Original GBL Prospectus - Gabelli

Fund
Net Assets as of
(Morningstar Overall Advisory 12b-1 Initial September 30, December 31,
Rating)(1) Primary Investment Fund Fees Fees OÅer 1998 1998
Portfolio Manager(s) Objective Characteristics (%) (%) Date ($ in millions)
GABELLI CLOSED-END FUNDS:
The Gabelli Global Long-term capital Closed-end, 1.00 n/a 11/15/94 141.2 163.8
Multimedia Trust Inc. appreciation from Non-DiversiÑed
(rrrrr) equity investments in NYSE
global telecommunica- Symbol: GGT
Mario J. Gabelli tions, media, publishing
and entertainment
holdings.
The Gabelli Equity Long-term growth of Closed-end, 1.00 n/a 08/14/86 1,212.8 1,341.5
Trust Inc.(2) capital by investing in Non-DiversiÑed
(rrr) equity securities. NYSE
Symbol: GAB
Mario J. Gabelli
The Gabelli Convertible High total return from Closed-end, 1.00 n/a 07/03/89 116.8 120.7
Securities Fund, Inc. investing primarily in DiversiÑed
(rrr)
convertible instruments. NYSE
Symbol: GCV
Mario J. Gabelli
(1) Morningstar proprietary ratings reÖect historical risk adjusted performance as of December 31, 1998 and are subject to change every
month. Overall Morningstar ratings are calculated from the fund's three-, Ñve- and ten-year average annual returns, as available, in
excess of 90 day T-bill returns with appropriate fee adjustments and a risk factor that reÖects fund performance below 90 day T-bill
returns. The top 10% of the funds in an investment category receive Ñve stars, the next 22.5% receive four stars, the next 35% receive
three stars, the next 22.5% receive two stars and the last 10% receive one star. The ratings for the Gabelli Westwood funds are for the
retail classes.
(2) The Gabelli Equity Trust has announced its intention to spin-oÅ approximately $60 million to $80 million of its assets in the form of
shares of a new closed-end fund that will invest primarily in the securities of companies involved in the gas, electricity and water
industries (the utility sector).
Shareholders of the no-load open-end Mutual Funds are allowed to exchange shares among the funds as
economic and market conditions and investor needs change at no additional cost. The Company periodically
introduces new mutual funds designed to complement and expand its investment product oÅerings, respond to
competitive developments in the Ñnancial marketplace, and meet the changing needs of clients.
The Company's marketing eÅorts for the Mutual Funds are currently focused on increasing the
distribution and sales of its existing funds, as well as creating new products for sale through its distribution
channels. The Company believes that its marketing eÅorts for the Mutual Funds will continue to generate
additional revenues from investment advisory fees. The Company has traditionally distributed most of its
open-end Mutual Funds by using a variety of direct response marketing techniques, including telemarketing
and advertising, and as a result the Company maintains direct relationships with a majority of its no-load
open-end Mutual Fund customers. Beginning in late 1995, the Company expanded its product distribution by
oÅering additional open-end Mutual Funds through Third-Party Distribution Programs, including NTF
Programs. In 1997 and through the Ñrst nine months of 1998, the Company further expanded these eÅorts to
include substantially all of its open-end Mutual Funds in over 60 Third-Party Distribution Programs.
Although most of the assets under management in the open-end Mutual Funds are still attributable to the
Company's direct response marketing eÅorts, Third-Party Distribution Programs, particularly NTF Programs,
have become an increasingly important source of asset growth for the Company. Of the $5.5 billion of assets
under management in the open-end Mutual Funds as of September 30, 1998, approximately 16% were
generated from NTF Programs. Sales (net of redemptions) of the Company's open-end Mutual Funds
through the NTF Programs were approximately $96 million, $194 million and $476 million for the Ñrst and
second halves of 1997 and the Ñrst half of 1998, respectively. In the Ñrst nine months of 1998, sales (net of
redemptions) of the Mutual Funds were $1.0 billion, of which approximately 50% was generated from direct
marketing and approximately 50% was generated from the NTF Programs. Further, the Company has
commenced development of additional classes of shares for several of its mutual funds for sale through
national brokerage and investment houses and other third-party distribution channels on a commission basis.
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