N-CSRS 1 westwood_ncsrs308.txt THE GABELLI WESTWOOD FUNDS, 3-31-08 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-04719 --------- The GAMCO Westwood Funds --------------------------------------------------------- (Exact name of registrant as specified in charter) One Corporate Center Rye, New York 10580-1422 --------------------------------------------------------- (Address of principal executive offices) (Zip code) Bruce N. Alpert Gabelli Funds, LLC One Corporate Center Rye, New York 10580-1422 --------------------------------------------------------- (Name and address of agent for service) registrant's telephone number, including area code: 1-800-422-3554 -------------- Date of fiscal year end: September 30 ------------ Date of reporting period: March 31, 2008 -------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. The Report to Shareholders is attached herewith. GAMCO WESTWOOD FUNDS ----------------------------------------------------- MIGHTY MITES(SM) FUND ----------------------------------------------------- ----------------------------------------------------- EQUITY FUND ----------------------------------------------------- ----------------------------------------------------- BALANCED FUND ----------------------------------------------------- ----------------------------------------------------- INTERMEDIATE BOND FUND ----------------------------------------------------- ----------------------------------------------------- SMALLCAP EQUITY FUND ----------------------------------------------------- ----------------------------------------------------- INCOME FUND ----------------------------------------------------- SEMI-ANNUAL REPORT MARCH 31, 2008 GAMCO WESTWOOD FUNDS (UNAUDITED)
CLASS AAA SHARES --------------------------------------------------------------------- Average Annual Returns - March 31, 2008 (a) Current Expense Ratio after Gross Adviser Maximum Since Expense Reimburse- Sales 1 Year 5 Year 10 Year Inception Ratio ments Charge ---------------------------------------------------------------------- Mighty Mites(SM) ... (7.12)% 13.93% N/A 12.32% 1.72% 1.72% None Equity ............. 1.97 15.30 6.51 11.64 1.52 1.52 None Balanced ........... 4.65 10.96 6.26 10.15 1.27 1.27 None Intermediate Bond .. 6.78 3.26 4.79 5.77 1.64 1.00 None SmallCap Equity .... (13.54) 13.12 2.39 6.53 2.24 1.50 None Income ............. (9.33) 13.43 8.73 8.80 2.20 1.50 None CLASS A SHARES ---------------------------------------------------------------------- Average Annual Returns - March 31, 2008 (a)(b)(e) Current Expense Ratio after Gross Adviser Maximum Since Expense Reimburse- Sales 1 Year 5 Year 10 Year Inception Ratio ments Charge ---------------------------------------------------------------------- Mighty Mites(SM) ... (11.05)% 12.73% N/A 11.68% 1.97% 1.97% 4.00% Equity ............. (2.22) 14.09 5.81 11.21 1.77 1.77 4.00 Balanced ........... 0.32 9.79 5.56 9.61 1.52 1.52 4.00 Intermediate Bond .. 2.40 2.32 4.29 5.46 1.74 1.10 4.00 SmallCap Equity .... (17.26) 11.96 1.88 6.05 2.49 1.75 4.00 Income ............. (13.03) 12.25 8.11 8.21 2.45 1.75 4.00
CLASS B SHARES ---------------------------------------------------------------------- Average Annual Returns - March 31, 2008 (a)(c)(e) Current Expense Ratio after Gross Adviser Maximum Since Expense Reimburse- Sales 1 Year 5 Year 10 Year Inception Ratio ments Charge ---------------------------------------------------------------------- Mighty Mites(SM) ... (12.38)% 12.84% N/A 11.75% 2.47% 2.47% 5.00% Equity ............. (3.74) 14.21 5.92 11.27 2.27 2.27 5.00 Balanced ........... (1.17) 9.85 5.66 9.67 2.02 2.02 5.00 Intermediate Bond .. 0.99 2.15 4.22 5.42 2.39 1.75 5.00 SmallCap Equity .... (18.45) 12.07 1.87 6.05 2.99 2.25 5.00 Income ............. (15.13) 12.24 8.21 8.31 2.94 2.25 5.00 CLASS C SHARES ---------------------------------------------------------------------- Average Annual Returns - March 31, 2008 (a)(d)(e) Current Expense Ratio after Gross Adviser Maximum Since Expense Reimburse- Sales 1 Year 5 Year 10 Year Inception Ratio ments Charge ---------------------------------------------------------------------- Mighty Mites(SM) ... (8.65)% 13.11% N/A 11.76% 2.47% 2.47% 1.00% Equity ............. 0.26 14.45 5.92 11.27 2.27 2.27 1.00 Balanced ........... 2.83 10.12 5.71 9.70 2.02 2.02 1.00 Intermediate Bond .. 6.67 2.51 4.28 5.46 2.39 1.75 1.00 SmallCap Equity .... (15.06) 11.94 1.82 6.00 2.99 2.25 1.00 Income ............. (10.81) 12.69 8.36 8.44 2.94 2.25 1.00
CLASS I SHARES ---------------------------------------------------------------------- Average Annual Returns - March 31, 2008 (a)(e) Current Expense Ratio after Gross Adviser Maximum Since Expense Reimburse- Sales 1 Year 5 Year 10 Year Inception Ratio ments Charge ---------------------------------------------------------------------- Mighty Mites(SM).... (7.06)% 13.95% N/A 12.33% 1.47% 1.47% None Equity ............. 2.07 15.32 6.52 11.64 1.27 1.27 None Balanced ........... 4.71 10.98 6.26 10.15 1.02 1.02 None Intermediate Bond .. 6.70 3.25 4.78 5.76 1.39 0.75 None SmallCap Equity .... (13.54) 13.12 2.39 6.53 1.99 1.25 None Income ............. (9.27) 13.45 8.73 8.80 1.95 1.25 None
(a) RETURNS REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS. TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN SHARE PRICE AND REINVESTMENT OF DISTRIBUTIONS AND ARE NET OF EXPENSES. INVESTMENT RETURNS AND THE PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE. WHEN SHARES ARE REDEEMED, THEY MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. FOR THE INTERMEDIATE BOND, SMALLCAP EQUITY, AND INCOME FUNDS, THE ADVISER REIMBURSED EXPENSES TO LIMIT THE EXPENSE RATIO. HAD SUCH LIMITATIONS NOT BEEN IN PLACE, RETURNS WOULD HAVE BEEN LOWER. THE CONTRACTUAL EXPENSE LIMITATIONS ARE IN EFFECT THROUGH SEPTEMBER 30, 2008 AND ARE RENEWABLE ANNUALLY BY THE ADVISER. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA PRESENTED. VISIT WWW.GABELLI.COM FOR PERFORMANCE INFORMATION AS OF THE MOST RECENT MONTH END. INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE FUND BEFORE INVESTING. THE PROSPECTUS CONTAINS MORE INFORMATION ABOUT THIS AND OTHER MATTERS AND SHOULD BE READ CAREFULLY BEFORE INVESTING. (b) INCLUDES THE EFFECT OF THE MAXIMUM 4.0% SALES CHARGE AT THE BEGINNING OF THE PERIOD. (c) PERFORMANCE RESULTS INCLUDE THE DEFERRED SALES CHARGES FOR THE CLASS B SHARES UPON REDEMPTION AT THE END OF THE ONE YEAR AND FIVE YEAR PERIODS OF 5% AND 2%, RESPECTIVELY, OF THE FUND'S NET ASSET VALUES ("NAV") PER SHARE AT THE TIME OF PURCHASE OR SALE, WHICHEVER IS LOWER. (d) PERFORMANCE RESULTS INCLUDE THE DEFERRED SALES CHARGE FOR THE CLASS C SHARES UPON REDEMPTION AT THE END OF THE ONE YEAR PERIOD OF 1% OF THE FUND'S NAV PER SHARE AT THE TIME OF PURCHASE OR SALE, WHICHEVER IS LOWER. (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, CLASS C SHARES, AND CLASS I 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 PERFORMANCE FOR THE CLASS I SHARES WOULD HAVE BEEN HIGHER DUE TO THE LOWER EXPENSES ASSOCIATED WITH THIS CLASS OF SHARES. THE INCEPTION DATES FOR THE CLASS AAA SHARES AND THE INITIAL ISSUANCE DATES FOR THE CLASS A SHARES, CLASS B SHARES, CLASS C SHARES, AND CLASS I SHARES AFTER WHICH SHARES REMAINED CONTINUOUSLY OUTSTANDING ARE LISTED BELOW.
Class AAA Shares Class A Shares Class B Shares Class C Shares Class I Shares ---------------- -------------- -------------- -------------- -------------- Mighty Mites(SM) ... 05/11/98 11/26/01 06/06/01 08/03/01 01/11/08 Equity ............. 01/02/87 01/28/94 03/27/01 02/13/01 01/11/08 Balanced ........... 10/01/91 04/06/93 03/27/01 09/25/01 01/11/08 Intermediate Bond .. 10/01/91 07/26/01 03/27/01 10/22/01 01/11/08 SmallCap Equity .... 04/15/97 11/26/01 03/27/01 11/26/01 01/11/08 Income ............. 09/30/97 05/09/01 11/26/01 11/26/01 01/11/08
2 GAMCO WESTWOOD FUNDS DISCLOSURE OF FUND EXPENSES (UNAUDITED) For the Six Month Period from October 1, 2007 through March 31, 2008 EXPENSE TABLE -------------------------------------------------------------------------------- We believe it is important for you to understand the impact of fees and expenses regarding your investment. All mutual funds have operating expenses. As a shareholder of a fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund's gross income, directly reduce the investment return of a fund. When a fund's expenses are expressed as a percentage of its average net assets, this figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The Expense Table below illustrates your Fund's costs in two ways: ACTUAL FUND RETURN: This section provides information about actual account values and actual expenses. You may use this section to help you to estimate the actual expenses that you paid over the period after any fee waivers and expense reimbursements. The "Ending Account Value" shown is derived from the Fund's ACTUAL return during the past six months, and the "Expenses Paid During Period" shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your Fund under the heading "Expenses Paid During Period" to estimate the expenses you paid during this period. HYPOTHETICAL 5% RETURN: This section provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio. It assumes a hypothetical annualized return of 5% before expenses during the period shown. In this case - because the hypothetical return used is NOT the Fund's actual return - the results do not apply to your investment and you cannot use the hypothetical account value and expense to estimate the actual ending account balance or expenses you paid for the period. This example is useful in making comparisons of the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads), redemption fees, or exchange fees, if any, which are described in the Prospectus. If these costs were applied to your account, your costs would be higher. Therefore, the 5% hypothetical return is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Beginning Ending Annualized Expenses Account Value Account Value Expense Paid During 10/01/07 03/31/08 Ratio Period* ------------------------------------------------------------------------------------------------ GAMCO WESTWOOD MIGHTY MITES(SM) FUND ------------------------------------------------------------------------------------------------ ACTUAL FUND RETURN Class AAA $ 1,000.00 $ 884.60 1.66% $ 7.82 Class A $ 1,000.00 $ 882.80 1.91% $ 8.99 Class B $ 1,000.00 $ 881.30 2.41% $ 11.33 Class C $ 1,000.00 $ 880.90 2.41% $ 11.33 Class I** $ 1,000.00 $ 885.30 1.42% $ 2.85 HYPOTHETICAL 5% RETURN Class AAA $ 1,000.00 $ 1,016.70 1.66% $ 8.37 Class A $ 1,000.00 $ 1,015.45 1.91% $ 9.62 Class B $ 1,000.00 $ 1,012.95 2.41% $ 12.13 Class C $ 1,000.00 $ 1,012.95 2.41% $ 12.13 Class I** $ 1,000.00 $ 1,007.64 1.42% $ 3.04 ------------------------------------------------------------------------------------------------ GAMCO WESTWOOD EQUITY FUND ------------------------------------------------------------------------------------------------ ACTUAL FUND RETURN Class AAA $ 1,000.00 $ 922.80 1.47% $ 7.07 Class A $ 1,000.00 $ 922.10 1.72% $ 8.27 Class B $ 1,000.00 $ 919.20 2.22% $ 10.65 Class C $ 1,000.00 $ 919.20 2.22% $ 10.65 Class I** $ 1,000.00 $ 923.70 1.22% $ 2.50 HYPOTHETICAL 5% RETURN Class AAA $ 1,000.00 $ 1,017.65 1.47% $ 7.41 Class A $ 1,000.00 $ 1,016.40 1.72% $ 8.67 Class B $ 1,000.00 $ 1,013.90 2.22% $ 11.18 Class C $ 1,000.00 $ 1,013.90 2.22% $ 11.18 Class I** $ 1,000.00 $ 1,008.06 1.22% $ 2.61 ------------------------------------------------------------------------------------------------ GAMCO WESTWOOD BALANCED FUND ------------------------------------------------------------------------------------------------ ACTUAL FUND RETURN Class AAA $ 1,000.00 $ 973.10 1.21% $ 5.97 Class A $ 1,000.00 $ 972.20 1.46% $ 7.20 Class B $ 1,000.00 $ 969.10 1.96% $ 9.65 Class C $ 1,000.00 $ 969.20 1.96% $ 9.65 Class I** $ 1,000.00 $ 973.70 0.96% $ 2.02 HYPOTHETICAL 5% RETURN Class AAA $ 1,000.00 $ 1,018.95 1.21% $ 6.11 Class A $ 1,000.00 $ 1,017.70 1.46% $ 7.36 Class B $ 1,000.00 $ 1,015.20 1.96% $ 9.87 Class C $ 1,000.00 $ 1,015.20 1.96% $ 9.87 Class I** $ 1,000.00 $ 1,008.62 0.96% $ 2.06 ------------------------------------------------------------------------------------------------ GAMCO WESTWOOD INTERMEDIATE BOND FUND ------------------------------------------------------------------------------------------------ ACTUAL FUND RETURN Class AAA $ 1,000.00 $ 1,049.00 1.00% $ 5.12 Class A $ 1,000.00 $ 1,048.40 1.10% $ 5.63 Class B $ 1,000.00 $ 1,045.20 1.75% $ 8.95 Class C $ 1,000.00 $ 1,045.00 1.75% $ 8.95 Class I** $ 1,000.00 $ 1,048.30 0.75% $ 1.64 HYPOTHETICAL 5% RETURN Class AAA $ 1,000.00 $ 1,020.00 1.00% $ 5.05 Class A $ 1,000.00 $ 1,019.50 1.10% $ 5.55 Class B $ 1,000.00 $ 1,016.25 1.75% $ 8.82 Class C $ 1,000.00 $ 1,016.25 1.75% $ 8.82 Class I** $ 1,000.00 $ 1,009.07 0.75% $ 1.61 ------------------------------------------------------------------------------------------------ GAMCO WESTWOOD SMALLCAP EQUITY FUND ------------------------------------------------------------------------------------------------ ACTUAL FUND RETURN Class AAA $ 1,000.00 $ 839.20 1.50% $ 6.90 Class A $ 1,000.00 $ 838.10 1.75% $ 8.04 Class B $ 1,000.00 $ 835.90 2.25% $ 10.33 Class C $ 1,000.00 $ 835.80 2.25% $ 10.33 Class I** $ 1,000.00 $ 839.20 1.25% $ 2.45 HYPOTHETICAL 5% RETURN Class AAA $ 1,000.00 $ 1,017.50 1.50% $ 7.57 Class A $ 1,000.00 $ 1,016.25 1.75% $ 8.82 Class B $ 1,000.00 $ 1,013.75 2.25% $ 11.33 Class C $ 1,000.00 $ 1,013.75 2.25% $ 11.33 Class I** $ 1,000.00 $ 1,008.00 1.25% $ 2.68 ------------------------------------------------------------------------------------------------ GAMCO WESTWOOD INCOME FUND ------------------------------------------------------------------------------------------------ ACTUAL FUND RETURN Class AAA $ 1,000.00 $ 898.50 1.50% $ 7.12 Class A $ 1,000.00 $ 905.10 1.75% $ 8.33 Class B $ 1,000.00 $ 901.90 2.25% $ 10.70 Class C $ 1,000.00 $ 901.90 2.25% $ 10.70 Class I** $ 1,000.00 $ 899.10 1.25% $ 2.53 HYPOTHETICAL 5% RETURN Class AAA $ 1,000.00 $ 1,017.50 1.50% $ 7.57 Class A $ 1,000.00 $ 1,016.25 1.75% $ 8.82 Class B $ 1,000.00 $ 1,013.75 2.25% $ 11.33 Class C $ 1,000.00 $ 1,013.75 2.25% $ 11.33 Class I** $ 1,000.00 $ 1,008.00 1.25% $ 2.68
* Expenses are equal to the Fund's annualized expense ratio for the last six months multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 366. ** Class I Shares were first issued on January 11, 2008. Account values and expense ratios are calculated from January 11, 2008 through March 31, 2008. 3 SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED) The following tables present portfolio holdings as a percent of total net assets as of March 31, 2008: -------------------------------------------------------------------------------- GAMCO WESTWOOD MIGHTY MITES(SM) FUND -------------------------------------------------------------------------------- U.S. Government Obligations ........................................... 31.1% Financial Services .................................................... 10.0% Health Care ........................................................... 7.2% Equipment and Supplies ................................................ 6.3% Diversified Industrial ................................................ 4.7% Automotive: Parts and Accessories ..................................... 3.9% Specialty Chemicals ................................................... 3.1% Business Services ..................................................... 2.7% Telecommunications .................................................... 2.5% Energy and Utilities: Natural Gas ..................................... 2.2% Broadcasting .......................................................... 1.8% Energy and Utilities: Integrated ...................................... 1.8% Energy and Utilities: Services ........................................ 1.8% Consumer Products ..................................................... 1.7% Entertainment ......................................................... 1.7% Food and Beverage ..................................................... 1.7% Real Estate ........................................................... 1.5% Electronics ........................................................... 1.5% Aviation: Parts and Services .......................................... 1.4% Manufactured Housing and Recreational Vehicles ........................ 1.3% Hotels and Gaming ..................................................... 1.3% Energy and Utilities: Water ........................................... 1.1% Pharmaceuticals ....................................................... 0.9% Energy and Utilities: Electric ........................................ 0.9% Closed-End Business Development Company ............................... 0.7% Wireless Communications ............................................... 0.7% Transportation ........................................................ 0.6% Agriculture ........................................................... 0.6% Restaurants ........................................................... 0.5% Retail ................................................................ 0.5% Computer Software and Services ........................................ 0.5% Building and Construction ............................................. 0.4% Paper and Forest Products ............................................. 0.3% Aerospace ............................................................. 0.3% Communications Equipment .............................................. 0.2% Publishing ............................................................ 0.2% Environmental Control ................................................. 0.1% Metals and Mining ..................................................... 0.0% Cable ................................................................. 0.0% Consumer Services ..................................................... 0.0% Educational Services .................................................. 0.0% Other Assets and Liabilities (Net) .................................... 0.3% ------ 100.0% ====== -------------------------------------------------------------------------------- GAMCO WESTWOOD EQUITY FUND -------------------------------------------------------------------------------- Energy: Oil ........................................................... 11.2% Financial Services .................................................... 9.7% Energy: Integrated .................................................... 9.7% Business Services ..................................................... 7.8% Consumer Products ..................................................... 7.6% Banking ............................................................... 7.2% Telecommunications .................................................... 5.2% Diversified Industrial ................................................ 5.0% Computer Software and Services ........................................ 5.0% Health Care ........................................................... 4.8% Retail ................................................................ 2.8% Real Estate Investment Trusts ......................................... 2.6% Entertainment ......................................................... 2.6% Communications Equipment .............................................. 2.5% Metals and Mining ..................................................... 2.4% Computer Hardware ..................................................... 2.4% Aviation: Parts and Services .......................................... 2.4% Food and Beverage ..................................................... 1.9% Energy: Natural Gas ................................................... 1.5% Electronics ........................................................... 1.3% Transportation ........................................................ 1.1% Other Assets and Liabilities (Net) .................................... 3.3% ------ 100.0% ====== -------------------------------------------------------------------------------- GAMCO WESTWOOD BALANCED FUND -------------------------------------------------------------------------------- U.S. Government Agency Obligations .................................... 16.0% U.S. Government Obligations ........................................... 10.1% Energy: Oil ........................................................... 8.7% Banking ............................................................... 6.0% Financial Services .................................................... 5.9% Business Services ..................................................... 4.7% Consumer Products ..................................................... 4.6% Telecommunications .................................................... 4.1% Diversified Industrial ................................................ 3.9% Energy: Integrated .................................................... 3.2% Health Care ........................................................... 3.0% Utilities ............................................................. 3.0% Computer Software and Services ........................................ 2.9% Retail ................................................................ 2.6% Computer Hardware ..................................................... 2.0% Food and Beverage ..................................................... 1.7% Metals and Mining ..................................................... 1.6% Energy: Natural Gas ................................................... 1.6% Aviation: Parts and Services .......................................... 1.6% Real Estate Investment Trusts ......................................... 1.6% Entertainment ......................................................... 1.5% Communications Equipment .............................................. 1.5% Transportation ........................................................ 1.4% Electronics ........................................................... 1.3% Brokerage ............................................................. 1.0% Other Assets and Liabilities (Net) .................................... 4.5% ------ 100.0% ====== 4 SUMMARY OF PORTFOLIO HOLDINGS (CONTINUED) (UNAUDITED) -------------------------------------------------------------------------------- GAMCO WESTWOOD INTERMEDIATE BOND FUND -------------------------------------------------------------------------------- U.S. Government Obligations .......................................... 32.9% Corporate Bonds ...................................................... 29.7% U.S. Government Agency Obligations ................................... 27.1% Other Assets and Liabilities (Net) ................................... 10.3% ------ 100.0% ====== -------------------------------------------------------------------------------- GAMCO WESTWOOD SMALLCAP EQUITY FUND -------------------------------------------------------------------------------- Business Services .................................................... 15.3% Diversified Industrial ............................................... 14.3% Health Care .......................................................... 9.1% Consumer Products .................................................... 8.8% Computer Software and Services ....................................... 7.1% Financial Services ................................................... 6.8% Aerospace ............................................................ 6.2% Food and Beverage .................................................... 5.9% Equipment and Supplies ............................................... 5.4% Specialty Chemicals .................................................. 4.9% Hotels and Gaming .................................................... 4.6% Electronics .......................................................... 2.8% Automotive: Parts and Accessories .................................... 2.6% Energy and Utilities ................................................. 2.3% Telecommunications ................................................... 2.2% U.S. Government Obligations .......................................... 1.8% Real Estate Investment Trusts ........................................ 1.0% Other Assets and Liabilities (Net) ................................... (1.1)% ------- 100.0% ======= -------------------------------------------------------------------------------- GAMCO WESTWOOD INCOME FUND -------------------------------------------------------------------------------- Financial Services ................................................... 19.4% U.S. Government Agency Obligations ................................... 12.6% Banking .............................................................. 11.8% U.S. Government Obligations .......................................... 8.0% Energy and Utilities: Oil ............................................ 6.4% Food and Beverage .................................................... 6.3% Business Services .................................................... 5.6% Energy and Utilities: Integrated ..................................... 5.2% Telecommunications ................................................... 4.4% Health Care .......................................................... 4.4% Energy and Utilities: Services ....................................... 2.9% Diversified Industrial ............................................... 2.3% Specialty Chemicals .................................................. 2.1% Broadcasting ......................................................... 2.0% Computer Software and Services ....................................... 1.8% Energy and Utilities: Natural Gas .................................... 1.8% Electronics .......................................................... 1.5% Retail ............................................................... 1.3% Metals and Mining .................................................... 1.2% Other Assets and Liabilities (Net) ................................... (1.0)% ------- 100.0% ======= THE FUNDS FILE A COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS WITH THE SECURITIES AND EXCHANGE COMMISSION (THE "SEC") FOR THE FIRST AND THIRD QUARTERS OF EACH FISCAL YEAR ON FORM N-Q, THE LAST OF WHICH WAS FILED FOR THE QUARTER ENDED DECEMBER 31, 2007. SHAREHOLDERS MAY OBTAIN THIS INFORMATION AT WWW.GABELLI.COM OR BY CALLING THE FUND AT 800-GABELLI (800-422-3554). THE FUNDS' FORM N-Q IS AVAILABLE ON THE SEC'S WEBSITE AT WWW.SEC.GOV AND MAY ALSO BE REVIEWED AND COPIED AT THE SEC'S PUBLIC REFERENCE ROOM IN WASHINGTON, DC. INFORMATION ON THE OPERATION OF THE PUBLIC REFERENCE ROOM MAY BE OBTAINED BY CALLING 1-800-SEC-0330. PROXY VOTING Each Fund files Form N-PX with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. A description of the Funds' proxy voting policies, procedures, and how the Funds voted proxies relating to portfolio securities are available without charge, upon request, by (i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC's website at www.sec.gov. -------------------------------------------------------------------------------- We have separated the portfolio managers' commentaries from the financial statements and investment portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that the content of the portfolio managers' commentaries are unrestricted. The financial statements and investment portfolio are mailed separately from the commentaries. Both the commentaries and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com/funds. -------------------------------------------------------------------------------- 5 GAMCO WESTWOOD MIGHTY MITES(SM) FUND SCHEDULE OF INVESTMENTS -- MARCH 31, 2008 (UNAUDITED) --------------------------------------------------------------------------------
MARKET SHARES COST VALUE ------------ ------------ --------------- COMMON STOCKS -- 67.5% AEROSPACE -- 0.3% 15,000 Herley Industries Inc.+ .......................................................... $ 180,664 $ 155,100 500 Innovative Solutions & Support Inc.+ ............................................. 8,973 5,285 ------------ --------------- 189,637 160,385 ------------ --------------- AGRICULTURE -- 0.6% 225 J.G. Boswell Co. ................................................................. 144,676 208,125 540 Limoneira Co. .................................................................... 134,325 125,280 ------------ --------------- 279,001 333,405 ------------ --------------- AUTOMOTIVE: PARTS AND ACCESSORIES -- 3.0% 200 Amerityre Corp.+ ................................................................. 1,108 404 50,000 Earl Scheib Inc.+ ................................................................ 243,865 132,000 24,000 Midas Inc.+ ...................................................................... 357,950 412,560 21,000 Proliance International Inc.+ .................................................... 98,964 38,220 1,000 Puradyn Filter Technologies Inc.+ ................................................ 1,645 320 197,700 Standard Motor Products Inc. ..................................................... 1,621,154 1,209,924 ------------ --------------- 2,324,686 1,793,428 ------------ --------------- AVIATION: PARTS AND SERVICES -- 1.4% 800 Curtiss-Wright Corp. ............................................................. 8,610 33,184 6,200 Kaman Corp. ...................................................................... 92,246 175,398 265,410 The Fairchild Corp., Cl. A+ ...................................................... 920,039 605,135 ------------ --------------- 1,020,895 813,717 ------------ --------------- BROADCASTING -- 1.8% 50,000 Acme Communications Inc.+ ........................................................ 299,086 101,000 26,000 Beasley Broadcast Group Inc., Cl. A .............................................. 245,872 92,560 50,000 Citadel Broadcasting Corp. ....................................................... 77,290 83,000 44,000 Crown Media Holdings Inc., Cl. A+ ................................................ 348,173 227,480 25,000 Equity Media Holdings Corp.+ ..................................................... 126,560 40,500 10,000 Fisher Communications Inc.+ ...................................................... 413,617 311,600 924 Granite Broadcasting Corp.+ ...................................................... 24,812 15,715 23,000 Gray Television Inc. ............................................................. 212,749 130,870 12,000 Salem Communications Corp., Cl. A ................................................ 124,055 48,120 38,000 Young Broadcasting Inc., Cl. A+ .................................................. 263,049 28,880 ------------ --------------- 2,135,263 1,079,725 ------------ --------------- BUILDING AND CONSTRUCTION -- 0.4% 4,000 Huttig Building Products Inc.+ ................................................... 13,358 9,280 8,500 Material Sciences Corp.+ ......................................................... 104,514 65,960 6,200 The Monarch Cement Co. ........................................................... 146,839 186,000 ------------ --------------- 264,711 261,240 ------------ --------------- BUSINESS SERVICES -- 2.7% 150,000 AMICAS Inc.+ ..................................................................... 709,160 337,500 28,000 ANC Rental Corp.+ ................................................................ 840 5 103 Chazak Value Corp.+ .............................................................. 0 200 99,000 Edgewater Technology Inc.+ ....................................................... 474,450 521,730 67,500 Nashua Corp.+ .................................................................... 551,362 741,825 500 StarTek Inc.+ .................................................................... 8,375 4,605 ------------ --------------- 1,744,187 1,605,865 ------------ --------------- CABLE -- 0.0% 90,000 Adelphia Communications Corp., Cl. A+ (a) ........................................ 15,750 0 90,000 Adelphia Communications Corp., Cl. A, Escrow+ (a) ................................ 0 0 2,500 Outdoor Channel Holdings Inc.+ ................................................... 24,825 18,375 ------------ --------------- 40,575 18,375 ------------ --------------- CLOSED-END BUSINESS DEVELOPMENT COMPANY -- 0.7% 27,000 MVC Capital Inc. ................................................................. 270,762 411,480 ------------ ---------------
MARKET SHARES COST VALUE ------------ ------------ --------------- COMMUNICATIONS EQUIPMENT -- 0.2% 10,000 Communications Systems Inc. ...................................................... $ 84,990 $ 107,700 1,000 Technical Communications Corp.+ .................................................. 6,727 5,190 40,000 ViewCast.com Inc.+ ............................................................... 18,600 16,000 ------------ --------------- 110,317 128,890 ------------ --------------- COMPUTER SOFTWARE AND SERVICES -- 0.5% 19,000 Furmanite Corp.+ ................................................................. 79,436 161,500 1,910 Gemalto NV+ ...................................................................... 10,945 55,588 834 Prosoft Learning Corp.+ .......................................................... 11,216 3 850,000 StorageNetworks Inc., Escrow+ (a) ................................................ 0 25,500 3,000 Tyler Technologies Inc.+ ......................................................... 12,075 41,940 ------------ --------------- 113,672 284,531 ------------ --------------- CONSUMER PRODUCTS -- 1.7% 17,000 Adams Golf Inc.+ ................................................................. 115,878 141,100 1,000 Ducati Motor Holding SpA, ADR+ ................................................... 15,665 26,605 5,000 Levcor International Inc.+ ....................................................... 15,701 1,450 4,500 Marine Products Corp. ............................................................ 4,609 36,360 300 National Presto Industries Inc. .................................................. 8,618 15,720 133,400 Schiff Nutrition International Inc. .............................................. 259,614 799,066 41,530 Syratech Corp.+ .................................................................. 10,383 830 ------------ --------------- 430,468 1,021,131 ------------ --------------- CONSUMER SERVICES -- 0.0% 1,000 Collectors Universe Inc. ......................................................... 3,530 10,390 ------------ --------------- DIVERSIFIED INDUSTRIAL -- 4.7% 6,500 Ampco-Pittsburgh Corp. ........................................................... 130,000 279,435 200 Burnham Holdings Inc., Cl. A ..................................................... 3,294 2,925 25,000 Haulotte Group ................................................................... 134,090 568,747 30,000 Hawk Corp., Cl. A+ ............................................................... 481,217 525,600 94,000 Katy Industries Inc.+ ............................................................ 342,483 145,700 80,000 Magnetek Inc.+ ................................................................... 370,614 275,200 20,000 National Patent Development Corp.+ ............................................... 50,340 48,000 10,000 RWC Inc.+ ........................................................................ 217,878 17,750 431,000 Stamford Industrial Group Inc.+ .................................................. 178,289 581,850 36,800 Tech/Ops Sevcon Inc. ............................................................. 220,725 257,600 24,000 WHX Corp.+ ....................................................................... 317,721 63,000 ------------ --------------- 2,446,651 2,765,807 ------------ --------------- EDUCATIONAL SERVICES -- 0.0% 600 Universal Technical Institute Inc.+ .............................................. 12,149 7,038 ------------ --------------- ELECTRONICS -- 1.5% 50,000 Alliance Semiconductor Corp. ..................................................... 159,909 55,500 2,500 Bel Fuse Inc., Cl. A ............................................................. 80,685 78,475 65,200 California Micro Devices Corp.+ .................................................. 271,367 191,688 16,000 CTS Corp. ........................................................................ 140,236 171,200 5,000 Methode Electronics Inc. ......................................................... 46,441 58,450 1,000 Schmitt Industries Inc.+ ......................................................... 6,409 5,950 20,000 SIRIT Inc.+ ...................................................................... 11,714 5,456 20,000 Stoneridge Inc.+ ................................................................. 194,714 269,000 178 Trimble Navigation Ltd.+ ......................................................... 4,954 5,100 3,500 Zoran Corp.+ ..................................................................... 22,500 47,810 ------------ --------------- 938,929 888,629 ------------ --------------- ENERGY AND UTILITIES: ELECTRIC -- 0.8% 6,000 Maine & Maritimes Corp.+ ......................................................... 176,736 166,800 11,050 Unitil Corp. ..................................................................... 290,031 297,798 ------------ --------------- 466,767 464,598 ------------ ---------------
See accompanying notes to financial statements. 6 GAMCO WESTWOOD MIGHTY MITES(SM) FUND SCHEDULE OF INVESTMENTS (CONTINUED) -- MARCH 31, 2008 (UNAUDITED) --------------------------------------------------------------------------------
MARKET SHARES COST VALUE ------------ ------------ --------------- COMMON STOCKS (CONTINUED) ENERGY AND UTILITIES: INTEGRATED -- 1.8% 25,000 Aquila Inc.+ ..................................................................... $ 71,600 $ 80,250 49,950 Florida Public Utilities Co. ..................................................... 497,334 556,943 6,000 MGE Energy Inc. .................................................................. 189,291 204,360 800 Pardee Resources Co. Inc. ........................................................ 72,100 189,200 95,200 Progress Energy Inc., CVO+ (a) ................................................... 10,472 31,416 ------------ --------------- 840,797 1,062,169 ------------ --------------- ENERGY AND UTILITIES: NATURAL GAS -- 2.2% 7,400 Chesapeake Utilities Corp. ....................................................... 207,025 219,336 30,000 Corning Natural Gas Corp.+ ....................................................... 466,159 483,000 2,000 EnergySouth Inc. ................................................................. 79,670 104,380 2,000 Evergreen Energy Inc.+ ........................................................... 10,040 3,080 31,200 PetroCorp Escrow Shares+ (a) ..................................................... 0 1,872 16,000 RGC Resources Inc. ............................................................... 348,522 445,760 19,400 U.S. Energy Corp. ................................................................ 83,121 64,990 ------------ --------------- 1,194,537 1,322,418 ------------ --------------- ENERGY AND UTILITIES: SERVICES -- 1.8% 10,000 Acergy SA, ADR ................................................................... 33,524 213,500 950 Covanta Holding Corp.+ ........................................................... 3,996 26,125 53,000 RPC Inc. ......................................................................... 227,439 805,070 ------------ --------------- 264,959 1,044,695 ------------ --------------- ENERGY AND UTILITIES: WATER -- 1.1% 4,500 Artesian Resources Corp., Cl. A .................................................. 48,062 83,385 2,500 California Water Service Group ................................................... 55,553 95,375 4,000 Consolidated Water Co. Ltd. ...................................................... 55,124 88,120 5,700 Middlesex Water Co. .............................................................. 96,987 103,512 2,000 Pennichuck Corp. ................................................................. 45,657 46,200 8,000 SJW Corp. ........................................................................ 98,372 228,720 ------------ --------------- 399,755 645,312 ------------ --------------- ENTERTAINMENT -- 1.7% 12,500 Canterbury Park Holding Corp. .................................................... 129,392 118,125 1,802 Chestnut Hill Ventures+ (a) ...................................................... 67,956 50,733 34,000 Dover Motorsports Inc. ........................................................... 170,332 209,100 21,000 Jetix Europe NV .................................................................. 122,472 596,770 800 LodgeNet Entertainment Corp.+ .................................................... 8,800 4,872 5,000 Triple Crown Media Inc.+ ......................................................... 30,966 13,950 ------------ --------------- 529,918 993,550 ------------ --------------- ENVIRONMENTAL CONTROL -- 0.0% 10,000 BioteQ Environmental Technologies Inc.+ .......................................... 16,559 33,124 500 Sharps Compliance Corp.+ ......................................................... 1,265 1,175 ------------ --------------- 17,824 34,299 ------------ --------------- EQUIPMENT AND SUPPLIES -- 6.3% 130,800 Baldwin Technology Co. Inc., Cl. A+ .............................................. 308,707 336,156 15,000 Capstone Turbine Corp.+ .......................................................... 27,450 31,800 21,500 Cherokee International Corp.+ .................................................... 100,897 40,205 14,000 Core Molding Technologies Inc.+ .................................................. 51,468 99,750 6,100 Fedders Corp.+ ................................................................... 1,645 55 1,000 Genoil Inc.+ ..................................................................... 225 536 10,000 Gerber Scientific Inc.+ .......................................................... 82,578 88,900 8,500 Gildemeister AG .................................................................. 61,536 213,905 4,000 GrafTech International Ltd.+ ..................................................... 24,000 64,840 40,000 Industrial Distribution Group Inc.+ .............................................. 426,349 401,600 20,000 L.S. Starrett Co., Cl. A ......................................................... 326,600 384,800 20,000 Maezawa Kyuso Industries Co. Ltd. ................................................ 108,117 380,217 9,000 Mine Safety Appliances Co. ....................................................... 294,989 370,710
MARKET SHARES COST VALUE ------------ ------------ --------------- 13,600 SL Industries Inc.+ .............................................................. $ 84,464 $ 270,640 1,000 SRS Labs Inc.+ ................................................................... 5,500 5,320 5,000 The Eastern Co. .................................................................. 50,980 78,250 170,000 TransAct Technologies Inc.+ ...................................................... 1,075,474 834,700 9,000 Vicor Corp. ...................................................................... 99,181 107,460 500 Watts Water Technologies Inc., Cl. A ............................................. 7,648 14,015 ------------ --------------- 3,137,808 3,723,859 ------------ --------------- FINANCIAL SERVICES -- 10.0% 2,000 Bank of Florida Corp.+ ........................................................... 24,323 20,280 16,100 Berkshire Bancorp Inc. ........................................................... 219,414 231,840 75 Burke & Herbert Bank and Trust Co. ............................................... 95,726 94,200 26,000 Crazy Woman Creek Bancorp Inc. ................................................... 444,343 504,400 181,000 Epoch Holding Corp. .............................................................. 469,220 2,168,380 20 Farmers & Merchants Bank of Long Beach ........................................... 131,500 131,800 6,000 Fidelity Southern Corp. .......................................................... 53,378 50,460 30,300 Flushing Financial Corp. ......................................................... 454,751 532,674 5,400 Gateway Financial Holdings Inc. .................................................. 70,841 57,240 10 Guaranty Corp., Cl. A+ ........................................................... 137,500 160,250 40,000 Integrity Mutual Funds Inc.+ ..................................................... 35,200 19,200 70,000 Ladenburg Thalmann Financial Services Inc.+ ...................................... 50,558 130,900 5,000 Nara Bancorp Inc. ................................................................ 63,818 64,950 11,055 New York Community Bancorp Inc. .................................................. 143,811 201,422 5,697 Northrim BanCorp Inc. ............................................................ 119,035 103,571 7,400 Oritani Financial Corp.+ ......................................................... 97,879 112,258 6,400 Parish National Corp. ............................................................ 238,648 489,600 9,167 Patriot National Bancorp Inc. .................................................... 141,747 138,651 5,000 Provident New York Bancorp ....................................................... 74,850 67,500 3,000 Seacoast Banking Corp. of Florida ................................................ 40,200 32,850 116 Sunwest Bank+ .................................................................... 322,722 307,400 19,000 SWS Group Inc. ................................................................... 238,753 232,370 1,000 TIB Financial Corp. .............................................................. 7,780 8,000 8,100 Wilshire Bancorp Inc. ............................................................ 72,738 61,884 ------------ --------------- 3,748,735 5,922,080 ------------ --------------- FOOD AND BEVERAGE -- 1.6% 2,500 Boston Beer Co. Inc., Cl. A+ ..................................................... 55,125 118,850 4,000 Genesee Corp., Cl. A+ (a) ........................................................ 4,060 0 30,100 Genesee Corp., Cl. B+ (a) ........................................................ 13,986 0 800 Hanover Foods Corp., Cl. A+ ...................................................... 81,372 75,200 2,000 J & J Snack Foods Corp. .......................................................... 28,830 54,940 40,000 Lifeway Foods Inc.+ .............................................................. 254,230 427,200 14,000 MGP Ingredients Inc. ............................................................. 67,550 97,860 7,000 Rock Field Co. Ltd. .............................................................. 113,721 110,674 900 Scheid Vineyards Inc., Cl. A+ .................................................... 29,446 27,900 1,000 The Inventure Group Inc.+ ........................................................ 2,660 1,740 6,400 Willamette Valley Vineyards Inc.+ ................................................ 41,644 46,400 ------------ --------------- 692,624 960,764 ------------ --------------- HEALTH CARE -- 7.3% 21,000 AFP Imaging Corp.+ ............................................................... 45,653 10,342 2,000 Alpharma Inc., Cl. A+ ............................................................ 44,140 52,420 60,000 BioLase Technology Inc.+ ......................................................... 579,811 185,400 10,000 Boiron SA ........................................................................ 166,957 277,703 1,000 Bruker Corp.+ .................................................................... 5,980 15,390 21,000 Continucare Corp.+ ............................................................... 57,080 52,290 96,000 Del Global Technologies Corp.+ ................................................... 205,665 225,600 4,000 DexCom Inc.+ ..................................................................... 58,335 16,560 1,000 Elite Pharmaceuticals Inc., Cl. A+ ............................................... 2,690 920
See accompanying notes to financial statements. 7 GAMCO WESTWOOD MIGHTY MITES(SM) FUND SCHEDULE OF INVESTMENTS (CONTINUED) -- MARCH 31, 2008 (UNAUDITED) --------------------------------------------------------------------------------
MARKET SHARES COST VALUE ------------ ------------ --------------- COMMON STOCKS (CONTINUED) HEALTH CARE (CONTINUED) 8,000 Exactech Inc.+ ................................................................... $ 126,891 $ 201,520 22,000 Heska Corp.+ ..................................................................... 48,780 34,980 8,000 I-Flow Corp.+ .................................................................... 106,998 112,240 70,400 IntriCon Corp.+ .................................................................. 232,193 562,496 2,000 ICU Medical Inc.+ ................................................................ 56,325 57,540 5,000 Inverness Medical Innovations Inc.+ .............................................. 94,541 150,500 10,000 Langer Inc.+ ..................................................................... 49,577 20,900 32,000 Matrixx Initiatives Inc.+ ........................................................ 510,149 468,480 10,000 Monogram Biosciences Inc.+ ....................................................... 15,050 10,600 21,000 Neogen Corp.+ .................................................................... 160,903 527,100 2,500 NMT Medical Inc.+ ................................................................ 7,858 9,700 5,000 Opko Health Inc.+ ................................................................ 20,353 10,400 1,000 Orthofix International NV+ ....................................................... 27,010 39,770 6,000 Pain Therapeutics Inc.+ .......................................................... 46,488 50,700 10,000 PreMD Inc.+ ...................................................................... 18,320 2,400 20,000 Quidel Corp.+ .................................................................... 88,363 321,200 37,415 RTI Biologics Inc.+ .............................................................. 321,817 353,572 400 Sirona Dental Systems Inc.+ ...................................................... 7,800 10,788 66,000 Sonic Innovations Inc.+ .......................................................... 331,740 318,780 1,000 ThermoGenesis Corp.+ ............................................................. 2,520 1,630 16,000 United-Guardian Inc. ............................................................. 154,087 163,840 3,000 Young Innovations Inc. ........................................................... 81,168 51,960 ------------ --------------- 3,675,242 4,317,721 ------------ --------------- HOTELS AND GAMING -- 1.3% 4,000 Dover Downs Gaming & Entertainment Inc. .......................................... 24,903 34,040 2,000 Florida Gaming Corp.+ ............................................................ 6,950 31,000 8,500 Multimedia Games Inc.+ ........................................................... 76,734 45,390 26,300 Sonesta International Hotels Corp., Cl. A ........................................ 1,108,272 650,925 ------------ --------------- 1,216,859 761,355 ------------ --------------- MANUFACTURED HOUSING AND RECREATIONAL VEHICLES -- 1.3% 82,000 Cavalier Homes Inc.+ ............................................................. 437,972 129,560 8,000 Cavco Industries Inc.+ ........................................................... 148,769 280,320 9,000 Nobility Homes Inc. .............................................................. 141,603 157,500 13,000 Palm Harbor Homes Inc.+ .......................................................... 244,324 68,380 5,000 Skyline Corp. .................................................................... 169,393 139,100 ------------ --------------- 1,142,061 774,860 ------------ --------------- METALS AND MINING -- 0.0% 615,000 Royal Oak Mines Inc.+ (a) ........................................................ 2,314 0 4,000 Uranium Resources Inc.+ .......................................................... 22,056 23,960 ------------ --------------- 24,370 23,960 ------------ --------------- PAPER AND FOREST PRODUCTS -- 0.3% 700 Keweenaw Land Association Ltd. ................................................... 130,662 171,500 ------------ --------------- PHARMACEUTICALS -- 0.9% 1,000 Bentley Pharmaceuticals Inc.+ .................................................... 15,730 16,250 30,000 CollaGenex Pharmaceuticals Inc.+ ................................................. 490,449 497,100 ------------ --------------- 506,179 513,350 ------------ --------------- PUBLISHING -- 0.2% 14,001 PRIMEDIA Inc. .................................................................... 139,299 102,907 ------------ --------------- REAL ESTATE -- 1.5% 6,100 Bresler & Reiner Inc. ............................................................ 201,306 118,188 6,000 Capital Properties Inc., Cl. A ................................................... 97,890 106,500 15,900 Griffin Land & Nurseries Inc. .................................................... 325,772 548,391 3,000 Gyrodyne Co. of America Inc.+ .................................................... 53,308 120,375 400 Holobeam Inc.+ ................................................................... 15,500 10,600 2,508 Royalty LLC+ (a)(b) .............................................................. 0 4,685 ------------ --------------- 693,776 908,739 ------------ ---------------
MARKET SHARES COST VALUE ------------ ------------ --------------- RESTAURANTS -- 0.5% 17,000 Nathan's Famous Inc.+ ............................................................ $ 119,527 $ 238,000 8,000 The Steak n Shake Co.+ ........................................................... 103,837 62,960 ------------ --------------- 223,364 300,960 ------------ --------------- RETAIL -- 0.5% 4,000 Bowlin Travel Centers Inc.+ ...................................................... 7,328 6,400 16,000 CoolBrands International Inc.+ ................................................... 37,057 13,094 10,000 Movado Group Inc. ................................................................ 145,136 194,900 1,400 Village Super Market Inc., Cl. A ................................................. 64,779 72,100 ------------ --------------- 254,300 286,494 ------------ --------------- SPECIALTY CHEMICALS -- 3.1% 267,226 General Chemical Group Inc.+ ..................................................... 59,859 8,685 30,000 Hawkins Inc. ..................................................................... 380,688 456,000 1,000 KMG Chemicals Inc. ............................................................... 3,270 15,430 55,000 Omnova Solutions Inc.+ ........................................................... 302,075 219,450 70,000 Zep Inc. ......................................................................... 909,647 1,135,400 ------------ --------------- 1,655,539 1,834,965 ------------ --------------- TELECOMMUNICATIONS -- 2.5% 1,000 Ambient Corp.+ ................................................................... 280 39 1,000 Applied Signal Technology Inc. ................................................... 16,330 11,800 175 Consolidated Communications Holdings Inc. ........................................ 3,118 2,649 24,000 D&E Communications Inc. .......................................................... 265,251 213,600 2,000 Electronic Systems Technology Inc. ............................................... 1,410 1,600 33,000 HickoryTech Corp. ................................................................ 337,919 269,610 80 Horizon Telecom Inc., Cl. A ...................................................... 9,250 10,200 350 Horizon Telecom Inc., Cl. B ...................................................... 39,964 31,500 1,400 Lexcom Inc., Cl. B, Non-Voting+ .................................................. 78,659 88,900 31,300 New Ulm Telecom Inc. ............................................................. 344,392 336,475 10,000 PNV Inc.+ ........................................................................ 3 18 2,500 Preformed Line Products Co. ...................................................... 115,368 121,700 18,000 Shenandoah Telecommunications Co. ................................................ 94,686 267,120 33,000 Sycamore Networks Inc.+ .......................................................... 107,085 120,780 152 Telecorp Escrow Shares (a) ....................................................... 0 0 2,305 Virgin Media Inc. ................................................................ 31,540 32,431 ------------ --------------- 1,445,255 1,508,422 ------------ --------------- TRANSPORTATION -- 0.6% 19,400 Providence and Worcester Railroad Co. ............................................ 340,743 373,450 400 Trailer Bridge Inc.+ ............................................................. 4,452 3,548 ------------ --------------- 345,195 376,998 ------------ --------------- WIRELESS COMMUNICATIONS -- 0.7% 9,000 Rural Cellular Corp., Cl. A+ ..................................................... 7,830 398,070 ------------ --------------- TOTAL COMMON STOCKS .............................................................. 35,079,088 40,038,081 ------------ --------------- PREFERRED STOCKS -- 0.9% AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.9% 16,000 Jungheinrich AG Pfd. ............................................................. 129,990 580,982 ------------ --------------- CONVERTIBLE PREFERRED STOCKS -- 0.1% BUSINESS SERVICES -- 0.0% 150 Interep National Radio Sales Inc., 4.000% Cv. Pfd., Ser. A+ (a)(b)(c) ............ 13,849 300 ------------ --------------- FOOD AND BEVERAGE -- 0.1% 2,400 Seneca Foods Corp., Cv. Pfd., Ser. 2003+ ......................................... 36,600 48,384 ------------ --------------- TOTAL CONVERTIBLE PREFERRED STOCKS ............................................... 50,449 48,684 ------------ ---------------
See accompanying notes to financial statements. 8 GAMCO WESTWOOD MIGHTY MITES(SM) FUND SCHEDULE OF INVESTMENTS (CONTINUED) -- MARCH 31, 2008 (UNAUDITED) --------------------------------------------------------------------------------
MARKET SHARES COST VALUE ------------ ------------ --------------- WARRANTS -- 0.1% BROADCASTING -- 0.0% 64 Granite Broadcasting Corp., Ser. A, expire 06/04/12+ ............................. $ 0 $ 19 64 Granite Broadcasting Corp., Ser. B, expire 06/04/12+ ............................. 0 16 ------------ --------------- 0 35 ------------ --------------- BUSINESS SERVICES -- 0.0% 1,666 Avalon Digital Marketing Systems Inc., expire 11/11/11+ (a)(b) ................... 0 0 ------------ --------------- ENERGY AND UTILITIES: ELECTRIC -- 0.1% 1,680 British Energy Group plc, expire 01/17/10+ ....................................... 5,488 18,421 15,000 Corning Natural Gas Corp., expire 08/17/11+ ...................................... 0 27,000 ------------ --------------- 5,488 45,421 ------------ --------------- TOTAL WARRANTS ................................................................... 5,488 45,456 ------------ ---------------
PRINCIPAL MARKET AMOUNT COST VALUE ------------ ------------ --------------- U.S. GOVERNMENT OBLIGATIONS -- 31.1% U.S. TREASURY BILLS -- 28.2% $ 16,817,000 U.S. Treasury Bills, 0.446% to 2.181%++, 04/03/08 to 09/18/08 .................... $ 16,761,576 $ 16,758,741 ------------ --------------- U.S. TREASURY NOTES -- 2.9% 1,675,000 U.S. Treasury Note, 5.000%, 07/31/08 ............................................. 1,690,925 1,695,284 ------------ --------------- TOTAL U.S. GOVERNMENT OBLIGATIONS ................................................ 18,452,501 18,454,025 ------------ --------------- TOTAL INVESTMENTS -- 99.7% ....................................................... $ 53,717,516 59,167,228 ============ OTHER ASSETS AND LIABILITIES (NET) -- 0.3% ...................................................... 155,465 --------------- NET ASSETS -- 100.0% ............................................................................ $ 59,322,693 ===============
---------- (a) Security fair valued under procedures established by the Board of Trustees. The procedures may include reviewing available financial information about the company and reviewing the valuation of comparable securities and other factors on a regular basis. At March 31, 2008, the market value of fair valued securities amounted to $114,506 or 0.19% of total net assets. (b) At March 31, 2008, the Fund held investments in restricted and illiquid securities amounting to $4,985 or 0.01% of total net assets, which were valued under methods approved by the Board of Trustees, as follows:
03/31/08 CARRYING ACQUISITION ACQUISITION ACQUISITION VALUE SHARES ISSUER DATE COST PER UNIT ------------ ------- ------------- ------------ --------------- 1,666 Avalon Digital Marketing Systems Inc., Warrants expire 11/11/11 .. 04/03/00 -- $ 0.0000 150 Interep National Radio Sales Inc., 4.000% Cv. Pfd., Ser. A ....... 05/03/02 $ 13,849 2.0000 2,508 Royalty LLC ...................................................... 09/09/03 -- 1.8680
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2008, the market value of the Rule 144A security amounted to $300 or 0.00% of total net assets. + Non-income producing security. ++ Represents annualized yield at date of purchase. ADR American Depositary Receipt CVO Contingent Value Obligation See accompanying notes to financial statements. 9 GAMCO WESTWOOD EQUITY FUND SCHEDULE OF INVESTMENTS -- MARCH 31, 2008 (UNAUDITED) --------------------------------------------------------------------------------
MARKET SHARES COST VALUE ------------ --------------- --------------- COMMON STOCKS -- 96.7% AVIATION: PARTS AND SERVICES -- 2.4% 64,300 United Technologies Corp. ..................................................... $ 3,780,972 $ 4,425,126 --------------- --------------- BANKING -- 7.2% 61,700 Bank of America Corp. ......................................................... 2,808,219 2,339,047 104,033 Citigroup Inc. ................................................................ 3,923,571 2,228,387 117,800 Comerica Inc. ................................................................. 5,415,968 4,132,424 112,284 JPMorgan Chase & Co. .......................................................... 4,323,880 4,822,598 --------------- --------------- 16,471,638 13,522,456 --------------- --------------- BUSINESS SERVICES -- 7.8% 134,800 Accenture Ltd., Cl. A ......................................................... 5,274,790 4,740,916 117,400 Automatic Data Processing Inc. ................................................ 4,908,489 4,976,586 22,100 MasterCard Inc., Cl. A ........................................................ 3,479,398 4,928,079 --------------- --------------- 13,662,677 14,645,581 --------------- --------------- COMMUNICATIONS EQUIPMENT -- 2.5% 195,200 Cisco Systems Inc.+ ........................................................... 5,113,603 4,702,368 --------------- --------------- COMPUTER HARDWARE -- 2.4% 39,100 International Business Machines Corp. ......................................... 4,090,896 4,501,974 --------------- --------------- COMPUTER SOFTWARE AND SERVICES -- 5.0% 168,400 Microsoft Corp. ............................................................... 4,812,642 4,779,192 233,200 Oracle Corp.+ ................................................................. 3,675,126 4,561,392 --------------- --------------- 8,487,768 9,340,584 --------------- --------------- CONSUMER PRODUCTS -- 7.6% 64,480 Altria Group Inc. ............................................................. 1,282,205 1,431,456 61,000 Colgate-Palmolive Co. ......................................................... 3,466,989 4,752,510 70,400 NIKE Inc., Cl. B .............................................................. 4,060,847 4,787,200 64,480 Philip Morris International Inc.+ ............................................. 2,991,811 3,261,398 --------------- --------------- 11,801,852 14,232,564 --------------- --------------- DIVERSIFIED INDUSTRIAL -- 5.0% 138,200 General Electric Co. .......................................................... 4,118,799 5,114,782 39,700 ITT Corp. ..................................................................... 1,822,809 2,056,857 40,300 Textron Inc. .................................................................. 1,663,264 2,233,426 --------------- --------------- 7,604,872 9,405,065 --------------- --------------- ELECTRONICS -- 1.3% 34,400 MEMC Electronic Materials Inc.+ ............................................... 2,061,319 2,438,960 --------------- --------------- ENERGY: INTEGRATED -- 9.7% 106,800 Dominion Resources Inc. ....................................................... 4,592,276 4,361,712 56,100 Exelon Corp. .................................................................. 3,108,375 4,559,247 90,400 McDermott International Inc.+ ................................................. 4,132,894 4,955,728 116,500 PG&E Corp. .................................................................... 4,703,202 4,289,530 --------------- --------------- 16,536,747 18,166,217 --------------- --------------- ENERGY: NATURAL GAS -- 1.5% 23,606 Apache Corp. .................................................................. 1,521,911 2,852,077 --------------- ---------------
MARKET SHARES COST VALUE ------------ --------------- --------------- ENERGY: OIL -- 11.2% 61,700 ConocoPhillips ................................................................ $ 3,404,081 $ 4,702,157 52,000 Exxon Mobil Corp. ............................................................. 2,168,886 4,398,160 96,400 Marathon Oil Corp. ............................................................ 4,216,466 4,395,840 58,035 Murphy Oil Corp. .............................................................. 3,074,258 4,766,995 37,010 Occidental Petroleum Corp. .................................................... 1,521,739 2,708,021 --------------- --------------- 14,385,430 20,971,173 --------------- --------------- ENTERTAINMENT -- 2.6% 153,200 The Walt Disney Co. ........................................................... 5,388,054 4,807,416 --------------- --------------- FINANCIAL SERVICES -- 9.7% 33,600 Arch Capital Group Ltd.+ ...................................................... 2,427,172 2,307,312 23,700 Franklin Resources Inc. ....................................................... 2,301,332 2,298,663 61,600 Hartford Financial Services Group Inc. ........................................ 5,327,468 4,667,432 56,900 Lazard Ltd., Cl. A ............................................................ 2,680,989 2,173,580 105,800 The Bank of New York Mellon Corp. ............................................. 4,544,793 4,415,034 83,300 Wells Fargo & Co. ............................................................. 2,330,262 2,424,030 --------------- --------------- 19,612,016 18,286,051 --------------- --------------- FOOD AND BEVERAGE -- 1.9% 60,000 General Mills Inc. 3,212,008 3,592,800 --------------- --------------- HEALTH CARE -- 4.8% 71,200 Johnson & Johnson ............................................................. 4,685,481 4,618,744 208,900 Pfizer Inc. ................................................................... 5,215,762 4,372,277 --------------- --------------- 9,901,243 8,991,021 --------------- --------------- METALS AND MINING -- 2.4% 47,500 Freeport-McMoRan Copper & Gold Inc. ........................................... 3,443,271 4,570,450 --------------- --------------- REAL ESTATE INVESTMENT TRUSTS -- 2.6% 83,300 ProLogis ...................................................................... 4,459,928 4,903,038 --------------- --------------- RETAIL -- 2.8% 128,100 CVS Caremark Corp. ............................................................ 4,047,749 5,189,331 --------------- --------------- TELECOMMUNICATIONS -- 5.2% 124,500 AT&T Inc. ..................................................................... 4,515,970 4,768,350 137,204 Verizon Communications Inc. ................................................... 4,856,368 5,001,086 --------------- --------------- 9,372,338 9,769,436 --------------- --------------- TRANSPORTATION -- 1.1% 84,100 Eagle Bulk Shipping Inc. ...................................................... 1,603,929 2,166,416 --------------- --------------- TOTAL COMMON STOCKS ........................................................... 166,560,221 181,480,104 --------------- --------------- TOTAL INVESTMENTS -- 96.7% $ 166,560,221 181,480,104 =============== OTHER ASSETS AND LIABILITIES (NET) -- 3.3% 6,248,035 --------------- NET ASSETS -- 100.0% ............................................................................ $ 187,728,139 ===============
---------- + Non-income producing security. See accompanying notes to financial statements. 10 GAMCO WESTWOOD BALANCED FUND SCHEDULE OF INVESTMENTS -- MARCH 31, 2008 (UNAUDITED) --------------------------------------------------------------------------------
MARKET SHARES COST VALUE ------------ --------------- --------------- COMMON STOCKS -- 59.3% AVIATION: PARTS AND SERVICES -- 1.6% 35,000 United Technologies Corp. ..................................................... $ 1,934,317 $ 2,408,700 --------------- --------------- BANKING -- 4.4% 30,100 Bank of America Corp. ......................................................... 1,314,462 1,141,091 50,233 Citigroup Inc. ................................................................ 1,922,962 1,075,991 57,700 Comerica Inc. ................................................................. 2,679,611 2,024,116 54,696 JPMorgan Chase & Co. .......................................................... 2,223,936 2,349,193 --------------- --------------- 8,140,971 6,590,391 --------------- --------------- BUSINESS SERVICES -- 4.7% 66,500 Accenture Ltd., Cl. A ......................................................... 2,594,367 2,338,805 55,300 Automatic Data Processing Inc. ................................................ 2,342,795 2,344,167 10,700 MasterCard Inc., Cl. A ........................................................ 1,685,952 2,385,993 --------------- --------------- 6,623,114 7,068,965 --------------- --------------- COMMUNICATIONS EQUIPMENT -- 1.5% 93,800 Cisco Systems Inc.+ ........................................................... 2,454,323 2,259,642 --------------- --------------- COMPUTER HARDWARE -- 1.4% 19,100 International Business Machines Corp. ......................................... 2,028,319 2,199,174 --------------- --------------- COMPUTER SOFTWARE AND SERVICES -- 2.9% 78,000 Microsoft Corp. ............................................................... 2,192,863 2,213,640 114,480 Oracle Corp.+ ................................................................. 1,851,644 2,239,229 --------------- --------------- 4,044,507 4,452,869 --------------- --------------- CONSUMER PRODUCTS -- 4.6% 32,020 Altria Group Inc. ............................................................. 632,632 710,844 29,100 Colgate-Palmolive Co. ......................................................... 1,611,691 2,267,181 34,400 NIKE Inc., Cl. B .............................................................. 1,970,074 2,339,200 32,020 Philip Morris International Inc.+ ............................................. 1,476,142 1,619,572 --------------- --------------- 5,690,539 6,936,797 --------------- --------------- DIVERSIFIED INDUSTRIAL -- 3.1% 66,000 General Electric Co. .......................................................... 1,944,668 2,442,660 21,590 ITT Corp. ..................................................................... 1,062,115 1,118,578 20,600 Textron Inc. .................................................................. 861,473 1,141,652 --------------- --------------- 3,868,256 4,702,890 --------------- --------------- ELECTRONICS -- 0.8% 17,100 MEMC Electronic Materials Inc.+ ............................................... 1,035,693 1,212,390 --------------- --------------- ENERGY: INTEGRATED -- 3.2% 55,000 Dominion Resources Inc. ....................................................... 2,353,966 2,246,200 46,300 McDermott International Inc.+ ................................................. 2,100,365 2,538,166 --------------- --------------- 4,454,331 4,784,366 --------------- --------------- ENERGY: NATURAL GAS -- 0.9% 11,855 Apache Corp. .................................................................. 776,121 1,432,321 --------------- --------------- ENERGY: OIL -- 7.0% 31,200 ConocoPhillips ................................................................ 1,919,714 2,377,752 26,800 Exxon Mobil Corp. ............................................................. 1,218,011 2,266,744 47,630 Marathon Oil Corp. ............................................................ 2,122,985 2,171,928 29,986 Murphy Oil Corp. .............................................................. 1,592,098 2,463,050 18,200 Occidental Petroleum Corp. .................................................... 740,410 1,331,694 --------------- --------------- 7,593,218 10,611,168 --------------- --------------- ENTERTAINMENT -- 1.5% 72,100 The Walt Disney Co. ........................................................... 2,539,328 2,262,498 --------------- --------------- FINANCIAL SERVICES -- 5.9% 16,000 Arch Capital Group Ltd.+ ...................................................... 1,155,834 1,098,720 11,400 Franklin Resources Inc. ....................................................... 1,084,461 1,105,686 29,700 Hartford Financial Services Group Inc. ........................................ 2,545,605 2,250,369
MARKET SHARES COST VALUE ------------ --------------- --------------- 29,400 Lazard Ltd., Cl. A ............................................................ $ 1,372,824 $ 1,123,080 51,800 The Bank of New York Mellon Corp. ............................................. 2,227,139 2,161,614 41,600 Wells Fargo & Co. ............................................................. 1,163,080 1,210,560 --------------- --------------- 9,548,943 8,950,029 --------------- --------------- FOOD AND BEVERAGE -- 1.1% 28,900 General Mills Inc. ............................................................ 1,535,648 1,730,532 --------------- --------------- HEALTH CARE -- 3.0% 34,600 Johnson & Johnson ............................................................. 2,284,166 2,244,502 110,500 Pfizer Inc. ................................................................... 2,723,091 2,312,765 --------------- --------------- 5,007,257 4,557,267 --------------- --------------- METALS AND MINING -- 1.6% 25,800 Freeport-McMoRan Copper & Gold Inc. ........................................... 1,958,781 2,482,476 --------------- --------------- REAL ESTATE INVESTMENT TRUSTS -- 1.6% 40,400 ProLogis ...................................................................... 2,163,251 2,377,944 --------------- --------------- RETAIL -- 1.7% 62,200 CVS Caremark Corp. ............................................................ 1,949,453 2,519,722 --------------- --------------- TELECOMMUNICATIONS -- 3.1% 61,200 AT&T Inc. ..................................................................... 2,209,366 2,343,960 65,418 Verizon Communications Inc. ................................................... 2,233,629 2,384,486 --------------- --------------- 4,442,995 4,728,446 --------------- --------------- TRANSPORTATION -- 0.7% 41,200 Eagle Bulk Shipping Inc. ...................................................... 785,633 1,061,312 --------------- --------------- UTILITIES -- 3.0% 27,400 Exelon Corp. .................................................................. 1,526,562 2,226,798 60,900 PG&E Corp. .................................................................... 2,413,000 2,242,338 --------------- --------------- 3,939,562 4,469,136 --------------- --------------- TOTAL COMMON STOCKS ........................................................... 82,514,560 89,799,035 --------------- --------------- PRINCIPAL AMOUNT ------------ CORPORATE BONDS -- 10.1% BANKING -- 1.6% $ 1,250,000 Bank of America Corp., 5.375%, 06/15/14 ....................................... 1,290,674 1,287,209 1,125,000 Citigroup Inc., 6.500%, 01/18/11 .............................................. 1,187,807 1,167,365 --------------- --------------- 2,478,481 2,454,574 --------------- --------------- BROKERAGE -- 1.0% 1,450,000 The Goldman Sachs Group Inc., 6.650%, 05/15/09 ................................ 1,452,949 1,488,579 --------------- --------------- COMPUTER HARDWARE -- 0.6% 950,000 International Business Machines Corp., 5.700%, 09/14/17 ....................... 967,570 997,002 --------------- --------------- DIVERSIFIED INDUSTRIAL -- 0.8% 1,200,000 General Electric Co., 5.000%, 02/01/13 ........................................ 1,209,523 1,244,316 --------------- --------------- ELECTRONICS -- 0.5% 750,000 Koninklijke Philips Electronics NV, 4.625%, 03/11/13 .......................... 747,120 754,651 --------------- --------------- ENERGY: NATURAL GAS -- 0.7% 1,000,000 Apache Corp., 5.250%, 04/15/13 ................................................ 999,891 1,048,183 --------------- ---------------
See accompanying notes to financial statements. 11 GAMCO WESTWOOD BALANCED FUND SCHEDULE OF INVESTMENTS (CONTINUED) -- MARCH 31, 2008 (UNAUDITED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT COST VALUE ------------ --------------- --------------- CORPORATE BONDS (CONTINUED) ENERGY: OIL -- 1.7% $ 1,000,000 Anadarko Petroleum Corp., 3.200%, 09/15/09 (a) ................................ $ 1,000,000 $ 981,420 500,000 Marathon Oil Corp., 5.900%, 03/15/18 .......................................... 502,865 503,538 1,005,000 Occidental Petroleum Corp., MTN, 4.250%, 03/15/10 ............................. 1,006,137 1,031,954 --------------- --------------- 2,509,002 2,516,912 --------------- --------------- FOOD AND BEVERAGE -- 0.6% 950,000 Anheuser-Busch Cos. Inc., 4.375%, 01/15/13 .................................... 939,947 965,527 --------------- --------------- RETAIL -- 0.9% 1,250,000 Wal-Mart Stores Inc., 6.875%, 08/10/09 ........................................ 1,270,898 1,319,940 --------------- --------------- TELECOMMUNICATIONS -- 1.0% 1,460,000 Verizon Communications Inc., Insured by MBIA Inc., 6.460%, 04/15/08 ........... 1,460,094 1,460,094 --------------- --------------- TRANSPORTATION -- 0.7% 1,000,000 Burlington Northern Santa Fe Corp., Deb., 5.650%, 05/01/17 .................... 982,880 1,003,116 --------------- --------------- TOTAL CORPORATE BONDS ......................................................... 15,018,355 15,252,894 --------------- --------------- U.S. GOVERNMENT AGENCY OBLIGATIONS -- 16.0% FEDERAL HOME LOAN BANK -- 3.1% 1,500,000 5.125%, 06/18/08 ............................................................ 1,500,267 1,508,634 1,500,000 4.625%, 11/21/08 ............................................................ 1,495,706 1,522,071 1,500,000 5.375%, 05/18/16 ............................................................ 1,508,443 1,650,453 --------------- --------------- 4,504,416 4,681,158 --------------- --------------- FEDERAL HOME LOAN MORTGAGE CORP. -- 5.4% 1,500,000 4.250%, 07/15/09 ............................................................ 1,487,384 1,538,067 1,500,000 4.750%, 12/08/10 ............................................................ 1,491,657 1,583,421 1,250,000 5.125%, 07/15/12 ............................................................ 1,239,823 1,353,370 2,000,000 5.000%, 07/15/14 ............................................................ 2,042,550 2,160,908 1,500,000 5.250%, 04/18/16 ............................................................ 1,479,705 1,632,261 --------------- --------------- 7,741,119 8,268,027 --------------- ---------------
PRINCIPAL MARKET AMOUNT COST VALUE ------------ --------------- --------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 7.5% $ 1,500,000 2.467%++, 07/23/08 .......................................................... $ 1,488,512 $ 1,490,561 1,250,000 3.250%, 02/15/09 ............................................................ 1,238,387 1,260,613 1,600,000 4.250%, 05/15/09 ............................................................ 1,586,378 1,635,723 1,250,000 2.500%, 04/09/10 ............................................................ 1,253,863 1,255,581 1,500,000 4.250%, 08/15/10 ............................................................ 1,465,880 1,563,864 1,500,000 5.375%, 11/15/11 ............................................................ 1,508,030 1,632,525 1,500,000 5.000%, 04/15/15 ............................................................ 1,559,572 1,619,352 775,000 5.375%, 06/12/17 ............................................................ 847,179 852,716 --------------- --------------- 10,947,801 11,310,935 --------------- --------------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 23,193,336 24,260,120 --------------- --------------- U.S. GOVERNMENT OBLIGATIONS -- 10.1% U.S. TREASURY BILLS -- 2.0% 3,000,000 U.S. Treasury Bills, 1.438% to 2.390%++, 04/17/08 to 07/17/08 ................. 2,992,038 2,992,305 --------------- --------------- U.S. TREASURY INFLATION INDEXED NOTES -- 1.1% 1,500,000 0.875%, 04/15/10 .............................................................. 1,675,565 1,710,587 --------------- --------------- U.S. TREASURY NOTES -- 7.0% 1,500,000 4.875%, 04/30/08 ............................................................ 1,499,887 1,499,887 1,500,000 4.875%, 08/31/08 ............................................................ 1,499,750 1,521,564 2,000,000 3.375%, 12/15/08 ............................................................ 1,988,532 2,027,658 1,500,000 4.000%, 02/15/15 ............................................................ 1,472,343 1,613,439 2,000,000 4.250%, 08/15/15 ............................................................ 1,995,407 2,179,532 1,500,000 5.125%, 05/15/16 ............................................................ 1,509,173 1,709,298 --------------- --------------- 9,965,092 10,551,378 --------------- --------------- TOTAL U.S. GOVERNMENT OBLIGATIONS ............................................. 14,632,695 15,254,270 --------------- --------------- TOTAL INVESTMENTS -- 95.5% .................................................... $ 135,358,946 144,566,319 =============== OTHER ASSETS AND LIABILITIES (NET) -- 4.5% ...................................................... 6,765,540 --------------- NET ASSETS -- 100.0% ............................................................................ $ 151,331,859 ===============
---------- (a) Floating rate security. The rate disclosed is that in effect at March 31, 2008. + Non-income producing security. ++ Represents annualized yield at date of purchase. MTN Medium Term Note See accompanying notes to financial statements. 12 GAMCO WESTWOOD INTERMEDIATE BOND FUND SCHEDULE OF INVESTMENTS -- MARCH 31, 2008 (UNAUDITED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT COST VALUE ------------ --------------- --------------- CORPORATE BONDS -- 29.7% BANKING -- 3.9% $ 300,000 Bank of America Corp., 5.375%, 06/15/14 ........................................................... $ 309,762 $ 308,930 225,000 Citigroup Inc., 6.500%, 01/18/11 ........................................................... 237,368 233,473 --------------- --------------- 547,130 542,403 --------------- --------------- COMPUTER HARDWARE -- 1.5% 200,000 International Business Machines Corp., 5.700%, 09/14/17 ........................................................... 203,699 209,895 --------------- --------------- DIVERSIFIED INDUSTRIAL -- 1.8% 250,000 General Electric Co., 5.000%, 02/01/13 ........................................................... 251,984 259,233 --------------- --------------- ELECTRONICS -- 1.4% 200,000 Koninklijke Philips Electronics NV, 4.625%, 03/11/13 ........................................................... 199,232 201,240 --------------- --------------- ENERGY AND UTILITIES: NATURAL GAS -- 1.5% 200,000 Apache Corp., 5.250%, 04/15/13 ........................................................... 199,572 209,637 --------------- --------------- ENERGY AND UTILITIES: OIL -- 4.0% 200,000 Anadarko Petroleum Corp., 3.200%, 09/15/09 (a) ....................................................... 200,000 196,284 125,000 Marathon Oil Corp., 5.900%, 03/15/18 ........................................................... 125,716 125,884 225,000 Occidental Petroleum Corp., MTN, 4.250%, 03/15/10 ........................................................... 225,000 231,035 --------------- --------------- 550,716 553,203 --------------- --------------- FINANCIAL SERVICES -- 9.1% 200,000 American Express Credit Corp., MTN, 2.978%, 06/16/11 (a) ....................................................... 200,000 191,792 260,000 International Bank for Reconstruction & Development, 8.625%, 10/15/16 ........................................................... 310,509 351,145 275,000 Merrill Lynch & Co. Inc., MTN, Series C, 5.000%, 01/15/15 ........................................................... 275,203 255,916 200,000 SLM Corp., 5.450%, 04/25/11 ........................................................... 200,082 160,915 300,000 The Goldman Sachs Group Inc., 6.650%, 05/15/09 ........................................................... 302,839 307,982 --------------- --------------- 1,288,633 1,267,750 --------------- --------------- FOOD AND BEVERAGE -- 1.8% 250,000 Anheuser-Busch Cos. Inc., 4.375%, 01/15/13 ........................................................... 247,361 254,086 --------------- --------------- RETAIL -- 1.5% 200,000 Wal-Mart Stores Inc., 6.875%, 08/10/09 ........................................................... 203,344 211,191 --------------- --------------- TELECOMMUNICATIONS -- 0.9% 125,000 Verizon Communications Inc., Insured by MBIA Inc., 6.460%, 04/15/08 ........................................................... 125,017 125,017 --------------- --------------- TRANSPORTATION -- 2.3% 200,000 Burlington Northern Santa Fe Corp., Deb., 5.650%, 05/01/17 ........................................................... 199,079 200,623 125,000 CSX Corp., 6.250%, 04/01/15 ........................................................... 124,930 126,936 --------------- --------------- 324,009 327,559 --------------- --------------- TOTAL CORPORATE BONDS ......................................................... 4,140,697 4,161,214 --------------- --------------- U.S. GOVERNMENT AGENCY OBLIGATIONS -- 27.1% FEDERAL HOME LOAN BANK -- 3.3% 175,000 3.875%, 01/15/10 ........................................................... 171,616 180,027 250,000 5.375%, 05/18/16 ........................................................... 251,407 275,075 --------------- --------------- 423,023 455,102 --------------- --------------- PRINCIPAL MARKET AMOUNT COST VALUE ------------ --------------- --------------- FEDERAL HOME LOAN MORTGAGE CORP. -- 3.7% $ 250,000 3.625%, 09/15/08 ........................................................... $ 248,828 $ 251,440 250,000 5.125%, 07/15/12 ........................................................... 262,405 270,674 --------------- --------------- 511,233 522,114 --------------- --------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 15.0% 350,000 2.467%++, 07/23/08 ......................................................... 347,319 347,797 250,000 4.250%, 05/15/09 ........................................................... 249,009 255,582 300,000 2.500%, 04/09/10 ........................................................... 300,927 301,339 250,000 4.250%, 08/15/10 ........................................................... 248,003 260,644 350,000 5.375%, 11/15/11 ........................................................... 365,470 380,922 275,000 5.375%, 06/12/17 ........................................................... 300,612 302,577 124,123 Pool #745122, 5.500%, 09/01/20 ........................................................... 123,892 127,194 122,556 Pool #255554, 5.500%, 01/01/35 ........................................................... 124,439 124,048 --------------- --------------- 2,059,671 2,100,103 --------------- --------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 5.1% 7,764 Pool #580871, 6.500%, 12/15/31 ........................................................... 7,777 8,115 76,512 Pool #562288, 6.000%, 12/15/33 ........................................................... 77,958 79,255 131,081 Pool #604946, 5.500%, 01/15/34 ........................................................... 132,930 133,965 113,097 Pool #604970, 5.500%, 01/15/34 ........................................................... 114,368 115,585 157,372 Pool #003747, 5.000%, 08/20/35 ........................................................... 155,967 156,949 217,742 Pool #550728, 5.500%, 11/15/35 ........................................................... 218,202 222,519 --------------- --------------- 707,202 716,388 --------------- --------------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS ...................................... 3,701,129 3,793,707 --------------- --------------- U.S. GOVERNMENT OBLIGATIONS -- 32.9% U.S. TREASURY BILLS -- 10.0% 1,400,000 U.S. Treasury Bills, 1.438% to 3.328%++, 04/17/08 to 07/17/08 ....................................................... 1,395,111 1,395,853 --------------- --------------- U.S. TREASURY BONDS -- 8.6% 250,000 7.125%, 02/15/23 ........................................................... 304,731 331,348 300,000 6.125%, 11/15/27 ........................................................... 308,412 372,516 275,000 5.500%, 08/15/28 ........................................................... 300,071 318,914 150,000 5.375%, 02/15/31 ........................................................... 168,815 173,531 --------------- --------------- 1,082,029 1,196,309 --------------- --------------- U.S. TREASURY INFLATION INDEXED NOTES -- 2.2% 275,000 0.875%, 04/15/10 ........................................................... 307,275 313,608 --------------- --------------- U.S. TREASURY NOTES -- 12.1% 200,000 4.875%, 05/31/08 ........................................................... 200,506 201,188 200,000 4.875%, 08/31/08 ........................................................... 199,966 202,875 400,000 3.375%, 12/15/08 ........................................................... 403,939 405,531 300,000 4.250%, 08/15/15 ........................................................... 298,705 326,930 250,000 5.125%, 05/15/16 ........................................................... 255,251 284,883 275,000 3.500%, 02/15/18 ........................................................... 275,430 275,430 --------------- --------------- 1,633,797 1,696,837 --------------- --------------- TOTAL U.S. GOVERNMENT OBLIGATIONS ............................................. 4,418,212 4,602,607 --------------- --------------- TOTAL INVESTMENTS -- 89.7% .................................................... $ 12,260,038 12,557,528 =============== OTHER ASSETS AND LIABILITIES (NET) -- 10.3% ..................................................... 1,445,219 --------------- NET ASSETS -- 100.0% ............................................................................ $ 14,002,747 ===============
---------- (a) Floating rate security. The rate disclosed is that in effect at March 31, 2008. ++ Represents annualized yield at date of purchase. MTN Medium Term Note See accompanying notes to financial statements. 13 GAMCO WESTWOOD SMALLCAP EQUITY FUND SCHEDULE OF INVESTMENTS -- MARCH 31, 2008 (UNAUDITED) --------------------------------------------------------------------------------
MARKET SHARES COST VALUE ------------ --------------- --------------- COMMON STOCKS -- 99.3% AEROSPACE -- 6.2% 3,365 Kaman Corp. ................................................................... $ 96,846 $ 95,196 4,500 Moog Inc., Cl. A+ ............................................................. 123,455 189,945 3,800 Teledyne Technologies Inc.+ ................................................... 134,242 178,600 --------------- --------------- 354,543 463,741 --------------- --------------- AUTOMOTIVE: PARTS AND ACCESSORIES -- 2.6% 8,000 Midas Inc.+ ................................................................... 137,568 137,520 9,494 Noble International Ltd. ...................................................... 186,142 59,338 --------------- --------------- 323,710 196,858 --------------- --------------- BUSINESS SERVICES -- 15.3% 9,219 Deluxe Corp. .................................................................. 284,013 177,097 21,193 Edgewater Technology Inc.+ .................................................... 166,246 111,687 13,281 Federal Signal Corp. .......................................................... 155,684 185,403 8,266 Intermec Inc.+ ................................................................ 202,462 183,422 4,800 Macquarie Infrastructure Co. LLC .............................................. 135,750 139,824 3,500 The Brink's Co. ............................................................... 192,858 235,130 3,400 URS Corp.+ .................................................................... 125,182 111,146 --------------- --------------- 1,262,195 1,143,709 --------------- --------------- COMPUTER SOFTWARE AND SERVICES -- 7.1% 19,700 Lawson Software Inc.+ ......................................................... 194,567 148,341 4,500 ManTech International Corp., Cl. A+ ........................................... 136,326 204,120 22,318 Tier Technologies Inc., Cl. B+ ................................................ 217,962 177,875 --------------- --------------- 548,855 530,336 --------------- --------------- CONSUMER PRODUCTS -- 8.8% 6,600 Alberto-Culver Co. ............................................................ 145,388 180,906 14,971 Kimball International Inc., Cl. B ............................................. 199,574 160,489 5,111 Steinway Musical Instruments Inc.+ ............................................ 144,318 145,766 4,300 The Warnaco Group Inc.+ ....................................................... 96,129 169,592 --------------- --------------- 585,409 656,753 --------------- --------------- DIVERSIFIED INDUSTRIAL -- 14.3% 3,256 Barnes Group Inc. ............................................................. 87,608 74,725 6,910 Columbus McKinnon Corp.+ ...................................................... 176,179 214,072 14,906 Griffon Corp.+ ................................................................ 172,155 128,191 10,000 Hawk Corp., Cl. A+ ............................................................ 138,000 175,200 5,400 Kennametal Inc. ............................................................... 119,709 158,922 38,223 Magnetek Inc.+ ................................................................ 170,687 131,487 3,043 Texas Industries Inc. ......................................................... 229,547 182,915 --------------- --------------- 1,093,885 1,065,512 --------------- --------------- ELECTRONICS -- 2.8% 8,677 LeCroy Corp.+ ................................................................. 82,480 75,143 5,900 OSI Systems Inc.+ ............................................................. 158,458 135,818 --------------- --------------- 240,938 210,961 --------------- --------------- ENERGY AND UTILITIES -- 2.3% 4,500 ALLETE Inc. ................................................................... 193,559 173,790 --------------- --------------- EQUIPMENT AND SUPPLIES -- 5.4% 4,200 Northwest Pipe Co.+ ........................................................... 138,650 178,458 2,426 Powell Industries Inc.+ ....................................................... 96,803 95,512 3,250 Tennant Co. ................................................................... 139,912 129,382 --------------- --------------- 375,365 403,352 --------------- ---------------
MARKET SHARES COST VALUE ------------ --------------- --------------- FINANCIAL SERVICES -- 6.8% 7,200 Boston Private Financial Holdings Inc. ........................................ $ 187,391 $ 76,248 5,408 Hilb Rogal & Hobbs Co. ........................................................ 238,941 170,190 6,700 Sterling Financial Corp. ...................................................... 218,487 104,587 3,400 Stifel Financial Corp.+ ....................................................... 133,516 152,660 --------------- --------------- 778,335 503,685 --------------- --------------- FOOD AND BEVERAGE -- 5.9% 19,000 Del Monte Foods Co. ........................................................... 199,893 181,070 5,100 J & J Snack Foods Corp. ....................................................... 118,996 140,097 19,438 Triarc Cos. Inc., Cl. A ....................................................... 270,272 122,459 --------------- --------------- 589,161 443,626 --------------- --------------- HEALTH CARE -- 9.1% 18,900 Five Star Quality Care Inc.+ .................................................. 196,299 120,015 6,850 K-V Pharmaceutical Co., Cl. A+ ................................................ 192,197 170,976 4,000 SurModics Inc.+ ............................................................... 197,347 167,520 5,000 West Pharmaceutical Services Inc. ............................................. 204,057 221,150 --------------- --------------- 789,900 679,661 --------------- --------------- HOTELS AND GAMING -- 4.6% 11,200 Marcus Corp. .................................................................. 225,768 215,040 3,000 Orient-Express Hotels Ltd., Cl. A ............................................. 98,091 129,480 --------------- --------------- 323,859 344,520 --------------- --------------- REAL ESTATE INVESTMENT TRUSTS -- 1.0% 2,061 Deerfield Capital Corp. ....................................................... 2,927 2,906 4,700 Lexington Realty Trust ........................................................ 101,692 67,727 --------------- --------------- 104,619 70,633 --------------- --------------- SPECIALTY CHEMICALS -- 4.9% 2,699 FMC Corp. ..................................................................... 119,788 149,767 6,975 H.B. Fuller Co. ............................................................... 196,812 142,360 1,006 NewMarket Corp. ............................................................... 49,485 75,903 --------------- --------------- 366,085 368,030 --------------- --------------- TELECOMMUNICATIONS -- 2.2% 9,900 HickoryTech Corp. ............................................................. 97,372 80,883 10,000 Radyne Corp.+ ................................................................. 99,033 85,200 --------------- --------------- 196,405 166,083 --------------- --------------- TOTAL COMMON STOCKS ........................................................... 8,126,823 7,421,250 --------------- --------------- PRINCIPAL AMOUNT ------------ U.S. GOVERNMENT OBLIGATIONS -- 1.8% $ 132,000 U.S. Treasury Bill, 1.221%++, 04/24/08 ......................................................... 131,897 131,897 --------------- --------------- TOTAL INVESTMENTS -- 101.1% ................................................... $ 8,258,720 7,553,147 =============== OTHER ASSETS AND LIABILITIES (NET) -- (1.1)% .................................................... (83,452) --------------- NET ASSETS -- 100.0% ............................................................................ $ 7,469,695 ===============
---------- + Non-income producing security. ++ Represents annualized yield at date of purchase. See accompanying notes to financial statements. 14 GAMCO WESTWOOD INCOME FUND SCHEDULE OF INVESTMENTS -- MARCH 31, 2008 (UNAUDITED) --------------------------------------------------------------------------------
MARKET SHARES COST VALUE ------------ --------------- --------------- COMMON STOCKS -- 59.0% BANKING -- 11.8% 10,000 Bank of America Corp. ......................................................... $ 494,573 $ 379,100 12,000 Citigroup Inc. ................................................................ 520,384 257,040 3,000 HSBC Holdings plc, ADR ........................................................ 274,455 246,900 11,000 U.S. Bancorp .................................................................. 363,413 355,960 3,000 Valley National Bancorp ....................................................... 67,760 57,630 --------------- --------------- 1,720,585 1,296,630 --------------- --------------- BUSINESS SERVICES -- 5.6% 6,000 Deluxe Corp. .................................................................. 131,449 115,260 9,200 Macquarie Infrastucture Co. LLC ............................................... 333,889 267,996 7,000 Paychex Inc. .................................................................. 307,177 239,820 --------------- --------------- 772,515 623,076 --------------- --------------- COMPUTER SOFTWARE AND SERVICES -- 1.8% 7,000 Microsoft Corp. ............................................................... 208,870 198,660 --------------- --------------- DIVERSIFIED INDUSTRIAL -- 2.3% 7,000 General Electric Co. .......................................................... 271,195 259,070 --------------- --------------- ELECTRONICS -- 1.5% 8,000 Intel Corp. ................................................................... 188,828 169,440 --------------- --------------- ENERGY AND UTILITIES: INTEGRATED -- 2.2% 1,000 BP plc, ADR ................................................................... 75,428 60,650 4,000 Integrys Energy Group Inc. .................................................... 203,201 186,560 --------------- --------------- 278,629 247,210 --------------- --------------- ENERGY AND UTILITIES: NATURAL GAS -- 1.8% 8,500 Spectra Energy Corp. .......................................................... 221,225 193,375 --------------- --------------- ENERGY AND UTILITIES: OIL -- 3.7% 2,000 Chevron Corp. ................................................................. 169,778 170,720 3,000 ConocoPhillips ................................................................ 240,082 228,630 263 Exterran Partners LP .......................................................... 8,889 7,627 --------------- --------------- 418,749 406,977 --------------- --------------- ENERGY AND UTILITIES: SERVICES -- 2.9% 8,000 Halliburton Co. ............................................................... 284,121 314,640 --------------- --------------- FINANCIAL SERVICES -- 6.9% 5,000 AllianceBernstein Holding LP .................................................. 388,423 316,900 4,000 Federal National Mortgage Association ......................................... 256,813 105,280 8,000 H&R Block Inc. ................................................................ 176,100 166,080 6,000 Wells Fargo & Co. ............................................................. 193,140 174,600 --------------- --------------- 1,014,476 762,860 --------------- --------------- FOOD AND BEVERAGE -- 6.3% 7,000 ConAgra Foods Inc. ............................................................ 174,145 167,650 4,761 General Mills Inc. ............................................................ 278,679 285,089 8,000 Kraft Foods Inc., Cl. A ....................................................... 266,270 248,080 --------------- --------------- 719,094 700,819 --------------- --------------- HEALTH CARE -- 4.4% 15,000 Pfizer Inc. ................................................................... 387,232 313,950 4,000 Wyeth ......................................................................... 201,908 167,040 --------------- --------------- 589,140 480,990 --------------- --------------- RETAIL -- 1.3% 5,000 The Home Depot Inc. ........................................................... 198,531 139,850 --------------- --------------- SPECIALTY CHEMICALS -- 2.1% 5,000 E.I. du Pont de Nemours & Co. ................................................. 254,610 233,800 --------------- --------------- TELECOMMUNICATIONS -- 4.4% 5,000 AT&T Inc. ..................................................................... 180,660 191,500 8,000 Verizon Communications Inc. ................................................... 334,671 291,600 --------------- --------------- 515,331 483,100 --------------- --------------- TOTAL COMMON STOCKS ........................................................... 7,655,899 6,510,497 --------------- --------------- PREFERRED STOCKS -- 10.9% BROADCASTING -- 2.0% 9,000 CBS Corp., 7.250% Pfd. ........................................................ 227,726 218,070 --------------- ---------------
MARKET SHARES COST VALUE ------------ --------------- --------------- FINANCIAL SERVICES -- 8.9% 12,000 Bank One Capital Trust VI, 7.200% Pfd. ........................................ $ 305,738 $ 296,760 6,000 Federal National Mortgage Association, 7.000% Pfd., Ser. O (a) ................ 332,225 271,875 11,300 General Electric Capital Corp., 5.875% Pfd. ................................... 278,435 276,511 5,900 Wells Fargo Capital Trust IV, 7.000% Pfd. ..................................... 150,504 142,013 --------------- --------------- 1,066,902 987,159 --------------- --------------- TOTAL PREFERRED STOCKS ........................................................ 1,294,628 1,205,229 --------------- --------------- CONVERTIBLE PREFERRED STOCKS -- 4.4% ENERGY AND UTILITIES: INTEGRATED -- 3.0% 5,100 Entergy Corp., 7.625% Cv. Pfd. ................................................ 270,415 332,826 --------------- --------------- FINANCIAL SERVICES -- 1.4% 500 Alleghany Corp., 5.750% Cv. Pfd. .............................................. 139,920 157,437 --------------- --------------- TOTAL CONVERTIBLE PREFERRED STOCKS ............................................ 410,335 490,263 --------------- --------------- PRINCIPAL AMOUNT ------------ CORPORATE BONDS -- 6.1% ENERGY AND UTILITIES: OIL -- 2.7% $ 300,000 Anadarko Petroleum Corp., 3.200%, 09/15/09 (a) ................................ 300,284 294,426 --------------- --------------- FINANCIAL SERVICES -- 2.2% 250,000 American Express Credit Corp., MTN, 2.978%, 06/16/11 (a) ...................... 250,000 239,740 --------------- --------------- METALS AND MINING -- 1.2% 140,000 Freeport-McMoRan Copper & Gold Inc., 8.394%, 04/01/15 (a) ..................... 142,886 137,900 --------------- --------------- TOTAL CORPORATE BONDS ......................................................... 693,170 672,066 --------------- --------------- U.S. GOVERNMENT AGENCY OBLIGATIONS -- 12.6% FEDERAL HOME LOAN BANK -- 8.0% 325,000 5.125%, 06/18/08 .............................................................. 325,058 326,871 550,000 4.625%, 11/21/08 .............................................................. 548,346 558,092 --------------- --------------- 873,404 884,963 --------------- --------------- FEDERAL HOME LOAN MORTGAGE CORP. -- 4.6% 500,000 3.625%, 09/15/08 .............................................................. 496,371 502,880 --------------- --------------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS ...................................... 1,369,775 1,387,843 --------------- --------------- U.S. GOVERNMENT OBLIGATIONS -- 8.0% 893,000 U.S. Treasury Bills, 1.258% to 2.789%++, 04/17/08 to 09/18/08 ................. 889,174 888,631 --------------- --------------- TOTAL U.S. GOVERNMENT OBLIGATIONS ............................................. 889,174 888,631 --------------- --------------- TOTAL INVESTMENTS -- 101.0% ................................................... $ 12,312,981 11,154,529 =============== OTHER ASSETS AND LIABILITIES (NET) -- (1.0)% .................................................... (111,533) --------------- NET ASSETS -- 100.0% ............................................................................ $ 11,042,996 ===============
---------- (a) Floating rate security. The rate disclosed is that in effect at March 31, 2008. ++ Represents annualized yield at date of purchase. ADR American Depositary Receipt MTN Medium Term Note See accompanying notes to financial statements. 15 GAMCO WESTWOOD FUNDS STATEMENTS OF ASSETS AND LIABILITIES MARCH 31, 2008 (UNAUDITED) --------------------------------------------------------------------------------
MIGHTY EQUITY BALANCED INTERMEDIATE SMALLCAP INCOME MITES(SM) FUND FUND FUND BOND FUND EQUITY FUND FUND -------------- ------------ ------------ ------------ ----------- ------------ ASSETS: Investments, at value (cost $53,717,516, $166,560,221, $135,358,946, $12,260,038, $8,258,720, and $12,312,981, respectively) ........................... $ 59,167,228 $181,480,104 $144,566,319 $ 12,557,528 $ 7,553,147 $ 11,154,529 Cash ...................................... 31,868 6,094,415 6,365,996 1,726,692 892 34 Receivable for Fund shares sold ........... 284,887 235,724 354,277 2,089 3,647 7,083 Receivable for investments sold ........... 193,050 -- -- -- -- -- Receivable from Adviser ................... -- -- -- 1,870 1,051 -- Dividends and interest receivable ......... 65,887 333,555 777,456 116,606 6,673 39,610 Prepaid expenses .......................... 37,552 62,002 32,762 24,846 26,159 27,947 Other assets .............................. -- -- -- 2,748 -- -- -------------- ------------ ------------ ------------ ----------- ------------ TOTAL ASSETS .............................. 59,780,472 188,205,800 152,096,810 14,432,379 7,591,569 11,229,203 -------------- ------------ ------------ ------------ ----------- ------------ LIABILITIES: Payable for investments purchased ......... 284,349 -- 504,094 402,643 96,846 163,360 Payable for Fund shares redeemed .......... 69,043 146,088 38,148 673 7,017 5,000 Distributions payable ..................... -- 156 -- 6,570 -- -- Payable for investment advisory fees ...... 48,848 157,256 94,862 -- -- 1,329 Payable for distribution fees ............. 15,483 40,893 33,569 4,861 1,926 2,580 Payable for accounting fees ............... 3,750 3,750 3,750 -- -- -- Payable for legal and audit fees .......... 12,659 71,187 58,014 6,591 10,294 8,099 Payable for shareholder communications expenses ................................ 14,611 29,183 20,162 6,705 2,733 2,864 Payable for shareholder services fees ..... -- 28,382 11,880 1,555 2,363 2,294 Other accrued expenses .................... 9,036 766 472 34 695 681 -------------- ------------ ------------ ------------ ----------- ------------ TOTAL LIABILITIES ......................... 457,779 477,661 764,951 429,632 121,874 186,207 -------------- ------------ ------------ ------------ ----------- ------------ NET ASSETS ................................ $ 59,322,693 $187,728,139 $151,331,859 $ 14,002,747 $ 7,469,695 $ 11,042,996 ============== ============ ============ ============ =========== ============ NET ASSETS CONSIST OF: Paid-in capital, at $0.001 par value ...... $ 53,212,745 $171,219,315 $140,954,058 $ 13,714,435 $14,561,676 $ 12,390,837 Accumulated net investment income (loss) .. 16,045 481,856 18,029 (465) (6,703) 62,597 Accumulated net realized gain (loss) on investments and foreign currency transactions ............................ 643,119 1,107,085 1,152,399 (8,723) (6,379,705) (251,986) Net unrealized appreciation/(depreciation) on investments .......................... 5,449,712 14,919,883 9,207,373 297,490 (705,573) (1,158,452) Net unrealized appreciation on foreign currency translations ................... 1,072 -- -- 10 -- -- -------------- ------------ ------------ ------------ ----------- ------------ NET ASSETS ................................ $ 59,322,693 $187,728,139 $151,331,859 $ 14,002,747 $ 7,469,695 $ 11,042,996 ============== ============ ============ ============ =========== ============ SHARES OF BENEFICIAL INTEREST: CLASS AAA: Net assets ................................ $ 50,381,380 $180,320,970 $144,129,160 $ 10,713,214 $ 6,332,229 $ 10,577,217 ============== ============ ============ ============ =========== ============ Shares of beneficial interest outstanding; unlimited number of shares authorized ... 3,686,672 17,812,568 12,846,186 960,989 503,404 1,209,658 ============== ============ ============ ============ =========== ============ NET ASSET VALUE, offering, and redemption price per share ......................... $ 13.67 $ 10.12 $ 11.22 $ 11.15 $ 12.58 $ 8.74 ============== ============ ============ ============ =========== ============ CLASS A: Net assets ................................ $ 4,933,973 $ 6,782,447 $ 5,648,460 $ 117,350 $ 751,503 $ 59,608 ============== ============ ============ ============ =========== ============ Shares of beneficial interest outstanding; unlimited number of shares authorized ... 364,542 673,693 501,332 10,526 60,202 6,592 ============== ============ ============ ============ =========== ============ NET ASSET VALUE and redemption price per share ................................... $ 13.53 $ 10.07 $ 11.27 $ 11.15 $ 12.48 $ 9.04 ============== ============ ============ ============ =========== ============ Maximum offering price per share (NAV/.96, based on maximum sales charge of 4.00% of the offering price) ..................... $ 14.09 $ 10.49 $ 11.74 $ 11.61 $ 13.00 $ 9.42 ============== ============ ============ ============ =========== ============ CLASS B: Net assets ................................ $ 203,057 $ 20,321 $ 134,802 $ 49,210 $ 6,032 $ 96.2 ============== ============ ============ ============ =========== ============ Shares of beneficial interest outstanding; unlimited number of shares authorized ... 15,707 2,056 11,867 4,415 499.8 10.4 ============== ============ ============ ============ =========== ============ NET ASSET VALUE and offering price per share (a) ............................... $ 12.93 $ 9.88 $ 11.36 $ 11.15 $ 12.07 $ 9.25 ============== ============ ============ ============ =========== ============ CLASS C: Net assets ................................ $ 3,526,554 $ 348,202 $ 1,231,434 $ 3,074,705 $ 225,378 $ 335,668 ============== ============ ============ ============ =========== ============ Shares of beneficial interest outstanding; unlimited number of shares authorized ... 274,712 35,237 108,258 289,780 18,842 34,791 ============== ============ ============ ============ =========== ============ NET ASSET VALUE and offering price per share (a) ............................... $ 12.84 $ 9.88 $ 11.37 $ 10.61 $ 11.96 $ 9.65 ============== ============ ============ ============ =========== ============ CLASS I: Net assets ................................ $ 277,729 $ 256,199 $ 188,003 $ 48,268 $ 154,553 $ 70,407 ============== ============ ============ ============ =========== ============ Shares of beneficial interest outstanding; unlimited number of shares authorized ... 20,303 25,280 16,763 4,328 12,283 8,055 ============== ============ ============ ============ =========== ============ NET ASSET VALUE, offering, and redemption price per share ......................... $ 13.68 $ 10.13 $ 11.22 $ 11.15 $ 12.58 $ 8.74 ============== ============ ============ ============ =========== ============
---------- (a) Redemption price varies based on the length of time held. See accompanying notes to financial statements. 16 GAMCO WESTWOOD FUNDS STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 2008 (UNAUDITED) --------------------------------------------------------------------------------
MIGHTY EQUITY BALANCED INTERMEDIATE SMALLCAP INCOME MITES(SM) FUND FUND FUND BOND FUND EQUITY FUND FUND -------------- ------------ ------------ ------------ ----------- ------------ INVESTMENT INCOME: Dividends (net of foreign taxes of $427, $0, $0, $0, $0, and $54, respectively) .. $ 286,844 $ 2,149,504 $ 1,067,237 -- $ 55,859 $ 225,280 Interest .................................. 209,852 25 1,351,710 $ 236,802 8,771 81,547 -------------- ------------ ------------ ------------ ----------- ------------ TOTAL INVESTMENT INCOME ................... 496,696 2,149,529 2,418,947 236,802 64,630 306,827 -------------- ------------ ------------ ------------ ----------- ------------ EXPENSES: Investment advisory fees .................. 278,659 945,347 576,785 34,047 45,412 64,922 Distribution fees - Class AAA ............. 60,387 229,303 183,830 12,403 9,997 15,644 Distribution fees - Class A ............... 10,521 12,940 13,661 150 1,913 195 Distribution fees - Class B ............... 1,870 108 909 381 33 4 Distribution fees - Class C ............... 13,650 1,630 5,112 6,224 1,256 1,807 Accounting fees ........................... 22,500 22,500 22,500 -- -- -- Custodian fees ............................ 13,659 14,101 12,887 3,996 4,894 9,138 Interest expense .......................... 171 -- -- -- -- -- Legal and audit fees ...................... 20,010 46,645 40,432 13,497 18,375 13,302 Registration expenses ..................... 14,859 20,381 15,498 13,260 12,128 16,337 Shareholder communications expenses ....... 15,095 31,230 23,015 4,169 3,740 5,169 Shareholder services fees ................. 18,196 70,528 48,376 5,425 6,708 7,715 Trustees' fees ............................ 1,431 5,270 4,296 266 268 487 Miscellaneous expenses .................... 9,224 10,310 9,215 4,226 3,992 3,762 -------------- ------------ ------------ ------------ ----------- ------------ TOTAL EXPENSES ............................ 480,232 1,410,293 956,516 98,044 108,716 138,482 -------------- ------------ ------------ ------------ ----------- ------------ LESS: Expense reimbursements (see Note 3) ..... -- -- -- (32,432) (34,073) (30,627) Custodian fee credits ................... (336) (13,859) (12,523) (3,895) (4,679) (9,053) -------------- ------------ ------------ ------------ ----------- ------------ TOTAL REIMBURSEMENTS AND CREDITS .......... (336) (13,859) (12,523) (36,327) (38,752) (39,680) -------------- ------------ ------------ ------------ ----------- ------------ NET EXPENSES .............................. 479,896 1,396,434 943,993 61,717 69,964 98,802 -------------- ------------ ------------ ------------ ----------- ------------ NET INVESTMENT INCOME (LOSS) .............. 16,800 753,095 1,474,954 175,085 (5,334) 208,025 -------------- ------------ ------------ ------------ ----------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: Net realized gain (loss) on investments ... 1,089,370 1,655,434 1,517,340 30,518 468,423 (192,723) Net realized gain on foreign currency transactions ............................ 233 -- -- -- -- -- -------------- ------------ ------------ ------------ ----------- ------------ Net realized gain (loss) on investments and foreign currency transactions ........... 1,089,603 1,655,434 1,517,340 30,518 468,423 (192,723) -------------- ------------ ------------ ------------ ----------- ------------ Net change in unrealized appreciation/depreciation on investments ............................. (8,005,360) (17,376,582) (7,110,828) 302,648 (2,102,320) (1,405,525) Net change in unrealized appreciation/depreciation on foreign currency translations ................... 348 -- -- (1) -- -- -------------- ------------ ------------ ------------ ----------- ------------ Net change in unrealized appreciation/depreciation on investments and foreign currency translations ....... (8,005,012) (17,376,582) (7,110,828) 302,647 (2,102,320) (1,405,525) -------------- ------------ ------------ ------------ ----------- ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY ........ (6,915,409) (15,721,148) (5,593,488) 333,165 (1,633,897) (1,598,248) -------------- ------------ ------------ ------------ ----------- ------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............... $ (6,898,609) $(14,968,053) $ (4,118,534) $ 508,250 $(1,639,231) $ (1,390,223) ============== ============ ============ ============ =========== ============
See accompanying notes to financial statements. 17 GAMCO WESTWOOD FUNDS STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
MIGHTY MITES(SM) FUND EQUITY FUND ------------------------------ ------------------------------ FOR THE SIX FOR THE FOR THE SIX FOR THE MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MARCH 31, 2008 SEPTEMBER 30, MARCH 31, 2008 SEPTEMBER 30, (UNAUDITED) 2007 (UNAUDITED) 2007 -------------- ------------- -------------- ------------- OPERATIONS: Net investment income ........................................ $ 16,800 $ 199,835 $ 753,095 $ 679,596 Net realized gain on investments and foreign currency transactions ............................................... 1,089,603 5,198,020 1,655,434 25,589,048 Net change in unrealized appreciation/depreciation on investments and foreign currency translations .............. (8,005,012) 2,972,257 (17,376,582) 7,079,829 -------------- ------------- -------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................................................. (6,898,609) 8,370,112 (14,968,053) 33,348,473 -------------- ------------- -------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income Class AAA .................................................. (173,195) -- (788,517) (737,096) Class A .................................................... (20,881) -- (14,656) (4,914) Class C .................................................... (2,086) -- -- -- -------------- ------------- -------------- ------------- (196,162) -- (803,173) (742,010) -------------- ------------- -------------- ------------- Net realized gain on investments Class AAA .................................................. (4,398,562) (5,192,410) (23,536,496) (28,093,088) Class A .................................................... (427,184) (567) (594,524) (451,192) Class B .................................................... (37,625) (72,032) (2,963) (5,227) Class C .................................................... (219,499) (45,681) (43,046) (52,506) -------------- ------------- -------------- ------------- (5,082,870) (5,310,690) (24,177,029) (28,602,013) -------------- ------------- -------------- ------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS .......................... (5,279,032) (5,310,690) (24,980,202) (29,344,023) -------------- ------------- -------------- ------------- SHARES OF BENEFICIAL INTEREST TRANSACTIONS: Proceeds from shares issued Class AAA .................................................. 16,643,919 13,160,409 32,385,970 38,533,796 Class A .................................................... 4,932,659 2,241,765 4,394,842 564,785 Class C .................................................... 2,297,279 1,845,146 116,878 18,205 Class I .................................................... 286,131 -- 277,223 -- -------------- ------------- -------------- ------------- 24,159,988 17,247,320 37,174,913 39,116,786 -------------- ------------- -------------- ------------- Proceeds from reinvestment of distributions Class AAA .................................................. 4,129,014 4,658,234 23,304,369 27,658,190 Class A .................................................... 429,306 545 604,502 451,854 Class B .................................................... 37,512 71,845 1,929 3,906 Class C .................................................... 193,520 45,659 42,305 51,834 -------------- ------------- -------------- ------------- 4,789,352 4,776,283 23,953,105 28,165,784 -------------- ------------- -------------- ------------- Cost of shares redeemed Class AAA .................................................. (8,111,167) (9,412,055) (26,420,018) (49,588,854) Class A .................................................... (1,690,027) (11,391) (741,276) (363,055) Class B .................................................... (167,859) (131,824) -- (12,586) Class C .................................................... (439,266) (176,399) (60,282) (71,724) Class I .................................................... (2,197) -- (12,864) -- -------------- ------------- -------------- ------------- (10,410,516) (9,731,669) (27,234,440) (50,036,219) -------------- ------------- -------------- ------------- NET INCREASE IN NET ASSETS FROM SHARES OF BENEFICIAL INTEREST TRANSACTIONS ...................................... 18,538,824 12,291,934 33,893,578 17,246,351 -------------- ------------- -------------- ------------- REDEMPTION FEES .............................................. 625 131 -- -- -------------- ------------- -------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS ........................ 6,361,808 15,351,487 (6,054,677) 21,250,801 NET ASSETS: Beginning of period .......................................... 52,960,885 37,609,398 193,782,816 172,532,015 -------------- ------------- -------------- ------------- End of period ................................................ $ 59,322,693 $ 52,960,885 $ 187,728,139 $ 193,782,816 ============== ============= ============== ============= Undistributed net investment income .......................... $ 16,045 $ 195,407 $ 481,856 $ 531,934 ============== ============= ============== =============
See accompanying notes to financial statements. 18 GAMCO WESTWOOD FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) --------------------------------------------------------------------------------
BALANCED FUND INTERMEDIATE BOND FUND ------------------------------ ------------------------------ FOR THE SIX FOR THE FOR THE SIX FOR THE MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MARCH 31, 2008 SEPTEMBER 30, MARCH 31, 2008 SEPTEMBER 30, (UNAUDITED) 2007 (UNAUDITED) 2007 -------------- ------------- -------------- ------------- OPERATIONS: Net investment income ........................................ $ 1,474,954 $ 2,722,688 $ 175,085 $ 350,907 Net realized gain (loss) on investments ...................... 1,517,340 11,476,050 30,518 (2,613) Net change in unrealized appreciation/depreciation on investments ................................................ (7,110,828) 5,542,110 302,647 2,748 -------------- ------------- -------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................................................. (4,118,534) 19,740,848 508,250 351,042 -------------- ------------- -------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income Class AAA .................................................. (1,472,408) (2,562,323) (158,642) (350,708) Class A .................................................... (49,410) (81,823) (1,310) (2,513) Class B .................................................... (930) (1,846) (968) (4,748) Class C .................................................... (6,763) (9,350) (13,862) (73) Class I .................................................... (1,050) -- (303) -- -------------- ------------- -------------- ------------- (1,530,561) (2,655,342) (175,085) (358,042) -------------- ------------- -------------- ------------- Net realized gain on investments Class AAA .................................................. (11,109,529) (18,214,060) -- -- Class A .................................................... (405,420) (697,805) -- -- Class B .................................................... (14,126) (22,753) -- -- Class C .................................................... (71,581) (127,276) -- -- -------------- ------------- -------------- ------------- (11,600,656) (19,061,894) -- -- -------------- ------------- -------------- ------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS .......................... (13,131,217) (21,717,236) (175,085) (358,042) -------------- ------------- -------------- ------------- SHARES OF BENEFICIAL INTEREST TRANSACTIONS: Proceeds from shares issued Class AAA .................................................. 14,448,282 27,827,449 1,743,684 1,292,471 Class A .................................................... 676,653 376,204 70,485 9,000 Class B .................................................... -- 43,323 -- -- Class C .................................................... 380,625 174,540 3,175,340 89,952 Class I .................................................... 190,164 -- 47,747 -- -------------- ------------- -------------- ------------- 15,695,724 28,421,516 5,037,256 1,391,423 -------------- ------------- -------------- ------------- Proceeds from reinvestment of distributions Class AAA .................................................. 12,175,218 19,991,375 116,868 272,125 Class A .................................................... 402,911 685,203 1,047 2,478 Class B .................................................... 10,370 15,985 201 880 Class C .................................................... 63,555 108,766 11,584 17 Class I .................................................... 1,050 -- 302 -- -------------- ------------- -------------- ------------- 12,653,104 20,801,329 130,002 275,500 -------------- ------------- -------------- ------------- Cost of shares redeemed Class AAA .................................................. (18,170,812) (38,789,648) (867,109) (2,061,718) Class A .................................................... (344,223) (1,054,294) (25,006) (34,365) Class B .................................................... (47,936) (3,077) (46,497) (190,022) Class C .................................................... (104,762) (209,433) (148,939) (75,258) -------------- ------------- -------------- ------------- (18,667,733) (40,056,452) (1,087,551) (2,361,363) -------------- ------------- -------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS FROM SHARES OF BENEFICIAL INTEREST TRANSACTIONS ........................... 9,681,095 9,166,393 4,079,707 (694,440) -------------- ------------- -------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS ........................ (7,568,656) 7,190,005 4,412,872 (701,440) NET ASSETS: Beginning of period .......................................... 158,900,515 151,710,510 9,589,875 10,291,315 -------------- ------------- -------------- ------------- End of period ................................................ $ 151,331,859 $ 158,900,515 $ 14,002,747 $ 9,589,875 ============== ============= ============== ============= Undistributed net investment income .......................... $ 18,029 $ 73,636 -- -- ============== ============= ============== =============
See accompanying notes to financial statements. 19 GAMCO WESTWOOD FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) --------------------------------------------------------------------------------
SMALLCAP EQUITY FUND INCOME FUND ------------------------------ ------------------------------ FOR THE SIX FOR THE FOR THE SIX FOR THE MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MARCH 31, 2008 SEPTEMBER 30, MARCH 31, 2008 SEPTEMBER 30, (UNAUDITED) 2007 (UNAUDITED) 2007 -------------- ------------- -------------- ------------- OPERATIONS: Net investment income (loss) ................................. $ (5,334) $ (32,083) $ 208,025 $ 672,609 Net realized gain (loss) on investments ...................... 468,423 1,433,147 (192,723) 304,989 Net change in unrealized appreciation/depreciation on investments ................................................ (2,102,320) 463,604 (1,405,525) 1,934 -------------- ------------- -------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................................................. (1,639,231) 1,864,668 (1,390,223) 979,532 -------------- ------------- -------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income Class AAA .................................................. -- (105,452) (290,333) (635,769) Class A .................................................... -- (4,971) (1,796) (3,135) Class B .................................................... -- (18) (1) (78) Class C .................................................... -- (1,872) (6,788) (4,873) Class I .................................................... -- -- (1,274) -- -------------- ------------- -------------- ------------- -- (112,313) (300,192) (643,855) -------------- ------------- -------------- ------------- Net realized gains on investments Class AAA .................................................. -- -- (271,625) (2,261,447) Class A .................................................... -- -- (2,299) (20,488) Class B .................................................... -- -- (2) (414) Class C .................................................... -- -- (7,478) (3,062) -------------- ------------- -------------- ------------- -- -- (281,404) (2,285,411) -------------- ------------- -------------- ------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS .......................... -- (112,313) (581,596) (2,929,266) -------------- ------------- -------------- ------------- SHARES OF BENEFICIAL INTEREST TRANSACTIONS: Proceeds from shares issued Class AAA .................................................. 1,373,346 3,612,664 1,940,645 13,573,132 Class A .................................................... 479,230 382,618 41,332 81,406 Class B .................................................... -- -- 1 -- Class C .................................................... 18,807 37,487 -- 386,845 Class I .................................................... 164,255 -- 72,427 -- -------------- ------------- -------------- ------------- 2,035,638 4,032,769 2,054,405 14,041,383 -------------- ------------- -------------- ------------- Proceeds from reinvestment of distributions Class AAA .................................................. -- 77,961 534,294 2,752,191 Class A .................................................... -- 4,969 3,861 22,075 Class B .................................................... -- 18 -- 463 Class C .................................................... -- 1,871 13,547 7,879 Class I .................................................... -- -- 1,274 -- -------------- ------------- -------------- ------------- -- 84,819 552,976 2,782,608 -------------- ------------- -------------- ------------- Cost of shares redeemed Class AAA .................................................. (2,259,142) (5,355,936) (7,867,397) (8,584,925) Class A .................................................... (370,803) (95,381) (53,195) (104,769) Class B .................................................... -- (70) (2,007) -- Class C .................................................... (46,399) (27,549) (20,430) (3,037) Class I .................................................... (5,659) -- -- -- -------------- ------------- -------------- ------------- (2,682,003) (5,478,936) (7,943,029) (8,692,731) -------------- ------------- -------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS FROM SHARES OF BENEFICIAL INTEREST TRANSACTIONS ........................... (646,365) (1,361,348) (5,335,648) 8,131,260 -------------- ------------- -------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS ........................ (2,285,596) 391,007 (7,307,467) 6,181,526 NET ASSETS: Beginning of period .......................................... 9,755,291 9,364,284 18,350,463 12,168,937 -------------- ------------- -------------- ------------- End of period ................................................ $ 7,469,695 $ 9,755,291 $ 11,042,996 $ 18,350,463 ============== ============= ============== ============= Undistributed net investment income .......................... -- -- $ 62,597 $ 154,764 ============== ============= ============== =============
See accompanying notes to financial statements. 20 GAMCO WESTWOOD FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- Selected data for a share of beneficial interest outstanding throughout each period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS ------------------------------------------ ---------------------------------------- NET NET ASSET NET REALIZED AND TOTAL NET VALUE, INVESTMENT UNREALIZED FROM NET REALIZED PERIOD ENDED BEGINNING INCOME GAIN (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL REDEMPTION SEPTEMBER 30 OF PERIOD (LOSS)(a)(b) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS FEES(a) ------------ --------- ------------ -------------- ------------ ---------- ----------- ------------- ---------- MIGHTY MITES(SM) FUND CLASS AAA 2008(d) $ 17.05 $ 0.01 $ (1.86) $ (1.85) $ (0.06) $ (1.47) $ (1.53) $ 0.00(e) 2007 16.01 0.08 3.42 3.50 -- (2.46) (2.46) 0.00(e) 2006 16.73 (0.04) 1.34 1.30 -- (2.02) (2.02) -- 2005 15.07 (0.02) 2.97 2.95 -- (1.29) (1.29) 0.00(e) 2004 13.42 (0.03) 1.84 1.81 -- (0.16) (0.16) 0.00(e) 2003 11.29 (0.03) 2.25 2.22 (0.04) (0.05) (0.09) -- CLASS A 2008(d) $ 16.94 $ (0.01) $ (1.86) $ (1.87) $ (0.07) $ (1.47) $ (1.54) $ 0.00(e) 2007 15.94 0.36 3.10 3.46 -- (2.46) (2.46) 0.00(e) 2006 16.70 (0.10) 1.36 1.26 -- (2.02) (2.02) -- 2005 15.08 (0.06) 2.97 2.91 -- (1.29) (1.29) 0.00(e) 2004 13.46 (0.06) 1.84 1.78 -- (0.16) (0.16) 0.00(e) 2003 11.36 (0.05) 2.26 2.21 (0.06) (0.05) (0.11) -- CLASS B 2008(d) $ 16.21 $ (0.04) $ (1.77) $ (1.81) -- $ (1.47) $ (1.47) $ 0.00(e) 2007 15.43 (0.06) 3.30 3.24 -- (2.46) (2.46) 0.00(e) 2006 16.31 (0.15) 1.29 1.14 -- (2.02) (2.02) -- 2005 14.82 (0.14) 2.92 2.78 -- (1.29) (1.29) 0.00(e) 2004 13.30 (0.14) 1.82 1.68 -- (0.16) (0.16) 0.00(e) 2003 11.24 (0.11) 2.22 2.11 -- (0.05) (0.05) -- CLASS C 2008(d) $ 16.13 $ (0.05) $ (1.76) $ (1.81) $ (0.01) $ (1.47) $ (1.48) $ 0.00(e) 2007 15.35 0.10 3.14 3.24 -- (2.46) (2.46) 0.00(e) 2006 16.24 (0.15) 1.28 1.13 -- (2.02) (2.02) -- 2005 14.77 (0.14) 2.90 2.76 -- (1.29) (1.29) 0.00(e) 2004 13.25 0.02 1.66 1.68 -- (0.16) (0.16) 0.00(e) 2003 11.19 (0.12) 2.23 2.11 -- (0.05) (0.05) -- CLASS I 2008(h) $ 13.96 $ 0.02 $ (0.30) $ (0.28) -- -- -- $ 0.00(e) RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA ----------------------------------------------------------------------------------- OPERATING EXPENSES OPERATING NET OF OPERATING NET NET EXPENSES WAIVERS/ EXPENSES ASSET ASSETS, NET NET OF REIMBURSE- BEFORE VALUE, END OF INVESTMENT WAIVERS/ MENTS/ WAIVERS/ PORTFOLIO PERIOD ENDED END OF TOTAL PERIOD INCOME REIMBURSE- CUSTODIAN REIMBURSE- TURNOVER SEPTEMBER 30 PERIOD RETURN+ (IN 000'S) (LOSS)(b) MENTS FEE CREDITS MENTS(c) RATE++ ------------ --------- ------- -------------- ------------ ---------- ----------- ------------- ---------- MIGHTY MITES(SM) FUND CLASS AAA 2008(d) $ 13.67 (11.5)% $ 50,381 0.12%(f) 1.66%(f) 1.66%(f) 1.66%(f)(g) 6% 2007 17.05 23.9 48,252 0.48 1.64 1.64 1.64 21 2006 16.01 9.0 36,843 (0.28) 1.61 1.61 1.61(g) 4 2005 16.73 20.4 46,497 (0.13) 1.50 1.50 1.74 9 2004 15.07 13.6 50,805 (0.20) 1.50 1.50 1.66 36 2003 13.42 19.8 51,138 (0.21) 1.50 1.50 1.66 14 CLASS A 2008(d) $ 13.53 (11.7)% $ 4,934 (0.14)%(f) 1.91%(f) 1.91%(f) 1.91%(f)(g) 6% 2007 16.94 23.8 2,246 2.13 1.89 1.89 1.89 21 2006 15.94 8.7 3 (0.63) 1.86 1.86 1.86(g) 4 2005 16.70 20.1 41 (0.41) 1.75 1.75 2.00 9 2004 15.08 13.3 39 (0.42) 1.75 1.75 1.91 36 2003 13.46 19.7 33 (0.46) 1.75 1.75 1.91 14 CLASS B 2008(d) $ 12.93 (11.9)% $ 203 (0.61)%(f) 2.41%(f) 2.41%(f) 2.41%(f)(g) 6% 2007 16.21 23.0 422 (0.40) 2.39 2.39 2.39 21 2006 15.43 8.1 452 (1.00) 2.36 2.36 2.36(g) 4 2005 16.31 19.6 433 (0.89) 2.25 2.25 2.49 9 2004 14.82 12.7 400 (0.95) 2.25 2.25 2.41 36 2003 13.30 18.9 517 (0.96) 2.25 2.25 2.41 14 CLASS C 2008(d) $ 12.84 (11.9)% $ 3,527 (0.65)%(f) 2.41%(f) 2.41%(f) 2.41%(f)(g) 6% 2007 16.13 23.2 2,041 0.65 2.39 2.39 2.39 21 2006 15.35 8.1 311 (1.01) 2.36 2.36 2.36(g) 4 2005 16.24 19.5 327 (0.91) 2.25 2.25 2.49 9 2004 14.77 12.7 308 (0.89) 2.25 2.25 2.41 36 2003 13.25 19.0 99 (0.96) 2.25 2.25 2.41 14 CLASS I 2008(h) $ 13.68 (11.5)% $ 278 0.56%(f) 1.42%(f) 1.42%(f) 1.42%(f)(g) 6%
---------- + Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including reinvestment of distributions and does not reflect applicable sales charges. Total return for the period of less than one year is not annualized. ++ Effective in 2008, a change in accounting policy was adopted with regard to the calculation of the portfolio turnover rate. Had this policy been adopted retroactively, the portfolio turnover rate for the fiscal years ended September 30, 2007, 2004, and 2003 would have been 23%, 39%, and 23%, respectively. The portfolio turnover rate for the fiscal years ended 2006 and 2005 would have been as shown. (a) Per share data is calculated using the average shares outstanding method. (b) Due to capital share activity throughout the periods, net investment income per share and the ratio to average net assets are not necessarily correlated among the different classes of shares. (c) Prior to the period beginning October 1, 2005, fees and expenses were voluntarily reduced and/or reimbursed. If such fee reductions and/or reimbursements had not occurred, the ratio would have been as shown. (d) For the six months ended March 31, 2008, unaudited. (e) Amount represents less than $0.005 per share. (f) Annualized. (g) The Fund incurred interest expense during the fiscal year ended September If interest expense had not been incurred, the ratios of operating expenses to average net assets 30, 2006. would have been 1.57% (Class AAA), 1.82% (Class A), and 2.32% (Class B and Class C), respectively. For the six months ended March 31, 2008 and the fiscal year ended September 30, 2007, interest expense was minimal. (h) From the commencement of offering Class I Shares on January 11, 2008 through March 31, 2008. See accompanying notes to financial statements. 21 GAMCO 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 VALUE, INVESTMENT UNREALIZED FROM NET NET REALIZED PERIOD ENDED BEGINNING INCOME GAIN (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL REDEMPTION SEPTEMBER 30 OF PERIOD (LOSS)(a) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS FEES(a) ------------ --------- ----------- -------------- ---------- ---------- ------------ ------------- ------------ EQUITY FUND CLASS AAA 2008(b) $ 12.63 $ 0.04 $ (0.92) $ (0.88) $ (0.05) $ (1.58) $ (1.63) -- 2007 12.51 0.04 2.15 2.19 (0.05) (2.02) (2.07) -- 2006 11.08 0.06 1.42 1.48 (0.05) -- (0.05) -- 2005 9.32 0.07 1.79 1.86 (0.10) -- (0.10) $ (0.00)(d) 2004 7.99 0.08 1.36 1.44 (0.11) -- (0.11) 0.00(d) 2003 7.02 0.09 0.96 1.05 (0.08) -- (0.08) -- CLASS A 2008(b) $ 12.57 $ 0.03 $ (0.91) $ (0.88) $ (0.04) $ (1.58) $ (1.62) -- 2007 12.45 0.01 2.15 2.16 (0.02) (2.02) (2.04) -- 2006 11.05 0.03 1.41 1.44 (0.04) -- (0.04) -- 2005 9.28 0.06 1.75 1.81 (0.04) -- (0.04) $ (0.00)(d) 2004 7.97 0.05 1.35 1.40 (0.09) -- (0.09) 0.00(d) 2003 6.99 0.07 0.97 1.04 (0.06) -- (0.06) -- CLASS B 2008(b) $ 12.36 $ 0.00(d) $ (0.90) $ (0.90) -- $ (1.58) $ (1.58) -- 2007 12.31 (0.05) 2.12 2.07 -- (2.02) (2.02) -- 2006 10.96 (0.02) 1.40 1.38 $ (0.03) -- (0.03) -- 2005 9.21 (0.00)(d) 1.75 1.75 -- -- -- $ (0.00)(d) 2004 7.92 0.02 1.34 1.36 (0.07) -- (0.07) 0.00(d) 2003 6.97 0.04 0.95 0.99 (0.04) -- (0.04) -- CLASS C 2008(b) $ 12.36 $ 0.00(d) $ (0.90) $ (0.90) -- $ (1.58) $ (1.58) -- 2007 12.31 (0.05) 2.12 2.07 -- (2.02) (2.02) -- 2006 10.97 (0.03) 1.40 1.37 $ (0.03) -- (0.03) -- 2005 9.24 (0.01) 1.77 1.76 (0.03) -- (0.03) $ (0.00)(d) 2004 7.89 0.01 1.34 1.35 -- -- -- 0.00(d) 2003 6.98 0.04 0.96 1.00 (0.09) -- (0.09) -- CLASS I 2008(e) $ 10.35 $ 0.02 $ (0.24) $ (0.22) -- -- -- -- RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA ----------------------------------------------------------------- OPERATING NET NET ASSETS, EXPENSES ASSET VALUE, END OF NET NET OF PORTFOLIO PERIOD ENDED END OF TOTAL PERIOD INVESTMENT OPERATING CUSTODIAN TURNOVER SEPTEMBER 30 PERIOD RETURN+ (IN 000'S) INCOME (LOSS) EXPENSES FEE CREDITS RATE++ ------------ ------------ ------- ----------- ------------- --------- ----------- --------- EQUITY FUND CLASS AAA 2008(b) $ 10.12 (7.7)% $ 180,321 0.80%(c) 1.48%(c) 1.47%(c) 20% 2007 12.63 19.7 189,913 0.37 1.52 1.47 58 2006 12.51 13.4 169,404 0.55 1.54 1.50 73 2005 11.08 20.0 178,394 0.69 1.51 1.49 59 2004 9.32 18.1 179,407 0.90 1.50 1.49 44 2003 7.99 15.1 221,635 1.19 1.48 1.47 50 CLASS A 2008(b) $ 10.07 (7.8)% $ 6,783 0.57%(c) 1.73%(c) 1.72%(c) 20% 2007 12.57 19.5 3,527 0.12 1.77 1.72 58 2006 12.45 13.1 2,780 0.27 1.79 1.75 73 2005 11.05 19.6 2,267 0.59 1.76 1.74 59 2004 9.28 17.7 3,328 0.61 1.75 1.74 44 2003 7.97 15.0 2,923 0.94 1.73 1.72 50 CLASS B 2008(b) $ 9.88 (8.1)% $ 20 0.05%(c) 2.23%(c) 2.22%(c) 20% 2007 12.36 18.8 23 (0.39) 2.27 2.22 58 2006 12.31 12.6 32 (0.20) 2.29 2.25 73 2005 10.96 19.0 30 (0.01) 2.26 2.24 59 2004 9.21 17.2 38 0.21 2.25 2.24 44 2003 7.92 14.3 74 0.44 2.23 2.22 50 CLASS C 2008(b) $ 9.88 (8.1)% $ 348 0.06%(c) 2.23%(c) 2.22%(c) 20% 2007 12.36 18.8 320 (0.39) 2.27 2.22 58 2006 12.31 12.6 316 (0.28) 2.29 2.25 73 2005 10.97 19.1 149 (0.06) 2.26 2.24 59 2004 9.24 17.1 152 0.11 2.25 2.24 44 2003 7.89 14.4 129 0.44 2.23 2.22 50 CLASS I 2008(e) $ 10.13 (7.6)% $ 256 1.09%(c) 1.23%(c) 1.22%(c) 20%
---------- + Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including reinvestment of distributions and does not reflect applicable sales charges. Total return for a period of less than one year is not annualized. ++ Effective in 2008, a change in accounting policy was adopted with regard to the calculation of the portfolio turnover rate. Had this policy been adopted retroactively, the portfolio turnover rate for the fiscal years ended September 30, 2007, 2006, 2005, 2004, and 2003 would have been as shown. (a) Per share data is calculated using the average shares outstanding method. (b) For the six months ended March 31, 2008, unaudited. (c) Annualized. (d) Amount represents less than $0.005 per share. (e) From the commencement of offering Class I Shares on January 11, 2008 through March 31, 2008. See accompanying notes to financial statements. 22 GAMCO 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 VALUE, NET UNREALIZED FROM NET REALIZED PERIOD ENDED BEGINNING INVESTMENT GAIN (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL REDEMPTION SEPTEMBER 30 OF PERIOD INCOME(a) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS FEES(a) ------------ --------- ---------- -------------- ---------- ---------- ----------- ------------- ---------- BALANCED FUND CLASS AAA 2008(b) $12.58 $0.11 $(0.42) $(0.31) $(0.12) $(0.93) $(1.05) -- 2007 12.82 0.22 1.36 1.58 (0.21) (1.61) (1.82) -- 2006 12.74 0.22 0.95 1.17 (0.24) (0.85) (1.09) -- 2005 11.47 0.20 1.26 1.46 (0.19) -- (0.19) $0.00(d) 2004 10.51 0.21 0.97 1.18 (0.22) -- (0.22) 0.00(d) 2003 9.65 0.21 0.87 1.08 (0.22) -- (0.22) -- CLASS A 2008(b) $12.63 $0.10 $(0.42) $(0.32) $(0.11) $(0.93) $(1.04) -- 2007 12.87 0.19 1.36 1.55 (0.18) (1.61) (1.79) -- 2006 12.74 0.19 0.95 1.14 (0.16) (0.85) (1.01) -- 2005 11.44 0.17 1.26 1.43 (0.13) -- (0.13) $0.00(d) 2004 10.48 0.18 0.97 1.15 (0.19) -- (0.19) 0.00(d) 2003 9.62 0.19 0.86 1.05 (0.19) -- (0.19) -- CLASS B 2008(b) $12.72 $0.07 $(0.43) $(0.36) $(0.07) $(0.93) $(1.00) -- 2007 12.95 0.13 1.37 1.50 (0.12) (1.61) (1.73) -- 2006 12.76 0.13 0.95 1.08 (0.04) (0.85) (0.89) -- 2005 11.43 0.11 1.26 1.37 (0.04) -- (0.04) $0.00(d) 2004 10.48 0.13 0.96 1.09 (0.14) -- (0.14) 0.00(d) 2003 9.63 0.14 0.86 1.00 (0.15) -- (0.15) -- CLASS C 2008(b) $12.74 $0.07 $(0.43) $(0.36) $(0.08) $(0.93) $(1.01) -- 2007 12.97 0.13 1.37 1.50 (0.12) (1.61) (1.73) -- 2006 12.78 0.13 0.95 1.08 (0.04) (0.85) (0.89) -- 2005 11.45 0.11 1.26 1.37 (0.04) -- (0.04) $0.00(d) 2004 10.49 0.13 0.97 1.10 (0.14) -- (0.14) 0.00(d) 2003 9.62 0.14 0.87 1.01 (0.14) -- (0.14) -- CLASS I 2008(e) $11.33 $0.05 $(0.10) $(0.05) $(0.06) -- $(0.06) -- RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA -------------------------------------------------------------- OPERATING NET NET ASSETS, EXPENSES ASSET VALUE, END OF NET NET OF PORTFOLIO PERIOD ENDED END OF TOTAL PERIOD INVESTMENT OPERATING CUSTODIAN TURNOVER SEPTEMBER 30 PERIOD RETURN+ (IN 000'S) INCOME EXPENSES FEE CREDITS RATE++ ------------ ------------ ------- ----------- ---------- --------- ----------- --------- BALANCED FUND CLASS AAA 2008(b) $11.22 (2.7)% $144,129 1.93%(c) 1.23%(c) 1.21%(c) 18% 2007 12.58 13.6 152,185 1.76 1.27 1.19 46 2006 12.82 9.8 145,028 1.78 1.32 1.27 68 2005 12.74 12.8 144,572 1.67 1.25 1.22 56 2004 11.47 11.3 136,400 1.92 1.23 1.22 41 2003 10.51 11.2 152,409 2.10 1.23 1.20 56 CLASS A 2008(b) $11.27 (2.8)% $ 5,648 1.68%(c) 1.48%(c) 1.46%(c) 18% 2007 12.63 13.3 5,519 1.51 1.52 1.44 46 2006 12.87 9.5 5,596 1.53 1.57 1.52 68 2005 12.74 12.6 5,658 1.42 1.50 1.47 56 2004 11.44 11.0 5,298 1.66 1.48 1.47 41 2003 10.48 11.0 5,070 1.85 1.48 1.45 56 CLASS B 2008(b) $11.36 (3.1)% $ 135 1.20%(c) 1.98%(c) 1.96%(c) 18% 2007 12.72 12.7 194 1.02 2.02 1.94 46 2006 12.95 9.0 141 1.02 2.07 2.02 68 2005 12.76 12.0 138 0.93 2.00 1.97 56 2004 11.43 10.4 163 1.18 1.98 1.97 41 2003 10.48 10.4 184 1.35 1.98 1.95 56 CLASS C 2008(b) $11.37 (3.1)% $ 1,231 1.19%(c) 1.98%(c) 1.96%(c) 18% 2007 12.74 12.7 1,003 1.01 2.02 1.94 46 2006 12.97 9.0 946 1.02 2.07 2.02 68 2005 12.78 12.0 982 0.92 2.00 1.97 56 2004 11.45 10.5 846 1.19 1.98 1.97 41 2003 10.49 10.5 456 1.35 1.98 1.95 56 CLASS I 2008(e) $11.22 (2.6)% $ 188 2.14%(c) 0.98%(c) 0.96%(c) 18%
---------- + Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including reinvestment of distributions and does not reflect applicable sales charges. Total return for a period of less than one year is not annualized. ++ Effective in 2008, a change in accounting policy was adopted with regard to the calculation of the portfolio turnover rate. Had this policy been adopted retroactively, the portfolio turnover rate for the fiscal year ended September 30, 2005 would have been 55%. The portfolio turnover rate for the fiscal years ended 2007, 2006, 2004, and 2003 would have been as shown. (a) Per share data is calculated using the average shares outstanding method. (b) For the six months ended March 31, 2008, unaudited. (c) Annualized. (d) Amount represents less than $0.005 per share. (e) From the commencement of offering Class I Shares on January 11, 2008 through March 31, 2008. See accompanying notes to financial statements. 23 GAMCO 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 VALUE, NET UNREALIZED GAIN FROM NET REALIZED PERIOD ENDED BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL REDEMPTION SEPTEMBER 30 OF PERIOD INCOME(a) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS FEES(a) ------------ --------- ---------- --------------- ---------- ---------- ----------- ------------- ---------- INTERMEDIATE BOND FUND CLASS AAA 2008(c) $ 10.80 $ 0.18 $ 0.35 $ 0.53 $ (0.18) -- $ (0.18) -- 2007 10.81 0.40 0.00(e) 0.40 (0.41) -- (0.41) -- 2006 10.93 0.39 (0.11) 0.28 (0.39) $(0.01) (0.40) -- 2005 11.18 0.34 (0.16) 0.18 (0.34) (0.09) (0.43) $(0.00)(e) 2004 11.31 0.33 (0.12) 0.21 (0.33) (0.01) (0.34) 0.00(e) 2003 11.30 0.31 -- 0.31 (0.30) -- (0.30) -- CLASS A 2008(c) $ 10.80 $ 0.17 $ 0.35 $ 0.52 $ (0.17) -- $ (0.17) -- 2007 10.81 0.39 0.00(e) 0.39 (0.40) -- (0.40) -- 2006 10.93 0.39 (0.12) 0.27 (0.38) $(0.01) (0.39) -- 2005 11.18 0.33 (0.16) 0.17 (0.33) (0.09) (0.42) $(0.00)(e) 2004 11.31 0.32 (0.12) 0.20 (0.32) (0.01) (0.33) 0.00(e) 2003 11.30 0.30 0.01 0.31 (0.30) -- (0.30) -- CLASS B 2008(c) $ 10.80 $ 0.14 $ 0.35 $ 0.49 $ (0.14) -- $ (0.14) -- 2007 10.81 0.32 0.00(e) 0.32 (0.33) -- (0.33) -- 2006 10.93 0.31 (0.11) 0.20 (0.31) $(0.01) (0.32) -- 2005 11.18 0.26 (0.16) 0.10 (0.26) (0.09) (0.35) $(0.00)(e) 2004 11.30 0.25 (0.11) 0.14 (0.25) (0.01) (0.26) 0.00(e) 2003 11.29 0.23 -- 0.23 (0.22) -- (0.22) -- CLASS C 2008(c) $ 10.28 $ 0.12 $ 0.34 $ 0.46 $ (0.13) -- $ (0.13) -- 2007 10.31 0.40 0.09 0.49 (0.52) -- (0.52) -- 2006 10.82 0.32 (0.36) (0.04) (0.46) $(0.01) (0.47) -- 2005 11.17 0.27 (0.12) 0.15 (0.41) (0.09) (0.50) $(0.00)(e) 2004 11.30 0.25 (0.09) 0.16 (0.28) (0.01) (0.29) 0.00(e) 2003 11.29 0.22 0.01 0.23 (0.22) -- (0.22) -- CLASS I 2008(f) $ 11.09 $ 0.07 $ 0.06 $ 0.13 $ (0.07) -- $ (0.07) -- RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA -------------------------------------------------------------------------- OPERATING EXPENSES OPERATING NET OF OPERATING NET NET EXPENSES WAIVERS/ EXPENSES ASSET ASSETS, NET OF REIMBURSE- BEFORE VALUE, END OF NET WAIVERS/ MENTS/ WAIVERS/ PORTFOLIO PERIOD ENDED END OF TOTAL PERIOD INVESTMENT REIMBURSE- CUSTODIAN REIMBURSE- TURNOVER SEPTEMBER 30 PERIOD RETURN+ (IN 000'S) INCOME MENTS FEE CREDITS MENTS(b) RATE++ ------------ ------ ------- ---------- ---------- ---------- ----------- --------- --------- INTERMEDIATE BOND FUND CLASS AAA 2008(c) $11.15 4.9% $10,713 3.20%(d) 1.07%(d) 1.00%(d) 1.57%(d) 15% 2007 10.80 3.7 9,413 3.73 1.10 1.00 1.64 20 2006 10.81 2.7 9,917 3.65 1.06 1.00 1.53 35 2005 10.93 1.7 10,272 3.10 1.04 1.00 1.79 33 2004 11.18 2.0 9,553 2.97 1.02 1.00 1.76 32 2003 11.31 2.8 12,174 2.70 1.06 1.00 1.57 73 CLASS A 2008(c) $11.15 4.8% $ 118 3.05%(d) 1.17%(d) 1.10%(d) 1.67%(d) 15% 2007 10.80 3.7 69 3.64 1.20 1.10 1.74 20 2006 10.81 2.6 92 3.59 1.16 1.10 1.63 35 2005 10.93 1.6 58 3.00 1.14 1.10 1.88 33 2004 11.18 1.8 75 2.88 1.12 1.10 1.86 32 2003 11.31 2.8 138 2.60 1.16 1.10 1.67 73 CLASS B 2008(c) $11.15 4.5% $ 49 2.55%(d) 1.82%(d) 1.75%(d) 2.32%(d) 15% 2007 10.80 3.0 93 2.97 1.85 1.75 2.39 20 2006 10.81 2.0 282 2.87 1.81 1.75 2.28 35 2005 10.93 0.9 381 2.34 1.79 1.75 2.53 33 2004 11.18 1.3 456 2.23 1.77 1.75 2.51 32 2003 11.30 2.1 502 1.95 1.81 1.75 2.32 73 CLASS C 2008(c) $10.61 4.5% $ 3,075 2.24%(d) 1.82%(d) 1.75%(d) 2.33%(d) 15% 2007 10.28 4.8 15 3.96 1.85 1.75 2.39 20 2006 10.31 (0.3) 0.1 3.08 1.81 1.75 2.28 35 2005 10.82 1.4 0.1 2.50 1.79 1.75 2.90 33 2004 11.17 1.5 0 2.21 1.77 1.75 2.51 32 2003 11.30 2.1 46 1.95 1.81 1.75 2.32 73 CLASS I 2008(f) $11.15 4.8% $ 48 3.07%(d) 0.82%(d) 0.75%(d) 1.33%(d) 15%
---------- + Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including reinvestment of distributions and does not reflect applicable sales charges. Total return for a period of less than one year is not annualized. ++ Effective in 2008, a change in accounting policy was adopted with regard to the calculation of the portfolio turnover rate. Had this policy been adopted retroactively, the portfolio turnover rate for the fiscal years ended September 30, 2007, 2006, 2005, 2004, and 2003 would have been as shown. (a) Per share data is calculated using the average shares outstanding method. (b) During the period, fees and expenses were voluntarily reduced and/or reimbursed. If such fee reductions and/or reimbursements had not occurred, the ratio would have been as shown. (c) For the six months ended March 31, 2008, unaudited. (d) Annualized. (e) Amount represents less than $0.005 per share. (f) From the commencement of offering Class I Shares on January 11, 2008 through March 31, 2008. See accompanying notes to financial statements. 24 GAMCO WESTWOOD FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- Selected data for a share of beneficial interest outstanding throughout each period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS ------------------------------------------- ----------------------------- NET NET NET ASSET NET REALIZED AND TOTAL ASSET VALUE, INVESTMENT UNREALIZED FROM NET VALUE, PERIOD ENDED BEGINNING INCOME GAIN (LOSS)ON INVESTMENT INVESTMENT TOTAL REDEMPTION END OF SEPTEMBER 30 OF PERIOD (LOSS)(a) INVESTMENTS OPERATIONS INCOME DISTRIBUTIOS FEES(a) PERIOD ------------ --------- ---------- ------------- -------------- ------------ ------------ ---------- ------ SMALLCAP EQUITY FUND CLASS AAA 2008(c) $ 14.99 $(0.01) $ (2.40) $(2.41) -- -- -- $12.58 2007 12.51 (0.04) 2.68 2.64 $(0.16) $(0.16) -- 14.99 2006 11.29 0.14 1.08 1.22 -- -- -- 12.51 2005 9.08 (0.01) 2.22 2.21 -- -- $(0.00)(e) 11.29 2004 8.18 (0.10) 1.00 0.90 -- -- 0.00(e) 9.08 2003 7.49 (0.08) 0.77 0.69 -- -- -- 8.18 CLASS A 2008(c) $ 14.89 $(0.02) $ (2.39) $(2.41) -- -- -- $12.48 2007 12.45 (0.09) 2.67 2.58 $(0.14) $(0.14) -- 14.89 2006 11.25 0.13 1.07 1.20 -- -- -- 12.45 2005 9.07 (0.04) 2.22 2.18 -- -- $(0.00)(e) 11.25 2004 8.18 (0.12) 1.01 0.89 -- -- 0.00(e) 9.07 2003 7.51 (0.10) 0.77 0.67 -- -- -- 8.18 CLASS B 2008(c) $ 14.44 $(0.05) $ (2.32) $(2.37) -- -- -- $12.07 2007 12.03 (0.15) 2.60 2.45 $(0.04) $(0.04) -- 14.44 2006 10.93 0.05 1.05 1.10 -- -- -- 12.03 2005 8.86 (0.08) 2.15 2.07 -- -- $(0.00)(e) 10.93 2004 8.03 (0.17) 1.00 0.83 -- -- 0.00(e) 8.86 2003 7.41 (0.13) 0.75 0.62 -- -- -- 8.03 CLASS C 2008(c) $ 14.31 $(0.05) $ (2.30) $(2.35) -- -- -- $11.96 2007 11.97 (0.14) 2.57 2.43 $(0.09) $(0.09) -- 14.31 2006 10.87 0.09 1.01 1.10 -- -- -- 11.97 2005 8.99 (0.13) 2.01 1.88 -- -- $(0.00)(e) 10.87 2004 8.15 (0.17) 1.01 0.84 -- -- 0.00(e) 8.99 2003 7.47 (0.10) 0.78 0.68 -- -- -- 8.15 CLASS I 2008(g) $ 12.92 $ 0.01 $ (0.35) $(0.34) -- -- -- $12.58 RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------- OPERATING EXPENSES OPERATING NET OF OPERATING NET EXPENSES WAIVERS/ EXPENSES ASSETS, NET NET OF REIMBURSE- BEFORE END OF INVESTMENT WAIVERS/ MENTS/ WAIVERS/ PORTFOLIO PERIOD ENDED TOTAL PERIOD INCOME REIMBURSE- CUSTODIAN REIMBURSE- TURNOVER SEPTEMBER 30 RETURN+ (IN 000'S) (LOSS) MENTS FEE CREDITS MENTS(b) RATE++ ------------ ---------- ------------ ------------ ---------- ----------- ---------- --------- SMALLCAP EQUITY FUND CLASS AAA 2008(c) (16.1)% $ 6,332 (0.08)%(d) 1.60%(d) 1.50%(d) 2.25%(d) 30% 2007 21.2 8,672 (0.28) 1.71 1.50 2.24 90 2006 10.8 8,717 1.16 1.71 1.50 2.02 81 2005 24.3 8,702 (0.10) 1.56 1.50 2.37 108 2004 11.0(f) 12,106 (1.11) 1.51 1.50 2.12 260 2003 9.2 15,721 (1.03) 1.53 1.50 1.99 329 CLASS A 2008(c) (16.2)% $ 752 (0.32)%(d) 1.85%(d) 1.75%(d) 2.50%(d) 30% 2007 20.9 778 (0.62) 1.96 1.75 2.49 90 2006 10.7 403 1.04 1.96 1.75 2.27 81 2005 24.0 131 (0.35) 1.81 1.75 2.69 108 2004 10.9(f) 140 (1.31) 1.76 1.75 2.37 260 2003 8.9 112 (1.28) 1.78 1.75 2.24 329 CLASS B 2008(c) (16.4)% $ 6 (0.80)%(d) 2.35%(d) 2.25%(d) 3.00%(d) 30% 2007 20.4 7 (1.05) 2.46 2.25 2.99 90 2006 10.1 6 0.44 2.46 2.25 2.77 81 2005 23.4 10 (0.81) 2.31 2.25 3.17 108 2004 10.3(f) 20 (1.93) 2.26 2.25 2.87 260 2003 8.4 65 (1.78) 2.28 2.25 2.74 329 CLASS C 2008(c) (16.4)% $ 225 (0.74)%(d) 2.35%(d) 2.25%(d) 3.00%(d) 30% 2007 20.4 298 (1.04) 2.46 2.25 2.99 90 2006 10.1 238 0.74 2.46 2.25 2.77 81 2005 20.9 0.1 (1.40) 2.31 2.25 2.73 108 2004 10.3(f) 10 (1.98) 2.26 2.25 2.87 260 2003 9.1 111 (1.78) 2.28 2.25 2.74 329 CLASS I 2008(g) (16.1)% $ 155 0.19%(d) 1.36%(d) 1.25%(d) 2.02%(d) 30%
---------- + Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including reinvestment of distributions and does not reflect applicable sales charges. Total return for a period of less than one year is not annualized. ++ Effective in 2008, a change in accounting policy was adopted with regard to the calculation of the portfolio turnover rate. Had this policy been adopted retroactively, the portfolio turnover rate for the fiscal years ended September 30, 2007, 2006, 2005, 2004, and 2003 would have been as shown. (a) Per share data is calculated using the average shares outstanding method. (b) During the period, fees and expenses were voluntarily reduced and/or reimbursed. If such fee reductions and/or reimbursements had not occurred, the ratio would have been as shown. (c) For the six months ended March 31, 2008, unaudited. (d) Annualized. (e) Amount represents less than $0.005 per share. (f) Total return excluding the effect of the reimbursement from the Fund's Adviser of $51,180 for the year ended September 30, 2004 was 10.6%, 10.5%, 10.0%, and 9.9% for Class AAA, Class A, Class B, and Class C, respectively. The Adviser fully reimbursed the Fund for a loss on a transaction exceeding the Fund's investment restrictions, which otherwise would have reduced total return by 0.4%, 0.4%, 0.3%, and 0.4% for Class AAA, Class A, Class B, and Class C, respectively. (g) From the commencement of offering Class I Shares on January 11, 2008 through March 31, 2008. See accompanying notes to financial statements. 25 GAMCO 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 VALUE, NET UNREALIZED GAIN FROM NET REALIZED PERIOD ENDED BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL REDEMPTION SEPTEMBER 30 OF PERIOD INCOME(a) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS FEES(a) ------------ ---------- ---------- --------------- ---------- ---------- ----------- ------------- ---------- INCOME FUND CLASS AAA 2008(c) $ 10.21 $ 0.15 $ (1.17) $ (1.02) $ (0.24) $ (0.21) $ (0.45) -- 2007 12.04 0.50 0.59 1.09 (0.47) (2.45) (2.92) -- 2006 16.53 0.55 (0.31) 0.24 (0.40) (4.33) (4.73) -- 2005 14.12 0.28 3.12 3.40 (0.27) (0.73) (1.00) $ 0.01 2004 11.87 0.33 2.30 2.63 (0.33) (0.05) (0.38) 0.00(e) 2003 10.03 0.38 1.85 2.23 (0.39) -- (0.39) -- CLASS A 2008(c) $ 10.54 $ 0.14 $ (1.20) $ (1.06) $ (0.23) $ (0.21) $ (0.44) -- 2007 12.34 0.50 0.59 1.09 (0.44) (2.45) (2.89) -- 2006 16.76 0.54 (0.32) 0.22 (0.31) (4.33) (4.64) -- 2005 14.33 0.29 3.13 3.42 (0.26) (0.73) (0.99) $ 0.00(e) 2004 12.00 0.51 2.12 2.63 (0.26) (0.04) (0.30) 0.00(e) 2003 10.04 0.38 1.85 2.23 (0.27) -- (0.27) -- CLASS B 2008(c) $ 10.77 $ 0.12 $ (1.29) $ (1.17) $ (0.14) $ (0.21) $ (0.35) -- 2007 12.56 0.47 0.57 1.04 (0.38) (2.45) (2.83) -- 2006 16.86 0.48 (0.31) 0.17 (0.14) (4.33) (4.47) -- 2005 14.33 0.18 3.16 3.34 (0.08) (0.73) (0.81) $ 0.00(e) 2004 12.04 0.25 2.35 2.60 (0.27) (0.04) (0.31) 0.00(e) 2003 10.07 0.27 1.91 2.18 (0.21) -- (0.21) -- CLASS C 2008(c) $ 11.22 $ 0.13 $ (1.29) $ (1.16) $ (0.20) $ (0.21) $ (0.41) -- 2007 12.98 0.38 0.71 1.09 (0.40) (2.45) (2.85) -- 2006 17.26 0.50 (0.32) 0.18 (0.13) (4.33) (4.46) -- 2005 14.66 0.25 3.17 3.42 (0.09) (0.73) (0.82) $ 0.00(e) 2004 12.32 0.24 2.41 2.65 (0.27) (0.04) (0.31) 0.00(e) 2003 10.26 0.32 1.99 2.31 (0.25) -- (0.25) -- CLASS I 2008(f) $ 9.14 $ 0.07 $ (0.31) $ (0.24) $ (0.16) -- $ (0.16) -- RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA ------------------------------------------------------------------------------------ OPERATING EXPENSES OPERATING NET OF OPERATING NET NET EXPENSES WAIVERS/ EXPENSES ASSET ASSETS, NET OF REIMBURSE- BEFORE VALUE, END OF NET WAIVERS/ MENTS/ WAIVERS/ PORTFOLIO PERIOD ENDED END OF TOTAL PERIOD INVESTMENT REIMBURSE- CUSTODIAN REIMBURSE- TURNOVER SEPTEMBER 30 PERIOD RETURN+ (IN 000'S) INCOME MENTS FEE CREDITS MENTS(b) RATE++ ------------ ---------- ---------- --------------- ---------- ---------- ----------- ------------- ---------- INCOME FUND CLASS AAA 2008(c) $ 8.74 (10.2)% $ 10,577 3.22%(d) 1.64%(d) 1.50%(d) 1.97%(d) 10% 2007 10.21 10.0 17,871 4.65 1.76 1.50 2.20 64 2006 12.04 3.4 12,054 4.36 1.65 1.50 2.02 141 2005 16.53 24.9 16,182 1.83 1.62 1.50 2.40 58 2004 14.12 22.5 16,472 2.51 1.54 1.50 1.85 28 2003 11.87 22.8 13,923 3.70 1.56 1.50 2.05 33 CLASS A 2008(c) $ 9.04 (9.5)% $ 60 2.90%(d) 1.89%(d) 1.75%(d) 2.23%(d) 10% 2007 10.54 9.7 80 4.45 2.01 1.75 2.45 64 2006 12.34 3.2 97 4.21 1.90 1.75 2.27 141 2005 16.76 24.6 93 1.87 1.87 1.75 3.03 58 2004 14.33 22.2 5 3.96 1.79 1.75 2.10 28 2003 12.00 22.6 10 3.45 1.81 1.75 2.30 33 CLASS B 2008(c) $ 9.25 (9.8)% $ 0.1 2.34%(d) 2.39%(d) 2.25%(d) 2.71%(d) 10% 2007 10.77 9.0 2 4.16 2.51 2.25 2.94 64 2006 12.56 2.7 2 3.72 2.40 2.25 2.77 141 2005 16.86 23.9 2 1.14 2.37 2.25 3.18 58 2004 14.33 21.8 2 1.86 2.29 2.25 2.60 28 2003 12.04 22.0 2 2.95 2.31 2.25 2.80 33 CLASS C 2008(c) $ 9.65 (9.8)% $ 336 2.52%(d) 2.38%(d) 2.25%(d) 2.72%(d) 10% 2007 11.22 9.1 397 3.35 2.51 2.25 2.94 64 2006 12.98 2.8 16 3.71 2.40 2.25 2.77 141 2005 17.26 23.9 16 1.56 2.37 2.25 3.41 58 2004 14.66 21.7 5 1.79 2.29 2.25 2.60 28 2003 12.32 22.8 4 2.95 2.31 2.25 2.80 33 CLASS I 2008(f) $ 8.74 (10.1)% $ 70 3.95%(d) 1.39%(d) 1.25%(d) 1.74%(d) 10%
---------- + Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including reinvestment of distributions and does not reflect applicable sales charges. Total return for a period of less than one year is not annualized. ++ Effective in 2008, a change in accounting policy was adopted with regard to the calculation of the portfolio turnover rate. Had this policy been adopted retroactively, the portfolio turnover rate for the fiscal years ended September 30, 2007, 2006, 2005, 2004, and 2003 would have been as shown. (a) Per share data is calculated using the average shares outstanding method. (b) During the period, fees and expenses were voluntarily reduced and/or reimbursed. If such fee reductions and/or reimbursements had not occurred, the ratio would have been as shown. (c) For the six months ended March 31, 2008, unaudited. (d) Annualized. (e) Amount represents less than $0.005 per share. (f) From the commencement of offering Class I Shares on January 11, 2008 through March 31, 2008. See accompanying notes to financial statements. 26 GAMCO WESTWOOD FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -------------------------------------------------------------------------------- 1. ORGANIZATION. The GAMCO Westwood Funds (the "Trust") was organized as a Massachusetts business trust on June 12, 1986. 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: GAMCO Westwood Mighty Mites(SM) Fund ("Mighty Mites(SM) Fund"), GAMCO Westwood Equity Fund ("Equity Fund"), GAMCO Westwood Balanced Fund ("Balanced Fund"), GAMCO Westwood Intermediate Bond Fund ("Intermediate Bond Fund"), GAMCO Westwood SmallCap Equity Fund ("SmallCap Equity Fund"), and GAMCO Westwood Income Fund ("Income Fund") (individually, a "Fund" and collectively, the "Funds"), each with five classes of shares outstanding. 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. The investment objectives of each Fund are as follows: o Mighty Mites(SM) Fund seeks to provide long-term capital appreciation by investing primarily in micro-capitalization equity securities. o Equity Fund seeks to provide capital appreciation. The Fund's secondary goal is to produce current income. o Balanced Fund seeks to provide capital appreciation and current income resulting in a high total investment return consistent with prudent investment risk and a balanced investment approach. o Intermediate Bond Fund seeks to maximize total return, while maintaining a level of current income consistent with the maintenance of principal and liquidity. o SmallCap Equity Fund seeks to provide long-term capital appreciation by investing primarily in smaller capitalization equity securities. o Income Fund seeks to provide a high level of current income as well as long-term capital appreciation by investing primarily in income producing equity and fixed income securities. 2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in accordance with United States ("U.S.") generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. SECURITY VALUATION. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market's official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Trustees (the "Board") so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Teton Advisors, Inc. (the "Adviser"), formerly known as Gabelli Advisers, Inc. Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market but prior to the close of business on the day the securities are being valued. Debt instruments with remaining maturities of 60 days or less that are not credit impaired are valued at amortized cost, unless the Board determines such amount does not reflect the securities' fair value, in which case these securities will be fair valued as determined by the Board. Debt instruments having a maturity greater than 60 days for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. Futures contracts are valued at the closing settlement price of the exchange or board of trade on which the applicable contract is traded. Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons to the valuation and changes in valuation of similar securities, including a comparison of foreign securities to the equivalent U.S. dollar value ADR securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security. 27 GAMCO WESTWOOD FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) -------------------------------------------------------------------------------- In September 2006, the Financial Accounting Standards Board (the "FASB") issued Statement of Financial Accounting Standards ("SFAS") 157, Fair Value Measurements, which clarifies the definition of fair value and requires companies to expand their disclosure about the use of fair value to measure assets and liabilities in interim and annual periods subsequent to initial recognition. Adoption of SFAS 157 requires the use of the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. As of March 31, 2008, the adoption of SFAS 157 had no impact on the amounts reported in the financial statements. In March 2008, FASB issued Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161") was issued and is effective for fiscal years beginning after November 15, 2008. SFAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity's results of operations and financial position. Management is currently evaluating the implications of SFAS 161. The impact on the Funds' financial statement disclosures, if any, is currently being assessed. ACCOUNTING FOR REAL ESTATE INVESTMENT TRUSTS. The Balanced, Intermediate Bond, SmallCap Equity, and Income 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 represent a return of capital are recorded as a reduction to the cost of the individual REIT and distributions which represent a capital gain dividend are recorded as a realized long-term capital gain on investments. SECURITIES SOLD SHORT. The Mighty Mites(SM) Fund may enter into short sale transactions. Short selling involves selling securities that may or may not be owned and, at times, borrowing the same securities for delivery to the purchaser, with an obligation to replace such borrowed securities at a later date. The proceeds received from short sales are recorded as liabilities and the Mighty Mites(SM) Fund records an unrealized gain or loss to the extent of the difference between the proceeds received and the value of an open short position on the day of determination. The Mighty Mites(SM) Fund records a realized gain or loss when the short position is closed out. By entering into a short sale, the Mighty Mites(SM) Fund bears the market risk of an unfavorable change in the price of the security sold short. Dividends on short sales are recorded as an expense by the Mighty Mites(SM) Fund on the ex-dividend date and interest expense is recorded on the accrual basis. The Mighty Mites(SM) Fund did not hold any short positions as of March 31, 2008. FOREIGN CURRENCY TRANSLATIONS. The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at the current exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Funds and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial trade date and subsequent sale trade date is included in realized gain/(loss) on investments. FOREIGN SECURITIES. The Funds may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the ability to repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. issuers. FOREIGN TAXES. The Funds may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and recoveries as applicable, based upon their current interpretation of tax rules and regulations that exist in the markets in which they invest. RESTRICTED AND ILLIQUID SECURITIES. Each Fund may invest up to 10% (except for the Mighty Mites(SM) Fund, SmallCap Equity Fund, and Income Fund which may invest up to 15%) of its net assets in restricted securities issued under Section 4(2) of the Securities Act of 1933, as amended. Illiquid securities include securities the disposition of which is subject to substantial legal or contractual restrictions. The sale of illiquid securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Rule 144A securities freely saleable among qualified institutional 28 GAMCO WESTWOOD FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) -------------------------------------------------------------------------------- investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are accounted for on the trade date with realized gain or loss on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on the accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method. Dividend income is recorded on the ex-dividend date except for certain dividends which are recorded as soon as the Funds are informed of the dividend. DETERMINATION OF NET ASSET VALUE AND CALCULATION OF EXPENSES. Certain administrative expenses are common to, and allocated among, various affiliated funds. Such allocations are made on the basis of each Fund's average net assets or other criteria directly affecting the expenses as determined by the Adviser pursuant to procedures established by the Board. In calculating the NAV per share of each class, investment income, realized and unrealized gains and losses, redemption fees, and expenses other than class specific expenses, are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day. Distribution expenses are borne solely by the class incurring the expense. CUSTODIAN FEE CREDITS AND INTEREST EXPENSE. When cash balances are maintained in a Fund's custody account, the Fund receives credits which are used to offset custodian fees. The gross expenses paid under each custody arrangement are included in custodian fees in the Statements of Operations with the corresponding expense offset, if any, shown as "custodian fee credits." When cash balances are overdrawn, the Fund is charged an overdraft fee equal to 90% of the current Treasury Bill rate on outstanding balances. This amount, if any, is shown as "interest expense" in the Statements of Operations. DISTRIBUTIONS TO SHAREHOLDERS. Distributions from net investment income are declared and paid annually for the Mighty Mites(SM), Equity, and SmallCap Equity Funds, and quarterly for the Balanced and Income Funds. 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. Distributions to shareholders are recorded on the ex-dividend date. Distributions to shareholders are based on income and capital gains as determined in accordance with federal income tax regulations, which may differ from income and capital gains as determined under U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities and foreign currency transactions held by the Funds, timing differences, and differing characterizations of distributions made by the Funds. Distributions from net investment income include net realized gains on foreign currency transactions. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, adjustments are made to the appropriate capital accounts in the period when the differences arise. These reclassifications have no impact on the NAV of the Funds. The tax character of distributions paid during the fiscal year ended September 30, 2007 was as follows:
MIGHTY INTERMEDIATE SMALLCAP MITES(SM) EQUITY BALANCED BOND EQUITY INCOME FUND FUND FUND FUND FUND FUND ----------- ----------- ----------- ------------ ----------- ----------- DISTRIBUTIONS PAID FROM: Ordinary income (inclusive of short-term capital gains) ... -- $ 2,016,357 $ 6,207,247 $ 358,042 $ 112,313 $ 612,849 Net long-term capital gains .................. $ 5,310,690 27,327,666 15,509,989 -- -- 2,316,417 ----------- ----------- ----------- ------------ ----------- ----------- Total distributions paid ..................... $ 5,310,690 $29,344,023 $21,717,236 $ 358,042 $ 112,313 $ 2,929,266 =========== =========== =========== ============ =========== ===========
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 (the "Code"). It is the policy of the Funds to comply with the requirements of the Code applicable to regulated investment companies and to distribute substantially all of the Funds' net investment company taxable income and net capital gains. Therefore, no provision for federal income taxes is required. The following summarizes capital loss carryforwards and expiration dates for each Fund at September 30, 2007:
MIGHTY EQUITY BALANCED INTERMEDIATE SMALLCAP INCOME EXPIRING IN FISCAL YEAR MITES(SM) FUND FUND FUND BOND FUND EQUITY FUND FUND ----------------------- -------------- ------ -------- ------------ ----------- ------ 2010 ......................................... -- -- -- -- $1,997,993 -- 2011 ......................................... -- -- -- -- 4,845,486 -- 2012 ......................................... -- -- -- -- -- -- 2013 ......................................... -- -- -- -- -- -- 2014 ......................................... -- -- -- $ 3,903 -- -- 2015 ......................................... -- -- -- 13,018 -- --
29 GAMCO WESTWOOD FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) -------------------------------------------------------------------------------- These capital loss carryforwards are available to reduce future required distributions of net capital gains to shareholders. Under the current tax law, capital losses related to securities realized after October 31 and prior to the Funds' fiscal year end may be treated as occurring on the first day of the following year. For the fiscal year ended September 30, 2007, the Intermediate Bond Fund deferred capital losses of $19,548, and the Mighty Mites(SM), Equity, and Income Funds deferred currency losses of $1,118, $2, and $34, respectively. The following summarizes the tax cost of investments and the related unrealized appreciation/(depreciation) at March 31, 2008:
MIGHTY EQUITY BALANCED INTERMEDIATE SMALLCAP INCOME MITES(SM) FUND FUND FUND BOND FUND EQUITY FUND FUND -------------- ------------ ------------ ------------ ----------- ----------- Aggregate cost of investments ................ $ 53,783,930 $166,859,163 $135,480,411 $12,260,038 $ 8,261,965 $12,313,247 ============= ============ ============ =========== =========== =========== Gross unrealized appreciation ................ $ 11,551,963 $ 22,901,172 $ 13,070,542 $ 376,970 $ 664,375 $ 146,708 Gross unrealized depreciation ................ (6,168,665) (8,280,231) (3,984,634) (79,480) (1,373,193) (1,305,426) - ----------- ------------ ------------ ----------- ----------- ----------- Net unrealized appreciation/(depreciation) ... $ 5,383,298 $ 14,620,941 $ 9,085,908 $ 297,490 $ (708,818) $(1,158,718) ============= ============ ============ =========== =========== ===========
FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109" (the "Interpretation") established a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether a Fund is taxable in a particular jurisdiction) and required certain expanded tax disclosures. The Funds have adopted the Interpretation for all open tax years and they had no impact on the amounts reported in the financial statements. 3. INVESTMENT ADVISORY AGREEMENTS AND OTHER TRANSACTIONS. The Funds have entered into investment advisory agreements (the "Advisory Agreements") with the Adviser which provide that the Funds will pay the Adviser a fee, computed daily and paid monthly, at the annual rate of 1.00% for the Mighty Mites(SM), Equity, SmallCap Equity, and Income Funds, 0.75% for the Balanced Fund, and 0.60% for the Intermediate Bond Fund, of the value of the Fund's average daily net assets. In accordance with the Advisory Agreements, the Adviser provides a continuous investment program for the Funds' portfolios, oversees the administration of all aspects of the Funds' business and affairs, and pays the compensation of all Officers and Trustees of the Funds who are affiliated persons of the Adviser. The Adviser has contractually agreed to waive investment advisory fees and/or to reimburse expenses to the Intermediate Bond, SmallCap Equity, and Income Funds in the event annual expenses of such Funds exceed certain prescribed limits. Such fee waiver/reimbursement arrangement will continue until at least September 30, 2008. The reimbursement agreement ended on September 30, 2005 for the Mighty Mites(SM) Fund. For the six months ended March 31, 2008, the Adviser waived fees or reimbursed expenses in the amounts of $32,432, $34,073, and $30,627 for the Intermediate Bond, SmallCap Equity, and Income Funds, respectively. The Intermediate Bond, SmallCap Equity, and Income Funds are obliged to repay the Adviser for a period of two fiscal years following the fiscal year in which the Adviser reimbursed the Funds only to the extent that the operating expenses of the Funds fall below the applicable expense limitation for Class AAA of 1.00%, 1.50%, and 1.50%, respectively, and for Class A of 1.10%, 1.75%, and 1.75%, respectively, and for Class B and Class C of 1.75%, 2.25%, and 2.25%, respectively and for Class I of 0.75%, 1.25%, and 1.25%, respectively of average daily net assets, the annual limitation under the Advisory Agreements. The Mighty Mites(SM) Fund's expense ratio for the fiscal year ended September 30, 2007 was not less than its prior expense cap of 1.50%, 1.75%, 2.25%, and 2.25% for Class AAA, Class A, Class B, and Class C Shares, respectively. The Fund did not repay the Adviser for any amounts which were under the limits for the respective Class(es) up to the amount the Adviser reimbursed the Fund in the fiscal year ended September 30, 2005. As of March 31, 2008, the cumulative unreimbursed amounts which may be recovered by the Adviser within the next two fiscal years are $133,031, $117,431, and $143,913 for the Intermediate Bond, SmallCap Equity, and Income Funds, respectively. Prior to July 1, 2007, the Adviser had a Sub-Advisory Agreement with Westwood Management Corp. (the "Sub-Adviser") for all Funds except the Mighty Mites(SM) Fund, for which there was not a Sub-Advisory agreement. The Adviser paid the Sub-Adviser out of its advisory fees with respect to the Funds (except the Mighty Mites(SM) Fund) a fee computed daily and payable monthly, in an amount equal on an annualized basis to the greater of (i) $150,000 per year on an aggregate basis for all applicable Funds or (ii) 35% of the net revenues to the Adviser from the applicable Funds. Effective July 1, 2007, the Adviser assumed all of the duties and responsibilities with respect to the SmallCap Equity Fund and the Income Fund that had been delegated to the Sub-Adviser. The Sub-Adviser continues to serve as such to the Equity Fund, the Balanced Fund, and the Intermediate Bond Fund. For the six months ended March 31, 2008, the Adviser informed the Funds that it paid collectively to the Sub-Adviser fees of $409,941 for the Equity, Balanced, and Intermediate Bond Funds. Teton Advisors, Inc. remains as the investment adviser to the Mighty Mites(SM) Fund, SmallCap Equity Fund, and the Income Fund. 30 GAMCO WESTWOOD FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) -------------------------------------------------------------------------------- The Trust pays each Trustee who is not considered to be an affiliated person an annual retainer of $3,000 plus $500 for each Board meeting attended and they are reimbursed for any out of pocket expenses incurred in attending meetings. All Board committee members receive $500 per meeting attended. Trustees who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Funds. 4. DISTRIBUTION PLAN. The Trust's Board has adopted a distribution plan (the "Plan") for each class of shares except Class I Shares pursuant to Rule 12b-1 under the 1940 Act. Gabelli & Company, Inc. ("Gabelli & Company"), an affiliate of the Adviser, serves as distributor of the Funds. Under the Class AAA, Class A, Class B, and Class C Share Plans, payments are authorized to Gabelli & Company at annual rates of 0.25%, 0.50% (for the Intermediate Bond Fund's Class A Shares at an annual rate of 0.35%), 1.00%, and 1.00%, respectively, of the average daily net assets of those classes, the annual limitations under each Plan. Such payments are accrued daily and paid monthly. 5. PORTFOLIO SECURITIES. Purchases and proceeds from the sales of securities for the six months ended March 31, 2008, 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 --------------- --------------- ---------- ----------- Mighty Mites(SM) Fund ......................... $ 6,482,302 $ 1,895,617 $1,698,032 -- Equity Fund ................................... 47,440,127 37,007,279 -- -- Balanced Fund ................................. 24,512,871 22,866,902 2,122,798 $10,813,262 Intermediate Bond Fund ........................ 653,663 932,461 2,162,755 575,373 SmallCap Equity Fund .......................... 2,791,397 2,588,107 -- -- Income Fund ................................... 1,242,307 5,067,588 -- 2,205,896
6. TRANSACTIONS WITH AFFILIATES. During the six months ended March 31, 2008, the Mighty Mites(SM) Fund and the Income Fund paid brokerage commissions on security trades of $9,536 and $7,363 respectively to Gabelli & Company. Additionally, Gabelli & Company informed the Trust that it received $14,533 from investors representing commissions (sales charges and underwriting fees) on sales and redemptions of Fund shares. The cost of calculating each Fund's NAV per share is a Fund expense pursuant to the Advisory Agreement between each Fund and the Adviser. During the six months ended March 31, 2008, the Mighty Mites(SM), Equity, and Balanced Funds each paid or accrued $22,500 to the Adviser in connection with the cost of computing these Funds' NAVs. A reimbursement was not sought during the six months ended March 31, 2008 for the Intermediate Bond, SmallCap Equity, and Income Funds. 7. SHARES OF BENEFICIAL INTEREST. The Funds currently offer five classes of shares - Class AAA Shares, Class A Shares, Class B Shares, Class C Shares, and Class I Shares. Class AAA Shares are offered only to investors who acquire them directly from Gabelli & Company, or through selected broker/dealers, or the transfer agent without a sales charge. Class I Shares are offered to foundations, endowments, institutions, and employee benefit plans, also without a sales charge. Class A Shares are subject to a maximum front-end sales charge of 4.00%. Class B Shares are subject to a contingent deferred sales charge ("CDSC") upon redemption within six years of purchase and automatically convert to Class A Shares approximately eight years after the original purchase. The applicable CDSC is equal to a declining percentage of the lesser of the NAV per share at the date of the original purchase or at the date of redemption, based on the length of time held. Class C Shares are subject to a 1.00% CDSC for one year after purchase. Class B Shares are available only through exchange of Class B Shares of other funds distributed by Gabelli & Company. Class I Shares were first issued on January 11, 2008. Only the Mighty Mites(SM) Fund imposes a redemption fee of 2.00% on all classes of shares that are redeemed or exchanged on or before the seventh day after the date of a purchase. The redemption fee is deducted from the proceeds otherwise payable to the redeeming shareholders and is retained by the Mighty Mites(SM) Fund. The redemption fees retained by the Mighty Mites(SM) Fund during the six months ended March 31, 2008 and fiscal year ended September 30, 2007 amounted to $625 and $131, respectively. The redemption fee does not apply to redemptions of shares where (i) the shares were purchased through automatic reinvestment of dividends or other distributions, (ii) the redemption was initiated by the Mighty Mites(SM) Fund, (iii) the shares were purchased through programs that collect the redemption fee at the program level and remit them to the Mighty Mites(SM) Fund, or (iv) the shares were purchased through programs that the Adviser determines to have appropriate anti-short-term trading policies in place or as to which the Adviser has received assurances that look-through redemption fee procedures or effective anti-short-term trading policies and procedures are in place. 31 GAMCO WESTWOOD FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) -------------------------------------------------------------------------------- Transactions in shares of beneficial interest were as follows:
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MARCH 31, 2008 SEPTEMBER 30, MARCH 31, 2008 SEPTEMBER 30, MARCH 31, 2008 SEPTEMBER 30, (UNAUDITED) 2007 (UNAUDITED) 2007 (UNAUDITED) 2007 -------------- ------------- -------------- ------------- -------------- ------------- MIGHTY MITES(SM) FUND EQUITY FUND BALANCED FUND ----------------------------- ----------------------------- ----------------------------- CLASS AAA Shares sold .......................... 1,134,635 783,276 3,072,327 3,159,294 1,242,933 2,267,326 Shares issued upon reinvestment of distributions ...................... 278,799 309,929 2,161,815 2,471,688 1,054,920 1,709,223 Shares redeemed ...................... (555,996) (565,605) (2,452,430) (4,141,576) (1,551,976) (3,184,984) -------------- ------------- -------------- ------------- -------------- ------------- Net increase in Class AAA Shares .. 857,438 527,600 2,781,712 1,489,406 745,877 791,565 ============== ============= ============== ============= ============== ============= CLASS A Shares sold .......................... 321,406 133,030 404,770 47,697 58,208 31,137 Shares issued upon reinvestment of distributions ...................... 29,244 37 56,338 40,525 34,758 58,360 Shares redeemed ...................... (118,714) (687) (68,043) (30,804) (28,588) (87,393) -------------- ------------- -------------- ------------- -------------- ------------- Net increase in Class A Shares .... 231,936 132,380 393,065 57,418 64,378 2,104 ============== ============= ============== ============= ============== ============= CLASS B Shares sold .......................... -- -- -- -- -- 3,276 Shares issued upon reinvestment of distributions ...................... 2,672 4,999 183 355 887 1,354 Shares redeemed ...................... (12,983) (8,267) -- (1,070) (4,258) (248) -------------- ------------- -------------- ------------- -------------- ------------- Net increase (decrease) in Class B Shares ........................ (10,311) (3,268) 183 (715) (3,371) 4,382 ============== ============= ============== ============= ============== ============= CLASS C Shares sold .......................... 164,300 114,117 10,189 1,532 32,867 13,769 Shares issued upon reinvestment of distributions ...................... 13,882 3,195 4,010 4,708 5,426 9,197 Shares redeemed ...................... (30,000) (11,032) (4,842) (6,067) (8,725) (17,216) -------------- ------------- -------------- ------------- -------------- ------------- Net increase in Class C Shares .... 148,182 106,280 9,357 173 29,568 5,750 ============== ============= ============== ============= ============== ============= CLASS I* Shares sold .......................... 20,460 -- 26,562 -- 16,670 -- Shares issued upon reinvestment of distributions ...................... -- -- -- -- 93 -- Shares redeemed ...................... (157) -- (1,282) -- -- -- -------------- ------------- -------------- ------------- -------------- ------------- Net increase in Class I Shares .... 20,303 -- 25,280 -- 16,763 -- ============== ============= ============== ============= ============== ============= INTERMEDIATE BOND FUND SMALLCAP EQUITY FUND INCOME FUND ----------------------------- ----------------------------- ----------------------------- CLASS AAA Shares sold .......................... 157,394 120,020 96,489 251,401 211,206 1,290,924 Shares issued upon reinvestment of distributions ...................... 10,578 25,233 -- 5,666 58,450 269,742 Shares redeemed ...................... (78,283) (190,997) (171,611) (375,125) (810,607) (810,836) -------------- ------------- -------------- ------------- -------------- ------------- Net increase (decrease) in Class AAA Shares ....................... 89,689 (45,744) (75,122) (118,058) (540,951) 749,830 ============== ============= ============== ============= ============== ============= CLASS A Shares sold .......................... 6,292 836 37,362 26,209 4,265 7,402 Shares issued upon reinvestment of distributions ...................... 95 230 -- 363 406 2,100 Shares redeemed ...................... (2,239) (3,161) (29,399) (6,710) (5,619) (9,794) -------------- ------------- -------------- ------------- -------------- ------------- Net increase (decrease) in Class A Shares ........................ 4,148 (2,095) 7,963 19,862 (948) (292) ============== ============= ============== ============= ============== ============= CLASS B Shares issued upon reinvestment of distributions ...................... 18 81 -- 2 -- 43 Shares redeemed ...................... (4,206) (17,619) -- (5) (202) -- -------------- ------------- -------------- ------------- -------------- ------------- Net increase (decrease) in Class B Shares ........................ (4,188) (17,538) -- (3) (202) 43 ============== ============= ============== ============= ============== ============= CLASS C Shares sold .......................... 301,449 8,938 1,424 2,746 -- 33,760 Shares issued upon reinvestment of distributions ...................... 1,093 1 -- 142 1,341 700 Shares redeemed ...................... (14,226) (7,485) (3,388) (2,001) (1,992) (268) -------------- ------------- -------------- ------------- -------------- ------------- Net increase (decrease) in Class C Shares ........................ 288,316 1,454 (1,964) 887 (651) 34,192 ============== ============= ============== ============= ============== ============= CLASS I* Shares sold .......................... 4,301 -- 12,733 -- 7,910 -- Shares issued upon reinvestment of distributions ...................... 27 -- -- -- 145 -- Shares redeemed ...................... -- -- (450) -- -- -- -------------- ------------- -------------- ------------- -------------- ------------- Net increase in Class I Shares .... 4,328 -- 12,283 -- 8,055 -- ============== ============= ============== ============= ============== =============
---------- * From the commencement of offering Class I Shares on January 11, 2008. 32 GAMCO WESTWOOD FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) -------------------------------------------------------------------------------- 8. INDEMNIFICATIONS. The Funds enter into contracts that contain a variety of indemnifications. The Funds' maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. 9. OTHER MATTERS. On April 24, 2008, an affiliate of the Adviser, Gabelli Funds, LLC, entered into an administrative settlement with the SEC to resolve the SEC's inquiry regarding prior frequent trading activity in shares of the GAMCO Global Growth Fund (the "Global Growth Fund") by one investor who was banned from the Global Growth Fund in August 2002. In the settlement, the SEC found that Gabelli Funds, LLC had violated Section 206(2) of the Investment Advisers Act, Section 17(d) of the 1940 Act and Rule 17d-1 thereunder, and had aided and abetted and caused violations of Section 12(d)(1)(B)(i) of the 1940 Act. Under the terms of the settlement, Gabelli Funds LLC, while neither admitting nor denying the SEC's findings and allegations, agreed, among other things, to pay the previously reserved total of $16 million (including a $5 million penalty), of which at least $11 million will be distributed to shareholders of the Global Growth Fund in accordance with a plan to be developed by an independent distribution consultant and approved by the independent directors of the Global Growth Fund and the staff of the SEC, and to cease and desist from future violations of the above referenced federal securities laws. The settlement will not have a material adverse impact on Gabelli Funds LLC. On the same day, the SEC filed a civil action against the President of the Adviser, alleging violations of certain federal securities laws arising from the same matter. The officer is also an officer of the Global Growth Fund and other funds in the Gabelli/GAMCO fund complex. The officer denies the allegations and is continuing in his positions with the Adviser and the funds. The Adviser currently expects that any resolution of the action against the officer will not have a material adverse impact on the Adviser or its ability to fulfill its obligations under the Advisory Agreements. On a separate matter, in September 2005, Gabelli Funds, LLC was informed by the staff of the SEC that the staff may recommend to the Commission that an administrative remedy and a monetary penalty be sought from Gabelli Funds, LLC in connection with the actions of two of nine closed-end funds managed by Gabelli Funds, LLC the relating to Section 19(a) and Rule 19a-1 of the 1940 Act. These provisions require registered investment companies to provide written statements to shareholders when a dividend is made from a source other than net investment income. While the two closed-end funds sent annual statements and provided other materials containing this information, the funds did not send written statements to shareholders with each distribution in 2002 and 2003. Gabelli Funds, LLC believes that all of the funds are now in compliance. Teton Advisors, Inc. believes that these matters would have no effect on the Funds or any material adverse effect on Teton Advisors, Inc. or its ability to manage the Funds. 33 -------------------------------------------------------------------------------- GAMCO WESTWOOD FUNDS AND YOUR PERSONAL PRIVACY -------------------------------------------------------------------------------- WHO ARE WE? The Gabelli/GAMCO Funds are investment companies registered with the Securities and Exchange Commission under the Investment Company Act of 1940. We are managed by Gabelli Funds, LLC or Teton Advisors, Inc., which are affiliated with GAMCO Investors, Inc. GAMCO Investors, Inc. is a publicly held company that has subsidiaries that provide investment advisory or brokerage services for a variety of clients. WHAT KIND OF NON-PUBLIC INFORMATION DO WE COLLECT ABOUT YOU IF YOU BECOME A SHAREHOLDER? If you apply to open an account directly with us, you will be giving us some non-public information about yourself. The non-public information we collect about you is: 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. If we hire someone else to provide services--like a transfer agent--we will also have information about the transactions that you conduct through them. WHAT INFORMATION DO WE DISCLOSE AND TO WHOM DO WE DISCLOSE IT? We do not disclose any non-public personal information about our customers or former customers to anyone other than our affiliates, our service providers who need to know such information, and as otherwise permitted by law. If you want to find out what the law permits, you can read the privacy rules adopted by the Securities and Exchange Commission. They are in volume 17 of the Code of Federal Regulations, Part 248. The Commission often posts information about its regulations on its website, www.sec.gov. WHAT DO WE DO TO PROTECT YOUR PERSONAL INFORMATION? We restrict access to non-public personal information about you to the people who need to know that information in order to provide services to you or the Fund and to ensure that we are complying with the laws governing the securities business. We maintain physical, electronic, and procedural safeguards to keep your personal information confidential. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- GABELLI FAMILY OF FUNDS -------------------------------------------------------------------------------- VALUE GABELLI ASSET FUND Seeks to invest primarily in a diversified portfolio of common stocks selling at significant discounts to their private market value. The fund's primary objective is growth of capital. (MULTICLASS) PORTFOLIO MANAGER: MARIO J. GABELLI, CFA GABELLI BLUE CHIP VALUE FUND Seeks long term growth of capital through investment primarily in the common stocks of established companies which are temporarily out of favor. The fund's objective is to identify a catalyst or sequence of events that will return the company to a higher value. (MULTICLASS) PORTFOLIO MANAGER: BARBARA MARCIN, CFA GAMCO WESTWOOD EQUITY FUND Seeks to invest primarily in the common stock of well seasoned companies that have recently reported positive earnings surprises and are trading below westwood's proprietary growth rate estimates. The fund's primary objective is capital appreciation. (MULTICLASS) PORTFOLIO MANAGER: SUSAN M. BYRNE FOCUSED VALUE GABELLI VALUE FUND Seeks to invest in securities of companies believed to be undervalued. The fund's primary objective is long-term capital appreciation. (MULTICLASS) PORTFOLIO MANAGER: MARIO J. GABELLI, CFA SMALL CAP VALUE GABELLI SMALL CAP FUND Seeks to invest primarily in common stock of smaller companies (market capitalizations at the time of investment of $2 billion or less) believed to have rapid revenue and earnings growth potential. The fund's primary objective is capital appreciation. (MULTICLASS) PORTFOLIO MANAGER: MARIO J. GABELLI, CFA GAMCO WESTWOOD SMALLCAP EQUITY FUND Seeks to invest primarily in smaller capitalization equity securities - market caps of $2.5 Billion or less. The fund's primary objective is long-term capital appreciation. (MULTICLASS) PORTFOLIO MANAGER: ELIZABETH M. LILLY, CFA GABELLI WOODLAND SMALL CAP VALUE FUND Seeks to invest primarily in the common stocks of smaller companies (market capitalizations generally less than $3.0 billion) believed to be undervalued with shareholder oriented management teams that are employing strategies to grow the company's value. The fund's primary objective is capital appreciation. (MULTICLASS) PORTFOLIO MANAGER: ELIZABETH M. LILLY, CFA GROWTH GAMCO GROWTH FUND Seeks to invest primarily in large cap stocks believed to have favorable, yet undervalued, prospects for earnings growth. The fund's primary objective is capital appreciation. (MULTICLASS) PORTFOLIO MANAGER: HOWARD F. WARD, CFA GAMCO INTERNATIONAL GROWTH FUND Seeks to invest in the equity securities of foreign issuers with long-term capital appreciation potential. The fund offers investors global diversification. (MULTICLASS) PORTFOLIO MANAGER: CAESAR BRYAN AGGRESSIVE GROWTH GAMCO GLOBAL GROWTH FUND Seeks capital appreciation through a disciplined investment program focusing on the globalization and interactivity of the world's marketplace. The fund invests in companies at the forefront of accelerated growth. The fund's primary objective is capital appreciation. (MULTICLASS) TEAM MANAGED MICRO-CAP GAMCO WESTWOOD MIGHTY MITES(SM) FUND Seeks to invest in micro-cap companies that have market capitalizations of $300 million or less. The fund's primary objective is long-term capital appreciation. (MULTICLASS) TEAM MANAGED EQUITY INCOME GABELLI EQUITY INCOME FUND Seeks to invest primarily in equity securities with above average market yields. The fund pays monthly dividends and seeks a high level of total return with an emphasis on income. (MULTICLASS) PORTFOLIO MANAGER: MARIO J. GABELLI, CFA GAMCO WESTWOOD BALANCED FUND Seeks to invest in a balanced and diversified portfolio of stocks and bonds. The fund's primary objective is both capital appreciation and current income. (MULTICLASS) CO-PORTFOLIO MANAGERS: SUSAN M. BYRNE MARK FREEMAN, CFA GAMCO WESTWOOD INCOME FUND Seeks to provide a high level of current income as well as long-term capital appreciation by investing in income producing equity and fixed income securities. (MULTICLASS) PORTFOLIO MANAGER: BARBARA MARCIN, CFA SPECIALTY EQUITY GAMCO GLOBAL CONVERTIBLE SECURITIES FUND Seeks to invest principally in bonds and preferred stocks which are convertible into common stock of foreign and domestic companies. The fund's primary objective is total return through a combination of current income and capital appreciation. (MULTICLASS) TEAM MANAGED GAMCO GLOBAL OPPORTUNITY FUND Seeks to invest in common stock of companies which have rapid growth in revenues and earnings and potential for above average capital appreciation or are undervalued. The fund's primary objective is capital appreciation. (MULTICLASS) TEAM MANAGED GABELLI SRI FUND Seeks to invest in common and preferred stocks of companies that meet the fund's guidelines for social responsibility at the time of investment, looking to avoid companies in tobacco, alcohol, and gaming, defense/weapons contractors, and manufacturers of abortifacients. The fund's primary objective is capital appreciation. (MULTICLASS) PORTFOLIO MANAGER: CHRISTOPHER C. DESMARAIS SECTOR GAMCO GLOBAL TELECOMMUNICATIONS FUND Seeks to invest in telecommunications companies throughout the world - targeting undervalued companies with strong earnings and cash flow dynamics. The fund's primary objective is capital appreciation. (MULTICLASS) TEAM MANAGED GAMCO GOLD FUND Seeks to invest in a global portfolio of equity securities of gold mining and related companies. The fund's objective is long-term capital appreciation. Investment in gold stocks is considered speculative and is affected by a variety of worldwide economic, financial, and political factors. (MULTICLASS) PORTFOLIO MANAGER: CAESAR BRYAN GABELLI UTILITIES FUND Seeks to provide a high level of total return through a combination of capital appreciation and current income. (MULTICLASS) TEAM MANAGED MERGER AND ARBITRAGE GABELLI ABC FUND Seeks to invest in securities with attractive opportunities for appreciation or investment income. The fund's primary objective is total return in various market conditions without excessive risk of capital loss. (NO-LOAD) PORTFOLIO MANAGER: MARIO J. GABELLI, CFA CONTRARIAN GAMCO MATHERS FUND Seeks long-term capital appreciation in various market conditions without excessive risk of capital loss. (NO-LOAD) PORTFOLIO MANAGER: HENRY VAN DER EB, CFA COMSTOCK CAPITAL VALUE FUND Seeks capital appreciation and current income. The fund may use either long or short positions to achieve its objective. (MULTICLASS) PORTFOLIO MANAGER: MARTIN WEINER, CFA COMSTOCK STRATEGY FUND The fund emphasizes investments in debt securities, which maximize total return in light of credit risk, interest rate risk, and the risk associated with the length of maturity of debt instruments. (MULTICLASS) PORTFOLIO MANAGER: MARTIN WEINER, CFA FIXED INCOME GAMCO WESTWOOD INTERMEDIATE BOND FUND Seeks to invest in a diversified portfolio of bonds with various maturities. The fund's primary objective is total return. (MULTICLASS) PORTFOLIO MANAGER: MARK FREEMAN, CFA CASH MANAGEMENT-MONEY MARKET GABELLI U.S. TREASURY MONEY MARKET FUND Seeks to invest exclusively in short-term U.S. Treasury securities. The fund's primary objective is to provide high current income consistent with the preservation of principal and liquidity. (NO-LOAD) PORTFOLIO MANAGER: JUDITH A. RANERI AN INVESTMENT IN THE ABOVE MONEY MARKET FUND IS NEITHER INSURED NOR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND. THE FUNDS MAY INVEST IN FOREIGN SECURITIES WHICH INVOLVE RISKS NOT ORDINARILY ASSOCIATED WITH INVESTMENTS IN DOMESTIC ISSUES, INCLUDING CURRENCY FLUCTUATION, ECONOMIC, AND POLITICAL RISKS. TO RECEIVE A PROSPECTUS, CALL 800-GABELLI (422-3554). INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE FUND BEFORE INVESTING. THE PROSPECTUS CONTAINS MORE INFORMATION ABOUT THIS AND OTHER MATTERS AND SHOULD BE READ CAREFULLY BEFORE INVESTING. GAMCO WESTWOOD FUNDS GAMCO WESTWOOD MIGHTY MITES(SM) FUND GAMCO WESTWOOD EQUITY FUND GAMCO WESTWOOD BALANCED FUND GAMCO WESTWOOD INTERMEDIATE BOND FUND GAMCO WESTWOOD SMALLCAP EQUITY FUND GAMCO WESTWOOD INCOME FUND 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 ANTHONY J. COLAVITA WERNER J. ROEDER, MD ATTORNEY-AT-LAW MEDICAL DIRECTOR ANTHONY J. COLAVITA, P.C. LAWRENCE HOSPITAL JAMES P. CONN SALVATORE J. ZIZZA FORMER CHIEF INVESTMENT OFFICER CHAIRMAN FINANCIAL SECURITY ASSURANCE ZIZZA & CO., LTD. HOLDINGS LTD. Officers BRUCE N. ALPERT AGNES MULLADY PRESIDENT AND SECRETARY TREASURER PETER D. GOLDSTEIN CHIEF COMPLIANCE OFFICER Investment Adviser ------------------ Teton Advisors, Inc. 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 GAMCO Westwood Funds. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. -------------------------------------------------------------------------------- GABWWQ108SR ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. INVESTMENTS. (a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. (b) Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant's board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) Not applicable. (a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. (a)(3) Not applicable. (b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (registrant) The GAMCO Westwood Funds -------------------------------------------------------------------- By (Signature and Title)* /s/ Bruce N. Alpert ------------------------------------------------------- Bruce N. Alpert, Principal Executive Officer Date 5/27/08 ---------------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Bruce N. Alpert ------------------------------------------------------- Bruce N. Alpert, Principal Executive Officer Date 5/27/08 ---------------------------------------------------------------------------- By (Signature and Title)* /s/ Agnes Mullady ------------------------------------------------------- Agnes Mullady, Principal Financial Officer and Treasurer Date 5/27/08 ---------------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.