Some contributors to returns for the year were CBS Corp. (4.2% of net assets as of December 31, 2012), The Madison Square Garden Co. (2.4%), and Diageo plc (3.3%). Some of the larger detractors to performance were Newmont Mining Corp. (3.4%), National Fuel Gas Co. (2.3%), and Swedish Match AB (3.9%). We appreciate your confidence and trust. Sincerely yours, February 22, 2013 Bruce N. Alpert President We have separated the portfolio managers’ commentary from the financial statements and investment portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that the content of the portfolio managers’ commentary is unrestricted. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com. 2
Comparative Results Average <strong>Annual</strong> Returns through December 31, 2012 (a) (Unaudited) Since Inception 1 Year 5 Year 10 Year (9/29/89) Class A (GABVX) ................................................ 16.95% 3.36% 8.35% 10.51% With sales charge (b) .............................................. 10.23 2.14 7.71 10.22 S&P 500 Index. .................................................. 16.00 1.66 7.10 8.55 DowJonesIndustrialAverage........................................ 10.14 2.60 7.32 9.73 NasdaqCompositeIndex ........................................... 17.60 3.77 9.43 8.29 Class AAA (GVCAX) .............................................. 16.97 3.37 8.36 10.51 Class B (GVCBX) ................................................ 16.06 2.55 7.53 10.04 With contingent deferred sales charge (c) ................................ 11.06 2.19 7.53 10.04 Class C (GVCCX) ................................................ 16.09 2.57 7.54 10.06 With contingent deferred sales charge (d) ................................ 15.09 2.57 7.54 10.06 Class I (GVCIX). ................................................. 17.17 3.62 8.49 10.57 In the current prospectus dated April 27, 2012, the expense ratios for Class AAA, A, B, C, and I Shares are 1.43%, 1.43%, 2.18%, 2.18%, and 1.18%, respectively. See page 11 for the expense ratios for the year ended December 31, 2012. Class AAA and Class I Shares do not have a sales charge. The maximum sales charge for Class A, B, and C Shares is 5.75%, 5.00%, and 1.00%, respectively. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share prices, 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. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days after the date of purchase. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus contains information about these and other matters and should be read carefully before investing. The Class A Share NAVs are used to calculate performance for the periods prior to the issuance of Class AAA Shares on April 30, 2010, Class B Shares and Class C Shares on March 15, 2000, and the Class I Shares on January 11, 2008. The actual performance of the Class B Shares and Class C Shares would have been lower due to the additional 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 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 Dow Jones Industrial Average and the Nasdaq Composite Index are unmanaged indicators of stock market performance. Dividends are considered reinvested, except for the NASDAQ Composite Index. You cannot invest directly in an index. (b) Performance results include the effect of the maximum 5.75% sales charge at the beginning of the period. (c) Assuming payment of the maximum contingent deferred sales charge (CDSC). The maximum CDSC for Class B Shares is 5% which is gradually reduced to 0% after six years. (d) Assuming payment of the 1% maximum CDSC imposed on redemptions made within one year of purchase. $100,000 $90,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE GABELLI VALUE FUND (CLASS A SHARES) AND S&P 500 INDEX (Unaudited) $80,000 S&P 500 Index $67,277 The <strong>Gabelli</strong> Value Fund (Class A Shares) $96,382 Average <strong>Annual</strong> Total Returns* 1 Year 5 Year 10 Year Since Inception Class A 16.95% 3.36% 8.35% 10.51% 9/29/89 12/31/91 12/31/93 12/31/95 12/31/97 12/31/99 12/31/01 12/31/03 12/31/05 12/31/07 12/31/09 12/31/11 12/31/12 * Past performance is not predictive of future results. The performance tables and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 3
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