FORM 10-K/A GAMCO Investors, Inc. - Gabelli

Our liquid balance sheet, coupled with an investment grade credit rating, provides access to financial markets and the flexibility to opportunistically add operating resources to our
firm, repurchase our stock and consider strategic initiatives. As a result of a shelf registration which was filed in June 2005 and which became effective in the third quarter of 2006,
we have the right to issue any combination of senior and subordinate debt securities, convertible debt securities and equity securities (common and/or preferred securities) up to a
total amount of $520 million, including the remaining $120 million available under our initial shelf registration filed in 2001.
Our primary goal is to use our liquid resources to opportunistically and strategically convert our interest income to operating income. While this goal is our priority, if opportunities
are not present with what we consider a margin of safety, we will consider other ways to return capital to our shareholders including stock repurchase and dividends.
Asset Highlights
We reported assets under management as follows (dollars in millions):
% Inc(Dec)
2002 2003 2004 2005 2006 2006/2005 CAGR (a)
Mutual Funds
Open-End $ 6,482 $ 8,088 $ 8,029 $ 7,888 $ 8,389 6.4% 0.1%
Closed-End 1,609 3,530 4,342 5,075 5,806 14.4 26.0
Fixed Income 1,977 1,714 1,499 735 744 1.2 (16.1)
Total Mutual Funds 10,068 13,332 13,870 13,698 14,939 9.1 4.6
Institutional & Separate
Accounts
Equities: direct 7,376 9,106 9,881 9,550 10,282 7.7 3.0
“ sub-advisory 2,614 3,925 3,706 2,832 2,340 (17.4) (2.5)
Fixed Income 613 504 388 84 50 (40.5) (41.3)
Total Institutional &
Separate Accounts 10,603 13,535 13,975 12,466 12,672 1.7 0.7
Investment Partnerships 578 692 814 634 491 (22.6) (3.0)
Total Assets Under
Management $ 21,249 $ 27,559 $ 28,659 $ 26,798 $ 28,102 4.9 2.6
(a) The % CAGR is computed for the five-year period January 1, 2002 through December 31, 2006
Net outflows in 2006 totaled $3.0 billion compared to net outflows of $2.3 billion and $1.7 billion in 2005 and 2004, respectively.
Total net outflows from equities products were approximately $2.9 billion in 2006, and net outflows from fixed income products were $0.1 billion in 2006.
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