N-CSRS/A 1 westwood.txt WESTWOOD SEMI 3-04 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Fund Act file number 811-04719 --------- The Gabelli Westwood Funds ------------------------------------------------------------------ (Exact name of registrant as specified in charter) One Corporate Center Rye, NY 10580-1422 ------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Bruce N. Alpert Gabelli Funds, LLC One Corporate Center Rye, NY 10580-1422 ------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: 800-422-3554 ------------ Date of fiscal year end: September 30, 2004 ------------------ Date of reporting period: March 31, 2004 -------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Fund Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. The Report to Shareholders is attached herewith. THE GABELLI WESTWOOD FUNDS ================================================================================
EQUITY FUND SMALLCAP EQUITY FUND BALANCED FUND REALTY FUND INTERMEDIATE BOND FUND MIGHTY MITES SM FUND CLASS AAA SHARES CLASS A SHARES --------------------------------------------------- ------------------------------------------------- Average Annual Returns -- March 31, 2004 (a)(e) Average Annual Returns -- March 31, 2004 (a)(b)(e) Since Since 1 Year 5 Year 10 Year Inception 1 Year 5 Year 10 Year Inception -------------------------------------- ------------------------------------------------- Equity .............. 30.61% 3.20% 11.95% 11.60% 25.11% 2.09% 11.18% 11.14% Balanced ............ 19.94 4.62 10.46 10.56 14.80 3.50 9.73 9.89 Intermediate Bond ... 3.14 6.19 6.45 6.57 (1.08) 5.28 6.00 6.20 SmallCap Equity ..... 26.64 (1.49) -- 4.60 21.34 (2.35) -- 3.90 Realty .............. 45.94 17.68 -- 10.22 39.70 16.57 -- 9.41 Mighty Mites SM ..... 34.95 14.93 -- 14.47 29.21 13.85 -- 13.56 CLASS B SHARES CLASS C SHARES ------------------------------------------ ---------------------------------------- Average Annual Returns -- March 31, 2004 (a)(c)(e) Average Annual Returns -- March 31, 2004 (a)(d)(e) Since Since 1 Year 5 Year 10 Year Inception 1 Year 5 Year 10 Year Inception -------------------------------------- ------------------------------------------------- Equity .............. 25.26% 2.65% 11.52% 11.34% 28.74% 2.69% 11.51% 11.33% Balanced ............ 14.68 3.99 10.05 10.15 18.20 4.22 10.11 10.20 Intermediate Bond ... (1.51) 5.47 6.19 6.36 3.10 6.08 6.40 6.53 SmallCap Equity ..... 22.32 (2.20) -- 4.29 25.43 (1.63) -- 4.49 Realty .............. 41.22 17.22 -- 10.03 44.66 17.57 -- 10.14 Mighty Mites SM ..... 29.98 14.24 -- 13.98 33.25 14.48 -- 14.09
(a) Total returns and average annual returns reflect changes in share price and reinvestment of dividends and are net of expenses. Of course, returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are redeemed they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month-end. Investors should consider the investment objectives, risks and charges and expenses of the Fund before investing. The prospectus contains more complete information about this and other matters and should be read carefully before investing. (b) Includes the effect of the maximum 4.0% sales charge at the beginning of the period. (c) Includes the effect of the applicable contingent deferred sales charge upon redemption of Class B Shares within 72 months. (d) Includes the effect of the applicable contingent deferred sales charge upon redemption of Class C Shares within 12 months. (e) The performance of the Class AAA Shares is used to calculate performance for the periods prior to the issuance of Class A Shares, Class B Shares and Class C Shares. The performance for the Class B Shares and Class C Shares would have been lower due to the additional expenses associated with these Classes of shares. The inception dates for the Class AAA Shares and the initial issuance dates for the Class A Shares, Class B Shares and Class C Shares after which shares remained continuously outstanding are listed below.
Class AAA Shares Class A Shares Class B Shares Class C Shares ---------------- -------------- -------------- -------------- Equity ................ 01/02/87 01/28/94 03/27/01 02/13/01 Balanced .............. 10/01/91 04/06/93 03/27/01 09/25/01 Intermediate Bond ..... 10/01/91 07/26/01 03/27/01 10/22/01 SmallCap Equity ....... 04/15/97 11/26/01 03/27/01 11/26/01 Realty ................ 09/30/97 05/09/01 11/26/01 11/26/01 Mighty Mites SM ....... 05/11/98 11/26/01 06/06/01 08/03/01
THE GABELLI WESTWOOD EQUITY FUND PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) -------------------------------------------------------------------------------- SHARES COST VALUE ------ ---- ----- COMMON STOCKS -- 99.5% AEROSPACE -- 4.8% 124,700 Boeing Co. .............$ 4,949,668 $ 5,121,429 113,800 Lockheed Martin Corp. .. 6,072,744 5,193,832 ------------ ------------ 11,022,412 10,315,261 ------------ ------------ AUTOMOTIVE -- 1.8% 79,900 General Motors Corp. ... 3,605,769 3,763,290 ------------ ------------ AVIATION: PARTS AND SERVICES -- 2.6% 63,300 United Technologies Corp. ................ 3,789,119 5,462,790 ------------ ------------ BROADCASTING -- 1.3% 63,100 Clear Channel Communications Inc. ... 2,438,872 2,672,285 ------------ ------------ CABLE -- 1.3% 97,200 Comcast Corp., Cl. A, Special+ .............. 2,730,175 2,709,936 ------------ ------------ COMPUTER HARDWARE -- 6.5% 99,400 Apple Computer Inc.+ ... 2,017,343 2,688,770 251,187 Hewlett-Packard Co. .... 4,559,754 5,737,111 59,400 International Business Machines Corp. ....... 4,985,531 5,455,296 ------------ ------------ 11,562,628 13,881,177 ------------ ------------ CONSUMER PRODUCTS -- 3.6% 39,200 Altria Group Inc. ...... 1,603,831 2,134,440 53,900 Procter & Gamble Co. ... 4,793,725 5,653,032 ------------ ------------ 6,397,556 7,787,472 ------------ ------------ DIVERSIFIED INDUSTRIAL -- 5.2% 98,000 Eaton Corp. ............ 4,973,274 5,506,620 182,800 General Electric Co. ... 5,202,607 5,579,056 ------------ ------------ 10,175,881 11,085,676 ------------ ------------ ELECTRONICS -- 1.3% 70,600 Hubbell Inc., Cl. B .... 2,863,124 2,833,178 ------------ ------------ ENERGY AND UTILITIES: INTEGRATED -- 7.9% 93,700 Burlington Resources Inc. ................ 4,883,991 5,962,131 80,300 ConocoPhillips ......... 4,740,093 5,605,743 113,260 Progress Energy Inc. ... 4,856,890 5,332,281 ------------ ------------ 14,480,974 16,900,155 ------------ ------------ ENERGY AND UTILITIES: NATURAL GAS -- 3.9% 129,506 Apache Corp. ........... 3,184,564 5,590,774 57,700 Nabors Industries Ltd.+ 2,158,773 2,639,775 ------------ ------------ 5,343,337 8,230,549 ------------ ------------ ENERGY AND UTILITIES: OIL -- 6.6% 62,600 ChevronTexaco Corp. .... 5,594,749 5,495,028 140,900 Exxon Mobil Corp. ...... 5,661,023 5,860,031 43,700 Murphy Oil Corp. ....... 1,921,775 2,751,789 ------------ ------------ 13,177,547 14,106,848 ------------ ------------ ENERGY AND UTILITIES: WATER -- 1.3% 132,975 Aqua America Inc. ...... 2,557,319 2,882,898 ------------ ------------ FINANCIAL SERVICES -- 18.1% 103,800 American Express Co. ... 3,831,585 5,382,030 69,200 Bank of America Corp. .. 3,309,294 5,603,816 64,600 Bear Stearns Companies Inc. ................. 4,053,831 5,664,128 112,933 Citigroup Inc. ......... 4,746,293 5,838,636 75,600 Eaton Vance Corp. ...... 2,627,929 2,881,872 64,900 Lehman Brothers Holdings Inc. ........ 4,743,184 5,378,263 SHARES COST VALUE ------ ---- ----- 119,400 Prudential Financial Inc. .................$ 3,865,726 $ 5,346,732 65,400 St. Paul Companies Inc. 2,475,501 2,616,654 ------------ ------------ 29,653,343 38,712,131 ------------ ------------ FINANCIAL SERVICES: BANKS -- 5.1% 52,200 Bank One Corp. ......... 2,108,807 2,845,944 86,500 KeyCorp ................ 2,032,099 2,620,085 61,200 M&T Bank Corp. ......... 4,978,809 5,498,820 ------------ ------------ 9,119,715 10,964,849 ------------ ------------ FOOD AND BEVERAGE -- 4.1% 112,900 ConAgra Foods Inc. ..... 2,711,437 3,041,526 84,000 Dean Foods Co.+ ........ 2,636,394 2,805,600 60,700 General Mills Inc. ..... 2,792,125 2,833,476 ------------ ------------ 8,139,956 8,680,602 ------------ ------------ HEALTH CARE -- 4.9% 113,500 Merck & Co. Inc. ....... 4,999,318 5,015,565 152,600 Pfizer Inc. ............ 4,698,234 5,348,630 ------------ ------------ 9,697,552 10,364,195 ------------ ------------ HOTELS AND GAMING -- 1.5% 77,600 Starwood Hotels & Resorts Worldwide Inc. ........ 1,793,016 3,142,800 ------------ ------------ METALS AND MINING -- 2.5% 156,000 Alcoa Inc. ............. 4,881,278 5,411,640 ------------ ------------ PAPER AND FOREST PRODUCTS -- 3.9% 66,300 International Paper Co. 2,581,412 2,801,838 65,728 Rayonier Inc. .......... 2,598,993 2,872,971 42,900 Temple-Inland Inc. ..... 2,424,532 2,717,286 ------------ ------------ 7,604,937 8,392,095 ------------ ------------ REAL ESTATE INVESTMENT TRUSTS -- 1.3% 46,600 Simon Property Group Inc. ........... 1,662,532 2,723,304 ------------ ------------ SPECIALTY CHEMICALS -- 2.4% 121,100 E.I. du Pont de Nemours and Co. ...... 5,471,447 5,112,842 ------------ ------------ TELECOMMUNICATIONS -- 5.2% 61,500 Harris Corp. ........... 2,121,480 2,977,215 112,700 SBC Communications Inc. ................. 2,841,689 2,765,658 81,400 Univision Communications Inc.+ ................ 2,866,713 2,687,014 72,804 Verizon Communications Inc. ................. 2,615,633 2,660,258 ------------ ------------ 10,445,515 11,090,145 ------------ ------------ TRANSPORTATION -- 2.4% 84,600 Union Pacific Corp. .... 4,757,271 5,060,772 ------------ ------------ TOTAL COMMON STOCKS .... 183,371,275 212,286,890 ------------ ------------ TOTAL INVESTMENTS -- 99.5% .$183,371,275 212,286,890 ============ OTHER ASSETS AND LIABILITIES (NET) -- 0.5% .......... 997,395 ------------ NET ASSETS -- 100.0% .................$213,284,285 ============ --------------- For Federal tax purposes: Aggregate Cost .......................$183,371,275 ============ Gross unrealized appreciation ........$ 30,558,768 Gross unrealized depreciation ........ (1,643,153) ------------ Net unrealized appreciation ..........$ 28,915,615 ============ ---------------- + Non-income producing security. See accompanying notes to financial statements. 2 THE GABELLI WESTWOOD BALANCED FUND PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) -------------------------------------------------------------------------------- SHARES COST VALUE ------ ---- ----- COMMON STOCKS -- 55.9% AEROSPACE -- 2.8% 48,700 Boeing Co. .............$ 1,714,765 $ 2,000,109 46,000 Lockheed Martin Corp. .. 2,428,248 2,099,440 ------------ ------------ 4,143,013 4,099,549 ------------ ------------ AUTOMOTIVE -- 1.2% 36,600 General Motors Corp. ... 1,475,358 1,723,860 ------------ ------------ AVIATION: PARTS AND SERVICES -- 1.4% 23,700 United Technologies Corp. ................ 1,258,285 2,045,310 ------------ ------------ BROADCASTING -- 0.7% 23,401 Clear Channel Communications Inc. ... 900,831 991,032 ------------ ------------ CABLE -- 0.7% 36,100 Comcast Corp., Cl. A+ .. 1,008,278 1,006,468 ------------ ------------ COMPUTER HARDWARE -- 3.5% 36,500 Apple Computer Inc.+ ... 654,047 987,325 95,788 Hewlett-Packard Co. .... 1,663,294 2,187,798 21,800 International Business Machines Corp. ........ 1,614,298 2,002,112 ------------ ------------ 3,931,639 5,177,235 ------------ ------------ CONSUMER PRODUCTS -- 2.0% 14,500 Altria Group Inc. ...... 565,223 789,525 20,400 Procter & Gamble Co. ... 1,810,206 2,139,552 ------------ ------------ 2,375,429 2,929,077 ------------ ------------ DIVERSIFIED INDUSTRIAL -- 2.8% 36,700 Eaton Corp. ............ 2,146,195 2,062,173 68,000 General Electric Co. ... 1,837,036 2,075,360 ------------ ------------ 3,983,231 4,137,533 ------------ ------------ ENERGY AND UTILITIES: INTEGRATED -- 5.5% 34,100 Burlington Resources Inc. .................. 1,770,477 2,169,783 29,200 ConocoPhillips ......... 1,723,846 2,038,452 43,900 Kinder Morgan Energy Partners LP ........... 1,750,032 1,979,451 43,649 Progress Energy Inc. ... 1,831,110 2,054,995 ------------ ------------ 7,075,465 8,242,681 ------------ ------------ ENERGY AND UTILITIES: NATURAL GAS -- 2.1% 49,480 Apache Corp. ........... 1,184,954 2,136,052 21,000 Nabors Industries Ltd.+ ................. 784,514 960,750 ------------ ------------ 1,969,468 3,096,802 ------------ ------------ ENERGY AND UTILITIES: OIL -- 3.7% 22,800 ChevronTexaco Corp. .... 1,846,313 2,001,384 60,800 Exxon Mobil Corp. ...... 2,237,581 2,528,672 16,000 Murphy Oil Corp. ....... 685,871 1,007,520 ------------ ------------ 4,769,765 5,537,576 ------------ ------------ FINANCIAL SERVICES -- 12.9% 39,100 American Express Co. ... 1,426,330 2,027,335 24,800 Bank of America Corp. .. 1,341,710 2,008,304 36,700 Bank One Corp. ......... 1,679,934 2,000,884 23,500 Bear Stearns Companies Inc. .................. 1,454,004 2,060,480 41,433 Citigroup Inc. ......... 1,473,275 2,142,086 28,800 Eaton Vance Corp. ...... 1,000,915 1,097,856 31,400 KeyCorp ................ 761,456 951,106 23,900 Lehman Brothers Holdings Inc. ......... 1,742,611 1,980,593 21,200 M&T Bank Corp. ......... 1,704,417 1,904,820 43,800 Prudential Financial Inc. .................. 1,386,598 1,961,364 23,800 St. Paul Companies Inc. 900,372 952,238 ------------ ------------ 14,871,622 19,087,066 ------------ ------------ SHARES COST VALUE ------ ---- ----- FOOD AND BEVERAGE -- 2.2% 42,200 ConAgra Foods Inc. .....$ 1,009,963 $ 1,136,868 30,800 Dean Foods Co.+ ........ 964,080 1,028,720 22,600 General Mills Inc. ..... 1,039,569 1,054,968 ------------ ------------ 3,013,612 3,220,556 ------------ ------------ HEALTH CARE -- 2.6% 42,700 Merck & Co. Inc. ....... 1,854,502 1,886,913 55,500 Pfizer Inc. ............ 1,628,778 1,945,275 ------------ ------------ 3,483,280 3,832,188 ------------ ------------ HOTELS AND GAMING -- 0.8% 30,200 Starwood Hotels & Resorts Worldwide Inc. ........ 695,475 1,223,100 ------------ ------------ METALS AND MINING -- 1.3% 58,100 Alcoa Inc. ............. 1,546,331 2,015,489 ------------ ------------ PAPER AND FOREST PRODUCTS -- 2.8% 47,100 International Paper Co. 1,791,865 1,990,446 24,878 Rayonier Inc. .......... 992,974 1,087,417 18,400 Temple-Inland Inc. ..... 1,039,893 1,165,456 ------------ ------------ 3,824,732 4,243,319 ------------ ------------ REAL ESTATE INVESTMENT TRUSTS -- 1.5% 31,800 ProLogis ............... 779,688 1,140,666 19,700 Simon Property Group Inc. 701,993 1,151,268 ------------ ------------ 1,481,681 2,291,934 ------------ ------------ SPECIALTY CHEMICALS -- 1.3% 47,300 E.I. du Pont de Nemours and Co. ............... 2,113,002 1,997,006 ------------ ------------ TELECOMMUNICATIONS -- 2.8% 22,900 Harris Corp. ........... 801,975 1,108,589 41,400 SBC Communications Inc. 1,055,696 1,015,956 30,200 Univision Communications Inc.+ ................. 1,059,640 996,902 26,738 Verizon Communications Inc. .................. 888,867 977,007 ------------ ------------ 3,806,178 4,098,454 ------------ ------------ TRANSPORTATION -- 1.3% 31,900 Union Pacific Corp. .... 1,812,272 1,908,258 ------------ ------------ TOTAL COMMON STOCKS .... 69,538,947 82,904,493 ------------ ------------ PRINCIPAL AMOUNT --------- ASSET BACKED SECURITIES -- 0.6% $ 825,000 GS Mortgage Securities Corp. II, 97-GL Cl. A2D, 6.940%, 07/13/30 ...... 833,199 921,129 ------------ ------------ SHARES ------ PREFERRED STOCKS -- 4.5% FINANCIAL SERVICES -- 4.5% 43,500 Fannie Mae, 5.375% Pfd., Ser. I ... 2,290,856 2,268,525 91,400 JP Morgan Chase Capital, 5.875% Pfd., Ser. XI .. 2,278,356 2,282,258 77,900 Wells Fargo Capital Trust, 7.000% Pfd., Ser. IV .. 2,107,746 2,101,742 ------------ ------------ 6,676,958 6,652,525 ------------ ------------ TOTAL PREFERRED STOCKS . 6,676,958 6,652,525 ------------ ------------ See accompanying notes to financial statements. 3 THE GABELLI WESTWOOD BALANCED FUND PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2004 (UNAUDITED) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT COST VALUE --------- ---- ----- CORPORATE BONDS -- 12.0% COMPUTER HARDWARE -- 1.4% $ 750,000 Hewlett-Packard Co., 3.625%, 03/15/08 ......$ 748,142 $ 767,287 1,250,000 IBM Corp., 4.875%, 10/01/06 ...... 1,282,331 1,336,326 ------------ ------------ 2,030,473 2,103,613 ------------ ------------ DIVERSIFIED INDUSTRIAL -- 0.9% 1,200,000 General Electric Co., 5.000%, 02/01/13 ...... 1,215,905 1,258,735 ------------ ------------ ENERGY AND UTILITIES: OIL -- 1.1% 920,000 Conoco Inc., 5.900%, 04/15/04 ...... 919,457 921,204 750,000 Occidental Petroleum, 4.250%, 03/15/10 ...... 758,332 769,762 ------------ ------------ 1,677,789 1,690,966 ------------ ------------ FINANCIAL SERVICES -- 3.6% 1,325,000 Bank of America Corp., 5.875%, 02/15/09 ...... 1,340,346 1,480,105 1,225,000 Bear Stearns Co. Inc., 2.875%, 07/02/08 ...... 1,215,373 1,211,472 1,125,000 Citigroup Inc., 6.500%, 01/18/11 ...... 1,265,495 1,300,059 1,225,000 Goldman Sachs Group Inc., 6.650%, 05/15/09 ...... 1,216,578 1,407,247 ------------ ------------ 5,037,792 5,398,883 ------------ ------------ FOOD AND BEVERAGE -- 0.7% 950,000 Anheuser-Busch Cos. Inc., 4.375%, 01/15/13 ...... 933,080 957,530 ------------ ------------ REAL ESTATE INVESTMENT TRUSTS -- 1.2% 1,600,000 Archstone-Smith Trust, 7.200%, 03/01/13 ...... 1,549,930 1,833,136 ------------ ------------ RETAIL -- 2.0% 1,275,000 Neiman Marcus Group Inc., 6.650%, 06/01/08 ...... 1,274,280 1,427,426 1,250,000 Wal-Mart Stores, 6.875%, 08/10/09 ...... 1,324,091 1,468,648 ------------ ------------ 2,598,371 2,896,074 ------------ ------------ TELECOMMUNICATIONS -- 1.1% 1,460,000 Verizon Communications, 6.460%, 04/15/08 ...... 1,469,007 1,645,566 ------------ ------------ TOTAL CORPORATE BONDS .. 16,512,347 17,784,503 ------------ ------------ FOREIGN GOVERNMENT BONDS -- 1.4% 1,000,000 Canadian Global Bond, 6.750%, 08/28/06 ...... 1,026,090 1,115,640 1,000,000 Italy Global Bond, 2.500%, 03/31/06 ...... 999,372 1,016,540 ------------ ------------ TOTAL FOREIGN GOVERNMENT BONDS ...... 2,025,462 2,132,180 ------------ ------------ PRINCIPAL AMOUNT COST VALUE --------- ---- ----- U.S. GOVERNMENT AGENCY OBLIGATIONS -- 12.2% FEDERAL HOME LOAN BANK -- 0.9% $1,250,000 3.250%, 08/15/05 ......$ 1,280,120 $ 1,280,883 ------------ ------------ FEDERAL HOME LOAN MORTGAGE CORP.-- 2.3% 1,750,000 3.500%, 09/15/07 ...... 1,782,317 1,810,231 750,000 3.250%, 02/25/08 ...... 747,653 754,897 750,000 6.625%, 09/15/09 ...... 859,841 875,176 ------------ ------------ 3,389,811 3,440,304 ------------ ------------ FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 9.0% 1,450,000 3.000%, 06/15/04 ...... 1,452,862 1,455,756 1,625,000 6.500%, 08/15/04 ...... 1,624,299 1,657,939 1,250,000 7.125%, 03/15/07 ...... 1,322,178 1,424,361 750,000 3.250%, 11/15/07 ...... 776,756 767,780 1,000,000 4.000%, 12/15/08 ...... 1,018,905 1,019,047 1,200,000 6.000%, 05/15/11 ...... 1,204,361 1,368,616 900,000 6.000%, 01/18/12 ...... 891,269 930,042 1,500,000 4.375%, 03/15/13 ...... 1,531,290 1,530,923 1,000,000 Zero Coupon, 05/12/04 . 998,861 998,861 1,000,000 Zero Coupon, 07/07/04 . 997,305 997,359 1,250,000 Zero Coupon, 06/01/04 . 1,247,882 1,247,945 ------------ ------------ 13,065,968 13,398,629 ------------ ------------ TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS .... 17,735,899 18,119,816 ------------ ------------ U.S. GOVERNMENT OBLIGATIONS -- 12.6% U.S. TREASURY BILLS -- 1.7% 2,500,000 U.S. Treasury Bills, 0.929% to 0.949%++, 04/22/04 to 06/03/04 .. 2,497,581 2,497,617 ------------ ------------ U.S. TREASURY NOTES -- 10.9% 2,150,000 2.250%, 07/31/04 ...... 2,150,822 2,159,492 2,000,000 5.750%, 11/15/05 ...... 2,046,864 2,139,922 2,725,000 3.500%, 11/15/06 ...... 2,729,228 2,841,134 2,800,000 6.125%, 08/15/07 ...... 2,961,516 3,160,940 2,500,000 5.750%, 08/15/10 ...... 2,838,259 2,871,095 2,750,000 5.000%, 08/15/11 ...... 2,793,128 3,031,124 ------------ ------------ 15,519,817 16,203,707 ------------ ------------ TOTAL U.S. GOVERNMENT OBLIGATIONS ........... 18,017,398 18,701,324 ------------ ------------ TOTAL INVESTMENTS -- 99.2% $131,340,210 147,215,970 ============ OTHER ASSETS AND LIABILITIES (NET) -- 0.8% ...................... 1,154,395 ------------ NET ASSETS -- 100.0% ................ $148,370,365 ============ -------------- For Federal tax purposes: Aggregate Cost ...................... $131,340,210 ============ Gross unrealized appreciation ....... $ 16,550,455 Gross unrealized depreciation ....... (674,695) ------------ Net unrealized appreciation ......... $ 15,875,760 ============ -------------- + Non-income producing security. ++ Represents annualized yield at date of purchase. See accompanying notes to financial statements. 4 THE GABELLI WESTWOOD INTERMEDIATE BOND FUND PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT COST VALUE --------- ---- ----- ASSET BACKED SECURITIES -- 2.3% $225,000 GS Mortgage Securities Corp. II, 97-GL Cl. A2D, 6.940%, 07/13/30 ......$ 231,523 $ 251,217 ------------ ------------ CORPORATE BONDS -- 43.4% COMPUTER HARDWARE -- 5.5% 325,000 Hewlett-Packard Co., 3.625%, 03/15/08 ...... 326,102 332,491 250,000 IBM Corp., 4.875%, 10/01/06 ...... 257,982 267,265 ------------ ------------ 584,084 599,756 ------------ ------------ DIVERSIFIED INDUSTRIAL -- 2.4% 250,000 General Electric Co., 5.000%, 02/01/13 ...... 253,314 262,236 ------------ ------------ ENERGY AND UTILITIES: OIL -- 6.5% 125,000 BP Capital Markets plc, 4.000%, 04/29/05 ...... 126,567 128,406 225,000 ChevronTexaco Corp., 3.375%, 02/15/08 ...... 226,366 230,667 125,000 Conoco Inc., 5.900%, 04/15/04 ...... 124,926 125,164 225,000 Occidental Petroleum, 4.250%, 03/15/10 ...... 225,000 230,929 ------------ ------------ 702,859 715,166 ------------ ------------ FINANCIAL SERVICES -- 18.7% 300,000 Bank of America Corp., 5.875%, 02/15/09 ...... 311,320 335,118 100,000 Bayerische Landesbank, 4.125%, 01/14/05 ...... 100,746 102,076 275,000 Bear Stearns Co. Inc., 2.875%, 07/02/08 ...... 272,590 271,963 225,000 Citigroup Inc., 6.500%, 01/18/11 ...... 252,648 260,012 300,000 Goldman Sachs Group Inc., 6.650%, 05/15/09 ...... 312,434 344,632 200,000 International Bank for Reconstruction & Development, 8.625%, 10/15/16 ...... 248,385 278,580 175,000 Merrill Lynch & Co., 5.000%, 02/03/14 ...... 174,570 179,568 275,000 Toyota Motor Credit Corp., 2.875%, 08/01/08 ...... 271,976 274,530 ------------ ------------ 1,944,669 2,046,479 ------------ ------------ FOOD AND BEVERAGE -- 2.3% 250,000 Anheuser-Busch Cos. Inc., 4.375%, 01/15/13 ...... 245,558 251,982 ------------ ------------ PRINCIPAL AMOUNT COST VALUE --------- ---- ----- REAL ESTATE INVESTMENT TRUSTS -- 1.5% $150,000 Archstone-Smith Trust, 7.200%, 03/01/13 ......$ 145,680 $ 171,856 ------------ ------------ RETAIL -- 5.2% 300,000 Neiman Marcus Group Inc., 6.650%, 06/01/08 ...... 317,127 335,865 200,000 Wal-Mart Stores, 6.875%, 08/10/09 ...... 211,855 234,984 ------------ ------------ 528,982 570,849 ------------ ------------ TELECOMMUNICATIONS -- 1.3% 125,000 Verizon Communications, 6.460%, 04/15/08 ...... 126,641 140,888 ------------ ------------ TOTAL CORPORATE BONDS .. 4,531,787 4,759,212 ------------ ------------ FOREIGN GOVERNMENT BONDS -- 4.8% 175,000 Canadian Global Bond, 6.750%, 08/28/06 ...... 176,004 195,237 325,000 Italy Global Bond, 2.500%, 03/31/06 ...... 325,510 330,376 ------------ ------------ TOTAL FOREIGN GOVERNMENT BONDS ...... 501,514 525,613 ------------ ------------ U.S. GOVERNMENT AGENCY OBLIGATIONS -- 30.4% FEDERAL HOME LOAN MORTGAGE CORP. -- 6.1% 250,000 5.500%, 07/15/06 ...... 259,975 270,036 250,000 3.250%, 02/25/08 ...... 249,218 251,632 150,000 5.125%, 08/20/12 ...... 149,072 151,944 ------------ ------------ 658,265 673,612 ------------ ------------ FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 23.9% 325,000 3.000%, 06/15/04 ...... 325,509 326,290 400,000 6.500%, 08/15/04 ...... 404,409 408,108 200,000 3.250%, 11/15/07 ...... 202,186 204,741 175,000 3.250%, 08/15/08 ...... 176,091 177,827 150,000 4.000%, 12/15/08 ...... 153,026 152,857 350,000 6.000%, 05/15/11 ...... 374,768 399,180 150,000 6.000%, 01/18/12 ...... 148,545 155,007 250,000 4.375%, 03/15/13 ...... 247,996 255,154 210,000 Zero Coupon, 04/07/04 . 209,966 209,966 125,000 Zero Coupon, 05/12/04 . 124,858 124,858 200,000 Zero Coupon, 06/25/04 . 199,532 199,542 ------------ ------------ 2,566,886 2,613,530 ------------ ------------ GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 0.4% 37,023 GNMA, Pool #580871, 6.500%, 12/15/31 ...... 37,168 39,105 ------------ ------------ TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS .... 3,262,319 3,326,247 ------------ ------------ See accompanying notes to financial statements. 5 THE GABELLI WESTWOOD INTERMEDIATE BOND FUND PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2004 (UNAUDITED) -------------------------------------------------------------------------------- PRINCIPAL AMOUNT COST VALUE --------- ---- ----- U.S. GOVERNMENT OBLIGATIONS -- 17.0% U.S. TREASURY BILLS -- 1.4% $150,000 U.S. Treasury Bill, 0.949%++, 04/22/04 ....$ 149,918 $ 149,918 ------------ ------------ U.S. TREASURY BONDS -- 9.2% 250,000 7.250%, 05/15/16 ...... 298,949 322,852 250,000 7.125%, 02/15/23 ...... 313,761 325,088 300,000 6.125%, 11/15/27 ...... 309,266 354,023 ------------ ------------ 921,976 1,001,963 ------------ ------------ U.S. TREASURY NOTES -- 6.4% 300,000 2.250%, 07/31/04 ...... 300,748 301,324 250,000 3.500%, 11/15/06 ...... 258,509 260,655 125,000 5.750%, 08/15/10 ...... 138,610 143,555 ------------ ------------ 697,867 705,534 ------------ ------------ TOTAL U.S. GOVERNMENT OBLIGATIONS ........... 1,769,761 1,857,415 ------------ ------------ SHARES COST VALUE ------ ---- ----- WARRANTS -- 0.0% ENERGY AND UTILITIES -- 0.0% 8 Forman Petroleum Corp., Series A, expire 01/14/07+ (a) ..$ 0 $ 0 25 Forman Petroleum Corp., Series B, expire 01/14/07+ (a) .. 0 1 25 Forman Petroleum Corp., Series C, expire 01/14/07+ (a) .. 0 0 25 Forman Petroleum Corp., Series D, expire 01/14/07+ (a) .. 0 0 ------------ ------------ 0 1 ------------ ------------ TOTAL WARRANTS ......... 0 1 ------------ ------------ TOTAL INVESTMENTS -- 97.9% ..$ 10,296,904 10,719,705 ============ OTHER ASSETS AND LIABILITIES (NET) -- 2.1% ....................... 234,869 ------------ NET ASSETS -- 100.0% .................$ 10,954,574 ============ -------------- For Federal tax purposes: Aggregate Cost .......................$ 10,296,904 ============ Gross unrealized appreciation ........$ 423,597 Gross unrealized depreciation ........ (796) ------------ Net unrealized appreciation ..........$ 422,801 ============ -------------- (a) Securities fair valued under procedures established by the Board of Trustees. The aggregate value of fair valued securities is $1 or 0.0% of net assets. See Note 2 to the financial statements. + Non-income producing security. ++ Represents annualized yield at date of purchase. See accompanying notes to financial statements. 6 THE GABELLI WESTWOOD SMALLCAP EQUITY FUND PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) -------------------------------------------------------------------------------- SHARES COST VALUE ------ ---- ----- COMMON STOCKS -- 92.1% AUTOMOTIVE -- 0.9% 6,500 China Yuchai International Ltd. ....$ 196,580 $ 130,065 ------------ ------------ BROADCASTING -- 1.1% 8,100 Radio One Inc., Cl. D+ . 129,588 149,850 ------------ ------------ BUSINESS SERVICES -- 3.8% 10,100 Digital Insight Corp.+ . 210,683 209,272 17,400 Euronet Worldwide Inc.+ 323,583 330,774 ------------ ------------ 534,266 540,046 ------------ ------------ COMPUTER SOFTWARE AND SERVICES -- 15.6% 8,100 Altiris Inc.+ .......... 256,967 226,314 4,200 Anteon International Corp.+ ................ 103,688 121,338 5,400 Avocent Corp.+ ......... 201,035 198,666 7,300 Digitalnet Holding Inc.+ 155,912 148,920 17,500 Epicor Software Corp.+ . 278,587 232,225 9,100 eResearch Technology Inc.+ ................. 280,818 255,255 11,600 Magma Design Automation Inc.+ ................. 288,421 242,556 7,900 Micros Systems Inc.+ ... 339,230 356,685 14,300 Omnicell Inc.+ ......... 285,770 283,283 7,400 Sonic Solutions+ ....... 156,799 140,304 ------------ ------------ 2,347,227 2,205,546 ------------ ------------ CONSUMER PRODUCTS -- 4.1% 10,700 Deckers Outdoor Corp.+ . 237,399 277,665 12,200 K-Swiss Inc. ........... 244,029 298,534 ------------ ------------ 481,428 576,199 ------------ ------------ DIVERSIFIED INDUSTRIAL -- 6.5% 11,800 Amcol International Corp. 228,808 205,910 3,600 Briggs & Stratton Corp. 221,989 242,892 7,300 Ceradyne Inc.+ ......... 213,339 263,895 14,300 JLG Industries Inc. .... 226,059 204,490 ------------ ------------ 890,195 917,187 ------------ ------------ ELECTRONICS -- 14.1% 21,800 Aeroflex Inc.+ ......... 334,356 293,428 14,600 August Technology Corp.+ 295,130 219,000 7,300 Engineered Support Systems Inc. .......... 343,397 356,167 9,800 FARO Technologies Inc.+ ................. 276,097 225,106 5,800 International Rectifier Corp.+ ................ 125,682 266,742 11,800 OmniVision Technologies Inc.+ ................. 312,496 322,258 14,800 Ultralife Batteries Inc.+ ................. 273,103 315,684 ------------ ------------ 1,960,261 1,998,385 ------------ ------------ ENERGY AND UTILITIES -- 5.5% 6,300 Evergreen Resources Inc.+ ................. 167,245 216,405 6,100 Houston Exploration Co.+ .................. 190,451 272,853 3,000 Quicksilver Resources Inc.+ ................. 73,156 116,280 8,930 Southern Union Co.+ .... 141,630 169,223 ------------ ------------ 572,482 774,761 ------------ ------------ EQUIPMENT AND SUPPLIES -- 2.9% 9,000 Middleby Corp. ......... 304,336 411,120 ------------ ------------ FOOD AND BEVERAGE -- 3.7% 6,200 CBRL Group Inc. ........ 231,437 245,768 8,700 Central European Distribution Corp.+ ... 290,261 281,358 ------------ ------------ 521,698 527,126 ------------ ------------ SHARES COST VALUE ------ ---- ----- HEALTH CARE -- 8.0% 14,600 Abaxis Inc.+ ...........$ 292,955 $ 295,650 10,600 American Healthways Inc.+ ................. 295,457 258,852 8,900 Merit Medical Systems Inc.+ ................. 214,548 192,596 3,200 Quality Systems Inc.+ .. 139,811 145,376 9,900 USANA Health Sciences Inc.+ ................. 310,129 230,967 ------------ ------------ 1,252,900 1,123,441 ------------ ------------ HEALTH CARE: PHARMACEUTICALS -- 5.2% 9,500 Bradley Pharmaceuticals Inc.+ ................. 198,201 239,210 11,900 K-V Pharmaceutical Co., Cl. A+ ................ 296,229 292,264 4,900 Kos Pharmaceuticals Inc.+ ................. 150,929 199,626 ------------ ------------ 645,359 731,100 ------------ ------------ HOTELS AND GAMING -- 3.6% 10,800 Shuffle Master Inc.+ ... 383,437 502,092 ------------ ------------ RETAIL -- 10.4% 8,500 Aeropostale Inc.+ ...... 255,952 308,210 9,900 First Cash Financial Services Inc.+ ........ 220,863 332,937 9,550 Hot Topic Inc.+ ........ 164,059 252,598 6,600 The Sports Authority Inc.+ ................. 193,313 264,528 6,600 Urban Outfitters Inc.+ . 251,006 317,196 ------------ ------------ 1,085,193 1,475,469 ------------ ------------ TELECOMMUNICATIONS -- 3.1% 8,700 Comtech Telecommunications Corp.+ ................ 276,926 201,840 8,400 UTStarcom Inc.+ ........ 305,634 241,584 ------------ ------------ 582,560 443,424 ------------ ------------ TRANSPORTATION -- 2.1% 13,500 SCS Transportation Inc.+ 203,315 294,300 ------------ ------------ WIRELESS COMMUNICATIONS -- 1.5% 15,700 California Amplifier Inc.+ ................. 235,499 210,066 ------------ ------------ TOTAL COMMON STOCKS .... 12,326,324 13,010,177 ------------ ------------ FOREIGN COMMON STOCKS -- 3.8% ELECTRONICS -- 1.7% 9,700 Nam Tai Electronics Inc. 295,938 246,477 ------------ ------------ HEALTH CARE -- 2.1% 11,400 QLT Inc.+ .............. 270,144 291,156 ------------ ------------ TOTAL FOREIGN COMMON STOCKS ......... 566,082 537,633 ------------ ------------ TOTAL INVESTMENTS -- 95.9 ...$ 2,892,406 13,547,810 ============ OTHER ASSETS AND LIABILITIES (NET) -- 4.1% ....................... 580,406 ------------ NET ASSETS -- 100.0% .................$ 14,128,216 ============ --------------- For Federal tax purposes: Aggregate Cost .......................$ 12,892,406 ============ Gross unrealized appreciation ........$ 1,477,249 Gross unrealized depreciation ........ (821,845) ------------ Net unrealized appreciation ..........$ 655,404 ============ --------------- + Non-income producing security. See accompanying notes to financial statements. 7 THE GABELLI WESTWOOD REALTY FUND PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) -------------------------------------------------------------------------------- SHARES COST VALUE ------ ---- ----- COMMON STOCKS -- 93.2% APARTMENTS -- 11.5% 5,200 Apartment Investment & Management Co., Cl. A .$ 189,204 $ 161,668 12,082 Archstone-Smith Trust .. 297,315 356,540 3,000 Avalonbay Communities Inc. .................. 137,908 160,740 5,400 Camden Property Trust .. 190,114 242,730 8,600 Equity Residential ..... 222,796 256,710 3,500 Home Properties of New York Inc. ............. 114,790 142,625 4,700 Mid-America Apartment Communities Inc. ...... 117,996 174,511 8,700 Post Properties Inc. ... 226,434 250,560 17,600 United Dominion Realty Trust Inc. ............ 276,957 345,312 ------------ ------------ 1,773,514 2,091,396 ------------ ------------ COMMERCIAL OFFICE -- 1.3% 6,300 Prentiss Properties Trust ................. 180,715 232,470 ------------ ------------ DIVERSIFIED PROPERTY -- 13.4% 16,268 Catellus Development Corp. ................. 363,098 423,131 3,600 Colonial Properties Trust 113,522 146,880 12,366 Duke Realty Corp. ...... 321,605 429,347 8,300 First Potomac Realty Trust ................. 167,458 173,470 6,400 Getty Realty Corp. ..... 125,441 170,048 7,700 Lexington Corporate Properties Trust ...... 128,745 167,783 7,800 Liberty Property Trust . 237,814 351,000 4,100 Tejon Ranch Co.+ ....... 124,544 151,536 7,100 Vornado Realty Trust ... 290,434 429,408 ------------ ------------ 1,872,661 2,442,603 ------------ ------------ FINANCIAL SERVICES -- 1.8% 8,600 American Financial Realty Trust .......... 107,500 145,770 6,700 Friedman, Billings, Ramsey Group Inc. ............ 168,651 180,833 ------------ ------------ 276,151 326,603 ------------ ------------ HEALTH CARE -- 3.0% 12,700 Health Care Property Investors Inc. ........ 238,926 359,410 5,500 Universal Health Realty Income Trust .......... 146,018 185,350 ------------ ------------ 384,944 544,760 ------------ ------------ HOTELS -- 3.7% 3,800 Hospitality Properties Trust ................. 117,368 176,320 8,300 Lasalle Hotel Properties 162,774 195,880 7,400 Starwood Hotels & Resorts Worldwide Inc. ........ 181,779 299,700 ------------ ------------ 461,921 671,900 ------------ ------------ INDUSTRIAL PROPERTY -- 8.1% 6,600 AMB Property Corp. ..... 182,938 245,322 4,200 CenterPoint Properties Trust ................. 239,780 346,500 4,800 Eastgroup Properties, Inc. .................. 166,002 170,400 20,100 ProLogis ............... 497,650 720,987 ------------ ------------ 1,086,370 1,483,209 ------------ ------------ MANUFACTURED HOMES -- 1.4% 7,100 Manufactured Home Communities Inc. 219,266 250,630 ------------ ------------ SHARES COST VALUE ------ ---- ----- OFFICE PROPERTY -- 16.1% 2,700 Alexandria Real Estate Equities Inc. .........$ 114,705 $ 170,100 4,700 Arden Realty Inc. ...... 115,048 151,951 8,200 Boston Properties Inc. . 332,355 445,342 5,300 Brandywine Realty Trust 115,781 161,915 5,400 CarrAmerica Realty Corp. 155,321 183,060 7,300 Corporate Office Properties Trust ...... 102,798 182,500 7,900 Cousins Properties Inc. 203,879 259,041 9,100 Crescent Real Estate Equities Co. .......... 150,620 163,527 16,884 Equity Office Properties Trust ...... 464,043 487,779 5,500 Highwoods Properties Inc. .................. 125,974 144,155 7,300 Koger Equity Inc. ...... 167,316 171,331 5,200 Mack-Cali Realty Corp. . 161,467 233,532 7,100 Maguire Properties Inc. 178,914 181,760 ------------ ------------ 2,388,221 2,935,993 ------------ ------------ PAPER AND FOREST PRODUCTS -- 3.4% 11,200 Plum Creek Timber Co. Inc. .................. 255,084 363,776 6,088 Rayonier Inc. .......... 234,279 266,107 ------------ ------------ 489,363 629,883 ------------ ------------ PUBLIC STORAGE -- 2.3% 5,200 Public Storage Inc. .... 181,823 253,032 4,100 Sovran Self Storage Inc. 115,724 171,257 ------------ ------------ 297,547 424,289 ------------ ------------ SHOPPING CENTERS -- 27.2% 2,900 CBL & Associates Properties Inc. ....... 105,112 177,886 4,500 Chelsea Property Group Inc. ............ 154,856 283,230 9,381 Developers Diversified Realty Corp. .......... 222,792 378,992 15,700 General Growth Properties Inc. ....... 279,814 551,855 5,800 Heritage Property Investment Trust ...... 165,587 180,380 8,750 Kimco Realty Corp. ..... 292,098 446,075 3,700 Macerich Co. ........... 109,638 199,430 5,200 Mills Corp. ............ 181,738 277,108 4,900 Pan Pacific Retail Properties Inc. ....... 142,052 255,290 8,800 Ramco-Gershenson Properties Trust ...... 173,488 248,160 4,900 Realty Income Corporation ........... 203,528 218,785 8,000 Regency Centers Corp. 247,376 373,840 12,700 Simon Property Group Inc. ............ 414,891 742,188 7,000 Taubman Centers Inc. ... 132,062 176,190 12,975 Weingarten Realty Investors ............. 308,756 448,935 ------------ ------------ 3,133,788 4,958,344 ------------ ------------ TOTAL COMMON STOCKS .... 12,564,461 16,992,080 ------------ ------------ TOTAL INVESTMENTS -- 93.2% ..$ 12,564,461 16,992,080 ============ OTHER ASSETS AND LIABILITIES (NET) -- 6.8% ...................... 1,234,144 ------------ NET ASSETS -- 100.0% ................ $ 18,226,224 ============ --------------- For Federal tax purposes: Aggregate Cost ...................... $ 12,564,461 ============ Gross unrealized appreciation ....... $ 4,455,156 Gross unrealized depreciation ....... (27,537) ------------ Net unrealized appreciation ......... $ 4,427,619 ============ --------------- + Non-income producing security. See accompanying notes to financial statements. 8 THE GABELLI WESTWOOD MIGHTY MITES SM FUND PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) -------------------------------------------------------------------------------- SHARES COST VALUE ------ ---- ----- COMMON STOCKS -- 88.5% AUTOMOTIVE: PARTS AND ACCESSORIES -- 5.7% 100,000 Midas Inc.+ ............$ 1,289,410 $ 1,945,000 500 Puradyn Filter Technologies Inc.+ .... 1,250 1,070 51,000 Scheib (Earl) Inc.+ .... 250,790 146,625 48,100 Standard Motor Products Inc. ......... 551,669 754,208 159,000 TransPro Inc.+ ......... 730,359 795,000 ------------ ------------ 2,823,478 3,641,903 ------------ ------------ AVIATION: PARTS AND SERVICES -- 1.7% 5,000 Aviall Inc.+ ........... 50,845 76,000 5,000 CPI Aerostructures Inc.+ 49,118 49,400 2,000 Curtiss-Wright Corp., Cl. B ................. 43,050 91,340 145,000 Fairchild Corp., Cl. A+ 739,108 722,100 12,000 Kaman Corp., Cl. A ..... 155,265 179,160 ------------ ------------ 1,037,386 1,118,000 ------------ ------------ BROADCASTING -- 4.8% 60,000 Acme Communications Inc.+ ................. 364,898 470,700 32,500 Beasley Broadcast Group Inc., Cl. A+ ................ 339,866 572,000 36,000 Crown Media Holdings Inc., Cl. A+ .......... 201,517 291,240 20,000 Granite Broadcasting Corp.+ ................ 76,113 33,400 34,500 Gray Television Inc. ... 368,821 504,390 90,000 Paxson Communications Corp.+ ................ 352,036 351,000 12,000 Salem Communications Corp., Cl. A+ ................ 239,404 328,560 30,000 Young Broadcasting Inc., Cl. A+ ................ 288,879 543,000 ------------ ------------ 2,231,534 3,094,290 ------------ ------------ BUILDING AND CONSTRUCTION -- 8.9% 65,100 Cavalier Homes Inc.+ ... 336,339 341,775 47,000 Cavco Industries Inc.+ . 1,754,534 1,731,950 40,000 Eagle Supply Group Inc.+ 53,438 78,000 10,907 Homasote Co.+ .......... 85,994 82,075 5,000 Huttig Building Products Inc.+ ........ 17,126 25,000 5,000 Modtech Holdings Inc.+ . 36,150 37,050 2,400 Monarch Cement Co. ..... 43,256 50,220 8,600 Nobility Homes Inc. .... 129,751 136,826 5,000 Palm Harbor Homes Inc.+ 104,950 104,800 66,800 Skyline Corp. .......... 2,222,659 2,576,476 143,000 Southern Energy Homes Inc.+ ........... 512,317 536,250 ------------ ------------ 5,296,514 5,700,422 ------------ ------------ BUSINESS SERVICES -- 2.5% 28,000 ANC Rental Corp.+ ...... 840 3 80,100 Edgewater Technology Inc.+ ................. 308,396 580,725 2,000 GP Strategies Corp.+ ... 7,650 13,780 20,000 Information Resources Inc.+ ................. 32,400 66,400 85,000 Interep National Radio Sales Inc., Cl. A+ ................ 330,110 161,500 47,000 Nashua Corp.+ .......... 326,960 403,260 804 National Stock Yards Co.+ ............ 80,700 129,042 1,000 Paxar Corp.+ ........... 14,450 14,750 10,000 PubliCard Inc.+ 14,435 450 SHARES COST VALUE ------ ---- ----- 4,000 Roto-Rooter Inc. .......$ 144,027 $ 202,200 1,000 StarTek Inc. ........... 17,895 36,340 ------------ ------------ 1,277,863 1,608,450 ------------ ------------ CABLE -- 0.2% 90,000 Adelphia Communications Corp., Cl. A+ ................ 15,750 74,700 1,000 Outdoor Channel Holdings Inc.+ ........ 24,825 39,375 ------------ ------------ 40,575 114,075 ------------ ------------ CLOSED END FUNDS -- 0.0% 500 MVC CAPITAL+ ........... 4,255 4,250 ------------ ------------ COMMUNICATIONS EQUIPMENT -- 0.2% 3,000 Andrew Corp.+ .......... 10,240 52,500 8,000 Communications Systems Inc. .......... 69,033 69,840 ------------ ------------ 79,273 122,340 ------------ ------------ COMPUTER SOFTWARE AND SERVICES -- 2.0% 23,881 Gemplus International SA+ ................... 10,945 53,412 3,000 iVillage Inc.+ ......... 2,520 20,640 20,000 Mobius Management Systems Inc.+ ......... 192,402 182,600 500,000 Net Perceptions Inc.+ .. 204,900 200,000 850,000 StorageNetworks Inc. Escrow+ ............... 0 25,500 60,000 Tyler Technologies Inc.+ 235,322 582,600 40,000 Vitria Technology Inc.+ 244,692 235,240 ------------ ------------ 890,781 1,299,992 ------------ ------------ CONSUMER PRODUCTS -- 5.5% 6,000 American Locker Group Inc.+ ........... 75,694 66,240 30,000 CNS Inc. ............... 370,153 322,200 15,000 Del Laboratories Inc.+ . 298,062 498,000 17,000 Ducati Motor Holding SpA+ 258,245 275,825 6,910 Levcor International Inc.+ ................. 25,443 19,348 4,500 Marine Products Corp. .. 6,913 62,955 35,000 Marzotto SpA ........... 275,627 402,586 7,500 National Presto Industries Inc. ....... 223,938 290,700 41,530 Syratech Corp.+ (a) .... 10,383 14,535 23,100 Water Pik Technologies Inc.+ ................. 196,444 325,479 268,000 Weider Nutrition International Inc.+ ... 498,691 1,270,320 ------------ ------------ 2,239,593 3,548,188 ------------ ------------ CONSUMER SERVICES -- 0.1% 6,000 Collectors Universe Inc.+ 21,104 74,634 ------------ ------------ DIVERSIFIED INDUSTRIAL -- 3.6% 10,200 Ampco-Pittsburgh Corp. . 118,479 131,682 101,500 Harbor Global Co. Ltd.+ 504,865 1,040,375 64,000 Katy Industries Inc.+ .. 306,659 383,360 35,000 Lamson & Sessions Co.+ . 154,961 197,750 2,000 Lindsay Manufacturing Co. 39,765 48,160 35,000 Pinguely-Haulotte ...... 187,156 229,680 9,250 RWC Inc.+ .............. 251,315 92,500 22,000 Tech/Ops Sevcon Inc. ... 122,265 144,100 7,666 WHX Corp.+ ............. 34,374 22,692 ------------ ------------ 1,719,839 2,290,299 ------------ ------------ See accompanying notes to financial statements. 9 THE GABELLI WESTWOOD MIGHTY MITES SM FUND PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2004 (UNAUDITED) -------------------------------------------------------------------------------- SHARES COST VALUE ------ ---- ----- COMMON STOCKS (CONTINUED) EDUCATIONAL SERVICES -- 0.6% 15,000 Concorde Career Colleges Inc.+ ........$ 338,205 $ 360,000 10,000 ProsoftTraining.com+ ... 22,440 4,800 ------------ ------------ 360,645 364,800 ------------ ------------ ELECTRONICS -- 1.2% 25,000 CTS Corp. .............. 201,432 326,000 2,000 Fargo Electronics+ ..... 11,283 22,600 6,500 George Risk Industries Inc.+ ................. 22,460 35,750 5,600 Lab-Volt Systems Inc.+ . 31,800 33,600 5,300 Lowrance Electronics Inc.+ ................. 18,582 115,699 15,000 Zoran Corp.+ ........... 126,729 260,400 ------------ ------------ 412,286 794,049 ------------ ------------ ENERGY AND UTILITIES: ELECTRIC -- 2.3% 40,000 British Energy PLC+ .... 3,200 5,072 10,000 El Paso Electric Co.+ .. 83,914 138,400 24,600 Green Mountain Power Corp. ........... 517,311 636,402 10,000 Maine & Maritimes Corp. 221,400 341,500 13,700 Unitil Corp. ........... 353,045 379,764 ------------ ------------ 1,178,870 1,501,138 ------------ ------------ ENERGY AND UTILITIES: INTEGRATED -- 2.0% 36,776 Aquila Inc.+ ........... 176,851 173,215 21,300 Florida Public Utilities Co. ......... 276,065 436,650 20,000 MGE Energy Inc. ........ 605,472 617,000 95,200 Progress Energy Inc., CVO+ ............ 10,472 29,512 ------------ ------------ 1,068,860 1,256,377 ------------ ------------ ENERGY AND UTILITIES: NATURAL GAS -- 4.5% 3,000 Cascade Natural Gas Corp. ............. 60,916 65,370 19,700 Chesapeake Utilities Corp. ................. 401,845 504,714 16,014 Corning Natural Gas Corp. ............. 266,784 216,189 18,200 Delta Natural Gas Co. Inc. .............. 374,607 460,278 26,000 NUI Corp. .............. 483,793 439,660 31,200 Petrocorp Escrow Shares+ ............... 0 1,872 10,000 Petroleum Development Corp.+ ................ 150,100 286,500 19,500 RGC Resources Inc. ..... 418,026 457,860 10,500 South Jersey Industries Inc. ....... 327,733 429,555 ------------ ------------ 2,483,804 2,861,998 ------------ ------------ ENERGY AND UTILITIES: SERVICES -- 0.1% 19 Petroleum Geo-Services ASA, ADR+ ............. 14,592 887 6,000 RPC Inc. ............... 35,742 66,840 ------------ ------------ 50,334 67,727 ------------ ------------ ENERGY AND UTILITIES: WATER -- 1.5% 10,950 Artesian Resources Corp., Cl. A .......... 176,619 309,119 1,500 BIW Ltd. ............... 27,265 29,400 2,760 California Water Service Group ......... 61,330 78,080 1,000 Consolidated Water Co. Ltd. .............. 7,500 18,740 14,666 Middlesex Water Co. .... 251,385 303,586 7,200 SJW Corp. .............. 164,227 249,552 ------------ ------------ 688,326 988,477 ------------ ------------ SHARES COST VALUE ------ ---- ----- ENTERTAINMENT -- 2.5% 10,500 Canterbury Park Holding Corp. .........$ 95,240 $ 200,550 15,000 Dover Motorsports Inc. . 63,411 57,750 12,500 Fisher Communications Inc.+ ................. 568,502 609,375 41,000 Fox Kids Europe NV+ .... 327,667 447,416 45,000 GC Companies Inc.+ ..... 67,956 20,925 30,500 Integrity Media Inc.+ .. 190,557 193,370 4,000 LodgeNet Entertainment Corp.+ ................ 44,021 76,000 ------------ ------------ 1,357,354 1,605,386 ------------ ------------ ENVIRONMENTAL SERVICES -- 0.3% 25,000 Trojan Technologies Inc.+ ................. 144,102 160,738 ------------ ------------ EQUIPMENT AND SUPPLIES -- 7.1% 188,000 Baldwin Technology Co. Inc., Cl. A+ .......... 352,039 545,200 15,000 Capstone Turbine Corp.+ 27,450 37,050 101,500 Core Molding Technologies Inc.+ ................. 235,385 411,075 6,500 Eastern Co. ............ 107,809 104,000 190,000 Fedders Corp. .......... 1,370,260 1,084,900 10,000 Gerber Scientific Inc.+ 33,933 68,000 8,500 Gildemeister AG ........ 80,468 80,744 72,400 Maezawa Kyuso Industries Co. Ltd. .............. 388,915 822,577 19,100 Mine Safety Appliances Co. ........ 279,303 541,676 45,000 Raytech Corp.+ ......... 159,123 129,600 170,000 Selas Corp. of America . 531,751 479,400 24,600 SL Industries Inc.+ .... 216,452 239,850 1,000 SRS Labs Inc.+ ......... 5,500 6,080 1,100 Watts Water Technologies Inc., Cl. A ................. 16,825 25,729 ------------ ------------ 3,805,213 4,575,881 ------------ ------------ FINANCIAL SERVICES -- 8.2% 9,700 Berkshire Bancorp Inc. . 334,307 565,801 15,900 BKF Capital Group Inc. . 375,063 410,220 11,000 Crazy Woman Creek Bancorp Inc. .......... 143,391 192,500 1,400 Danielson Holding Corp.+ 7,050 13,034 5,500 Fidelity Southern Corp. 44,340 81,180 37,500 Flushing Financial Corp. 558,094 678,750 10 Guaranty Corp., Cl. A+ . 137,500 130,300 5,933 Hanmi Financial Corporation ........... 87,821 157,759 420,000 J Net Enterprises Inc.+ 462,378 592,200 7,500 Northrim Bancorp Inc. .. 165,425 192,000 6,390 Parish National Bank of Bogalusa+ .......... 234,128 337,775 3,500 Patriot National Bancorp 53,665 52,990 2,000 PennFed Financial Services Inc. ......... 69,987 70,720 22,200 Resource Bankshares Corp. ................. 269,039 723,720 13,000 Seacoast Banking Corp. of Florida ............ 228,086 269,100 1,200 Sunwest Bank+ .......... 87,220 117,600 20,000 SWS Group Inc. ......... 356,945 358,200 4,000 Synergy Financial . Group Inc.+ ........... 41,720 41,160 500 TIB Financial Corp. .... 7,780 10,665 10,000 Wilshire State Bank+ ... 166,465 239,598 ------------ ------------ 3,830,404 5,235,272 ------------ ------------ See accompanying notes to financial statements. 10 THE GABELLI WESTWOOD MIGHTY MITES SM FUND PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2004 (UNAUDITED) -------------------------------------------------------------------------------- SHARES COST VALUE ------ ---- ----- COMMON STOCKS (CONTINUED) FOOD AND BEVERAGE -- 2.2% 15,000 Boston Beer Co. Inc., Cl. A+ ................$ 174,012 $ 276,300 4,000 Genesee Corp., Cl. A+ .. 19,980 14,400 30,100 Genesee Corp., Cl. B+ .. 81,364 108,360 4,000 J & J Snack Foods Corp.+ 111,849 180,720 11,000 Lifeway Foods Inc.+ .... 78,614 234,300 20,000 MGP Ingredients Inc. ... 192,573 508,800 20,000 Northland Cranberries Inc., Cl. A+ .......... 15,400 17,400 1,000 Poore Brothers Inc.+ ... 2,660 3,190 5,000 Todhunter International Inc.+ ................. 53,388 60,000 ------------ ------------ 729,840 1,403,470 ------------ ------------ HEALTH CARE -- 13.2% 6,200 Arkopharma ............. 267,040 363,052 12,000 Biosite Inc.+ .......... 369,240 383,640 16,000 Boiron SA .............. 257,514 374,567 7,000 Bruker BioSciences Corp.+ ................ 27,970 35,070 89,700 Cholestech Corp.+ ...... 690,520 789,360 100,000 Del Global Technologies Corp.+ ................ 215,065 202,000 15,100 Exactech Inc.+ ......... 233,128 277,840 11,000 ICU Medical Inc.+ ...... 378,710 334,070 65,000 Interpore International Inc.+ ................. 773,390 934,700 24,000 Kensey Nash Corp.+ ..... 511,939 591,600 139,800 Lifecore Biomedical Inc.+ ................. 1,011,260 1,048,500 22,125 Neogen Corp.+ .......... 243,486 408,427 2,500 NMT Medical Inc.+ ...... 7,858 12,150 10,000 NWH Inc. ............... 192,040 201,000 4,000 Orthofix International . NV+ ................... 108,404 197,760 41,000 Regeneration Technologies Inc.+ ................. 370,154 465,350 36,000 Schick Technologies Inc.+ 286,001 361,800 30,000 Thoratec Corp.+ ........ 403,020 374,700 2,000 Tutogen Medical Inc.+ .. 10,180 8,400 210,000 VitalWorks Inc.+ ....... 1,089,645 787,500 6,000 Women First HealthCare Inc.+ ................. 4,875 1,080 8,100 Young Innovations Inc. . 218,297 284,229 ------------ ------------ 7,669,736 8,436,795 ------------ ------------ HOTELS AND GAMING -- 0.6% 9,000 Boca Resorts Inc., Cl. A+ ................ 120,840 157,050 12,000 Dover Downs Gaming & Entertainment Inc. .... 113,503 128,520 29 Fair Grounds Corp.+ .... 177,460 92,872 2,000 Florida Gaming Corp.+ .. 6,950 6,750 ------------ ------------ 418,753 385,192 ------------ ------------ METALS AND MINING -- 0.0% 615,000 Royal Oak Mines Inc.+ .. 2,314 3,075 ------------ ------------ PAPER AND FOREST PRODUCTS -- 0.3% 16,300 Packaging Dynamics Corp. 120,625 216,138 ------------ ------------ PUBLISHING -- 1.3% 85,000 PRIMEDIA Inc.+ ......... 145,515 229,500 18,400 Thomas Nelson Inc. ..... 187,804 500,848 4,000 William H. Sadlier Inc. 112,000 115,000 ------------ ------------ 445,319 845,348 ------------ ------------ SHARES COST VALUE ------ ---- ----- REAL ESTATE -- 1.5% 2,508 Biloxi Marsh Lands Corp. .................$ 20,624 $ 126,654 28,617 Calcasieu Real Estate & Oil Co. Inc.+ ......... 181,018 250,399 2,500 Capital Properties Inc., Cl. A ................. 32,625 32,075 50 Case Pomeroy & Co. Inc., Cl. A ................. 58,825 70,000 50 Case Pomeroy & Co. Inc., Cl. B ................. 58,825 65,000 500 Consolidated-Tomoka Land Co. .............. 10,520 18,560 7,100 Griffin Land & Nurseries Inc.+ ....... 94,440 180,340 7,000 Gyrodyne Company of America Inc.+ ......... 112,667 192,465 2,508 Royalty Ll+ ............ 0 0 ------------ ------------ 569,544 935,493 ------------ ------------ RETAIL -- 0.4% 400 Cole National Corp.+ ... 8,784 8,828 4,000 CoolBrands International Inc.+ ................. 5,397 69,576 5,000 Movado Group Inc. ...... 141,146 149,700 8,000 Sport Supply Group Inc. 10,250 9,600 ------------ ------------ 165,577 237,704 ------------ ------------ SPECIALTY CHEMICALS -- 1.1% 267,226 General Chemical Group Inc.+ ........... 59,859 44,092 1,000 KMG Chemicals, Inc. .... 3,270 4,200 30,000 Material Sciences Corp.+ 328,876 330,000 60,000 Omnova Solutions Inc.+ . 333,726 315,000 ------------ ------------ 725,731 693,292 ------------ ------------ TELECOMMUNICATIONS -- 1.7% 32,540 ATX Communications Inc.+ 68,495 6,833 8,260 Community Service Communications Inc.+ .. 0 16,933 25,896 D&E Communications Inc. 290,401 362,285 80 Horizon Telecom Inc.+ (a) 9,250 8,280 339 Horizon Telecom Inc., Cl. B+ (a) ............ 39,073 35,087 2,000 Lexcom Inc., Cl. B+ .... 106,355 107,000 6,876 New Ulm Telecom Inc. ... 70,690 62,400 1,302 NTL Inc.+ .............. 48,622 77,404 10,000 PNV Inc.+ .............. 3 3 6,600 Shenandoah Telecommunications Co. ................... 101,736 150,810 10,000 Stratos International Inc.+ ................. 38,124 58,300 1,000 SureWest Communications 26,664 26,790 50,000 Sycamore Networks Inc.+ 164,231 204,000 ------------ ------------ 963,644 1,116,125 ------------ ------------ TRANSPORTATION -- 0.6% 10,800 Old Dominion Freight Line Inc.+ ............ 230,668 363,960 ------------ ------------ WIRELESS COMMUNICATIONS -- 0.1% 20,000 Leap Wireless International Inc.+ ... 7,200 740 10,000 Rural Cellular Corp., Cl. A+ ................ 8,700 95,700 ------------ ------------ 15,900 96,440 ------------ ------------ TOTAL COMMON STOCKS .... 45,100,044 56,761,718 ------------ ------------ See accompanying notes to financial statements. 11 THE GABELLI WESTWOOD MIGHTY MITES SM FUND PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2004 (UNAUDITED) -------------------------------------------------------------------------------- SHARES COST VALUE ------ ---- ----- PREFERRED STOCKS -- 1.5% AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.8% 22,000 Jungheinerich AG Pfd. ..$ 178,557 $ 492,049 ------------ ------------ BROADCASTING -- 0.5% 532 Granite Broadcasting Corp., 12.750% Pfd.+ ......... 224,996 287,280 ------------ ------------ DIVERSIFIED INDUSTRIAL -- 0.2% 22,000 WHX Corp., $3.75 Cv. Pfd., Ser. B+ ............... 112,890 155,540 ------------ ------------ TOTAL PREFERRED STOCKS . 516,443 934,869 ------------ ------------ CONVERTIBLE PREFERRED STOCKS -- 1.1% BUSINESS SERVICES -- 1.0% 6,236 Interep National Radio Sales Inc., 4.000% Cv. Pfd., Ser. A (a)(b) ......... 624,000 636,072 ------------ ------------ DIVERSIFIED INDUSTRIAL -- 0.1% 5,500 WHX Corp., 6.500% Cv. Pfd., Ser. A+ ............... 33,640 41,250 ------------ ------------ TOTAL CONVERTIBLE PREFERRED STOCKS ...... 657,640 677,322 ------------ ------------ WARRANTS -- 0.0% BUILDING AND CONSTRUCTION -- 0.0% 400 Eagle Supply Group Inc., expire 03/15/04+ ...... 450 56 ------------ ------------ BUSINESS SERVICES -- 0.0% 1,666 Avalon Digital Marketing Systems Inc., Warrants expire 11/11/11+ (a) ......... 0 0 37,500 Interep National Radio Sales Inc.,+ (a) ...... 0 0 ------------ ------------ 0 0 ------------ ------------ TELECOMMUNICATIONS -- 0.0% 2,000 Microcell Telecommunications Inc., Warrants Expire 05/01/05+ ............. 1,000 9,116 3,333 Microcell Telecommunications Inc., Warrants Expire 05/01/08+ ............. 2,766 17,752 78 Motient Corp. Warrants Expire 05/01/04+ ............. 24 9 ------------ ------------ 3,790 26,877 ------------ ------------ TOTAL WARRANTS 4,240 26,933 ------------ ------------ PRINCIPAL AMOUNT COST VALUE ------ ---- ----- U.S. GOVERNMENT OBLIGATIONS -- 11.0% U.S. TREASURY BILLS -- 11.0% $7,083,000 U.S. Treasury Bills, 0.889% to 0.968%++, 04/08/04 to 08/26/04 ..$ 7,075,642 $ 7,075,700 ------------ ------------ TOTAL U.S. GOVERNMENT OBLIGATIONS ........... 7,075,642 7,075,700 ------------ ------------ TOTAL INVESTMENTS -- 102.1% .$ 53,354,009 65,476,542 ============ OTHER ASSETS AND LIABILITIES (NET) -- (2.1)% ..................... (1,328,974) ------------ NET ASSETS -- 100.0% .................$ 64,147,568 ============ --------------- For Federal tax purposes: Aggregate Cost .......................$ 53,354,009 ============ Gross unrealized appreciation ........$ 13,919,342 Gross unrealized depreciation ........ (1,796,809) ------------ Net unrealized appreciation ..........$ 12,122,533 ============ --------------- (a) Security fair valued under procedures established by the Board of Trustees. The aggregate value of fair valued securities is $693,974 or 1.08% of net assets. See Note 2 to the financial statements. (b) This security is restricted as to resale, but is convertible into registered common stock, and has been fair valued under procedures established by the Board of Trustees since its purchase on May 3, 2002. A dividend was paid in kind on May 1, 2003 of 236 shares. + Non-income producing security. ++ Represents annualized yield at date of purchase. ADR - American Depository Receipt. See accompanying notes to financial statements. 12 THE GABELLI WESTWOOD FUNDS STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2004 (UNAUDITED) --------------------------------------------------------------------------------
EQUITY BALANCED INTERMEDIATE SMALLCAP REALTY MIGHTY FUND FUND BOND FUND EQUITY FUND FUND MITES SM FUND ------------ ------------ ------------ ------------ ----------- ------------- ASSETS: Investments, at value (Cost $183,371,275, $131,340,210, $10,296,904, $12,892,406, $12,564,461 and $53,354,009, respectively) ........ $212,286,890 $147,215,970 $10,719,705 $13,547,810 $16,992,080 $65,476,542 Cash ..................................... -- 662,804 171,668 201,782 1,175,716 968 Dividends and interest receivable ........ 251,396 573,265 107,340 2,657 77,068 59,680 Receivable for Fund shares sold .......... 85,020 154,312 821 487,858 26,112 38,441 Receivable for investments sold .......... 2,342,627 -- -- -- -- 13,771 Receivable from adviser .................. -- -- 10,025 -- -- -- Receivable from custodian ................ -- -- 554 -- -- -- ------------ ------------ ----------- ----------- ----------- ----------- TOTAL ASSETS ............................. 214,965,933 148,606,351 11,010,113 14,240,107 18,270,976 65,589,402 ------------ ------------ ----------- ----------- ----------- ----------- LIABILITIES: Dividends payable ........................ -- -- 26,084 -- -- -- Payable for Fund shares redeemed ......... -- 700 -- 50,533 2,000 14,985 Payable for investments purchased ........ -- -- -- -- -- 1,303,438 Payable for investment advisory fees ..... 184,384 94,639 -- 5,116 11,661 56,597 Payable for distribution fees ............ 46,913 33,303 2,597 3,036 3,704 14,899 Payable to custodian ..................... 1,264,518 475 -- 22,817 1,596 3,671 Other accrued expenses ................... 185,833 106,869 26,858 30,389 25,791 48,244 ------------ ------------ ----------- ----------- ----------- ----------- TOTAL LIABILITIES ........................ 1,681,648 235,986 55,539 111,891 44,752 1,441,834 ------------ ------------ ----------- ----------- ----------- ----------- NET ASSETS ............................... $213,284,285 $148,370,365 $10,954,574 $14,128,216 $18,226,224 $64,147,568 ============ ============ =========== =========== =========== =========== NET ASSETS CONSIST OF: Share of beneficial interest, at par value $ 6,641 $ 900 $ 361 $ 100 $ 1,029 $ 3,099 Additional paid-in capital ............... 220,333,682 137,817,622 10,464,873 25,656,526 13,693,031 50,837,192 Accumulated (distributions in excess of) net investment income ................. 439,040 4,841 (581) (108,126) 61,819 (94,431) Accumulated net realized gain (loss) on investments ........................ (36,410,693) (5,328,758) 67,120 (12,075,688) 42,726 1,278,449 Net unrealized appreciation on investments 28,915,615 15,875,760 422,801 655,404 4,427,619 12,123,259 ------------ ------------ ----------- ----------- ----------- ----------- TOTAL NET ASSETS ......................... $213,284,285 $148,370,365 $10,954,574 $14,128,216 $18,226,224 $64,147,568 ============ ============ =========== =========== =========== =========== SHARES OF BENEFICIAL INTEREST: CLASS AAA: Shares of beneficial interest outstanding ($0.001 par value) ........ 23,371,355 12,591,673 914,573 1,591,658 1,287,321 4,151,145 ========== ========== ======= ========= ========= ========= NET ASSET VALUE, offering and redemption price per share ....................... $8.98 $11.29 $11.35 $8.70 $14.15 $15.24 ===== ====== ====== ===== ====== ====== CLASS A: Shares of beneficial interest outstanding ($0.001 par value) ........ 356,498 459,814 8,156 13,640 397 2,542 ======= ======= ===== ====== === ===== NET ASSET VALUE, offering and redemption price per share ....................... $8.95 $11.26 $11.35 $8.70 $14.36 $15.27 ===== ====== ====== ===== ====== ====== Maximum sales charge ..................... 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% ==== ==== ==== ==== ==== ==== Maximum offering price per share (NAV/0.96, based on maximum sales charge of 4.00% of the offering price at March 31, 2004) ..... $9.32 $11.73 $11.82 $9.06 $14.96 $15.91 ===== ====== ====== ===== ====== ====== CLASS B: Shares of beneficial interest outstanding ($0.001 par value) ........ 8,256 19,677 37,942 5,159 119 31,852 ===== ====== ====== ===== === ====== NET ASSET VALUE, offering and redemption price per share ....................... $8.90(a) $11.25(a) $11.35(a) $8.52(a) $14.37(a) $15.05(a) ===== ====== ====== ===== ====== ====== CLASS C: Shares of beneficial interest outstanding ($0.001 par value) .................... 16,630 69,261 4,126 13,504 352 24,307 ====== ====== ===== ====== === ====== NET ASSET VALUE, and offering price per share ........................ $8.93(a) $11.27(a) $11.35(a) $8.64(a) $14.71(a) $14.99(a) ===== ====== ====== ===== ====== ======
---------------- (a) Redemption price varies based on length of time held See accompanying notes to financial statements. 13 THE GABELLI WESTWOOD FUNDS STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 2004 (UNAUDITED) --------------------------------------------------------------------------------
EQUITY BALANCED INTERMEDIATE SMALLCAP REALTY MIGHTY FUND FUND BOND FUND EQUITY FUND FUND MITES SM FUND ------------ ------------ ------------ ------------ ----------- ------------- INVESTMENT INCOME: Dividends ............................. $ 3,000,105 $ 1,457,453 $ -- $ 14,774 $ 471,404 $ 300,859 Interest .............................. 260 1,145,590 226,936 -- -- 66,501 ------------ ------------ ------------ ------------ ------------ ------------ TOTAL INVESTMENT INCOME ............... 3,000,365 2,603,043 226,936 14,774 471,404 367,360 ------------ ------------ ------------ ------------ ------------ ------------ EXPENSES: Investment advisory fees .............. 1,096,162 576,771 34,249 81,371 76,870 306,025 Distribution fees-- Class AAA ......... 269,883 184,440 13,561 19,960 19,173 75,595 Distribution fees-- Class A ........... 7,759 13,101 175 305 74 90 Distribution fees-- Class B ........... 417 981 2,109 315 7 2,664 Distribution fees-- Class C ........... 697 4,085 230 606 23 801 Legal and audit fees .................. 31,439 25,551 12,188 13,659 9,154 16,166 Custodian fees ........................ 28,579 10,771 837 28,891 4,664 14,713 Shareholder services fees ............. 141,732 63,556 12,396 10,419 9,572 38,402 Registration fees ..................... 27,374 28,115 23,204 19,175 23,060 23,300 Shareholder report expenses ........... 31,569 16,627 962 2,538 1,452 3,258 Trustee fees .......................... 4,295 2,601 212 220 211 1,138 Miscellaneous expenses ................ 27,530 26,264 2,792 3,096 2,725 20,987 ------------ ------------ ------------ ------------ ------------ ------------ TOTAL EXPENSES ........................ 1,667,436 952,863 102,915 180,555 146,985 503,139 ------------ ------------ ------------ ------------ ------------ ------------ LESS: Expense reimbursements ............. -- -- (43,293) (56,242) (27,688) (41,238) Custodian fee credits .............. (6,174) (10,771) (736) (1,413) (3,933) (220) ------------ ------------ ------------ ------------ ------------ ------------ TOTAL REIMBURSEMENTS AND CREDITS ... (6,174) (10,771) (44,029) (57,655) (31,621) (41,458) ------------ ------------ ------------ ------------ ------------ ------------ TOTAL NET EXPENSES ................. 1,661,262 942,092 58,886 122,900 115,364 461,681 ------------ ------------ ------------ ------------ ------------ ------------ NET INVESTMENT INCOME (LOSS) .......... 1,339,103 1,660,951 168,050 (108,126) 356,040 (94,321) ------------ ------------ ------------ ------------ ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: Net realized gain on investments ...... 6,163,649 3,591,379 84,325 2,017,030 297,417 1,554,963 Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions ...... 20,542,857 7,517,841 (55,176) (665,757) 2,381,809 6,513,556 ------------ ------------ ------------ ------------ ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY 26,706,506 11,109,220 29,149 1,351,273 2,679,226 8,068,519 ------------ ------------ ------------ ------------ ------------ ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ....................... $ 28,045,609 $ 12,770,171 $ 197,199 $ 1,243,147 $ 3,035,266 $ 7,974,198 ============ ============ ============ ============ ============ ============
See accompanying notes to financial statements. 14 THE GABELLI WESTWOOD FUNDS STATEMENT OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
EQUITY FUND BALANCED FUND -------------------------------- -------------------------------- FOR THE SIX FOR THE FOR THE SIX FOR THE MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MARCH 31, 2004 SEPTEMBER 30, MARCH 31, 2004 SEPTEMBER 30, (UNAUDITED) 2003 (UNAUDITED) 2003 ------------- ------------- ------------- ------------- OPERATIONS: Net investment income .............................. $ 1,339,103 $ 2,742,514 $ 1,660,951 $ 3,324,387 Net realized gain (loss) on investment transactions ......................... 6,163,649 (17,118,232) 3,591,379 (3,969,952) Net change in unrealized appreciation on investments 20,542,857 46,872,694 7,517,841 17,609,031 ------------- ------------- ------------- ------------- Net increase in net assets resulting from operations ....................... 28,045,609 32,496,976 12,770,171 16,963,466 ------------- ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class AAA ....................................... (2,610,574) (2,602,620) (1,597,132) (3,238,083) Class A ......................................... (33,291) (15,571) (51,379) (95,033) Class B ......................................... (658) (278) (1,560) (2,167) Class C ......................................... -- (2,736) (6,039) (5,249) ------------- ------------- ------------- ------------- Total distributions to shareholders ................ (2,644,523) (2,621,205) (1,656,110) (3,340,532) ------------- ------------- ------------- ------------- SHARES OF BENEFICIAL INTEREST TRANSACTIONS: Proceeds from shares issued Class AAA ....................................... 25,913,760 46,407,699 14,998,529 38,772,298 Class A ......................................... 445,424 1,345,854 75,407 935,819 Class B ......................................... 5,337 51,042 27,409 92,381 Class C ......................................... 10,387 863,444 821,077 706,432 ------------- ------------- ------------- ------------- 26,374,908 48,668,039 15,922,422 40,506,930 ------------- ------------- ------------- ------------- Proceeds from reinvestment of dividends Class AAA ....................................... 2,404,917 2,264,442 1,477,005 3,005,116 Class A ......................................... 32,283 14,299 42,096 78,353 Class B ......................................... 399 278 1,382 1,924 Class C ......................................... -- 2,735 3,650 2,797 ------------- ------------- ------------- ------------- 2,437,599 2,281,754 1,524,133 3,088,190 ------------- ------------- ------------- ------------- Cost of shares redeemed Class AAA ....................................... (65,104,096) (87,748,936) (37,362,994) (53,401,600) Class A ......................................... (562,861) (594,797) (382,874) (2,168,311) Class B ......................................... (16,085) (33,717) (4,861) (31,726) Class C ......................................... (7,337) (777,960) (558,811) (570,280) ------------- ------------- ------------- ------------- (65,690,379) (89,155,410) (38,309,540) (56,171,917) ------------- ------------- ------------- ------------- Net decrease in net assets from shares of beneficial interest transactions ................ (36,877,872) (38,205,617) (20,862,985) (12,576,797) ------------- ------------- ------------- ------------- Net increase (decrease) in net assets .............. (11,476,786) (8,329,846) (9,748,924) 1,046,137 NET ASSETS: Beginning of period ................................ 224,761,071 233,090,917 158,119,289 157,073,152 ------------- ------------- ------------- ------------- End of period ...................................... $ 213,284,285 $ 224,761,071 $ 148,370,365 $ 158,119,289 ============= ============= ============= ============= Undistributed net investment income ................ $ 439,040 $ 1,744,460 $ 4,841 -- ============= ============= ============= =============
See accompanying notes to financial statements. 15 THE GABELLI WESTWOOD FUNDS STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) --------------------------------------------------------------------------------
INTERMEDIATE BOND FUND SMALLCAP EQUITY FUND -------------------------------- ------------------------------- FOR THE SIX FOR THE FOR THE SIX FOR THE MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MARCH 31, 2004 SEPTEMBER 30, MARCH 31, 2004 SEPTEMBER 30, (UNAUDITED) 2003 (UNAUDITED) 2003 ------------- ------------- ------------- ------------- OPERATIONS: Net investment income (loss) ............... $ 168,050 $ 392,973 $ (108,126) $ (167,046) Net realized gain (loss) on investment transactions .................. 84,325 353,776 2,017,030 (610,797) Net change in unrealized appreciation (depreciation) on investments ........... (55,176) (389,189) (665,757) 2,243,193 ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations ............... 197,199 357,560 1,243,147 1,465,350 ------------ ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS: Net investment income Class AAA ............................... (161,398) (380,496) -- -- Class A ................................. (1,439) (2,488) -- -- Class B ................................. (4,701) (7,806) -- -- Class C ................................. (512) (2,198) -- -- ------------ ------------ ------------ ------------ (168,050) (392,988) -- -- ------------ ------------ ------------ ------------ Net realized gain on investment transactions Class AAA ............................... (12,960) -- -- -- Class A ................................. (123) -- -- -- Class B ................................. (478) -- -- -- Class C ................................. (55) -- -- -- ------------ ------------ ------------ ------------ (13,616) -- -- -- ------------ ------------ ------------ ------------ Total distributions to shareholders ........ (181,666) (392,988) -- -- ------------ ------------ ------------ ------------ SHARES OF BENEFICIAL INTEREST TRANSACTIONS: Proceeds from shares issued Class AAA ............................... 1,434,736 41,063,328 6,789,183 18,908,564 Class A ................................. 1,360 170,010 -- 33,727 Class B ................................. 25,584 848,694 240 32,037 Class C ................................. -- 1,308,262 -- 115,731 ------------ ------------ ------------ ------------ 1,461,680 43,390,294 6,789,423 19,090,059 ------------ ------------ ------------ ------------ Proceeds from reinvestment of dividends Class AAA ............................... 132,924 328,481 -- -- Class A ................................. 1,302 2,255 -- -- Class B ................................. 2,024 4,411 -- -- Class C ................................. 481 1,852 -- -- ------------ ------------ ------------ ------------ 136,731 336,999 -- -- ------------ ------------ ------------ ------------ Cost of shares redeemed Class AAA ............................... (3,372,761) (44,340,287) (9,886,503) (20,860,519) Class A ................................. (48,172) (93,540) -- -- Class B ................................. (98,431) (577,839) (25,492) -- Class C ................................. -- (1,311,766) (1,327) -- ------------ ------------ ------------ ------------ (3,519,364) (46,323,432) (9,913,322) (20,860,519) ------------ ------------ ------------ ------------ Net decrease in net assets from shares of beneficial interest transactions ........ (1,920,953) (2,596,139) (3,123,899) (1,770,460) ------------ ------------ ------------ ------------ Net decrease in net assets ................. (1,905,420) (2,631,567) (1,880,752) (305,110) NET ASSETS: Beginning of period ........................ 12,859,994 15,491,561 16,008,968 16,314,078 ------------ ------------ ------------ ------------ End of period .............................. $ 10,954,574 $ 12,859,994 $ 14,128,216 $ 16,008,968 ============ ============ ============ ============
See accompanying notes to financial statements. 16 THE GABELLI WESTWOOD FUNDS STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) --------------------------------------------------------------------------------
REALTY FUND MIGHTY MITES SM FUND -------------------------------- ------------------------------- FOR THE SIX FOR THE FOR THE SIX FOR THE MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MARCH 31, 2004 SEPTEMBER 30, MARCH 31, 2004 SEPTEMBER 30, (UNAUDITED) 2003 (UNAUDITED) 2003 ------------- ------------- ------------- ------------- OPERATIONS: Net investment income (loss) ................ $ 356,040 $ 421,987 $ (94,321) $ (80,408) Net realized gain on investment transactions ............................ 297,417 45,727 1,554,963 658,859 Net change in unrealized appreciation on investments ........................... 2,381,809 2,078,575 6,513,556 6,462,220 ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations ................ 3,035,266 2,546,289 7,974,198 7,040,671 ------------ ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS: Net investment income Class AAA ................................ (293,590) (423,817) -- (86,465) Class A .................................. (539) (143) -- (97) Class B .................................. (24) (405) -- -- Class C .................................. (68) (34) -- -- ------------ ------------ ------------ ------------ (294,221) (424,399) -- (86,562) ------------ ------------ ------------ ------------ Net realized gain on investment transactions Class AAA ................................ -- -- (661,777) (118,037) Class A .................................. -- -- (389) (82) Class B .................................. -- -- (5,992) (17) Class C .................................. -- -- (1,697) (257) ------------ ------------ ------------ ------------ -- -- (669,855) (118,393) ------------ ------------ ------------ ------------ Total distributions to shareholders ......... (294,221) (424,399) (669,855) (204,955) ------------ ------------ ------------ ------------ SHARES OF BENEFICIAL INTEREST TRANSACTIONS: Proceeds from shares issued Class AAA ................................ 3,972,884 11,175,605 33,653,965 40,071,725 Class A .................................. 28,903 100,769 1,118 28,170 Class B .................................. -- 35,053 8,286 546,036 Class C .................................. -- 11,314 253,675 88,426 ------------ ------------ ------------ ------------ 4,001,787 11,322,741 33,917,044 40,734,357 ------------ ------------ ------------ ------------ Proceeds from reinvestment of dividends Class AAA ................................ 270,106 381,961 577,769 186,652 Class A .................................. 538 140 387 178 Class B .................................. 21 403 5,990 16 Class C .................................. 66 31 1,696 256 ------------ ------------ ------------ ------------ 270,731 382,535 585,842 187,102 ------------ ------------ ------------ ------------ Cost of shares redeemed Class AAA ................................ (2,687,789) (8,875,621) (29,264,282) (27,082,367) Class A .................................. (38,795) (96,437) -- -- Class B .................................. -- (43,582) (117,968) (49,416) Class C .................................. -- (7,289) (9,851) (60,346) ------------ ------------ ------------ ------------ (2,726,584) (9,022,929) (29,392,101) (27,192,129) ------------ ------------ ------------ ------------ Net increase in net assets from shares of beneficial interest transactions 1,545,934 2,682,347 5,110,785 13,729,330 ------------ ------------ ------------ ------------ Net increase in net assets .................. 4,286,979 4,804,237 12,415,128 20,565,046 NET ASSETS: Beginning of period ......................... 13,939,245 9,135,008 51,732,440 31,167,394 ------------ ------------ ------------ ------------ End of period ............................... $ 18,226,224 $ 13,939,245 $ 64,147,568 $ 51,732,440 ============ ============ ============ ============ Undistributed net investment income ......... $ 61,819 -- -- -- ============ ============ ============ ============
See accompanying notes to financial statements. 17 THE GABELLI WESTWOOD FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -------------------------------------------------------------------------------- 1. ORGANIZATION. The Gabelli Westwood Funds (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end management investment company and currently consists of six active separate investment portfolios: Equity Fund, Balanced Fund, Intermediate Bond Fund, SmallCap Equity Fund, Realty Fund and Mighty Mites Fund (collectively, the "Funds"), each with four classes of shares known as the Class AAA Shares, Class A Shares, Class B Shares and Class C Shares. Each class of shares outstanding bears the same voting, dividend, liquidation and other rights and conditions, except that the expenses incurred in the distribution and marketing of such shares are different for each class. 2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the Funds in the preparation of their financial statements. SECURITY VALUATION. Portfolio securities listed or traded on a nationally recognized securities exchange, quoted by the National Association of Securities Dealers Automated Quotations, Inc. ("Nasdaq") or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale or closing price on that exchange or market as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Trustees so determines, by such other method as the Board of Trustees shall determine in good faith, to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the "Adviser"). Portfolio securities primarily traded on foreign markets are generally valued at the preceding closing values of such securities on their respective exchanges. Securities and assets for which market quotations are not readily available are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Board of Trustees. Short term debt securities with remaining maturities of 60 days or less are valued at amortized cost, unless the Board of Trustees determine such does not reflect the securities fair value, in which case these securities will be valued at their fair value as determined by the Board of Trustees. Debt instruments having a maturity greater than 60 days for which market quotations are readily available are valued at the latest average of the bid and asked prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. Options are valued at the last sale price on the exchange on which they are listed. If no sales of such options have taken place that day, they will be valued at the mean between their closing bid and asked prices. ACCOUNTING FOR REAL ESTATE INVESTMENT TRUSTS. The Funds own shares of Real Estate Investment Trusts ("REITS") which report information on the source of their distributions annually. Distributions received from REITS during the year which are known to be a return of capital are recorded as a reduction to the cost of the individual REIT. FOREIGN CURRENCY TRANSLATION. The books and records of the Trust are maintained in United States (U.S.) dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at the exchange rates prevailing at the end of the period, and purchases and sales of investment securities, income and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses, which result from changes in foreign exchange rates and/or changes in market prices of securities, have been included 18 THE GABELLI WESTWOOD FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) -------------------------------------------------------------------------------- in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions and the difference between the amounts of interest and dividends recorded on the books of the Trust and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial trade date and subsequent sale trade date is included in realized gain/(loss) on investments. SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are accounted for on the trade date with realized gain or loss on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded as earned. Dividend income is recorded on the ex-dividend date. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends from net investment income are declared and paid annually for the Equity Fund, SmallCap Equity Fund and Mighty Mites Fund, and quarterly for the Balanced Fund and Realty Fund. The Intermediate Bond Fund declares dividends daily and pays those dividends monthly. Distributions of net realized gain on investments are normally declared and paid at least annually by each Fund. Dividends and distributions to shareholders are recorded on the ex-dividend date. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Funds, timing differences and differing characterization of distributions made by the Funds. For the year ended September 30, 2003, the following reclassifications were made to increase (decrease) such accounts with offsetting adjustments to additional paid-in-capital. These reclassifications related primarily to distributions from Real Estate Investment Trusts, net operating losses and nondeductible organizational costs. ACCUMULATED UNDISTRIBUTED ACCUMULATED REALIZED NET INVESTMENT INCOME (LOSS) GAIN (LOSS) ON INVESTMENTS ---------------------------- -------------------------- Equity Fund ............... -- $ (461) Balanced Fund ............. $ 8,253 -- Intermediate Bond Fund .... (566) 566 SmallCap Equity Fund ...... 167,046 532 Realty Fund ............... 207 -- Mighty Mites Fund ......... 146,445 (140,675) The tax character of distributions paid during the fiscal year ended September 30, 2003 were as follows:
INTERMEDIATE SMALLCAP MIGHTY EQUITY BALANCED BOND EQUITY REALTY MITES SM FUND FUND FUND FUND FUND FUND ------ -------- ------------ -------- ------ -------- Distributions paid from: Ordinary income (inclusive of short term capital gains) .. $2,621,205 $3,340,532 $392,988 -- $424,399 $101,542 Net long term capital gains ................. -- -- -- -- -- 103,413 ---------- ---------- -------- ---- -------- -------- Total distributions paid .................... $2,621,205 $3,340,532 $392,988 -- $424,399 $204,955 ========== ========== ======== ==== ======== ========
19 THE GABELLI WESTWOOD FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) -------------------------------------------------------------------------------- PROVISION FOR INCOME TAXES. The Funds intend to continue to qualify as regulated investment companies under Subchapter M of the Internal Revenue Code of 1986, as amended. By so qualifying, the Funds will not be subject to federal income taxes to the extent that they distribute all of their taxable income for the fiscal year. As of September 30, 2003, the components of distributable accumulated earnings/(losses) on a tax basis were as follows:
INTERMEDIATE SMALLCAP MIGHTY EQUITY BALANCED BOND EQUITY REALTY MITES SM FUND FUND FUND FUND FUND FUND ------ -------- ------------ -------- ------ -------- Undistributed ordinary income ........ $ 1,744,460 -- $ 2,046 -- -- $ 196,000 Currently distributable long-term capital gain ....................... -- -- -- -- -- 246,373 Capital loss carryforward ............ (27,349,500) $ (4,979,695) -- $(13,690,665) $ (202,901) -- Unrealized appreciation/(depreciation) 6,822,662 7,607,561 460,773 1,286,561 1,994,021 5,560,670 ------------ ------------ ------------ ------------ ------------ ------------ Total accumulated income/(loss) ...... $(18,782,378) $ 2,627,866 $ 462,819 $(12,404,104) $ 1,791,120 $ 6,003,043 ============ ============ ============ ============ ============ ============
The difference between book and tax-basis unrealized appreciation/(depreciation) is attributable primarily to the tax basis deferral of losses on wash sales. DETERMINATION OF NET ASSET VALUE AND CALCULATION OF EXPENSES. Expenses directly attributable to a Fund are charged to that Fund. Other expenses are allocated proportionately among each Fund within the Trust in relation to the net assets of each Fund or on another reasonable basis. In calculating net asset value per share of each class, investment income, realized and unrealized gains and losses and expenses other than class specific expenses are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day. Distribution expenses are solely borne by the class incurring the expense. CONCENTRATION RISK. The Realty Fund invests a substantial portion of its assets in REITS; therefore it may be more affected by economic developments in the real estate industry than would a general equity fund. 3. INVESTMENT ADVISORY AGREEMENTS. The Funds have entered into an investment advisory agreement (the "Advisory Agreement") with the Adviser which provides that the Funds will pay the Adviser a fee, computed daily and paid monthly, at the annual rate of 1.00% for the Equity Fund, SmallCap Equity Fund, Realty Fund and Mighty Mites Fund, 0.75% for the Balanced Fund, and 0.60% for the Intermediate Bond Fund, of each Fund's average daily net assets. The Adviser has contractually agreed to waive its investment advisory fee and/or reimburse expenses to the Intermediate Bond Fund, SmallCap Equity Fund, Realty Fund and Mighty Mites Fund in the event annual expenses of such Funds exceed certain prescribed limits. Such fee waiver/reimbursement arrangement will continue until at least September 30, 2004. For the six months ended March 31, 2004, the Adviser was entitled to fees of $1,096,162, $81,371, $76,870, $306,025, $576,771 and $34,249 for the Equity, SmallCap Equity, Realty, Mighty Mites, Balanced and Intermediate Bond Funds, respectively. For the six months ended March 31, 2004, the Adviser waived fees or reimbursed expenses in the amounts of $56,242, $27,688, $41,238 and $43,293 for the SmallCap Equity, Realty, Mighty Mites and Intermediate Bond Funds, respectively. The Intermediate Bond Fund, SmallCap Equity Fund, Realty Fund and Mighty Mites Fund are obliged to repay the Adviser for a period of two fiscal years following the fiscal year in which the Adviser reimbursed the Fund only to the extent that the operating expenses of the Fund fall below the applicable expense limitation for Class AAA of 1.00%, 1.50%, 1.50% and 1.50%, respectively and for Class A of 1.10%, 1.75%, 1.75% and 1.75%, respectively, and for Class B and C of 1.75%, 2.25%, 2.25% and 2.25%, respectively of average daily net assets, the annual limitation under the plan. As of March 31, 2004 the cumulative unreimbursed amounts which may be recovered by the Adviser are $182,730, $177,822, $145,623 and $178,938 for the Intermediate Bond, SmallCap Equity, Realty and Mighty Mites Funds, respectively. 20 THE GABELLI WESTWOOD FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) -------------------------------------------------------------------------------- The Funds, with the exception of the Mighty Mites Fund, have also entered into a sub-advisory agreement with Westwood Management Corp. (the "Sub-Adviser") whereby the Adviser pays the Sub-Adviser the greater of $150,000 per year on an aggregate basis for the Funds or a fee of 35% of net revenues to the Adviser from the Funds. For the six months ended March 31, 2004, the Adviser paid to the Sub-Adviser fees of $320,532, $23,794, $22,478, $224,874 and $16,692 for the Equity, SmallCap Equity, Realty, Balanced and Intermediate Bond Funds, respectively. 4. DISTRIBUTION PLANS. The Funds have adopted distribution plans pursuant to Rule 12b-1 under the 1940 Act. Gabelli & Company, Inc. ("Gabelli & Company"), an affiliate of the Adviser, serves as distributor of the Funds. The Class AAA Share Plan authorizes payment by the Funds to Gabelli & Company in connection with the distribution of its Class AAA shares at an annual rate of 0.25% of the average daily net assets of those Funds each fiscal year. Such payments are accrued daily and paid monthly. Under the Class A, B and C Share Plans, payments are authorized to Gabelli & Company in connection with the distribution and service of its Class A, B and C Shares at annual rates of 0.50% (for the Intermediate Bond Fund at an annual rate of 0.35%), 1.00% and 1.00%, respectively, of the average daily net assets of those Classes each fiscal year. Such payments are accrued daily and paid monthly. 5. PORTFOLIO SECURITIES. Purchases and sales of securities for the six months ended March 31, 2004, other than short term securities, are as follows:
PURCHASES SALES PURCHASES SALES (EXCLUDING U.S. (EXCLUDING U.S. OF U.S. OF U.S. GOVERNMENT) GOVERNMENT) GOVERNMENT GOVERNMENT SECURITIES SECURITIES SECURITIES SECURITIES -------------- --------------- ---------- ---------- Equity Fund ................. $50,444,921 $87,655,132 -- -- Balanced Fund ............... 20,986,141 36,728,788 $4,728,784 $8,743,361 Intermediate Bond Fund ...... 1,153,455 513,241 153,057 2,758,002 SmallCap Equity Fund ........ 15,455,889 19,050,781 -- -- Realty Fund ................. 2,860,365 1,433,453 -- -- Mighty Mites Fund ........... 22,489,748 4,961,505 -- --
21 THE GABELLI WESTWOOD FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) -------------------------------------------------------------------------------- 6. TRANSACTIONS WITH AFFILIATES. During the six months ended March 31, 2004, the Mighty Mites Fund paid brokerage commissions of $30,017 to Gabelli & Company. Gabelli & Company has informed the Trust that it received commissions (sales charges and underwriting fees) from investors on sales or redemptions of Fund shares in the amount of $639. The cost of calculating each Fund's net asset value per share is a Fund expense pursuant to the Investment Advisory Agreement between each Fund and Gabelli Advisers, Inc. (the "Adviser"). During the six months ended March 31, 2004, the Gabelli Westwood Equity Fund, Gabelli Westwood Balanced Fund and Gabelli Westwood Mighty Mites Fund reimbursed the Adviser $17,400 each in connection with the cost of computing such Fund's net asset value. 7. FEDERAL INCOME TAX INFORMATION. The Equity Fund has capital loss carryforwards for Federal income tax purposes of $5,455,742 and $21,893,758 available through September 2010 and 2011, respectively. The Balanced Fund has capital loss carryforwards for Federal income tax purposes of $1,323,084 and $3,656,611 available through September 2010 and 2011, respectively. The Intermediate Bond Fund utilized capital loss carryforwards of $355,159 during the fiscal year 2003. The SmallCap Equity Fund has capital loss carryforwards for Federal income tax purposes of $8,845,179 and $4,845,486 available through September 2010 and 2011, respectively. The Realty Fund has capital loss carryforwards for Federal income tax purposes of $3,953, $185,550 and $13,398 available through September 2007, 2008 and 2011, respectively. These loss carryforwards are available to reduce distributions of net capital gains to shareholders. Under the current tax law, capital losses related to securities and foreign currency realized after October 31 and prior to the Fund's fiscal year end may be deferred as occurring on the first day of the following year. For the fiscal year ended September 30, 2003 the Funds elected to defer capital losses as follows: DEFERRED LOSS ------------- Equity Fund ................... $13,674,745 Balanced Fund ................. 3,197,287 Intermediate Bond Fund ........ -- SmallCap Equity Fund .......... 367,452 Realty Fund ................... -- Mighty Mites Fund ............. -- 8. CONTINGENCY. On October 7, 2003, the Funds' Adviser received a subpoena from the Attorney General of the State of New York requesting information on mutual fund shares trading practices. The Adviser responded to the subpoena. The Funds do not believe that this matter will have a material adverse effect on the Funds' financial position or results of the operations. 22 THE GABELLI WESTWOOD FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) -------------------------------------------------------------------------------- 9. SHARES OF BENEFICIAL INTEREST. Transactions in shares of beneficial interest were as follows:
EQUITY FUND BALANCED FUND INTERMEDIATE BOND FUND ---------------------------- ---------------------------- ---------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED MARCH 31, 2004 SEPTEMBER 30, MARCH 31, 2004 SEPTEMBER 30, MARCH 31, 2004 SEPTEMBER 30, (UNAUDITED) 2003 (UNAUDITED) 2003 (UNAUDITED) 2003 ----------- ----------- ----------- ----------- ----------- ----------- CLASS AAA Shares sold ................ 2,958,398 6,208,684 1,353,021 3,823,778 127,876 3,647,441 Shares issued upon reinvestment of dividends 274,221 302,329 132,839 293,563 11,903 29,158 Shares redeemed ............ (7,584,947) (11,724,255) (3,393,969) (5,264,486) (301,931) (3,941,459) ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in Class AAA shares .... (4,352,328) (5,213,242) (1,908,109) (1,147,145) (162,152) (264,860) =========== =========== =========== =========== =========== =========== CLASS A Shares sold ................ 50,862 186,265 6,768 91,710 121 15,245 Shares issued upon reinvestment of dividends 3,690 1,914 3,795 7,686 117 200 Shares redeemed ............ (64,938) (80,023) (34,384) (214,898) (4,300) (8,177) ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in Class A shares ......... (10,386) 108,156 (23,821) (115,502) (4,062) 7,268 =========== =========== =========== =========== =========== =========== CLASS B Shares sold ................ 661 6,566 2,421 8,962 2,247 75,176 Shares issued upon reinvestment of dividends 46 37 125 187 181 392 Shares redeemed ............ (1,840) (4,803) (445) (3,310) (8,882) (51,400) ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in Class B shares .......... (1,133) 1,800 2,101 5,839 (6,454) 24,168 =========== =========== =========== =========== =========== =========== CLASS C Shares sold ................ 1,132 113,403 76,572 69,360 -- 118,109 Shares issued upon reinvestment of dividends -- 368 329 271 43 164 Shares redeemed ............ (878) (102,101) (51,093) (55,678) -- (118,596) ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in Class C shares ......... 254 11,670 25,808 13,953 43 (323) =========== =========== =========== =========== =========== =========== SMALLCAP EQUITY FUND REALTY FUND MIGHTY MITES SM FUND ---------------------------- ---------------------------- ---------------------------- CLASS AAA Shares sold ................ 752,381 2,500,124 303,700 1,060,132 2,303,109 3,248,232 Shares issued upon reinvestment of dividends -- -- 20,730 36,193 41,005 16,344 Shares redeemed ............ (1,083,281) (2,741,991) (210,288) (832,671) (2,000,001) (2,213,063) ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in Class AAA shares ....... (330,900) (241,867) 114,142 263,654 344,113 1,051,513 =========== =========== =========== =========== =========== =========== CLASS A Shares sold ................ -- 4,227 2,320 9,846 76 2,344 Shares issued upon reinvestment of dividends -- -- 42 12 28 15 Shares redeemed ............ -- -- (2,829) (9,323) -- -- ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in Class A shares ........ -- 4,227 (467) 535 104 2,359 =========== =========== =========== =========== =========== =========== CLASS B Shares sold ................ 28 3,889 -- 3,525 583 42,229 Shares issued upon reinvestment of dividends -- -- 2 40 430 1 Shares redeemed ............ (2,926) -- -- (4,384) (8,000) (3,737) ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in Class B shares .......... (2,898) 3,889 2 (819) (6,987) 38,493 =========== =========== =========== =========== =========== =========== CLASS C Shares sold ................ -- 13,643 -- 1,076 17,470 7,086 Shares issued upon reinvestment of dividends -- -- 5 3 122 23 Shares redeemed ............ (149) -- -- (742) (714) (5,007) ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in Class C shares ........ (149) 13,643 5 337 16,878 2,102 =========== =========== =========== =========== =========== ===========
23 THE GABELLI WESTWOOD FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- Selected data for a share of beneficial interest outstanding throughout each period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS ----------------------------------------- -------------------------------------- NET REALIZED NET ASSET NET AND TOTAL NET NET VALUE, INVESTMENT UNREALIZED GAIN FROM NET REALIZED ASSET VALUE, PERIOD ENDED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL END OF SEPTEMBER 30 OF PERIOD (LOSS)(C) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS PERIOD ------------ --------- ---------- --------------- ---------- ---------- ----------- ------------- ------------ EQUITY FUND CLASS AAA 2004 (a) $ 7.99 $ 0.05 $ 1.05 $ 1.10 $(0.11) -- $(0.11) $ 8.98 2003 7.02 0.09 0.96 1.05 (0.08) -- (0.08) 7.99 2002 8.32 0.07 (1.32) (1.25) (0.05) -- (0.05) 7.02 2001 11.12 0.04 (1.52) (1.48) (0.01) $(1.31) (1.32) 8.32 2000 10.46 (0.00)(d) 1.86 1.86 (0.02) (1.18) (1.20) 11.12 1999 8.99 0.04 1.72 1.76 (0.06) (0.23) (0.29) 10.46 CLASS A 2004 (a) $ 7.97 $ 0.04 $ 1.03 $ 1.07 $(0.09) -- $(0.09) $ 8.95 2003 6.99 0.07 0.97 1.04 (0.06) -- (0.06) 7.97 2002 8.29 0.05 (1.32) (1.27) (0.03) -- (0.03) 6.99 2001 11.10 0.02 (1.52) (1.50) -- $(1.31) (1.31) 8.29 2000 10.46 (0.03) 1.85 1.82 -- (1.18) (1.18) 11.10 1999 8.97 0.02 1.73 1.75 (0.03) (0.23) (0.26) 10.46 CLASS B 2004 (a) $ 7.92 $ 0.02 $ 1.03 $ 1.05 $(0.07) -- $(0.07) $ 8.90 2003 6.97 0.04 0.95 0.99 (0.04) -- (0.04) 7.92 2002 8.29 0.02 (1.32) (1.30) (0.02) -- (0.02) 6.97 2001 (e) 9.65 (0.01) (1.35) (1.36) -- -- -- 8.29 CLASS C 2004 (a) $ 7.89 $ 0.02 $ 1.02 $ 1.04 -- -- -- $ 8.93 2003 6.98 0.04 0.96 1.00 $(0.09) -- $(0.09) 7.89 2002 8.28 0.01 (1.31) (1.30) -- -- -- 6.98 2001 (f) 10.25 (0.01) (1.96) (1.97) -- -- -- 8.28
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA --------------------------------------------------- NET NET ASSETS, INVESTMENT EXPENSES END OF INCOME (LOSS) NET OF WAIVERS PORTFOLIO PERIOD ENDED TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER SEPTEMBER 30 RETURN+ (IN 000'S) NET ASSETS NET ASSETS(B) RATE ------------ ------- ----------- ------------- -------------- ---------- EQUITY FUND CLASS AAA 2004 (a) 13.8% $209,871 1.23%(g) 1.52%(g) 23% 2003 15.1 221,635 1.19 1.48 50 2002 (15.1) 231,197 0.84 1.46 84 2001 (14.9) 265,855 0.45 1.43 87 2000 19.3 204,094 (0.00) 1.48 91 1999 19.8 155,036 0.38 1.49 67 CLASS A 2004 (a) 13.5% $ 3,191 0.98%(g) 1.77%(g) 23% 2003 15.0 2,923 0.94 1.73 50 2002 (15.4) 1,808 0.59 1.71 84 2001 (15.1) 2,096 0.20 1.68 87 2000 19.0 2,133 (0.25) 1.73 91 1999 19.5 2,222 0.13 1.74 67 CLASS B 2004 (a) 13.3% $ 74 0.48%(g) 2.27%(g) 23% 2003 14.3 74 0.44 2.23 50 2002 (15.7) 53 0.09 2.21 84 2001 (e) (14.1) 27 (0.30)(g) 2.18(g) 87 CLASS C 2004 (a) 13.2% $ 148 0.48%(g) 2.27%(g) 23% 2003 14.4 129 0.44 2.23 50 2002 (15.7) 33 0.09 2.21 84 2001 (f) (19.2) 4 (0.30)(g) 2.18(g) 87
-------------------------- + Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including reinvestment of dividends. Total return for the period of less than one year is not annualized. (a) For the period ended March 31, 2004; unaudited. (b) The ratios do not include a reduction of expenses for custodian fee credits on cash balances maintained with the custodian. Including such custodian fee credits, the expense ratios would be 1.51% (Class AAA), 1.76% (Class A) and 2.26% (Class B and Class C) for the period ended March 31, 2004, 1.47% (Class AAA), 1.72% (Class A) and 2.22% (Class B and C) for the period ended September 30, 2003, 1.43% (Class AAA), 1.68% (Class A) and 2.18% (Class B and Class C) for 2002, 1.42% (Class AAA), 1.67% (Class A) and 2.17% (Class B and Class C) for 2001, 1.47% (Class AAA) and 1.72% (Class A) for 2000 and 1.44% (Class AAA) and 1.69% (Class A) for 1999. (c) Per share amounts have been calculated using the monthly average shares outstanding method for fiscal 2000, 2001, 2002, 2003 and 2004. (d) Amount represents less than $0.005 per share. (e) From March 27, 2001 through September 30, 2001, the period through which Class B Shares were continuously outstanding. (f) From February 13, 2001 through September 30, 2001, the period through which Class C Shares were continuously outstanding. (g) Annualized. See accompanying notes to financial statements. 24 THE GABELLI WESTWOOD FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- Selected data for a share of beneficial interest outstanding throughout each period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS ----------------------------------------- -------------------------------------- NET REALIZED NET ASSET NET AND TOTAL NET NET VALUE, INVESTMENT UNREALIZED GAIN FROM NET REALIZED ASSET VALUE, PERIOD ENDED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL END OF SEPTEMBER 30 OF PERIOD (LOSS)(C) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS PERIOD ------------ --------- ---------- --------------- ---------- ---------- ----------- ------------- ------------ BALANCED FUND CLASS AAA 2004 (a) $10.51 $0.12 $ 0.78 $ 0.90 $(0.12) -- $(0.12) $11.29 2003 9.65 0.21 0.87 1.08 (0.22) -- (0.22) 10.51 2002 10.40 0.24 (0.75) (0.51) (0.24) --(d) (0.24) 9.65 2001 12.40 0.26 (0.90) (0.64) (0.26) $(1.10) (1.36) 10.40 2000 11.98 0.27 1.23 1.50 (0.27) (0.81) (1.08) 12.40 1999 10.98 0.25 1.12 1.37 (0.25) (0.12) (0.37) 11.98 CLASS A 2004 (a) $10.48 $0.11 $ 0.78 $ 0.89 $(0.11) -- $(0.11) $11.26 2003 9.62 0.19 0.86 1.05 (0.19) -- (0.19) 10.48 2002 10.37 0.21 (0.75) (0.54) (0.21) --(d) (0.21) 9.62 2001 12.36 0.23 (0.89) (0.66) (0.23) $(1.10) (1.33) 10.37 2000 11.95 0.24 1.22 1.46 (0.24) (0.81) (1.05) 12.36 1999 10.96 0.22 1.11 1.33 (0.22) (0.12) (0.34) 11.95 CLASS B 2004 (a) $10.48 $0.08 $ 0.77 $ 0.85 $(0.08) -- $(0.08) $11.25 2003 9.63 0.14 0.86 1.00 (0.15) -- (0.15) 10.48 2002 10.40 0.17 (0.77) (0.60) (0.17) --(d) (0.17) 9.63 2001 (e) 11.35 0.08 (0.95) (0.87) (0.08) -- (0.08) 10.40 CLASS C 2004 (a) $10.49 $0.08 $ 0.78 $ 0.86 $(0.08) -- $(0.08) $11.27 2003 9.62 0.14 0.87 1.01 (0.14) -- (0.14) 10.49 2002 10.40 0.19 (0.79) (0.60) (0.18) --(d) (0.18) 9.62 2001 (f) 10.17 0.00(d) 0.23(h) 0.23 -- -- -- 10.40
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA --------------------------------------------------- NET NET ASSETS, INVESTMENT EXPENSES END OF INCOME (LOSS) NET OF WAIVERS PORTFOLIO PERIOD ENDED TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER SEPTEMBER 30 RETURN+ (IN 000'S) NET ASSETS NET ASSETS(B) RATE ------------ ------- ----------- ------------- -------------- ---------- BALANCED FUND CLASS AAA 2004 (a) 8.6% $142,190 2.17%(g) 1.23%(g) 18% 2003 11.2 152,409 2.10 1.23 56 2002 (5.1) 150,915 2.25 1.22 78 2001 (5.8) 154,179 2.23 1.17 81 2000 13.4 139,350 2.21 1.19 65 1999 12.6 160,352 2.06 1.20 86 CLASS A 2004 (a) 8.5% $ 5,179 1.92%(g) 1.48%(g) 18% 2003 11.0 5,070 1.85 1.48 56 2002 (5.4) 5,761 2.00 1.47 78 2001 (6.0) 6,472 1.98 1.42 81 2000 13.1 7,720 1.96 1.44 65 1999 12.2 9,374 1.81 1.45 86 CLASS B 2004 (a) 8.2% $ 221 1.42%(g) 1.98%(g) 18% 2003 10.4 184 1.35 1.98 56 2002 (5.9) 113 1.50 1.97 78 2001 (e) (7.7) 2 1.48(g) 1.92(g) 81 CLASS C 2004 (a) 8.2% $ 780 1.42%(g) 1.98%(g) 18% 2003 10.5 456 1.35 1.98 56 2002 (5.9) 284 1.50 1.97 78 2001 (f) 2.3 7 1.48(g) 1.92(g) 81
-------------------------- + Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including reinvestment of dividends. Total return for the period of less than one year is not annualized. (a) For the period ended March 31, 2004; unaudited. (b) The ratios do not include a reduction of expenses for custodian fee credits on cash balances maintained with the custodian. Including such custodian fee credits, the expense ratios would be 1.21% (Class AAA), 1.46% (Class A) and 1.96% (Class B and Class C) for the period ended March 31, 2004, 1.20% (Class AAA), 1.45% (Class A) and 1.95% (Class B andC) for the period ended September 30, 2003, 1.17% (Class AAA), 1.42% (Class A) and 1.92% (Class B and Class C) for 2002, 1.15% (Class AAA), 1.40% (Class A) and 1.90% (Class B and Class C) for 2001, 1.17% (Class AAA) and 1.42% (Class A) for 2000 and 1.15% (Class AAA) and 1.40% (Class A) for 1999. (c) Per share amounts have been calculated using the monthly average shares outstanding method for fiscal 2000, 2001, 2002, 2003 and 2004. (d) Amount represents less than $.005 per share. (e) From March 27, 2001 through September 30, 2001, the period through which Class B Shares were continuously outstanding. (f) From September 25, 2001 through September 30, 2001, the period through which Class C Shares were continuously outstanding. (g) Annualized. (h) In prior reports, Net Realized and Unrealized Gain (Loss) on Investments was incorrectly calculated as $(0.29) per share. See accompanying notes to financial statements. 25 THE GABELLI WESTWOOD FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- Selected data for a share of beneficial interest outstanding throughout each period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS ----------------------------------------- -------------------------------------- NET REALIZED NET ASSET NET AND TOTAL NET NET VALUE, INVESTMENT UNREALIZED GAIN FROM NET REALIZED ASSET VALUE, PERIOD ENDED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL END OF SEPTEMBER 30 OF PERIOD (LOSS)(D) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS PERIOD ------------ --------- ---------- --------------- ---------- ---------- ----------- ------------- ------------ INTERMEDIATE BOND FUND CLASS AAA 2004 (a) $11.31 $0.17 $ 0.05 $ 0.22 $(0.17) $(0.01) $(0.18) $11.35 2003 11.30 0.31 (0.00) 0.31 (0.30) -- (0.30) 11.31 2002 10.82 0.45 0.48 0.93 (0.45) -- (0.45) 11.30 2001 10.08 0.51 0.74 1.25 (0.51) -- (0.51) 10.82 2000 9.99 0.51 0.09 0.60 (0.51) -- (0.51) 10.08 1999 10.74 0.50 (0.75) (0.25) (0.50) -- (0.50) 9.99 CLASS A 2004 (a) $11.31 $0.16 $ 0.05 $ 0.21 $(0.16) $(0.01) $(0.17) $11.35 2003 11.30 0.30 0.01 0.31 (0.30) -- (0.30) 11.31 2002 10.82 0.44 0.48 0.92 (0.44) -- (0.44) 11.30 2001 (f) 10.55 0.09 0.27 0.36 (0.09) -- (0.09) 10.82 CLASS B 2004 (a) $11.30 $0.13 $ 0.06 $ 0.19 $(0.13) $(0.01) $(0.14) $11.35 2003 11.29 0.23 (0.00) 0.23 (0.22) -- (0.22) 11.30 2002 10.82 0.37 0.47 0.84 (0.37) -- (0.37) 11.29 2001 (e) 10.53 0.22 0.29 0.51 (0.22) -- (0.22) 10.82 CLASS C (h) 2004 (a) $11.30 $0.13 $ 0.06 $ 0.19 $(0.13) $(0.01) $(0.14) $11.35 2003 11.29 0.22 0.01 0.23 (0.22) -- (0.22) 11.30 2002 (i) 10.84 0.35 0.45 0.80 (0.35) -- (0.35) 11.29
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA --------------------------------------------------- NET EXPENSES EXPENSES NET ASSETS, INVESTMENT NET OF BEFORE END OF INCOME (LOSS) WAIVERS/ WAIVERS/ PORTFOLIO PERIOD ENDED TOTAL PERIOD TO AVERAGE REIMBURSE- REIMBURSE- TURNOVER SEPTEMBER 30 RETURN+ (IN 000'S) NET ASSETS MENTS(B) MENTS(C) RATE ------------ -------- ----------- ------------- ---------- ---------- ---------- INTERMEDIATE BOND FUND CLASS AAA 2004 (a) 2.0% $10,384 2.98%(g) 1.01%(g) 1.77%(g) 12% 2003 2.8 12,174 2.70 1.06 1.57 73 2002 8.9 15,157 4.06 1.05 1.69 46 2001 12.7 8,140 4.90 1.07 2.02 77 2000 6.4 6,451 5.16 1.06 1.94 67 1999 (2.4) 6,214 4.82 1.05 1.63 108 CLASS A 2004 (a) 1.9% $ 93 2.88%(g) 1.11%(g) 1.87%(g) 12% 2003 2.8 138 2.60 1.16 1.67 73 2002 8.8 56 3.96 1.15 1.79 46 2001 (f) 3.4 93 4.80(g) 1.17(g) 2.12(g) 77 CLASS B 2004 (a) 1.7% $ 431 2.23%(g) 1.76%(g) 2.52%(g) 12% 2003 2.1 502 1.95 1.81 2.32 73 2002 8.0 229 3.31 1.80 2.44 46 2001 (e) 4.9 23 4.15(g) 1.82(g) 2.77(g) 77 CLASS C (h) 2004 (a) 1.7% $ 47 2.23%(g) 1.76%(g) 2.52%(g) 12% 2003 2.1 46 1.95 1.81 2.32 73 2002 (i) 7.6 50 3.31(g) 1.80(g) 2.44(g) 46
-------------------------- + Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including reinvestment of dividends. Total return for the period of less than one year is not annualized. (a) For the period ended March 31, 2004; unaudited. (b) The ratios do not include a reduction of expenses for custodian fee credits on cash balances maintained with the custodian. Including such custodian fee credits, the expense ratios for the Intermediate Bond Fund Class AAA, Intermediate Bond Fund Class A, Intermediate Bond Fund Class B and Intermediate Bond Fund Class C, would be 1.00%, 1.10 %, 1.75% and 1.75%, respectively, for each period. (c) During the period, certain fees were reduced and/or reimbursed. If such fee reductions and/or reimbursements had not occurred, the ratio would have been as shown. (d) Per share amounts have been calculated using the monthly average shares method for fiscal 2001, 2002, 2003 and 2004. (e) From March 27, 2001 through September 30, 2001, the period through which Class B Shares were continuously outstanding. (f) From July 26, 2001 through September 30, 2001, the period through which Class A Shares were continuously outstanding. (g) Annualized. (h) Class C Shares were outstanding for the periods December 15, 2000 through December 18, 2000, March 21, 2001 through March 26, 2001 and July 18, 2001 through July 24, 2001. Financial Highlights are not presented for Class C Shares for the fiscal year 2001 as the information is not considered meaningful. (i) From October 22, 2001 through September 30, 2002, the period through which Class C Shares were continuously outstanding. See accompanying notes to financial statements. 26 THE GABELLI WESTWOOD FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- Selected data for a share of beneficial interest outstanding throughout each period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS ----------------------------------------- ---------------------------------------------------- NET REALIZED IN EXCESS NET ASSET NET AND TOTAL NET OF NET VALUE, INVESTMENT UNREALIZED GAIN FROM NET REALIZED REALIZED PERIOD ENDED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT GAIN ON GAIN ON TOTAL SEPTEMBER 30 OF PERIOD (LOSS)(D) INVESTMENTS OPERATIONS INCOME INVESTMENTS INVESTMENTS DISTRIBUTIONS ------------ --------- ---------- --------------- ---------- ---------- ----------- ----------- ------------- SMALLCAP EQUITY FUND CLASS AAA 2004 (a) $ 8.18 $(0.06) $ 0.58 $ 0.52 -- -- -- -- 2003 7.49 (0.08) 0.77 0.69 -- -- -- -- 2002 8.86 (0.09) (1.28) (1.37) -- -- -- -- 2001 22.10 (0.16) (8.12) (8.28) -- $(4.53) $(0.43)(f) $(4.96) 2000 17.77 (0.27) 5.39 5.12 -- (0.79) -- (0.79) 1999 11.18 (0.12) 6.71 6.59 -- -- -- -- CLASS A 2004 (a) $ 8.18 $(0.07) $ 0.59 $ 0.52 -- -- -- -- 2003 7.51 (0.10) 0.77 0.67 -- -- -- -- 2002 (h) 9.91 (0.09) (2.31) (2.40) -- -- -- -- CLASS B 2004 (a) $ 8.03 $(0.09) $ 0.58 $ 0.49 -- -- -- -- 2003 7.41 (0.13) 0.75 0.62 -- -- -- -- 2002 8.83 (0.16) (1.26) (1.42) -- -- -- -- 2001 (e) 10.41 (0.10) (1.48) (1.58) -- -- -- -- CLASS C 2004 (a) $ 8.15 $(0.09) $ 0.58 $ 0.49 -- -- -- -- 2003 7.47 (0.10) 0.78 0.68 -- -- -- -- 2002 (h) 9.91 (0.11) (2.33) (2.44) -- -- -- --
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA --------------------------------------------------- NET EXPENSES EXPENSES NET NET ASSETS, INVESTMENT NET OF BEFORE ASSET VALUE, END OF INCOME (LOSS) WAIVERS/ WAIVERS/ PORTFOLIO PERIOD ENDED END OF TOTAL PERIOD TO AVERAGE REIMBURSE- REIMBURSE- TURNOVER SEPTEMBER 30 PERIOD RETURN+ (IN 000'S) NET ASSETS MENTS(B) MENTS(C) RATE ------------ ------------ ------- ----------- ------------- ---------- ---------- ---------- SMALLCAP EQUITY FUND CLASS AAA 2004 (a) $ 8.70 6.4% $13,849 (1.32)%(g) 1.52%(g) 2.21%(g) 100% 2003 8.18 9.2 15,721 (1.03) 1.53 1.99 329 2002 7.49 (15.5) 16,212 (0.98) 1.56 1.76 202 2001 8.86 (43.2) 21,768 (1.27) 1.59 1.74 184 2000 22.10 29.4 34,911 (1.39) 1.58 1.63 218 1999 17.77 58.9 20,361 (0.88) 1.62 1.72 178 CLASS A 2004 (a) $ 8.70 6.4% $ 118 (1.57)%(g) 1.77%(g) 2.46%(g) 100% 2003 8.18 8.9 112 (1.28) 1.78 2.24 329 2002 (h) 7.51 (24.2) 71 (1.23)(g) 1.80(g) 2.01(g) 202 CLASS B 2004 (a) $ 8.52 6.1% $ 44 (2.07)%(g) 2.27%(g) 2.96%(g) 100% 2003 8.03 8.4 65 (1.78) 2.28 2.74 329 2002 7.41 (16.1) 31 (1.73) 2.30 2.51 202 2001 (e) 8.83 (15.2) 31 (2.02)(g) 2.34(g) 2.49(g) 184 CLASS C 2004 (a) $ 8.64 6.0% $ 117 (2.07)%(g) 2.27%(g) 2.96%(g) 100% 2003 8.15 9.1 111 (1.78) 2.28 2.74 329 2002 (h) 7.47 (24.6) -- (1.73)(g) 2.30(g) 2.51(g) 202
-------------------------- + Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including reinvestment of dividends. Total return for the period of less than one year is not annualized. (a) For the period ended March 31, 2004; unaudited. (b) The ratios do not include a reduction of expenses for custodian fee credits on cash balances maintained with the custodian. Including such custodian fee credits, the expense ratios for the SmallCap Equity Fund Class AAA, SmallCap Equity Fund Class A, SmallCap Equity Fund Class B, and SmallCap Equity Fund Class C would be 1.50%, 1.75%, 2.25% and 2.25%, respectively, for each period. (c) During the period, certain fees were reduced and/or reimbursed. If such fee reductions and/or reimbursements had not occurred, the ratio would have been as shown. (d) Per share amounts have been calculated using the monthly average shares method for fiscal 2001, 2002, 2003 and 2004. (e) From March 27, 2001 through September 30, 2001, the period through which Class B Shares were continuously outstanding. (f) Return of Capital. (g) Annualized. (h) From November 26, 2001 to September 30, 2002, the period through which Class A Shares and Class C Shares were continuously outstanding. See accompanying notes to financial statements. 27 THE GABELLI WESTWOOD FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- Selected data for a share of beneficial interest outstanding throughout each period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS ----------------------------------------- -------------------------------------- NET REALIZED NET ASSET AND TOTAL NET NET VALUE, NET UNREALIZED GAIN FROM NET REALIZED ASSET VALUE, PERIOD ENDED BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL END OF SEPTEMBER 30 OF PERIOD INCOME(E) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS PERIOD ------------ --------- ---------- --------------- ---------- ---------- ----------- ------------- ------------ REALTY FUND CLASS AAA 2004 (a) $11.87 $0.30 $2.23 $ 2.53 $(0.25) -- $(0.25) $14.15 2003 10.03 0.38 1.85 2.23 (0.39) -- (0.39) 11.87 2002 9.76 0.43 0.31 0.74 (0.47) -- (0.47) 10.03 2001 9.10 0.40 0.62 1.02 (0.36) -- (0.36) 9.76 2000 7.61 0.38 1.46 1.84 (0.35) -- (0.35) 9.10 1999 8.43 0.22 (0.81) (0.59) (0.23) -- (0.23) 7.61 CLASS A 2004 (a) $12.00 $0.28 $2.25 $ 2.53 $(0.17) -- $(0.17) $14.36 2003 10.04 0.38 1.85 2.23 (0.27) -- (0.27) 12.00 2002 9.76 0.41 0.30 0.71 (0.43) -- (0.43) 10.04 2001 (f) 9.24 0.02 0.70 0.72 (0.20) -- (0.20) 9.76 CLASS B 2004 (a) $12.04 $0.25 $2.28 $ 2.53 $(0.20) -- $(0.20) $14.37 2003 10.07 0.27 1.91 2.18 (0.21) -- (0.21) 12.04 2002 (g) 9.90 0.36 0.22 0.58 (0.41) -- (0.41) 10.07 CLASS C 2004 (a) $12.32 $0.24 $2.35 $ 2.59 $(0.20) -- $(0.20) $14.71 2003 10.26 0.32 1.99 2.31 (0.25) -- (0.25) 12.32 2002 (g) 9.90 0.09 0.49 0.58 (0.22) -- (0.22) 10.26
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA --------------------------------------------------- NET EXPENSES EXPENSES NET ASSETS, INVESTMENT NET OF BEFORE END OF INCOME (LOSS) WAIVERS/ WAIVERS/ PORTFOLIO PERIOD ENDED TOTAL PERIOD TO AVERAGE REIMBURSE- REIMBURSE- TURNOVER SEPTEMBER 30 RETURN+ (IN 000'S) NET ASSETS MENTS(B) MENTS(C) RATE ------------ ------- ----------- ------------- ---------- ---------- ---------- REALTY FUND CLASS AAA 2004 (a) 21.5% $18,213 4.63%(d) 1.55%(d) 1.91%(d) 10% 2003 22.8 13,923 3.70 1.56 2.05 33 2002 7.5 9,122 4.42 1.59 2.61 47 2001 11.4 3,526 4.27 1.64 4.51 64 2000 24.9 2,845 4.52 1.73 4.14 74 1999 (5.7) 1,784 4.32 1.60 3.68 55 CLASS A 2004 (a) 21.3% $ 6 4.38%(d) 1.80%(d) 2.16%(d) 10% 2003 22.6 10 3.45 1.81 2.30 33 2002 7.2 3 4.17 1.84 2.86 47 2001 (f) 7.8 3 4.02(d) 1.90(d) 4.77(d) 64 CLASS B 2004 (a) 21.2% $ 2 3.88%(d) 2.30%(d) 2.66%(d) 10% 2003 22.0 2 2.95 2.31 2.80 33 2002 (g) 5.8 10 3.67(d) 2.34(d) 3.36(d) 47 CLASS C 2004 (a) 21.1% $ 5 3.88%(d) 2.30%(d) 2.66%(d) 10% 2003 22.8 4 2.95 2.31 2.80 33 2002 (g) 5.8 0.1 3.67(d) 2.34(d) 3.36(d) 47
-------------------------- + Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including reinvestment of dividends. Total return for the period of less than one year is not annualized. (a) For the period ended March 31, 2004; unaudited. (b) The ratios do not include a reduction of expenses for custodian fee credits on cash balances maintained with the custodian. Including such custodian fee credits, the expense ratios for the Realty Fund Class AAA, Realty Fund Class A, Realty Fund Class B and Realty Fund Class C would be 1.50%, 1.75%, 2.25% and 2.25%, respectively, for each period. (c) During the period, certain fees were reduced and/or reimbursed. If such fee reductions and/or reimbursements had not occurred, the ratio would have been as shown. (d) Annualized. (e) Per share amounts have been calculated using the monthly average shares outstanding method for fiscal 2001, 2002, 2003 and 2004. (f) From May 9, 2001 through September 30, 2001, the period through which Class A Shares were continuously outstanding. (g) From November 26, 2001 through September 30, 2002, the period through which Class B and C Shares were continuously outstanding. See accompanying notes to financial statements. 28 THE GABELLI WESTWOOD FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- Selected data for a share of beneficial interest outstanding throughout each period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS ----------------------------------------- -------------------------------------- NET REALIZED NET ASSET AND TOTAL NET NET VALUE, NET UNREALIZED GAIN FROM NET REALIZED ASSET VALUE, PERIOD ENDED BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL END OF SEPTEMBER 30 OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS PERIOD ------------ --------- ---------- --------------- ---------- ---------- ----------- ------------- ------------ MIGHTY MITES SM FUND CLASS AAA 2004 (a) $13.42 $(0.02) $ 2.00 $ 1.98 -- $(0.16) $(0.16) $15.24 2003 11.29 (0.03) 2.25 2.22 $(0.04) (0.05) (0.09) 13.42 2002 10.99 0.03 0.37 0.40 (0.10) -- (0.10) 11.29 2001 14.00 0.12 (0.59) (0.47) (0.08) (2.46) (2.54) 10.99 2000 12.91 0.05 2.76 2.81 (0.10) (1.62) (1.72) 14.00 1999 9.70 0.10 3.20 3.30 (0.09) -- (0.09) 12.91 CLASS A 2004 (a) $13.46 $(0.04) $ 2.01 $ 1.97 -- $(0.16) $(0.16) $15.27 2003 11.36 (0.05) 2.26 2.21 $(0.06) (0.05) (0.11) 13.46 2002 (j) 10.97 (0.01) 0.40 0.39 -- -- -- 11.36 2001 14.00 0.09 (0.59) (0.50) (0.07) (2.46) (2.53) 10.97 2000 (e) 13.48 0.00(f) 0.52 0.52 -- -- -- 14.00 CLASS B 2004 (a) $13.30 $(0.08) $ 1.99 $ 1.91 -- $(0.16) $(0.16) $15.05 2003 11.24 (0.11) 2.22 2.11 -- (0.05) (0.05) 13.30 2002 10.96 (0.02) 0.34 0.32 $(0.04) -- (0.04) 11.24 2001 (h) 11.92 0.00(f) (0.96) (0.96) -- -- -- 10.96 CLASS C 2004 (a) $13.25 $(0.07) $ 1.97 $ 1.90 -- $(0.16) $(0.16) $14.99 2003 11.19 (0.12) 2.23 2.11 -- (0.05) (0.05) 13.25 2002 10.98 (0.06) 0.37 0.31 $(0.10) -- (0.10) 11.19 2001 (i) 12.25 0.00(f) (1.27) (1.27) -- -- -- 10.98
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA --------------------------------------------------- NET EXPENSES EXPENSES NET ASSETS, INVESTMENT NET OF BEFORE END OF INCOME (LOSS) WAIVERS/ WAIVERS/ PORTFOLIO PERIOD ENDED TOTAL PERIOD TO AVERAGE REIMBURSE- REIMBURSE- TURNOVER SEPTEMBER 30 RETURN+ (IN 000'S) NET ASSETS MENTS(B) MENTS(C) RATE ------------ ------- ----------- ------------- ---------- ---------- ---------- MIGHTY MITES SM FUND CLASS AAA 2004 (a) 14.8% $63,265 (0.30)%(d) 1.50%(d) 1.63%(d) 11% 2003 19.8 51,138 (0.21) 1.50 1.66 14 2002 3.6 31,103 0.27 1.50 1.78 18 2001 (2.8) 17,404 0.98 1.52 2.20 66 2000 23.0 15,165 0.38 1.50 2.01 66 1999 34.2 10,205 0.94 1.01 2.32 88 CLASS A 2004 (a) 14.7% $ 39 (0.55)%(d) 1.75%(d) 1.89%(d) 11% 2003 19.7 33 (0.46) 1.75 1.91 14 2002 (j) 3.6 1 0.02 1.75 2.03 18 2001 (3.1) 47 0.73 1.77 2.45 66 2000 (e) 3.9 49 0.13(d) 1.75(d) 2.26(d) 66 CLASS B 2004 (a) 14.4% $ 480 (1.05)%(d) 2.25%(d) 2.39%(d) 11% 2003 18.9 517 (0.96) 2.25 2.41 14 2002 2.9 4 (0.48) 2.25 2.53 18 2001 (h) (8.1) 4 0.23(d) 2.27(d) 2.95(d) 66 CLASS C 2004 (a) 14.4% $ 364 (1.05)%(d) 2.25%(d) 2.39%(d) 11% 2003 19.0 99 (0.96) 2.25 2.41 14 2002 2.8 59 (0.48) 2.25 2.53 18 2001 (i) (10.4) 19 0.23(d) 2.27(d) 2.95(d) 66
-------------------------- + Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including reinvestment of dividends. Total return for the period of less than one year is not annualized. (a) For the period ended March 31, 2004; unaudited. (b) The ratios do not include a reduction of expenses for custodian fee credits on cash balances maintained with the custodian. Including such custodian fee credits, the expense ratios for the Mighty Mites Fund Class AAA, Mighty Mites Fund Class A, Mighty Mites Fund Class B, and Mighty Mites Fund Class C would be 1.50%, 1.75%, 2.25%, and 2.25%, respectively, for each period. (c) During the period, certain fees were reduced and/or reimbursed. If such fee reductions and/or reimbursements had not occurred, the ratio would have been as shown. (d) Annualized. (e) Period from June 15, 2000 (offering date of Class A) to September 30, 2000. (f) Amount represents less than $0.005 per share. (g) Per share amounts have been calculated using the monthly average shares outstanding method for fiscal 2000, 2001, 2002, 2003 and 2004. (h) From June 6, 2001 through September 30, 2001, the period through which Class B Shares were continuously outstanding. (i) From August 3, 2001 through September 30, 2001, the period through which Class C Shares were continuously outstanding. (j) From November 26, 2001 through September 30, 2002, the period through which Class A Shares were continuously outstanding. From October 1, 2001 through November 25, 2001, no Class A Shares were outstanding. See accompanying notes to financial statements. 29 -------------------------------------------------------------------------------- GABELLI FUNDS AND YOUR PERSONAL PRIVACY --------------------------------------------------------------------------- WHO ARE WE? The Gabelli Funds are investment companies registered with the Securities and Exchange Commission under the Investment Company Act of 1940. We are managed by Gabelli Funds LLC, Gabelli Advisers, Inc. and Gabelli Fixed Income, LLC, which are affiliated with Gabelli Asset Management Inc. Gabelli Asset Management is a publicly-held company that has subsidiaries that provide investment advisory or brokerage services for a variety of clients. WHAT KIND OF NON-PUBLIC INFORMATION DO WE COLLECT ABOUT YOU IF YOU BECOME A GABELLI CUSTOMER? If you apply to open an account directly with us, you will be giving us some non-public information about yourself. The non-public information we collect about you is: o INFORMATION YOU GIVE US ON YOUR APPLICATION FORM. This could include your name, address, telephone number, social security number, bank account number, and other information. o INFORMATION ABOUT YOUR TRANSACTIONS WITH US, ANY TRANSACTIONS WITH OUR AFFILIATES AND TRANSACTIONS WITH THE ENTITIES WE HIRE TO PROVIDE SERVICES TO YOU. This would include information about the shares that you buy or redeem, and the deposits and withdrawals that you make. If we hire someone else to provide services--like a transfer agent--we will also have information about the transactions that you conduct through them. WHAT INFORMATION DO WE DISCLOSE AND TO WHOM DO WE DISCLOSE IT? We do not disclose any non-public personal information about our customers or former customers to anyone, other than our affiliates, our service providers who need to know such information and as otherwise permitted by law. If you want to find out what the law permits, you can read the privacy rules adopted by the Securities and Exchange Commission. They are in volume 17 of the Code of Federal Regulations, Part 248. The Commission often posts information about its regulations on its web site, www.sec.gov. WHAT DO WE DO TO PROTECT YOUR PERSONAL INFORMATION? We restrict access to non-public personal information about you to the people who need to know that information in order to provide services to you or the Fund and to ensure that we are complying with the laws governing the securities business. We maintain physical, electronic, and procedural safeguards to keep your personal information confidential. -------------------------------------------------------------------------------- THE GABELLI WESTWOOD FUNDS ================================= One Corporate Center Rye, New York 10580-1422 GENERAL AND ACCOUNT INFORMATION: 800-GABELLI [800-422-3554] fax: 914-921-5118 website: www.gabelli.com e-mail: info@gabelli.com Board of Trustees Susan M. Byrne James P. Conn CHAIRMAN AND CEO FORMER CHIEF INVESTMENT OFFICER WESTWOOD HOLDINGS FINANCIAL SECURITY ASSURANCE GROUP HOLDINGS LTD. Karl Otto Pohl Werner J. Roeder, MD FORMER PRESIDENT VICE PRESIDENT/MEDICAL AFFAIRS DEUTCHE BUNDESBANK LAWRENCE HOSPITAL CENTER Anthony J. Colavita Salvatore J. Zizza ATTORNEY-AT-LAW CHAIRMAN ANTHONY J. COLAVITA, P.C. HALLMARK ELECTRICAL SUPPLIES CORP. Officers Susan M. Byrne Bruce N. Alpert PRESIDENT AND CHIEF VICE PRESIDENT AND TREASURER INVESTMENT OFFICER James E. McKee Patricia R. Fraze SECRETARY VICE PRESIDENT INVESTMENT ADVISER Gabelli Advisers, Inc. INVESTMENT SUB-ADVISER Westwood Management Corporation DISTRIBUTOR Gabelli & Company, Inc. CUSTODIAN The Bank of New York LEGAL COUNSEL Paul, Hastings, Janofsky & Walker LLP -------------------------------------------------------------------------------- This report is submitted for the information of the shareholders of The Gabelli Westwood Funds. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. -------------------------------------------------------------------------------- GABWWQ104SR THE GABELLI WESTWOOD FUNDS EQUITY FUND BALANCED FUND INTERMEDIATE BOND FUND SMALLCAP EQUITY FUND REALTY FUND MIGHTY MITES SM FUND SEMI-ANNUAL REPORT MARCH 31, 2004 ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT FUND AND AFFILIATED PURCHASERS. Not applicable. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. The Board of Trustees has a Nominating Committee comprised of three "non-interested" (as such term is defined by the Investment Company Act of 1940, as amended) Trustees, namely Anthony J. Colavita, James P. Conn and Werner J. Roeder. The Nominating Committee is responsible for identifying individuals believed to be qualified to become Board members in the event that a position is vacated or created. The Nominating Committee will consider Trustee candidates recommended by shareholders. In considering candidates submitted by shareholders, the Nominating Committee will take into consideration the needs of the Board of Trustees, the qualifications of the candidate and the interests of shareholders. The Nominating Committee may also take into consideration the number of shares held by the recommending shareholder and the length of time that such shares have been held. To have a candidate considered by the Nominating Committee, a shareholder must submit the recommendation in writing and must include the following information: o The name of the shareholder and evidence of the person's ownership of shares of the Trust, including the number of shares owned and the length of time of ownership; o The name of the candidate, the candidate's resume or a listing of his or her qualifications to be a Trustee of the Trust and the person's consent to be named as a Trustee if selected by the Nominating Committee and nominated by the Board of Trustees; and o If requested by the Nominating Committee, a completed and signed Trustees questionnaire. The shareholder recommendation and information described above must be sent to the Trust's Secretary c/o Gabelli Funds, LLC, James E. McKee and must be received by the Secretary no less than 120 days prior to the anniversary date of the Trust's most recent annual meeting of shareholders or, if the meeting has moved by more than 30 days, a reasonable amount of time before the meeting. The Nominating Committee believes that the minimum qualifications for serving as a Trustee of the Trust are that the individual demonstrate, by significant accomplishment in his or her field, an ability to make a meaningful contribution to the Board of Trustees' oversight of the business and affairs of the Trust and have an impeccable record and reputation for honest and ethical conduct in both his or her professional and personal activities. In addition, the Nominating Committee examines a candidate's specific experiences and skills, time availability in light of other commitments, potential conflicts of interest and independence from management and the Trust. The Nominating Committee also seeks to have the Board of Trustees represent a diversity of backgrounds and experience. The Trust's Nominating Committee has not adopted a charter. In the event that a charter is adopted in the future, it will be available at that time on the Trust's website (www.gabelli.com). ITEM 10. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Fund Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 11. EXHIBITS. (a)(1) Not applicable. (a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. (a)(3) Not yet effective. (b) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Fund Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (registrant) The Gabelli Westwood Funds ------------------------------------------------------------ By (Signature and Title)* /s/ Bruce N. Alpert -------------------------------------------- Bruce N. Alpert, Principal Executive Officer Date December 21, 2004 ------------------------------------------------------------------ Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Fund Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Bruce N. Alpert -------------------------------------------- Bruce N. Alpert, Principal Executive Officer & Principal Financial Officer Date December 21, 2004 ------------------------------------------------------------------ * Print the name and title of each signing officer under his or her signature.