GABELLI FUNDS SHAREHOLDER COMMENTARY

OPEN END FUNDS

December 31, 2020 INTRODUCTION

GAMCO Investors, Inc. (NYSE: GBL) is widely recognized for its research-driven, value-oriented investment process based on the INVESTOR RELATIONS TEAM principles first articulated in 1934 by the fathers of modern security analysis, Graham and Dodd, and further augmented by Mario Gabelli with his introduction of the concept of Private Market Value (PMV) Jason G. Swirbul with a CatalystTM to security analysis. (914) 921-5496 [email protected] Our value investment approach focuses on individual stock selection BA, University of Vermont MBA, University of by identifying undervalued stocks that have a reasonable probability Connecticut of realizing their estimated PMV (price a strategic acquirer would be willing to pay for the entire enterprise) over time. Catalysts are specific events or circumstances with varying time horizons that can Justin Cramer trigger a narrowing of the difference between the market price of a 914-921-5387 stock and its PMV. [email protected] BA, Boston College While our firm is best known for its value style, we have developed a diversified product mix to serve the objectives of a broad spectrum of investors. GAMCO Asset Management Inc. was formed in 1977 to provide discretionary investment management services for Jennifer L. Esposito separately managed accounts. Gabelli Funds, LLC began operation in 914-921-5062 1986 with the initial offering of the Gabelli Asset Fund. Today, Gabelli [email protected] Funds offers a full range of investment choices, from conservative BA, Fordham University fixed income funds to aggressive common stock funds.

This Gabelli Funds Commentary provides comprehensive information about each of our open-end mutual funds as of Ana Kostovic December 31, 2020. Individual fact sheets are also available (914) 921-7727 upon request. Our team of investor representatives is dedicated [email protected] BA, Syracuse University to educating shareholders, prospective investors and financial professionals about our investment portfolios and can be reached by calling 800-GABELLI (800-422-3554) or by e-mailing us at info@ gabelli.com. Ariel Lyddane To contact our Wholesaling Team: [email protected] (800) 422-2274 | [email protected] (914) 921-7713 BA, Williams College To contact our Investor Relations Team: (800) 422- 3554 | [email protected]

2 TABLE OF CONTENTS

Barron’s Roundtable 2021...... 4-7 Value - Insight from your Portfolio Managers...... 8-10 Gabelli Funds (Class I Shares) and Benchmark Performance...... 11 Growth - Insight from your Portfolio Managers ...... 12-13 Top Ten Reasons to Own Stocks in 2021...... 14-15 Value Funds The Gabelli Asset Fund...... 16-17 The Gabelli Small Cap Growth Fund...... 18-19 The Gabelli Equity Income Fund ...... 20-21 The Gabelli Value 25 Fund Inc...... 22-23 The Gabelli Global Rising Income & Dividend Fund24-25 ...... The Gabelli Focused Growth and Income Fund 26-27...... The Gabelli Dividend Growth Fund ...... 28-29 The Gabelli Global Mini Mites Fund ...... 30-31 Growth Funds The Gabelli Growth Fund...... 32-33 The Gabelli Global ...... Growth Fund 34-35 The Gabelli International Growth Fund, Inc...... 36-37 The Gabelli International Small Cap Fund...... 38-39 Specialty Funds The Gabelli U.S. Treasury Money Market Fund...... 40-41 The Gabelli Utilities Fund...... 42-43 The Gabelli ABC Fund ...... 44-45 The Gabelli Gold Fund, Inc...... 46-47 The Gabelli ESG Fund ...... 48-49 The Gabelli Enterprise Mergers & Acquisitions Fund 50-51...... The Gabelli Global Content & Connectivity Fund 52-53...... The Gabelli Global Financial Services Fund...... 54-55 Gabelli Media Mogul Fund...... 56-57 Gabelli Pet Parents’...... Fund 58-59 Performance – Value Funds...... 60-61 Performance – Growth Funds...... 62 Performance – Specialty Funds...... 63 Your Portfolio Management Team...... 64-65 Directors / Trustees...... 66 Officers / Investment Adviser / Notes & Important Information...... 67

3 BARRON’S ROUNDTABLE 2021

Mario J. Gabelli, our Chief Investment Officer, has appeared in the prestigiousBarron’s Roundtable discussion annually since 1980. Many of our readers enjoyed the inclusion of selected and edited comments from Barron’s Roundtable in previous reports to shareholders. As is our custom, we are including selected comments of Mario Gabelli from Barron’s, published on January 22, 2021.

Mario, what is your view?

Mario Gabelli: Monetary and fiscal stimulation went into hyper mode last year, and the economy began to recover after the second quarter. Now it is deteriorating again due to COVID-related lockdowns around the world. We solved other health crises, such as smallpox, SARS, and MERS, and we’ll solve this one, too. But there is also a question about how we’ll finance the federal deficit, which is approaching $5 trillion. I see some interesting challenges ahead. When I look to the first quarter of 2022, the domestic economy looks pretty good. The Biden team will want a good economy for the midterm elections. An infrastructure bill will be announced earlier, but it will kick in around that time. Europe’s economy looks uninspiring.

Consumer wealth In the U.S. is at an all-time high. We have a problem with outstanding student loans, but the government will deal with that. The consumer will spend nicely. That’s good for the auto industry. The industrial sector looks robust. We’ll see what happens with corporate taxes. With wages rising and commodity prices spiking, companies that can pass higher costs on to customers will benefit. I expect U.S. GDP to increase 5% or 6% in real terms, reflecting a vaccine that works, continued monetary policy, and added fiscal stimulus, including a sizeable infrastructure bill that kicks in in the fourth quarter to buttress the economy in first half of 2022 in time for the mid-term election.

On the corporate side, about 20% of companies in the S&P 500 Index should benefit from a stronger euro versus the dollar. I see gross profit margins narrowing overall, reflecting higher costs for labor and PPE. SG&A [selling, general, and administrative expenses] will rise less than revenue. Pretax profits will go up nicely. Cash and book taxes will increase. And price/earnings multiples will contract, reflecting a higher 10-year U.S. Treasury yield. In short, things look OK. Janet Yellen’s Treasury Department and Jay Powell’s Federal Reserve won’t pull back on stimulus. The economy looks good for the next four to six quarters, though taxes on corporations and individuals are likely to be headwinds.

Mario, are you ready to share your ideas?

Gabelli: Yes. I’m going to talk about clusters of stocks. One theme is “Love Our Planet,” or companies focused on climate change and sustainability. I’ll echo Bill’s recommendation [in the first Roundtable installment] of NextEra Energy Partners [NEP]. James Robo [the chairman and CEO] has done a fabulous job of creating that investment vehicle, or “yieldco,” which develops, owns, and manages onshore wind and solar projects. The stock trades for $80; there are 175 million shares, including 60% owned by NextEra Energy [NEE]. The entire environmental ecosystem is going to get enormous attention from investors. NEP is expected to grow its $2.38 per share annual distribution to $4.15 by year-end 2024.

Avangrid [AGR], an energy and utility company, is another love-the-planet play. It trades for $47, and has 309 million shares; Iberdrola [IBE.Spain], the Spanish utility and another of my favorite stocks, owns 260 million shares. Avangrid announced in October that it plans to acquire PNM Resources [PNM], which we also own. Iberdrola understands the renewables world and is well-positioned in the U.S. I have suggested that the company spin out a portion of Avangrid’s renewables business as a yieldco, similar to NextEra Energy’s spinout of NextEra Energy Partners, and thereby create a higher valuation. The PNM deal will add significantly to Avangrid’s revenue and EBITDA, and you’ll get a decent dividend. Avangrid’s current return is 3.85%.

4 I’M GOING TO TALK ABOUT CLUSTERS OF STOCKS. ONE THEME IS “LOVE OUR PLANET,” OR COMPANIES FOCUSED ON CLIMATE CHANGE AND SUSTAINABILITY.

Our revenue estimate for 2022, including PNM, is $8.9 billion, and our earnings-per-share estimate is $2.60, after allowing for the sale of shares to finance the PNM acquisition.

What else do you like?

Gabelli: GCP Applied Technologies [GCP] main product lines are cement and concrete additives. They also have a smaller waterproofing-membrane business, which makes products used in residential roofing. The company should benefit from infrastructure spending on roads, bridges, and inland waterways. The stock sells for $25; there are 73 million shares, and the market capitalization is $1.8 billion. The company has about $120 million in net cash. GCP will earn $1 a share on $975 million in revenue in 2022, with chemicals about $555 million and building products approximately $420 million. Activist Starboard Value has added directors and controls the board.

Infrastructure spending should bolster demand for forklift trucks. Hyster-Yale Materials Handling, based in Cleveland, sells forklifts and aftermarket parts. The stock sells for $66, and there are around 16.8 million shares, of which 13 million are common shares, and 3.9 million are Class B shares with 10 votes per share. The CEO and his family own 3.3 million, or 85% of the Class B voting shares.

Hyster-Yale should earn $6.10 a share in two years, up from $2.10 this year. Aside from earnings increases, I am interested in Hyster-Yale, as it has spent $200 million over the past five or six years to develop its own hydrogen fuel-cell technology. At the last Hyster-Yale investor meeting, I asked, “Why not monetize your hydrogen cell operation?” Since then, Plug Power [PLUG] shares rose from $4 to more than $60 in the past year because investors are viewing hydrogen as an alternative energy source. Plug sold $1.5 billion of shares to South Korea-based SK Group, and that stock now has a market cap of $25 billion. Hyster-Yale is having its next investor day in May. The stock could double in the next two years, assuming that Nuvera, the hydrogen business, becomes profitable.

What else appeals to you?

Gabelli: Deutsche Telekom [DTE.Germany] is trading for EUR15. If you back out the company’s stake in T-Mobile US, and associated debt, you’re getting the German and European telecom companies for EUR3. The operating company, ex-TMUS, could earn 65 euro cents in 2021, going to 95 euro cents in 2022. In addition, Deutsche Telekom has the option of buying an additional 101.5 million shares — an additional 8.2% stake — in T-Mobile US from SoftBank Group [9984.Japan]. It is an interesting way to play the post pandemic recovery story in Germany and continued momentum of T-Mobile US, and you might get the benefit of an appreciating euro. The stock pays 60 euro cents, for a 3.9% current return.

Switching gears, about 40 million used cars are sold in the U.S. every year. Genuine Parts [GPC] sells automotive replacement parts under the NAPA brand for the more than one-quarter billion vehicles on the road in the U.S. and over one billion worldwide. The stock is trading around $100, the market cap is $15 billion, and the company has $2 billion of debt. In the U.S., about 80%

5 of auto-parts sales are for do-it-yourself repairs, and 20% are do-it-for-me. Business was sluggish in 2020 because of the absence of do-it-for-me work. Also, the company’s international operations have suffered from COVID-related lockdowns. When lockdowns end in Europe, and there is renewed growth in the company’s Australia/New Zealand operations, demand could surge for auto parts and repairs.

Genuine Parts should have $18 billion in revenue this year, with $6 billion coming from Motion Industries, its industrial parts distribution business. In the next four years, there will be a surge in cars in the four- to eight-year-old bracket and a cyclical recovery at Motion. The company could earn close to $7 a share by 2023, with earnings growing about 9% a year thereafter. Unfortunately, they pay a big dividend [$3.16 a share], which I don’t like, because taxes on dividends are likely to rise.

How will growing sales of electric vehicles affect Genuine Parts?

Gabelli: Battery and hybrid electric vehicles should account for about 170 million cars in the world by 2030. At that time, the automotive population should be around 1.4 billion vehicles. They will consume fewer engine parts per car, but the existing base will remain quite fertile for the sale of replacement parts.

Finally, I want to put down a lot of bets on the gaming business. I can play it by owning sports teams, media companies, and companies that supply the iGaming infrastructure. Sports teams will get fees from online gambling, which is growing. Madison Square Garden Sports [MSGS] sells for about $180 a share. There are 24 million shares; 20 million are nonvoting. The Dolan family owns the four million shares of voting stock. MSGS owns the New York Knicks and the New York Rangers. At some point, Jimmy [Dolan, MSGS’ executive chairman] has to figure out what he wants to do with MSGS. We believe there would be (and are) buyers for the New York Knicks.

I also like Liberty Braves Group [BATRA]. The stock is $25, and there are 60 million shares outstanding. Liberty Braves, better known as the Atlanta Braves, is controlled by John Malone’s Liberty Media through another Liberty entity, Formula One Group [FWONK]. At some point, Liberty Braves, which is a tracking stock, will be sold. We estimate that it will go for $45 a share.

Next, Fox [FOX] is $30 a share. [Fox and Barron’s parent News Corp (NWS) share common ownership.] FOX Bet has a valuable partnership with Flutter Entertainment [FLTR.UK], which controls FanDuel, a gaming company. Fox also has a sports network and owns Fox News. Advertising spending on TV will pick up with a consumer-led economic recovery, and Fox will benefit. Contracts with the NFL and other sports leagues will be renewed, but at a higher cost. Fox has about 600 million shares, including 257 million voting shares. I recommend buying the voting stock, as it sells for about the same price as the nonvoting shares. Buy the shares based on the benefits of online sports betting, coupled with a good sports and local business. I estimate revenue for the fiscal year ending on June 30 of $12.4 billion, going to $13 billion in fiscal 2022, and earnings per share of $2.45, climbing to $2.65 in fiscal 2022.

Sinclair Broadcast Group [SBGI] is also attractive. Sinclair is selling the naming rights to its regional sports networks, or RSNs, to Bally’s [BALY], the gaming company. Sinclair has 75 million shares, trading at $32, for a market cap of $2.5 billion. While debt looks significant at $12.5 billion, $8 billion is nonrecourse and tied to the RSN business. Meanwhile, the RSN business will bounce back, with revenue growth from the recovery in the sports-related ecosystem, and they are going to enjoy significant cash from broadcasting. Sinclair has warrants to buy a significant piece of Bally’s at nominal prices, and the online sports-betting business at Bally’s is doing well.

6 I estimate revenue for calendar 2020 from MARIO GABELLI’S PICKS broadcasting at around $3.3 billion, dropping to Price $3 billion this year, but rising to $3.5 billion in Company Ticker 1/8/2021 2022, with EBITDA of $1 billion rising to $1.2 billion NextEra Energy Partners NEP $79.76 in 2022. Avangrid AGR 46.97 Barry Diller’s IAC/InterActiveCorp [IAC] is the GCP Applied Technologies GCP 25.47 largest holder of MGM Resorts International [MGM], Hyster-Yale Materials Handling HY 65.98 which is pursuing a bid for Entain [ENT.UK], the Deutsche Telekom DTE.Germany €15.20 owner of Ladbrokes. [On Jan. 19, MGM withdrew Genuine Parts GPC 103.34 its preliminary offer to merge with Entain.] We like Madison Square Garden Sports MSGS 182.54 GAN [GAN], a B2B provider of iGaming and sports Liberty Braves Group BATRA 26.25 betting infrastructure and services to sports books like FanDuel and WynnBET. The company came Fox FOX 29.62 public last May and is trading for $20. There are Sinclair Broadcast Group SBGI 32.49 38 million shares. GAN earns a percentage of the GAN GAN 21.71 gaming revenue that its sports book customers Source: Bloomberg generate, so its revenue grows with theirs. We expect GAN to continue signing new client engagements as more states legalize sports betting and iGaming. Eventually, we believe GAN will be acquired at a significant premium to its current price.

Thank you, Mario.

Mario J. Gabelli is the Chairman and Chief Investment Officer — Value Portfolios of GAMCO Investors, Inc. and Portfolio Manager of various investment products at the firm. The securities mentioned in the article are not representative of any portfolio, and the views expressed are subject to change at any time. As of December 31, 2020, affiliates of GAMCO Investors, Inc. beneficially owned 6.36% of GCP Applied Tech- nologies, 3.09% of Hyster-Yale Materials Handling, 1.31% of Genuine Parts, 4.91% of Madison Square Sports, 21.52% of Liberty Braves Group A, 5.41% of Liberty Braves Group C, 3.77% of Sinclair Broadcast Group and less than 1% of NextEra Energy Partners, Avangrid, Deutsche Telekom, Fox and GAN.

The views expressed in this article reflect those of the Chief Investment Officer only through the date of the interview. Minor edits were made. The Chief Investment Officer’s views are subject to change at any time based on market and other conditions. Favorable earnings or EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) growth prospects do not necessarily translate into higher stock prices, but they do express a positive trend which we believe will develop over time. The information contained in this article is not an offer to sell or a solicitation to buy any security. No security or other product is offered or will be sold in any jurisdiction in which such offer or solicitation, purchase or sale would be unlawful under the securities, or other laws of the jurisdiction.

Stocks are subject to market, economic and business risks that cause their prices to fluctuate. Consequently, you can lose money by investing in the Fund.

Investors should consider the investment objectives, risks, sales charges and expense of the fund carefully before investing. The prospectus contains more information on this and other matters.

For more information, visit our website: www.gabelli.com or call: 800-GABELLI | 800-422-3554 | 914-921-5100 | Fax: 914-921-5118 | [email protected] Distributed by G.distributors, LLC., a registered broker-dealer and member of FINRA One Corporate Center, Rye, New York 10580

7 VALUE – Insight from your Portfolio Managers

ROARING TWENTIES REVISITED1

How does one even begin to summarize 2020? In economic terms, it was a year that began with a 3.6% unemployment rate, the lowest in fifty years, and is ending with nearly $1 trillion in lost economic output and over ten million jobless Americans. In human terms, the cost of the COVID-19 pandemic has been immeasurable, claiming hundreds of thousands of lives, doubling the number of families experiencing food insecurity and straining relationships with family and friends. But, appropriate for this time of year, there is hope. While several dark months remain, the proverbial light at the end of the tunnel draws closer. Economic growth is recovering, the stock market has rebounded and vaccinations have commenced. To paraphrase Winston Churchill, we may have reached the beginning of the end.2

The new year brings with it a renewed economic cycle and novel ways of working, shopping, and playing. Many changes will be permanent, but long-established patterns are difficult to alter. Indeed, we would argue the pandemic has accentuated the need for human companionship and discovery and, combined with pent-up economic demand for a variety of goods and services, portend a revived Roaring Twenties much like the one following the 1918 flu pandemic. A new domestic political order, a more assertive China, and ceaseless technological innovation promise an eventful decade. (Y)our analysts and portfolio managers remain intensely focused on discerning these developments (sometimes even remotely!) while applying our PMV with a CatalystTM approach, where appropriate in our value strategies, to generate attractive risk-adjusted long-term returns.

THE POLITICAL ECONOMY OF COVID-19

Rather than recite the well-known events of the year, we revisit our observations regarding the recent acceleration of trends already in place – what we have termed the D’s:

Digitization – Lockdowns have forced sometimes-reluctant consumers, businesses, and governments to change the way we work, learn, interact, shop, and pursue recreation. The adoption curve for many technologies has been pulled forward and new markets have been expanded and created (e.g., connectivity, e-commerce, telemedicine, payment systems) to support “distanced” activities. The durability of these adaptations may be up for debate but some new habits will die hard, which is already impacting everything from worker migration to commercial real estate to what types of entertainment gets produced.

Disunity – A popular view holds that the fraying of America’s social fabric, abetted by globalization, rising income inequality, and growing cultural differences were the underpinnings of recent political dynamics. COVID-19 appears to have deepened America’s socio-economic divide, with events around the recent election both indicative of and exacerbating our national discord. The defeat of COVID-19, economic healing, and a more conciliatory tone from Washington may reduce the volume on these debates, but we would not expect harmony any time soon. Perhaps most importantly, capitalism faces an existential threat, with a large portion of the population not “bought in” to the present system. The implications for our country’s human capital and educational priorities, future policies, and even the dollar’s reserve status are stark and worth consideration.

1 Keen readers will recall we entitled our Q4 letter “Starting the Twenties With a Roar,” a play on the nickname for the 1920s, a vibrant era marked by swift social and technological change. The 2020s may have started with more of a sigh, groan, or scream than a roar, but we think the analogy now has added pertinence for the remainder of this decade.

2 Churchill made his full observation “Now this is not the end. It is not even the beginning of the end, but it is, perhaps, the end of the beginning” after Rommel’s ejection from Egypt in November 1942, to suggest the British were somewhere in the middle of the war. We feel confident we are further along in our own fight against COVID-19. Note that we believe World War II references keep our current sacrifices in perspective.

8 De-globalization – Travel bans and vaccine nationalism have joined trade barriers as the latest incarnations of beggar- thy-neighbor policies. The new administration may take a different tack toward international relations, but the U.S. rivalry with China is probably only beginning. Much as the U.S. may be splitting into “two Americas” the world may cleave into U.S./Western and Chinese spheres of influence, carrying with it significant consequences for trade, supply chain designs, inflation, and security costs.

To these we add two other trends that have gathered energy in the recent storm:

Debt & the Dollar – The fiscal response to the pandemic, in the form of the $2.2 trillion CARES Act, arrested the severity of the recession but, when combined with a reduction in all levels of tax revenue, deepened our deficit. At 130% of 2019 GDP, the $27.4 trillion national debt ($214,000 per household), exceeds even the 120% level recorded during World War II. To get this figure under control will require some unlikely combination of fiscal modesty, increased taxes, and inflation (itself covert taxation – also known as seigniorage – that transfers wealth from savers to borrowers). The velocity of the printing press (minting money?) and the level of aggregate demand are partial determinants of inflation; both will be in high gear next year, providing the greatest chance for unexpected price instability in perhaps decades. We also continue to watch the dollar, which may weaken with varying impacts on corporate profits, exports, and consumption from abroad.

De-carbonization – Pushed down the headlines in 2020 were the record 4.2 million acres burned in the California wildfires and a record thirty named Atlantic storms, ending with Hurricane Iota. We will leave it to scientists to draw a definitive link between these and other events and man-made climate change; nonetheless, it is perception that matters, and the emerging generation is singularly focused on reducing humanity’s impact on Planet Earth through changes in behavior and investment preferences. We have been attuned to this appetite for some time, launching our first SRI (Socially Responsive Investing) products in 1987 and following with ESG (Environmental, Social, Governance) products. We recently punctuated our commitment to environmental stewardship with the announcement of an actively managed ETF called LOPP (Love Our Planet & People) – an excellent gift for those interested in both the planet, people, and profits.

A PATH FORWARD

Early in the pandemic, the twin uncertainties of the looming U.S. elections and the scope of COVID-19 infections clouded our outlook for the economy and earnings. Even with a 50-50 split in the Senate, three Republicans from blue states and three Democrats from red states likely means a divided government with extreme impulses from either party moderated. Nevertheless, an increase in corporate and individual taxes seems probable over the next two years. We would also expect to see a third stimulus package, likely with an infrastructure focus. Former Federal Reserve Chair Janet Yellen’s move to Treasury Secretary paves the way for coordinated and accommodative fiscal and monetary policy.

Regarding COVID-19, we posited that some form of normalcy would return when we reach a “point of indifference,” i.e., when a combination of social distancing, reliable treatments, available vaccines, acquired immunity, and quarantine fatigue encourage individuals to attend in-person events, travel, etc. Some may have reached that stage, but challenges remain: How much vaccine will be available and to whom (including children)? Will the shot(s) prevent infection or just disease and for how long? Are we missing any long-term side effects? Will the virus mutate and become endemic? No one can yet answer these questions, but the efficacy of the initial vaccines and the speed of their delivery make us think commerce will increase by mid-2021.

Unfortunately, even in the face of rising asset prices and an overall increased savings rate, an extended economic shutdown has strained the balance sheets and impaired the skills of many employees and small business owners. Restarting sustainable economic growth will be a lengthy process as uncertainty about the trajectory of the virus is a barrier to the necessary budgeting and planning. In the meantime, the economy remains vulnerable to a host of shocks from China trade tensions, instability in hot spots such as the Middle East, and an unmanaged Brexit. On the other hand, we expect a forceful rekindling of animal spirits. Barkeeps may have had a miserable 2020, but they will be in heavy demand by the summer.3

3 We do not expect the Volstead Act enforcing Prohibition will make a return in these Roaring Twenties.

9 MR. MARKET

It took COVID-19 to end the United States’ longest bull market at 131 months, only to give way to its shortest bear market at just over one month. After declining 34% peak-to-trough February to March, the S&P 500 Index ended up 18% for the year, 65% off its March low. Ever the discounting mechanism, market participants are clearly looking forward to easy earnings comparisons in 2021 and beyond. However, the market is also being fueled by two powerful impulses: TINA (There Is No Alternative) and FOMO (Fear of Missing Out) as low interest rates continue to force savers out of cash and bonds into equities, which are gaining momentum.

The current S&P 500 2021 price/earnings multiple of 22x is high compared with history, but more defensible given the level of rates and the nascency of the economic cycle. The recent IPO and SPAC frenzies, extreme hype around certain electric vehicles and everything SAAS companies, and increasing involvement of retail/Robinhood investors are emblematic of a bubble, but not one that encompasses a majority of the market.

Further complexities exist below the surface of the market. Growth stocks outperformed Value stocks for much of this and the last ten years, with the five largest companies in the S&P 500 Index (Apple, Amazon, Microsoft, Alphabet/Google and Facebook – the “Big Five”) at times comprising almost one quarter of its weighting and more than 100% of its positive return. While the low interest rates and technological disruption that have underpinned Growth’s dominance remain, other dynamics are changing. Factors including extreme valuation disparities, an early cyclical turn, greater regulatory scrutiny of the Big Five, and stirring inflation expectations with a steepening yield curve have led Value (and smaller capitalization stocks) to perform better than Growth since September, and could set the stage for a more lasting Value comeback.

OUR APPROACH

As synchronously as stocks declined at the outset of COVID-19, the rebound has not been as uniform. Significant valuation disparities remain in the market and economic, political, and social changes are as violent as ever. This should lead to greater opportunities for active managers over the coming years. We think greater returns are available looking beyond just the Big Five or index constituents such as Tesla that passive managers will be forced to buy. Finally, we think M&A activity, deferred in some cases but made more urgent in others as buyers and sellers contend with altered competitive landscapes and divergent balance sheet positions, should boom in 2021. Owning consolidation candidates has traditionally allowed us to capture excess returns where we harvest positions regularly at irregular intervals.

While we are operating effectively and efficiently on a partially remote basis, we look forward to engaging with companies in-person when appropriate. We think our corporate relationships, built over decades of industry specialization, have been an advantage in remaining in touch with managements through this crisis. Like many, we have had to learn new ways of conducting research, but our process has always been adaptable to new technologies and trends. What has not changed is our disciplined application of cash flow-based valuation methodologies. That should serve us well as the market gyrates but ultimately rotates toward Value stocks.

CONCLUSION

Having shared our views on how the world might evolve, we turn to how we think it should unfold. We hope a collective effort to eliminate a pathogen that has caused so much economic and emotional pain unites rather than divides us going forward. We want the political class to make responsible decisions about the debt burden we leave our children while preserving for them a healthy environment with equal opportunities for advancement. Finally, we would like to see faith restored in a free-market system that, albeit imperfect, has lifted so many out of poverty and made our nation great.

Although portfolios ultimately ended higher than where they started the year, we were glad to turn the page on 2020 and are reminded of another musing attributed to Churchill: “When you are going through hell, keep going.” We continue to apply our investment process relentlessly to preserve and grow wealth for you.

– Mario Gabelli, Kevin Dreyer, Christopher Marangi

10 GABELLI FUNDS (CLASS I SHARES) AND BENCHMARK PERFORMANCE Through December 31, 2020 (a) (b) (c) (unaudited)

Annualized Average Annualized Returns Annual Fund Name Annualized Benchmark Inception Expense Net Assets Primary Benchmark Return Since Return Since Date 1 Year 3 Year 5 Year 10 Year Ratio (d) Inception Inception VALUE Gabelli Asset Fund 11.74% 10.86% 3/3/86 11.50% 8.20% 11.29% 10.06% 1.11% $2.1 billion S&P 500 Index Gabelli Small Cap Growth Fund 12.17 N/A (e) 10/22/91 13.98 5.64 10.57 9.96% 1.16% $1.8 billion S&P SmallCap 600 Index Gabelli Equity Income Fund 9.68 10.07 1/2/92 7.43 5.51 8.41 8.77 1.20% $567 million S&P 500 Index Gabelli Value 25 Fund 9.83 10.21 9/29/89 6.28 5.06 7.99 7.87 1.16%/1.00% $309 million S&P 500 Index Gabelli Global Rising and Income Dividend Fund 4.97 7.37 2/3/94 11.67 3.62 7.44 5.15 1.46%/0.91% $55 million MSCI World Index Gabelli Focused Growth and Income Fund 6.98 11.40 12/31/02 8.98 1.24 4.40 5.71 1.46% $35 million S&P MidCap 400 Index Gabelli Dividend Growth Fund 6.23 6.90 8/26/99 6.17 6.82 9.00 8.62 1.93%/1.00% $21 million S&P 500 Index Gabelli Global Mini Mites Fund S&P Developed SmallCap 5.06 8.66 10/1/18 15.87 – – – 10.56%/0.91% $4 million Index GROWTH Gabelli Growth Fund 11.50% 10.71% 4/10/87 39.48% 24.19% 20.71% 16.15% 1.13% $994 million Russell 1000 Growth Index Gabelli Global Growth Fund 10.40 7.37 2/7/94 35.39 20.09 18.05 13.31 1.38%/0.90% $193 million MSCI AC World Index Gabelli International Growth Fund 7.28 5.68 6/30/95 18.81 9.90 11.36 6.68 2.19%/1.02% $26 million MSCI EAFE Index Gabelli International Small Cap Fund 4.80 – 5/11/98 11.68 3.18 6.96 4.78 3.17%/0.91% $11 million MSCI EAFE Small Cap Index SPECIALTY Gabelli Utilities Fund 7.38% 7.06 8/31/99 (3.11)% 4.20% 7.70% 7.09% 1.12% $1.9 billion S&P 500 Utilities Index Gabelli ABC Fund (f) ICE Bank of America Merrill 5.32 2.49 5/14/93 2.90 2.62 2.63 2.85 0.68% $704 million Lynch 3 Month U.S. Treasury Bill Index Gabelli Gold Fund 5.78 2.60 7/11/94 26.67 15.99 20.66 (2.07) 1.30% $455 million NYSE Arca Gold Miners Index Gabelli ESG Fund 6.71 9.07 6/1/07 13.37 6.48 8.70 7.04 1.76%/0.90% $37 million S&P 500 Index Gabelli Enterprise M&A (f) 4.79 7.86 2/28/01 5.29 3.31 4.82 4.97 1.25% $85 million S&P 500 Index Gabelli Global Content & Connectivity 7.39 7.51 11/1/93 16.42 6.34 7.17 5.91 1.51%/0.92% $82 million MSCI AC World Index Gabelli Global Financial Services Fund (0.44) 2.97 10/1/18 (1.26) – – – 2.26%/1.00% $19 million MSCI World Financials Index Gabelli Media Mogul Fund 3.88 15.10 12/1/16 0.25 2.68 – – 4.86%/0.90% $5 million S&P 500 Index Gabelli Pet Parents Fund 18.74 15.86 6/19/18 53.45 – – – 6.95%/0.90% $4 million S&P 500 Index

(a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. The Funds impose a 2.00% redemption fee on shares sold or exchanged within seven days after the date of purchase. Investors should carefully consider the investment objectives, risks, charges, and expenses of a Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. (b) The performance of the Class AAA Shares is used to calculate performance for the periods prior to the issuance of Class I Shares. The performance for the Class I Shares would have been higher due to the lower expenses associated with this class of shares. (c) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI. (d) Net of Adviser reimbursement, where applicable. (e) S&P SmallCap 600 Index inception date is December 31, 1994. (f) Class Y Shares for Enterprise and Class AAA Shares for ABC.

11 GROWTH – Insight from your Portfolio Managers

For many, 2020 was a year of hardship. Nevertheless, the year could have been much more dire if not for the heroic efforts of health care and frontline workers. Our sincerest gratitude goes out to all who played a role caring for the sick and providing essential goods and services in the face of great uncertainty.

Asset class returns for calendar 2020 exemplify why aggregates can be misleading. Returns for the year show distinct outperformance of large cap over small and growth over value. The top performing factors for the year were sales growth, momentum, and high price-to-earnings. However, returns off the March market low tell a different story. Small caps and cyclicals led the recovery, with the news of over 90% efficacy rates for Pfizer and Moderna vaccines serving as a clear inflection point. Though it will take time to deliver widespread inoculation, the discounting mechanism of the market now has a more firm timetable for economic recovery.

Growth stocks have benefited from massive multiple expansion over the last few years. While there are certainly pockets of speculation (electric vehicles, SPACs), most valuations can be justified given the historically low interest rate environment. With the potential for additional fiscal stimulus in 2021, it will be important to watch inflation trends, given their impact on Treasury yields and, ultimately, impact on long duration (growth) equities.

As crises have a tendency to do, trends that were in place prior to the pandemic have accelerated. One of the most profound business impacts of the pandemic has been the necessity for all industries to digitally transform. Participating in the digital economy is no longer a choice, but a prerequisite. The implications of this digital acceleration have been well documented by us and others. We remain invested in many of the enablers of this digital transformation.

A less benign trend that accelerated in 2020 is income and wealth inequality. While inequality, as measured by the Gini coefficient, has been increasing for decades, the costs of the pandemic have been borne disproportionately by low income populations and minorities, which are more vulnerable to health risks and job loss. The increased automation of rote work, which only became more important during COVID-19, is another headwind to low wage employment. Meanwhile, quantitative easing has exacerbated the wealth gap by disproportionately benefiting those holding financial assets.

This is not at all to discredit our capitalist society; rather, to frame these events within historical context and to illuminate a path forward. Asset inflation and inequality is a pattern that has presented itself in technological revolutions throughout history. The pattern is best described by economist Carlota Perez, a thought leader in technological revolutions. Perez characterizes technological revolutions in two distinct halves: the installation period, in which the introduction of innovative technologies begins the process of “creative destruction,” followed by the deployment period, a “golden age” in which the new technologies are adopted throughout the economy, driving massive productivity growth and widespread prosperity. Typically, the turning point from installation to deployment is when speculation drives financial capital to divorce itself from the real economy, ultimately resulting in one or more market corrections.

12 THE DEMOCRATIZATION OF TECHNOLOGY GIVES US OPTIMISM THAT WE ARE ON THE PRECIPICE OF A “GOLDEN AGE” THAT COULD USHER IN WIDESPREAD PROSPERITY

This pattern can be found dating back to the Industrial Revolution in 1771 and in the three technological revolutions since (steam, steel, and automobile). Today, we find ourselves in the midst of a fifth technological revolution, one that began in 1971 with the Intel microprocessor, and culminating in today’s leading edge technologies, including 5G, cloud, internet-of-things, artificial intelligence, and machine learning. To date, the value of these new technologies has mostly accrued to a handful of players within the high tech industry. Old economy firms have been slower to adapt, partly due to the intangible nature of today’s digital economy, which has introduced new business models and competitive dynamic complexity.

However, signs of digital transformation are beginning to emerge across all verticals. Platforms like Snowflake and C3.ai are democratizing data analytics and artificial intelligence, which have historically been reserved for only the most technically sophisticated. In a similar vein, Shopify and BigCommerce are democratizing e-commerce. Stripe and Adyen are democratizing payment acceptance. Fiverr and Upwork are democratizing freelance services. PayPal and Square are democratizing financial services. Massive open online courses (MOOCs) are democratizing higher education. And the list goes on. In contrast to aggregators, these are platforms in the Bill Gates definition of the word; the economic value these companies create for their users exceeds the value of the platforms themselves. The pandemic has served as a force function for these tools to more deeply infiltrate the old economy. Many companies leaned on technology during the pandemic and, counterintuitively, increased productivity and improved margins during this difficult period. Not all of these efficiency gains will be sustainable, but we expect a great deal will be. Expect more Zoom calls and less travel. More remote workforces and smaller commercial real estate footprints. More pay-as-you-go elastic cloud software and less on-premise servers.

The democratization of technology gives us optimism that we are on the precipice of a “golden age” that could usher in widespread prosperity. Erik Brynjolfsson and Andrew McAfee, academic researchers at Stanford and MIT, respectively, argue in The Second Machine Age that “even if Moore’s Law ground to a halt today, we could expect decades of complementary innovations to unfold and continue to boost productivity.” To capitalize on the potential productivity boom, socioeconomic policies will need to catch up. Specifically, education. We need to upskill our labor force to make workers more relevant for the digital economy. As every company becomes a technology company, there is no shortage of demand for skilled labor in these areas. While imperfect, the U.S. economy will continue to lead the world in innovation and opportunity. Optimism is warranted.

– Howard Ward

13 TOP 10 REASONS TO OWN STOCKS IN 2021

Howard Ward, Chief Investment Officer of Growth Equities, offers his thoughts on owning stocks in 2021.

I. The economy is showing surprising strength. We believe real GDP could grow 7% or better in 2021, establishing a new high. Similarly, consensus earnings estimates for the S&P 500 Index are being revised higher and we now believe S&P earnings per share could rise 25% versus 2020, also establishing a new record high.

II. Vaccines are now being rapidly rolled out. The reopening of the economy will continue and is on pace for something close to normal by the fall, barring unforeseen developments. Vaccine progress should support rising consumer and business confidence and drive the unemployment rate down to approximately 5% this year. Unemployment will continue to trend lower through 2022.

III. Signs of economic strength are evident in housing, autos, manufacturing, technology, electronic payments, trucking and rails, to name some key sectors. We see an increasing uplift in the lagging travel and leisure sector in the months ahead, should COVID-19 cases continue to decline as we expect.

IV. Additional stimulus spending is coming. We expect passage of a fiscal stimulus package in the $1.5 to $1.9 trillion range before mid-March. This will provide support to the many smaller businesses and individuals disadvantaged by COVID-19, and hopefully provide a bridge of support until the summer or fall.

V. Another spending bill targeting infrastructure is slated for debate this summer. It could total as much as $2 trillion spread out over a period of years.

VI. We have a shortage of new and affordable housing. Housing is the biggest job creator (with its multiplier). Pent-up demand, demographics, work from home (with the flight to the suburbs) and record low mortgage rates have created lean inventory levels of homes for sale. Housing has a long runway.

VII. Despite COVID-19, government lock-downs, and widespread unemployment, household net worth is at a record high of $123.5 trillion, up 11% from the end of March. This supports consumer confidence and speaks directly to the financial well- being of the investor class.

VIII. Capital chases returns. Stocks are up and interest rates are near all-time lows. Money market fund assets total $4.3

trillion, $700 billion higher than in March of 2020. Equity allocations will rise thanks to TINA (There Is No Alternative), FOMO (Fear of Missing Out) and FOMU (Fear of Massive Underperformance).

14 DIVIDENDS OFFER A RELATIVELY GENEROUS INCOME STREAM AND DIVIDENDS GROW ROUGHLY IN LINE WITH EARNINGS FOR THE OVERALL MARKET.

IX. The Powell Put. Fed Chair Jay Powell cut rates to 0% and started QE with only 100 confirmed cases of COVID-19. He is guiding to no rate rise through 2023, and is willing to let inflation overshoot the Fed’s 2% target if it is good for jobs. His QE program is open-ended. The Fed continues to buy $120 billion of securities each month.

X. We are optimistic for continued growth in 2022. The economy should be fully open, supported by fiscal and monetary policies. Job gains and high savings levels should power consumer spending. We believe stocks are likely to remain the asset class of choice.

Important disclosure information on back

The Gabelli Mutual Funds are distributed by G.distributors, LLC., a registered broker-dealer and member of FINRA.

Gabelli Funds and GAMCO Investors, Inc. is providing this material as a matter of general information. Howard F. Ward is Head of Growth Equities and a Portfolio Manager at GAMCO Investors. Mr. Ward’s views are subject to change at any time based on market and other conditions. This information represents the opinions of Mr. Ward only and is not intended to be a forecast of future events, a guarantee of future results, or investment advice. Mr. Ward’s views may differ from those of other investment professionals or of the Firm as a whole.

Stocks are subject to market, economical and business risks that cause the prices to fluctuate. Bonds, if held to maturity, have the ability to return the principal investment while stocks make no such offer. Also, unlike cash, stocks will fluctuate in value and may lose principal. Dividend paying stocks do not assure a profit or guarantee against a loss. Companies may choose to stop paying dividends at their own discretion.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The Prospectus, which contains more complete information about this and the other matters, should be read carefully before investing. To obtain a prospectus, please call 800-GABELLI or visit www.gabelli.com.

15 THE GABELLI ASSET FUND All Cap Portfolio Built on PMV with a CatalystTM

PORTFOLIO MANAGEMENT TEAM: Mario J. Gabelli, CFA, Christopher J. Marangi, Kevin V. Dreyer, Brian C. Sponheimer, Melody P. Bryant, Jeffrey J. Jonas, CFA, Sarah Donnelly

INVESTMENT SCORECARD

Sony Corp. (3.0% of net assets as of December 31, 2020, +33%), was PORTFOLIO HIGHLIGHTS the largest contributor to fourth quarter and annual returns as its latest Total Net Assets: $2.1 Billion generation PlayStation 5 game console launched with great fanfare, and the company’s sensor business stands to benefit from a new smartphone NAV (Class I): $53.88 cycle and increased automotive production. Industrial firms such as Turnover: (a) 3% AMETEK (3%, +22%), Deere & Co. (2%, +22%), CNH Industrial (1%, +64%), Inception Date: 3/3/86 and Crane Corp. (1%, +56%) rose in anticipation of renewed economic (b) growth, stemming particularly from rising crop prices and a resumption in Net Expense Ratio: 1.11% aerospace spending. Media companies Walt Disney Company (1%, +46%), (a) For the six months ended June 30, 2020. ViacomCBS Class A & Class B (1%/0.2%, +26%/+34%), and Discovery (b) As of June 30, 2020. (1%/0.3%, +34%/+38%) rose as advertising revenue returns and the companies gain traction with their direct-to-consumer (DTC) efforts. Madison Square Garden Entertainment (1%, +53%). Finally, in late SHARE CLASS (c) SYMBOL December, long time holding Aerojet Rocketdyne (1%, +32%) agreed to an acquisition by Lockheed Martin for $56 per share in cash. Class AAA: GABAX Class A: GATAX Several 2020 “winners” gave back a portion of their gains in the fourth Class I: GABIX quarter as the market favored harder-hit stocks poised for recovery (c) Another class of shares is available. in 2021. Following the decline in the price of gold, miners, including

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) Since Inception Gabelli Asset Fund QTR 1 Year 5 Year 10 Year 15 Year (3/3/86) Class I (GABIX) 16.24% 11.50% 11.29% 10.06% 8.94% 11.74% S&P 500 Index 12.15 18.40 15.22 13.88 9.88 10.86 (c) In the current prospectuses dated April 30, 2020, the expense ratio for Class I Shares is 1.11%. Class I Shares do not have a sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. Returns would have been lower had Gabelli Funds, LLC (the “Adviser”) not reimbursed certain expenses of the Fund for periods prior to December 31, 1988. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. The S&P 500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market. The Class AAA Share NAVs are used to calculate performance for the period prior to the issuance of Class I Shares on January 11, 2008. The actual performance of the Class I Shares would have been higher due to lower expenses related to this class of shares. (b) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI. (c) S&P 500 Index since inception performance is as of February 28, 1986.

16 THE GABELLI ASSET FUND

Royal Gold (0.5%, -11%), Newmont (1.4%, -5%), and Barrick Gold (0.2%, -18%) moderated annual gains. S&P Global (1.4%, -9%) declined after SELECTED HOLDINGS* announcing the all-stock acquisition of IHS Markit in a deal that should • AMETEK Inc. 3.3% generate significant synergies after closing in mid-2021. • Sony Corp. 3.0 • Brown-Forman Corp. 3.0 LET’S TALK STOCKS • Swedish Match AB 2.5 The following are stock specifics on selected holdings of our Fund. • Deere & Co. 2.4 Favorable earnings prospects do not necessarily translate into higher • Berkshire Hathaway Inc. 1.8 stock prices, but they do express a positive trend that we believe will • Mastercard Inc. 1.8 develop over time. Individual securities mentioned are not necessarily representative of the entire portfolio. For the following holdings, the • Diageo Plc 1.6 percentage of net assets and their share prices stated in U.S. dollar • Republic Services Inc. 1.5 equivalent terms are presented as of December 31, 2020. • Newmont Corp. 1.4 *Percent of net assets as of December 31, 2020. CNH Industrial NV (1.0% of net assets as of December 31, 2020) (CNHI – $12.84 – NYSE), with headquarters in London, England, and Burr Ridge, Illinois, is a global capital equipment manufacturer that was demerged from parent Fiat in 2013. CNHI is unique in that it has leading positions in a variety of global machinery markets. It is best known for its agricultural equipment business, consisting of Case IH, New Holland Agriculture, and Steyr brands. The company’s other businesses include IVECO, a leading global truck and bus manufacturer, as well as Case and New Holland construction machinery. Finally, FPT Industrial provides engines and transmissions for the company’s captive businesses, and also sells to other machinery manufacturers. The company’s new CEO, Scott Wine, formerly of Polaris, is committed to CNHI’s financial engineering plan by which it will separate its off highway business from its Truck and Engine business via tax free spin.

Comcast Corp. (1.1%) (CMCSA - $55.40 - NYSE), is a broadband and television provider in the U.S., U.K., Italy, and Germany. CMCSA is also a leading media company through its ownership of NBCUniversal. Comcast’s broadband business has performed well through the COVID-19 pandemic. The company also launched Peacock, a new streaming service (with ad-supported tiers), in July. The firm is a strong free cash flow generator, and its valuation is attractive at 9x 2021 projected EBITDA.

Herc Holdings Inc. (0.3%) (HRI – $66.41– NYSE), based in Bonita Springs, Florida, is the third largest equipment rental company in the United States. HRI was spun out of former parent Hertz on June 30, 2016. Underemphasized as part of a significantly larger car rental company, HRI has worked for the past three years to put its operating metrics in line with larger, better known peers such as United Rentals. The company is well positioned to generate considerable cash as the U.S. equipment rental market grows over the next several years. Additionally, management efforts to improve profitability metrics to more closely align with its larger peers could result in valuation multiple expansion.

Newmont Corp. (1.4%) (NEM - $59.89 - NYSE) is the largest gold mining company in the world by volume, producing approximately 6.5 million ounces in 2020. Newmont aims to maintain production through internal expansion projects as some mines deplete. This capital-light model will allow the company to pay increasingly larger dividends if the price of gold stays at current levels or appreciates.

17 THE GABELLI SMALL CAP GROWTH FUND Gabelli Equity Series Funds, Inc.

INVESTMENT SCORECARD

During the fourth quarter of 2020, a number of stocks in (y)our portfolio PORTFOLIO HIGHLIGHTS performed well. One of these was Kaman Corp. (2.1% of net assets as of December 31, 2020), a 70-year old aerospace and defense firm with business Total Net Assets: $1.8 Billion operations in over 50 countries. Third quarter net sales increased 17% year NAV (Class I): $44.71 over year and adjusted diluted earnings per share more than doubled, to Turnover: (a) 0% $0.70 per share, as Kaman’s mix of products and end markets helped to offset continued weakness in commercial aviation.The St. Joe Co. (1.1%), a Inception Date: 10/22/91 Florida-based real estate development, asset management, and operating Net Expense Ratio: (b) 1.15% company, saw third quarter revenue increase 28% year over year. Its Latitude (a) For the twelve months ended September 30, 2020. Margaritaville Watersound community is targeted to open in April 2021, and (b) As of March 31, 2020. the board of directors implemented a quarterly dividend program. Ryman Hospitality Properties (1.2%) is a leading lodging and hospitality real estate investment trust specializing in upscale convention center resorts and SHARE CLASS (c) SYMBOL country music entertainment. In the third quarter, Ryman reduced cash burn by almost $9 million. Approximately 24% of advanced room night bookings Class AAA: GABSX were unrelated to COVID-19 rebooking efforts, and 53% of total room nights canceled year to date because of COVID-19 were rebooked. Class A: GCASX Class I: GACIX Of course, not all of the stocks in the portfolio did well in the fourth quarter. (c) Another class of shares is available. One of the poorer performing stocks was Quidel Corp. (0.8%), a California- based manufacturer of diagnostic healthcare solutions that accurately

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) (c)

Since Inception Gabelli Small Cap Growth Fund QTR 1 Year 5 Year 10 Year 15 Year (10/22/91) Class I (GACIX) 23.44% 13.98% 10.57% 9.96% 9.31% 12.17% S&P SmallCap 600 Index 31.31 11.29 12.37 11.92 9.44 N/A (d) Lipper Small-Cap Core Funds Average 29.73 10.69 11.37 10.00 8.22 N/A (e)

In the current prospectuses dated January 28, 2020, the expense ratios for Class I Shares is 1.15%. Class I Shares have no sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. Returns would have been lower had the Adviser not reimbursed certain expenses of the Fund. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. The Class AAA Share NAVs are used to calculate performance for the period prior to the issuance of Class I Shares on January 11, 2008. The actual performance of the Class I Shares would have been higher due to lower expenses related to this class of shares. Investing in small capitalization securities involves special risks because these securities may trade less frequently and experience more abrupt price movements than large capitalization securities. The S&P SmallCap 600 is an unmanaged indicator which measures the performance of the small-cap segment of the U.S. equity market. The Lipper Small-Cap Core Funds Average reflects the average performance of mutual funds classified in this particular category. Dividends are considered reinvested. You cannot invest directly in an index. (b) The Fund’s fiscal year ends September 30. (c) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI. (d) S&P SmallCap 600 Index inception date as of December 31, 1994. (e) Lipper Small-Cap Core Funds Average inception date as of December 31, 1991.

18 THE GABELLI SMALL CAP GROWTH FUND

and quickly diagnose infectious diseases, as well as cardiovascular and metabolic conditions. Despite a year over year revenue increase in the third SELECTED HOLDINGS* quarter of $476 million and COVID-19 product sales of $375 million, the stock • AMETEK Inc. 2.8% disappointed. Lennar Corp. (1%) is one of the largest builders of homes, with offerings for first-time buyers, move-up buyers, and multigenerational • Kaman Corp. 2.1% families. The stock was down in the fourth quarter, even though improved • GATX Corp. 2.0% margins led to a net earnings increase of over $200 million in its fiscal fourth quarter. Ito En (0.4%), a Japanese producer of green tea, coffee beverages, • Graco Inc. 1.9% and the Oi Ocha tea beverage brand, suffered a year over year per-share • Aerojet Rocketdyne Holdings Inc. 1.9% earnings decline of almost 50%. Sales and operating income decreased with the continued COVID-19 restrictions on going out. • KKR & Co. Inc. 1.6% • Griffon Corp. 1.5% LET’S TALK STOCKS • Herc Holdings Inc. 1.5%

The following are stock specifics on selected holdings of our Fund. Favorable • Crane Co. 1.5% earnings prospects do not necessarily translate into higher stock prices, but • Ferro Corp. 1.4% they do express a positive trend that we believe will develop over time. Individual securities mentioned are not necessarily representative of the *Percent of net assets as of December 31, 2020. entire portfolio. For the following holdings, the percentage of net assets and their share prices stated in U.S. dollar equivalent terms are presented as of December 31, 2020.

Aerojet Rocketdyne Holdings Inc. (1.9% of net assets as of December 31, 2020) (AJRD - $52.85 - NYSE), based in El Segundo, California, is a manufacturer of aerospace and defense products and systems for defense and space applications. The manufacturing operation is a leading technology-based designer, developer, and manufacturer of aerospace and defense products for the U.S. government, including the Department of Defense and NASA. AJRD also manufacturers products for other governmental contractors and the commercial sector. On December 20, 2020, the company announced it had agreed to be acquired by Lockheed Martin Corporation in an all-cash transaction with total equity value of $5 billion or $56 per share. As part of the transaction, Aerojet Rocketdyne declared a $5.00 per share pre-closing special dividend to be paid on March 24, 2021. The transaction is expected to close in the second half of 2021.

Churchill Downs (1.4%) (CHDN - $194.79 - NYSE) owns multiple assets in the U.S. gaming and horse racing assets, including a number of regional casinos, the Kentucky Derby and TwinSpires, the leading digital horse race wagering platform in the U.S. The company has a strong track record of finding high return investment opportunities including expansions to the Derby-host-track Churchill Downs, multiple greenfield casino projects in Illinois and its home state of Kentucky, and expansions to a number of its casinos. Moreover, the company is working to expand its TwinSpires digital race wagering platform into the rapidly growing U.S. sports betting and iGaming markets. TwinSpires itself has seen dramatic growth as horse race bettors have transitioned from physical tracks to its mobile platform during COVID-19 shutdowns. Looking forward, the company has a long runway for expansion into number of fast-growing markets.

Navistar (0.1%) (NAV - $43.96 - NYSE), based in Lisle, Illinois, is a leading North American commercial vehicle manufacturer and one that, for the majority of its history, had been the only one without a global parent. Volkswagen, through its TRATON Truck & Bus subsidiary, purchased 17% of Navistar in September of 2016 and this past January bid $35 in cash for the balance of the company. After talks renewed this past summer, Navistar’s Board agreed for the company to be purchased for $44.50 per share – a deal we expect to close mid-year 2021.

Sinclair Broadcast Group (0.3%) (SBGI - $31.85 - NASDAQ) operates through two segments, Sinclair Broadcasting Group (STG), which operates 190 television stations in 88 markets across the U.S., and Diamond Sports Group (DSG), which consists primarily of 21 regional sports network brands (RSNs) acquired from Fox in 2019, the Marquee Sports Network JV, and a 20% equity interest in the Yankee Entertainment and Sports Network (YES Network). The RSNs and YES Network own the exclusive rights to air, among other sporting events, the games of professional sports teams. While Sinclair’s debt looks significant at around $12.5 billion, roughly $8 billion is tied to the RSN business, and is non-recourse to Sinclair Television Group. As the advertising market rebounds and sports return to a more normalized schedule, Sinclair should benefit. Further, the company will begin participating in the monetization of sports betting through its recently-announced partnership with Bally’s. As part of the deal, Sinclair also received warrants to acquire an equity stake directly in Bally’s.

19 THE GABELLI EQUITY INCOME FUND Gabelli Equity Series Funds, Inc.

INVESTMENT SCORECARD

During the fourth quarter, many stocks performed well. One of the best PORTFOLIO HIGHLIGHTS was Deere (2.7% of net assets as of December 31, 2020), the maker of John Deere tractors, as well as other agricultural and construction Total Net Assets: $567 Million equipment. Investors began to anticipate more fiscal stimulus from the NAV (Class I): $12.40 government during the quarter, in addition to looking beyond COVID-19. Turnover: (a) 0%* This helped many industrial stocks. Some other top performers during Inception Date: 1/2/92 the quarter were PNC Bank (2.1%) and Bank of New York (2.3%). Both (b) of these financial stocks benefited from the slight uptick in long term Net Expense Ratio: 1.21% interest rates, as well as optimism for more fiscal stimulus. Other stocks (a) For the twelve months ended September 30, 2020. that did well include GATX (1.7%), which leases out a fleet of railcars, and * Less than 0.50% (b) As of March 31, 2020. Viacom, a leading media company.

Although many stocks did well in the quarter, there were of course stocks (c) that lagged. One of the underperformers was Swedish Match (5.7%), the SHARE CLASS SYMBOL smokeless tobacco company based in Sweden. Newmont Corp. (1.5%), Class AAA: GABEX along with many other gold stocks, was another underperformer. The large global food company, Nestlé (0.7%), was another laggard, as Class A: GCAEX investors focused more on traditional value stocks during the quarter. Class I: GCIEX S&P Global (1.3%), formerly called McGraw-Hill, which provides ratings, (c) Another class of shares is available. benchmarking and other services, also underperformed.

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) (c)

Since Inception Gabelli Equity Income Fund QTR 1 Year 5 Year 10 Year 15 Year (01/02/92) Class I (GCIEX) 14.08% 7.43% 8.41% 8.77% 7.55% 9.68% Lipper Equity Income Fund Average 12.89 4.72 10.47 10.26 7.49 8.52

In the current prospectuses dated January 28, 2020, the expense ratio for Class I Shares is 1.21%. Class I Shares do not have a sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli. com. The Class AAA Share NAVs are used to calculate performance for the period prior to the issuance of Class I Shares on January 11, 2008. The actual performance of the Class I Shares would have been higher due to lower expenses related to this class of shares. The Lipper Equity Income Fund Average includes the 30 largest equity funds in this category tracked by Lipper, Inc. Dividends are considered reinvested. You cannot invest directly in an index. (b) The Fund’s fiscal year ends September 30. (c) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI.

20 THE GABELLI EQUITY INCOME FUND

LET’S TALK STOCKS SELECTED HOLDINGS* The following are stock specifics on selected holdings of our Fund. Favorable earnings prospects do not necessarily translate into higher • Swedish Match AB 5.7% stock prices, but they do express a positive trend that we believe will • Genuine Parts Co. 3.6 develop over time. Individual securities mentioned are not necessarily • Brown-Forman Corp. 3.1 representative of the entire portfolio. For the following holdings, the percentage of net assets and their share prices stated in U.S. dollar • Deere & Co. 2.7 equivalent terms are presented as of December 31, 2020. • Bank of New York Mellon Corp. 2.3 • Mastercard Inc. 2.2 Bank of New York Mellon Corp. (2.3% of net assets as of December 31, 2020) (BK – $42.44 – NYSE) is a global leader in providing financial • ViacomCBS Inc. 2.2 services to institutions and individuals. The company operates in more • PNC Financial Services Group Inc. 2.1 than one hundred markets worldwide and strives to be the global • Verizon Communications Inc. 2.0 provider of choice for investment management and investment services. As of December 2020, the firm had $41.1 trillion in assets under custody • Heineken N.V. 1.8 and $2.0 trillion in assets under management. Going forward, we expect *Percent of net assets as of December 31, 2020. BK to benefit from rising global incomes and the cross border movement of financial transactions.

Deere & Co. (2.7%) (DE – $269.05 – NYSE) headquartered in Moline, Illinois, is a leading global manufacturer of machinery for agricultural, construction, and forestry usage. Its dominant position in North American agricultural equipment markets optimally positions the company for what is expected to be an increase in demand for agricultural equipment both in the near term given cycle dynamics as well as for the long term, as global population and income growth drive crop demand in the coming decades. Its premium product portfolio and strong balance sheet position it well to thrive as its end markets recover. Moreover, DE is a leader in “Precision Ag” technologies that improve farmer productivity through cloud and AI-based improvements to centuries-old farming techniques.

Deutsche Telekom (0.6%) (DTEGY – $18.27 – OTC) is the incumbent German telecom provider with other operations in the U.S. and central and eastern Europe. Beyond the momentum and synergies coming from T-Mobile US after its 2020 merger with Sprint, Deutsche Telekom’s German business is expected to generate improved cash flow, driven by the migration to an all-IP network, coupled with additional operating expense reductions. If the company’s stake in T-Mobile US is backed out, the German and European businesses are valued at €3 per share, a deeply discounted multiple of 3.7x 2020 EBITDA.

Swedish Match AB (5.7%) (SWMA – $77.52/SEK 637.80 – Stockholm Stock Exchange) produces tobacco products that include snus and snuff, chewing tobacco, cigars, and lights. The company has been benefiting from the growth of the smokeless tobacco market in both Scandinavia and the U.S., as public smoking bans and health concerns are driving consumers to seek alternative tobacco products to cigarettes. The company has a rapidly growing tobacco-free nicotine pouch product called ZYN that is growing rapidly in the U.S. and Scandinavia, and is driving growth in its mass market cigar business through its new natural leaf products. Driven by ZYN, we expect Swedish Match to continue to grow its smokeless business globally, and the company could be an attractive takeover candidate for a global tobacco company that wants to increase its presence in the smokeless segment.

ViacomCBS (2.2%) (VIA – $37.82 – NASDAQ) is the product of the December 2019 recombination of Viacom and CBS, two companies controlled by the family of the late Sumner Redstone. ViacomCBS is a globally-scaled content company with networks including CBS, Showtime, Nickelodeon, MTV, Comedy Central, VH1, BET, 30 television stations, the Simon & Schuster publishing house, and the Paramount movie studio. The companies separated in 2005, but changes in the media landscape have put a premium on global scale. Together, ViacomCBS should be able to better navigate shifts in consumer behavior and monetization while generating significant cost savings and enhancing revenue growth with the soon-to-be-launched Paramount direct-to-consumer platform as a centerpiece.

21 THE GABELLI VALUE 25 FUND INC.

PORTFOLIO MANAGEMENT TEAM: Mario J. Gabelli, CFA, Christopher J. Marangi

INVESTMENT SCORECARD

Sony Corp. (9%, +33%), was the largest contributor to fourth quarter and PORTFOLIO HIGHLIGHTS annual returns as its latest generation PlayStation 5 game console launched Total Net Assets: $309 Million with great fanfare, and the company’s sensor business stands to benefit from a new smartphone cycle and increased automotive production. Although NAV (Class I): $13.36 it remained the largest detractor for the year, ViacomCBS (10%, +26%) Turnover: (a) 3% gained significant ground in the fourth quarter, making it the second largest Inception Date: 9/29/89 contributor. Like many media companies, ViacomCBS was hit hard in the first Net Expense Ratio: (b) 1.00% quarter by lower advertising revenue, a lack of sports programming, theater (a) For the six months ended June 30, 2020. closures and the suspension of film and TV production, but rebounded as (b) As of June 30, 2020. many of those revenue sources returned or appeared more likely to return in 2021. Similarly, Madison Square Garden Entertainment (2%, +53%) and Ryman Hospitality (1%, +84%) performed well as COVID-19 vaccines raised hopes for in-person sporting and conference attendance. Finally, in late SHARE CLASS (c) SYMBOL December, long time holding Aerojet Rocketdyne (4%, +32%) agreed to an acquisition by Lockheed Martin for $56 per share in cash. Class AAA: GVCAX Class A: GABVX The two primary detractors during the fourth quarter were among the biggest Class I: GVCIX winners for the year. Swedish Match (7%, -5%) and gold miner Newmont (c) Another class of shares is available. Mining (7%, -5%) declined as investors rotated to more cyclical industries.

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) Since Inception Gabelli Value 25 Fund Inc. QTR 1 Year 5 Year 10 Year 15 Year (9/29/89) Class I (GVCIX) 18.36% 6.28% 7.99% 7.87% 7.00% 9.83% S&P 500 Index 12.15 18.40 15.22 13.88 9.88 10.21

In the current prospectuses dated April 30, 2020, the gross expense ratio for Class I Shares is 1.16%, and the net expense ratio after contractual reimbursements by Gabelli Funds, LLC, (the “Adviser”) is 1.00%. The contractual reimbursement for Class I Shares is in effect through April 30, 2021. Class I Shares do not have a sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. Returns would have been lower had the Adviser not reimbursed certain expenses of the Fund. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. The Class A Share NAVs are used to calculate performance for the period prior to the issuance of Class I Shares on January 11, 2008. The actual performance of the Class I Shares would have been higher due to lower expenses associated with this class of shares. The S&P 500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market. Dividends are considered reinvested. (b) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI.

22 THE GABELLI VALUE 25 FUND INC.

LET’S TALK STOCKS

The following are stock specifics on selected holdings of our Fund. Favorable SELECTED HOLDINGS* earnings prospects do not necessarily translate into higher stock prices, but they do express a positive trend that we believe will develop over time. • ViacomCBS Inc. 9.6% Individual securities mentioned are not necessarily representative of the • Sony Corp. 9.3 entire portfolio. For the following holdings, the percentage of net assets and their share prices stated in U.S. dollar equivalent terms are presented as of • Newmont Corp. 6.9 December 31, 2020. • Swedish Match AB 6.9 • American Express Co. 4.3 Honeywell International Inc. (2.0% of net assets as of December 31, 2020) (HON – $212.70 – NYSE) operates as a diversified technology company • Aerojet Rocketdyne Holdings Inc. 3.8 with highly engineered products, including turbine propulsion engines, • Republic Services Inc. 3.3 auxiliary power units, aircraft brake pads, environmental control systems, • Madison Square Garden Sports Corp. 3.1 engine controls, communications and navigation systems, sensors, building automation, catalysts and absorbents and process technology for the • Diageo Plc 2.9 petrochemical and refining industries and warehouse automation equipment • Bank of New York Mellon Corp. 2.7 and software. One of the key drivers of HON’s growth is acquisitions that *Percent of net assets as of December 31, 2020. increase the company’s growth profile globally, creating both organic and inorganic opportunities.

Liberty Broadband’s (2.4%) (LBRDA – $157.58 – NASDAQ) principal assets are a 25% interest in Charter Communications, the second largest cable company in the U.S., and General Communications, the leading cable and wireless provider in Alaska. Liberty Broadband is the product of decades of financial engineering by cable pioneer Dr. John Malone, who effectively controls the company. Charter, currently operated by former Cablevision executive Tom Rutledge, successfully integrated the acquisitions of Time Warner Cable and Bright House and is now capitalizing on its broadband infrastructure advantage during a time of increasing internet usage. Liberty’s investment in Charter was held in two entities, Liberty Broadband and GCI Liberty (which itself also owned 24% of Liberty Broadband); the two entities merged in December 2020 in a long-anticipated transaction. This ownership rationalization should allow for accelerated share repurchases and an eventual combination with Charter.

Madison Square Garden Sports Co. (3.1%) (MSGS – $ 184.10 – NYSE), owner of the New York Knicks basketball team and the New York Rangers hockey team, is one the few ways for the public to access the positive dynamics of sports franchises. The company’s predecessor was originally spun-off from Cablevision in 2010 and subsequently separated into a regional sports networks as MSG Networks and then its venue and entertainment businesses via Madison Square Garden Entertainment. Although the company has been negatively impacted by a shortened season and lack of live fans due to COVID-19, the value of the teams has been growing along with the global popularity of basketball.

Sony Corp. (9.3%) (SNE – $101.10 – NYSE) is a conglomerate based in Tokyo, Japan focused on direct-to-consumer entertainment products supported by the company’s technology. Sony is the #1 integrated global gaming company and we expect the gaming segment to contribute nearly half of EBITDA (ex-financial) in 2020 following the much anticipated launch of the PlayStation 5, in the 2020 holiday season. Sony Music Recording commands #2 and Music Publishing #1 global share and is a hidden asset as music values have increased with the success of streaming. Sony also operates the Sony/Columbia film studio, which is well positioned in the OTT streaming wars as a major supplier of high quality library shows like Seinfeld. Sony is an image sensor leader with over 50% global revenue share. We expect strong 5G iPhone 12 upgrade cycle will benefit Sony as the sole supplier of iPhone’s image sensors. Sony’s Electronics business remains a globally diversified and defensive cash cow, e.g. robust TV sales during COVID-19 pandemic. Sony has net cash on its balance sheet, enabling the company to manage through COVID-19 and increase its dividend return and introduce another major stock buy back. Online game usage has increased dramatically with stay-at-home restrictions, but businesses such as movies are impacted by production stopping and releases delayed.

Swedish Match AB (6.9%) (SWMA – $77.52/SEK 637.80 – Stockholm Stock Exchange) produces tobacco products that include snus and snuff, chewing tobacco, cigars, and lights. The company has been benefiting from the growth of the smokeless tobacco market in both Scandinavia and the U.S., as public smoking bans and health concerns are driving consumers to seek alternative tobacco products to cigarettes. The company has a rapidly growing tobacco-free nicotine pouch product called ZYN that is growing rapidly in the U.S. and Scandinavia, and is driving growth in its mass market cigar business through its new natural leaf products. Driven by ZYN, we expect Swedish Match to continue to grow its smokeless business globally, and the company could be an attractive takeover candidate for a global tobacco company that wants to increase its presence in the smokeless segment.

23 THE GABELLI GLOBAL RISING INCOME & DIVIDEND FUND GAMCO Global Series Funds, Inc.

INVESTMENT SCORECARD PORTFOLIO HIGHLIGHTS One of the many stocks that performed well during the quarter was Sony (11% of net assets as of December 31, 2020), the Japanese conglomerate Total Net Assets: $55 Million that makes consumer electronics, movies, and many other products. NAV (Class I): $29.15 As investors started to look beyond COVID-19 during the quarter, more Turnover: (a) 5% attention was paid to the significant value of the various businesses Inception Date: 2/3/94 that Sony owns. Two industrial stocks stood out as top performers in Net Expense Ratio: (b) 0.91% the quarter. CNH Industrial (4%), the European-based maker of farm (a) For the six months ended June 30, 2020. equipment, and Herc (1%), the equipment rental company, are both (b) As of June 30, 2020. poised to benefit from more fiscal stimulus and a potential infrastructure spending bill. The financial services company Citigroup (1%) was also a top performer, as investors started to focus on the prospects of long (c) term interest rates rising. SHARE CLASS SYMBOL

Class AAA: GAGCX One of the stocks that underperformed during the quarter was Swedish Match (1%), the smokeless tobacco company based in Sweden. Although Class A: GAGAX the stock struggled in the quarter, it still performed well for the full year. Class I: GAGIX Newmont Corp., along with other gold stocks, was also an underperformer (c) Another class of shares is available. in the quarter. Mandarin Oriental (1%), the Asian-based hotel company, was a lagging stock as travelers around the world cut back on travel due to the COVID-19 virus. S&P Global, formerly called McGraw-Hill, also underperformed in the quarter.

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) Since Inception Gabelli Global Rising Income & QTR 1 Year 5 Year 10 Year 15 Year Dividend Fund (2/3/94) Class I (GAGIX) 20.27% 11.67% 7.44% 5.15% 3.83% 4.97% MSCI World Index 13.96 15.90 12.19 9.87 7.33 7.37 (c) In the current prospectuses dated April 30, 2020, the gross expense ratio for Class I Shares is 1.46%, and the net expense ratio after contractual reimbursements by Gabelli Funds, LLC, (the “Adviser”) is 0.91%. The contractual reimbursement for Class I Shares is in effect through April 30, 2021. Class I Shares do not have a sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. Returns would have been lower had the Adviser not reimbursed certain expenses of the Fund. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. Investing in foreign securities involves risks not ordinarily associated with investments in domestic issues, including currency fluctuation, economic, and political risks. The Class AAA Share NAVs are used to calculate performance for the period prior to the issuance of Class I Shares on January 11, 2008, respectively. The actual performance of the Class I Shares would have been higher due to lower expenses related to this class of shares. The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed market. Dividends are considered reinvested. You cannot invest directly in an index. (b) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI. (c) MSCI World Index since inception performance is as of January 31, 1994.

24 THE GABELLI GLOBAL RISING INCOME & DIVIDEND FUND

LET’S TALK STOCKS SELECTED HOLDINGS* The following are stock specifics on selected holdings of our Fund. Favorable earnings prospects do not necessarily translate into higher • Sony Corp. 11.0% stock prices, but they do express a positive trend that we believe will • Remy Cointreau S.A. 4.1 develop over time. Individual securities mentioned are not necessarily • CNH Industrial N.V. 3.5 representative of the entire portfolio. For the following holdings, the percentage of net assets and their share prices stated in U.S. dollar • Nestlé S.A. 3.0 equivalent terms are presented as of December 31, 2020. • EnPro Industries Inc. 2.3 • Berkshire Hathaway Inc. 1.9 Deutsche Telekom (0.3%) (DTEGY – $18.27 – NASDAQ) is the incumbent • Hunter Douglas N.V. 1.9 German telecom provider with other operations in the U.S. and central and eastern Europe. Beyond the momentum and synergies coming from • William Hill Plc 1.8 T-Mobile U.S. after its 2020 merger with Sprint, Deutsche Telekom’s • T-Mobile U.S. Inc. 1.8 German business is expected to generate improved cash flow driven by • Sistema 1.8 the migration to an all-IP network, coupled with additional operating expense reductions. Backing out the company’s stake in T-Mobile U.S., *Percent of net assets as of December 31, 2020. the German and European businesses are valued at €3 per share, a deeply discounted multiple of 3.7x 2020 EBITDA.

Swedish Match AB (1.3%) (SWMA – $77.52/SEK 637.80 – Stockholm Stock Exchange) produces tobacco products that include snus and snuff, chewing tobacco, cigars, and lights. The company has been benefiting from the growth of the smokeless tobacco market in both Scandinavia and the U.S., as public smoking bans and health concerns are driving consumers to seek alternative tobacco products to cigarettes. The company has a rapidly growing tobacco-free nicotine pouch product called ZYN that is growing rapidly in the U.S. and Scandinavia, and is driving growth in its mass market cigar business through its new natural leaf products. Driven by ZYN, we expect Swedish Match to continue to grow its smokeless business globally, and the company could be an attractive takeover candidate for a global tobacco company that wants to increase its presence in the smokeless segment.

T-Mobile US, Inc. (1.8%) (TMUS – $134.85 – NASDAQ) is the second-largest wireless operator in the U.S, serving over 100 million branded customers. In November, TMUS reported stronger than expected 3Q results and synergy realization. The merger with Sprint (completed in April 2020) amplifies value creating opportunity for T-Mobile (with improved competitive position, strong spectrum portfolio, meaningful synergy potential, and ability to build a high-capacity differentiated 5G network).

William Hill plc (1.8%) (WMH – $3.69/£2.70 – London Stock Exchange), headquartered in London, U.K., agreed to be acquired by Caesars Entertainment, Inc. (CZR - NASDAQ) for £2.72 cash per share, valuing the company at approximately £3 billion ($3.7 billion). William Hill provides sports betting and gaming services in the U.K., Europe, and U.S. William Hill US is the largest operator of land-based sports betting venues in Nevada and following the Supreme Court’s repeal of the Professional and Amateur Sports Protection Act in May 2018, has been rapidly expanding into newly regulated states. The transaction is subject to regulatory approvals, and expected to close in the second quarter of 2021.

25 THE GABELLI FOCUSED GROWTH AND INCOME FUND (formerly The Gabelli Focus Five Fund) Gabelli Equity Series Funds, Inc.

PORTFOLIO MANAGEMENT: Daniel M. Miller

INVESTMENT SCORECARD PORTFOLIO HIGHLIGHTS 2020 was an especially volatile year for investors in event driven value Total Net Assets: $35 Million strategies, with the uncertainty of lockdowns yielding to optimism, particularly with the prospect for vaccinations and herd immunity. NAV (Class I): $15.53 While an economic recovery is likely to take longer than expected, we Turnover: (a) 59% can say with confidence that government stimulus will be with us for Inception Date: 12/31/02 some time. Partially as a result of unprecedented intervention, interest (b) rates are likely to remain historically low for the foreseeable future. This Net Expense Ratio: 1.39% dynamic will lead institutions managing pensions, life insurance firms, (a) For the twelve months ended September 30, 2020. and individuals living on fixed incomes to refine their search for current (b) As of March 31, 2020. returns. We believe equities, preferred securities, convertible bonds and similar instruments that offer material appreciation, but also high levels (c) of dividends will become more attractive in the coming months. This is SHARE CLASS SYMBOL especially likely, in our view, given how poorly dividend paying stocks Class AAA: GWSVX have fared in recent years. The commentary below reflects some of the Class A: GWSAX outliers to performance in 2020, but also a glimpse at how we are actively Class I: GWSIX modifying this portfolio, with tax efficiency, to position our shareholders to benefit from the aforementioned investment trends. (c) Another class of shares is available.

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) (c)

Since Inception Gabelli Focused Growth and Income Fund QTR 1 Year 3 Year 5 Year 10 Year (12/31/02) Class I (GWSIX) 20.02% 8.98% 1.24% 4.40% 5.71% 6.98% S&P MidCap 400 Index 24.37 13.66 8.45 12.35 11.51 11.40 Russell 2500 Index 27.41 19.99 11.33 13.64 11.97 11.68 Russell 1000 Index 13.69 20.96 14.82 15.60 14.01 10.94 MSCI AC World Ex-U.S. Index 17.08 11.13 5.38 9.44 5.40 8.58 Blended Index 21.28 18.09 10.69 13.07 10.78 10.72

In the current prospectuses dated January 28, 2020, the expense ratio for Class I Shares is 1.39%. Class I Shares have no sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. Returns would have been lower had the Adviser not reimbursed certain expenses of the Fund. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www. gabelli.com. The Class AAA Share NAVs are used to calculate performance for the periods prior to the issuance of Class I Shares on January 11, 2008. The actual performance of Class I Shares would have been higher due to lower expenses associated with this class of shares. The S&P MidCap 400 Index is an index comprised of U.S. stocks in the middle capitalization range, which is generally considered to be between $200 million and $5 billion in market value. The Russell 2500 Index is a market capitalization weighted index of 2,500 U.S. traded small and mid capitalization stocks. The Russell 1000 Index is a market capitalization weighted index of 1,000 U.S. traded large capitalization stocks. The Morgan Stanley Capital International All Country World Index excluding the U.S. (MSCI ACWI Ex-U.S.) is a market capitalization weighted index of small, mid, and large capitalization stocks across developed and emerging markets, excluding U.S. stocks. The Blended Index consists of 50% Russell 2500 Index, 25% Russell 1000 Index, and 25% MSCI ACWI Ex-U.S. Index. Dividends are considered reinvested. You cannot invest directly in an index. (b) The Fund’s fiscal year ends September 30. (c) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI.

26 THE GABELLI FOCUSED GROWTH AND INCOME FUND

LET’S TALK STOCKS

The following are stock specifics on selected holdings of our Fund. SELECTED HOLDINGS* Favorable earnings prospects do not necessarily translate into higher • MGM Growth Properties LLC 7.3% stock prices, but they do express a positive trend that we believe will • NextEra Energy Partners LP 7.3 develop over time. Individual securities mentioned are not necessarily • Apollo Global Management Inc. 5.0 representative of the entire portfolio. For the following holdings, the percentages of net assets, and their share prices are stated as of • Maple Leaf Foods Inc. 4.8 December 31, 2020. • Kinder Morgan Inc. 4.7 • Post Holdings Inc. 4.5 MGM Growth Properties LLC (7.3% of net assets as of December 31, 2020 • Option Care Health Inc. 4.4 – MGP – $31.30 – NYSE) was the biggest contributor to performance in • New York Community Bancorp Inc. 3.8 2020, adding approximately 300bps, and remained our largest position • SiriusXM Holdings Inc. 3.8 at the start of the year. While MGP’s share price dipped precipitously in • Macqarie Infrastructure Corp. 3.5 the spring as investors were grappling with the prospect of prolonged *Percent of net assets as of December 31, 2020. shutdowns, the re-opening of Las Vegas is proceeding as planned. We continue to believe that the company’s high quality assets, competent management team, and strong balance sheet set it apart from other REITs. MGP’s secure stream of rental income is derived from a world class tenant that has diversified into sports betting and e-gaming. This means stable dividends for MGP shareholders, along with a growing pipeline of acquisition opportunities. The company continues to target a dividend payout of approximately 80% of adjusted funds from operations (AFFO). The current annual dividend of $1.95 per share represents a 37% increase since the company’s IPO, and should continue to grow about 2% per year along with rent escalators.

Herc Holdings Inc. (3.5%) (HRI – $66.41 – NYSE) was our second biggest contributor to performance last year. Shares rebounded sharply on the prospects for major infrastructure reform and capital projects. HRI, along with many small cap industrial peers, began a steady rise following the November 3 elections, appreciating almost 70% in the two final months of the year. Herc has undertaken a significant transformation following its spin-off from Hertz several years ago, and is well positioned for the spending boom that we are likely to experience in benefit of our roads, bridges, tunnels, airports, etc. We are particularly bullish that a former Mayor, Pete Buttigieg, will be leading the Department of Transportation and will likely emphasize municipal upgrades that are long overdue.

NextEra Energy Partners LP (7.3%) (NEP – $67.05 – NYSE) was our third best performer in 2020. NEP is a pure-play clean energy growth vehicle with a world class portfolio of wind and solar assets. Supported by the strong balance sheet of its majority shareholder, NextEra Energy (NYSE: NEE), we believe NEP will continue to benefit from renewable project development, particularly with Democratic control of Congress and the White House. We except legislation and tax policy around solar and wind development, along with energy storage, to act as tailwind in 2021. NEP is well-positioned to increase its annual distribution from the current level of $2.38 per share.

Qurate Retail Inc. (2.1%) (Cv., 8.00%, 3/15/31) (QRTEA – NASDAQ) is a new position we initiated in the 4th quarter. Qurate is a high margin, high return e-commerce retail business that was formed by putting together several brands, including QVC, Home Shopping Network, Zulily, and Cornerstone. Given the company’s strong free cash flow, it issued a one-time special dividend of cash, and a preferred security (QRTEP) in September. The preferred offers investors an 8% current return on $100 par paper that is callable in year five. We were able to acquire preferred shares at more than a 10% discount to par when retail investors sold upon its issuance.

27 THE GABELLI DIVIDEND GROWTH FUND

PORTFOLIO MANAGEMENT TEAM: Sarah Donnelly, Robert Leininger, CFA, Justin Bergner, CFA

INVESTMENT SCORECARD

During the quarter, there were a number of strong performers in PORTFOLIO HIGHLIGHTS (y)our portfolio. One of the best was Honeywell (5% of net assets as Total Net Assets: $21 Million of December 31, 2020), the industrial conglomerate that is involved in aerospace, building technologies, and safety solutions, among other NAV (Class I): $17.00 business lines. Honeywell benefited from greater investor interest in Turnover: (a) 16% industrial stocks as investors started to look beyond COVID-19. Two other Inception Date: 8/26/99 top performers during the quarter were Citigroup (3%) and Morgan Net Expense Ratio: (b) 1.00% Stanley (3%). Both of these are financial stocks, and the modest uptick (a) For the six months ended June 30, 2020. in long term interest rates during the quarter helped many stocks in this (b) As of June 30, 2020. sector. Other strong performers include DuPont (4%), the conglomerate which is going through some financial engineering, and General Electric (1%), another conglomerate that is benefiting from new leadership. SHARE CLASS (c) SYMBOL Of course, not all stocks in the portfolio did well. One of the main Class AAA: GABBX underperformers was Merck (6%), the global health care company. Class A: GBCAX International Flavor & Fragrances (2%), which is going through a reverse Morris Trust transaction with DuPont, also lagged. Newmont Corp. Class I: GBCIX (2%), along with other gold stocks, was another underperformer. Other (c) Another class of shares is available. laggards were Kroger, the supermarket company, and Avangrid (1%), a utility company based in Connecticut.

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) Since Inception Gabelli Dividend Growth Fund QTR 1 Year 5 Year 10 Year 15 Year (8/26/99) Class I (GBCIX) 17.31% 6.17% 9.00% 8.62% 6.73% 6.23% Lipper Large Cap Value Fund Average 16.86 5.63 10.77 10.42 7.37 5.84

In the current prospectuses dated April 30, 2020, the expense ratio for Class I Shares is 1.93%, and the net expense ratio after contractual reimbursements by Gabelli Funds, LLC, (the “Adviser”) is 1.00%. The contractual reimbursement for Class I Shares is in effect through April 30, 2021. Class I Shares do not have a sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. Returns would have been lower had the Adviser not reimbursed certain expenses of the Fund. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. The Lipper Large Cap Value Fund Average reflects the average performance of mutual funds classified in this particular category. Dividends are considered reinvested. You cannot invest directly in an index. The Class AAA Share NAVs are used to calculate performance for the period prior to the issuance of Class I Shares on June 30, 2004. The actual performance for the Class I Shares would have been higher due to the lower expenses related to this class of shares. (b) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI.

28 THE GABELLI DIVIDEND GROWTH FUND

LET’S TALK STOCKS SELECTED HOLDINGS* The following are stock specifics on selected holdings of our Fund. Favorable • Merck & Co. 5.6% earnings prospects do not necessarily translate into higher stock prices, but they do express a positive trend that we believe will develop over time. • Honeywell International Inc. 4.9 Individual securities mentioned are not necessarily representative of the • Mondelēz International Inc. 4.4 entire portfolio. For the following holdings, the percentage of net assets and • DuPont De Nemours Inc. 3.9 their share prices stated in U.S. dollar equivalent terms are presented as of December 31, 2020. • Citigroup Inc. 3.3 • American Express Co. 3.2 American Express Co. (3.2% of net assets as of December 31, 2020) (AXP – • Alphabet Inc. 3.0 $120.91 – NYSE) is the largest closed loop credit card company in the world. The company operates its eponymous premiere branded payment network • Hain Celestial Group Inc. 2.7 and lends to its largely affluent customer base. As of September 2020, • Morgan Stanley 2.6 American Express has 114 million cards in force and nearly $92 billion in • PayPal Holdings Inc. 2.3 loans, while its customers charged $1.2 trillion of spending on their cards in 2019. The company’s strong consumer brand has allowed American Express *Percent of net assets as of December 31, 2020. to enter the deposit gathering market as an alternate source of funding, while the company’s affluent customers have picked up spending. Longer term, American Express should capitalize on its higher spending customer base and continue to expand into other payment related businesses, such as corporate purchasing, while also growing in emerging markets. Similarly, the company is looking at the growing success of social media as an opportunity to expand its product base and payment options.

DuPont De Nemours Inc. (3.9%) (DD – $71.11 – NYSE) New DuPont was formed following the merger of Dow Chemical (DOW) and DuPont de Nemours (DD) which closed on 8/31/17. DowDuPont (DWDP) spun-off Materials Science operations as Dow, Inc. (DOW) and Agricultural Solutions operations as Corteva (CTVA). New DuPont includes Nutrition & Biosciences, Electronics & Imaging, Safety & Construction, and Transportation & Advanced Polymers. On February 1, the company completed the separation of its Nutrition & Biosciences business, which merged with IFF. In connection with the closing of the transaction (valued at $26B), DuPont received a special cash payment of $7.3B; approximately $5B will be used to reduce debt. Based on the preliminary results from the exchange offer, which consisted of one share off DD for 0.718 share of IFF, DuPont’s shares outstanding will decline by 197 million shares to 537 million. While we expect similar transactions in the future, given the impact from COVID-19 on global economies, DuPont’s management focus over the short-to-medium term will be on growing and improving the efficiencies of its remaining operations.

Honeywell International Inc. (4.9%) (HON – $212.70 – NYSE) operates as a diversified technology company with highly engineered products, including turbine propulsion engines, auxiliary power units, aircraft brake pads, environmental control systems, engine controls, communications and navigation systems, sensors, building automation, catalysts and absorbents and process technology for the petrochemical and refining industries and warehouse automation equipment and software. One of the key drivers of HON’s growth is acquisitions that increase the company’s growth profile globally, creating both organic and inorganic opportunities.

Merck & Company, Inc. (5.6%) (MRK – $81.80 – NYSE), headquartered in Whitehouse Station, New Jersey, is a major international pharmaceutical company with global revenue of $46.8 billion in 2019. The company continues to benefit from cancer blockbuster Keytruda, which grew 30% to $10.4B for the nine months ending September 2020, despite COVID-19. The company’s vaccine business has seen greater disruption from the pandemic with both pediatric vaccines and Gardasil declining through the first nine months of 2020. The company still expects to spin off its women’s health-focused Organon business by mid-2021, but efforts to develop a vaccine for COVID-19 were recently terminated due to insufficient efficacy data in early clinical studies.

Morgan Stanley (2.6%) (MS – $68.53 – NYSE) is a global investment bank with over 50,000 employees operating in 42 countries. In 2009, the firm purchased the Smith Barney brokerage unit from Citigroup and now operates the largest retail and institutional sales force in the United States. Under the leadership of CEO Jim Gorman, the investment bank has pivoted to a more favorable model of fee generating businesses. Most recently the firm added to its digital capabilities with the acquisition of E*Trade and is set to close on another major acquisition in Eaton Vance to bolster capabilities in asset management. We believe these corporate actions and continued growth in scale provide Morgan Stanley with a unique competitive platform in global financial services.

29 THE GABELLI GLOBAL MINI MITES FUND

PORTFOLIO MANAGEMENT: Mario J. Gabelli, CFA, Sarah Donnelly, Ashish Sinha, Hendi Susanto, Chong-Min Kang

INVESTMENT SCORECARD

During the fourth quarter, the Gabelli Global Mini Mites Fund appreciated PORTFOLIO HIGHLIGHTS 34%, compared to a total return of 23.7% for the S&P Developed SmallCap Index. Total Net Assets: $4 Million NAV (Class I): $10.67 In the fourth quarter, global markets rose in anticipation of widespread Turnover: (a) 32% vaccinations and a reopening of the global economy in 2021, as the world Inception Date: 10/1/18 embraced the first reports that several vaccine candidates developed were highly effective in preventing COVID-19. Net Expense Ratio: (b) 0.91% (a) For the six months ended June 30, 2020. The top contributors to performance in the quarter included Modine (b) As of June 30, 2020. Manufacturing (4% of net assets as of December 31, 2020) and Steel Partners Holdings (6%). Racine, Wisconsin-based Modine is a leading heating and cooling solutions provider for residential and commercial SHARE CLASS (c) SYMBOL customers, which includes cooling systems for data center sites. During the quarter, the company announced the long-awaited divesture of its Class AAA: GAMNX automotive-related business to Dana Incorporated (DAN-NYSE) for Class A: GMNAX negligible proceeds but it eliminates a low-margin, no growth business. Class I: GGMMX Additionally, the company appointed Neil Brinker in November 2020 as (c) Another class of shares is available. the new CEO; he brings to the company diverse industrial experience from his previous positions at Advanced Energy Industries and IDEX Corp. Steel Partners Holdings, a limited partnership, owns several diversified industrial, energy, logistics and banking businesses in addition to equity stakes in publicly traded entities, such as Aerojet Rocketdyne Holdings, Inc., Aviat Networks, Inc. and Steel Connect, Inc., which represent significant value. In December, Aerojet Rocketdyne announced that it agreed to

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) Since Inception Gabelli Global Mini Mites Fund QTR 1 Year (10/1/18) Class I (GGMMX) 33.95% 15.87% 5.06% S&P Developed SmallCap Index 23.70 16.20 8.66

In the current prospectuses dated April 30, 2020, the gross expense ratio for Class I Shares is 10.56%, and the net expense ratio after contractual reimbursements by Gabelli Funds, LLC, (the “Adviser”) is 0.91%. The contractual reimbursements are in effect through April 30, 2021. Class I Shares do not have a sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. Returns would have been lower had the Adviser not reimbursed certain expenses of the Fund. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. Investing in foreign securities involves risks not ordinarily associated with investments in domestic issues, including currency fluctuation, economic, and political risks. The S&P Developed SmallCap Index is a float-adjusted market-capitalization-weighted index designed to measure the equity market performance of small-capitalization companies located in developed markets. The index is composed of companies within the bottom 15% of the cumulative market capitalization in developed markets. The index covers all publicly listed equities with float- adjusted market values of U.S. $100 million or more and annual dollar value traded of at least U.S. $50 million in all included countries. You cannot invest directly in an index. (b) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI.

30 THE GABELLI GLOBAL MINI MITES FUND be acquired by Lockheed Martin Corp. (LMT-NYSE) for $56 per share in cash, including a special dividend of $5 per share to be SELECTED HOLDINGS* paid in March 2021. The transaction is expected to close in the • Commercial Vehicle Group Inc. 6.2% second half of 2021. • Steel Partners Holdings LP 5.6 The largest detractors included Du-Art Film Labs (0.4%) and • Ampco-Pittsburgh Corp. 4.6 Avio SpA (0.9%). Du-Art, a production and media services company, is thinly traded and experienced a meaningful decline • Modine Manufacturing Technologies Inc. 4.3 in the quarter as its film and rental businesses continue to • Corem Property Group 3.7 be affected by the pandemic; however, the value remains in its real estate holdings. Avio SpA is a propulsion and launch • Core Molding Technologies Inc. 3.5 systems contractor based in Italy. The company’s boosters and • Intricon Corp. 2.6 components are used in launch vehicles capable of deploying satellites for multiple purposes and across orbits. Shares • Treatt Plc 2.2 declined during the quarter following the loss of the Vega VV17 • Graham Corp. 2.1 in November, which carried two satellite payloads. However, despite this anomaly, Avio remains an integral part of the • HC2 Holdings Inc. 1.9 design, production and integration of components particularly for European Space Agency-sponsored programs, including *Percent of net assets as of December 31, 2020. Vega and Ariane. Avio stands to benefit from the secular growth in satellite infrastructure and high barriers to entry.

LET’S TALK STOCKS

The following are stock specifics on selected holdings of our Fund. Favorable earnings prospects do not necessarily translate into higher stock prices, but they do express a positive trend that we believe will develop over time. Individual securities mentioned are not necessarily representative of the entire portfolio. For the following holdings, the percentage of net assets and their share prices stated in U.S. dollar equivalent terms are presented as of December 31, 2020.

Full House Resorts (0.5% of net assets as if December 31, 2020) (FLL – $3.93 – NASDAQ) is the Las Vegas-based operator of five casino facilities in Mississippi, Indiana, Nevada, and Colorado. Since taking over management of the company in November of 2014 CEO Dan Lee and his team have embarked on multiple value-creating initiatives that have grown the business, reduced costs and enhanced the financial profile of the business. Management was well underway to implementing operational improvements plans when COVID-19 shutdown all of its casinos. Management used the opportunity to completely restructure the company’s cost structure, driving significant margin expansion. Moreover, the company is in position to generate a significant increase in EBITDA by licensing out its sports betting licenses in Indiana and Colorado, putting the company in position to refund its debt and grow via potential new development projects in Colorado and Illinois.

Smart Eye AB (0.6%) (SEYE – $26.37/SEK 217.00 – Stockholm Stock Exchange), headquartered in Sweden, develops technology and solutions which can measure and calculate a person’s gaze. The company operates two segments – Research Instruments, which develops advanced eye-tracking systems to analyse and measure human behaviour for various end use cases and research. The second segment, Automotive Solutions, sells eye-tracking software to car OEMs, which help in driver management systems, driver safety, and fatigue. The company is developing a new segment called Applied AI Systems, which focuses on automotive aftermarket products. In 2020, the company continued with several design wins, including a new OEM in China, and multiple wins with existing 6 OEM customers in America, Europe and Korea. We expect further commercial progress in 2021 in Automotive Solutions and the other two segments, which had seen sub-optimal market conditions due to COVID-19.

STRATTEC Security Corp. (1.9%) (STRT - $49.36 - NASDAQ) is one of the world’s largest manufacturers of automotive access and electronic security equipment. A well run original equipment supplier, the company has significant net cash on its balance sheet and is well positioned as automotive production recovers post-COVID-19. Additionally, the company has a nascent suite of biometric solutions that are applicable to industries beyond automotive.

31 THE GABELLI GROWTH FUND Fund in Focus

PORTFOLIO MANAGEMENT TEAM: Howard F. Ward, CFA, Christopher D. Ward, CFA

PORTFOLIO OBSERVATIONS

During the quarter, we continued to focus on beneficiaries of accelerated PORTFOLIO HIGHLIGHTS digital transformation across a few key dimensions. First, we believe we are now at a point where the first-order beneficiaries of this digital acceleration Total Net Assets: $994 Million are well understood, but second-order beneficiaries are less appreciated. NAV (Class I): $88.48 In other words, as the economy reopens, IT budgets recover, what new Turnover: (a) 38% projects will Chief Information Officers pursue? Second, we are looking for businesses in emerging categories whose long-term competitive positioning Inception Date: 4/10/87 has improved as a result of accelerated digital transformation. Within that Net Expense Ratio: (b) 1.13% context, we added two new enterprise software names: Datadog (0.5% of net (a) For the six months ended June 30, 2020. assets as of December 31, 2020) and Snowflake (0.5%). (b) As of June 30, 2020. Datadog is a leader in observability. The company provides developers a holistic view of their IT stack so they can optimize infrastructure and application performance. Over the most recent quarters, Datadog customers (c) have been conserving cash by rationalizing their cloud footprints. We view SHARE CLASS SYMBOL this as transitory and believe Datadog will be a net beneficiary of accelerated cloud migration. Class AAA: GABGX Class A: GGCAX We also added Snowflake, a company that has become synonymous with the emerging cloud data warehouse category. Data warehousing was historically Class I: GGCIX a very complex and expensive endeavor, but Snowflake is dramatically (c) Another class of shares is available. expanding the market via ease of use and the elasticity of the cloud. The company is also pioneering cloud data sharing, which we believe will be a source of network effects. It is our view that industry estimates for the data warehouse category do not fully capture the market expansive nature of Snowflake.

We bought AMD (0.9%) and Analog Devices (1.0%). AMD designs x86 microprocessors and GPUs, and is benefiting from a combination of robust end market demand and share gains from Intel. Analog Devices is a leading player in high performance analog with exposure

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) Since Inception Gabelli Growth Fund QTR 1 Year 3 Year 5 Year 10 Year (4/10/87) Class I (GGCIX) 10.46% 39.48% 24.19% 20.71% 16.15% 11.50% S&P 500 Index 12.15 18.40 14.18 15.22 13.88 10.29 (c) Russell 1000 Growth Index 11.39 38.49 22.99 21.00 17.21 10.71 (c)

In the current prospectuses dated April 30, 2020, the expense ratio for Class I Shares is 1.13%. Class I Shares do not have a sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. The Class AAA Share NAVs are used to calculate performance for the period prior to the issuance of Class I Shares on January 11, 2008. The actual performance of the Class I Shares would have been higher due to lower expenses related to this class of shares. The S&P 500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market. The Russell 1000 Growth Index measures the performance of the large cap growth segment of the U.S. equity market. Dividends are considered reinvested. You cannot invest directly in an index. (b) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI. (c) S&P 500 Index and Russell 1000 Growth Index since inception performance results are as of March 31, 1987.

32 THE GABELLI GROWTH FUND

to attractive secular growth areas, such as factory automation, industrial 4.0, 5G and electric vehicles. SELECTED HOLDINGS*

We added three companies outside of technology: Morgan Stanley (1.7%), • Apple Inc. 9.8% NextEra Energy Partners (0.4%) and Parker-Hannifin (0.7%). With the • Microsoft Corp. 9.3 pending acquisition of Eaton Vance, Morgan Stanley will approach 60% of • Amazon.com Inc. 7.4 total revenue derived from capital-light asset and wealth management, which should ultimately improve their return on equity. NextEra Energy Partners is • ServiceNow Inc. 4.0 a yieldco with a financial sponsor in NextEra Energy. Similar to a master • Facebook Inc. 4.0 limited partnership (MLP), the yieldco’s own energy infrastructure with long- term contracts provides stable cash flows. NextEra Energy Partners has the • NVIDIA Corp. 3.5 largest renewable market share in the U.S. Lastly, we bought Parker Hannifin, • Adobe Inc. 3.1 a diversified industrial and aerospace company with a margin improvement • Alphabet Inc. 3.0 initiative that should command a higher multiple. • Mastercard Inc. 3.0 We sold our two tower companies, American Tower and Crown Castle. • Qualcomm Inc. 3.0 Towers continue to display favorable fundamentals, including high barriers to entry, long-term contracts, high incremental margins and growing demand *Percent of net assets as of December 31, 2020. for mobile data. Ultimately, however, being structured as REITs, these names are very rate sensitive and underperform in cyclically-driven markets. We will be revisiting these names on a regular basis as the 5G buildout ramps through 2021 and into 2022.

Our top contributors to performance for the quarter (based upon price change and position size) were Cloudflare (1.7%) , CrowdStrike (1.9%) , Disney (1.7%), Morgan Stanley (1.7%) , ASML (1.1%), Lam Research (0.9%), Take-Two Interactive (1.6%), Applied Materials (1.0%), KLA Corporation (0.9%) and BlackRock (1.1%). Our biggest detractors were Apple (9.8%) (by nature of being underweight relative to the index), AMD, Crown Castle, NVIDIA (3.5%), American Tower, Datadog (0.5%), Cummins, Snowflake and Activision Blizzard (0.7%).

LET’S TALK STOCKS

The following are stock specifics on selected holdings of our Fund. Favorable earnings prospects do not necessarily translate into higher stock prices, but they do express a positive trend that we believe will develop over time. Individual securities mentioned are not necessarily representative of the entire portfolio. For the following holdings, the percentages of net assets, and their share prices are stated as of December 31, 2020.

Cloudflare (1.7% of net assets as of December 31,2020) (NET – $75.99 – NYSE) played two critical roles in 2020: the company provided internet reliability during the work-from-home transition and cyber security during the election. The pace of paid customer growth is accelerating as organizations rearchitect their IT stack as the attack surface has broadened with remote workers.

CrowdStrike (1.9%) (CRWD – $211.82 – NASDAQ) has seen accelerating adoption as endpoint security remains a growing priority to protect remote workforces. In response to its high profile security breach, SolarWinds turned to CrowdStrike’s Falcon Endpoint Protection to ensure its internal systems were secure.

Microsoft’s (9.3%) (MSFT – $222.42 – NASDAQ) cloud and gaming products are benefiting from “work-learn-play” from home. Azure continues to benefit from Microsoft’s existing customer relationships and distribution channel. Microsoft’s collaboration platform, Teams, has seen rapid adoption serving as connective tissue for remote employees.

NVIDIA (3.5%) (NVDA – $522.20 – NASDAQ) is benefiting from a new product cycle (Ampere) and increasing demand for AI workloads. The recent surge in video gaming has driven better than expected demand for NVIDIA’s gaming cards. The pending acquisition of ARM Holdings presents exciting opportunity for NVIDIA to integrate some of their IP into ARM’s architecture.

ServiceNow’s (4.0%) (NOW – $550.43 – NASDAQ) platform only became more relevant through 2020 as workflow automation became a centerpiece of digital transformation initiatives. ServiceNow’s business model proved its durability during 2020, driven by high revenue visibility, best-in-class retention rates and less economically sensitive large enterprise customers.

33 THE GABELLI GLOBAL GROWTH FUND GAMCO Global Series Funds, Inc.

PORTFOLIO MANAGEMENT TEAM: Caesar M. P. Bryan, Howard F. Ward, CFA, Christopher D. Ward, CFA

PORTFOLIO OBSERVATIONS

During the quarter, we continued to focus on beneficiaries of accelerated PORTFOLIO HIGHLIGHTS digital transformation across a few key dimensions. First, we believe we are now at a point where the first-order beneficiaries of this digital Total Net Assets: $193 Million acceleration are well understood, but second-order beneficiaries are less NAV (Class I): $48.23 appreciated. In other words, as the economy reopens and IT budgets (a) recover, what new projects will Chief Information Officers pursue? Second, Turnover: 30% we are looking for businesses in emerging categories whose long-term Inception Date: 2/7/94 competitive positioning has improved as a result of accelerated digital Net Expense Ratio: (b) 0.90% transformation. Within that context, we added three new enterprise (a) For the six months ended June 30, 2020. software names: Cloudflare (1.4% of net assets as of December 31, 2020), (b) As of June 30, 2020. CrowdStrike (1.8%) and Datadog (0.3%).

Cloudflare is a cloud network security platform. We believe work- from-home has acted as a catalyst for organizations to rearchitect SHARE CLASS (c) SYMBOL their networks from the legacy “castle-and-moat” model to the cloud. Cloudflare’s edge network is also uniquely suited to serve edge computing Class AAA: GICPX use cases, providing interesting optionality. CrowdStrike is a cloud native Class A: GGGAX endpoint security platform. Today’s distributed workforce has broadened the attack surface and endpoint security remains a top priority for IT Class I: GGGIX budgets. SolarWinds, in response to its high profile security breach, (c) Another class of shares is available. turned to CrowdStrike’s Falcon platform to ensure its internal systems were secure. Datadog is a leader in observability by providing developers a holistic view of their IT stack. In response to the pandemic, Datadog customers have been conserving cash by rationalizing their cloud footprints. We view this as transitory and believe Datadog will be a net beneficiary of accelerated cloud migration.

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) Since Inception Gabelli Global Growth Fund QTR 1 Year 3 Year 5 Year 10 Year 15 Year (2/7/94) Class I (GGGIX) 10.18% 35.39% 20.09% 18.05% 13.31% 10.12% 10.40% MSCI AC World Index 14.68 16.25 10.06 12.26 9.13 7.20 7.37 (c) Lipper Global Large-Cap 13.38 27.59 16.03 15.43 11.31 8.64 6.14 Growth Fund Classification In the current prospectuses dated April 30, 2020, the gross expense ratio for Class I Shares is 1.38%, and the net expense ratio after contractual reimburse- ments by Gabelli Funds, LLC, (the “Adviser”) is 0.90%. The contractual reimbursements are in effect through April 30, 2021. Class I Shares do not have a sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. Returns would have been lower had the Adviser not reimbursed certain expenses. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. Investing in foreign securities involves risks not ordinarily associated with investments in domestic issues, including currency fluctuation, economic, and political risks. The Class AAA Share NAVs are used to calculate performance for the period prior to the issuance of Class I Shares on January 11, 2008. The actual performance of Class I Shares would have been higher due to lower expenses related to this class of shares. The MSCI AC World Index is an unmanaged market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI AC World Index consists of 45 country indices comprising 24 developed and 21 emerging market country indices. The Lipper Global Large-Cap Growth Fund Classification reflects the performance of mutual funds classified in this particular category. Dividends are considered reinvested. You cannot invest directly in an index. (b) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI (c) MSCI AC World Index since inception performance is as of January 31, 1994.

34 THE GABELLI GLOBAL GROWTH FUND

In industrial technology, we bought Lasertec (0.5%), a Japanese designer of photomask inspection systems (used in semiconductor SELECTED HOLDINGS* manufacturing) and ultra-high resolution scanning laser microscopes and liquid crystal display (LCD) inspection systems. We bought Murata • Microsoft Corp. 4.8% (0.8%), a Japanese designer of communication modules, capacitators, • Amazon.com Inc. 4.5% sensors and other products used in applications such as factory • Apple Inc. 3.9% automation. And we also bought Nidec (1.0%), a Japanese designer of small precision electric motors. Motors are used in optical disk drives, • Keyence Corp. 3.8% HDD, appliances and automotive devices. • Adyen NV 3.2% • ASML Holdings NV 3.1% In medical technology, we bought Medtronic (1.2%), as we believe the • Thermo Fisher Scientific Inc. 2.9% company is positioned well as the medical device market continues to recover. We also bought M3, a Japanese internet healthcare company • Puma SE 2.7% that helps pharmaceutical companies, doctors and patients access • NVIDIA Corp. 2.6% information online. • Netflix Corp. 2.5% We added two companies outside of technology: Morgan Stanley (1.6%) *Percent of net assets as of December 31, 2020. and NextEra Energy Partners (0.7%). With the pending acquisition of Eaton Vance, Morgan Stanley will approach 60% of total revenue derived from capital-light asset and wealth management, which should ultimately improve their return on equity. NextEra Energy Partners is a yieldco with a financial sponsor in NextEra Energy. Similar to a Master Limited Partnership (MLP), the yieldco’s own energy infrastructure with long-term contracts provides stable cash flows. NextEra Energy Partners has the largest renewable market share in the U.S.

We sold Activision Blizzard, Nestlé, Novo Nordisk, Roper, SMC and Tokyo Electron.

Our top contributors to performance for the quarter (based upon price change and position size) were CrowdStrike (1.8%), ASML (3.1%), Adyen, Cloudflare (1.4%), Lam Research (1.1%), PUMA (2.7%), Atlassian (1.7%), LVMH (1.4%), Qualcomm and Keyence (3.8%. Our top detractors were Alibaba (1.4), NVIDIA (2.6%), Tencent (2.5%), Facebook (2.4%), Amazon (4.5%), Thermo Fisher (2.9%), Home Depot (1.3%), American Tower (0.8%), Microsoft (4.8%) and Crown Castle (0.9%).

LET’S TALK STOCKS The following are stock specifics on selected holdings of our Fund. Favorable earnings prospects do not necessarily translate into higher stock prices, but they do express a positive trend that we believe will develop over time. Individual securities mentioned are not necessarily representative of the entire portfolio. For the following holdings, the percentage of net assets and their share prices stated in U.S. dollar equivalent terms are presented as of December 31, 2020.

Adyen (3.2% of net assets as of December 31, 2020) (ADYEN – $1,901.97/€1,859.00 – Amsterdam Stock Exchange) operates a global payments platform that integrates the full payments stack – gateway, risk management, processing, acquiring and settlement – into a single integrated platform. Cash-to-card conversion tailwinds (e-commerce, omnichannel) have accelerated, and Adyen views this as a sustainable trend.

ASML (3.1%) (ASML – $487.72 – NASDAQ) is the sole manufacturer of extreme ultraviolet (EUV) lithography machines. EUV is the key unlock to the continuation of Moore’s Law (transistor density), and the adoption of EUV is just beginning. The semiconductor equipment industry can be considered the arms dealers for digital transformation.

Tencent Holdings’ (2.5%) (700HK – $71.95/HKD 557.82 – Hong Kong Stock Exchange) gaming, social network, digital advertising and fintech businesses continue to benefit from pandemic-induced digital acceleration. We view Tencent’s diversified internet verticals as less vulnerable to regulatory risk.

Atlassian Corp.’s (1.7%) (TEAM – $233.87 – NASDAQ) collaboration tools are the de facto standard for software developers. Atlassian recently decided to accelerate the transition to its cloud products by discontinuing new sales of its on-premise server licenses. Despite the near-term revenue headwind, history is rife with examples of cloud transitions resulting in better unit economics and lifetime value.

35 GABELLI INTERNATIONAL GROWTH FUND INC.

PORTFOLIO MANAGEMENT: Caesar M. P. Bryan

INVESTMENT SCORECARD

Four of the Fund’s top six contributors to performance for the fourth quarter PORTFOLIO HIGHLIGHTS were consumer discretionary companies. These were Christian Dior (4% of net assets as of December 31, 2020), Fast Retailing (2%), Richemont (2%) Total Net Assets: $26 Million and Hermès (3%). Rounding out the top performers were Keyence (6%) and Murata Manufacturing (2%), two Japanese manufacturing companies. NAV (Class I): $27.31 Dior, Hermès and Richemont are European-based luxury goods retailers Turnover: (a) 2% which should benefit from a resumption of travel following the COVID-19 lockdowns. Meanwhile they have been investing in internet-based channels Inception Date: 6/30/95 of distribution. On an absolute basis, the top performing stock was M3, Net Expense Ratio: (b) 1.02% which appreciated by 53%. M3 is a Japanese-based company which offers a number of internet-based services to the Japanese health care sector. The (a) For the six months ended June 30, 2020. government has singled out the health sector for reform in an attempt to (b) As of June 30, 2020. improve efficiencies and the quality of service.

Our two gold holdings, Barrick Resources (2%) and Agnico Eagle (2%), gave SHARE CLASS (c) SYMBOL up some of their big gains from earlier in the year and declined by 19% and 11%, respectively. Otherwise some of our consumer staple companies, such as Nestlé and Reckitt Benckiser, lagged. Class AAA: GIGRX Class A: GAIGX We initiated two new positions during the quarter. They were Gerresheimer and Class I: GIIGX STMicroelectronics (STM). Gerresheimer is a German company that supplies the global Pharma and Health Care Industry with glass and plastic products (c) Another class of shares is available. such as syringes and inhalers. STM is a leading semiconductor manufacturing company which should benefit from key trends such as smart mobility, power and energy and the internet of things, including 5G. The company expects revenues in excess of $11B this year and spends 16% of revenues on Research and Development. The Fund increased

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) Since Inception Gabelli International Growth Fund QTR 1 Year 5 Year 10 Year 15 Year 20 Year (6/30/95) Class I (GIIGX) 12.78% 18.81% 11.36% 6.68% 6.05% 5.26% 7.28% MSCI EAFE Index 16.09 8.28 7.97 6.00 7.20 4.96 5.68 Lipper International Large-Cap Growth Fund Classification 14.59 21.21 10.50 6.65 5.97 5.75 7.28 (c) Lipper International Multi-Cap Growth Fund Classification 15.10 20.12 10.52 6.86 5.46 5.17 6.43 In the current prospectuses dated April 30, 2020, the gross expense ratio for Class I Shares is 2.19%, and the net expense ratio after contractual reimburse- ments by Gabelli Funds, LLC, (the “Adviser”) is 1.02%. The contractual reimbursement for Class I Shares is in effect through April 30, 2021. Class I Shares do not have a sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. Returns for Class I Shares would have been lower had the Adviser not reimbursed certain expenses. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. Investing in foreign securities involves risks not ordinarily associated with investments in domestic issues, including currency fluctuation, economic, and political risks. The Class AAA Share NAVs are used to calculate performance for the periods prior to the issuance of Class A Shares, Class C Shares, and Class I Shares on July 25, 2001, December 17, 2000, and January 11, 2008, respectively. The actual performance of the Class A Shares and Class C Shares would have been lower due to the additional fees and expenses associated with these classes of shares. The actual performance of the Class I Shares would have been higher due to lower expenses related to this class of shares. The MSCI EAFE Index is an unmanaged indicator of international stock market performance, while the Lipper International Large-Cap Growth Fund Classification and the Lipper International Multi-Cap Growth Fund Classification reflect the average performance of mutual funds classified in these particular categories. Dividends are considered reinvested. You cannot invest directly in an index. (b) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI. (c) Lipper International Large-Cap Growth Fund Average since inception performance is as of March 31, 1999.

36 GABELLI INTERNATIONAL GROWTH FUND INC.

its position in a number of companies, including Adidas, Boohoo, Edenred, SELECTED HOLDINGS* Entain, Philips, SoftwareONE, and Ubisoft. We sold three holdings. These were Sage Group, British American Industries and Alibaba. • Keyence Corp. 5.9% • Nestlé SA 3.8 LET’S TALK STOCKS • Christian Dior SE 3.8 The following are stock specifics on selected holdings of our Fund. Favorable • SMC Corp. 3.5 earnings prospects do not necessarily translate into higher stock prices, but • L’Oreal SA 3.3 they do express a positive trend that we believe will develop over time. • Hermès International 2.9 Individual securities mentioned are not necessarily representative of the entire portfolio. For the following holdings, the percentage of net assets and • Roche Holding AG 2.9 their share prices stated in U.S. dollar equivalent terms are presented as of • Novartis AG 2.6 December 31, 2020. • Naspers AG 2.5 Entain plc (1.1% of net assets as of December 31, 2020) (ENT LN - $15.51/£11.34– • Fast Retailing Co. 2.4 London Stock Exchange), based in London, U.K., and formerly known as GVC • Murata Manufacturing Co. 2.3 Holdings, is a global online-led sports-betting and gaming operator. Entain owns a comprehensive portfolio of established betting and gaming brands *Percent of net assets as of December 31, 2020. including bwin and Ladbrokes, as well as the proprietary technology across all of its core product verticals. Its BetMGM 50/50 joint venture with MGM Resorts International currently has access to 20 U.S. states where sports betting and/or iGaming regulations have been, or are being, enacted, representing approximately 51% of the eligible U.S. population. While the U.S. is the most visible and immediate growth opportunity, Entain recognises there are 50 other regulated or regulating markets across the world with a potential $45B of online gross gaming revenues where it will also seek expansion through either organic or bolt-on M&A. On January 4, 2021, the Board of Entain announced it had been in discussions with MGM Resorts over a possible all stock proposal at an exchange ratio of 0.6x for the Company. However, on January 19th, MGM formally withdrew its interest. We believe that negotiations may more constructive in at least six months to a year, when MGM may find itself in a better position to offer a cash consideration and higher bid.

Gerresheimer AG (0.7%) (GXI – $107.84/€88.27 – Frankfurt Stock Exchange), headquartered in Dusseldorf, Germany is a global specialty glass and plastics manufacturer to the pharma, healthcare, cosmetics and food & beverages industry. Their products are used for packaging customer products as well as injectables for delivering and administrating medicine. With innovation and demand-driven tailwinds, the company aims to accelerate profitable growth via organic means and selective acquisitions from mid-single to high single digits over the medium term.

Nordic Entertainment Group (0.8%) (NENTB SS – $55.95/SEK 460.37 – Stockholm Stock Exchange) is a Swedish based broadcasting and entertainment company that serves the Nordic region, with Sweden representing about 40% of revenues. The company, which was spun out of Modern Times Group in March 2019 , offers advertising supported television and radio channels as well as streaming services that are paid for by subscription. The company is also the leading content creation, production and distribution business focused on multiple genres in the Nordic region. The major growth driver is Viaplay, their streaming business which is the leading streaming offering in the Nordic region. Viaplay’s competitive advantage is the superior sports offering and locally sourced content. It is estimated that Viaplay ended 2020 with 3.0 million subscribers, compared with 2.3 million at the end of 2019. The company forecasts Nordic subscribers to grow to 6.0 million by the end of 2025 with an EBIT margin of 15%. Further, the company will offer Viaplay outside the Nordic region and expects to have 4.5 million subscribers by the end of 2025 for a total of 10.5 million. Advertising revenues have been adversely affected by the COVID-19 pandemic, but should experience some recovery later this year.

Sony Corp. (2.1%) (6758 JP – $100.78/JPY 10,404 – Tokyo) is a conglomerate based in Tokyo, Japan focusing on direct-to-consumer entertainment products supported by the company’s technology. Sony is the #1 integrated global gaming company and we expect the gaming segment to contribute nearly half of EBITDA (ex-financial) in 2020 following the much anticipated launch of the PlayStation 5, in the 2020 holiday season. Sony Music Recording commands #2 and Music Publishing #1 global share and is a hidden asset as music values have increased with the success of streaming. Sony also operates the Sony/Columbia film studio, which is well positioned in the OTT streaming wars as a major supplier of high quality library shows like Seinfeld. Sony is an image sensor leader with over 50% global revenue share. We expect strong 5G iPhone 12 upgrade cycle will benefit Sony as the sole supplier of iPhone’s image sensors. Sony’s Electronics business remains a globally diversified and defensive cash cow, e.g. robust TV sales even during COVID-19 pandemic. Sony has net cash on its balance sheet enables the company to manage through COVID-19 and increase its dividend return and introduce another major stock buy back. Online game usage has increased dramatically with stay-at-home restrictions, but business such as movies are impacted by stopped production and delayed releases.

37 THE GABELLI INTERNATIONAL SMALL CAP FUND GAMCO Global Series Funds, Inc.

PORTFOLIO MANAGEMENT: Caesar M. P. Bryan

INVESTMENT SCORECARD

MedPeer (2% of net assets as of December 31, 2020) and Nynomic (1%) PORTFOLIO HIGHLIGHTS were the top two contributors to performance for the quarter. MedPeer is a Japan-based company that provides internet services to the health care Total Net Assets: $11 Million industry. The company divides its activities into three segments: Collective NAV (Class I): $15.85 Intelligence Platform, Primary Care Platform and Preventative Healthcare (a) Platform. Their services provide pharmaceutical companies access to doctors, Turnover: 7% link doctors to patients and pharmacies, as well as a market place assisting Inception Date: 5/11/98 medical professionals with employment opportunities. MedPeer’s share price (b) appreciated by 71% for the quarter. Nynomic is a German-based company Net Expense Ratio: 0.91% which manufactures photonics sensors used in optical measurement (a) For the six months ended June 30, 2020. products. Their sensors are used in three segments; Life Sciences, Green Tech (b) As of June 30, 2020. and Clean Tech, and the company’s share price rose by 64% in the quarter. Other major contributors to performance were Nordic Entertainment (1%), Polar Capital (1%) and Brewin Dolphin (2%). In absolute terms, our top SHARE CLASS (c) SYMBOL performer was Signature Aviation (1%) which appreciated by 71% for the quarter. Since the year end, Signature has been approached by a number of Class AAA: GABOX parties interested in acquiring the company. Class A: GOCAX The two largest detractors to performance were both Japanese holdings, Class I: GLOIX Jins (1%) and Raccoon (0.6%), which declined by 16% and 27%, respectively. Jins is an innovative eyeglass retailer whose average sales price is below (c) Another class of shares is available. that of its major competitors. The company is developing the market for

COMPARATIVE RESULTS Average Annual Returns through December 31, 2020 (a) (b)

Since Inception Gabelli International Small Cap Fund QTR 1 Year 5 Year 10 Year 15 Year (5/11/98) Class I (GLOIX) 13.52% 19.11% 9.23% 6.91% 6.20% 7.15% MSCI EAFE Small Cap Index 17.27 12.34 9.40 7.85 6.14 8.33 (c) MSCI AC World Index 14.68 16.25 12.26 9.13 7.20 6.02 (d) Lipper Global Large-Cap Growth Fund Classification 13.38 27.59 15.43 11.31 8.64 7.60 Lipper Global Multi-Cap Growth Fund Classification 15.79 33.26 15.36 11.60 8.57 9.23 In the current prospectuses dated April 30, 2020, the gross expense ratio for Class I Shares is 3.17%, and the net expense ratio after contractual reimbursements by Gabelli Funds, LLC, (the “Adviser”) is 0.91%. The contractual reimbursements are in effect through April 30, 2021. Class I Shares do not have a sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. Returns would have been lower had the Adviser not reimbursed certain expenses of the Fund. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. Investing in foreign securities involves risks not ordinarily associated with investments in domestic issues, including currency fluctuation, economic, and political risks. The Class AAA Share NAVs per share are used to calculate performance for the period prior to the issuance of Class I Shares on January 11, 2008. The actual performance of the Class I Shares would have been higher due to lower expenses related to this class of shares. The MSCI AC World Index is an unmanaged market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI EAFE Small Cap Index has 2,304 constituents and captives small cap representation across Development Markets countries around the world, excluding U.S. and Canada. The MSCI AC World Index consists of 45 country indices comprising 24 developed and 21 emerging market country indices. The Lipper Global Large-Cap Growth Fund Classification and the Lipper Global Multi-Cap Growth Fund Classification reflect the average performance of mutual funds classified in those particular categories. Dividends are considered reinvested. You cannot invest directly in an index. (b) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI. (c) MSCI EAFE Small Cap Index performance as of inception of Index December 31, 1998. (d) MSCI AC World Index since inception performance is as of April 30, 1994.

38 THE GABELLI INTERNATIONAL SMALL CAP FUND

non-prescription eyeglasses, such as glasses to the blue light emitted from PCs and smartphones. The company will benefit from the opening up of SELECTED HOLDINGS* the economy. Raccoon operates an online retail platform business matching manufacturers and retailers and gave up some of its strong share price gains • Bachem Holding AG 2.4% from earlier in the year. Otherwise, the Fund’s precious metals holdings • MedPeer Inc. 2.4 declined even though the gold price appreciated modestly. These included Centamin (1.3%), B2Gold (0.3%) and Pretium Resources (0.7%) which fell by • AddLife AB 2.2 35.4%, 23.8% and 10.6% respectively. • Nordic Entertainment Group AB 2.1 During the quarter, the Fund established seven new positions. They were • GMO Internet Inc. 1.9 Bengo4.com (0.9%) and Raccoon Holdings (0.6%) in Japan, and small • Brewin Dolphin Holdings Plc 1.7 positions in three gold producing companies. Otherwise, the Fund purchased Nomad Foods (0.7%) which manufactures and distributes frozen food in • Laurent-Perrier 1.7 Europe and QleanAir Holding (0.6%), a Swedish-based manufacturer of air • Zojirushi Corp. 1.6 purification products. The Fund exited Hochschild Mining, HT&E Ltd, Kirkland Lake Gold, Oceana Gold, Philip Morris CR, RPA Holdings and William Hill plc. • Glanbia Plc 1.6 *Percent of net assets as of December 31, 2020. LET’S TALK STOCKS

The following are stock specifics on selected holdings of our Fund. Favorable earnings prospects do not necessarily translate into higher stock prices, but they do express a positive trend that we believe will develop over time. Individual securities mentioned are not necessarily representative of the entire portfolio. For the following holdings, the percentage of net assets and their share prices stated in U.S. dollar equivalent terms are presented as of December 31, 2020.

AddLife AB (2.2% of net assets as of December 31, 2020) (ALIFB – $17.50/SEK 144.00 – Stockholm Stock Exchange), headquartered in Stockholm, Sweden, is a medical instruments, technology and solutions/services provider operating in 25 countries in Europe. The company sells its own and third party products for diagnostics, biomedical research and analysis to research labs, universities, pharma and food companies. They also sell products and solutions to hospitals and care facilities. The company operates via a number of subsidiaries who have good local market knowledge. The company has seen huge demand in 2020 on the back of COVID-19, especially for critical products to health services and diagnostic laboratories. With strong cash generation, we expect AddLife to continue to expand organically and via M&A over the medium-term.

Drägerwerk AG (1.0%) (DRW3 – $77.40/EUR 63.36 – ETR), headquartered in Lübeck, Germany, is an international leader in medical and safety technology. Amongst its wide ranging products portfolio, Dräger is the market leader in Europe and #2 worldwide for newborn incubators and self-contained breathing apparatuses for fire fighters. As the market leader in Europe for emergency and transport, neonatal and intensive care ventilators, Dräger has seen strong demand for its medical devices throughout the course of the coronavirus pandemic.

Maruwa Unyu Kikan (1.5%) (9090 – $21.34/JPY 2,203 – Tokyo Stock Exchange) is a third-party logistics company and ‘last mile’ trucking operator. It runs Amazon Japan’s same-day delivery network in the greater Tokyo area. The current surge in e-commerce, due to COVID-19 restrictions, has increased demand for Maruwa’s services, but the trend to faster delivery was already well underway. Larger trucking companies, including Yamato (9064) and Nippon Express (9062), have been unable to meet this demand because of poorly adapted infrastructure (large trucks, ill-placed depots, driver shortage). Maruwa has been a pioneer in third-party logistics, doing nationwide inventory control and distribution for drugstore chain Matsumoto Kiyoshi (3088) and for the fresh produce division of supermarket Ito- Yokado (3382). Demand for third-party logistics is likely to grow as IoT becomes more complex and retailers put their focus on marketing.

Nynomic AG (1.2%) (M7U – $44.59/EUR 36.50 – ETR), based in Wedel, Germany, manufactures products for non-contact and non- destructive optimal metrology. Its products are based on intelligent sensors for measuring optical radiation and smart technologies for data acquisition, processing, and evaluation. Nynomic’s customer focus is orientated towards the life sciences, with an emphasis on laboratory automation and medical technology; green tech, with applications in agriculture and environmental technology, and; clean tech, with application fields throughout the industrial sector. Despite a volatile and uncertain economic environment, Nynomic delivered a strong performance throughout 2020 with robust sales led by its life sciences portfolio.

Sakata Seed (1.3%) (1377 – $34.70/JPY 3,580 – Tokyo Stock Exchange) was founded in 1913 and is now Japan’s leading supplier of commercial vegetable seeds, with a strong presence in flower seeds as well. With production or sales offices in 18 countries, Sakata is a global supplier, and overseas sales now account for 60% of the total. Sakata has the #1 position in broccoli seeds globally, and strong positions in squash, tomatoes, and onions. The company is well known for its R&D, which focuses on customizing seeds to thrive in difficult environments. Future growth areas include landscaping (garden design, implementation, and maintenance) for municipal and private projects, which would create a source of stable cash flow.

39 THE GABELLI U.S. TREASURY MONEY MARKET FUND

PORTFOLIO MANAGEMENT: Judith A. Raneri, Ronald S. Eaker

SHAREHOLDER COMMENTARY

When 2020 began, no one predicted the extraordinary occurrences that PORTFOLIO HIGHLIGHTS would shape a year like no other. The rapid spread of COVID-19 and the Total Net Assets: $2.4 Billion government-mandated measures taken to contain it, triggered a deep NAV (Class AAA): $1.00 economic downturn in the first half of the year. As financial markets Inception Date: 10/1/92 stumbled in response to the threat posed by the pandemic, the Federal Net Expense Ratio: 0.08% Reserve stepped in with aggressive, unprecedented policy actions to help stabilize a tumultuous economy while also trying to keep the financial system functioning and in that manner limit the economic damage. SHARE CLASS SYMBOL

Class AAA: GABXX During the early stage of the covid shock, financial market stress rose Class A: GBAXX dramatically. Massive demand for liquidity due to uncertainty, fear, and Class C: GBCXX the need for cash created noticeable strains in the short-term markets, specifically the U.S. Treasury Market, which is critical to the financial system’s overall functioning. Trading conditions in Treasuries showed severe tension and illiquidity, which lead to considerable price volatility. Aside from flight to quality trades impacting the longer end of the curve; evidenced by the drop in the 10-year yield plunging over 80bps from 1.34% to a record low of 0.51 bps; the depth decline was most notable in the 3-month and shorter Treasury bills, which declined from over 1.25% at the end of February to mostly negative rates toward the end of March. Additionally, overnight repurchase agreement levels shot up considerably, causing banks to scramble for cash.

Based on this landscape, uncertainty plagued the markets even further, prompting businesses, households, and governments to turn to Government Money Market funds as a liquidity vehicle of choice. Investors poured $834 billion into these funds in March alone. Simultaneously, institutional prime and municipal money market funds faced large redemptions, losing approximately $96 billion in assets during the same period. The run on prime funds caused fund managers to hoard liquidity and refrain from investing in longer-term maturities, adding pressure to other sectors of the market, at which point the entire financial system became overwhelmed with liquidity concerns. Given the notable role of Treasuries have in the short-term funding markets and the shadow banking system, the Federal Reserve took aggressive, unique actions to restore market liquidity and preserve Treasury Securities special role. The Fed’s initial response was slashing the Federal Funds Rate to 0% - .25%, making borrowing costs low. The Committee then ramped up its purchases of Treasury and mortgage-backed securities—buying approximately $1.7 trillion worth between mid-March and the end of June. They then expanded their repo operations, essentially providing unlimited amounts of cash in short-term loans to dealers. While also temporarily easing a key capital measure for large banks to grant more loans to distressed consumers and businesses. In addition to these efforts to shore up the Treasury Market, the Fed established 11 special lending facilities, which provided up to $2.3 trillion in loans to support the economy. One specifically

40 THE GABELLI U.S. TREASURY MONEY MARKET FUND

geared to aid Money Market Funds referred to as the Money Market Mutual Fund Liquidity Facility (MMLF). This provision, facilitated the sales of securities, helped MMFs meet redemptions in an environment in which secondary market liquidity was strained, while also reassured investors that funds will be able to meet redemptions in the future, which decreased their need to withdraw prematurely.

The liquidity problem, which flared up in the early stages of the pandemic, improved considerably due to the Federal Reserve’s timely intervention, which strengthened key markets to run smoothly and limited the permanent damage the pandemic, would have on the economy. Treasuries once again were pricing in line, and market operations were restored to some semblance of normalcy. Market depth started to recover, and repurchase agreement levels fell back in line with the federal funds rate, (Fed’s key short-term rate target). The Fed’s relief to Treasury markets, in combination with the onset of the emergency lending facilities, helped keep the financial system functioning to meet the needs of the economy and, in so doing, set the stage for economic recovery once the Coronavirus pandemic subsides.

41 THE GABELLI UTILITIES FUND

PORTFOLIO MANAGEMENT TEAM: Mario J. Gabelli, CFA, Timothy M. Winter, CFA, Jose Garza

STRATEGY OVERVIEW

The Gabelli Utilities Fund is a diversified Fund whose investment objectives are PORTFOLIO HIGHLIGHTS long term growth of capital and income. The Fund invests in companies that provide products, services, or equipment for the generation or distribution of electricity, gas and water. Additionally, the Fund will invest in companies in Total Net Assets: $1.9 Billion telecommunications services or infrastructure services. NAV (Class I): $8.15 INVESTMENT SCORECARD Turnover: (a) 1% Inception Date: 8/31/99

In 2020, the Fund returned negative 3.1% as utility stocks were neglected by (b) investors chasing potentially more exciting sectors in the midst of a bull market Expense Ratio: 1.12% recovery. The S&P 500 Utilities Index, which is dominated by a 16%-plus weighting (a) For the six months ended June 30, 2020. in NextEra Energy (9% of Fund and 30%), returned .5%, compared to a -8% return (b) As of June 30, 2020. for the median electric utility. Large cap utilities outperformed small caps, with a -2% return for large cap (over $15 billion equity cap) and a -14% median return for small/mid-cap (less than $15 billion) electric utilities. During the unusual year, utilities were one of four sectors to lag the eleven sector S&P 500 despite a 50% drop in the ten-year U.S. Treasury yield to 0.9% from 1.9%, and no material change SHARE CLASS (c) SYMBOL in earnings growth. We attribute the underperformance to the sector’s all-time high valuation multiples in mid-February 2020, combined with investor neglect in Class AAA: GABUX the midst of a bull market recovery. Class A: GAUAX Despite strong earnings and dividend growth prospects and an improving ESG Class I: GAUIX profile, many utility stocks have yet to fully rebound from the spring COVID-19 related fall out and represent an attractive buying opportunity. Electric utilities (c) Another class of shares is available. benefit from the growing crusade to “green” the nation’s power generation fleet.

The leading contributor was NextEra Energy (8% of the portfolio; 30% total return). NEE consists of Florida Power & Light, a premier regulated utility franchise, and NextEra Energy Resources (NER), the nation’s leading

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) Since Inception Gabelli Utilities Fund QTR 1 Year 5 Year 10 Year 15 Year (8/31/99) Class I (GAUIX) 10.35% (3.11)% 7.70% 7.09% 6.99% 7.38% S&P 500 Utilities Index 6.54 0.48 11.50 11.27 8.75 7.26 S&P 500 Index 12.15 18.40 15.22 13.88 9.88 7.06 Lipper Utility Fund Average 9.69 (0.66) 9.93 9.44 8.08 6.79

In the current prospectuses dated April 30, 2020, the expense ratio for Class I Shares is 1.12%. Class I Shares do not have a sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. Returns would have been lower had Gabelli Funds, LLC, the Adviser not reimbursed certain expenses of the Fund for periods prior to December 31, 2002. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. The value of utility stocks generally changes as long term interest rates change. Funds investing in a single sector, such as utilities, may be subject to more volatility than funds that invest more broadly. The utilities industry can be significantly affected by government regulation, financing difficulties, supply or demand of services orfuel, and natural resources conservation. The Class AAA Share NAVs are used to calculate performance for the period prior to the issuance of Class I Shares on January 11, 2008. The actual performance of the Class I Shares would have been higher due to lower expenses related to this class of shares. The S&P 500 Utilities Index is an unmanaged market capitalization weighted index of large capitalization stocks that may include facilities generation and transmission or distribution of electricity, gas, or water. The S&P 500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market. The Lipper Utility Fund Average reflects the average performance of mutual funds classified in this particular category. Dividends are considered reinvested. You cannot invest directly in an index. (b) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI.

42 THE GABELLI UTILITIES FUND

renewable player. With the nation’s largest wind, solar, and battery storage development pipeline and 65% ownership in NextEra Energy Partners (NEP), we SELECTED HOLDINGS* expect NEE to be a leading beneficiary. • NextEra Energy Inc. 9.3% AES (3.7%; 22.2% return) is finally being rewarded for its ongoing multi-year strategy to simplify and “green” its expansive global portfolio of power plants • PNM Resources Inc. 3.8 and electric utility distribution franchises as well as reduce leverage. The company’s renewable development pipeline stands at roughly 25 GWs and • National Fuel Gas Co. 3.8 its battery storage JV with Siemens, Fluence Energy, offers significant growth • AES Corp. 3.7 potential. • Eversource Energy 3.5 Xylem (1.8%; 30.9%) saw impacts throughout its globally diversified business as the pandemic spread and impacted some of its larger end markets, but it was • American Electric Power Co. 2.9 able to continue to generate strong free cash flow in a difficult environment and maintain a healthy balance sheet. • WEC Energy Group Inc. 2.8 • Southwest Gas Holdings Inc. 2.8 American Water Works (0.9%; 26.9%) is the nation’s largest and fastest-growing water utility, with growth driven by privatization and consolidation of the water *Percent of net assets as of December 31, 2020. utility sector. Deal beneficiaries included PNM Resources (3.8%, -1.73%), which agreed to be bought by Avangrid for $50.30 per share or a 15% premium.

ONEOK (1.0%; -43.4%) fell due to the oil price collapse as investors feared that declining demand could impact gathering, processing, and pipeline volumes. Northwest Natural Holdings (1.0%; -35.5%) declined as gas utilities have fallen out of favor, and Hawaiian Electric (1.7%; -21.9%) suffered due to an absence of tourism caused by the pandemic.

LET’S TALK STOCKS

The following are stock specifics on selected holdings of our Fund. Favorable earnings prospects do not necessarily translate into higher stock prices, but they do express a positive trend that we believe will develop over time. Individual securities mentioned are not necessarily representative of the entire portfolio. For the following holdings, the percentage of net assets and their share prices stated in U.S. dollar equivalent terms are presented as of December 31, 2020.

Avangrid Inc., (0.5%) (AGR – $45.45 - NYSE) based in New Haven, Connecticut, comprises eight regulated utilities in four states: New York State Electric & Gas (NYSEG), Rochester Gas and Electric (RGE), Central Maine Power (CMP), United Illuminating (UIL), Southern Connecticut Gas (SCG), Connecticut Natural Gas (CNG), Maine Natural Gas, and Berkshire Gas (BGC), serving approximately 2.2 million electric and 1.0 million gas customers. AGR also owns 7.5 GWs of renewables in operation with a 19 GW development pipeline. Iberdrola of Madrid, Spain owns 81.5% of AGR. We believe AGR is positioned to grow at above-industry rates, driven by recent and pending rate cases, cost-savings initiatives, large growth projects, and a strong balance sheet. The $950 million New England Clean Energy Connect (NECEC) project, a 145-mile DC transmission line (1,200 MWs) to bring hydro capacity into New England. AGR’s 800-MW offshore wind project, Vineyard Wind (50/50 partnership with CIP), won the state of Massachusetts Clean Energy RFP and expected to begin construction in 2021. AGR’s Park City Wind project (Partner with CIP) is a proposed 804-MW project located south of Martha’s Vineyard and Nantucket with a COD expected by year-end 2025. In addition, AGR has 100% ownership in a 122,000 acre lease off the coast of Kitty Hawk, North Carolina, with potential for 2.5 GWs.

NextEra Energy Partners. (0.3%) (NEP – $67.05 – NYSE) of Juno Beach, Florida, is a limited partnership formed by NextEra Energy (NEE – $247 – Buy) to represent a pure play clean energy growth vehicle. NEE owns ~65% of NEP and benefits from the ability to “drop- down” assets to recycle capital for further renewable development, optimize tax credits with gains, maintain a favorable regulated/ non-regulated business mix and “highlight” the value of its renewable portfolio. NEP’s current 5,300 MW (4,575 MWs wind; 750 MWs solar) portfolio represents a small portion of NEE’s non-regulated renewable portfolio of 24 GW (5.3 GWs owned at NEP) of generation, including 15.1 GWs of wind, 3 GWs of solar, 3 GWs of nuclear, and 3 GW of gas/oil. NEP also owns natural gas pipelines in Texas. NEP’s business model of renewable development and acquisition with power sold under fixed priced contracts to other utilities and credit worthy counterparties is insulated from economic cycles and impacts from the coronavirus. NEP targets 12%-15% annual distribution growth through 2024, and raised the quarterly distribution to $0.575 per share from $0.555 per share. The company expects the distribution will be $2.40-$2.46 per share annualized by year-end 2020 compared to $2.14 at year-end 2019.

Xylem Inc. (1.8%) (XYL – $101.79 – NYSE) is a global leader in the design, manufacturing, and application of highly engineered technologies for the transportation, treatment, measurement, and testing of water. The company is expected to benefit from favorable long-term fundamentals in the water industry, driven by scarcity, population growth, aging of the infrastructure, and the need to improve water quality. With a large installed base of pumps and systems, favorable and diversified end markets, premium pricing capabilities, and a high quality balance sheet, Xylem is capable of delivering above-average earnings and cash flow growth. The company continues to build on the connected infrastructure capabilities it has acquired in the past several years, such as Sensus, Hypack, and Pure Technologies, emerging as a potential winner in a post-COVID-19 world as water utilities across the world look for more affordable ways to deploy capital through the use of technology. The company had several key contract wins throughout 2020 and anticipates a large, multi-year opportunity for these offerings going forward. In addition, the company is accelerating some of its restructuring efforts in the current environment, with estimated cost savings of $100-$120 million.

43 THE GABELLI ABC FUND

INVESTMENT OBJECTIVE

The Gabelli ABC Fund’s investment objective is to achieve total returns PORTFOLIO HIGHLIGHTS that are attractive to investors in various market conditions without excessive risk of capital loss. • The Adviser focuses the Fund on arbitrage Total Net Assets: $704 Million strategies – investing in event driven situations such as announced NAV (Class AAA): $10.46 mergers, spin-offs, split-ups, liquidations and reorganizations – and may hold a significant portion of its assets in U.S. Treasury bills in anticipation Turnover (a) 101% of quick non market correlated opportunities. • The Fund may also invest Inception Date: 5/14/93 in value-oriented common stocks and convertible securities. Net Expense Ratio: (b) 0.68% (a) For the six months ended June 30, 2020. FOURTH QUARTER 2020 DEAL ENVIRONMENT (b) As of June 30, 2020.

As COVID-19 metastasized across the globe and world leaders grappled with ways to mitigate its impact, deal makers, faced with substantial uncertainty, shifted their focus to efficiently managing their own assets SHARE CLASS SYMBOL and preserving cash. Those who entered the crisis with strong balance sheets and sound fundamentals were able to survive the shutdown and Class AAA: GABCX look for future growth opportunities. As fiscal and monetary stimulus Class ADV: GADVX continued to work its way through the system, buyers gained more confidence in the economic recovery and mergers and acquisitions (M&A) surged in the third quarter. This trend continued in the fourth quarter with the election of Joe Biden as President of the United States. Now operating in an environment with greater political clarity, potential dealmakers made use of their large cash balances and elevated stock prices to acquire complementary assets at attractive valuations. This was particularly true in the technology space, where large semiconductor companies like Marvell and Advanced Micro Devices acquired smaller players that added differentiated products to their existing portfolios.

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) Since Inception Gabelli ABC Fund QTR 1 Year 5 Year 10 Year 15 Year (5/14/93) Class AAA (GABCX) 2.60% 2.90% 2.63% 2.85% 3.63% 5.32% Lipper U.S. Treasury Money Market Fund Average 0.01 0.31 0.83 0.42 0.93 2.05 (c) ICE Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index 0.03 0.67 1.20 0.64 1.23 2.49 In the current prospectuses dated April 30, 2020, the expense ratio for the Class AAA is 0.68%. The Fund does not have a sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. Returns would have been lower had Gabelli Funds, LLC, the Adviser, not reimbursed certain expenses of the Fund for periods prior to December 31, 2007.The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one quarter are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. The Lipper U.S. Treasury Money Market Fund Average reflects the average performance of mutual funds classified in this particular category. The ICE Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month, that issue is sold and rolled into the outstanding Treasury Bill that matures closest to, but not beyond three months from the rebalancing date. To qualify for selection, an issue must have settled on or before the rebalancing (month end) date. Dividends are considered reinvested except for the Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index. You cannot invest directly in an index. (b) Another class of shares is available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI. (c) Lipper U.S. Treasury Money Market Fund Average since inception performance is as of April 30, 1993.

44 THE GABELLI ABC FUND

Many of the fundamentals that buoyed a strong M&A environment prior to the COVID-19 pandemic remain largely intact today. Borrowing costs SELECTED HOLDINGS* around the globe remain historically cheap. Central banks cut rates to zero and expanded their balance sheets to help spur an economic • Lennar Corp. 1.1% recovery. In addition, despite sales declines across most industries, • Willis Towers Watson Plc 1.0% companies implemented aggressive cost cutting measures to preserve their war chests, which could be used for future acquisitions. Looking • Aerojet Rocketdyne Holding Inc. 0.9% ahead, as governments roll out COVID-19 vaccines and continue to • PNM Resources Inc. 0.9% support the economy with fiscal stimulus, the global economic recovery should continue, and we expect M&A activity will be strong as a result. • Fitbit Inc. 0.8% • Varian Medical Systems Inc. 0.7% Global M&A activity totaled $3.6 trillion in 2020, a 5% year over year decline driven by shutdowns related to COVID-19. However, merger • Idorsia Ltd. 0.7% activity recovered substantially in the second half of the year as countries • Sterling Bancorp 0.7% began phased re-openings and governments instituted accommodative monetary and fiscal policies. M&A totaled $2.3 trillion in the second half • Canfor Corp. 0.6% of the year, marking the strongest second half on record and a 90% *Percent of net assets as of December 31, 2020. increase over to the first half of the year. Geographically, Europe and Asia Pacific remained bright spots for M&A, increasing 36% and 16% respectively, while deal making in the U.S. declined by 21% this year to $1.4 trillion as COVID-19 battered major U.S. cities. Deal making in the Technology sector buoyed the overall M&A market, with volumes totaling $684.3 billion, an all-time high. Financials and Energy & Power were the second and third most active sectors accounting for 26% of all deal making. And while mega deals (deals valued over $10 billion) drove volumes in 2019, they declined 21% this year. DONE DEALS

Dunkin’ Brands Group Inc. is a Canton, Massachusetts-based multinational coffee and food company that franchises quick service restaurants. On October 30, 2020, DNKN agreed to be acquired by Inspire Brands for $106.50 cash per share or $9.5 billion. The transaction required a simple majority tender and Hart Scott Rodino (HSR) filing, and closed on December 16, 2020.

HD Supply Inc. is an industrial product distributer based in Atlanta, Georgia. On November 16, 2020, HDS agreed to be acquired by Home Depot Inc. for $56 cash per share or $8.7 billion. The transaction required a simple majority tender as well as regulatory approvals, and closed on December 28, 2020.

MyoKardia Inc. is a Brisbane, California-based specialty pharmaceuticals company focused on the treatment of rare cardiovascular diseases. On October 5, 2020, Bristol Myers Squibb agreed to acquire MYOK for $225.00 per share or $13.1 billion. The transaction required a simple majority tender and an HSR filing, and closed on November 17, 2020. PIPELINE DEALS

Acacia Communications, Inc. (ACIA - $72.96 - NASDAQ), based in Maynard, Massachusetts, develops and manufactures high- speed coherent optical interconnect products. On July 19, 2019, ACIA agreed to be acquired by Cisco Systems for $70 cash per share. Following a lengthy State Administration for Market Regulation review and uncertainty around antitrust approval in China, ACIA terminated the agreement on January 8, 2020. A revised deal was then announced on January 14, 2020, in which ACIA would be acquired for $115 per share for a total value of $4.85 billion. The transaction is expected to close in the first quarter of 2021, following the receipt of shareholder approval.

Fitbit, Inc. (FIT - $6.80 - NYSE) is a San Francisco, California-based technology company that produces wearable fitness devices. On November 1, 2019, Google announced its intent to acquire Fitbit for $7.35 cash per share, valuing the company at $2.1 billion. With FIT shareholder approval in place and regulatory hurdles completed, the deal closed on January 14, 2021.

Tele Columbus AB (TC1 – $3.92/€3.21 – Xetra) is a Berlin, Germany-based company that provides television and cable services to European customers. On December 21, 2020, Morgan Stanley Infrastructure Partners made a voluntary offer of 3.25 euros per share, which was supported by Tele Columbus. The transaction has a total value of approximately 415 million euros, and is expected to close in the second quarter of 2021 following regulatory approvals and receipt of the minimum tender conditions.

45 THE GABELLI GOLD FUND, INC. Fund in Focus

PORTFOLIO MANAGEMENT: Caesar M. P. Bryan

PORTFOLIO OBSERVATIONS

Gold equities lost ground during the fourth quarter despite a small rise in PORTFOLIO HIGHLIGHTS the gold price. For the quarter the gold price rose $13 to end the year at $1,898 per ounce. We believe that the gold bull market will persist. This is Total Net Assets: $455 Million based on the continuation of loose monetary and fiscal policies. The Federal NAV (Class I): $21.14 Reserve (Fed) has indicated that short term interest rates will remain at zero Inception Date: 7/11/94 through 2023, that it will tolerate inflation higher than their 2% target, and (a) that it will continue to purchase assets at a rate of $120bn per month. Further, Net Expense Ratio: 1.30% due to the explosion of debt, the Fed is open to initiating some form of (a) As of June 30, 2020. yield control, which suggests that real negative interest rates will persist for years. Meanwhile, in response to the COVID-19 crisis, further fiscal support is expected. Burgeoning debt and negative real rates are supportive of higher SHARE CLASS (b) SYMBOL gold prices. Class AAA: GOLDX Generally, smaller gold producers and certain developers performed best during the quarter. Our top contributors were Eldorado Gold (2% of net Class A: GLDAX assets as of December 31, 2020), SilverCrest Metals (1%) and K92 Mining (2%). Class I: GLDIX Otherwise, Marathon Gold (1%) and MAG Silver (0.4%), two development (b) Another class of shares is available. companies, appreciated by 34% and 26%, respectively. Some of the larger gold producers which are big holdings in the Fund, such as Barrick Gold (7%) and Kirkland Lake Gold (4%), disappointed.

COMPARATIVE RESULTS Average Annual Returns through December 31, 2020 (a) (b) Since Inception Gabelli Gold Fund, Inc. QTR 1 Year 5 Year 10 Year 15 Year (7/11/94) Class I (GLDIX) (6.85)% 26.67% 20.66% (2.07)% 4.68% 5.78% Philadelphia Gold & Silver Index (XAU) 1.02 35.93 27.00 (3.31) 1.90 2.06 (c) NYSE Arca Gold Miners Index (GDM) (7.42) 24.05 22.82 (3.94) 1.89 2.60 (d) NYSE Arca Gold BUGS Index (HUI) (28.41) 24.92 22.98 (5.23) 1.52 3.31 (e) Lipper Precious Metals Fund Classification (1.52) 31.94 21.56 (4.19) 3.47 4.18 Standard & Poor's ("S&P") 500 Index (SPX) 12.15 18.40 15.22 13.88 9.88 10.49 In the current prospectuses dated April 30, 2020, the expense ratio for Class I Shares is 1.30%. Class I Shares do not have a sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. Investing in foreign securities involves risks not ordinarily associated with investments in domestic issues, including currency fluctuation, economic, and political risks. Investing in gold is considered speculative and is affected by a variety of worldwide economic, financial, and political factors. The Class AAA Share NAVs are used to calculate performance for the period prior to the issuance of Class I Shares on January 11, 2008. The actual performance of the Class I Shares would have been higher due to lower expenses related to this class of shares. The XAU Index is an unmanaged indicator of stock market performance of large North American gold and silver companies. The NYSE Arca Gold Miners Index is a modified market capitalization weighted index comprised of publicly traded companies involved primarily in the mining for gold and silver. The NYSE Arca Gold BUGS Index is a modified equal-dollar weighted index of companies involved in major gold mining. It was designed to give investors significant exposure to near term movements in gold prices by including companies that do not hedge their gold production beyond 1.5 years. The Lipper Precious Metals Fund Classification reflects the average performance of mutual funds classified in this particular category. The S&P 500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market. Dividends are considered reinvested. You cannot invest directly in an index. (b) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI (c) XAU Index since inception performance results is as of June 30, 1994. (d) NYSE Arca Gold Miners Index since inception performance results is as of June 30, 1994. (e) There are no data available for the NYSE Arca Gold BUGS Index prior to December 16, 1994.

46 GABELLI GOLD FUND, INC.

We initiated four new positions, three of which are gold development companies with gold projects that we believe will become mines in the SELECTED HOLDINGS* medium term. These include Osisko Development Corp. (0.3%), Artemis Gold (0.4%) and Western Copper and Gold (0.3%). The fourth is Shanta • Newmont Corp. 7.1% Gold (0.4%), which does have a producing mine but owns other interesting • Barrick Gold Corp. 6.6 gold projects. We sold our position in AngloGold Ashanti, Hycroft Mining, • Franco-Nevada Corp. 5.6 Northern Dynasty Minerals, Torex Gold, and Castile Resources. At the margin, we raised the Fund’s exposure to mid-capitalization gold producers and gold • Agnico Eagle Mines Ltd 5.4 development companies that trade at an attractive valuation discount to • Wheaton Precious Metals Corp. 4.8 the senior producers and which will benefit more from a higher gold price. • Wesdome Gold Mines Ltd 4.3 Mid-capitalization gold producers we added to were Centerra Gold (1.5%), • Kirkland Lake Gold Ltd 3.8 Endeavour Mining (2.5%), Evolution Mining (2.5%), Hochschild Mining (1.3%), Lundin Gold (0.4%), Oceana Gold (0.8%) and Osisko Gold Royalties (1.4%). • Newcrest Mining Ltd 3.6 Also we added to two development companies, Marathon Gold (0.7%) and • Teranga Gold Corp. 3.1 Osisko Mining (0.7%). • Alamos Gold Inc. 3.0 *Percent of net assets as of December 31, 2020. At current gold prices, gold equities are generating substantial free cash flows. This has allowed many of our portfolio companies to raise their dividend payouts. Others have recently initiated dividends. We expect this trend to continue which should help drive returns in the current low interest rate environment. Further, gold stocks are inexpensive relative both to their history and to the gold price.

LET’S TALK STOCKS

The following are stock specifics on selected holdings of our Fund. Favorable earnings prospects do not necessarily translate into higher stock prices, but they do express a positive trend that we believe will develop over time. Individual securities mentioned are not necessarily representative of the entire portfolio. For the following holdings, the percentages of net assets, and their share prices are stated as of December 31, 2020.

Agnico Eagle Mines (5.4% of net assets as of December 31, 2020) (AEM – $70.51 – NYSE) is a Toronto-based gold mining company with operations in Canada, Finland, and Mexico. We expect the company to produce approximately 2 million ounces of gold in 2021 at all- in sustaining costs (AISC) of $1,000 per ounce. Agnico will grow organically by expanding production at current mines and building projects in its pipeline.

Endeavour Mining (2.5%) (EDV – $23.27/CAD $29.62 – Toronto Stock Exchange) is a London-based gold mining company with operations in West Africa. The company announced a low-premium merger with Teranga Gold, another portfolio holding, in November 2021. The combined company will have seven producing mines in West Africa, three being of world-class quality. We expect the combined company to produce 1.4 million ounces of gold in 2021 and to generate a significant amount of free cash flow at the current gold price.

K92 Mining (1.7%) (KNT – $5.97/CAD $7.62 – Toronto Stock Exchange) owns and operates a very high grade underground mine in Papua New Guinea. As the company produces from the deposit, it will grow production by expanding processing plant capacity and developing new portions of the orebody. We expect K92 to produce 130,000 ounces of gold in 2021, growing to 300,000 ounces once the expansion is complete.

Kinross Gold (1.8%) (K – $7.34 – Toronto Stock Exchange) will produce approximately 2.5 million ounces of gold in 2021, growing to s3 million ounces in 2024 as the company expands production from its open pit Tasiast mine in Mauritania and likely builds a new mine in Chile. The company recently initiated a dividend policy which we expect will be augmented if the gold price rises.

Newmont Corp. (7.1%) (NEM – $59.89 – NYSE) is the largest gold mining company in the world by volume, producing approximately 6.5 million ounces in 2020. Newmont aims to maintain production through internal expansion projects as some mines deplete. This capital-light model will allow the company to pay increasingly larger dividends if the price of gold stays at current levels or appreciates.

Osisko Gold Royalties (1.4%) (OR – $12.67/CAD $16.13 – Toronto Stock Exchange) is a Montreal-based gold royalty company. A majority of the value of the company is derived from mines in Canada. Osisko recently announced the separation and spin out of its development projects into a new company called Osisko Development (also a holding in the Fund). As Osisko Development defines and delineates its Cariboo Gold deposit in British Columbia, value should be realized in the market and the parent company Osisko Gold Royalties will benefit.

47 THE GABELLI ESG FUND

PORTFOLIO MANAGEMENT TEAM: Christopher C. Desmarais, Kevin V. Dreyer, Christopher J. Marangi, Melody P. Bryant, Ian Lapey

ENVIRONMENTAL, SOCIAL, AND PORTFOLIO HIGHLIGHTS GOVERNANCE INVESTING Total Net Assets: $37 Million Environmental, social and governance (ESG) refers to the three main NAV (Class I): $14.62 areas of concern that have developed as central factors in measuring Turnover: (a) 5% the sustainability and ethical impact of an investment in a business. Inception Date: 6/1/07 Incorporating ESG factors into company research can help understand Net Expense Ratio: (b) 0.90% risks and opportunities that may otherwise have been overlooked, and (a) For the year ended March 31, 2020. improve the return profile of investment portfolios. ESG analysis differs (b) As of March 31, 2020. from a traditional socially responsive investing (SRI) screen in that it does not apply a “negative screen”, excluding companies that engage (c) in specific unwanted activities (such as selling tobacco or weapons). SHARE CLASS SYMBOL

Instead, it takes a holistic approach, evaluating a company’s performance Class AAA: ESGGX in a variety of areas, including carbon emissions, energy efficiency, water Class A: ESGHX stress, human capital development, chemical safety, board independence, Class I: ESGKX management pay practices, and business ethics. (c) Another class of shares is available.

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) (c)

Since Inception Gabelli ESG Fund QTR 1 Year 3 Year 5 Year 10 Year (6/1/07) Class I (ESGKX) 17.34% 13.37% 6.48% 8.70% 7.04% 6.71% S&P 500 Index 12.15 18.40 14.18 15.22 13.88 9.07

In the current prospectuses dated July 29, 2020, the gross expense ratio for Class I is 1.67%, and the net expense ratio after contractual reimbursements by Gabelli Funds, LLC, (the “Adviser”) is 0.90%. The contractual reimbursements are in effect through July 31, 2021. Class I Shares do not have a sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. Returns would have been lower had Gabelli Funds, LLC, the Adviser not reimbursed certain expenses of the Fund. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. The S&P 500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market. You cannot invest directly in an index. (b) The Fund’s fiscal year ends March 31. (c) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI.

48 THE GABELLI ESG FUND

INVESTMENT SCORECARD SELECTED HOLDINGS* Hopes for an acceleration of economic activity, strength in agricultural • Xylem Inc. 4.3% commodity prices, and anticipation of financial engineering under a • NextEra Energy Inc. 4.3 newly-named CEO helped make CNH Industrial (13% of net assets as • CNH Industrial N.V. 3.8 of December 31, 2020, +64%) the largest contributor to returns in the • PayPal Holdings Inc. 3.7 fourth quarter. Water-focused firms Xylem (4%, +21%) and Evoqua • Conagra Brands Inc. 3.7 Water (2%, +27%) performed well in anticipation of greater federal • Alphabet Inc. 3.4 funding of infrastructure projects. Sony Corp. (3%, +33%) was a large • Watts Water Technologies Inc. 3.3 contributor to fourth quarter and annual returns as its latest generation • Nestlé SA 3.1 Playstation 5 game console launched with great fanfare and the • Danone SA 2.9 company’s sensor business stands to benefit from a new smartphone • Bristol-Myers Squibb Co. 2.8 cycle. Finally, PayPal Holdings (4%, 19%) capped its year as a strong *Percent of net assets as of December 31, 2020. contributor to returns as it opened its platform to transactions in bitcoin.

The largest detractor in Q4 was International Flavors & Fragrances (1%, -10%), which faced technical pressure as it is in the process of combining with DuPont’s Nutrition & Biosciences unit. Gilead Sciences (1%, -7%), saw interest in its COVID treatment drug Remdesivir wane as steroids, antibody cocktails and ultimately vaccines take center stage in combating the pandemic. Finally, BioHiTech Global (0.1%, -30%) disappointed investors as it disclosed it was experiencing growing pains in its revolutionary waste reduction facility in West Virginia.

49 GABELLI ENTERPRISE MERGERS & ACQUISITIONS FUND

FOURTH QUARTER 2020 DEAL ENVIRONMENT

As COVID-19 metastasized across the globe and world leaders grappled PORTFOLIO HIGHLIGHTS with ways to mitigate its impact, deal makers, faced with substantial Total Net Assets: $85 Million uncertainty, shifted their focus to efficiently managing their own assets NAV (Class Y): $16.07 and preserving cash. Those who entered the crisis with strong balance Turnover: (a) 150% sheets and sound fundamentals were able to survive the shutdown and Inception Date: 2/28/01 look for future growth opportunities. As fiscal and monetary stimulus Net Expense Ratio: (b) 1.00% continued to work its way through the system, buyers gained more confidence in the economic recovery and mergers and acquisitions (a) For the six months ended April 30, 2020. (b) As of April 30, 2020. (M&A) surged in the third quarter. This trend continued in the fourth quarter with the election of Joe Biden as President of the United States. Now operating in an environment with greater political clarity, potential SHARE CLASS (c) SYMBOL dealmakers made use of their large cash balances and elevated stock prices to acquire complementary assets at attractive valuations. This was Class AAA: EAAAX particularly true in the technology space, where large semiconductor Class A: EMAAX companies like Marvell and Advanced Micro Devices acquired smaller Class Y: EMAYX players that added differentiated products to their existing portfolios. (c) Another class of shares is available. Many of the fundamentals that buoyed a strong M&A environment prior

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) (c)

Since Inception Gabelli Enterprise Mergers & Acquisitions Fund QTR 1 Year 5 Year 10 Year (2/28/01) Class Y (EMAYX) 10.19% 5.29% 4.82% 4.97% 4.79% Lipper U.S. Treasury Money Market Average 0.01 0.31 0.83 0.42 1.08 ICE Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index 0.03 0.67 1.20 0.64 1.47

In the current prospectuses dated February 28, 2020, the expense ratio for Class Y is 1.25%. Class Y Shares have no sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, sales charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. The Lipper U.S. Treasury Money Market Fund Average reflects the average performance of mutual funds classified in this particular category. The ICE Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month, that issue is sold and rolled into the outstanding Treasury Bill that matures closest to, but not beyond three months from the rebalancing date. To qualify for selection, an issue must have settled on or before the rebalancing (month end) date. Dividends are considered reinvested except for the ICE Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index. You cannot invest directly in an index. (b) The Fund’s fiscal year ends October 31. (c) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI.

50 GABELLI ENTERPRISE MERGERS & ACQUISITIONS FUND

to the COVID-19 pandemic remain largely intact today. Borrowing costs around the globe remain historically cheap. Central banks cut rates SELECTED HOLDINGS* to zero and expanded their balance sheets to help spur an economic • Myers Industries Inc. 3.9% recovery. In addition, despite sales declines across most industries, • Navistar International Corp. 2.5 companies implemented aggressive cost cutting measures to preserve their war chests, which could be used for future acquisitions. Looking • Telenet Group Holding NV 2.5 ahead, as governments roll out COVID-19 vaccines and continue to • PNM Resources Inc. 2.3 support the economy with fiscal stimulus, the global economic recovery • National General Holdings Corp. 2.0 should continue, and we expect M&A activity will be strong as a result. • RealPage Inc. 1.9 Global M&A activity totaled $3.6 trillion in 2020, a 5% year over year • Vulcan Materials Co. 1.9 decline driven by shutdowns related to COVID-19. However, merger • Eidos Therapeutics Inc. 1.8 activity recovered substantially in the second half of the year as countries • Varian Medical Systems Inc. 1.6 began phased re-openings and governments instituted accommodative monetary and fiscal policies. M&A totaled $2.3 trillion in the second half • Fox Corp. 1.5 of the year, marking the strongest second half on record and a 90% *Percent of net assets as of December 31, 2020. increase over to the first half of the year. Geographically, Europe and Asia Pacific remained bright spots for M&A, increasing 36% and 16% respectively, while deal making in the U.S. declined by 21% this year to $1.4 trillion as COVID-19 battered major U.S. cities. Deal making in the Technology sector buoyed the overall M&A market, with volumes totaling $684.3 billion, an all-time high. Financials and Energy & Power were the second and third most active sectors accounting for 26% of all deal making. And while mega deals (deals valued over $10 billion) drove volumes in 2019, they declined 21% this year.

DONE DEAL

Dunkin’ Brands Group Inc. is a Canton, Massachusetts-based multinational coffee and food company that franchises quick service restaurants. On October 30, 2020, DNKN agreed to be acquired by Inspire Brands for $106.50 cash per share or $9.5 billion. The transaction required a simple majority tender and Hart Scott Rodino (HSR) filing, and closed on December 16, 2020.

PIPELINE DEAL

Navistar International Corporation (NAV - $43.96 - NYSE) is a Lisle, Illinois-based industrial manufacturing company focused on medium and heavy trucks, diesel engines, and parts. NAV first received an offer to be acquired by TRATON last January for $35 cash per share, which was unanimously declined by the NAV board. TRATON then increased the offer to $43 in September, which was also rejected. On November 7, 2020, NAV agreed to be acquired by TRATON for $44.50 per share in cash, valuing the company at $4.4 billion. The transaction is subject to U.S. and foreign regulatory approvals as well as shareholder approval, and is expected to close in mid-2021.

51 THE GABELLI GLOBAL CONTENT & CONNECTIVITY FUND GAMCO Global Series Funds, Inc.

PORTFOLIO MANAGEMENT TEAM: Sergey Dluzhevskiy, CFA, CPA, Evan D. Miller, CFA

DEAR SHAREHOLDERS

For the quarter ended December 31, 2020, the net asset value per Class PORTFOLIO HIGHLIGHTS AAA Share of The Gabelli Global Content & Connectivity Fund increased 16.2%, moderately ahead of a 15.0% gain by MSCI AC World Communication Total Net Assets: $82 Million Services Index. NAV (Class I): $22.11 Global equities continued to rally in the fourth quarter, with particular strength Turnover: (a) 35% in November on positive COVID-19 vaccine announcements from Pfizer/ BioNTech, Moderna, and AstraZeneca/Oxford. As a result, sectors that had Inception Date: 11/1/93 previously been hit most severely by the pandemic, such as energy and Net Expense Ratio: (b) 0.92% financials (the worst performers through the first nine months of 2020), led the market in the quarter. The Communication services sector, which held (a) For the six months ended June 30, 2020. up reasonably well during the previous three quarters, was up 15.0% in 4Q, (b) As of June 30, 2020. moderately underperforming the broad index, as MSCI AC World Index gained 15.6%. Sector performance was largely driven by the Media & Entertainment Industry Group (up 17.2%), helped by meaningful gains in Alphabet (7.9% (c) of net assets as of December 31, 2020), Disney (2.2%), and Comcast (6.4%) SHARE CLASS SYMBOL shares. The Telecommunication Services Industry Group was up 9.2% in 4Q. Class AAA: GABTX Class A: GTCAX PERFORMANCE DISCUSSION Class I: GTTIX Leading the list of positive contributors to Fund performance in 4Q’20 was (c) Another class of shares is available. Alphabet (+19.2%) (contributing 1.6% to portfolio’s total return), helped by solid 3Q results, reflecting broad increases in advertiser spending across Google Search and YouTube as well as ongoing strength in the company’s non-advertising revenue lines (most notably Cloud and Play). Kinnevik (6.8%) (+24.2%)(+1.6%) benefited from its largest holding, Zalando, rising over 19% in U.S. dollar terms as well as from discount to net asset value (NAV) turning into a

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) Since Inception Gabelli Global Content & QTR 1 Year 5 Year 10 Year 15 Year Connectivity Fund (11/1/93) Class I (GTTIX) 16.18% 16.42% 7.17% 5.91% 5.54% 7.39% MSCI AC World Communication Services Index (c) 14.97 22.98 9.96 7.92 8.00 N/A MSCI AC World Index 15.59 16.25 12.26 9.13 7.20 7.51 (c)

In the current prospectuses dated April 30, 2020, the gross expense ratios for Class I Shares is 1.51%, and the net expense ratio after contractual reimbursements by Gabelli Funds, LLC, (the “Adviser”) is 0.92%. The contractual reimbursement for Class I Shares is in effect through April 30, 2021. Class I Shares do not have a sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. Returns for Class I Shares would have been lower had the Adviser not reimbursed certain expenses. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. Investing in foreign securities involves risks not ordinarily associated with investments in domestic issues, including currency fluctuation, economic, and political risks. The Class AAA Share NAVs are used to calculate performance for the period prior to the issuance of Class I Shares on January 11, 2008. The actual performance of the Class I Shares would have been higher due to lower expenses related to this class of shares. The MSCI AC World Communication Services Index is an unmanaged index that measures the performance of Communication Services from around the world. The MSCI AC World Index is an unmanaged market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI AC World Index consists of 45 country indices comprising 24 developed and 21 emerging market country indices. Dividends are considered reinvested. You cannot invest directly in an index. (b) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI. (c) MSCI AC World Telecommunication Services Index name changed to MSCI AC World Communication Services Index.

52 THE GABELLI GLOBAL CONTENT & CONNECTIVITY FUND

moderate premium, as investors likely assigned greater value to the firm’s unlisted holdings and its investment capabilities. Another investment SELECTED HOLDINGS* holding company, VNV Global (3.0%)(+77.6%)(+1.5%), was helped in part by rising valuation multiples in digital health space (privately held Babylon • T-Mobile U.S. Inc. 8.2% Health is its largest portfolio position). Rounding out the Top 5 were T-Mobile US (8.2%)(+17.9%)(+1.4%), on stronger than expected 3Q results and • Alphabet Inc. 7.9 synergy realization, and SoftBank Group (5.7%)(+27.3%)(+1.4%), with stock • Kinnevik AB 6.8 buybacks and recent successful IPOs of a number of Vision Fund holdings (including DoorDash) helping narrow discount to NAV. WideOpenWest • Facebook Inc. 6.7 (1.5%)(+105.6%)(+0.9%), a cable overbuilder passing 3.2 million homes across 10 states, was the largest gainer among Fund holdings in 4Q, • Comcast Corp. 6.4 benefiting from recovery in small-cap names and a favorable comparable transaction multiple (as Stonepeak agreed to acquire a privately-held cable • SoftBank Group Corp. 5.7 overbuilder, Astound Broadband, for 13x EBITDA). • Verizon Communications Inc. 3.6 The list of detractors to Fund performance in 4Q was relatively short, • Naspers Ltd. 3.5 topped by China Mobile (0.3%)(-11.3%)(-0.2%), which was impacted by the U.S. Presidential executive order prohibiting Americans from investing in a • VNV Global AB 3.0 group of Chinese firms with alleged ties to the China’s military, intelligence, and security services, as well as potential delisting of these companies from • Microsoft Corp. 2.3 the NYSE. *Percent of net assets as of December 31, 2020.

LET’S TALK STOCKS The following are stock specifics on selected holdings of our Fund. Favorable earnings prospects do not necessarily translate into higher stock prices, but they do express a positive trend that we believe will develop over time. Individual securities mentioned are not necessarily representative of the entire portfolio. For the following holdings, the share prices are listed first in United States dollars (USD) and second in the local currency, where applicable, and are presented as of December 31, 2020.

Alphabet, Inc. (7.9% of net assets as of December 31, 2020) (GOOG – $1,751.88 – NASDAQ) is a holding company whose subsidiaries include the core Google business (Search, Android, YouTube, Cloud) as well as multiple independent companies (e.g. GV, Waymo, Verily). We believe that Alphabet’s fundamentals are strong and the firm will remain one of the primary beneficiaries of the long- term secular shift to online spending.

Naspers Ltd. (3.5%) (NPN – $205.47/ZAR 3,019.35 – JSE), headquartered in Cape Town, South Africa, is a global internet and entertainment group and one of the largest technology investors in the world. Naspers currently holds approximately 73% of Prosus as well as local South African media and e-commerce businesses (e.g. Media24, Takealot, etc.). Prosus is a global consumer internet company, with assets including the 31% interest in Tencent, other public equity investments (stakes in Mail.ru, Delivery Hero, Trip.com), and private businesses within payments and fintech, classifieds, food delivery, social & internet platforms, ventures, E-tail, and travel verticals.

SoftBank Group (5.8%) (9984 – $78.04 / ¥8,058 – Tokyo) is an investment firm managing a portfolio of listed (including stakes in Alibaba, SoftBank Corp., and T-Mobile) and unlisted holdings (directly and through Vision Fund), with focus on artificial intelligence, robotics, and ride sharing. After announcing a sizeable share repurchase program in March 2020, SoftBank had bought back 275 million shares (approximately 13% of shares outstanding) for ¥1.6 trillion (at an average price of ¥5,900 per share) through the end of 2020, which helped narrow discount to NAV.

T-Mobile US, Inc. (8.3%) (TMUS – $134.85 – NASDAQ) is the second-largest wireless operator in the U.S., serving over 100 million branded customers. In November, TMUS reported stronger than expected 3Q results and synergy realization. The merger with Sprint (completed in April 2020) amplifies value creating opportunity for T-Mobile (with improved competitive position, strong spectrum portfolio, meaningful synergy potential, and ability to build a high capacity differentiated 5G network).

The Walt Disney Company (2.2%) (DIS – $181.18 – NYSE), is a global entertainment company with operations across media networks, theme parks, studio entertainment, and streaming video. While 2020 has been a challenging year for DIS across a number of its business lines (e.g., parks and theatrical) due to COVID-19 pandemic, the firm’s streaming products, led by Disney+, have done well. On December 10, 2020, at its investor day, the company announced that Disney+ had reached 87 million subscribers and raised its target to over 230 million subscribers by the end of FY 2024. Disney also announced over 100 new TV shows and films coming over the next few years (80% of which are expected to launch first on direct-to-consumer streaming platforms).

53 THE GABELLI GLOBAL FINANCIAL SERVICES FUND Gabelli Equity Series Funds, Inc.

PORTFOLIO MANAGEMENT: Ian Lapey

DEAR SHAREHOLDERS

For the quarter ended December 31, 2020, the net asset value (NAV) per the PORTFOLIO HIGHLIGHTS class AAA Share of The Gabelli Global Financial Services Fund increased by 35.6% compared to a 24.2% increase for the MSCI World Financials Index. Total Net Assets: $19 Million The common stocks of most financial companies recovered somewhat during the quarter owing primarily to favorable trial results and subsequent FDA NAV (Class I): $9.44 approvals of the Pfizer and Moderna COVID–19 vaccines. Additionally, while Turnover: (a) 18% global banks have booked large credit reserves in response to the pandemic driven economic recession, the underlying credit performance, as measured Inception Date: 10/1/18 by charge-offs and delinquencies, for the loan portfolios of most banks Net Expense Ratio: (b) 1.00% has been very strong. Additionally, consolidation appears to be picking up, (a) For the twelve months ended September 30, 2020. highlighting the large discounts to intrinsic value of many common stocks (b) As of March 31, 2020. of financial companies. Finally, while interest rates remain extremely low by historical standards, they appeared to at least stabilize during the quarter. As of December 31, 2020, the Fund had 32 common stock positions and net assets of $19 million. The Fund’s aggregate valuation metrics are very SHARE CLASS (c) SYMBOL attractive at about 90% of book value, 140% of tangible book value and 14 times expected 2021 earnings. Class AAA: GAFSX The top two contributors for the quarter both entered into merger Class A: GGFSX agreements: CIT Group (3.9% of the portfolio as of December 31, up 105% in the quarter) and Waddell & Reed Financial (6.1%, +74%). CIT is being Class I: GFSIX acquired by First Citizens BancShares in an all-stock transaction in which (c) Another class of shares is available. CIT shareholders will own 31% of the combined company. While the initial purchase price was very disappointing (only an 11% premium and a 60%

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a) (b) (c)

Since Inception Gabelli Global Financial Services Fund QTR 1 Year (10/1/18) Class I (GFSIX) 35.56% (1.26)% (0.44)% MSCI World Financials Index 24.15 (2.11) 2.97

In the current prospectuses dated January 28, 2020, and supplemented July 31, 2020, the gross expense ratio for Class I Shares is 2.07% and the net expense ratio for the share class after contractual reimbursements by Gabelli Funds, LLC, (the “Adviser”) is 1.00%. The con- tractual reimbursement is in effect through January 31, 2021. Class I Shares do not have a sales charge. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. Returns would have been lower had the Adviser not reimbursed certain expenses of the Fund. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. Investing in foreign securities involves risks not ordinarily associated with investments in domestic issues, including currency fluctuation, economic, and political risks. The MSCI World Financials Index captures large and mid cap securities in the Financials sector across 23 developed markets countries. You cannot invest directly in an index. (b) The Fund’s fiscal year ends September 30. (c) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI.

54 THE GABELLI GLOBAL FINANCIAL SERVICES FUND

discount to tangible book value), the stocks of both companies appreciated sharply after the announcement as First Citizens projected the transaction to SELECTED HOLDINGS* be 50% accretive to earnings and 30% accretive to tangible book value. First Citizens appears to be an extremely well-run company with an impressive • Waddell & Reed Financial Inc. 6.1% long term track of growth of tangible book value and shareholder value driven by prudent credit underwriting and opportunistic acquisitions. • Jefferies Financial Group Inc. 4.6 Waddell & Reed, a Kansas-based asset management firm, agreed to an all-cash takeover from Macquarie Group, an Australian diversified financial • Janus Henderson Group Plc. 4.4 services company, at a 47% premium to the previous day’s close and about a 70% premium to the Fund’s cost. Since the common stock of Waddell & • Aegon N.V. 4.3 Reed was a new purchase in 2020, it is expected to result in some short-term • Bank of New York Mellon Corp. 4.3 capital gains which are expected to be offset with short-term capital losses. • NN Group N.V. 4.2 The only negative contributor during the quarter was Cavco Industries (2.8%, -3%), a leading producer of manufactured homes with significant • Citigroup Inc. 4.2 mortgage and insurance subsidiaries. Cavco’s earnings fell 28% during its fiscal second quarter (September 30 quarter end) owing primarily to • CIT Group Inc. 3.9 COVID–19-related manufacturing inefficiencies, despite robust demand (orders and backlog increased 65% and 134%, respectively, compared to the • Franklin Resources Inc. 3.8 year ago quarter). Cavco continues to have a fortress-like balance sheet with *Percent of net assets as of December 31, 2020. $312 million in cash and short-term investments and no parent company debt, and the company is very well positioned to benefit from continued strong demand for low income housing.

LET’S TALK STOCKS

Citigroup (4.2% of net assets as of December 31, 2020) (C – $61.66 – NYSE) is a New York-based global diversified financial services company with operations in more than 160 countries and approximately 200 million customer accounts. Citigroup’s investment banking business has driven solidly profitable financial results during the COVID-19 pandemic, and the company has retained a very strong capital position despite booking significant credit reserves (the Allowance for Credit Losses (ACL) increased to 4.0% of loans from 1.8%). Under the leadership of incoming CEO Jane Fraser, who will take over in February, Citigroup is expected to simplify its operations and improve its return on capital despite significant investments to improve its risk and control environment. Citigroup’s common stock is valued at a 14% discount to tangible book value and only 12 times earnings over the last 12 months (LTM) that were depressed by the pandemic. Following the company’s strong performance in the Federal Reserve’s December 2020 Stress Test, Citigroup is expected to resume share repurchases this quarter.

Dah Sing Financial Holdings (2.5%) (440 HK – $2.81/HKD 21.85 – Hong Kong Stock Exchange) is a Hong Kong-based financial group that provides banking, insurance and financial services in Hong Kong, Macau and Mainland China. The company owns 74% of Dah Sing Banking Group (2356 HK), which owns 15% of the Bank of Chonquing (1963 HK). Dah Sing Banking Group has weathered the very challenging recent economic conditions in Hong Kong very well with overdue and impaired loans remaining at low levels (0.9% and 1.0%, respectively) and a robust capital position (13.1% Tier One Common Equity (CET 1) ratio). The company is run by the Wong family, terrific owner/operators that own 43% of the outstanding shares and have historically been prudent underwriters and stewards of capital. The common stock trades at 5.2 times LTM earnings and 27% of tangible book value. This massively discounted valuation could benefit from an improvement in Hong Kong’s economy, significant capital returns and participation in industry consolidation.

Franklin Resources (3.8%) (BEN – $24.99 – NYSE) is a global investment management organization with offices in more than 30 countries, approximately 1,300 investment professionals and more than $1.4 trillion in assets under management (AUM). The company’s specialist investment managers include Franklin, Templeton, Western Asset, ClearBridge, Royce, Brandywine and Mutual Series. In 2020, Franklin utilized its strong financial position to acquire Legg Mason for $4.5 billion in cash. This transformative acquisition added about $800 billion in AUM, diversified its product offerings and improved the overall performance of its AUM. Franklin trades at 9.6 times adjusted fiscal 2020 (September 30 fiscal year end) earnings, and 2021 earnings should grow owing to the Legg Mason acquisition. Franklin has raised its dividend every year since 1981, and the current yield is 4.5%

Standard Chartered PLC (2.7%) (STAN LN – $6.37/£4.66 – London Stock Exchange) is a London based banking and financial services company with more than 1,000 branches in 60 markets focused on Asia and other emerging markets. The company has managed the pandemic quite well, remaining solidly profitable despite booking large loan loss reserves. In the first nine months of 2020, Standard Chartered’s Tier One common equity (CET 1) ratio increased to 14.3% from 13.8% while its ACL increased to 2.3% of total loans from 2.1%. The company’s common stock trades at only 51% of tangible book value. Potential catalysts include a resumption of dividends and possibly share repurchases in 2021 and participation in industry consolidation.

55 GABELLI MEDIA MOGUL FUND Gabelli Innovations Trust

PORTFOLIO MANAGEMENT: Christopher J. Marangi

STRATEGY OVERVIEW

The Gabelli Media Mogul Fund offers the opportunity to invest alongside PORTFOLIO HIGHLIGHTS Dr. John Malone in a diversified and tax-sensitive manner. Dr. Malone has Total Net Assets: $5 Million created and surfaced value first through TCI and later through Liberty NAV: $11.59 Media. Liberty and its spin-offs and investees – over twenty companies Turnover: (a) 18% with an aggregate market capitalization of $500+ billion (a grid Inception Date: 12/1/16 illustrating this investable universe is available at www.gabelli.com) are Net Expense Ratio: (b) 0.90% the focus for MOGLX. (a) For the twelve months ended September 30, 2020. (b) As of March 31, 2020. INVESTMENT SCORECARD

(Y)our Fund performed well in Q4, returning 23%. Many of the biggest SYMBOL contributors to Q4 performance were those companies anticipating a more normalized environment after being hardest hit by the pandemic, MOGLX including Liberty Braves (8% of net assets as of December 31, 2020), +18%), Liberty TripAdvisor (3%, +151%) and LiveNation Entertainment (4%, +36%). Liberty SiriusXM (9%, +32%) remained the largest position and was the largest contributor in Q4 as the company’s subscription model proved durable and it re-signed the iconic Howard Stern. This rebound was not enough to offset earlier weakness, leaving it the largest detractor for the year.

Having completed an innovative piece of financial engineering and posting stellar results driven by stay-at-home shopping and a fundamental turnaround in operations across its QVC, HSN, zulilly and Cornerstone units, Qurate Retail (6%, +74%) cemented its place as the single largest contributor to returns for the year. Elements of the “Charter Stack” – Charter (3%, +6%), Liberty Broadband (9%, +11%) and GCI Liberty (8%, +12%) – all performed strongly owning largely to COVID-19-fueled demand for

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a)

QTR 1 Year 3 Year Since Inception

Gabelli Media Mogul Fund (MOGLX) 23.20% 0.25% 2.68% 3.88% (b) S&P 500 Index 12.15 18.40 14.18 15.10 (b)

In the current prospectus dated January 28, 2021, the gross expense ratio for the Fund was 4.86%.The net expense ratio for the Fund after contractual reimbursements by Gabelli Funds, LLC, (the Adviser) was 0.90%. (a) Returns represent past performance and do not guarantee future results. Total returns reflect changes in share price, reinvestment of distributions, and are net of expenses. Investment returns and the principal value of an investment will fluctuate. When shares are sold, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Returns would have been lower had the Adviser not reimbursed certain expenses of the Fund. The S&P 500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market. Dividends are considered reinvested. You cannot invest directly in an index. (b) Since inception returns are as of December 1, 2016. Performance prior to April 1, 2019, is from the Gabelli Media Mogul NextShares.

56 GABELLI MEDIA MOGUL FUND

broadband. Liberty Broadband and GCI Liberty also completed their merger ahead of schedule in mid-December. The only Q4 detractor was SELECTED HOLDINGS* LendingTree (2%, -11%) which declined after GCI Liberty exited its 27% • Liberty Broadband Corp. 17.5% stake in the company as part of its merger with Liberty Broadband. • Liberty SiriusXM 8.9 • Liberty Braves 7.7 LET’S TALK STOCKS • Liberty Formula One 6.2 The following are stock specifics on selected holdings of our Fund. • Qurate Retail Inc. 5.9 Favorable earnings prospects do not necessarily translate into higher • Discovery Inc. 5.1 stock prices, but they do express a positive trend that we believe will • Live Nation Entertainment Inc. 4.1 develop over time. Individual securities mentioned are not necessarily • Liberty Global Plc 3.9 representative of the entire portfolio. For the following holdings, the • Liberty Latin America LTD 3.9 percentage of net assets and their share prices are stated first in United • Charter Communications Inc. 3.4 States dollars (USD) and second in the local currency, where applicable, *Percent of net assets as of December 31, 2020. as of December 31, 2020.

Liberty Broadband’s (17.5%) (LBRDA – $157.58 – NASDAQ) principal assets are a 25% interest in Charter Communications, the second largest cable company in the United States, and General Communications, the leading cable and wireless provider in Alaska. Liberty Broadband is the product of decades of financial engineering by cable pioneer Dr. John Malone, who effectively controls the company. Charter, currently operated by former Cablevision executive Tom Rutledge, successfully integrated the acquisitions of Time Warner Cable and Bright House and is now capitalizing on its broadband infrastructure advantage during a time of increasing internet usage. Liberty’s investment in Charter was held in two entities, Liberty Broadband and GCI Liberty (which itself also owned 24% of Liberty Broadband); the two entities merged in December 2020 in a long-anticipated transaction. This ownership rationalization should allow for accelerated share repurchases and an eventual combination with Charter.

Liberty Tripadvisor Holdings (2.7%) (LTRPA - $4.34 - NASDAQ) owns approximately 23% of the economics and 58% of the vote of publicly-traded TripAdvisor Inc. (TRIP), one of the world’s largest online travel platforms. TRIP’s flagship site contains over 860 million customer reviews of accommodations, restaurants, and experiences that serve as a key planning tool for millions of travelers. Through its portfolio of travel websites, TRIP generates revenue primarily by providing booking leads and advertising for travel partners. Liberty’s interest in TRIP stems from its investment in the predecessor of Barry Diller’s IAC which incubated travel-booking site Expedia, TRIP’s former parent. LTRPA was spun-off by Liberty as a stand-alone entity in 2014. Both TRIP and LTRPA have managed their expenses and balance sheets through COVID and are poised to re-accelerate when travel returns.

Qurate Retail Inc. (5.9%) (QRTEA - $10.97/$98.50 - NASDAQ) is the product of the merger of leading multi-channel retailers QVC and HSN. The company also includes the Cornerstone catalog brands (including Frontgate, Ballard Designs and Grandin Road) and daily deals site zulily. HSN and QVC have navigated the transition from radio to broadcast television to cable to the internet with e-commerce and mobile sales accounting for nearly 60% and 40% of sales, respectively. Fueled in part by the completion of the integration of QVC and HSN and the stay-home restrictions of COVID-19, Qurate has seen a significant improvement in performance. In addition, in September 2020 the company completed innovative financial engineering whereby Qurate distributed $1.50/sh in cash and $3.00/sh in an 8% preferred instrument.

57 GABELLI PET PARENTS’ FUND Gabelli Innovations Trust

PORTFOLIO MANAGEMENT: Daniel M. Miller

STRATEGY OVERVIEW

The Gabelli Pet Parents’ Fund seeks to provide capital appreciation. PORTFOLIO HIGHLIGHTS Under normal market conditions, the Fund invests at least 80% of its net assets, plus borrowings for investment purposes, in common and Total Net Assets: $4 Million preferred shares of publicly traded domestic and foreign companies of NAV: $15.36 all capitalization ranges in the pet industry. The pet industry includes Turnover: (a) 40% companies that offer services and products for pets and pet owners (“Pet Inception Date: 4/1/19 Parents”). The Fund is non-diversified. Net Expense Ratio: (b) 0.90% (a) For the twelve months ended September 30, 2020. (b) As of March 31, 2020. INVESTMENT SCORECARD

2020 was an exceptional year of growth for the global pet economy, with record adoptions and foster experiences during our unprecedented SYMBOL time spent at home. Along with an expanded pet population came PETZX innovative products and services for ensuring healthier, more productive lives. These include digital and tele-vet offerings, expanded fresh and personalized nutrition concepts, and a developing pipeline of therapeutics for prevention and treatment of common ailments. Given the important role that pets have come to play in our emotional well-being, we expect continued investment in diagnostics, mobile technology, and more convenient veterinary solutions. Our portfolio is balanced between pure-plays on the growing pet economy and broader consumer, retail and technology firms that have recently invested in this fast growing and attractive industry.

COMPARATIVE RESULTS

Average Annual Returns through December 31, 2020 (a)

QTR 1 Year Since Inception

Gabelli Pet Parents’ Fund (PETZX) 16.89% 53.45% 18.74% (b) S&P 500 Index 12.15 18.40 15.86 (b)

In the current prospectus dated January 28, 2021, the gross expense ratio for the Fund was 6.95%.The net expense ratio for the Fund after contractual reimbursements by Gabelli Funds, LLC, (the Adviser) was 0.90%. (a) Returns represent past performance and do not guarantee future results. Total returns reflect changes in share price, reinvestment of distributions, and are net of expenses. Investment returns and the principal value of an investment will fluctuate. When shares are sold, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Returns would have been lower had the Adviser not reimbursed certain expenses of the Fund. The S&P 500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market. Dividends are considered reinvested. You cannot invest directly in an index. (b) Since inception returns are as of June 19, 2018. Performance prior to April 1, 2019 is from the Gabelli Pet Parents’ NextShares.

58 GABELLI PET PARENTS’ FUND

LET’S TALK STOCKS

The following are stock specifics on selected holdings of our Fund. SELECTED HOLDINGS* Favorable earnings prospects do not necessarily translate into higher stock prices, but they do express a positive trend that we believe will • PetIQ Inc. 8.9% develop over time. Individual securities mentioned are not necessarily • Kindred Biosciences Inc. 7.2 representative of the entire portfolio. For the following holdings, • Elanco Animal Health Inc. 7.1 the share prices are listed first in United States dollars (USD) and second in the local currency, where applicable, and are presented as of • Chewy Inc. 6.7 December 31, 2020. • Covetrus Inc. 5.2

Chewy Inc. (6.7% of net assets as of December 31, 2020) (CHWY – $89.89 • Zoetis Inc. 5.1 – NASDAQ) was our biggest contributor to performance in 2020, adding • Trupanion Inc. 4.6 approximately 1200bps. Chewy is a pure-play online retailer of pet food • Pets At Home Group Plc 4.4 and pet related products that has become a significant beneficiary of the recent increase in companion pet ownership and a shift towards • Phibro Animal Health Corp. 4.2 e-commerce. We believe the company’s investments into private label • IDEXX Laboratories Inc. 3.8 product launches and into veterinary services provide ample growth opportunities. *Percent of net assets as of December 31, 2020.

Covetrus Inc. (5.2%) (CVET – $28.74 – NASDAQ), a global animal health technology and supply chain services business, was the 2nd best performer in 2020. The company’s prescription management platform, which includes automated and compliance features designed to improve pet health and also boost veterinary revenues, continues to grow north of 30%, with plans to launch in non-U.S. markets in 2021. Covetrus has a supply chain and prescription management business that enables veterinary practices to build customer loyalty and increase per pet spending. Humanization of our companion animals and leveraging technology to provide better care will allow Covetrus meaningful opportunities to improve margins.

Trupanion Inc. (4.6%) (TRUP – $119.71 – NASDAQ) is the leading pure-play provider of medical insurance for companion pets. The company’s monthly subscription-based service has grown its member base every quarter for the last 10 years, with very high retention rates. Despite this long history of success and demonstrated benefits, less than 1% of cats and dogs in the United States are covered by insurance. It is estimated that every 1% increase in the penetration rate would yield $1 billion of incremental revenues.

PetIQ Inc. (8.9%) (PETQ – $38.45 – NASDAQ) continues to diversify its business towards convenient and affordable veterinary services, despite COVID-19-related interruptions. The company also continues to invest in its own manufacturing capabilities and branded offerings, with margins on its own line approximately 3x higher. PETQ is one of the most attractively valued pet pure plays, in part because of the diversity in its business and several one-time items. We believe the management team is strong and that multiple investments will pay off for shareholders in the next 3 years, leading to a significantly higher stock price.

Kindred Biosciences Inc. (7.2%) (KIN – $4.31 – NYSE) was the biggest detractors to the Fund’s performance in 2020, costing us approximately 400bps from our allocation to this micro cap developer of biologics for treating common ailments like atopic dermatitis. We believe Kindred’s robust pipeline makes it one of the few remaining attractive acquisition targets in the pet economy.

59 PERFORMANCE — VALUE FUNDS

Average Annual Returns through December 31, 2020

Expense Gross Maximum Since Ratio after Class AAA Shares (a) QTR 1 Year 5 Year 10 Year 15 Year Expense Adviser Sales Inception Ratio Reimburse- Charge ments

Gabelli Asset Fund 16.15% 11.23% 11.01% 9.79% 8.71% 11.63% 1.36% 1.36% None

Gabelli Small Cap Growth Fund 23.36 13.70 10.29 9.69 9.07 12.04 1.44 1.44 None

Gabelli Equity Income Fund 13.94 7.08 8.13 8.50 7.31 9.56 1.48 1.48 None

Gabelli Value 25 Fund 18.29 5.85 7.57 7.52 6.71 9.69 1.41 1.41 None

Gabelli Global Rising & Income Dividend Fund 20.32 11.68 6.96 4.78 3.54 4.80 1.71 0.91 None

Gabelli Focused Growth and Income Fund 19.95 8.64 4.12 5.43 5.08 6.78 1.71 1.71 None

Gabelli Dividend Growth Fund 17.00 5.09 8.02 7.99 6.24 5.87 2.18 2.00 None

Gabelli Global Mini Mites Fund 33.95 15.87 – – – 4.94 10.81 0.91 None

Expense Gross Maximum Since Ratio after Class A Shares (a) (b) (c) QTR 1 Year 5 Year 10 Year 15 Year Expense Adviser Sales Inception Ratio Reimburse- Charge ments

Gabelli Asset Fund 9.49% 4.84% 9.70% 9.14% 8.28% 11.43% 1.36% 1.36% 5.75%

Gabelli Small Cap Growth Fund 16.29 7.17 8.99 9.04 8.64 11.82 1.44 1.44 5.75

Gabelli Equity Income Fund 7.36 0.98 6.86 7.86 6.89 9.33 1.48 1.48 5.75

Gabelli Value 25 Fund 11.40 (0.26) 6.30 6.88 6.29 9.48 1.41 1.41 5.75

Gabelli Global Rising & Income Dividend Fund 13.40 5.27 5.70 4.15 3.13 4.58 1.71 0.91 5.75

Gabelli Focused Growth and Income Fund 13.00 2.44 2.90 4.81 4.68 6.44 1.71 1.71 5.75

Gabelli Dividend Growth Fund 10.33 (0.94) 6.76 7.36 5.83 5.59 2.18 2.00 5.75

Gabelli Global Mini Mites Fund 34.12 15.87 – – – 4.93 10.81 0.91 5.75

60 PERFORMANCE

Expense Gross Maximum Since Ratio after Class I Shares (a) (c) QTR 1 Year 5 Year 10 Year 15 Year Expense Adviser Sales Inception Ratio Reimburse- Charge ments

Gabelli Asset Fund 16.24% 11.50% 11.29% 10.06% 8.94% 11.74% 1.11% 1.11% None

Gabelli Small Cap 23.44 13.98 10.57 9.96 9.31 12.17 1.19 1.19 None Growth Fund

Gabelli Equity Income Fund 14.08 7.43 8.41 8.77 7.55 9.68 1.23 1.23 None

Gabelli Value 25 Fund 18.36 6.28 7.99 7.87 7.00 9.83 1.16 1.00 None

Gabelli Global Rising & Income Dividend Fund 20.27 11.67 7.44 5.15 3.83 4.97 1.46 0.91 None

Gabelli Focused Growth and 19.95 8.64 4.12 5.43 5.08 6.78 1.46 1.46 None Income Fund

Gabelli Dividend Growth Fund 17.31 6.17 9.00 8.62 6.73 6.23 1.93 1.00 None

Gabelli Global Mini Mites Fund 33.95 15.87 – – – 5.06 10.56 0.91 None

(a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. The Funds impose a 2.00% redemption fee on shares sold or exchanged within seven days after the date of purchase. Investors should carefully consider the investment objectives, risks, charges, and expenses of a Fund before investing. The prospectuses contains information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. (b) Includes the effect of the maximum 5.75% sales charge at the beginning of the period. (c) The performance of the Class AAA Shares is used to calculate performance for the periods prior to the issuance of Class A Shares and Class I Shares. The performance for the Class A Shares would have been lower due to the additional fees and expenses associated with this class of shares. The performance for the Class I Shares would have been higher due to the lower expenses associated with this class of shares.

61 PERFORMANCE — GROWTH FUNDS

Average Annual Returns through December 31, 2020

Expense Gross Maximum Since Ratio after Class AAA Shares (a) QTR 1 Year 5 Year 10 Year 15 Year Expense Adviser Sales Inception Ratio Reimburse- Charge ments

Gabelli Growth Fund 10.39% 39.12% 20.41% 15.86% 10.94% 11.39% 1.38% 1.38% None

Gabelli Global Growth Fund 10.20 35.43 17.58 12.87 9.77 10.20 1.63 0.90 None

Gabelli International 12.68 18.50 10.62 6.06 5.58 7.00 2.44 1.27 None Growth Fund Gabelli International 13.43 19.16 8.99 6.55 5.91 6.95 3.42 0.91 None Small Cap Fund

Expense Gross Maximum Since Ratio after Class A Shares (a) (b) (c) QTR 1 Year 5 Year 10 Year 15 Year Expense Adviser Sales Inception Ratio Reimburse- Charge ments

Gabelli Growth Fund 4.04% 31.11% 18.99% 15.17% 10.50% 11.21% 1.38% 1.38% 5.75%

Gabelli Global Growth Fund 3.85 27.60 16.19 12.20 9.34 9.96 1.63 0.90 5.75

Gabelli International 5.93 10.39 8.64 5.11 4.98 6.69 2.44 2.44 5.75 Growth Fund Gabelli International 6.95 12.28 7.23 5.68 5.33 6.57 3.42 0.91 5.75 Small Cap Fund

Expense Gross Maximum Since Ratio after Class I Shares (a) (c) QTR 1 Year 5 Year 10 Year 15 Year Expense Adviser Sales Inception Ratio Reimburse- Charge ments

Gabelli Growth Fund 10.46% 39.48% 20.71% 16.15% 11.18% 11.50% 1.13% 1.13% None

Gabelli Global Growth Fund 10.18 35.39 18.05 13.31 10.12 10.40 1.38 0.90 None

Gabelli International 12.78 18.81 11.36 6.68 6.05 7.28 2.19 1.02 None Growth Fund Gabelli International 20.32 11.68 6.96 4.78 3.54 4.80 3.17 0.91 None Small Cap Fund

(a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. The Funds impose a 2.00% redemption fee on shares sold or exchanged within seven days after the date of purchase. Investors should carefully consider the investment objectives, risks, charges, and expenses of a Fund before investing. The prospectuses contains information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. (b) Includes the effect of the maximum 5.75% sales charge at the beginning of the period. (c) The performance of the Class AAA Shares is used to calculate performance for the periods prior to the issuance of Class A Shares and Class I Shares. The performance for the Class A Shares would have been lower due to the additional fees and expenses associated with this class of shares. The performance for the Class I Shares would have been higher due to the lower expenses associated with this class of shares.

62 PERFORMANCE — SPECIALTY FUNDS

Average Annual Returns through December 31, 2020

Expense Gross Maximum Since Ratio after Class AAA Shares (a) QTR 1 Year 5 Year 10 Year 15 Year Expense Adviser Sales Inception Ratio Reimburse- Charge ments Gabelli Utilities Fund 10.21% (3.43)% 7.42% 6.82% 6.76% 7.22% 1.37% 1.37% None Gabelli ABC Fund 2.60 2.90 2.63 2.85 3.63 5.32 0.68 0.68 None Gabelli Gold Fund (6.91) 26.31 20.35 (2.32) 4.45 5.65 1.55 1.55 None Gabelli ESG Fund 17.38 13.46 8.49 6.81 – 6.47 1.92 0.90 None Gabelli Enterprise Mergers & 10.00 4.91 4.53 4.71 4.23 4.43 1.50 1.50 None Acquisitions Fund Gabelli Global Content & Connectivity Fund 16.18 16.42 6.66 5.52 5.23 7.21 1.76 0.92 None Gabelli Global Financial 35.52 (1.49) – – – (0.66) 2.51 1.25 None Services Fund

Expense Gross Maximum Since Ratio after Class A Shares (a) (b) (c) QTR 1 Year 5 Year 10 Year 15 Year Expense Adviser Sales Inception Ratio Reimburse- Charge ments Gabelli Utilities Fund 3.94% (8.91)% 6.16% 6.20% 6.35% 6.94% 1.37% 1.37% 5.75% Gabelli ABC Fund (Advisor Class) 2.49 2.70 2.38 2.60 3.40 5.19 0.93 0.93 None Gabelli Gold Fund (12.27) 19.09 18.95 (2.87) 4.06 5.42 1.55 1.55 5.75 Gabelli ESG Fund 10.57 6.88 7.20 6.17 – 6.01 1.92 0.90 5.75 Gabelli Enterprise Mergers & 3.65 (1.31) 3.10 3.88 3.67 4.01 1.70 1.70 5.75 Acquisitions Fund Gabelli Global Content & Connectivity Fund 9.52 9.74 5.37 4.88 4.81 6.98 1.76 0.92 5.75 Gabelli Global Financial 35.57 (1.25) (0.58) 2.51 1.25 5.75 Services Fund – – –

Expense Gross Maximum Since Ratio after Class I Shares (a) (c) QTR 1 Year 5 Year 10 Year 15 Year Expense Adviser Sales Inception Ratio Reimburse- Charge ments Gabelli Utilities Fund 10.35% (3.11)% 7.70% 7.09% 6.99% 7.38% 1.12% 1.12% None Gabelli Gold Fund (6.85) 26.67 20.66 (2.07) 4.68 5.78 1.30 1.30 None Gabelli ESG Fund 23.36 13.70 10.29 9.69 9.07 12.04 1.67 0.90 None Gabelli Enterprise Mergers & Acquisitions Fund 10.19 5.29 4.82 4.97 4.56 4.79 1.25 1.25 None Gabelli Global Content & Connectivity Fund 16.18 16.42 7.17 5.91 5.54 7.39 1.51 0.92 None Gabelli Global Financial 35.56 (1.26) – – – (0.44) 2.26 1.00 None Services Fund Gabelli Media Mogul Fund 23.20 0.25 – – – 3.88 4.12 0.90 None Gabelli Pet Parents’ Fund 16.89 53.45 – – – 18.74 7.48 0.90 None

(a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, 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. 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. The Funds impose a 2.00% redemption fee on shares sold or exchanged within seven days after the date of purchase. Investors should carefully consider the investment objectives, risks, charges, and expenses of a Fund before investing. The prospectuses contains information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. (b) Includes the effect of the maximum 5.75% sales charge at the beginning of the period, except The Gabelli ABC Fund, which has no sales charge. (c) The performance of the Class AAA Shares is used to calculate performance for the periods prior to the issuance of Class A Shares and Class I Shares. The performance for the Class A Shares would have been lower due to the additional fees and expenses associated with this class of shares. The performance for the Class I Shares would have been higher due to the lower expenses associated with this class of shares.

63 YOUR PORTFOLIO MANAGEMENT TEAM

Mario J. Gabelli, CFA Kevin V. Dreyer Christopher J. Marangi Howard F. Ward, CFA BSE, University of Pennsylvania BA, Williams College BA, Northwestern University MBA, Columbia Business School MBA, Columbia Business School

Robert D. Leininger, CFA Daniel M. Miller Sarah Donnelly Brian C. Sponheimer BA, Amherst College BS, University of Miami BS, Fordham University BA, Harvard University MBA, Wharton School, MBA, Columbia Business School University of Pennsylvania

Jeffrey J. Jonas, CFA Hendi Susanto Ian Lapey Judith A. Raneri BS, Boston College BS, University of Minnesota BA, Williams College BS, Iona College MS, M.I.T. Masters, Northeastern MBA, Wharton School, University, University of Pennsylvania MBA, Stern School of Business

64 Caesar M.P. Bryan Sergey Dluzhevskiy Evan D. Miller Justin Bergner, CFA LL.B, University of Southampton BS, Case Western BA, Northwestern University BA, Yale University Reserve University MBA, University of Chicago MBA, Wharton School, MBA, Wharton School, University of Pennsylvania University of Pennsylvania

Timothy M. Winter, CFA Melody Bryant José Garza Ronald S. Eaker BA, Rollins College BA, State University of BA, Yale University BA, Pennsylvania State MBA, University of Notre Dame New York MBA, Columbia Business School University

Ashish Sinha Christopher C. Desmarais Christopher D. Ward, CFA Chong-Min Kang BS, Institute of BA, Fairfield University BA, Boston College BA, Boston College Management Studies MBA, Columbia Business MB, I.I.F.T. School

65 DIRECTORS / TRUSTEES

Mario J. Gabelli, CFA Vincent D. Enright Regina Pitaro Chairman & Chief Executive Officer, Former Senior Vice President Managing Director, GAMCO Investors, Inc. and Chief Financial Officer, GAMCO Asset Management, Inc. Asset, ABC, Equity Series, ESG, KeySpan Corp. Enterprise Mergers & Acquisitions Global Series, Dividend Growth ABC, Dividend Growth, ESG, Gold, Growth, International Growth Enterprise Mergers & Acquisitions, Werner J. Roeder Innovations Trust Equity Series, Former Medical Director, U.S. Treasury Money Market U.S. Treasury Money Market Lawrence Hospital Utilities, Value 25 ABC, Asset, Dividend Growth, John D. Gabelli Global Series, Gold, Elizabeth C. Bogan, Ph. D Former Senior Vice President, International Growth, Utilities Senior Lecturer, Economics, G.research, LLC Princeton University Asset, Equity Series Salvatore M. Salibello Equity Series Global Series, Growth Senior Partner, U.S. Treasury Money Market Bright Side Consulting Mary E. Hauck Enterprise Mergers & Acquisitions, Former Senior Portfolio Manager, E. Val Cerutti Innovations Trust Gabelli-O’Connor Fixed Income Chief Executive Officer, Mutual Management Co. Cerutti Consultants, Inc. Anthony Torna, Sr. ABC, Dividend Growth, Utilities Global Series, Gold Former Investment Counselor, Maxim Group, LLC William F. Heitman Anthony J. Colavita Growth Former Senior Vice President President, of Finance, Anthony J. Colavita, P.C. Anthonie C. van Ekris Verizon Communications, Inc. Asset, ABC, Dividend Growth, Chairman, ESG Enterprise Mergers & Acquisitions, BALMAC International, Inc. Equity Series, Global Series, Gold, Robert C. Kolodny Asset, Equity Series, ESG, U.S. Treasury Money Market, Physician, Gold, Growth, Utilities, Value 25 Principal of KBS Management LLC International Growth, U.S. Treasury Money Market U.S. Treasury Money Market Anthony S. Colavita President, Michael J. Melarkey Salvatore J. Zizza Anthony S. Colavita, P.C. Of Counsel Chairman, Innovations Trust McDonald Carano Wilson LLP Zizza & Associates Corp. Innovations Trust Asset, Equity Series, James P. Conn Enterprise Mergers & Acquisitions, Former Managing Director & Robert J. Morrissey Gold, Growth, Chief Investment Officer, Partner, International Growth Financial Security Assurance Morrissey, Hawkins & Lynch Holdings Ltd. Equity Series, Growth, Value 25 Daniel E. Zucchi Asset, Growth, President, Kuni Nakamura Enterprise Mergers & Acquisitions Zucchi Inc. President, Gold Advanced Polymer, Inc. Clarence A. Davis ABC, Asset, Dividend Growth, Former Chief Executive Officer, Enterprise Mergers & Acquisitions, Nestor, Inc. Equity Series, Innovations Trust, ESG Utilities, Value 25

66 OFFICERS REGISTERED INVESTMENT

Bruce N. Alpert ADVISOR (RIA) SERVICES/ President SUPPORT

John C. Ball t 855-RIA-TEAM (855-742-8326) Treasurer f 914.921.5060 e [email protected] Peter Goldstein Secretary

Richard J. Walz MAILING ADDRESS Chief Compliance Officer Gabelli Funds One Corporate Center SERVICE PROVIDERS Rye, NY 10580-1422 Custodians: Bank of New York Mellon; State Street Bank & Trust Company TRANSFER AGENT Fund Counsels: Paul Hastings LLP; Skadden, Arps, Slate, Meagher & Flom, LLP Gabelli Funds c/o DST P.O. Box 219204 Kansas City, MO 64121 SHAREHOLDER CONTACT INFORMATION OVERNIGHT MAIL t 1.800.GABELLI (800-422-3554) f 914.921.5118 Gabelli Funds c/o DST 430 W 7th Street, Suite 219204 e [email protected] Kansas City, MO 64105 GABELLI.COM f 816.218.0452 24 Hour Automated Shareholder Service providing closing prices: 800-GABELLI

BROKER DEALER SERVICES SALES SUPPORT t 1.800.422.2274 f 914.921.5092 e [email protected]

G.distributors, LLC. • One Corporate Center, Rye, NY 10580-1422 The Gabelli Mutual Funds are distributed by G.distributors, a registered broker dealer and member of FINRA.

67 KEEPING YOU INFORMED WITH EVERY STEP

GAMCO Investors, Inc. (NYSE: GBL) is widely recognized for its research driven, value-oriented investment process based on the principles first articulated in 1934 by the fathers of modern security analysis, Graham and Dodd, and further augmented by Mario Gabelli with his introduction of the concept of Private Market Value (PMV) with a CatalystTM into security analysis.

At the beginning of February, Gabelli Funds launched the Love Our Planet & People ETF (NYSE: LOPP), an actively managed ETF focused on the “E” in ESG (Environmental Social & Governance) investing. The Fund will invest in renewables, batteries, water infrastructure, the recycling of plastics, and other sustainable practices essential to the planet’s future and people. LOPP is the first actively managed ETF that Gabelli Funds anticipates launching. Others include the Gabelli Growth Innovators ETF, the Gabelli Financial Services ETF, the Gabelli Micro Cap ETF, the Gabelli Small Cap Growth ETF, the Gabelli Small & Mid Cap ETF, the Gabelli Micro Cap ETF, the Gabelli Asset ETF, the Gabelli Equity Income ETF, and the Gabelli Green Energy ETF. Fund teams and launch dates have not been finalized. The actively managed ETF format is an additional vehicle for investors to access the Gabelli research-driven investment process. These funds differ from traditional ETFs. For additional information regarding the unique attributes and risks of the EFT, see the ActiveShares prospectus/registration statement when available. For more information, visit www.gabelli.com/funds/etfs/intro Distributed by G.distributors, a registered broker dealer and member of FINRA.

This is not an offer or solicitation to buy or sell a security. Please read the Prospectus, including the Risk Discussion, carefully to understand the attributes and risks of these ETF before investing.

These ETFs are different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. These ETFs will not. This may create additional risks for your investment. For example:

• You may have to pay more money to trade the ETFs’ shares. These ETFs will provide less information to traders, who tend to charge more for trades when they have less information.

• The price you pay to buy ETF shares on an exchange may not match the value of the ETF’s portfolio. The same is true when you sell shares. These price differences may be greater for these ETFs compared to other ETFs because it provides less information to traders.

• These additional risks may be even greater in bad or uncertain market conditions. The differences between theses ETFs and other ETFs may also have advantages. By keeping certain information about the ETF secret, these ETFs may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF’s performance. If other traders are able to copy or predict the ETF’s investment strategy however, this may hurt the ETF’s performance. For additional information regarding the unique attributes and risks of the ETF, see the ActiveShares prospectus/registration statement.

You should consider the ETF’s investment objectives, risks, charges and expenses carefully before you invest. The ETF’s Prospectus is available from G.distributors, LLC, a registered broker-dealer and FINRA member firm, and contain this and other information about the ETFs, and should be read carefully before investing. To obtain a Prospectus, please call 888-GABELLI or visit https://www.gabelli.com/ funds/etfs/intro

CORPORATE HEADQUARTERS

GAMCO Investors, Inc. One Corporate Center, Rye, New York 10580-1422 800-GABELLI (800-422-3554) • www.gabelli.com • [email protected]