able to use the capital loss from the sale of Fund shares to offset other
taxable gains. Actual after‑tax returns
depend on an investor’s tax situation and may differ from those shown. After‑tax
returns shown are not relevant to investors who hold their GRID Fund shares
through tax deferred arrangements, such as 401(k) plans or individual retirement
accounts, including Roth IRAs and SEP IRAs (collectively,
“IRAs”). After‑tax returns are shown
only for Class AAA shares. After‑tax returns for other classes will vary
due to the differences in expenses.
31
In addition to the ICE Bank of
America Merrill Lynch Global 300 Convertible Index, the Fund’s returns are also
compared with MSCI World Index, which is a broad-based securities index that
represents the US and developed international equity markets in term of
capitalization and performance. The Fund intends to remove the ICE Bank of
America Merrill Lynch Global 300 Convertible Index comparison in the future
because the Adviser believes that the MSCI World Index provides an equal or
better representation of the markets in which it invests than the ICE Bank of
America Merrill Lynch Global 300 Convertible
Index.
Management
The
Adviser. Gabelli Funds, LLC
The Portfolio
Manager. Mr. Mario J. Gabelli, CFA, and Chief Investment
Officer — Value Portfolios of the Adviser, has served as portfolio manager of
the GRID Fund since 1994.
Purchase and Sale of
Fund Shares
Effective
January 27, 2020, the GRID Fund’s respective Class AAA, Class A, and Class C
Shares have been “closed to purchases from new investors,” as described above.
The minimum
initial investment for Class AAA, Class A, and Class C shares will be $1,000
($250 for IRAs or Coverdell Education Savings Plans) when and if initial
investments into Class AAA, A, and C shares are reopened. When and if initial
investments into Class AAA, A, and C shares are reopened, there will be no
minimum initial investment for Class AAA, Class A, and Class C shares in an
automatic monthly investment plan. Class I shares are available to investors
with a minimum investment of $1,000 when purchasing shares directly through
G.distributors, LLC, the GRID Fund’s distributor (“G.distributors” or 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, and which have
different minimum investment amounts. The minimum initial investment for Class I
shares is waived for employee benefit plans with assets of at least $50 million.
If you transact in Class I shares through a broker or financial intermediary,
you may be required to pay a commission and/or other forms of compensation to
the broker or financial intermediary. The Distributor reserves the right to
waive or change minimum investment amounts. There is no minimum for subsequent
investments.
Since the
minimum initial investment amount for the GRID Fund’s Class I shares purchased
directly through the Distributor is the same as that for all other classes of
the GRID Fund’s shares, shareholders still eligible to purchase Class AAA and
Class A shares of the GRID Fund on or after the Effective Date should instead
consider purchasing Class I shares since Class I shares carry no sales load and
no ongoing distribution fees. Investors and shareholders who wish to purchase
shares of the GRID Fund through a broker or financial intermediary should
consult their broker or financial intermediary with respect to the purchase of
shares of the GRID Fund. Please refer to the GRID Fund’s statutory prospectus
for additional information about share class conversions and exchanges among
funds managed by the Adviser or its affiliates.
You can
purchase or redeem shares of the GRID Fund on any day the New York Stock
Exchange (“NYSE”) is open for trading (a “Business Day”). You may purchase or
redeem GRID Fund shares by written request via mail (The Gabelli Funds, P.O. Box
219204, Kansas City, MO 64121-9204), personal or overnight delivery (The Gabelli
Funds, c/o DST Asset Manager Solutions, Inc., 430 W 7th Street
32
STE 219204,
Kansas City, MO 64105-1407), Internet, bank wire, or Automated Clearing
House (“ACH”) system. You may also purchase Fund shares by telephone if you have
an existing account with banking instructions on file at 800‑GABELLI
(800‑422‑3554).
Shares of
the GRID Fund can also be purchased or sold through registered broker-dealers or
financial intermediaries that have entered into appropriate selling agreements
with the Distributor. The broker-dealer or other financial intermediary will
transmit these transaction orders to the GRID Fund on your behalf and send you
confirmation of your transactions and periodic account statements showing your
investments in the GRID Fund.
Tax Information
The GRID
Fund expects that distributions will generally be taxable as ordinary income or
long term capital gains, unless you are investing through a tax deferred
arrangement, such as a 401(k) plan or an IRA.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you
purchase shares of the GRID Fund through a broker-dealer or other financial
intermediary (such as a bank), the GRID Fund and its related companies may pay
the intermediary for the sale of GRID Fund shares and related services. These
payments may create a conflict of interest by influencing the broker-dealer or
other intermediary and your salesperson to recommend the GRID Fund over another
investment. For more information, turn to “Third Party Arrangements” on
page 64 of the prospectus. Ask your salesperson or visit your financial
intermediary’s website for more information.
33
GABELLI GLOBAL MINI MITESTM
FUND
(the “Global Mini Mites
Fund”)
Investment Objectives
The Global Mini Mites Fund primarily seeks
to provide investors with long term capital
appreciation.
Fees and Expenses of the Global Mini Mites
Fund:
Effective
January 27, 2020 (the “Effective Date”), the Global Mini Mites Fund’s respective
Class AAA, Class A, and Class C shares have been “closed to purchases from
new investors.” “Closed to purchases from new investors” means: (i) with respect
to 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. These changes have no effect on existing shareholders’
ability to redeem shares of the Global Mini Mites Fund as described herein.
This table
describes the fees and expenses that you may pay if you buy and hold shares of
the Global Mini Mites Fund. You may qualify for sales charge discounts
on Class A shares if you and your family invest, or agree to invest in the
future, at least $50,000 in Class A shares of the
Gabelli family of mutual funds when and if initial investments into Class A
shares are reopened. More information about these and other
discounts is available from your financial professional and in the section
entitled “Classes of Shares” on page 57 of the prospectus and in Appendix A,
“Sales Charge Reductions and Waivers Available through Certain Intermediaries,”
attached to the Global Mini Mites Fund’s
prospectus.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class AAA Shares |
|
Class A Shares |
|
Class C Shares |
|
Class I Shares |
Shareholder
Fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(fees paid directly from
your investment): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
None |
|
|
|
|
5.75% |
|
|
|
|
None |
|
|
|
|
None |
|
Maximum
Deferred Sales Charge (Load) (as a percentage of redemption
price) |
|
|
|
None |
|
|
|
|
None |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends (as a percentage of
amount invested) |
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
Redemption
Fee (as a percentage of amount redeemed for shares held 7 days or
less) |
|
|
|
2.00% |
|
|
|
|
2.00% |
|
|
|
|
2.00% |
|
|
|
|
2.00% |
|
Exchange
Fee |
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
|
|
|
|
|
|
Annual Fund Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(expenses that you pay each
year as a percentage of the value of your
investment): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
Fees |
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
1.00% |
|
Distribution
and Service (Rule 12b‑1) Fees |
|
|
|
0.25% |
|
|
|
|
0.25% |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Other
Expenses |
|
|
|
8.15% |
|
|
|
|
8.15% |
|
|
|
|
8.15% |
|
|
|
|
8.15% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses(1) |
|
|
|
9.40% |
|
|
|
|
9.40% |
|
|
|
|
10.15% |
|
|
|
|
9.15% |
|
Fee
Waiver and/or Expense Reimbursement(1) |
|
|
|
(8.50)% |
|
|
|
|
(8.50)% |
|
|
|
|
(9.25)% |
|
|
|
|
(8.25)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
|
0.90% |
|
|
|
|
0.90% |
|
|
|
|
0.90% |
|
|
|
|
0.90% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
“Other Expenses” are based
on estimated amounts for the current fiscal year. The
Adviser has contractually agreed to waive its investment advisory fees
and/or to reimburse expenses of the Global Mini Mites Fund to the extent
necessary to maintain the Total Annual Fund Operating Expenses After Fee
Waiver and Expense Reimbursement (excluding brokerage costs, acquired fund
fees and expenses, interest, taxes, and extraordinary expenses) at no more
than an annual rate of 0.90% for all classes of shares. Under this same
arrangement, the Global Mini Mites Fund has also agreed, during the two
year period following the year of any such waiver or reimbursement by the
Adviser, to repay such amount, but only to the extent the Global Mini
Mites Fund’s adjusted Total Annual Fund Operating Expenses would not
exceed an annual rate of 0.90% for the applicable class of shares, after
giving effect to the repayments. This arrangement is in effect
through April 30,
2022, and may be terminated only by the Board of Directors
of the Corporation before such time. The Global Mini Mites Fund will carry
forward, for a period not to exceed two years from the date that an amount
is waived, any fees and expenses in excess of the expense limitation and
repay the Adviser such amount provided the Global Mini Mites Fund is able
to do so without exceeding the lesser of (1) the expense limit in
effect at the time of the waiver or reimbursement, as applicable, or
(2) the expense limit in effect at the time of recoupment after
giving effect to the repayment.
|
34
Expense Example
This example
is intended to help you compare the cost of investing in the Global Mini Mites
Fund with the cost of investing in other mutual funds.
The example
assumes that you invest $10,000 in the Global Mini Mites Fund for the time
periods indicated and then redeem all of your shares at the end of those
periods. The example assumes a waiver of expenses through the date of the
expiration of the waiver, and reflects Total Annual Fund Operating Expenses
following the date of the expiration of the waiver. The example also assumes
that your investment has a 5% return each year and that the Global Mini Mites
Fund’s operating expenses remain the same. Although your actual costs may be
higher or lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class
AAA Shares |
|
|
$ |
92 |
|
|
|
$ |
1,964 |
|
|
|
$ |
3,675 |
|
|
|
$ |
7,335 |
|
Class
A Shares |
|
|
$ |
662 |
|
|
|
$ |
2,426 |
|
|
|
$ |
4,038 |
|
|
|
$ |
7,488 |
|
Class
C Shares |
|
|
$ |
192 |
|
|
|
$ |
2,098 |
|
|
|
$ |
3,902 |
|
|
|
$ |
7,660 |
|
Class
I Shares |
|
|
$ |
92 |
|
|
|
$ |
1,919 |
|
|
|
$ |
3,597 |
|
|
|
$ |
7,220 |
|
You would pay the following
expenses if you did not redeem your shares of the Global Mini Mites
Fund:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class
AAA Shares |
|
|
$ |
92 |
|
|
|
$ |
1,964 |
|
|
|
$ |
3,675 |
|
|
|
$ |
7,335 |
|
Class
A Shares |
|
|
$ |
662 |
|
|
|
$ |
2,426 |
|
|
|
$ |
4,038 |
|
|
|
$ |
7,488 |
|
Class
C Shares |
|
|
$ |
92 |
|
|
|
$ |
2,098 |
|
|
|
$ |
3,902 |
|
|
|
$ |
7,660 |
|
Class
I Shares |
|
|
$ |
92 |
|
|
|
$ |
1,919 |
|
|
|
$ |
3,597 |
|
|
|
$ |
7,220 |
|
Portfolio Turnover
The Global
Mini Mites Fund pays transaction costs, such as commissions, when it buys and
sells securities (or “turns over” its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in higher taxes when
the Global Mini Mites Fund’s shares are held in a taxable account. These costs,
which are not reflected in the annual fund operating expenses or in the example,
affect the Global Mini Mites Fund’s performance. During the most recent fiscal
year, the Global Mini Mites Fund’s portfolio turnover rate was 63% of the average value of its portfolio.
Principal Investment
Strategies
The Global
Mini Mites Fund primarily invests in equity securities of micro-cap companies,
which the Global Mini Mites Fund defines as companies that have a market
capitalization (defined as shares outstanding multiplied by the current market
price) of $250 million or less at the time of the Global Mini Mites Fund’s
investment. Equity securities include common stocks (including indirect holdings
of common stock through depositary receipts), as well as other equity securities
such as preferred stocks and convertible securities. Micro-cap companies may be
engaged in new and emerging industries. Micro-cap companies are generally not
well-known to investors and have less of an investor following than larger
companies.
35
As a
“global” fund, the Global Mini Mites Fund invests in securities of issuers, or
related investments thereof, located in at least three countries, and at least
40% of the Global Mini Mites Fund’s total net assets are invested in securities
of non-U.S. issuers or related investments thereof (such as depositary receipts
and derivative instruments). The Global Mini Mites Fund may invest in companies
located in developed or emerging markets as well as in non-equity securities,
such as corporate bonds or other debt securities or financial instruments,
including foreign debt securities.
The
Adviser’s investment philosophy with respect to buying and selling equity
securities is to identify assets that are selling in the public market at a
discount to their private market value (“PMV”), and the Global Mini Mites Fund
focuses on micro-cap companies that appear to be underpriced relative to their
PMV. PMV is the value the Adviser believes informed purchasers would be willing
to pay to acquire a company or other assets with similar characteristics. The
Adviser considers factors such as price, earnings expectations, earnings and
price histories, balance sheet characteristics, and perceived management skills.
The Adviser also considers changes in economic and political outlooks as well as
individual corporate developments. Further, the Adviser looks for catalysts,
factors indigenous to the company, its industry or geographic positioning that
may surface additional value, including, but not limited to, industry
developments, regulatory changes, changes in management, sale or spin-off of a
division, or the development of a profitable new business.
Additionally,
the Adviser may also consider the securities of companies that appear to have
favorable yet undervalued prospects for earnings growth and price appreciation.
In this regard, the Adviser may invest the Global Mini Mites Fund’s assets in
companies that it believes have above average or expanding market shares, profit
margins, and returns on equity. In evaluating growth prospects, the Adviser uses
fundamental security analysis to develop earnings forecasts for companies and to
identify investment opportunities. The Adviser bases its analysis on general
economic and industry data provided by the U.S. Government, various trade
associations and other sources, and published corporate financial data such as
annual reports and quarterly statements as well as direct interviews with
company management. When applying a growth strategy, the Adviser seeks to invest
in companies with high future earnings potential relative to their current
market valuations.
The Adviser
expects to seek to sell investments that lose their perceived value relative to
other investments, which could occur because of, among other things, a security
reaching a predetermined price target, a change to a company’s fundamentals that
make the risk/reward profile unattractive, or a need to improve the overall
risk/reward profile of the Global Mini Mites Fund.
The Global
Mini Mites Fund may invest in non-U.S. equity securities through depositary
receipts, including American Depositary Receipts (“ADRs”), European Depositary
Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global
instruments, which are generally subject to risks associated with equity
securities and investments in foreign (non-U.S.) securities. ADRs are receipts
issued by U.S. banks or trust companies in respect of securities of foreign
issuers held on deposit for use in the U.S. securities markets. EDRs, which are
sometimes referred to as Continental Depositary Receipts, are receipts issued in
Europe, typically by non-U.S. banks and trust companies, that evidence ownership
of either non-U.S. or domestic underlying securities. GDRs are depositary
receipts structured like global debt issues to facilitate trading on an
international basis. ADRs are usually denominated in U.S. dollars and dividends
and other payments from the issuer are converted by the custodian into
U.S. dollars before payment to receipt holders. In most other respects,
ADRs, EDRs and GDRs for foreign securities have the same characteristics as the
underlying securities.
36
Principal Risks
You may want to
invest in the Global Mini Mites Fund if:
|
• |
|
you
seek to diversify your investments outside the U.S.
|
|
• |
|
you
seek exposure to the micro-capitalization market segment despite the
potential volatility of micro‑capitalization stocks.
|
|
• |
|
you
are a long term investor.
|
|
• |
|
you
seek long term growth of capital.
|
The Global
Mini Mites Fund’s share price will fluctuate with changes in the market value of
its portfolio securities. Stocks are subject to market, economic, and business
risks that may cause their prices to fluctuate. An investment in the Global Mini
Mites Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.
When you sell Global Mini
Mites Fund shares, they may be worth less than what you paid for them; you may
lose money by investing in the Global Mini Mites Fund.
Investing in
the Global Mini Mites Fund involves the following risks:
|
• |
|
Equity Market
Risk. The price of equity securities may
rise or fall because of changes in the broad market or changes in a
company’s financial condition, sometimes rapidly or unpredictably. These
price movements may result from factors affecting individual companies,
sectors or industries selected for the Global Mini Mites Fund’s portfolio
or the securities market as a whole, such as changes in economic or
political conditions. When the value of the Global Mini Mites Fund’s
securities goes down, your investment in the Global Mini Mites Fund
decreases in value. |
|
• |
|
Coronavirus (“COVID-19”) and Global Health
Events. COVID-19 and concerns about its
rapid spread and infections have severely impacted business activity in
virtually all economies, markets, and sectors and negatively impacted the
value of many financial and other assets. The duration of the COVID-19
outbreak and its effects cannot be determined with certainty. These events
could have a significant impact on the Global Mini Mites Fund’s
performance, as well as the performance and viability of issuers in which
it invests |
|
• |
|
Foreign Securities
Risk. Investments in foreign securities
involve risks relating to political, social, and economic developments
abroad, as well as risks resulting from the differences between the
regulations to which U.S. and foreign issuers and markets are subject.
These risks include expropriation, tariffs or punitive taxation, differing
accounting and disclosure standards, currency exchange risks, settlement
difficulties, market illiquidity, difficulties enforcing legal rights, and
greater transaction costs. These risks are more pronounced in the
securities of companies located in emerging markets.
|
|
• |
|
Emerging Market
Risk. Foreign securities risks are more
pronounced in emerging markets. Investments in emerging markets may
experience sharp price swings, as there may be less government supervision
and regulation of business in such markets, and may entail risks relating
to political and economic instability and expropriation, nationalization,
confiscation or the imposition of restrictions on foreign investment, lack
of hedging instruments, and restrictions on repatriation of capital
invested. Securities markets in emerging markets may be less liquid and
developed than those in the United States, potentially making prices
erratic. Economic or |
37
|
political
crises may detrimentally affect investments in emerging markets. Emerging
market countries may experience substantial rates of inflation or
deflation. The economies of developing countries tend to be dependent upon
international trade. There may be little financial information available
about emerging market issuers, and it may be difficult to obtain or
enforce a judgment against them. Other risks include a high concentration
of investors, financial intermediaries, and market capitalization and
trading volume in a small number of issuers and industries; vulnerability
to changes in commodity prices due to overdependence on exports, including
gold and natural resources, overburdened infrastructure and obsolete or
unseasoned financial systems; environmental problems; less developed legal
systems; and less reliable securities custodial services and settlement
practices. For all of these reasons, investments in emerging markets may
be considered speculative.
|
|
• |
|
Currency
Risk. Fluctuations in exchange rates between
the U.S. dollar and foreign currencies may negatively affect an
investment. Adverse changes in exchange rates may erode or reverse any
gains produced by foreign currency denominated investments and may widen
any losses. The Global Mini Mites Fund may, but is not required to, seek
to reduce currency risk by hedging part or all of its exposure to various
foreign currencies. In addition, the Global Mini Mites Fund’s investments
could be adversely affected by delays in, or a refusal to grant,
repatriation of funds or conversion of emerging market currencies.
|
|
• |
|
Depositary
Receipts. The Global Mini Mites Fund may
invest in non-U.S. equity securities through depositary receipts,
including ADRs, EDRs, GDRs and other similar global instruments. While
ADRs, EDRs and GDRs may not necessarily be denominated in the same
currency as the securities into which they may be converted, many of the
risks associated with foreign (non-U.S.) securities may also apply to
ADRs, EDRs and GDRs. In addition, the underlying issuers of certain
depositary receipts, particularly unsponsored or unregistered depositary
receipts, are under no obligation to distribute shareholder communications
to the holders of such receipts, or to pass through to them any voting
rights with respect to the deposited securities. Depositary receipts that
are not sponsored by the issuer may be less liquid and there may be less
readily available public information about the issuer.
|
|
• |
|
Micro-Cap Company
Risk. Although micro-cap companies may offer
greater potential for capital appreciation than larger companies,
investing in securities of such companies may involve greater risks than
investing in larger, more established companies, including the risk of
loss and the risk that the Global Mini Mites Fund’s returns may differ
significantly from returns of funds investing in larger-cap companies or
other asset classes. Micro-cap companies may be new or unseasoned
companies which are in their very early stages of development. Micro-cap
companies generally have limited product lines, markets, management
personnel, competitive strengths, research, and financial resources, and
may be more vulnerable to adverse business or market developments. Their
securities may trade less frequently and in more limited volume, and are
subject to more abrupt or erratic market price movements, than the
securities of larger, more established companies. The Global Mini Mites
Fund may be able to deal with only a few market-makers when purchasing and
selling micro-cap securities, and may need a considerable amount of time
to purchase or sell its positions in these securities. Also, micro-cap
companies are typically subject to greater changes in earnings and
business prospects than larger companies. Consequently, micro-cap company
stock prices tend to rise and fall in value more
|
38
|
than
other stock prices. Micro-cap securities are highly volatile, and these
companies may fail to execute their business plans and go out of business.
Micro-cap companies carry additional risks because of the tendency of
their earnings and revenues to be less predictable. Micro-cap companies
may be more vulnerable than larger companies to key personnel losses due
to reliance on a smaller number of management personnel. These conditions,
which create greater opportunities to find securities trading below the
Adviser’s estimate of the company’s current worth, also involve increased
risk. The shares of micro-cap companies may require fair-value pricing,
which is subjective and requires judgment by the Adviser, and may be at
risk for de-listing from a securities exchange, making it difficult for
the Global Mini Mites Fund to buy and sell shares of a particular company.
The actual market prices for a security may differ from the fair value of
that security as determined by the Adviser, and there is no assurance that
the Global Mini Mites Fund will realize fair valuation upon the sale of a
security. In addition, there may be less public information available
about micro-cap companies. It may take a long time before the Global Mini
Mites Fund realizes a gain, if any, on an investment in a micro-cap
company. Micro-cap companies may have limited financial resources and
little or no access to additional credit and therefore may be more
susceptible to market downturns or rising credit costs than larger, more
established companies. The risks of investing in micro-cap companies are
even greater than those of investing in small-cap companies, which may
have market capitalizations of up to $3 billion at the time of
investment. |
|
• |
|
Growth Stock
Risk. Securities of growth companies may be
more volatile since such companies usually invest a high portion of
earnings in their business, and they may lack the dividends of value
stocks that can cushion stock prices in a falling market.
|
|
• |
|
Issuer Risk. The
value of a security may decline for a number of reasons that directly
relate to an issuer, such as management performance, financial leverage,
and reduced demand for the issuer’s goods or services, as well as the
historical and prospective earnings of the issuer and the value of its
assets or factors unrelated to the issuer’s value, such as investor
perception. |
|
• |
|
Management
Risk. If the portfolio managers are
incorrect in their assessment of the growth prospects of the securities
the Global Mini Mites Fund holds, then the value of the Global Mini Mites
Fund’s shares may decline.
|
|
• |
|
Non‑Diversification
Risk. As a non‑diversified mutual fund, more
of the Global Mini Mites Fund’s assets may be focused in the common stocks
of a small number of issuers, which may make the value of the Global Mini
Mites Fund’s shares more sensitive to changes in the market value of a
single issuer or industry and more susceptible to risks associated with a
single economic, political, or regulatory event than a diversified
fund. |
|
• |
|
Liquidity
Risk. Liquidity risk is the risk that
certain of the Global Mini Mites Fund’s securities holdings may be
considered to be illiquid, which means that they may become difficult to
value, purchase, or sell. This could prevent the Global Mini Mites Fund
from purchasing or selling such illiquid securities at an advantageous
time or price, and could require the Global Mini Mites Fund to dispose of
other investments at unfavorable times or prices in order to satisfy its
obligations. Because the trading market for micro and nano-cap stocks is
generally more volatile, thin, and unpredictable relative to larger
capitalization stocks, the Global Mini Mites Fund is subject to greater
liquidity risk than a fund that invests in larger capitalization stocks.
|
39
|
• |
|
Limited Operating
History. The Global Mini Mites Fund
commenced operations on October 1, 2018 and therefore has a limited
operating history and may have higher expenses (although the Global Mini
Mites Fund expects that such expenses would be limited under its Expense
Deferral Agreement with the Adviser). There can be no assurance that the
Global Mini Mites Fund will grow to or maintain an economically viable
size. The Global Mini Mites Fund could cease operations, and investors may
be required to liquidate or transfer their assets at a loss.
|
Performance
The bar chart
and table that follow provide an indication of the risks of investing in the
Global Mini Mites Fund by showing changes in the Global Mini Mites Fund’s
performance from year to year and by showing how the Global Mini Mites Fund’s
average annual returns for one year compared with those of broad based
securities market indices. As with all mutual funds, the
Global Mini Mites Fund’s past performance (before and after taxes) does not
predict how the Global Mini Mites Fund will perform in the future.
Updated information on the Global Mini Mites Fund’s results can
be obtained by visiting www.gabelli.com
GLOBAL MINI MITES FUND
(Total Returns for Class AAA Shares for the Years
Ended December 31)
During the calendar years shown in the bar
chart, the highest return for a
quarter was 33.95% (quarter ended December 31, 2020)
and the lowest return for a quarter
was (32.61)% (quarter ended March 31,
2020).
40
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total
Returns
(for
the periods ended December 31,
2020,
with maximum sales charges, if applicable) |
|
Past One Year |
|
Since Inception (October 1, 2018) |
The
Global Mini Mites Fund Class AAA Shares (first issued on
10/01/18) |
|
|
|
|
|
|
|
|
|
|
Return
Before Taxes |
|
|
|
15.87 |
% |
|
|
|
4.94 |
% |
Return
After Taxes on Distributions |
|
|
|
15.72 |
% |
|
|
|
4.25 |
% |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
|
9.50 |
% |
|
|
|
3.54 |
% |
Class
A Shares (first issued on 10/01/18) |
|
|
|
|
|
|
|
|
|
|
Return
Before Taxes |
|
|
|
9.21 |
% |
|
|
|
2.21 |
% |
Class
C Shares (first issued on 10/01/18) |
|
|
|
|
|
|
|
|
|
|
Return
Before Taxes |
|
|
|
14.81 |
% |
|
|
|
4.56 |
% |
Class
I Shares (first issued on 10/01/18) |
|
|
|
|
|
|
|
|
|
|
Return
Before Taxes |
|
|
|
15.87 |
% |
|
|
|
5.06 |
% |
S&P
Developed SmallCap Index (reflects no deduction for fees, expenses or
taxes) |
|
|
|
16.20 |
% |
|
|
|
8.66 |
% |
Management
The
Adviser. Gabelli Funds, LLC
The Portfolio
Managers. Mr. Mario J. Gabelli, CFA, Chief Investment
Officer — Value Portfolios of the Adviser, and Ms. Sarah Donnelly, Senior Vice
President of GAMCO Investors Inc., will serve as portfolio managers of the
Global Mini Mites Fund and will be jointly and primarily responsible for the
day-to-day management of the Global Mini Mites Fund. Mr. Gabelli and Ms.
Donnelly are assisted by a team of associate portfolio managers comprised of Mr.
Ashish Sinha, Assistant Vice President of GAMCO Asset Management UK, Mr. Hendi
Susanto, Vice President of Associated Capital Group Inc., and Mr. Chong‑Min
Kang, Senior Vice President of GAMCO Investors Inc.
Purchase and Sale of
Fund Shares
Effective
January 27, 2020, the Global Mini Mites Fund’s respective Class AAA, Class A,
and Class C Shares have been “closed to purchases from new investors,” as
described above.
The minimum
initial investment for Class AAA, Class A, and Class C shares will be $10,000
($250 for IRAs or Coverdell Education Savings Plans) when and if initial
investments into Class AAA, A, and C shares are reopened. When and if initial
investments into Class AAA, A, and C shares are reopened, there will be no
minimum initial investment for Class AAA, Class A, and Class C shares in an
automatic monthly investment plan. Class I shares are available to investors
with a minimum investment of $1,000 when purchasing shares directly through
G.distributors, LLC, the Global Mini Mites Fund’s distributor (“G.distributors”
or 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, and which have
different minimum investment amounts. The minimum initial investment for Class I
shares is waived for employee benefit plans with assets of at least $50 million.
If you transact in Class I shares through a broker or financial intermediary,
you may be required to pay a commission and/or other forms of compensation to
the broker or financial intermediary. The Distributor reserves the right to
waive or change minimum investment amounts. There is no minimum for subsequent
investments.
41
Since the
minimum initial investment amount for the Global Mini Mites Fund’s Class I
shares purchased directly through the Distributor is the same as that for all
other classes of the Global Mini Mites Fund’s shares, shareholders still
eligible to purchase Class AAA and Class A shares of the Global Mini Mites Fund
on or after the Effective Date should instead consider purchasing Class I shares
since Class I shares carry no sales load and no ongoing distribution fees.
Investors and shareholders who wish to purchase shares of the Global Mini Mites
Fund through a broker or financial intermediary should consult their broker or
financial intermediary with respect to the purchase of shares of the Global Mini
Mites Fund. Please refer to the Global Mini Mites Fund’s statutory prospectus
for additional information about share class conversions and exchanges among
funds managed by the Adviser or its affiliates.
You can
purchase or redeem shares of the Global Mini Mites Fund on any day the New York
Stock Exchange (“NYSE”) is open for trading (a “Business Day”). You may purchase
or redeem Global Mini Mites Fund shares by written request via mail (The Gabelli
Funds, P.O. Box 219204, Kansas City, MO 64121-9204), personal or overnight
delivery (The Gabelli Funds, c/o DST Asset Manager Solutions, Inc., 430 W
7th Street STE
219204, Kansas City, MO 64105-1407), Internet, bank wire, or Automated Clearing
House (“ACH”) system. You may also purchase Fund shares by telephone if you have
an existing account with banking instructions on file at 800-GABELLI
(800-422-3554).
Shares of
the Global Mini Mites Fund can also be purchased or sold through registered
broker-dealers or financial intermediaries that have entered into appropriate
selling agreements with the Distributor. The broker-dealer or other financial
intermediary will transmit these transaction orders to the Global Mini Mites
Fund on your behalf and send you confirmation of your transactions and periodic
account statements showing your investments in the Global Mini Mites Fund.
Tax Information
The Global
Mini Mites Fund expects that distributions will generally be taxable as ordinary
income or long term capital gains, unless you are investing through a tax
deferred arrangement, such as a 401(k) plan or an IRA.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you
purchase shares of the Global Mini Mites Fund through a broker-dealer or other
financial intermediary (such as a bank), the Global Mini Mites Fund and its
related companies may pay the intermediary for the sale of Global Mini Mites
Fund shares and related services. These payments may create a conflict of
interest by influencing the broker-dealer or other intermediary and your
salesperson to recommend the Global Mini Mites Fund over another investment. For
more information, turn to “Third Party Arrangements” on page 64 of the
prospectus. Ask your salesperson or visit your financial intermediary’s website
for more information.
42
INVESTMENT
OBJECTIVES, INVESTMENT STRATEGIES AND RELATED RISKS
The Global
Content & Connectivity Fund, Global Growth Fund, International Small
Cap Fund, and Global Mini Mites Fund each primarily seek to provide long term
capital appreciation. The secondary goal of each of the Global
Content & Connectivity Fund, Global Growth Fund, and International
Small Cap Fund is to provide current income. The GRID Fund seeks to provide a
high level of total return through current income and appreciation of capital.
Each Fund,
other than the Global Mini Mites Fund, invests primarily in common stocks of
companies which the Funds’ portfolio management teams believe are likely to have
the potential for above average capital appreciation and produce income. The
Global Mini Mites Fund primarily invests in equity securities of micro‑cap
companies, which the Fund defines as companies that have a market capitalization
(defined as shares outstanding multiplied by the current market price) of
$250 million or less at the time of the Fund’s investment. Equity
securities include common stocks (including indirect holdings of common stock
through depositary receipts), as well as other equity securities such as
preferred stocks and convertible securities.
As global
funds, each Fund other than the International Small Cap Fund invests in
securities of issuers, or related investments thereof, located in at least three
countries, and at least 40% of each applicable Fund’s total net assets is
invested in securities of non‑U.S. issuers or related investments thereof (such
as depositary receipts and derivative instruments). As an international fund,
the International Small Cap Fund invests in the securities of issuers located in
at least five countries outside the U.S.
The Funds
may invest in non‑U.S. equity securities through depositary receipts, including
ADRs, EDRs, GDRs and other similar global instruments, which are generally
subject to risks associated with equity securities and investments in foreign
(non‑U.S.) securities. ADRs are receipts issued by U.S. banks or trust companies
in respect of securities of foreign issuers held on deposit for use in the U.S.
securities markets. EDRs, which are sometimes referred to as Continental
Depositary Receipts, are receipts issued in Europe, typically by non‑U.S. banks
and trust companies, that evidence ownership of either non‑U.S. or domestic
underlying securities. GDRs are depositary receipts structured like global debt
issues to facilitate trading on an international basis. ADRs are usually
denominated in U.S. dollars and dividends and other payments from the issuer are
converted by the custodian into U.S. dollars before payment to receipt holders.
In most other respects, ADRs, EDRs and GDRs for foreign securities have the same
characteristics as the underlying securities.
The
Adviser’s investment philosophy with respect to buying and selling equity
securities is to identify assets that are selling in the public market at a
discount to their private market value (“PMV”). PMV is the value the Adviser
believes informed purchasers would be willing to pay to acquire a company or
other assets with similar characteristics.
Undervaluation
of a company’s stock can result from a variety of factors, such as a lack of
investor recognition of:
|
• |
|
the
underlying value of a company’s fixed assets,
|
|
• |
|
the
value of a consumer or commercial franchise,
|
|
• |
|
changes
in the economic or financial environment affecting the company,
|
|
• |
|
new,
improved, or unique products or services,
|
|
• |
|
new or
rapidly expanding markets, |
|
• |
|
technological
developments or advancements affecting the company or its products, and
|
|
• |
|
changes
in governmental regulations, political climate, or competitive conditions.
|
43
The actual
events that may lead to a significant increase in the value of a company’s
securities include:
|
• |
|
a
change in the company’s management policies,
|
|
• |
|
an
investor’s purchase of a large portion of the company’s stock,
|
|
• |
|
a
merger or reorganization or recapitalization of the company,
|
|
• |
|
a sale
of a division of the company, a tender offer (an offer to purchase
investors’ shares), |
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the
spin‑off to shareholders of a subsidiary, division, or other substantial
assets, and |
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the
retirement or death of a senior officer or substantial shareholder of the
company. |
In selecting
investments, the Adviser also considers factors such as price, earnings
expectations, earnings and price histories, balance sheet characteristics, and
perceived management skills. The Adviser likewise considers changes in economic
and political outlooks as well as individual corporate developments. Further,
the Adviser looks for catalysts, factors indigenous to the company, its industry
or geographic positioning that may surface additional value, including, but not
limited to, industry developments, regulatory changes, changes in management,
sale or spin‑off of a division, or the development of a profitable new business.
Additionally,
the Adviser may also consider the securities of companies that appear to have
favorable yet undervalued prospects for earnings growth and price appreciation.
In this regard, the Adviser may invest a Fund’s assets in companies that it
believes have above average or expanding market shares, profit margins, and
returns on equity. In evaluating growth prospects, the Adviser uses fundamental
security analysis to develop earnings forecasts for companies and to identify
investment opportunities. The Adviser bases its analysis on general economic and
industry data provided by the U.S. Government, various trade associations and
other sources, and published corporate financial data such as annual reports and
quarterly statements as well as direct interviews with company management. When
applying a growth strategy, the Adviser seeks to invest in companies with high
future earnings potential relative to their current market valuations.
The Adviser
expects to seek to sell investments that lose their perceived value relative to
other investments, which could occur because of, among other things, a security
reaching a predetermined price target, a change to a company’s fundamentals that
make the risk/reward profile unattractive, or a need to improve the overall
risk/reward profile of the Funds.
The
investment policies of the International Small Cap Fund and the GRID Fund
relating to the type of securities in which 80% of these Funds’ net assets must
be invested may be changed by the Board of Directors (the “Board”) without
shareholder approval. Shareholders of the applicable Fund will, however, receive
at least sixty days’ notice prior to any change in these policies.
The Funds
may also use the following investment techniques:
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Defensive
Investments. When adverse market or economic
conditions occur, each Fund may temporarily invest all or a portion of its
assets in defensive investments. Such investments include fixed income
securities, money market instruments, obligations of the U.S. government
and its agencies, and instrumentalities, or repurchase agreements. When
following a defensive strategy, a Fund will be less likely to achieve its
investment goal. |
The Funds
may also engage in other investment practices in order to achieve their
investment objective. These are briefly discussed in the Statement of Additional
Information (“SAI”), which may be obtained by calling 800‑GABELLI
(800‑422‑3554), your financial intermediary, or free of charge through the
Funds’ website at www.gabelli.com.
44
Investing in
the Funds involves risks. Generally, a Fund’s share price will fluctuate with
changes in the market value of the Fund’s portfolio securities. Stocks are
subject to market, economic, and business risks that may cause their prices to
fluctuate. The Funds are also subject to the risk that the Adviser’s judgments
about above average growth potential of a particular company is incorrect and
that the perceived value of such company’s stock is not realized by the market,
or that the price of a Fund’s portfolio securities will decline.
In addition
to the general risks noted above, investing in the Funds also involves the
following risks:
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Concentration
Risk. Global Content & Connectivity Fund only
— Because the Global Content & Connectivity Fund will invest
more than 25% of its total assets in securities of companies in the
telecommunications related industry, the Global Content & Connectivity
Fund may be subject to greater volatility with respect to its portfolio
securities than a fund that is more broadly diversified. As the
diversification of the Global Content & Connectivity Fund’s holdings
is measured at the time of purchase, certain securities may become a
larger percentage of the Global Content & Connectivity Fund’s total
assets due to movements in the financial markets. If the markets affect
several securities held by the Global Content & Connectivity Fund, it
may have a greater percentage of its assets invested in securities of
fewer issuers. Accordingly, the Global Content & Connectivity Fund is
subject to the risk that its performance may be hurt disproportionately by
the poor performance of relatively few securities.
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Convertible
Securities. GRID Fund only — The characteristics of
convertible securities make them appropriate investments for investors who
seek a high level of total return and are able to tolerate the addition of
credit risk. These characteristics include the potential for capital
appreciation if the value of the underlying common stock increases, the
relatively high yield received from dividend or interest payments as
compared to common stock dividends, and decreased risks of decline in
value, relative to the underlying common stock due to their fixed income
nature. As a result of the conversion feature, however, the interest rate
or dividend preference on a convertible security is generally lower than
would be the case if the securities were not convertible. During periods
of rising interest rates, it is possible that the potential for capital
gain on a convertible security may be less than that of a common stock
equivalent if the yield on the convertible security is at a level which
causes it to sell at a discount. Any common stock or other equity security
received by conversion will not be included in the calculation of the
percentage of total assets invested in convertible securities.
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Credit Risk for Convertible Securities and Fixed
Income Securities. GRID Fund only — Many convertible
securities are not investment grade, that is, not rated within the four
highest categories by S&P and Moody’s. To the extent that the Fund’s
convertible securities and any other fixed income securities are rated
lower than investment grade or are not rated, there would be a greater
risk as to the timely repayment of the principal of, and timely payment of
interest or dividends on, those securities.
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Interest Rate
Risk. GRID
Fund only — The primary risk associated with dividend- and
interest-paying securities is interest rate risk. A decrease in interest
rates will generally result in an increase in the investment value of such
securities, while increases in interest rates will generally result in a
decline in its investment value. This effect is generally more pronounced
for fixed rate securities than for securities whose income rate is
periodically reset. The Fund may be subject to a greater
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risk
of rising interest rates due to the current period of historically low
interest rates. There is a possibility that interest rates may rise in the
future. |
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Equity Market
Risk. The price of equity securities may
rise or fall because of changes in the broad market or changes in a
company’s financial condition, sometimes rapidly or unpredictably. These
price movements may result from factors affecting individual companies,
sectors or industries selected for a Fund’s portfolio or the securities
market as a whole, such as changes in economic or political conditions.
When the value of a Fund’s securities goes down, your investment in the
Fund decreases in value. |
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Equity
Risk. Equity risk is the risk that the
prices of the securities held by the Funds will change due to general
market and economic conditions, perceptions regarding the industries in
which the companies issuing the securities participate and the issuer
company’s particular circumstances. These fluctuations may cause a
security to be worth less than it was worth when it was purchased by a
Fund. Because the value of securities, and thus shares of the Funds, could
decline, you could lose money. GRID Fund
only — Dividends on common equity securities are not fixed but are
declared at the discretion of an issuer’s board of directors. Companies
that have historically paid dividends on their securities are not required
to continue to pay dividends on such securities. There is no guarantee
that the issuers of the common equity securities will declare dividends in
the future or that, if declared, they will remain at current levels or
increase over time. Therefore, there is the possibility that such
companies could reduce or eliminate the payment of dividends in the
future. The GRID Fund’s investments in dividend producing equity
securities may also limit its potential for appreciation during a broad
market advance. The prices of dividend producing equity securities can be
highly volatile. Investors should not assume that the GRID Fund’s
investments in these securities will necessarily reduce the volatility of
the GRID Fund’s NAV or provide “protection,” compared to other types of
equity securities, when markets perform poorly.
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Coronavirus (“COVID‑19”) and Global Health Event
Risk. As of the filing date of this
prospectus, there is an outbreak of a highly contagious form of a novel
coronavirus known as “COVID‑19.” COVID‑19 has been declared a pandemic by
the World Health Organization and, in response to the outbreak, the U.S.
Health and Human Services Secretary has declared a public health emergency
in the United States. COVID‑19 has had a devastating impact on the global
economy, including the U.S. economy, and has resulted in a global economic
recession. Many states have issued orders requiring the closure of
non‑essential businesses and/or requiring residents to stay at home. The
COVID‑19 pandemic and preventative measures taken to contain or mitigate
its spread have caused, and are continuing to cause, business shutdowns,
cancellations of events and travel, significant reductions in demand for
certain goods and services, reductions in business activity and financial
transactions, supply chain interruptions and overall economic and
financial market instability both globally and in the United States. Such
effects will likely continue for the duration of the pandemic, which is
uncertain, and for some period thereafter. While several countries, as
well as certain states, counties and cities in the United States, began to
relax the early public health restrictions with a view to partially or
fully reopening their economies, many cities, both globally and in the
United States, have since experienced a surge in the reported number of
cases and hospitalizations related to the COVID‑19 pandemic. This increase
in cases has led to the re‑introduction of restrictions and business
shutdowns in certain states, counties and cities in the United States and
globally and could continue to lead to the re‑introduction of such
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restrictions
elsewhere. Additionally, in December 2020, the U.S. Food and Drug
Administration (“FDA”) authorized vaccines produced by Pfizer‑BioNTech and
Moderna for emergency use, and in February 2021, the FDA authorized
vaccines produced by Johnson & Johnson for emergency use.
However, it remains unclear how quickly the vaccines will be
distributed nationwide and globally, whether vaccine distributions may be
paused or when “herd immunity” will be achieved and the restrictions that
were imposed to slow the spread of the virus will be lifted entirely. The
delay in distributing the vaccines could lead people to continue
to self-isolate and not participate in the economy at pre‑pandemic levels
for a prolonged period of time. Even after the COVID‑19 pandemic subsides,
the U.S. economy and most other major global economies may continue to
experience a substantial economic downturn or recession, and our business
and operations, as well as the business and operations of our portfolio
companies, could be materially adversely affected by a prolonged economic
downturn or recession in the United States and other major markets.
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Despite
actions of the U.S. federal government and foreign governments, the uncertainty
surrounding the COVID‑19 pandemic and other factors has contributed to
significant volatility and declines in the global public equity markets and
global debt capital markets, including the net asset value of the Funds’ shares.
These events could have, and/or have had, a significant impact on a Funds’
performance, net asset value, income, operating results and ability to pay
distributions, as well as the performance, income, operating results and
viability of issuers in which it invests.
It is
virtually impossible to determine the ultimate impact of COVID‑19 at this time.
Further, the extent and strength of any economic recovery after the COVID‑19
pandemic abates, including following any “second wave,” “third wave” or other
intensifying of the pandemic, is uncertain and subject to various factors and
conditions. Accordingly, an investment in the Funds is subject to an elevated
degree of risk as compared to other market environments.
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Event Driven
Risk. GRID
Fund and Global Mini Mites Fund only — The principal risk
associated with event driven investments is that certain of the events may
not happen or the market may react differently than expected to the
anticipated transaction. Furthermore, even if the event occurs or is
announced, it may be renegotiated, terminated, involve a longer time frame
than originally contemplated or may not actually happen. Additionally,
forced sellers may reduce prices and/or marks to market. Event driven
investment transactions are also subject to the risk of overall market
movements. To the extent that a general increase or decline in securities
values affects the securities involved in an event driven position of the
GRID Fund differently, the position may be exposed to loss. Accordingly,
the GRID Fund may realize losses due to the risks involved with event
driven investing which negatively impact the value of its shares.
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Growth Stock
Risk. Securities of growth companies may be
more volatile since such companies usually invest a high portion of
earnings in their business, and they may lack the dividends of value
stocks that can cushion stock prices in a falling market. Stocks of
companies the Adviser believes are fast-growing may trade at a higher
multiple of current earnings than other stocks. The values of these stocks
may be more sensitive to changes in current or expected earnings than the
values of other stocks. Earnings disappointments often lead to sharply
falling prices because investors buy growth stocks in anticipation of
superior earnings growth. If the Adviser’s assessment of the prospects for
a company’s earnings growth is wrong, or if the Adviser’s judgment of how
other investors will value the company’s earnings growth is
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wrong,
then the price of the company’s stock may fall or may not approach the
value that the Adviser has placed on it. |
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Foreign Securities
Risk. A Fund that invests outside the United
States carries additional risks that include:
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Currency Risk — Fluctuations in
exchange rates between the U.S. dollar and foreign currencies may
negatively affect an investment. Adverse changes in exchange rates may
erode or reverse any gains produced by foreign currency denominated
investments and may widen any losses. Each Fund may, but is not required
to, seek to reduce currency risk by hedging part or all of its exposure to
various foreign currencies. In addition, a Fund’s investments could be
adversely affected by delays in, or a refusal to grant, repatriation of
funds or conversion of emerging market currencies.
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Information Risk — Key
information about an issuer, security, or market may be inaccurate or
unavailable. |
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Political Risk — Foreign
governments may expropriate assets, impose capital or currency controls,
impose tariffs or punitive taxes, or nationalize a company or industry.
Any of these actions could have a severe effect on security prices and
impair each Fund’s ability to bring its capital or income back to the
United States. Other political risks include economic policy changes,
social and political instability, military action, and war.
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Liquidity Risk — Foreign
securities are sometimes less liquid than securities of comparably sized
U.S. issuers. |
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Access Risk — The risk that
some countries may restrict a Fund’s access to investments or offer terms
that are less advantageous than those for local investors. This could
limit the attractive investment opportunities available to each Fund.
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Eurozone Investment Risks — A number of
countries in the European Union (the “EU”) have experienced, and may
continue to experience, severe economic and financial difficulties,
increasing the risk of investing in the European markets. On June 23,
2016, the United Kingdom held a referendum in which voters approved an
exit from the EU, commonly referred to as “Brexit”. The United Kingdom’s
withdrawal from the EU occurred on January 31, 2020, and the United
Kingdom remained in the EU’s customs union and single market until
December 31, 2020 (the “Transition Period”). The United Kingdom and the EU
agreed to a Trade and Cooperation Agreement on December 24, 2020 (the
“TCA”), which is intended to be operative from the end of the Transition
Period. The TCA was ratified by the United Kingdom on December 30, 2020,
which is provisionally applicable since January 1, 2021. The TCA awaits
the final agreement of the relevant EU institutions. Until then, the TCA
governs the United Kingdom’s relationship with the EU on an interim basis.
While the TCA regulates a number of important areas, significant parts of
the United Kingdom economy are not addressed in detail by the TCA,
including in particular the services sector, which represents the largest
component of the United Kingdom’s economy. A number of issues,
particularly in relation to the financial services sector, remain to be
resolved through further bilateral negotiations, which are currently
expected to begin in the early part of 2021. As a result, the new
relationship between the United Kingdom and the EU could in the
short-term, and possibly for longer, cause disruptions to and create
uncertainty in the United |
48
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Kingdom
and European economies, prejudice to financial services businesses that
are conducting business in the EU and which are based in the United
Kingdom, legal uncertainty regarding achievement of compliance with
applicable financial and commercial laws and regulations, and the
unavailability of timely information as to expected legal, tax and other
regimes. During this period of uncertainty, the negative impact on not
only the United Kingdom and European economies, but the broader global
economy, could be significant, potentially resulting in increased market
and currency volatility (including volatility of the value of the British
pound sterling relative to the United States dollar and other currencies
and volatility in global currency markets generally), and illiquidity and
lower economic growth for companies that rely significantly on Europe for
their business activities and revenues. In addition, certain European
countries have recently experienced negative interest rates on certain
fixed-income instruments. To the extent that a Fund has exposure to
European markets or to transactions tied to the value of the euro, these
events could negatively affect the value and liquidity of the Fund’s
investments. All of these developments may continue to significantly
affect the economies of all EU countries, which in turn may have a
material adverse effect on a Fund’s investments in such countries, other
countries that depend on EU countries for significant amounts of trade or
investment, or issuers with exposure to debt issued by certain EU
countries. |
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Globalization Risks — The
growing inter-relationship of global economies and financial markets has
increased the effect of conditions in one country or region on issuers of
securities in a different country or region. In particular, events or
developments that interrupt the global supply chain, such as pandemic
risks relating to a novel strain of the coronavirus (COVID-19), the
adoption or prolongation of protectionist trade policies by one or more
countries, changes in economic or monetary policy in the US or abroad, or
a slowdown in the US economy, could lead to a decrease in demand for
products and reduced flows of capital and income to companies in other
countries. Those events might particularly affect companies in emerging
countries. |
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Emerging Market
Risk. Foreign securities risks are more
pronounced in emerging markets. Investments in emerging markets may
experience sharp price swings, as there may be less government supervision
and regulation of business in such markets, and may entail risks relating
to political and economic instability and expropriation, nationalization,
confiscation or the imposition of restrictions on foreign investment, lack
of hedging instruments, and restrictions on repatriation of capital
invested. Securities markets in emerging markets may be less liquid and
developed than those in the United States, potentially making prices
erratic. Economic or political crises may detrimentally affect investments
in emerging markets. Emerging market countries may experience substantial
rates of inflation or deflation. The economies of developing countries
tend to be dependent upon international trade. There may be little
financial information available about emerging market issuers, and it may
be difficult to obtain or enforce a judgment against them. Other risks
include a high concentration of investors, financial intermediaries, and
market capitalization and trading volume in a small number of issuers and
industries; vulnerability to changes in commodity prices due to
overdependence on exports, including gold and natural resources,
overburdened infrastructure and obsolete or unseasoned financial systems;
environmental problems; less developed legal systems; and less reliable
securities custodial services and settlement practices. For all of these
reasons, investments in emerging markets may be considered speculative.
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Depositary
Receipts. The Funds may invest in non-U.S. equity
securities through depositary receipts, including ADRs, EDRs, GDRs and
other similar global instruments. While ADRs, EDRs and GDRs may not
necessarily be denominated in the same currency as the securities into
which they may be converted, many of the risks associated with foreign
(non-U.S.) securities may also apply to ADRs, EDRs and GDRs. In addition,
the underlying issuers of certain depositary receipts, particularly
unsponsored or unregistered depositary receipts, are under no obligation
to distribute shareholder communications to the holders of such receipts,
or to pass through to them any voting rights with respect to the deposited
securities. Depositary receipts that are not sponsored by the issuer may
be less liquid and there may be less readily available public information
about the issuer. |
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Micro-Cap Company
Risk. Global Mini Mites Fund only — Although
micro-cap companies may offer greater potential for capital appreciation
than larger companies, investing in securities of such companies may
involve greater risks than investing in larger, more established
companies, including the risk of loss and the risk that the Fund’s returns
may differ significantly from returns of funds investing in larger-cap
companies or other asset classes. Micro-cap companies may be new or
unseasoned companies which are in their very early stages of development.
Micro-cap companies generally have limited product lines, markets,
management personnel, competitive strengths, research, and financial
resources, and may be more vulnerable to adverse business or market
developments. Their securities may trade less frequently and in more
limited volume, and are subject to more abrupt or erratic market price
movements, than the securities of larger, more established companies. The
greater price volatility of micro‑cap stocks may result from the fact that
there may be less market liquidity, less information publicly available,
or fewer investors who monitor the activities of those companies. The Fund
is also subject to the risk that micro‑cap stocks fall out of favor
generally with investors. The Fund may be able to deal with only a few
market-makers when purchasing and selling micro-cap securities, and may
need a considerable amount of time to purchase or sell its positions in
these securities. Also, micro-cap companies are typically subject to
greater changes in earnings and business prospects than larger companies.
Consequently, micro-cap company stock prices tend to rise and fall in
value more than other stock prices. Micro-cap securities are highly
volatile, and these companies may fail to execute their business plans and
go out of business. Micro-cap companies carry additional risks because of
the tendency of their earnings and revenues to be less predictable.
Micro-cap companies may be more vulnerable than larger companies to key
personnel losses due to reliance on a smaller number of management
personnel. These conditions, which create greater opportunities to find
securities trading below the Adviser’s estimate of the company’s current
worth, also involve increased risk. The shares of micro-cap companies may
require fair-value pricing, which is subjective and requires judgment by
the Adviser, and may be at risk for de-listing from a securities exchange,
making it difficult for the Fund to buy and sell shares of a particular
company. The actual market prices for a security may differ from the fair
value of that security as determined by the Adviser, and there is no
assurance that the Fund will realize fair valuation upon the sale of a
security. In addition, there may be less public information available
about micro-cap companies. It may take a long time before the Fund
realizes a gain, if any, on an investment in a micro-cap company.
Micro-cap companies may have limited financial resources and little or no
access to additional credit and therefore may be more susceptible to
market downturns or rising credit costs than larger, more
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established
companies. The risks of investing in micro-cap companies are even greater
than those of investing in small-cap companies, which may have market
capitalizations of up to $3 billion at the time of investment.
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Industry Risk. Global
Content & Connectivity Fund only — Telecommunications — The
telecommunications industry is subject to governmental regulation and a
greater price volatility than the overall market, and telecommunications
companies can be adversely affected by, among other things, changes in
government regulation, intense competition, dependency on patent
protection, significant capital expenditures, heavy debt burdens, rapid
obsolescence of products and services due to product compatibility or
changing consumer preferences and strong market reactions to technological
developments throughout the industry, among other things. Government
actions around the world, specifically in the area of pre-marketing
clearance of products and prices, can be arbitrary and unpredictable.
Changes in world currency values are also unpredictable and can have a
significant short term impact on revenues, profits, and share valuations.
Certain telecommunications companies allocate greater than usual financial
resources to research and product development. The securities of such
companies may experience above-average price movements associated with the
perceived prospects of success of the research and development programs.
In addition, companies in which the Global Content & Connectivity
Fund invests may be adversely affected by lack of commercial acceptance of
a new product or process or by technological change and obsolescence.
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Media — Companies engaged in the design,
production or distribution of goods or services for the media industry may
become obsolete quickly. Media companies are subject to risks that include
cyclicality of revenues and earnings, a decrease in the discretionary income of
targeted individuals, changing consumer tastes and interests, fierce competition
in the industry and the potential for increased government regulation. Media
company revenues largely are dependent on advertising spending. A weakening
general economy or a shift from online to other forms of advertising may lead to
a reduction in discretionary spending on online advertising. Competitive
pressures and government regulation can significantly affect media companies.
Additionally, intellectual property rights are very important to many media
companies and the expiration of intellectual property rights or other events
that adversely affect a media company’s intellectual property rights may
materially and adversely affect the value of its securities.
Information Technology — The market prices of
technology and technology-related stocks tend to exhibit a greater degree of
market risk and price volatility than other types of investments. These stocks
may fall in and out of favor with investors rapidly, which may cause sudden
selling and dramatically lower market prices. These stocks also may be affected
adversely by changes in technology, consumer and business purchasing patterns,
short product cycles, falling prices and profits, government regulation, lack of
standardization or compatibility with existing technologies, intense
competition, aggressive pricing, dependence on copyright and/or patent
protection and/or obsolete products or services. Certain technology-related
companies may face special risks that their products or services may not prove
to be commercially successful. Technology-related companies are also strongly
affected by worldwide scientific or technological developments. As a result,
their products may rapidly become obsolete. Such companies are also often
subject to governmental regulation and may, therefore, be adversely affected by
governmental policies. In addition, a rising interest rate environment tends to
negatively affect
51
technology
and technology-related companies. In such an environment, those companies with
high market valuations may appear less attractive to investors, which may cause
sharp decreases in the companies’ market prices. Further, those technology or
technology-related companies seeking to finance their expansion would have
increased borrowing costs, which may negatively impact their earnings. As a
result, these factors may negatively affect the performance of the Global
Content & Connectivity Fund. Finally, the Global Content &
Connectivity Fund may be susceptible to factors affecting the technology and
technology-related industries, and the Global Content & Connectivity
Fund’s NAV may fluctuate more than a fund that invests in a wider range of
industries. Technology and technology-related companies are often smaller and
less experienced companies and may be subject to greater risks than larger
companies, such as limited product lines, markets and financial and managerial
resources.
These risks
may be heightened for telecommunications, media, and technology companies in
foreign markets.
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Liquidity
Risk. Global Mini Mites Fund only — Liquidity
risk is the risk that certain of the Fund’s securities holdings may be
considered to be illiquid, which means that they may be difficult to
value, purchase, or sell. This could prevent the Fund from purchasing or
selling such illiquid securities at an advantageous time or price, and
could require the Fund to dispose of other investments at unfavorable
times or prices in order to satisfy its obligations, which could delay the
redemption of Fund shares. Because the trading market for micro-cap stocks
is generally more volatile, thin and unpredictable relative to larger
capitalization stocks, the Fund is subject to greater liquidity risk than
a fund that invests in larger capitalization stocks. The Fund is permitted
to have 15% of its assets invested in illiquid securities. While the
Adviser intends to manage the liquidity profile of the Fund in a manner
consistent with this limitation and in a manner that is in the best
interests of the Fund and its shareholders, it is also possible that
positions that were liquid at the time of acquisition may become illiquid,
which could in turn cause the Fund not to be in compliance with its 15%
illiquid securities limit. This could occur as a result of general
volatility in the market for a particular micro-cap stock, or as a result
of adverse market or economic conditions independent of any specific
adverse changes in the conditions of a particular issuer or the market for
its securities. In such instances the Fund will seek to bring its
portfolio back within the 15% illiquid securities limit in an orderly
manner. During such periods the Fund will not be able to acquire any
additional illiquid securities, which could cause the Fund to pass on what
would be otherwise desirable investment opportunities and may impact the
Fund’s ability to achieve its desired level of exposure to a certain
issuer or sector. Liquidity risk may be magnified in rising interest rate
environments due to higher than normal redemption rates. Periods of heavy
redemption could cause the Fund to sell assets at a loss or depressed
value, which could negatively affect performance, and this risk is
heightened during periods of declining or illiquid markets; however, as
described above, the Adviser intends to actively manage the liquidity
profile of the Fund so that it is able to meet redemption requests without
significant dilution to remaining shareholders’ interests in the Fund and
the Corporation’s Board believes that the Fund’s investment policies
provide the Fund with sufficient flexibility in managing its liquidity
risk. Additionally, breaches of the 15% illiquid securities limit will
require various reporting to the Corporation’s Board and to the SEC, which
could result in additional costs that could impact returns. See
“Investment Strategies and Risks — Government Intervention in Financial
Markets Risk” in the SAI for additional information.
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Lower Rated
Securities. GRID Fund only — Lower rated securities
may involve major risk exposures such as increased sensitivity to interest
rate and economic changes, and the market to sell such securities may be
limited. These securities are often referred to in the financial press as
“junk bonds” and are generally considered speculative investments with
increased credit risks. As part of its investment in lower grade
securities, the Fund may also invest in securities of issuers in default.
The Fund will make an investment in securities of issuers in default only
when the Adviser believes that such issuers will honor their obligations
or emerge from bankruptcy protection under a plan pursuant to which the
securities received by the Fund in exchange for its defaulted securities
will have a value in excess of the Fund’s investment. By investing in
securities of issuers in default, the Fund bears the risk that these
issuers will not continue to honor their obligations or emerge from
bankruptcy protection or that the value of the securities will not
otherwise appreciate. |
|
• |
|
Issuer Risk. The
value of a security may decline for a number of reasons that directly
relate to an issuer, such as management performance, financial leverage,
and reduced demand for the issuer’s goods or services, as well as the
historical and prospective earnings of the issuer and the value of its
assets or factors unrelated to the issuer’s value, such as investor
perception. |
|
• |
|
Management
Risk. If the portfolio managers are
incorrect in their assessment of the growth prospects of the securities a
Fund holds, then the value of such Fund’s shares may decline. In addition,
the portfolio managers’ strategy may produce returns that are different
from other mutual funds that invest in similar securities.
|
|
• |
|
Limited Operating
History. Global Mini Mites Fund only — The Fund
commenced operations on October 1, 2018 and therefore has a limited
operating history and may have higher expenses (although the Company
expects that such expenses would be limited under its Expense Deferral
Agreement with the Adviser). There can be no assurance that the Fund will
grow to or maintain an economically viable size. The Fund could cease
operations, and investors may be required to liquidate or transfer their
assets at a loss. |
|
• |
|
Non‑Diversification
Risk. Each Fund is classified as a
“non-diversified” mutual fund, which means that a greater proportion of
its assets may be invested in the securities of a single issuer than a
“diversified” mutual fund. As non‑diversified mutual funds, more of each
Fund’s assets may be focused in the common stocks of a small number of
issuers, which may make the value of each Fund’s shares more sensitive to
changes in the market value of a single issuer or industry than shares of
a diversified mutual fund. The ability to invest in a more limited number
of securities may increase the volatility of each Fund’s investment
performance, as each Fund may be more susceptible to risks associated with
a single economic, political, or regulatory event than a diversified fund.
If the securities in which each Fund invests perform poorly, each Fund
could incur greater losses than it would have had if it had been invested
in a greater number of securities. |
|
• |
|
Smaller Capitalization
Risk. Global Content & Connectivity Fund, Global
Growth Fund, and International Small Cap Fund — Risk is greater for
the securities of smaller capitalization companies (including small
unseasoned companies that have been in operation for less than three
years) because they generally are more vulnerable than larger companies to
adverse business or economic developments and they may have more limited
resources. The securities of smaller capitalization companies also may
trade less frequently and in smaller volume than
|
53
|
larger
companies. As a result, the value of such securities may be more volatile
than the securities of larger companies, and a Fund may experience
difficulty in purchasing or selling such securities at the desired time
and price. |
Portfolio Holdings. A
description of the Funds’ policies and procedures with respect to the disclosure
of each Fund’s portfolio securities is available in the Funds’ SAI, which may be
obtained by calling 800‑Gabelli (800-422-3554), your financial intermediary, or
free of charge through the Funds’ website at www.gabelli.com.
MANAGEMENT OF THE
FUNDS
The Adviser. Gabelli
Funds, LLC, with its principal offices located at One Corporate Center, Rye,
New York 10580-1422, is a New York limited liability company that serves as
investment adviser to the Funds. The Adviser makes investment decisions for the
Funds and continuously reviews and administers the Funds’ investment programs
and manages the operations of each Fund under the general supervision of the
Corporation’s Board. The Adviser also manages several other open‑end and
closed‑end investment companies in the Gabelli/GAMCO family of funds
(“Gabelli/GAMCO Fund Complex” or “Fund Complex”). The Adviser is a wholly owned
subsidiary of GAMCO Investors, Inc. (“GBL”), a publicly held company listed on
the NYSE.
As
compensation for its services and related expenses borne by the Adviser, the
Adviser is entitled to an advisory fee for each Fund, computed daily and payable
monthly, at the annual rates of 1.00% of the value of the respective average
daily net assets of each Fund.
The Adviser
has contractually agreed to waive its investment advisory fees and/or reimburse
expenses to the extent necessary to maintain each Fund’s Total Annual Fund
Operating Expenses (excluding brokerage costs, acquired fund fees and expenses,
interest, taxes, and extraordinary expenses) at no more than an annual rate of
0.90% for each class of shares. These fee waiver and expense reimbursement
arrangements are in effect through April 30, 2022 and may be terminated only by
the Board of Directors of the Corporation before such time.
In addition,
the Funds will carry forward, for a period not to exceed three years from the
date that an amount is waived, any fees and expenses in excess of the expense
limitation and repay the Adviser such amount provided the Fund is able to do so
without exceeding the lesser of (1) the expense limit in effect at the time
of the waiver or reimbursement, as applicable, or (2) the expense limit in
effect at the time of recoupment after giving effect to the repayment.
Each Fund’s
annual report to shareholders for the period ended December 31, 2020,
contains a discussion of the basis of the Board’s determinations to continue the
investment advisory agreements as described above.
The Portfolio Managers.
Mr. Mario J.
Gabelli, CFA, is primarily responsible for the day to day investment management
of the GRID Fund. He is also jointly and primarily responsible for the day to
day investment management of the Global Mini Mites Fund. Mr. Gabelli is Chairman
and Chief Investment Officer of GBL and Executive Chairman of Associated Capital
Group, Inc. (“Associated Capital”); Chief Investment Officer — Value Portfolios
of GBL, the Adviser, and GAMCO Asset Management, Inc. (“GAMCO”), another wholly
owned subsidiary of
54
GBL; Chief
Executive Officer and Chief Investment Officer of GGCP, Inc.; and an officer or
director of other companies affiliated with GBL. Mr. Gabelli serves as portfolio
manager for and is a director of several funds in the Gabelli/GAMCO Fund
Complex. Mr. Gabelli serves as portfolio manager for and is a director of
several funds in the Gabelli/GAMCO Fund Complex. The Adviser relies to a
considerable extent on the expertise of Mr. Gabelli, who may be difficult
to replace in the event of his death, disability, or resignation.
In managing
the portfolio of The International Small Cap Fund, the Adviser also uses the
services of Gustavo Pifano and Ashish Sinha, investment professionals of an
affiliate, GAMCO Asset Management (UK) Limited (“GAMCO UK”). Mr. Pifano joined
the firm in 2008 and is an Assistant Vice President for research based in
London. He covers the industrial and consumer sectors with a focus on small-cap
stocks. Mr. Pifano holds a Bachelor of Business Administration in Finance from
the University of Miami and an MBA from the University of Oxford Said Business
School.
Mr. Sinha
joined GAMCO UK in 2012 as a research analyst and is an Assistant Vice
President. Mr. Sinha holds a Bachelor of Business Administration from IMS, India
and a Master of International Business from the Indian Institute of Foreign
Trade, India. He is a Chartered Financial Analyst.
In keeping
with applicable regulatory guidance, GAMCO UK entered into a Memorandum of
Understanding (“MOU”) with the Adviser pursuant to which GAMCO UK is considered
a “Participating Affiliate” of the Adviser as that term is used in relief
granted by the staff of the SEC allowing U.S. registered investment advisers to
use portfolio management and trading resources of advisory affiliates subject to
the supervision of a registered adviser.
Mr. Caesar
M.P. Bryan is primarily responsible for the day to day investment management of
the International Small Cap Fund and manages a portion of the assets of the
Global Growth Fund. Mr. Bryan joined GBL in 1994, and is currently a Senior Vice
President of GBL and serves as portfolio manager for the Adviser managing
several funds in the Gabelli/GAMCO Fund Complex, GAMCO, and Gabelli &
Partners LLC, an affiliate of the Adviser.
Mr. Sergey
Dluzhevskiy, CFA, CPA, is an associate portfolio manager for the Global Content
& Connectivity Fund. Mr. Dluzhevskiy joined GBL 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 the Adviser. Prior to joining Gabelli, Mr. Dluzhevskiy was a senior
accountant at Deloitte.
Ms. Sarah
Donnelly, Senior Vice President of GBL, is jointly and primarily responsible for
the day to day investment management of the Global Mini Mites Fund.
Ms. Donnelly joined GAMCO in 1999 as a junior analyst working with the
consumer staples and media analysts. She received a BS degree in Business
Administration with a concentration in Finance and minor in History from Fordham
University and currently serves on the advisory board on the Gabelli Center for
Global Security Analysis at Fordham University.
Mr.
Chong-Min Kang, Senior Vice President of GBL, is an associate portfolio manager
for the Global Mini Mites Fund. Mr. Kang joined the firm in 2007 as a research
analyst. Mr. Kang received a BA degree from Boston College and an MBA from the
Columbia Business School.
Mr. Evan
Miller, CFA, is an associate portfolio manager for the Global Content &
Connectivity Fund. Mr. Miller joined GBL in 2002 as a research analyst
following the telecommunications industry on a global
55
basis.
Currently, he continues to specialize in the industry and also serves as a
portfolio manager of the Adviser. Prior to joining Gabelli, his career spanned
nearly a quarter century in the telecommunications industry with corporate
strategy and business development positions.
Mr. Ashish
Sinha, Assistant Vice President of GAMCO Asset Management UK, is an associate
portfolio manager for the Global Mini Mites Fund. Mr. Sinha joined GAMCO UK in
2012 as a research analyst. He has a BSBA degree from the Institute of
Management Studies, and a MB from IIFT.
Mr.
Christopher D. Ward, CFA, Vice President
of GBL, has served as an associate portfolio manager of the Global Growth Fund
since May 1, 2018. He joined the GAMCO Growth team in 2015 as Vice President and
Research Analyst. Prior to joining GAMCO, Mr. Ward spent five years at Morgan
Stanley Private Wealth Management where he served as Director of Business
Strategy. Before joining Morgan Stanley, he was with the GFI Group, Inc., a
wholesale institutional brokerage firm. Mr. Ward is a member of the New York
Society of Security Analysts. He graduated from Boston College with a B.A. in
Economics.
Mr. Hendi
Susanto, Vice President of Associated Capital Group Inc., is an associate
portfolio manager for the Global Mini Mites Fund. Mr. Susanto joined Gabelli in
2007 as a research analyst. He currently covers the global technology industry.
Mr. Susanto received a BS degree summa cum laude from the University of
Minnesota, a MS from M.I.T., and an MBA from the Wharton School of Business.
Mr. Howard
F. Ward, CFA, Senior Vice President of GBL, is a portfolio manager for the
Adviser managing a portion of the assets of the Global Growth Fund. He joined
GBL in 1995 and currently serves as GBL’s Chief Investment Officer of Growth
Products. Mr. Ward is also a portfolio manager of the Gabelli Growth Fund.
The Funds’
SAI provides additional information about the portfolio managers’ compensation,
other accounts managed by them, and their ownership of securities in the Funds.
INDEX DESCRIPTIONS
The Morgan Stanley Capital International (MSCI) All
Country (AC) World Index is a widely recognized, unmanaged stock index
composed of equity securities in developed and emerging market countries. The
index figures do not reflect any deduction for fees, expenses, or taxes. You
cannot invest directly in the MSCI AC World Index.
The MSCI AC World Communication Services Index is
an unmanaged stock index composed of global telecommunications securities stock
market performance. The index figures do not reflect any deduction for fees,
expenses, or taxes. You cannot invest directly in the MSCI AC World
Communication Services Index.
The Lipper Global Large Cap Growth Fund Classification
reflects the average performance of mutual funds classified in this
particular category as tracked by Lipper Inc. You cannot invest directly in the
Lipper Global Large Cap Growth Fund Classification.
The Lipper Global Multi‑Cap Growth Fund Classification
represents the average performance of mutual funds classified in the
particular category as tracked by Lipper Inc. You cannot invest directly in the
Lipper Global Multi‑Cap Growth Fund Classification.
56
The ICE Bank of
America Merrill Lynch Global 300
Convertible Index is an unmanaged indicator of investment performance.
The index figures do not reflect any deduction for fees, expenses, or taxes. You
cannot invest directly in the ICE Bank of America Merrill Lynch Global 300
Convertible Index.
The MSCI World Index is a broad-based securities
index that represents the US and developed international equity markets in term
of capitalization and performance. It is designed to provide a representative
total return for all stock exchanges located inside and outside the US. The
index figures do not reflect any deduction for fees, expenses, or taxes. You
cannot invest directly in the MSCI World Index.
The MSCI EAFE Small Cap Index is an equity index
which captures small cap representation across developed markets countries
around the world, excluding the US and Canada. The index figures do not reflect
any deduction for fees, expenses, or taxes. You cannot invest directly in the
MSCI EAFE Small Cap Index.
The S&P Developed SmallCap Index is a float
adjusted market capitalization weighted index designed to measure the equity
market performance of small capitalization companies located in developed
markets. The index figures do not reflect any deduction for fees, expenses, or
taxes. You cannot invest directly in the S&P Developed SmallCap Index.
CLASSES
OF SHARES
Four classes
of the Funds’ shares are offered in this prospectus — Class AAA shares,
Class A shares, Class C shares, and Class I shares. Effective January 27,
2020 (the “Effective Date”), each Fund’s respective Class AAA, Class A, and
Class C shares have been “closed to purchases from new investors.” “Closed to
purchases from new investors” means: (i) with respect to 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. These changes have no effect on existing shareholders’ ability to redeem
shares of each Fund as described herein. The Funds are not designed for market
timers; see the section entitled “Redemption of Shares.” Each class of shares
has different costs associated with buying, selling, and holding Fund shares.
Your broker or other financial professional can assist you in selecting which
class of shares best meets your needs based on such factors as the size of your
investments and the length of time you intend to hold your shares.
The minimum
initial investment for Class AAA, Class A, and Class C shares will be $1,000 for
all funds except for the Global Mini Mites Fund, which will have a minimum
initial investment of $10,000, when and if initial investments into Class AAA,
A, and C shares are reopened.
The Fund’s
Class AAA shares are offered only to (1) clients of financial intermediaries
(i) that charge such clients an ongoing fee for advisory, investment,
consulting, or similar service, or (ii) where the Distributor has entered into
an agreement permitting the financial intermediary to offer Class AAA shares
through its mutual fund supermarket network or platform, and (2) customers of
the Distributor.
Class I
shares of each Fund are available to investors with a minimum initial investment
amount of $1,000 and 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. For the Global Content & Connectivity Fund, the
GRID Fund, and the Global Mini Mites Fund, the minimum initial investment for
Class I shares is waived for employee
57
benefit
plans with assets of at least $50 million. Such brokers or financial
intermediaries may have different requirements as to the investment minimum. If
you transact in Class I shares through a broker or financial intermediary, you
may be required to pay a commission and/or other forms of compensation to the
broker or financial intermediary.
The
Distributor or its affiliates may, in their discretion, accept investments from
purchasers that do not meet the qualification requirements.
The table
that follows summarizes the differences among the classes of shares:
|
• |
|
A
“front-end sales load,” or sales charge is a one‑time fee that may be
charged at the time of purchase of shares.
|
|
• |
|
A
“contingent deferred sales charge” (“CDSC”) is a one‑time fee that may be
charged at the time of redemption depending on the time of redemption.
|
|
• |
|
A
“Rule 12b‑1 fee” is a recurring annual fee for distributing shares and
servicing shareholder accounts based on a Fund’s average daily net assets
attributable to the particular class of shares.
|
The table
that follows summarizes the differences among the classes of shares.
|
|
|
|
|
|
|
|
|
|
|
Class AAA Shares |
|
Class A Shares |
|
Class C Shares |
|
Class I Shares |
Front-End
Sales Load? |
|
No. |
|
Yes.
The percentage declines as the amount invested increases. The offering
price of a Class A share includes the front-end sales load. |
|
No. |
|
No. |
Contingent
Deferred Sales Charge? |
|
No. |
|
No,
except for shares redeemed up to and including the last day of the
eighteenth month after purchase as part of an investment greater than $1
million if no front-end sales charge was paid at the time of
purchase. |
|
Yes,
for shares redeemed up to and including the last day of the twelfth month
after purchase. |
|
No. |
Rule
12b‑1 Fee |
|
0.25% |
|
0.25% |
|
1.00% |
|
None. |
Convertible
to Another Class? |
|
Yes.
May be converted to Class I shares provided certain conditions are
met. |
|
Yes.
May be converted to Class I shares provided certain conditions are
met. |
|
Yes.
May be converted to Class I shares provided certain conditions are met.
Conversion to Class A shares after approximately eight years. |
|
No. |
Fund
Expense Levels |
|
Lower
annual expenses than Class C shares. Higher annual expenses than
Class I shares. Same as Class A shares. |
|
Lower
annual expenses than Class C shares. Higher annual expenses than
Class I shares. Same as Class AAA shares. |
|
Higher
annual expenses than Class AAA, Class A, and Class I
shares. |
|
Lower
annual expenses than Class AAA, Class A, and Class C
shares. |
58
The
following sections and Appendix A to this prospectus include important
information about sales charge and sales charge reductions and waivers, and
describe information or records you may need to provide to the Funds or your
broker in order to be eligible for sales charge reductions and waivers.
Intermediaries may have different policies and procedures regarding the
availability of sales charge reductions and waivers; please refer to Appendix A
to this prospectus, which describes all such intermediaries. Information about
sales charges and sales charge reductions and waivers to the various classes of
the Funds’ shares is also available free of charge and in a clear and prominent
format on our website at www.gabelli.com. Since the minimum initial investment
amount for each Fund’s Class I shares purchased directly through the Distributor
is the same as that for all other classes of each Fund’s shares, shareholders
still eligible to purchase Class AAA and Class A shares of each Fund on or after
the Effective Date should instead consider purchasing Class I shares since Class
I shares carry no sales load and no ongoing distribution fees. Investors and
shareholders who wish to purchase shares of a Fund through a broker or financial
intermediary should consult their broker or financial intermediary with respect
to the purchase of shares of a Fund.
Sales Charge — Class A
Shares. Unless you are eligible for a sales charge
reduction or a waiver as set forth in Appendix A to this prospectus, the sales
charge is imposed on Class A shares at the time of purchase in accordance
with the following schedule. It is the purchaser’s responsibility to notify a
Fund, the Distributor, or the purchaser’s financial intermediary at the time of
purchase of any relationship or other facts qualifying the purchaser for sales
charge reductions or waivers.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of Investment |
|
Sales Charge as % of
the Offering Price* |
|
Sales Charge as %
of Amount Invested |
|
Reallowance to Broker‑Dealers |
|
|
|
|
Under
$50,000 |
|
|
|
5.75 |
% |
|
|
|
6.10 |
% |
|
|
|
5.00 |
% |
$50,000
but under $100,000 |
|
|
|
4.75 |
% |
|
|
|
4.99 |
% |
|
|
|
4.00 |
% |
$100,000
but under $250,000 |
|
|
|
3.75 |
% |
|
|
|
3.90 |
% |
|
|
|
3.00 |
% |
$250,000
but under $500,000 |
|
|
|
2.75 |
% |
|
|
|
2.83 |
% |
|
|
|
2.25 |
% |
$500,000
but under $1 million |
|
|
|
2.00 |
% |
|
|
|
2.04 |
% |
|
|
|
1.75 |
% |
$1
million but under $2 million |
|
|
|
0.00 |
%** |
|
|
|
0.00 |
% |
|
|
|
1.00 |
% |
$2
million but under $5 million |
|
|
|
0.00 |
%** |
|
|
|
0.00 |
% |
|
|
|
0.50 |
% |
$5
million or more |
|
|
|
0.00 |
%** |
|
|
|
0.00 |
% |
|
|
|
0.25 |
% |
* |
Front-end
sales load. The term “offering price” includes the front-end sales load.
|
** |
Subject
to a CDSC equivalent to the corresponding amount listed under the column
“Reallowance to Broker-Dealers” for redemptions up to and including the
last day of the eighteenth month after purchase.
|
No sales
charge is imposed on reinvestment of dividends and distributions if you select
that option in advance of the distribution.
Breakpoints or Volume
Discounts
The Funds
offer you the benefit of discounts on the sales charges that apply to purchases
of Class A shares in certain circumstances. These discounts, which are also
known as breakpoints, can reduce or, in some instances, eliminate the initial
sales charges that would otherwise apply to your Class A shares investment.
Mutual funds are not required to offer breakpoints and different mutual fund
groups may offer different types of breakpoints.
Breakpoints
or volume discounts allow larger investments in Class A shares to be
charged lower sales charges. If you invest $50,000 or more in Class A
shares of the Funds, then you are eligible for a reduced
59
sales
charge. Initial sales charges are eliminated completely for purchases of
$1,000,000 or more, although a CDSC of up to 1.00% may apply if shares are
redeemed up to and including the last day of the eighteenth month after
purchase.
Sales Charge
Reductions and Waivers — Class A Shares
Reduced
sales charges are available to (1) investors who are eligible to combine
their purchases of Class A shares to receive volume discounts and
(2) investors who sign a Letter of Intent (“Letter”) agreeing to make
purchases over time. Certain types of investors, as set forth below, are
eligible for sales charge waivers.
Class A
shares of a Fund may be available for purchase by clients of certain financial
intermediaries without the application of a front‑end sales load, as described
in Appendix A to the prospectus.
You may
qualify for a reduced sales charge, or a waiver of sales charges, on purchases
of Class A shares. The requirements are described in the following
paragraphs. To receive a reduction that you qualify for, you may have to provide
additional information to your broker or other service agent. For more
information about sales charge discounts and waivers, consult with your broker
or other service provider.
Volume
Discounts/Rights of Accumulation. In order
to determine whether you qualify for a volume discount under the foregoing sales
charge schedule, you may combine your new investment and your existing
investments in Class A shares with those of your immediate family (spouse
and children under age 21), your and their IRAs and other employee benefit plans
and trusts and other fiduciary accounts for your and their benefit. You may also
include Class A shares of any other open‑end investment company managed by
the Adviser or its affiliates that are held in any of the foregoing accounts.
The Funds use the current NAV of these holdings when combining them with your
new and existing investments for purposes of determining whether you qualify for
a volume discount.
Letter of
Intent. If you initially invest at least
$1,000 in Class A shares of a Fund and submit a Letter to your financial
intermediary or the Distributor, you may make purchases of Class A shares
of the Fund during a thirteen-month period at the reduced sales charge rates
applicable to the aggregate amount of the intended purchases stated in the
Letter. The Letter may apply to purchases made up to ninety days before the date
of the Letter. If you fail to invest the total amount stated in the Letter, the
Funds will retroactively collect the sales charge otherwise applicable by
redeeming shares in your account at their then current NAV. For more information
on the Letter, call your broker.
Required Shareholder
Information and Records. In order for you
to take advantage of sales charge reductions, you or your broker must notify the
Funds that you qualify for a reduction. Without notification, the Funds are
unable to ensure that the reduction is applied to your account. You may have to
provide information or records to your broker or the Funds to verify eligibility
for breakpoint privileges or other sales charge waivers. This may include
information or records, including account statements, regarding shares of the
Funds or shares of any other open‑end investment company managed by the Adviser
or its, affiliates held in:
|
• |
|
all of
your accounts at the Funds or a financial intermediary;
|
|
• |
|
any
account of yours at another financial intermediary; and
|
|
• |
|
accounts
of related parties of yours, such as members of the same family, at any
financial intermediary. |
You should
therefore keep copies of these types of records.
60
Investors Eligible
for Sales Charge Waivers. Class A
shares of each Fund may be offered without a sales charge to: (1) employees
of the Distributor and its affiliates, The Bank of New York Mellon Corporation,
DST Asset Manager Solutions, Inc. (“DST” or the “Transfer Agent”), State Street
Bank and Trust Company (“State Street”), BNY Mellon Investment Servicing (US)
Inc. and Soliciting Broker-Dealers, employee benefit plans for those employees
and their spouses and minor children of such employees when orders on their
behalf are placed by such employees (the minimum initial investment for such
purchases is $500); (2) the Adviser, its affiliates and their officers,
directors, trustees, general partners, and employees of other investment
companies managed by the Adviser, employee benefit plans for such persons and
their immediate family when orders on their behalf are placed by such persons
(with no required minimum initial investment) — the term “immediate family” for
this purpose refers to a person’s spouse, children and grandchildren (adopted or
natural), parents, grandparents, siblings, a spouse’s siblings, a sibling’s
spouse and a sibling’s children; (3) any other investment company in
connection with the combination of such company with the Fund by merger,
acquisition of assets, or otherwise; (4) shareholders who have redeemed shares
in the Fund and who wish to reinvest in the Fund, provided the reinvestment is
made within ninety days of the redemption; (5) employee benefit plans;
(6) any unit investment trusts registered under the Investment Company Act
of 1940, as amended, which have shares of the Fund as a principal investment;
(7) investment advisory clients of GAMCO Asset Management, Inc. and their
immediate families; (8) financial institutions purchasing Class A
shares of the Fund for clients participating in a fee based asset allocation
program or wrap fee program; and (9) investment advisers or financial
planners who place trades for their own accounts or the accounts of their
clients and who charge a management, consulting, or other fee for their
services; and clients of such investment advisers or financial planners who
place trades for their own accounts if the accounts are linked to the master
account of such investment adviser or financial planner on the books and records
of a broker or financial intermediary.
Additional
categories of sales charge reductions and waivers are also set out in Appendix A
to this prospectus. Investors who qualify under any of the categories described
above or those set out in the Appendix A to this prospectus should contact their
brokerage firm.
Some of
these investors may also qualify to invest in Class I shares.
Contingent Deferred
Sales Charges
You will pay
a CDSC when you redeem:
|
• |
|
Class A
shares up to and including the last day of the eighteenth month from when
they were purchased as part of an investment greater than $1 million if no
front end sales charge was paid at the time of purchase; or
|
|
• |
|
Class
C shares up to and including the last day of the twelfth month from when
they were purchased. |
The CDSCs
payable upon redemption of Class A shares in the circumstances described above
are 1.00% for investments of $1 million but less than $2 million, 0.50% for
investments of $2 million but less than $5 million, and 0.25% for investments of
$5 million or more. The CDSC payable upon redemption of Class C shares in the
circumstances described above is 1.00%. In each case, the CDSC is based on the
NAV at the time of your investment or the NAV at the time of redemption,
whichever is lower.
61
The
Distributor pays sales commissions of up to 1.00% of the purchase price of Class
C shares of a Fund at the time of sale to brokers and financial intermediaries
that initiate and are responsible for purchases of such Class C shares of a
Fund.
You will not
pay a CDSC to the extent that the value of the redeemed shares represents
reinvestment of distributions or capital appreciation of shares redeemed. When
you redeem shares, we will assume that you are first redeeming shares
representing reinvestment of distributions, then any appreciation on shares
redeemed, and then any remaining shares held by you for the longest period of
time. We will calculate the holding period of shares acquired through an
exchange of shares of another fund from the date you acquired the original
shares of the other fund. The time you hold shares in the Gabelli money market
fund, however, will not count for purposes of calculating the applicable CDSC.
We will
waive the CDSC payable upon redemptions of shares for:
|
• |
|
redemptions
and distributions from retirement plans made after the death or disability
of a shareholder |
|
• |
|
minimum
required distributions made from an IRA or other retirement plan account
after you reach age 701/2
|
|
• |
|
involuntary
redemptions made by a Fund |
|
• |
|
a
distribution from a tax deferred retirement plan after your retirement
|
|
• |
|
returns
of excess contributions to retirement plans following the shareholder’s
death or disability |
The CDSC may
be waived in certain circumstances as set out in Appendix A if you purchase your
shares through intermediaries identified in Appendix A to this prospectus.
Rule 12b‑1 Plans. Each
Fund has adopted distribution plans under Rule 12b‑1 (the “Plans”) for
Class AAA, Class A, and Class C shares of the Funds (each a “Plan”).
Under these Plans, a Fund may use its assets to finance activities relating to
the sale of its Class AAA, Class A, and Class C shares and the provision of
certain shareholder services. To the extent any activity is one that a Fund may
finance without a distribution plan, such Fund may also make payments to
compensate for such activities outside a Plan and not be subject to its
limitations.
The Class
AAA and Class A Plans authorize payments by each Fund at an annual rate of 0.25%
of such Fund’s average daily net assets attributable to Class AAA and Class A
shares to finance distribution of its Class AAA and Class A shares or pay
shareholder service fees. The Class C Plan authorizes payments by each Fund on
an annual basis of 0.75% of its average daily net assets attributable to Class C
shares to finance distribution of its Class C shares and 0.25% for shareholder
service fees.
Because the
Rule 12b‑1 fees are higher for Class C shares than for Class AAA or Class A
shares, Class C shares will have higher annual expenses. Because Rule 12b‑1
fees are paid out of the Funds’ assets on an on‑going basis, over time these
fees will increase the cost of your investment and may cost you more than paying
other types of sales charges. Due to the payment of Rule 12b-1 fees, long term
shareholders may indirectly pay more than the equivalent of the maximum
permitted front-end sales charge.
Redemption
Fee. Generally, if you sell or exchange your
shares within seven days or less after the purchase date, you will be charged a
redemption fee of 2.00% of the total redemption amount, which is payable to the
applicable Fund. See “Redemption of Shares” herein.
62
PURCHASE OF SHARES
Effective
January 27, 2020 (the “Effective Date”), each Fund’s respective Class AAA, Class
A, and Class C shares have been “closed to purchases from new investors.”
“Closed to purchases from new investors” means: (i) with respect to 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. These changes have no effect on existing shareholders’ ability to redeem
shares of each Fund as described herein.
You can
purchase the Funds’ shares on any Business Day.
|
• |
|
By Mail or In
Person. You may open an account by mailing a
completed subscription order form with a check or money order payable to
“The Gabelli Global Content & Connectivity Fund”, “The Gabelli Global
Growth Fund”, “The Gabelli International Small Cap Fund”, “The Gabelli
Global Rising Income and Dividend Fund”, or “Gabelli Global Mini Mites
Fund” to: |
|
|
|
By Mail |
|
By Personal or Overnight Delivery
|
The Gabelli Funds |
|
The Gabelli Funds |
P.O. Box 219204 |
|
c/o DST |
Kansas City, MO
64121-9204 |
|
430 W 7th
Street STE 219204 |
|
|
Kansas City, MO
64105-1409 |
You can
obtain a subscription order form by calling 800‑GABELLI (800‑422‑3554). Checks
made payable to a third party and endorsed by the shareholder are not
acceptable. For additional investments, send a check to the above address with a
note stating your exact name and account number, the name of the fund(s), and
class of shares you wish to purchase.
|
• |
|
By Internet. You
may open an account over the Internet at www.gabelli.com.
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|
• |
|
By Bank Wire or by ACH
System. To open an account using the bank
wire transfer system or ACH system, first telephone the Fund(s) at
800‑GABELLI (800‑422‑3554) to obtain a new account number. Then instruct
your bank to wire the funds to: |
State Street Bank and Trust Company
225 Franklin Street, Boston, MA 02110
ABA #011‑0000‑28 REF DDA #99046187
Re: The (“name of”) Fund
Account #
Account of [Registered Owners]
|
• |
|
By Telephone. You
may make purchases for an existing account with banking instructions on
file by telephone at 800-GABELLI (800-422-3554).
|
If you are
making an initial purchase, you should also complete and mail a subscription
order form to the address shown under “By Mail.” Note that banks may charge fees
for wiring funds, although the Funds’ transfer agent DST, will not charge you
for receiving wire transfers.
You may
purchase shares directly through registered broker-dealers or other financial
intermediaries that have entered into appropriate selling agreements with the
Distributor.
63
Your
broker-dealer or financial intermediary can obtain a subscription order form by
calling 800-GABELLI (800-422-3554). The broker-dealer or other financial
intermediary will transmit a purchase order and payment to DST on your behalf.
Broker-dealers or other financial intermediaries may send you confirmations of
your transactions and periodic account statements showing your investments in
the Funds.
Share Price. The Funds
sell shares based on the per share NAV next determined after the time as of
which the Funds receive your completed subscription order form, but does not
issue the shares to you until they receive full payment, subject to a front‑end
sales charge in the case of Class A shares. See “Pricing of Fund Shares”
herein for a description of the calculation of the NAV, as described under
“Classes of Shares — Sales Charge — Class A shares.”
Minimum Investments. For
all Funds, the minimum initial investment for Class AAA, Class A, and Class C
shares will be $1,000 ($10,000 for the Global Mini Mites Fund) ($250 for IRAs or
Coverdell Savings Plans) when and if initial investments into Class AAA, A, and
C shares are reopened. The minimum initial investment of Class I shares is
$1,000 for investors purchasing Class I shares directly through the Distributor.
Investors who wish to purchase Class I shares through brokers or financial
intermediaries that have entered into selling agreements with the Distributor
specifically with respect to Class I shares should consult their broker or
financial intermediary with respect to any minimum investment amount required
for their account. For the Global Content & Connectivity Fund, the GRID
Fund, and the Global Mini Mites Fund, the minimum initial investment for Class I
shares is waived for employee benefit plans with assets of at least $50 million.
The Distributor or its affiliates may, in their discretion, waive the minimum
investment requirement under certain circumstances. There is no minimum for
subsequent investments. Broker-dealers and financial intermediaries may have
different minimum investment requirements.
General. DST will not
issue share certificates unless you request them. The Funds reserve the right to
(i) reject any purchase order if, in the opinion of the Funds’ management,
it is in the Funds’ best interest to do so, (ii) suspend the offering of
shares for any period of time, and (iii) waive the Funds’ minimum purchase
requirements. Except for differences attributable to these arrangements, the
shares of all classes are substantially the same.
Customer Identification
Program. Federal law requires the Corporation, on
behalf of the Funds, to obtain, verify, and record identifying information,
which may include the name, residential, or business address, date of birth (for
an individual), social security or taxpayer identification number, or other
identifying information, for each investor who opens or reopens an account with
the Funds. Applications without the required information may be rejected or
placed on hold until the Corporation verifies the account holder’s identity.
Third Party
Arrangements. In addition to, or in lieu of,
amounts paid to broker-dealers or other financial intermediaries as reallowances
of a portion of sales commissions, the Adviser and its affiliates may utilize a
portion of their assets, which may include revenues received under the Plan to
pay all or a portion of the charges of various programs that make shares of the
Funds available to their customers. These payments, sometimes referred to as
“revenue sharing,” do not change the price paid by investors to purchase the
Funds’ shares or the amount the Funds receive as proceeds from such sales.
Revenue sharing payments may be made to broker-dealers, and other financial
intermediaries that provide services to the Funds or to shareholders in the
Funds, including (without limitation) the following programs:
64
shareholder
servicing to Fund shareholders, transaction processing, sub‑accounting services,
marketing support, access to sales meetings, sales representatives, and
management representatives of the broker-dealers or other financial
intermediaries. Revenue sharing payments may also be made to broker-dealers and
other financial intermediaries for inclusion of the Funds on a sales list,
including a preferred or select sales list, and in other sales programs. These
payments may take a variety of forms, including (without limitation)
compensation for sales, “trail” fees for shareholder servicing and maintenance
of shareholder accounts, and finder’s fees that vary depending on the Fund or
share class and the dollar amount of shares sold. Revenue sharing payments may
be structured: (i) as a percentage of sales; (ii) as a percentage of
net assets; and/or (iii) as a fixed dollar amount.
The Adviser
may also provide non‑cash compensation to broker-dealers or other financial
intermediaries in accordance with applicable rules of the Financial Industry
Regulatory Authority Inc. (“FINRA”), such as the reimbursement of travel,
lodging, and meal expenses incurred in connection with attendance at educational
and due diligence meetings or seminars by qualified registered representatives
of those firms and, in certain cases, their families; meeting fees; certain
entertainment; advertising or other promotional expenses; or other permitted
expenses as determined in accordance with applicable FINRA rules. In certain
cases these other payments could be significant.
Subject to
tax limitations and approval by the Board, the Funds may also make payments to
third parties out of their own assets (other than Rule 12b‑1 payments) for a
portion of the charges for those programs that generally represent savings of
expenses experienced by the Fund resulting from shareholders investing in the
Funds through such programs rather than investing directly in the Funds.
The Adviser
negotiates the level of payments described above to any particular broker-dealer
or other financial intermediary. Currently, such payments (expressed as a
percentage of net assets) range from 0.10% to 0.40% per year of the average
daily net assets of the applicable Fund attributable to the particular firm
depending on the nature and level of services and other factors. In the case of
Class I shares, the Funds may not make any payments for distribution related
services.
In addition,
in certain cases, broker-dealers or other financial intermediaries, may have
agreements pursuant to which shares of the Funds owned by their clients are held
of record on the books of the Funds in omnibus accounts maintained by each
intermediary, and the intermediaries provide those Fund shareholders with
sub-administration and sub-transfer agency services. Pursuant to the Funds’
transfer agency agreement, the Funds pay the transfer agent a fee for each
shareholder account. As a result, the use of one omnibus account for multiple
beneficial shareholders can create a cost savings to the Funds. The Board may,
from time to time, authorize the Funds to pay a portion of the fees charged by
these intermediaries if (i) a cost savings to the Funds can be demonstrated and
(ii) the omnibus account of the intermediary has net assets in the Funds in
excess of $10 million. In these cases, the Board may authorize the Funds to pay
a portion of the fees to the intermediary in an amount no greater than the lower
of the transfer agency cost savings relating to the particular omnibus account
or 0.10% of the average daily net assets of that omnibus account. These payments
compensate these intermediaries for the provision of sub-administration and
sub-transfer agency services associated with their clients whose shares are held
of record in this manner.
65
Additional Purchase
Information
Retirement Plans/Education Savings
Plans. The Funds make available IRAs and Coverdell
Education Savings Plans for investment in Fund shares. Applications may be
obtained from the Distributor by calling 800‑GABELLI (800‑422‑3554).
Self-employed investors may purchase shares of the Funds through tax‑deductible
contributions to existing retirement plans for self-employed persons, known as
“Keogh” or “H.R.‑10” plans. The Funds do not currently act as a sponsor to such
plans. Fund shares may also be a suitable investment for other types of
qualified pension or profit sharing plans which are employer sponsored,
including deferred compensation or salary reduction plans known as “401(k)
Plans.” For Class AAA, A, and C shares, minimum initial investment in all
such retirement and education savings plans is $250. There is no minimum
subsequent investment for retirement and education savings plans.
Automatic Investment
Plan. The Funds offer an automatic monthly
investment plan. For Class AAA, A, and C shares, there is no minimum initial
investment for accounts establishing an automatic investment plan. Call your
financial intermediary or the Distributor at 800‑GABELLI (800‑422‑3554) for more
details about the plan.
Telephone or Internet Investment
Plan. You may purchase additional shares of the
Funds by telephone and/or over the Internet if your bank is a member of the ACH
system. You must have a completed and approved Account Options Form on file with
the Transfer Agent. There is a minimum of $100 for each telephone or Internet
investment. However, you may split the $100 minimum between two funds. To
initiate an ACH purchase, please call 800‑GABELLI (800‑422‑3554) or 800‑872‑5365
or visit our website at www.gabelli.com.
Voluntary
Conversion. Shareholders may be able to convert
shares to Class I shares of the Fund, which have a lower expense ratio, provided
certain conditions are met. For Class A and Class C shares, this conversion
feature is intended for shares held through a financial intermediary offering a
fee-based or wrap fee program that has an agreement with the Adviser or the
Distributor specific for this purpose. Shareholders who currently hold Class AAA
shares and are eligible to purchase Class I shares may convert existing Class
AAA shares of the same Fund through their financial intermediary if their
financial intermediary has a specific agreement with the Distributor. In such
instances, Class AAA, Class A, or Class C shares may be converted
under certain circumstances. Generally, Class C shares are not eligible for
conversion until the applicable CDSC period has expired. Under current
interpretations of applicable federal income tax law by the Internal Revenue
Service, voluntary conversions to a different class of shares generally should
not be treated as a taxable event. Please contact your financial intermediary
for additional information. Not all share classes are available through all
financial intermediaries.
If shares of
a Fund are converted to a different share class of the same Fund, the
transaction will be based on the respective NAV of each class as of the trade
date of the conversion. Consequently, a shareholder may receive fewer shares or
more shares than originally owned, depending on that day’s NAVs. Please contact
your tax adviser regarding the tax consequences of any conversion.
Conversion of Class C shares to Class A
shares. Investors whose accounts are held at the
Funds’ transfer agent are eligible to hold Class C shares of the Funds only
until the month of the 8-year anniversary of the purchase date. In the month of
the 8-year anniversary of the purchase date, the Funds will convert such an
investor’s Class C shares into Class A shares. This conversion will not be
subject to any sales charge, fee, or other charge, and will be based on the
relative net asset values of the two
66
classes in
question. The Internal Revenue Service currently takes the position that such
conversions are not taxable. Should its position change, the conversion feature
may be suspended. If this were to happen, you would have the option of
instructing the Funds to continue to convert your Class C shares of the Funds to
Class A shares of the Funds at the anniversary date described above. This
conversion would also be based on the relative net asset values of the two
classes in question, without the imposition of a sales charge or fee, but you
might face certain tax consequences as a result. Shareholders should consult
with their tax advisor regarding the state and local tax consequences of such
conversions.
Investors
holding Class C shares of the Funds through a financial intermediary in “street
name” may be subject to different eligibility requirements regarding the holding
of Class C shares of the Funds. In this regard, a financial intermediary may
sponsor and/or control accounts, programs or platforms that impose a different
conversion schedule or different eligibility requirements for the conversion of
Class C shares into Class A shares. In these cases, Class C shares of the Funds
may be converted to Class A shares under the policies of the financial
intermediary and the conversion may be structured as an exchange of Class C
shares for Class A shares of the Funds. Financial intermediaries will be
responsible for making such exchanges in those circumstances. Please consult
with your financial intermediary if you have any questions regarding your
shares’ conversion from Class C shares to Class A shares. To the extent a
financial intermediary’s policies provide for no such conversion, or for a
conversion schedule that extends beyond the month of the 8-year anniversary of
the purchase date, investors holding Class C shares through such financial
intermediary may be disadvantaged relative to investors holding Class C shares
either at the Funds’ transfer agent or through another financial intermediary.
Because Class C shares pay higher ongoing asset-based distribution and
shareholder servicing fees than Class A shares, financial intermediaries may
have a conflict of interest in establishing their relevant conversion schedules
and eligibility requirements. Additional information can be found in Appendix A,
“Sales Charge Reductions and Waivers Available Through Certain Intermediaries,”
attached to the Funds’ Prospectus.
Impact of Class
Closures on Conversions
Shareholders
owning Class AAA or Class A shares of a Fund should consider converting their
holdings to Class I shares of the Fund given the change in eligibility
requirements for investing in Class I shares. Shareholders owning Class C shares
of a Fund should also consider converting their holdings to Class I shares if
they otherwise meet the eligibility requirements described herein to convert
their Class C shares of a Fund to a different share class. Conversions of Class
C shares of a Fund to Class A shares of a Fund will no longer be permitted;
rather, Class C shares of a Fund that would otherwise have be converted to Class
A shares of a Fund pursuant to the policies previously described herein will
instead be converted to Class I shares. Shareholders who hold shares of a Fund
through a broker or financial intermediary should contact their broker or
financial intermediary regarding any conversion of shares.
REDEMPTION OF SHARES
You can
redeem shares of the Funds on any Business Day. The Funds may temporarily stop
redeeming their shares beyond seven (7) days when the NYSE is closed, when
trading on the NYSE is restricted (as determined by the SEC), or when an
emergency exists (as determined by the SEC), and the Funds cannot sell their
portfolio securities or accurately determine the value of their assets, or if
the SEC orders the Funds to suspend redemptions.
67
The Funds
redeem their shares based on the NAV per share next determined after the time as
of which the Funds or, if applicable, their authorized designee, receive your
redemption request in proper form, subject in some cases to a redemption fee or
a CDSC, as described under “Classes of Shares —Contingent Deferred Sales
Charges” or a redemption fee as described in this section. See “Pricing of Fund
Shares” herein for a description of the calculation of NAV. A redemption is a
taxable event to you on which you would realize gain or loss (subject to certain
limitations on the deductibility of losses). In instances where a redemption fee
is triggered, a CDSC may also apply, as described in greater detail in other
parts of this prospectus.
You may
redeem shares through a broker-dealer or other financial intermediary that has
entered into a selling agreement with the Distributor. The broker-dealer or
financial intermediary will transmit a redemption order to DST on your behalf.
The redemption request will be effected at the NAV next determined (less any
applicable CDSC) after a Fund or, if applicable, their authorized designee,
receives the request in proper form. If you hold share certificates, you must
present the certificates endorsed for transfer.
The Funds
are intended for long term investors and not for those who wish to trade
frequently in Fund shares. The Funds believe that excessive short term trading
of Fund shares creates risks for the Funds and their long term shareholders,
including interference with efficient portfolio management, increased
administrative and brokerage costs, and potential dilution in the value of Fund
shares.
In addition,
because each of the Funds may invest in foreign securities traded primarily on
markets that close prior to the time such Fund determines its NAV, frequent
trading by some shareholders may, in certain circumstances, dilute the value of
Fund shares held by other shareholders. This may occur when an event that
affects the value of foreign securities takes place after the close of the
primary foreign market, but before the time that a Fund determines its NAV.
Certain investors may seek to take advantage of the fact that there will be a
delay in the adjustment of the market price for a security caused by this event
until the foreign market reopens (referred to as price arbitrage). If this
occurs, frequent traders who attempt this type of price arbitrage may dilute the
value of a particular Fund’s shares to the extent they receive shares or
proceeds based upon NAVs that have been calculated using the closing market
prices for foreign securities, if those prices have not been adjusted to reflect
a change in the fair value of the foreign securities. In an effort to prevent
price arbitrage, each Fund has procedures designed to adjust closing market
prices of foreign securities before it calculates its NAV when it believes such
an event has occurred that will have more than a minimal effect on the NAV.
Prices are adjusted to reflect what each Fund believes are the fair values of
these foreign securities at the time such Fund determines its NAV (called fair
value pricing). Fair value pricing, however, involves judgments that are
inherently subjective and inexact since it is not always possible to be sure
when an event will affect a market price and to what extent. As a result, there
can be no assurance that fair value pricing will always eliminate the risk of
price arbitrage.
In order to
discourage frequent short term trading in Fund shares, each Fund has adopted
policies and procedures that impose a 2.00% redemption fee (short term trading
fee) on Class AAA, Class A, Class C and Class I shares that are
redeemed or exchanged within seven days of a purchase. This fee is calculated
based on the shares’ aggregate NAV on the date of redemption and deducted from
the redemption proceeds. The redemption fee is not a sales charge; it is
retained by the Funds and does not benefit the Funds’ Adviser, the Distributor,
or any third party. For purposes of computing the redemption fee, shares will be
treated as being redeemed in reverse order of purchase (the latest shares
acquired will be treated as being redeemed first). Redemptions to which the fee
applies include redemption of shares
68
resulting
from an exchange made pursuant to each Fund’s exchange privilege. The redemption
fee will not apply to redemptions of shares where (i) the shares were
purchased through automatic reinvestment of dividends or other distributions,
(ii) the redemption is initiated by a Fund, (iii) the shares were
purchased through programs that collect the redemption fees at the program level
and remit them to the particular Fund, or (iv) the shares were purchased
through programs that the Adviser determines to have appropriate anti-short term
trading policies in place or as to which the Adviser has received assurances
that look-through redemption fee procedures or effective anti-short term trading
policies and procedures are in place.
While each
Fund has entered into information sharing agreements with financial
intermediaries which contractually require such financial intermediaries to
provide the Funds with information relating to their customers investing in each
Fund through non‑disclosed or omnibus accounts, the Funds cannot guarantee the
accuracy of the information provided to them from financial intermediaries and
may not always be able to track short term trading effected through these
financial intermediaries. In addition, because each Fund is required to rely on
information provided by the financial intermediary as to the applicable
redemption fee, the Funds cannot guarantee that the financial intermediary is
always imposing such fee on the underlying shareholder in accordance with each
Fund’s policies. Subject to the exclusions discussed above, each Fund seeks to
apply these policies uniformly.
Certain
financial intermediaries may have procedures which differ from those of the
Funds to collect the redemption fees or that prevent or restrict frequent
trading. Investors should refer to their intermediary’s policies on frequent
trading restrictions.
Each Fund
continues to reserve all rights, including the right to refuse any purchase
request (including requests to purchase by exchange) from any person or group
who, in the Fund’s view, is likely to engage in excessive trading or if such
purchase is not in the best interest of the Fund and to limit, delay or impose
other conditions on exchanges or purchases. The Funds have adopted a policy of
seeking to minimize short term trading in their shares and monitor purchase and
redemption activities to assist in minimizing short term trading.
If you hold
shares directly through the Distributor, you may redeem shares:
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• |
|
By Letter. You may
mail a letter requesting the redemption of shares to: The Gabelli Funds, P.O. Box 219204, Kansas City,
MO 64121-9204. Your letter should state the name of the fund(s) and
the share class, the dollar amount or number of shares you wish to redeem,
and your account number. You must sign the letter in exactly the same way
the account is registered and, if there is more than one owner of shares,
all owners must sign. A medallion signature guarantee is required for each
signature on your redemption letter. You can obtain a medallion signature
guarantee from financial institutions such as commercial banks,
broker-dealers, savings banks, and credit unions. A notary public cannot
provide a medallion signature guarantee. |
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• |
|
By Telephone or the
Internet. Unless you have requested that
telephone or Internet redemptions from your account not be permitted, you
may redeem your shares in an account excluding an IRA directly registered
with DST by calling either 800‑GABELLI (800‑422‑3554) or 800‑872‑5365
(617‑328‑5000 from outside the United States) or by visiting our website
at www.gabelli.com. You may not redeem Fund shares held through an IRA
through the Internet. IRA holders should consult a tax adviser concerning
the current tax rules applicable to IRAs. If DST properly acts on
telephone or Internet instructions after following reasonable procedures
to |
69
|
protect
against unauthorized transactions, neither DST nor the Funds will be
responsible for any losses due to unauthorized telephone or Internet
transactions and instead you would be responsible. You may request that
proceeds from telephone or Internet redemptions be mailed to you by check
(if your address has not changed in the prior thirty days), forwarded to
you by bank wire, or invested in another mutual fund advised by the
Adviser (see “Exchange of Shares”). Among the procedures that DST may use
are passwords or verification of personal information. The Funds may
impose limitations from time to time on telephone or Internet redemptions.
|
|
1. |
Telephone or Internet Redemption By
Check. The Funds will make checks payable to the name in which the
account is registered and will normally mail the check to the address of
record within seven days. |
|
2. |
Telephone or Internet Redemption By
Bank Wire or ACH System. The Funds accept telephone or Internet
requests for wire or ACH System redemptions in amounts of at least $1,000.
The Funds will send a wire or ACH System credit to either a bank
designated on your subscription order form or on a subsequent letter with
a medallion signature guarantee. The proceeds are normally wired on the
next Business Day. |
If you
redeem shares through your broker or other financial intermediary, the broker or
financial intermediary will transmit a redemption order to DST on your behalf.
The redemption request will be effected at the NAV per share next determined
(less any applicable CDSC and redemption fee, if applicable) after a Fund
receives the request in proper form. If you hold share certificates, you must
present the certificates endorsed for transfer.
Automatic Cash Withdrawal
Plan. You may automatically redeem shares on a
monthly, quarterly, or annual basis if you have at least $10,000 in your account
and if your account is directly registered with DST. Please call 800‑GABELLI
(800‑422‑3554) for more information about this plan.
Involuntary
Redemption. Each Fund may redeem all shares in
your account (other than an IRA or Coverdell education savings account) if the
value falls below $1,000 as a result of redemptions (but not as a result of a
decline in NAV). You will be notified in writing before a Fund initiates such
action and you will be allowed thirty days to increase the value of your account
to at least $1,000.
Reinstatement
Privilege. A shareholder in a Fund who has
redeemed Class A shares may reinvest, without a sales charge, up to the
full amount of such redemption at the NAV determined at the time of the
reinvestment within ninety days of the original redemption. A redemption is a
taxable transaction and a gain or loss may be recognized for federal income tax
purposes even if the reinstatement privilege is exercised. However, any loss
realized upon the redemption will not be recognized as to the number of shares
acquired by reinstatement within thirty days of the redemption, in which case an
adjustment will be made to the tax basis of the shares so acquired.
Redemption
Proceeds. Each Fund expects to meet redemption
requests typically by selling portfolio assets, with holdings of cash and cash
equivalents, or by drawing on its line of credit. In certain circumstances, the
Fund may meet a redemption request in-kind, as described under “Redemption In
Kind.” These methods of meeting redemption requests are expected to be used in
both normal and stressed market conditions. A redemption request received by a
Fund will be effected based on the NAV per share next determined after the time
as of which the Fund or, if applicable, its authorized designee, receives the
request. If you request redemption proceeds by wire, a Fund will normally wire
the funds
70
according to
the wire instructions you provide, within three business days after receipt of
your redemption request. If you request redemption proceeds by check, a Fund
will normally mail the check to you within seven days after receipt of your
redemption request. If you purchased your Fund shares by check or through the
Automatic Investment Plan you may not receive proceeds from your redemption
until the check clears or ten days following the purchase, whichever is earlier.
While a Fund will delay the processing of the redemption payment until the check
clears, your shares will be valued at the next determined NAV after receipt of
your redemption request. Typically, a Fund receives redemption requests through
the National Securities Clearing Corporation (“NSCC”) system, which is utilized
by financial intermediaries to submit requests on behalf of their clients or
customers who hold shares of the Fund in “street name.” In such circumstances, a
Fund expects redemption proceeds to be delivered via the NSCC system within
three business days after receipt of a redemption request. The NSCC system is
not used for shareholders whose accounts are held at a Fund’s transfer agent (as
opposed to shareholders whose accounts are held in “street name” at a broker or
other financial intermediary).
Redemption In Kind. A
Fund may pay your redemption proceeds wholly or partially in portfolio
securities. Specifically, the a may pay your redemption proceeds in portfolio
securities if you redeem more than $250,000 over the preceding three months, and
the Adviser believes that economic conditions exist which would make payments in
cash detrimental to the best interests of a Fund. In such an instance, a Fund
would communicate to you its intention to meet your redemption request in
portfolio securities. Securities received in kind will remain subject to the
risk of market fluctuations until sold; however, a Fund would distribute to you
from its portfolio of investments only securities that the Adviser determines
are readily marketable. The specific security or securities to be distributed
will be selected at the discretion of the Board or its designee(s), subject to
any applicable laws or regulations, and could be individual securities, a
representative basket of securities or a pro-rata slice of a Fund’s portfolio.
Any additional remainder in value owed to you between such securities and Fund
shares that you submitted for redemption would be paid to you in cash. Payments
would be made in portfolio securities only in instances where the Fund’s Board
(or its delegate) believes that it would be in the Fund’s best interest not to
pay the redemption proceeds in cash. A redemption in kind would be a taxable
event to you on which you would realize a capital gain or capital loss on your
shares redeemed. Additionally, you may incur brokerage costs in converting any
of the securities received to cash. The foregoing considerations apply in both
normal and stressed market considerations. Please see “Redemption of Shares” in
the SAI for additional information.
EXCHANGE OF SHARES
You can
exchange shares of the Fund(s) for shares of the same class of certain other
funds managed by the Adviser or its affiliates based on their relative NAVs at
the time of exchange. To obtain a list of the funds whose shares you may acquire
through an exchange, you may call 800-GABELLI (800-422-3554) or contact your
broker. Class C shares will continue to age from the date of the original
purchase of such shares and will assume the CDSC rate such shares had at the
time of exchange. You may also exchange your shares for shares of the same class
of a money market fund managed by the Adviser, or its affiliates, without
imposition of any CDSC at the time of exchange. Upon subsequent redemption from
such money market fund or the Fund(s) (after re‑exchange into the Fund), such
shares will be subject to the CDSC calculated by excluding the time such shares
were held in a Gabelli money market fund. Each Fund may impose limitations on,
or terminate, the exchange privilege with respect to any investor at any
71
time. You
will be given notice at least sixty days prior to any material change in the
exchange privilege. An exchange of shares is a taxable event to you on which you
would realize a capital gain or capital loss (subject to possible limitations of
deductibility).
In effecting
an exchange:
|
• |
|
you
must meet the minimum investment requirements for the fund whose shares
you wish to purchase through exchange; |
|
• |
|
if you
are exchanging into a fund with a higher sales charge, you must pay the
difference at the time of exchange; |
|
• |
|
if you
are exchanging from a fund with a redemption fee applicable to the
redemption involved in your exchange, you must pay the redemption fee at
the time of the exchange; |
|
• |
|
you
will realize a taxable gain or loss because the exchange is treated as a
sale for federal income tax purposes; |
|
• |
|
you
should read the prospectus of the fund whose shares you are purchasing
through exchange. Call 800‑GABELLI (800‑422‑3554), or visit our website at
www.gabelli.com to obtain the prospectus; and
|
|
• |
|
you
should be aware that a financial intermediary may charge a fee for
handling an exchange for you. |
You may
exchange shares through the Distributor, directly through the Transfer Agent, or
through a financial intermediary that has entered into the appropriate selling
agreement with the Distributor.
|
• |
|
Exchange by
Telephone. You may give exchange
instructions by telephone by calling 800‑GABELLI (800‑422‑3554). You may
not exchange shares by telephone if you hold share certificates.
|
|
• |
|
Exchange by
Mail. You may send a written request for
exchanges to: The Gabelli Funds, P.O. Box 219204, Kansas City, MO
64121-9204. Your letter should state your name, your account number, the
dollar amount or number of shares you wish to exchange, the name and class
of the fund(s) whose shares you wish to exchange, and the name of the
fund(s) whose shares you wish to acquire.
|
|
• |
|
Exchange through the
Internet. You may also give exchange
instructions via the Internet at www.gabelli.com. The Funds may impose
limitations from time to time on Internet exchanges.
|
Your
financial intermediary may charge you a processing fee for assisting you in
purchasing or redeeming shares of the Funds. This charge is set by your
financial intermediary and does not benefit the Funds, the Distributor, or the
Adviser in any way. It would be in addition to the sales charges and other
costs, if any, described in this prospectus and must be disclosed to you by your
broker-dealer or other financial intermediary.
Following
the Effective Date, the exchange privilege described in this section has
remained in place and subject to the policies described herein. The principal
effects of this are:
|
• |
|
Shareholders
owning Class I shares of a Fund are only able to exchange their shares for
Class I shares of another fund managed by the Adviser or its affiliates if
they meet the minimum investment requirements for Class I shares of that
other fund; |
72
|
• |
|
Exchanges
for Class AAA or Class A shares of a Fund are only permitted for existing
holders of Class AAA or Class A shares, as applicable, of the Fund into
which such shareholder seeks to exchange; and
|
|
• |
|
Class
C shares of the Funds are no longer available as an exchange option for
holders of Class C shares of other funds managed by the Adviser or
its affiliates. |
PRICING OF FUND
SHARES
Each Fund’s
NAV is calculated separately for each class of shares of each Fund on each
Business Day. The NYSE is open Monday through Friday, but currently is scheduled
to be closed on New Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day,
Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and
Christmas Day and on the preceding Friday or subsequent Monday when a holiday
falls on a Saturday or Sunday, respectively.
Each Fund’s
NAV is determined as of the close of regular trading on the NYSE, normally 4:00
p.m., Eastern Time. The NAV of each class of each Fund is computed by dividing
the value of the applicable Fund’s net assets, i.e., the value of its securities
and other assets less its liabilities, including expenses payable or accrued but
excluding capital stock and surplus attributable to the applicable class of
shares, by the total number of shares of such class outstanding at the time the
determination is made. The price of Fund shares for the purpose of purchase and
redemption orders will be based upon the calculation of the NAV of each class
next made as of a time after the time as of which the purchase or redemption
order is received in proper form. Because the Funds may invest in foreign
securities that are primarily listed on foreign exchanges that trade on weekends
or other days when the Funds do not price their shares, the NAV of the Funds’
shares may change on days when shareholders will not be able to purchase or
redeem the Funds’ shares.
Equity
securities listed or traded on a nationally recognized securities exchange or
traded in the U.S. over-the-counter market where trades are reported
contemporaneously and for which market quotations are readily available are
valued at the last quoted sale or a market’s official closing price at the close
of the exchange’s or other market’s regular trading hours, as of or prior to the
time and day as of which such value is being determined. 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 the
Adviser. If there has been no sale on the day the valuation is made, the
securities are valued at the mean of the closing bid and ask prices on the
principal market for such security on such day. If no ask prices are quoted on
such day, then the security is valued at the closing bid price on the principal
market for such security on such day. If no bid or ask prices are quoted on such
day, a Fund’s accounting agent will notify the Adviser and the security will be
valued based on written or standing instructions from the Adviser and/or the
Pricing Committee.
Equity
securities that are primarily traded on foreign markets, except for those that
trade primarily in Latin America or South America, are generally valued at the
preceding closing values of such securities on their respective exchanges.
Equity securities which are primarily traded in Latin American or South American
markets are valued each day approximately at the time of the close of regular
trading on the NYSE as though such time were the close of trading on such Latin
American or South American market and such Latin American or South American
market were a U.S. market. When the NYSE is open, but the
73
foreign
market on which an equity security primarily trades is closed, such as for a
foreign national holiday, the security will generally be valued at the last
available closing value (subject to the Fair Value Procedures adopted by the
Board) using the prevailing exchange rate as described below. If some event
occurs affecting or likely to affect the price of an equity security or group of
equity securities to a significant extent including but not limited to material
market movement, changes in market conditions after a foreign market closes, but
prior to 4:00 p.m. Eastern Time, or a company development, such as a material
business development, dividend declaration, stock split or rights offering, and
if adequate and timely information relating to the event is not available or is
not taken into account by the pricing service, the Adviser should review the
pricing furnished by the pricing service to determine whether it is appropriate
in the circumstances. In such case, the Adviser will obtain market quotations
from another source or will make a fair value determination of such securities
using other appropriate value measurements and such information will be
presented to the Board for ratification at its next scheduled meeting. If the
primary market for such an equity security suspends or limits trading or price
movements, whether for the market as a whole or the particular security, and
trading also occurs on a secondary market which has not suspended or limited
trading or price movement, valuation will be based on information from the
secondary market provided by the Adviser. If all markets on which such an equity
security have suspended trading, the Adviser will fair value such security as
provided above. Information that becomes known after the close of the NYSE,
normally 4:00 p.m. Eastern time, on any business day may be assessed in
determining net asset value per share after the time of receipt of the
information, but will not be used to retroactively adjust the price of the
security determined earlier or on a prior day.
Initial
public offering securities are initially valued at cost. Upon commencement of
trading, these securities are valued like any other equity security.
Debt
obligations (including convertible debt) for which market quotations are readily
available are valued at the average of the latest bid and ask prices. If there
were no ask 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.
Assets and
liabilities denominated in foreign currencies will be translated into U.S.
dollars at the prevailing exchange rates as provided by an appropriate pricing
service. Forward currency exchange contracts will be valued using interpolated
forward exchange rates. Prevailing foreign exchange rates and forward currency
foreign exchange rates may generally be obtained on a consistent basis at
approximately 11:00 a.m. Eastern time, which approximates the close of the
London Exchange. As available and as provided by an appropriate pricing service,
translation of foreign security and currency market values will also occur with
the use of foreign exchange rates obtained at the close of the NYSE, normally
4:00 p.m. Eastern time.
Certain
securities are valued principally using dealer quotations. Futures contracts are
valued at the closing settlement price of the exchange or board of trade on
which the applicable contract is traded.
Over-the-counter
futures and options on futures for which market quotations are readily available
will be valued by quotations received from a pricing service or, if no
quotations are available from a pricing service, by quotations obtained from one
or more dealers in the instrument in question by the Adviser.
Securities
and other 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;
74
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.
DIVIDENDS AND
DISTRIBUTIONS
Dividends
out of net investment income and capital gains, if any, will be paid annually.
You may have dividends and/or capital gain distributions that are declared by
the Funds reinvested automatically at NAV in additional shares of the respective
Fund(s). You will make an election to receive dividends and distributions in
cash or Fund(s) shares at the time you first purchase your shares. You may
change this election by notifying your financial intermediary or the Funds in
writing at any time prior to the record date for a particular dividend or
distribution. There are no sales or other charges in connection with the
reinvestment of dividends and capital gain distributions. Shares purchased
through dividend reinvestment will receive a price without sales charge based on
the NAV on the reinvestment date, which is typically the date dividends are paid
to shareholders. There is no fixed dividend rate, and there can be no assurance
that the Funds will realize any capital gains or other income with which to pay
dividends and distributions. Distributions are taxable to you whether received
in cash or additional shares. A dividend or capital gain distribution paid on
shares purchased shortly before the record date for that dividend or
distribution will generally be subject to income taxes even though the dividend
or capital gain distribution represents, in substance, a partial return of
capital. Dividends and distributions may be different for different classes of
shares of a Fund.
Reinvestment
of dividend and capital gain distributions will continue to be permitted for
holders of the Funds’ Class AAA, Class A, and Class C Shares.
TAX INFORMATION
The Funds
expect that distributions will consist primarily of investment company taxable
income, net capital gain, and/or a return of capital. Dividends out of
investment company taxable income (including distributions of net short term
capital gains, i.e., gains from securities held by the Funds for one year or
less) are taxable to you as ordinary income if you are a U.S. shareholder,
except that certain qualified dividends may be eligible for a reduced rate
(provided certain holding period and other requirements are met). Properly
reported distributions of net capital gain, i.e., net long term capital gains
minus net short term capital loss (“Capital Gain Dividends”), are taxable to you
at the long term capital gain rates no matter how long you have owned your
shares. The Funds’ distributions, whether you receive them in cash or reinvest
them in additional shares of the Funds, generally will be subject to federal
and, if applicable, state and local taxes. A redemption of Fund shares or an
exchange of Fund shares for shares of another fund will be treated for tax
purposes as a sale of that Fund’s shares; and any gain you realize on such a
transaction generally will be taxable. Foreign shareholders may be subject to a
federal withholding tax. The tax basis of your holdings will be reduced to the
extent you receive any distributions treated as a non‑taxable return of capital.
A dividend
declared by a Fund in October, November, or December and paid during January of
the following year may in certain circumstances be treated as paid in December
for tax purposes.
75
Certain
non-corporate U.S. shareholders whose income exceeds certain thresholds will be
required to pay a 3.8% Medicare tax on dividend and other investment income,
including dividends received from a Fund and capital gains from the sale or
other disposition of a Fund’s stock.
By law, the
Funds must withhold, as backup withholding, a percentage of your taxable
distributions and redemption proceeds if you do not provide your correct social
security or taxpayer identification number and certify that you are not subject
to backup withholding, or if the Internal Revenue Service instructs the Funds to
do so.
This summary
of tax consequences is intended for general information only and is subject to
change by legislative, judicial or administrative action, and any such change
may be retroactive. A more complete discussion of the tax rules applicable to
you and the Funds can be found in the SAI that is incorporated by reference into
this prospectus. You should consult a tax adviser concerning the tax
consequences of your investment in the Funds.
MAILINGS AND
E‑DELIVERY TO SHAREHOLDERS
In our
continuing effort to reduce duplicative mail and Fund expenses, we currently
send a single copy of prospectuses and shareholder reports to your household
even if more than one member in your household owns the same fund or funds
described in the prospectus or report. Additional copies of our prospectuses and
reports may be obtained by calling 800‑GABELLI (800‑422‑3554). If you do not
want us to continue to consolidate your fund mailings and would prefer to
receive separate mailings at any time in the future, please call us at the
telephone number listed above and we shall resume separate mailings, in
accordance with your instructions, within thirty days of your request. Each Fund
offers electronic delivery of Fund documents. Direct shareholders of each Fund
can elect to receive the Fund’s annual, semiannual, and quarterly reports, as
well as manager commentaries and prospectuses via e‑delivery. For more
information or to sign up for e‑delivery, please visit the Funds’ website at
www.gabelli.com. Shareholders who purchased shares of a Fund through a financial
intermediary should contact their financial intermediary to sign up for
e‑delivery of Fund documents, if available.
FINANCIAL HIGHLIGHTS
The
Financial Highlights tables are intended to help you understand the financial
performance of the Class AAA, Class A, Class C, and Class I shares of the Global
Content & Connectivity Fund, the Global Growth Fund, the International Small
Cap Fund, and the GRID Fund for the past five fiscal years and since the
inception of the Global Mini Mites Fund. The total returns in the tables
represent the percentage amount that an investor would have earned or lost on an
investment in the designated class of shares (assuming reinvestment of all
distributions). This information has been audited by Ernst & Young LLP,
independent registered public accounting firm, whose report, along with the
Funds’ financial statements and related notes, is included in each Fund’s annual
report, which is available upon request.
76
The Gabelli Global Content & Connectivity Fund
Financial Highlights
Selected
data for a share of capital stock outstanding throughout each year:
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
Return of Capital |
|
|
Total Distributions |
|
|
Redemption Fees(a)(b) |
|
|
Net Asset Value, End
of Year |
|
|
Total Return† |
|
|
Net Assets End of Year (in 000’s) |
|
|
Net Investment Income (Loss) |
|
|
Operating Expenses Before Reimburse- ment |
|
|
Operating Expenses Net
of Reimburse- ment(c) |
|
|
Portfolio Turnover Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class AAA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
19.64 |
|
|
$ |
0.11 |
(d) |
|
$ |
3.11 |
|
|
$ |
3.22 |
|
|
$ |
(0.46 |
) |
|
$ |
(0.22 |
) |
|
|
— |
|
|
$ |
(0.68 |
) |
|
$ |
0.00 |
|
|
$ |
22.18 |
|
|
|
16.4 |
% |
|
$ |
67,239 |
|
|
|
0.57 |
%(d) |
|
|
1.77 |
% |
|
|
0.90 |
%(e) |
|
|
41 |
% |
2019 |
|
|
18.08 |
|
|
|
0.32 |
|
|
|
2.51 |
|
|
|
2.83 |
|
|
|
(0.37 |
) |
|
|
(0.90 |
) |
|
|
— |
|
|
|
(1.27 |
) |
|
|
0.00 |
|
|
|
19.64 |
|
|
|
15.6 |
|
|
|
65,024 |
|
|
|
1.63 |
|
|
|
1.74 |
|
|
|
1.69 |
(e) |
|
|
14 |
|
2018 |
|
|
21.77 |
|
|
|
0.16 |
|
|
|
(2.76 |
) |
|
|
(2.60 |
) |
|
|
(0.15 |
) |
|
|
(0.93 |
) |
|
$ |
(0.01 |
) |
|
|
(1.09 |
) |
|
|
0.00 |
|
|
|
18.08 |
|
|
|
(11.9 |
) |
|
|
63,196 |
|
|
|
0.78 |
|
|
|
1.72 |
|
|
|
1.72 |
|
|
|
19 |
|
2017 |
|
|
20.43 |
|
|
|
0.11 |
|
|
|
2.63 |
|
|
|
2.74 |
|
|
|
(0.14 |
) |
|
|
(1.26 |
) |
|
|
— |
|
|
|
(1.40 |
) |
|
|
— |
|
|
|
21.77 |
|
|
|
13.4 |
|
|
|
81,832 |
|
|
|
0.48 |
|
|
|
1.73 |
|
|
|
1.73 |
|
|
|
22 |
|
2016 |
|
|
21.30 |
|
|
|
0.27 |
|
|
|
0.29 |
|
|
|
0.56 |
|
|
|
(0.28 |
) |
|
|
(1.13 |
) |
|
|
(0.02 |
) |
|
|
(1.43 |
) |
|
|
0.00 |
|
|
|
20.43 |
|
|
|
2.7 |
|
|
|
87,893 |
|
|
|
1.23 |
|
|
|
1.65 |
|
|
|
1.65 |
(f) |
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
19.81 |
|
|
$ |
0.11 |
(d) |
|
$ |
3.14 |
|
|
$ |
3.25 |
|
|
$ |
(0.46 |
) |
|
$ |
(0.22 |
) |
|
|
— |
|
|
$ |
(0.68 |
) |
|
$ |
0.00 |
|
|
$ |
22.38 |
|
|
|
16.4 |
% |
|
$ |
422 |
|
|
|
0.59 |
%(d) |
|
|
1.77 |
% |
|
|
0.90 |
%(e) |
|
|
41 |
% |
2019 |
|
|
18.23 |
|
|
|
0.36 |
|
|
|
2.50 |
|
|
|
2.86 |
|
|
|
(0.38 |
) |
|
|
(0.90 |
) |
|
|
— |
|
|
|
(1.28 |
) |
|
|
0.00 |
|
|
|
19.81 |
|
|
|
15.6 |
|
|
|
374 |
|
|
|
1.80 |
|
|
|
1.74 |
|
|
|
1.68 |
(e) |
|
|
14 |
|
2018 |
|
|
21.94 |
|
|
|
0.16 |
|
|
|
(2.79 |
) |
|
|
(2.63 |
) |
|
|
(0.14 |
) |
|
|
(0.93 |
) |
|
$ |
(0.01 |
) |
|
|
(1.08 |
) |
|
|
0.00 |
|
|
|
18.23 |
|
|
|
(11.9 |
) |
|
|
231 |
|
|
|
0.76 |
|
|
|
1.72 |
|
|
|
1.72 |
|
|
|
19 |
|
2017 |
|
|
20.58 |
|
|
|
0.10 |
|
|
|
2.66 |
|
|
|
2.76 |
|
|
|
(0.14 |
) |
|
|
(1.26 |
) |
|
|
— |
|
|
|
(1.40 |
) |
|
|
— |
|
|
|
21.94 |
|
|
|
13.4 |
|
|
|
576 |
|
|
|
0.43 |
|
|
|
1.73 |
|
|
|
1.73 |
|
|
|
22 |
|
2016 |
|
|
21.29 |
|
|
|
0.15 |
|
|
|
0.38 |
|
|
|
0.53 |
|
|
|
(0.09 |
) |
|
|
(1.13 |
) |
|
|
(0.02 |
) |
|
|
(1.24 |
) |
|
|
0.00 |
|
|
|
20.58 |
|
|
|
2.5 |
|
|
|
661 |
|
|
|
0.68 |
|
|
|
1.65 |
|
|
|
1.65 |
(f) |
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
19.13 |
|
|
$ |
0.10 |
(d) |
|
$ |
3.04 |
|
|
$ |
3.14 |
|
|
$ |
(0.46 |
) |
|
$ |
(0.22 |
) |
|
|
— |
|
|
$ |
(0.68 |
) |
|
|
— |
|
|
$ |
21.59 |
|
|
|
16.4 |
% |
|
$ |
49 |
|
|
|
0.54 |
%(d) |
|
|
2.52 |
% |
|
|
0.90 |
%(e) |
|
|
41 |
% |
2019 |
|
|
17.45 |
|
|
|
0.04 |
|
|
|
2.55 |
|
|
|
3 |
|
|
|
(0.01 |
) |
|
|
(0.90 |
) |
|
|
— |
|
|
|
(0.91 |
) |
|
$ |
0.00 |
|
|
|
19.13 |
|
|
|
14.8 |
|
|
|
84 |
|
|
|
0.19 |
|
|
|
2.49 |
|
|
|
2.45 |
(e) |
|
|
14 |
|
2018 |
|
|
21.08 |
|
|
|
0.02 |
|
|
|
(2.68 |
) |
|
|
(2.66 |
) |
|
|
(0.03 |
) |
|
|
(0.93 |
) |
|
$ |
(0.01 |
) |
|
|
(0.97 |
) |
|
|
0.00 |
|
|
|
17.45 |
|
|
|
(12.6 |
) |
|
|
279 |
|
|
|
0.08 |
|
|
|
2.47 |
|
|
|
2.47 |
|
|
|
19 |
|
2017 |
|
|
19.85 |
|
|
|
(0.06 |
) |
|
|
2.55 |
|
|
|
2.49 |
|
|
|
— |
|
|
|
(1.26 |
) |
|
|
— |
|
|
|
(1.26 |
) |
|
|
— |
|
|
|
21.08 |
|
|
|
12.5 |
|
|
|
267 |
|
|
|
(0.28 |
) |
|
|
2.48 |
|
|
|
2.48 |
|
|
|
22 |
|
2016 |
|
|
20.71 |
|
|
|
0.09 |
|
|
|
0.30 |
|
|
|
0.39 |
|
|
|
(0.10 |
) |
|
|
(1.13 |
) |
|
|
(0.02 |
) |
|
|
(1.25 |
) |
|
|
0.00 |
|
|
|
19.85 |
|
|
|
1.9 |
|
|
|
328 |
|
|
|
0.42 |
|
|
|
2.40 |
|
|
|
2.40 |
(f) |
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
19.58 |
|
|
$ |
0.11 |
(d) |
|
$ |
3.10 |
|
|
$ |
3.21 |
|
|
$ |
(0.46 |
) |
|
$ |
(0.22 |
) |
|
|
— |
|
|
$ |
(0.68 |
) |
|
$ |
0.00 |
|
|
$ |
22.11 |
|
|
|
16.4 |
% |
|
$ |
13,931 |
|
|
|
0.58 |
%(d) |
|
|
1.52 |
% |
|
|
0.90 |
%(e) |
|
|
41 |
% |
2019 |
|
|
18.03 |
|
|
|
0.46 |
|
|
|
2.51 |
|
|
|
2.97 |
|
|
|
(0.52 |
) |
|
|
(0.90 |
) |
|
|
— |
|
|
|
(1.42 |
) |
|
|
0.00 |
|
|
|
19.58 |
|
|
|
16.4 |
|
|
|
12,495 |
|
|
|
2.33 |
|
|
|
1.49 |
|
|
|
0.99 |
(e) |
|
|
14 |
|
2018 |
|
|
21.75 |
|
|
|
0.32 |
|
|
|
(2.79 |
) |
|
|
(2.47 |
) |
|
|
(0.31 |
) |
|
|
(0.93 |
) |
|
$ |
(0.01 |
) |
|
|
(1.25 |
) |
|
|
0.00 |
|
|
|
18.03 |
|
|
|
(11.3 |
) |
|
|
12,394 |
|
|
|
1.52 |
|
|
|
1.47 |
|
|
|
1.00 |
(e) |
|
|
19 |
|
2017 |
|
|
20.40 |
|
|
|
0.28 |
|
|
|
2.62 |
|
|
|
2.90 |
|
|
|
(0.29 |
) |
|
|
(1.26 |
) |
|
|
— |
|
|
|
(1.55 |
) |
|
|
— |
|
|
|
21.75 |
|
|
|
14.2 |
|
|
|
14,374 |
|
|
|
1.26 |
|
|
|
1.48 |
|
|
|
1.00 |
(e) |
|
|
22 |
|
2016 |
|
|
21.27 |
|
|
|
0.30 |
|
|
|
0.33 |
|
|
|
0.63 |
|
|
|
(0.35 |
) |
|
|
(1.13 |
) |
|
|
(0.02 |
) |
|
|
(1.50 |
) |
|
|
0.00 |
|
|
|
20.40 |
|
|
|
3.0 |
|
|
|
6,361 |
|
|
|
1.41 |
|
|
|
1.40 |
|
|
|
1.35 |
(e)(f) |
|
|
9 |
|
† |
|
Total
return represents aggregate total return of a hypothetical investment at
the beginning of the year and sold at the end of the year including
reinvestment of distributions and does not reflect the applicable sales
charges. |
(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 the years ended December 31, 2020, 2019,
2018, 2017 and 2016, there was no impact to the expense ratios.
|
(d) |
|
Includes
income resulting from special dividends. Without these dividends, the per
share income amounts would have been 0.09 (Class AAA and Class A),
0.08 (Class C), and 0.09 (Class I), and the net investment income ratio
would have been 0.45% (Class AAA), 0.47% (Class A), 0.41% (Class C), and
0.46% (Class I), respectively. |
(e) |
|
Under
an expense reimbursement agreement with the Adviser, the Adviser
reimbursed expenses of $591,218 and $91,150 for the years ended
December 31, 2020 and 2019, and certain Class I expenses to the
Fund of $70,600, $56,231, and $899 for the years ended 2018, 2017, and
2016, respectively. |
(f) |
|
During
the year ended December 31, 2016, the Fund received reimbursements of
custody expenses paid in prior years. Had such reimbursement (allocated by
relative net asset values of the Fund’s share classes) been included in
that period, the expense ratios would have been 1.22% (Class AAA), 1.54%
(Class A), 1.99% (Class C), and 0.95% (Class I).
|
77
The Gabelli Global Growth Fund
Financial Highlights
Selected
data for a share of capital stock outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
Return of Capital |
|
|
Total Distributions |
|
|
Redemption Fees(a)(b) |
|
|
Net Asset Value, End
of Year |
|
|
Total Return† |
|
|
Net Assets End
of Year (in 000’s) |
|
|
Net Investment Income (Loss) |
|
|
Operating Expenses Before Reimburse- ment |
|
|
Operating Expenses Net
of Reimburse- ment |
|
|
Portfolio Turnover Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class AAA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
35.56 |
|
|
$ |
(0.05 |
) |
|
$ |
12.64 |
|
|
$ |
12.59 |
|
|
$ |
(0.09 |
) |
|
$ |
(1.02 |
) |
|
|
— |
|
|
$ |
(1.11 |
) |
|
$ |
0.00 |
|
|
$ |
47.04 |
|
|
|
35.4 |
% |
|
$ |
115,210 |
|
|
|
(0.14 |
)% |
|
|
1.57 |
% |
|
|
0.90 |
%(c) |
|
|
50 |
% |
2019 |
|
|
29.94 |
|
|
|
(0.07 |
) |
|
|
9.29 |
|
|
|
9.22 |
|
|
|
— |
|
|
|
(3.60 |
) |
|
|
— |
|
|
|
(3.60 |
) |
|
|
0.00 |
|
|
|
35.56 |
|
|
|
30.7 |
|
|
|
88,287 |
|
|
|
(0.21 |
) |
|
|
1.63 |
|
|
|
1.22 |
(c) |
|
|
78 |
|
2018 |
|
|
33.42 |
|
|
|
(0.05 |
) |
|
|
(0.91 |
) |
|
|
(0.96 |
) |
|
|
— |
|
|
|
(2.52 |
) |
|
|
— |
|
|
|
(2.52 |
) |
|
|
0.00 |
|
|
|
29.94 |
|
|
|
(2.8 |
) |
|
|
71,877 |
|
|
|
(0.14 |
) |
|
|
1.68 |
|
|
|
1.42 |
(c)(d) |
|
|
58 |
|
2017 |
|
|
26.72 |
|
|
|
(0.13 |
) |
|
|
7.89 |
|
|
|
7.76 |
|
|
|
— |
|
|
|
(1.05 |
) |
|
$ |
(0.01 |
) |
|
|
(1.06 |
) |
|
|
0.00 |
|
|
|
33.42 |
|
|
|
29.0 |
|
|
|
77,829 |
|
|
|
(0.42 |
) |
|
|
1.67 |
|
|
|
1.67 |
(d) |
|
|
43 |
|
2016 |
|
|
28.27 |
|
|
|
0.12 |
|
|
|
0.22 |
|
|
|
0.34 |
|
|
|
(0.13 |
) |
|
|
(1.76 |
) |
|
|
— |
|
|
|
(1.89 |
) |
|
|
— |
|
|
|
26.72 |
|
|
|
1.2 |
|
|
|
64,574 |
|
|
|
0.44 |
|
|
|
1.72 |
|
|
|
1.72 |
(d)(e) |
|
|
63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
35.55 |
|
|
$ |
(0.05 |
) |
|
$ |
12.62 |
|
|
$ |
12.57 |
|
|
$ |
(0.09 |
) |
|
$ |
(1.02 |
) |
|
|
— |
|
|
$ |
(1.11 |
) |
|
$ |
0.00 |
|
|
$ |
47.01 |
|
|
|
35.4 |
% |
|
$ |
4,804 |
|
|
|
(0.12 |
)% |
|
|
1.57 |
% |
|
|
0.90 |
%(c) |
|
|
50 |
% |
2019 |
|
|
29.93 |
|
|
|
(0.08 |
) |
|
|
9.30 |
|
|
|
9.22 |
|
|
|
— |
|
|
|
(3.60 |
) |
|
|
— |
|
|
|
(3.60 |
) |
|
|
0.00 |
|
|
|
35.55 |
|
|
|
30.7 |
|
|
|
5,332 |
|
|
|
(0.21 |
) |
|
|
1.63 |
|
|
|
1.22 |
(c) |
|
|
78 |
|
2018 |
|
|
33.41 |
|
|
|
(0.05 |
) |
|
|
(0.91 |
) |
|
|
(0.96 |
) |
|
|
— |
|
|
|
(2.52 |
) |
|
|
— |
|
|
|
(2.52 |
) |
|
|
0.00 |
|
|
|
29.93 |
|
|
|
(2.8 |
) |
|
|
3,861 |
|
|
|
(0.14 |
) |
|
|
1.68 |
|
|
|
1.41 |
(c)(d) |
|
|
58 |
|
2017 |
|
|
26.72 |
|
|
|
(0.13 |
) |
|
|
7.88 |
|
|
|
7.75 |
|
|
|
— |
|
|
|
(1.05 |
) |
|
$ |
(0.01 |
) |
|
|
(1.06 |
) |
|
|
0.00 |
|
|
|
33.41 |
|
|
|
29.0 |
|
|
|
3,652 |
|
|
|
(0.43 |
) |
|
|
1.67 |
|
|
|
1.67 |
(d) |
|
|
43 |
|
2016 |
|
|
28.26 |
|
|
|
0.12 |
|
|
|
0.23 |
|
|
|
0.35 |
|
|
|
(0.14 |
) |
|
|
(1.75 |
) |
|
|
— |
|
|
|
(1.89 |
) |
|
|
— |
|
|
|
26.72 |
|
|
|
1.3 |
|
|
|
3,143 |
|
|
|
0.44 |
|
|
|
1.72 |
|
|
|
1.72 |
(d)(e) |
|
|
63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
29.11 |
|
|
$ |
(0.04 |
) |
|
$ |
10.34 |
|
|
$ |
10.30 |
|
|
$ |
(0.09 |
) |
|
$ |
(1.02 |
) |
|
|
— |
|
|
$ |
(1.11 |
) |
|
$ |
0.00 |
|
|
$ |
38.30 |
|
|
|
35.4 |
% |
|
$ |
2,376 |
|
|
|
(0.12 |
)% |
|
|
2.32 |
% |
|
|
0.90 |
%(c) |
|
|
50 |
% |
2019 |
|
|
25.18 |
|
|
|
(0.25 |
) |
|
|
7.78 |
|
|
|
7.53 |
|
|
|
— |
|
|
|
(3.60 |
) |
|
|
— |
|
|
|
(3.60 |
) |
|
|
0.00 |
|
|
|
29.11 |
|
|
|
29.8 |
|
|
|
2,598 |
|
|
|
(0.84 |
) |
|
|
2.38 |
|
|
|
1.87 |
(c) |
|
|
78 |
|
2018 |
|
|
28.73 |
|
|
|
(0.28 |
) |
|
|
(0.75 |
) |
|
|
(1.03 |
) |
|
|
— |
|
|
|
(2.52 |
) |
|
|
— |
|
|
|
(2.52 |
) |
|
|
0.00 |
|
|
|
25.18 |
|
|
|
(3.5 |
) |
|
|
1,561 |
|
|
|
(0.93 |
) |
|
|
2.43 |
|
|
|
2.15 |
(c)(d) |
|
|
58 |
|
2017 |
|
|
23.26 |
|
|
|
(0.32 |
) |
|
|
6.85 |
|
|
|
6.53 |
|
|
|
— |
|
|
|
(1.05 |
) |
|
$ |
(0.01 |
) |
|
|
(1.06 |
) |
|
|
0.00 |
|
|
|
28.73 |
|
|
|
28.0 |
|
|
|
1,479 |
|
|
|
(1.19 |
) |
|
|
2.42 |
|
|
|
2.42 |
(d) |
|
|
43 |
|
2016 |
|
|
24.91 |
|
|
|
(0.07 |
) |
|
|
0.18 |
|
|
|
0.11 |
|
|
|
— |
|
|
|
(1.76 |
) |
|
|
— |
|
|
|
(1.76 |
) |
|
|
— |
|
|
|
23.26 |
|
|
|
0.4 |
|
|
|
1,232 |
|
|
|
(0.30 |
) |
|
|
2.47 |
|
|
|
2.47 |
(d)(e) |
|
|
63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
36.45 |
|
|
$ |
(0.08 |
) |
|
$ |
12.97 |
|
|
$ |
12.89 |
|
|
$ |
(0.09 |
) |
|
$ |
(1.02 |
) |
|
|
— |
|
|
$ |
(1.11 |
) |
|
$ |
0.00 |
|
|
$ |
48.23 |
|
|
|
35.4 |
% |
|
$ |
70,888 |
|
|
|
(0.18 |
)% |
|
|
1.32 |
% |
|
|
0.90 |
%(c) |
|
|
50 |
% |
2019 |
|
|
30.55 |
|
|
|
0.01 |
|
|
|
9.49 |
|
|
|
9.50 |
|
|
|
— |
|
|
|
(3.60 |
) |
|
|
— |
|
|
|
(3.60 |
) |
|
|
0.00 |
|
|
|
36.45 |
|
|
|
31.0 |
|
|
|
16,566 |
|
|
|
0.03 |
|
|
|
1.38 |
|
|
|
0.99 |
(c) |
|
|
78 |
|
2018 |
|
|
33.90 |
|
|
|
0.09 |
|
|
|
(0.92 |
) |
|
|
(0.83 |
) |
|
|
— |
|
|
|
(2.52 |
) |
|
|
— |
|
|
|
(2.52 |
) |
|
|
0.00 |
|
|
|
30.55 |
|
|
|
(2.4 |
) |
|
|
8,272 |
|
|
|
0.26 |
|
|
|
1.43 |
|
|
|
1.00 |
(c)(d) |
|
|
58 |
|
2017 |
|
|
26.92 |
|
|
|
0.07 |
|
|
|
7.97 |
|
|
|
8.04 |
|
|
|
— |
|
|
|
(1.05 |
) |
|
$ |
(0.01 |
) |
|
|
(1.06 |
) |
|
|
0.00 |
|
|
|
33.90 |
|
|
|
29.8 |
|
|
|
5,667 |
|
|
|
0.24 |
|
|
|
1.42 |
|
|
|
1.00 |
(c)(d) |
|
|
43 |
|
2016 |
|
|
28.47 |
|
|
|
0.33 |
|
|
|
0.23 |
|
|
|
0.56 |
|
|
|
(0.35 |
) |
|
|
(1.76 |
) |
|
|
— |
|
|
|
(2.11 |
) |
|
|
— |
|
|
|
26.92 |
|
|
|
2.0 |
|
|
|
2,975 |
|
|
|
1.18 |
|
|
|
1.47 |
|
|
|
1.00 |
(c)(d)(e) |
|
|
63 |
|
† |
|
Total
return represents aggregate total return of a hypothetical investment at
the beginning of the year and sold at the end of the year including
reinvestment of distributions and does not reflect the applicable sales
charges. |
(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 $876,253, $412,641, and $261,050 for the years
ended December 31, 2020, 2019, and 2018 and certain Class I
expenses to the Fund of $19,466 and $14,648 for the years ended
December 31, 2017 and 2016, respectively. |
(d) |
|
The
Fund received credits from a designated broker who agreed to pay certain
Fund operating expenses. For the years ended December 31, 2018, 2017,
and 2016, there was no impact to the expense ratios.
|
(e) |
|
During
the year ended December 31, 2016, the Fund received reimbursements of
custody expenses paid in prior years. Had such reimbursement (allocated by
relative net asset values of the Fund’s share classes) been included in
that period, the expense ratios would have been 1.20% (Class AAA), 1.21%
(Class A), 1.96% (Class C), and 0.47% (Class I).
|
78
The Gabelli International Small Cap Fund
Financial Highlights
Selected
data for a share of capital stock outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
Return of Capital |
|
|
Total Distributions |
|
|
Redemption Fees(a)(b) |
|
|
Net Asset Value, End
of Year |
|
|
Total Return† |
|
|
Net Assets End
of Year (in 000’s) |
|
|
Net Investment Income (Loss) |
|
|
Operating Expenses Before Reimburse- ment |
|
|
Operating Expenses Net
of Reimburse- ment(c)(d) |
|
|
Portfolio Turnover Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class AAA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
13.06 |
|
|
$ |
0.06 |
|
|
$ |
2.44 |
|
|
$ |
2.50 |
|
|
$ |
(0.12 |
) |
|
|
— |
|
|
|
— |
|
|
$ |
(0.12 |
) |
|
$ |
0.00 |
|
|
$ |
15.44 |
|
|
|
19.2 |
% |
|
$ |
6,617 |
|
|
|
0.51 |
% |
|
|
3.65 |
% |
|
|
0.91 |
% |
|
|
22 |
% |
2019 |
|
|
11.09 |
|
|
|
0.19 |
(e) |
|
|
2.68 |
|
|
|
2.87 |
|
|
|
(0.22 |
) |
|
$ |
(0.68 |
) |
|
|
— |
|
|
|
(0.90 |
) |
|
|
0.00 |
|
|
|
13.06 |
|
|
|
25.9 |
|
|
|
6,366 |
|
|
|
1.50 |
(e) |
|
|
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 |
|
|
|
(20.9 |
) |
|
|
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 |
|
|
|
28.1 |
|
|
|
8,599 |
|
|
|
0.16 |
|
|
|
3.01 |
|
|
|
1.67 |
|
|
|
71 |
|
2016 |
|
|
23.45 |
|
|
|
0.27 |
|
|
|
(0.02 |
) |
|
|
0.25 |
|
|
|
(0.28 |
) |
|
|
(1.01 |
) |
|
|
— |
|
|
|
(1.29 |
) |
|
|
0.00 |
|
|
|
22.41 |
|
|
|
1.1 |
|
|
|
7,764 |
|
|
|
1.14 |
|
|
|
2.80 |
|
|
|
1.38 |
(g)(h) |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
13.03 |
|
|
$ |
0.06 |
|
|
$ |
2.43 |
|
|
$ |
2.49 |
|
|
$ |
(0.12 |
) |
|
|
— |
|
|
|
— |
|
|
$ |
(0.12 |
) |
|
$ |
0.00 |
|
|
$ |
15.40 |
|
|
|
19.1 |
% |
|
$ |
101 |
|
|
|
0.50 |
% |
|
|
3.65 |
% |
|
|
0.91 |
% |
|
|
22 |
% |
2019 |
|
|
11.05 |
|
|
|
0.07 |
(e) |
|
|
2.67 |
|
|
|
2.74 |
|
|
|
(0.08 |
) |
|
$ |
(0.68 |
) |
|
|
— |
|
|
|
(0.76 |
) |
|
|
0.00 |
|
|
|
13.03 |
|
|
|
24.9 |
|
|
|
91 |
|
|
|
0.60 |
(e) |
|
|
3.41 |
|
|
|
1.91 |
|
|
|
9 |
|
2018 |
|
|
18.44 |
|
|
|
0.01 |
|
|
|
(4.08 |
) |
|
|
(4.07 |
) |
|
|
— |
|
|
|
(3.32 |
) |
|
|
— |
|
|
|
(3.32 |
) |
|
|
0.00 |
|
|
|
11.05 |
|
|
|
(21.7 |
) |
|
|
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 |
|
|
|
27.7 |
|
|
|
155 |
|
|
|
(0.19 |
) |
|
|
3.01 |
|
|
|
2.00 |
|
|
|
71 |
|
2016 |
|
|
23.35 |
|
|
|
0.27 |
|
|
|
(0.01 |
) |
|
|
0.26 |
|
|
|
(0.27 |
) |
|
|
(1.01 |
) |
|
|
— |
|
|
|
(1.28 |
) |
|
|
0.00 |
|
|
|
22.33 |
|
|
|
1.1 |
|
|
|
166 |
|
|
|
1.14 |
|
|
|
2.80 |
|
|
|
1.39 |
(g)(h) |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
11.74 |
|
|
$ |
0.05 |
|
|
$ |
2.20 |
|
|
$ |
2.25 |
|
|
$ |
(0.12 |
) |
|
|
— |
|
|
|
— |
|
|
$ |
(0.12 |
) |
|
$ |
0.00 |
|
|
$ |
13.87 |
|
|
|
19.2 |
% |
|
$ |
28 |
|
|
|
0.48 |
% |
|
|
4.40 |
% |
|
|
0.91 |
% |
|
|
22 |
% |
2019 |
|
|
10.02 |
|
|
|
(0.01 |
)(e) |
|
|
2.41 |
|
|
|
2.40 |
|
|
|
— |
|
|
$ |
(0.68 |
) |
|
|
— |
|
|
|
(0.68 |
) |
|
|
0.00 |
|
|
|
11.74 |
|
|
|
24.0 |
|
|
|
26 |
|
|
|
(0.12 |
)(e) |
|
|
4.16 |
|
|
|
2.61 |
|
|
|
9 |
|
2018 |
|
|
17.26 |
|
|
|
(0.11 |
) |
|
|
(3.81 |
) |
|
|
(3.92 |
) |
|
|
— |
|
|
|
(3.32 |
) |
|
|
— |
|
|
|
(3.32 |
) |
|
|
0.00 |
|
|
|
10.02 |
|
|
|
(22.3 |
) |
|
|
31 |
|
|
|
(0.67 |
) |
|
|
3.86 |
|
|
|
2.76 |
(f) |
|
|
26 |
|
2017 |
|
|
21.52 |
|
|
|
(0.23 |
) |
|
|
5.93 |
|
|
|
5.70 |
|
|
|
— |
|
|
|
(9.96 |
) |
|
|
— |
|
|
|
(9.96 |
) |
|
|
— |
|
|
|
17.26 |
|
|
|
26.8 |
|
|
|
43 |
|
|
|
(0.92 |
) |
|
|
3.76 |
|
|
|
2.75 |
|
|
|
71 |
|
2016 |
|
|
22.60 |
|
|
|
0.20 |
|
|
|
(0.01 |
) |
|
|
0.19 |
|
|
|
(0.26 |
) |
|
|
(1.01 |
) |
|
|
— |
|
|
|
(1.27 |
) |
|
|
0.00 |
|
|
|
21.52 |
|
|
|
0.9 |
|
|
|
39 |
|
|
|
0.87 |
|
|
|
3.55 |
|
|
|
1.66 |
(g)(h) |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
13.41 |
|
|
$ |
0.05 |
|
|
$ |
2.51 |
|
|
$ |
2.56 |
|
|
$ |
(0.12 |
) |
|
|
— |
|
|
|
— |
|
|
$ |
(0.12 |
) |
|
$ |
0.00 |
|
|
$ |
15.85 |
|
|
|
19.1 |
% |
|
$ |
4,342 |
|
|
|
0.39 |
% |
|
|
3.40 |
% |
|
|
0.91 |
% |
|
|
22 |
% |
2019 |
|
|
11.39 |
|
|
|
0.19 |
(e) |
|
|
2.77 |
|
|
|
2.96 |
|
|
|
(0.26 |
) |
|
$ |
(0.68 |
) |
|
|
— |
|
|
|
(0.94 |
) |
|
|
0.00 |
|
|
|
13.41 |
|
|
|
26.0 |
|
|
|
1,312 |
|
|
|
1.52 |
(e) |
|
|
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 |
|
|
|
(20.9 |
) |
|
|
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 |
|
|
|
29.0 |
|
|
|
2,031 |
|
|
|
0.82 |
|
|
|
2.76 |
|
|
|
1.00 |
|
|
|
71 |
|
2016 |
|
|
23.71 |
|
|
|
0.36 |
|
|
|
(0.01 |
) |
|
|
0.35 |
|
|
|
(0.37 |
) |
|
|
(1.01 |
) |
|
|
— |
|
|
|
(1.38 |
) |
|
|
0.00 |
|
|
|
22.68 |
|
|
|
1.5 |
|
|
|
1,246 |
|
|
|
1.50 |
|
|
|
2.55 |
|
|
|
1.01 |
(g)(h) |
|
|
4 |
|
† |
|
Total
return represents aggregate total return of a hypothetical investment at
the beginning of the year and sold at the end of the year including
reinvestment of distributions and does not reflect the applicable sales
charges. |
(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 $210,061, $184,323, $201,091, $144,403, and
$137,877 for the years ended December 31, 2020, 2019, 2018, 2017, and
2016, respectively. |
(d) |
|
The
Fund incurred interest expense. If interest expense had not been incurred,
the ratio of operating expenses to average net assets would have been
0.90% for each Class for the year ended December 31, 2020, and
2.00% (Class A), 2.75% (Class C) and with no impact to Class AAA and
Class I for the year ended December 31, 2018. For the years
ended December 31, 2019, 2017, and 2016, the effect of interest
expense was minimal. |
(e) |
|
Includes
income resulting from special dividends. Without these dividends, the per
share income amounts would have been 0.15 (Class AAA), 0.04 (Class A),
(0.05) (Class C), and 0.15 (Class I), and the net investment income ratio
would have been 1.19% (Class AAA), 0.29% (Class A), (0.43%) (Class C), and
1.21% (Class I), respectively. |
(f) |
|
The
Fund received credits from a designated broker who agreed to pay certain
Fund operating expenses. For the year ended December 31, 2018, the
effect of expense reimbursements was minimal. |
(g) |
|
The
Fund incurred tax expense for the year ended December 31, 2016. If
tax expense had not been incurred, the ratios of operating expenses to
average net assets would have been 1.37% and (Class AAA), 1.38% (Class A),
1.65% (Class C), and 1.00% (Class I), respectively.
|
(h) |
|
During
the year ended December 31, 2016, the Fund received reimbursements of
custody expenses paid in prior years. Had such reimbursement (allocated by
relative net asset values of the Fund’s share classes) been included in
this period, the expense ratios would have been 1.17% (Class AAA), 1.18%
(Class A), 1.45% (Class C), and 0.80% (Class I).
|
79
The Gabelli Global Rising Income and Dividend Fund
Financial Highlights
Selected
data for a share of capital stock outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
Return of Capital |
|
|
Total Distributions |
|
|
Redemption Fees(a)(b) |
|
|
Net Asset Value, End
of Year |
|
|
Total Return† |
|
|
Net Assets End
of Year (in 000’s) |
|
|
Net Investment Income (Loss) |
|
|
Operating Expenses Before Reimburse- ment |
|
|
Operating Expenses Net
of Reimburse- ment(c)(d) |
|
|
Portfolio Turnover Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class AAA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
26.18 |
|
|
$ |
0.19 |
|
|
$ |
2.87 |
|
|
$ |
3.06 |
|
|
$ |
(0.20 |
) |
|
|
— |
|
|
|
— |
|
|
$ |
(0.20 |
) |
|
$ |
0.00 |
|
|
$ |
29.04 |
|
|
|
11.7 |
% |
|
$ |
5,157 |
|
|
|
0.79 |
% |
|
|
1.72 |
% |
|
|
0.90 |
%(e) |
|
|
8 |
% |
2019 |
|
|
23.00 |
|
|
|
0.08 |
(f) |
|
|
3.22 |
|
|
|
3.30 |
|
|
|
(0.08 |
) |
|
$ |
(0.04 |
) |
|
|
— |
|
|
|
(0.12 |
) |
|
|
0.00 |
|
|
|
26.18 |
|
|
|
14.4 |
|
|
|
6,194 |
|
|
|
0.34 |
(f) |
|
|
1.70 |
|
|
|
1.65 |
(e) |
|
|
5 |
|
2018 |
|
|
27.20 |
|
|
|
0.16 |
|
|
|
(3.98 |
) |
|
|
(3.82 |
) |
|
|
(0.20 |
) |
|
|
(0.18 |
) |
|
|
— |
|
|
|
(0.38 |
) |
|
|
— |
|
|
|
23.00 |
|
|
|
(14.0 |
) |
|
|
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 |
|
|
|
20.9 |
|
|
|
7,672 |
|
|
|
0.12 |
|
|
|
1.62 |
|
|
|
1.62 |
|
|
|
24 |
|
2016 |
|
|
21.85 |
|
|
|
0.27 |
|
|
|
0.91 |
|
|
|
1.18 |
|
|
|
(0.23 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.23 |
) |
|
|
— |
|
|
|
22.80 |
|
|
|
5.4 |
|
|
|
4,598 |
|
|
|
1.21 |
|
|
|
1.61 |
|
|
|
1.61 |
(g) |
|
|
52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
26.23 |
|
|
$ |
0.18 |
|
|
$ |
2.89 |
|
|
$ |
3.07 |
|
|
$ |
(0.20 |
) |
|
|
— |
|
|
|
— |
|
|
$ |
(0.20 |
) |
|
$ |
0.00 |
|
|
$ |
29.10 |
|
|
|
11.7 |
% |
|
$ |
840 |
|
|
|
0.76 |
% |
|
|
1.72 |
% |
|
|
0.90 |
%(e) |
|
|
8 |
% |
2019 |
|
|
23.04 |
|
|
|
0.09 |
(f) |
|
|
3.21 |
|
|
|
3.30 |
|
|
|
(0.07 |
) |
|
$ |
(0.04 |
) |
|
|
— |
|
|
|
(0.11 |
) |
|
|
0.00 |
|
|
|
26.23 |
|
|
|
14.4 |
|
|
|
1,441 |
|
|
|
0.35 |
(f) |
|
|
1.70 |
|
|
|
1.66 |
(e) |
|
|
5 |
|
2018 |
|
|
27.26 |
|
|
|
0.16 |
|
|
|
(3.99 |
) |
|
|
(3.83 |
) |
|
|
(0.21 |
) |
|
|
(0.18 |
) |
|
|
— |
|
|
|
(0.39 |
) |
|
|
— |
|
|
|
23.04 |
|
|
|
(14.0 |
) |
|
|
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 |
|
|
|
20.9 |
|
|
|
1,178 |
|
|
|
0.18 |
|
|
|
1.62 |
|
|
|
1.62 |
|
|
|
24 |
|
2016 |
|
|
21.90 |
|
|
|
0.25 |
|
|
|
0.93 |
|
|
|
1.18 |
|
|
|
(0.22 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.22 |
) |
|
|
— |
|
|
|
22.86 |
|
|
|
5.4 |
|
|
|
480 |
|
|
|
1.15 |
|
|
|
1.61 |
|
|
|
1.61 |
(g) |
|
|
52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
21.94 |
|
|
$ |
0.15 |
|
|
$ |
2.41 |
|
|
$ |
2.56 |
|
|
$ |
(0.20 |
) |
|
|
— |
|
|
|
— |
|
|
$ |
(0.20 |
) |
|
$ |
0.00 |
|
|
$ |
24.30 |
|
|
|
11.6 |
% |
|
$ |
968 |
|
|
|
0.74 |
% |
|
|
2.47 |
% |
|
|
0.90 |
%(e) |
|
|
8 |
% |
2019 |
|
|
19.35 |
|
|
|
(0.09 |
)(f) |
|
|
2.72 |
|
|
|
2.63 |
|
|
|
— |
|
|
$ |
(0.04 |
) |
|
|
— |
|
|
|
(0.04 |
) |
|
|
0.00 |
|
|
|
21.94 |
|
|
|
13.6 |
|
|
|
1,836 |
|
|
|
(0.43 |
)(f) |
|
|
2.45 |
|
|
|
2.37 |
(e) |
|
|
5 |
|
2018 |
|
|
22.93 |
|
|
|
(0.02 |
) |
|
|
(3.35 |
) |
|
|
(3.37 |
) |
|
|
(0.03 |
) |
|
|
(0.18 |
) |
|
|
— |
|
|
|
(0.21 |
) |
|
|
— |
|
|
|
19.35 |
|
|
|
(14.7 |
) |
|
|
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 |
|
|
|
20.0 |
|
|
|
2,127 |
|
|
|
(0.62 |
) |
|
|
2.37 |
|
|
|
2.37 |
|
|
|
24 |
|
2016 |
|
|
18.61 |
|
|
|
0.06 |
|
|
|
0.80 |
|
|
|
0.86 |
|
|
|
(0.11 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.11 |
) |
|
|
— |
|
|
|
19.36 |
|
|
|
4.6 |
|
|
|
721 |
|
|
|
0.31 |
|
|
|
2.36 |
|
|
|
2.36 |
(g) |
|
|
52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
26.28 |
|
|
$ |
0.19 |
|
|
$ |
2.88 |
|
|
$ |
3.07 |
|
|
$ |
(0.20 |
) |
|
|
— |
|
|
|
— |
|
|
$ |
(0.20 |
) |
|
$ |
0.00 |
|
|
$ |
29.15 |
|
|
|
11.7 |
% |
|
$ |
48,234 |
|
|
|
0.79 |
% |
|
|
1.47 |
% |
|
|
0.90 |
%(e) |
|
|
8 |
% |
2019 |
|
|
23.08 |
|
|
|
0.25 |
(f) |
|
|
3.24 |
|
|
|
3.49 |
|
|
|
(0.25 |
) |
|
$ |
(0.04 |
) |
|
|
— |
|
|
|
(0.29 |
) |
|
|
0.00 |
|
|
|
26.28 |
|
|
|
15.1 |
|
|
|
44,180 |
|
|
|
1.01 |
(f) |
|
|
1.45 |
|
|
|
0.99 |
(e) |
|
|
5 |
|
2018 |
|
|
27.35 |
|
|
|
0.35 |
|
|
|
(4.04 |
) |
|
|
(3.69 |
) |
|
|
(0.40 |
) |
|
|
(0.18 |
) |
|
|
— |
|
|
|
(0.58 |
) |
|
|
— |
|
|
|
23.08 |
|
|
|
(13.40 |
) |
|
|
38,934 |
|
|
|
1.32 |
|
|
|
1.42 |
|
|
|
1.00 |
(e) |
|
|
20 |
|
2017 |
|
|
22.89 |
|
|
|
0.19 |
|
|
|
4.78 |
|
|
|
4.97 |
|
|
|
(0.21 |
) |
|
|
(0.28 |
)$ |
|
|
(0.02 |
) |
|
|
(0.51 |
) |
|
|
0.00 |
|
|
|
27.35 |
|
|
|
21.7 |
|
|
|
59,555 |
|
|
|
0.74 |
|
|
|
1.37 |
|
|
|
1.00 |
(e) |
|
|
24 |
|
2016 |
|
|
21.94 |
|
|
|
0.31 |
|
|
|
0.95 |
|
|
|
1.26 |
|
|
|
(0.31 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.31 |
) |
|
|
— |
|
|
|
22.89 |
|
|
|
5.8 |
|
|
|
37,344 |
|
|
|
1.39 |
|
|
|
1.36 |
|
|
|
1.27 |
(e)(g) |
|
|
52 |
|
† |
|
Total
return represents aggregate total return of a hypothetical investment at
the beginning of the year and sold at the end of the year including
reinvestment of distributions and does not reflect the applicable sales
charges. |
(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 years presented, there was no impact on
the expense ratios. |
(d) |
|
In
each year presented, the Fund incurred interest expense, the effect of
which was minimal. |
(e) |
|
Under
an expense reimbursement agreement with the Adviser, the Adviser
reimbursed expenses of $295,855 and $196,584 for the years ended
December 31, 2020 and 2019 and certain Class I expenses to the
Fund of $211,071, $175,468, and $36,018 for the years ended
December 31, 2018, 2017, and 2016, respectively.
|
(f) |
|
Includes
income resulting from special dividends. Without these dividends, the per
share income amounts would have been 0.03 (Class AAA), 0.04 (Class A),
(0.13) (Class C), and 0.20 (Class I), and the net investment income ratio
would have been 0.14% (Class AAA and Class A), (0.64%) (Class C), and
0.80% (Class I), respectively. |
(g) |
|
During
the year ended December 31, 2016, the Fund received reimbursements of
custody expenses paid in prior years. Had such reimbursement (allocated by
relative net asset values of the Fund’s share classes) been included in
this period, the expense ratios would have been 1.46% (Class AAA), 1.44%
(Class A), 2.20% (Class C), and 1.10% (Class I).
|
80
The Gabelli Global Mini Mites Fund
Financial Highlights
Selected
data for a share of capital stock outstanding throughout the 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 |
|
|
Total Distributions |
|
|
Net Asset Value, End
of Period |
|
|
Total Return† |
|
|
Net Assets End
of Period (in 000’s) |
|
|
Net Investment Income (Loss) |
|
|
Operating Expenses Before Reimburse- ment |
|
|
Operating Expenses Net
of Reimburse- ment(b) |
|
|
Portfolio Turnover Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class AAA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
9.26 |
|
|
$ |
0.05 |
|
|
$ |
1.42 |
|
|
$ |
1.47 |
|
|
$ |
(0.06 |
) |
|
|
— |
|
|
$ |
(0.06 |
) |
|
$ |
10.67 |
|
|
|
15.9 |
% |
|
$ |
120 |
|
|
|
0.61 |
% |
|
|
9.40 |
% |
|
|
0.90 |
%(c) |
|
|
63 |
% |
2019 |
|
|
8.62 |
|
|
|
0.05 |
|
|
|
0.94 |
|
|
|
0.99 |
|
|
|
(0.04 |
) |
|
$ |
(0.31 |
) |
|
|
(0.35 |
) |
|
|
9.26 |
|
|
|
11.5 |
|
|
|
114 |
|
|
|
0.53 |
|
|
|
10.81 |
|
|
|
1.23 |
(d) |
|
|
131 |
|
2018(e) |
|
|
10.00 |
|
|
|
0.01 |
|
|
|
(1.38 |
) |
|
|
(1.37 |
) |
|
|
(0.01 |
) |
|
|
(0.00 |
)(f) |
|
|
(0.01 |
) |
|
|
8.62 |
|
|
|
(13.7 |
) |
|
|
70 |
|
|
|
0.45 |
(g) |
|
|
44.14 |
(g) |
|
|
1.25 |
(g) |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
9.26 |
|
|
$ |
0.05 |
|
|
$ |
1.41 |
|
|
$ |
1.46 |
|
|
$ |
(0.06 |
) |
|
|
— |
|
|
$ |
(0.06 |
) |
|
$ |
10.66 |
|
|
|
15.8 |
% |
|
$ |
11 |
|
|
|
0.66 |
% |
|
|
9.40 |
% |
|
|
0.90 |
%(c) |
|
|
63 |
% |
2019 |
|
|
8.62 |
|
|
|
0.04 |
|
|
|
0.95 |
|
|
|
0.99 |
|
|
|
(0.04 |
) |
|
$ |
(0.31 |
) |
|
|
(0.35 |
) |
|
|
9.26 |
|
|
|
11.5 |
|
|
|
10 |
|
|
|
0.43 |
|
|
|
10.81 |
|
|
|
1.23 |
(d) |
|
|
131 |
|
2018(e) |
|
|
10.00 |
|
|
|
0.01 |
|
|
|
(1.38 |
) |
|
|
(1.37 |
) |
|
|
(0.01 |
) |
|
|
(0.00 |
)(f) |
|
|
(0.01 |
) |
|
|
8.62 |
|
|
|
(13.7 |
) |
|
|
9 |
|
|
|
0.41 |
(g) |
|
|
44.14 |
(g) |
|
|
1.25 |
(g) |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
9.23 |
|
|
$ |
0.05 |
|
|
$ |
1.41 |
|
|
$ |
1.46 |
|
|
$ |
(0.06 |
) |
|
|
— |
|
|
$ |
(0.06 |
) |
|
$ |
10.63 |
|
|
|
15.8 |
% |
|
$ |
11 |
|
|
|
0.66 |
% |
|
|
10.15 |
% |
|
|
0.90 |
%(c) |
|
|
63 |
% |
2019 |
|
|
8.61 |
|
|
|
(0.02 |
) |
|
|
0.95 |
|
|
|
0.93 |
|
|
|
(0.00 |
)(f) |
|
$ |
(0.31 |
) |
|
|
(0.31 |
) |
|
|
9.23 |
|
|
|
10.8 |
|
|
|
9 |
|
|
|
(0.25 |
) |
|
|
11.56 |
|
|
|
1.92 |
(d) |
|
|
131 |
|
2018(e) |
|
|
10.00 |
|
|
|
(0.01 |
) |
|
|
(1.38 |
) |
|
|
(1.39 |
) |
|
|
— |
|
|
|
(0.00 |
)(f) |
|
|
(0.00 |
) |
|
|
8.61 |
|
|
|
(13.9 |
) |
|
|
8 |
|
|
|
(0.34 |
)(g) |
|
|
44.89 |
(g) |
|
|
2.00 |
(g) |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
$ |
9.26 |
|
|
$ |
0.09 |
|
|
$ |
1.38 |
|
|
$ |
1.47 |
|
|
$ |
(0.06 |
) |
|
|
— |
|
|
$ |
(0.06 |
) |
|
$ |
10.67 |
|
|
|
15.9 |
% |
|
$ |
3,922 |
|
|
|
1.11 |
% |
|
|
9.15 |
% |
|
|
0.90 |
%(c) |
|
|
63 |
% |
2019 |
|
|
8.61 |
|
|
|
0.08 |
|
|
|
0.94 |
|
|
|
1.02 |
|
|
|
(0.06 |
) |
|
$ |
(0.31 |
) |
|
|
(0.37 |
) |
|
|
9.26 |
|
|
|
11.8 |
|
|
|
1,605 |
|
|
|
0.84 |
|
|
|
10.56 |
|
|
|
1.00 |
(d) |
|
|
131 |
|
2018(e) |
|
|
10.00 |
|
|
|
0.02 |
|
|
|
(1.40 |
) |
|
|
(1.38 |
) |
|
|
(0.01 |
) |
|
|
(0.00 |
)(f) |
|
|
(0.01 |
) |
|
|
8.61 |
|
|
|
(13.8 |
) |
|
|
494 |
|
|
|
0.79 |
(g) |
|
|
43.89 |
(g) |
|
|
1.00 |
(g) |
|
|
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) |
|
Under
an expense reimbursement agreement with the Adviser, the Adviser
reimbursed expenses of $163,109, $126,588, and $43,899 for the years ended
December 31, 2020 and 2019 and the period ended December 31,
2018, respectively. |
(c) |
|
The
Fund received credits from a designated broker who agreed to pay certain
Fund operating expenses for the year ended December 31, 2020. If
credits had not been received, the ratios of operating expenses to average
net assets would have been 0.96% for each Class of stock.
|
(d) |
|
The
Fund incurred interest expense 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.
|
(e) |
|
The
Fund commenced investment operations on October 1, 2018.
|
(f) |
|
Amount
represents less than $0.005 per share. |
81
APPENDIX A
Effective
January 27, 2020 (the “Effective Date”), each Fund’s respective Class AAA, Class
A and Class C shares have been “closed to purchases from new investors.” “Closed
to purchases from new investors” means: (i) with respect to 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. These changes have no effect on existing shareholders’ ability to redeem
shares of each Fund as described herein.
Sales Charge Reductions and Waivers Available through
Certain Intermediaries
Specific
intermediaries may have different policies and procedures regarding the
availability of front‑end sales load waivers or CDSC waivers, which are
discussed below. In all instances, it is the purchaser’s responsibility to
notify the Fund or the purchaser’s financial intermediary at the time of
purchase of any relationship or other facts qualifying the purchaser for sales
charge reductions or waivers. Not all
intermediaries will offer the same reductions and waivers to persons purchasing
shares of the Fund. In order to receive these reductions or waivers,
shareholders will have to purchase Fund shares through an intermediary offering
such reductions or waivers or directly from the Fund if the Fund offers such
reductions or waivers. Please see the section entitled “Classes of Shares” for
more information on sales charge reductions and waivers available for different
classes of shares that are available for purchase directly from the Fund. The
specific sales charge waivers and/or discounts for the intermediaries below are
implemented and solely administered by the particular intermediary. Please
contact that intermediary to ensure that you understand the steps that you must
take to qualify for available waivers and discounts.
The
information in this Appendix A is part of, and incorporated into, the Fund’s
prospectus.
Merrill
Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”)
Shareholders
purchasing Fund shares through a Merrill Lynch platform or account will be
eligible only for the following load waivers (front‑end sales charge waivers and
contingent deferred, or back‑end, sales charge waivers) and discounts, which may
differ from those disclosed elsewhere in the Funds’ prospectus or SAI.
82
|
Front‑end Sales Load Waivers on Class A
Shares Available at Merrill Lynch |
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including
health savings accounts) and trusts used to fund those plans, provided
that the shares are not held in a commission-based brokerage account and
shares are held for the benefit of the plan |
Shares
purchased by a 529 Plan (does not include 529 Plan units or 529-specific
share classes or equivalents) |
Shares
purchased through a Merrill Lynch affiliated investment advisory
program |
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated
investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load
discounts and waivers |
Shares
purchased by third party investment advisors on behalf of their advisory
clients through Merrill Lynch’s platform |
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if
applicable) |
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other
fund within the Fund Complex) |
Shares
exchanged from Class C (i.e. level-load) shares of the same fund
pursuant to Merrill Lynch’s policies relating to sales load discounts and
waivers |
Employees
and registered representatives of Merrill Lynch or its affiliates and
their family members |
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or
any of its affiliates, as described in this prospectus |
Eligible
shares purchased from the proceeds of redemptions within the Fund Complex,
provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same
account, and (3) redeemed shares were subject to a front‑end or
deferred sales load (known as Rights of Reinstatement). Automated
transactions (i.e. systematic purchases and withdrawals) and purchases
made after shares are automatically sold to pay Merrill Lynch’s account
maintenance fees are not eligible for reinstatement |
CDSC Waivers on Class A and C Shares
Available at Merrill Lynch |
Death
or disability of the shareholder |
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s
prospectus |
Return
of excess contributions from an IRA Account |
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts pursuant to the Internal Revenue Code |
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by
Merrill Lynch |
Shares
acquired through a right of reinstatement |
Shares
held in retirement brokerage accounts, that are exchanged for a lower cost
share class due to transfer to a fee based accounts or platforms
(applicable to A and C shares only) |
Shares
received through an exchange due to the holdings moving from a Merrill
Lynch affiliated investment advisory program to a Merrill Lynch brokerage
(non-advisory) account pursuant to Merrill Lynch’s policies relating to
sales load discounts and waivers |
Front‑end load Discounts Available at Merrill
Lynch: Breakpoints, Rights of Accumulation & Letters of
Intent |
Breakpoints
as described in this prospectus |
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts
as described in the Funds’ prospectus will be automatically calculated
based on the aggregated holding of Fund Complex assets held by accounts
(including 529 program holdings, where applicable) within the purchaser’s
household at Merrill Lynch. Eligible Fund Complex assets not held at
Merrill Lynch may be included in the ROA calculation only if the
shareholder notifies his or her financial advisor about such
assets |
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated
purchases within the Fund Complex, through Merrill Lynch, over a 13 month
period of time (if applicable) |
83
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley Wealth Management transactional
brokerage account will be eligible only for the following front-end sales charge
waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Prospectus or SAI.
|
• |
|
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement
plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans
|
|
• |
|
Morgan
Stanley employee and employee-related accounts according to Morgan
Stanley’s account linking rules |
|
• |
|
Shares
purchased through reinvestment of dividends and capital gains
distributions when purchasing shares of the same fund
|
|
• |
|
Shares
purchased through a Morgan Stanley self-directed brokerage account
|
|
• |
|
Class
C (i.e., level-load) shares that are no longer subject to a contingent
deferred sales charge and are converted to Class A shares of the same fund
pursuant to Morgan Stanley Wealth Management’s share class conversion
program |
|
• |
|
Shares
purchased from the proceeds of redemptions within the same fund family,
provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account,
and (iii) redeemed shares were subject to a front-end or deferred sales
charge. |
Raymond
James & Associates, Inc., Raymond James Financial Services, Inc. and
each entity’s affiliates (“Raymond James”)
Shareholders
purchasing fund shares through a Raymond James platform or account, or through
an introducing broker-dealer or independent registered investment adviser for
which Raymond James provides trade execution, clearance, and/or custody
services, will be eligible only for the following load waivers (front‑end sales
charge waivers and contingent deferred, or back‑end, sales charge waivers) and
discounts, which may differ from those disclosed elsewhere in this Prospectus or
SAI.
Front‑end sales load waivers on Class A shares
available at Raymond James
|
• |
|
Shares
purchased in an investment advisory program.
|
|
• |
|
Shares
purchased within the same fund family through a systematic reinvestment of
capital gains and dividend distributions.
|
|
• |
|
Employees
and registered representatives of Raymond James or its affiliates and
their family members as designated by Raymond James.
|
|
• |
|
Shares
purchased from the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same
account, and (3) redeemed shares were subject to a front‑end or
deferred sales load (known as Rights of Reinstatement).
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• |
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A
shareholder in the Fund’s Class C shares will have their shares
converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and
the conversion is in line with the policies and procedures of Raymond
James. |
84
CDSC Waivers on Classes A and C shares available at
Raymond James
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• |
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Death
or disability of the shareholder. |
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• |
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Shares
sold as part of a systematic withdrawal plan as described in the fund’s
prospectus. |
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• |
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Return
of excess contributions from an IRA Account.
|
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• |
|
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due to the shareholder reaching age 701/2 as
described in the fund’s prospectus.
|
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• |
|
Shares
sold to pay Raymond James fees but only if the transaction is initiated by
Raymond James. |
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• |
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Shares
acquired through a right of reinstatement.
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Front‑end load discounts available at Raymond James:
breakpoints, rights of accumulation, and/or letters of intent
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• |
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Breakpoints
as described in this prospectus. |
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• |
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Rights
of accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family
assets held by accounts within the purchaser’s household at Raymond James.
Eligible fund family assets not held at Raymond James may be included in
the calculation of rights of accumulation calculation only if the
shareholder notifies his or her financial advisor about such assets.
|
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Letters
of intent which allow for breakpoint discounts based on anticipated
purchases within a fund family, over a 13‑month time period. Eligible fund
family assets not held at Raymond James may be included in the calculation
of letters of intent only if the shareholder notifies his or her financial
advisor about such assets. |
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO platform or account are eligible only for
the following load waivers (front-end sales charge waivers and contingent
deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
Front-end Sales Load Waivers on Class A Shares
available at OPCO
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• |
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Employer-sponsored
retirement, deferred compensation and employee benefit plans (including
health savings accounts) and trusts used to fund those plans, provided
that the shares are not held in a commission-based brokerage account and
shares are held for the benefit of the plan
|
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• |
|
Shares
purchased by or through a 529 Plan |
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• |
|
Shares
purchased through a OPCO affiliated investment advisory program
|
|
• |
|
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other
fund within the fund family) |
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• |
|
Shares
purchased form the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same amount, and
(3) redeemed shares were subject to a front-end or deferred sales load
(known as Rights of Restatement). |
85
|
• |
|
A
shareholder in the Fund’s Class C shares will have their shares converted
at net asset value to Class A shares (or the appropriate share class)
of the Fund if the shares are no longer subject to a CDSC and the
conversion is in line with the policies and procedures of OPCO
|
|
• |
|
Employees
and registered representatives of OPCO or its affiliates and their family
members |
|
• |
|
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or
any of its affiliates, as described in this prospectus
|
CDSC Waivers on A, B and C Shares available at OPCO
|
• |
|
Death
or disability of the shareholder |
|
• |
|
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s
prospectus |
|
• |
|
Return
of excess contributions from an IRA Account
|
|
• |
|
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due to the shareholder reaching age 70½ as described in the
prospectus |
|
• |
|
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO
|
|
• |
|
Shares
acquired through a right of reinstatement
|
Front-end load Discounts Available at OPCO:
Breakpoints, Rights of Accumulation & Letters of Intent
|
• |
|
Breakpoints
as described in this prospectus. |
|
• |
|
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts
will be automatically calculated based on the aggregated holding of fund
family assets held by accounts within the purchaser’s household at OPCO.
Eligible fund family assets not held at OPCO may be included in the ROA
calculation only if the shareholder notifies his or her financial advisor
about such assets |
Ameriprise
Financial
Class A Shares Front‑End Sales Charge Waivers
Available at Ameriprise Financial:
The following information applies to Class A
shares purchases if you have an account with or otherwise purchase Fund shares
through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise Financial brokerage account are
eligible for the following front‑end sales charge waivers, which may differ from
those disclosed elsewhere in this Fund’s prospectus or SAI:
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• |
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Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement
plans do not include SEP IRAs, Simple IRAs or SAR‑SEPs.
|
|
• |
|
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same Fund (but not any other
fund within the same fund family). |
|
• |
|
Shares
exchanged from Class C shares of the same fund in the month of or
following the 7‑year anniversary of the purchase date. To the extent that
this prospectus elsewhere provides for a waiver with respect to exchanges
of Class C shares or conversion of Class C shares following a
shorter holding period, that waiver will apply.
|
86
|
• |
|
Employees
and registered representatives of Ameriprise Financial or its affiliates
and their immediate family members. |
|
• |
|
Shares
purchased by or through qualified accounts (including IRAs, Coverdell
Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and
defined benefit plans) that are held by a covered family member, defined
as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s
lineal ascendant (mother, father, grandmother, grandfather, great
grandmother, great grandfather), advisor’s lineal descendant (son,
step‑son, daughter, step-daughter, grandson, granddaughter, great
grandson, great granddaughter) or any spouse of a covered family member
who is a lineal descendant. |
|
• |
|
Shares
purchased from the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same
account, and (3) redeemed shares were subject to a front‑end or
deferred sales load (i.e. Rights of Reinstatement).
|
87
GAMCO Global Series Funds, Inc.
The Gabelli Global Content & Connectivity
Fund-Class AAA, A, C, and I Shares
The Gabelli Global Growth Fund-Class AAA, A, C,
and I Shares
The Gabelli International Small Cap
Fund-Class AAA, A, C, and I Shares
The Gabelli Global Rising Income and Dividend
Fund-Class AAA, A, C, and I Shares
The Gabelli Global Mini Mites™
Fund-Class AAA, A, C, and I Shares
For more
information about the Funds, the following documents are available free upon
request:
Annual/Semiannual Reports:
Each Fund’s
semiannual and audited annual reports to shareholders contain additional
information on the Funds’ investments. In each Fund’s annual report, you will
find a discussion of the market conditions and investment strategies that
significantly affected each Fund’s performance during its last fiscal year.
Statement of Additional Information (SAI):
The SAI
provides more detailed information about the Funds, including their operations
and investment policies. It is incorporated by reference, and is legally
considered a part of this prospectus.
Appendix A:
Appendix A
to this prospectus, “Sales Charge Reductions and Waivers Available through
Certain Intermediaries,” is a separate document that is incorporated by
reference into this prospectus and contains information on sales charge
reductions and waivers that differ from the sales charge reductions and waivers
disclosed in this prospectus and the related SAI.
You can
obtain free copies of these documents and prospectuses of other funds in the
Gabelli/GAMCO Fund Complex, or request other information, and discuss your
questions about the Funds by mail, toll free telephone, or the Internet as
follows:
GAMCO Global
Series Funds, Inc. One Corporate Center Rye, NY 10580-1422 Telephone:
800‑GABELLI (800‑422‑3554) www.gabelli.com
You can also
review and/or copy the Funds’ prospectus, annual/semiannual reports, and SAI at
the Public Reference Room of the SEC in Washington, DC. You can obtain text-only
copies:
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• |
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Free
from the Funds’ website at www.gabelli.com.
|
|
• |
|
For a
fee, by electronic request at [email protected], by writing to the Public
Reference Section of the SEC, Washington, DC 20549-1520 or by calling
202‑551‑8090. |
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• |
|
Free
from the EDGAR Database on the SEC’s website at www.sec.gov.
|
(Investment
Company Act File No. 811‑07896)