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 |
% |
|
|
|
|